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18 September 2024
Court-Authorized Operation Disrupts Worldwide Botnet Used by People’s Republic of China State-Sponsored HackersRead the Press Release
Actors Unsuccessfully Sought to Prevent FBI’s Disruption of Botnet
WASHINGTON – The Department of Justice today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People’s Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, China, and known to the private sector as “Flax Typhoon.”
The botnet malware infected numerous types of consumer devices, including small-office/home-office (SOHO) routers, internet protocol (IP) cameras, digital video recorders (DVRs), and network-attached storage (NAS) devices. The malware connected these thousands of infected devices into a botnet, controlled by Integrity Technology Group, which was used to conduct malicious cyber activity disguised as routine internet traffic from the infected consumer devices. The court-authorized operation took control of the hackers’ computer infrastructure and, among other steps, sent disabling commands through that infrastructure to the malware on the infected devices. During the course of the operation, there was an attempt to interfere with the FBI’s remediation efforts through a distributed denial-of-service (DDoS) attack targeting the operational infrastructure that the FBI was utilizing to effectuate the court’s orders. That attack was ultimately unsuccessful in preventing the FBI’s disruption of the botnet.
“The Justice Department is zeroing in on the Chinese government backed hacking groups that target the devices of innocent Americans and pose a serious threat to our national security,” said Attorney General Merrick B. Garland. “As we did earlier this year, the Justice Department has again destroyed a botnet used by PRC- backed hackers to infiltrate consumer devices here in the United States and around the world. We will continue to aggressively counter the threat that China’s state- sponsored hacking groups pose to the American people.”
“The targeted hacking of hundreds of thousands of innocent victims in the United States and around the world shows the breadth and aggressiveness of PRC state-sponsored hackers,” said Eric G. Olshan, the United States Attorney for the Western District of Pennsylvania. “This court-authorized operation disrupted a sophisticated botnet designed to steal sensitive information and launch disruptive cyber attacks. We will continue to work with our partners inside and outside government, using every tool at our disposal, to defend and maintain global cybersecurity.”
“This dynamic operation demonstrates, once again, the Justice Department’s resolve in countering the threats posed by PRC state-sponsored hackers,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “For the second time this year, we have disrupted a botnet used by PRC proxies to conceal their efforts to hack into networks in the U.S. and around the world to steal information and hold our infrastructure at risk. Our message to these hackers is clear: if you build it, we will bust it.”
“The disruption of this worldwide botnet is part of the FBI’s commitment to using technical operations to help protect victims, expose publicly the scope of these criminal hacking campaigns, and to use the adversary’s tools against them to remove malicious infrastructure from the virtual battlefield,” said FBI Deputy Director Paul Abbate. “The FBI’s unique legal authorities allowed it to lead an international operation with partners that collectively disconnected this botnet from its China-based hackers at Integrity Technology Group.'
According to the court documents, the botnet was developed and controlled by Integrity Technology Group, a publicly traded company headquartered in Beijing, China. The company built an online application allowing its customers to log in and control specified infected victim devices, including with a menu of malicious cyber commands using a tool called “vulnerability-arsenal.” The online application was prominently labelled “KRLab,” one of the main public brands used by Integrity Technology Group.
The FBI assesses that Integrity Technology Group, in addition to developing and controlling the botnet, is responsible for computer intrusion activities attributed to China-based hackers known by the private sector as “Flax Typhoon.” Microsoft Threat Intelligence described Flax Typhoon as nation-state actors based out of China, active since 2021, who have targeted government agencies and education, critical manufacturing, and information technology organizations in Taiwan, and elsewhere. The FBI’s investigation has corroborated Microsoft’s conclusions, finding that Flax Typhoon has successfully attacked multiple U.S. and foreign corporations, universities, government agencies, telecommunications providers, and media organizations.
A cybersecurity advisory describing Integrity Technology Group tactics, techniques and procedures was also published today by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, and partner agencies in Australia, Canada, New Zealand and the United Kingdom. JCSA: People’s Republic of China-Linked Actors Compromise Routers and IoT Devices for Botnet Operations
The government’s malware disabling commands, which interacted with the malware’s native functionality, were extensively tested prior to the operation. As expected, the operation did not affect the legitimate functions of, or collect content information from, the infected devices. The FBI is providing notice to U.S. owners of devices that were affected by this court-authorized operation. The FBI is contacting those victims through their internet service provider, who will provide notice to their customers.
The U.S. Attorney’s Office for the Western District of Pennsylvania, FBI’s San Diego Office and Cyber Division, and the National Security Cyber Section of the Justice Department’s National Security Division led the domestic disruption effort. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. These efforts would not have been successful without the collaboration of partners, including French authorities, and Lumen Technologies’ threat intelligence group, Black Lotus Labs, which first identified and described this botnet, which it named Raptor Train, in July 2023.
If you believe you have a compromised computer or device, please visit the FBI’s Internet Crime Complaint Center (IC3) or report online to CISA. You may also contact your local FBI field office directly.
The FBI continues to investigate Integrity Technology Group’s and Flax Typhoon’s computer intrusion activities.
Court-Authorized Operation Disrupts Worldwide Botnet Used by People’s Republic of China State-Sponsored HackersRead the Press Release
Note: View the affidavit here.
The Justice Department today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People’s Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, and known to the private sector as “Flax Typhoon.”
The botnet malware infected numerous types of consumer devices, including small-office/home-office (SOHO) routers, internet protocol (IP) cameras, digital video recorders (DVRs), and network-attached storage (NAS) devices. The malware connected these thousands of infected devices into a botnet, controlled by Integrity Technology Group, which was used to conduct malicious cyber activity disguised as routine internet traffic from the infected consumer devices. The court-authorized operation took control of the hackers’ computer infrastructure and, among other steps, sent disabling commands through that infrastructure to the malware on the infected devices. During the course of the operation, there was an attempt to interfere with the FBI’s remediation efforts through a distributed denial-of-service (DDoS) attack targeting the operational infrastructure that the FBI was utilizing to effectuate the court’s orders. That attack was ultimately unsuccessful in preventing the FBI’s disruption of the botnet.
“The Justice Department is zeroing in on the Chinese government backed hacking groups that target the devices of innocent Americans and pose a serious threat to our national security,” said Attorney General Merrick B. Garland. “As we did earlier this year, the Justice Department has again destroyed a botnet used by PRC-backed hackers to infiltrate consumer devices here in the United States and around the world. We will continue to aggressively counter the threat that China’s state- sponsored hacking groups pose to the American people.”
“Our takedown of this state-sponsored botnet reflects the Department’s all-tools approach to disrupting cyber criminals. This network, managed by a PRC government contractor, hijacked hundreds of thousands of private routers, cameras, and other consumer devices to create a malicious system for the PRC to exploit,” said Deputy Attorney General Lisa Monaco. “Today should serve as a warning to cybercriminals preying on Americans – if you continue to come for us, we will come for you.”
“This dynamic operation demonstrates, once again, the Justice Department’s resolve in countering the threats posed by PRC state-sponsored hackers,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “For the second time this year, we have disrupted a botnet used by PRC proxies to conceal their efforts to hack into networks in the U.S. and around the world to steal information and hold our infrastructure at risk. Our message to these hackers is clear: if you build it, we will bust it.”
“The disruption of this worldwide botnet is part of the FBI’s commitment to using technical operations to help protect victims, expose publicly the scope of these criminal hacking campaigns, and to use the adversary’s tools against them to remove malicious infrastructure from the virtual battlefield,” said FBI Deputy Director Paul Abbate. “The FBI’s unique legal authorities allowed it to lead an international operation with partners that collectively disconnected this botnet from its China-based hackers at Integrity Technology Group.”
“The targeted hacking of hundreds of thousands of innocent victims in the United States and around the world shows the breadth and aggressiveness of PRC state-sponsored hackers,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This court-authorized operation disrupted a sophisticated botnet designed to steal sensitive information and launch disruptive cyber attacks. We will continue to work with our partners inside and outside government, using every tool at our disposal, to defend and maintain global cybersecurity.”
“The FBI’s investigation revealed that a publicly-traded, China-based company is openly selling its customers the ability to hack into and control thousands of consumer devices worldwide. This operation sends a clear message to the PRC that the United States will not tolerate this shameless criminal conduct,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office.
According to the court documents, the botnet was developed and controlled by Integrity Technology Group, a publicly-traded company headquartered in Beijing. The company built an online application allowing its customers to log in and control specified infected victim devices, including with a menu of malicious cyber commands using a tool called “vulnerability-arsenal.” The online application was prominently labelled “KRLab,” one of the main public brands used by Integrity Technology Group.
The FBI assesses that Integrity Technology Group, in addition to developing and controlling the botnet, is responsible for computer intrusion activities attributed to China-based hackers known by the private sector as “Flax Typhoon.” Microsoft Threat Intelligence described Flax Typhoon as nation-state actors based out of China, active since 2021, who have targeted government agencies and education, critical manufacturing, and information technology organizations in Taiwan, and elsewhere. The FBI’s investigation has corroborated Microsoft’s conclusions, finding that Flax Typhoon has successfully attacked multiple U.S. and foreign corporations, universities, government agencies, telecommunications providers, and media organizations.
A cybersecurity advisory describing Integrity Technology Group tactics, techniques and procedures was also published today by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, and partner agencies in Australia, Canada, New Zealand and the United Kingdom.
The government’s malware disabling commands, which interacted with the malware’s native functionality, were extensively tested prior to the operation. As expected, the operation did not affect the legitimate functions of, or collect content information from, the infected devices. The FBI is providing notice to U.S. owners of devices that were affected by this court-authorized operation. The FBI is contacting those victims through their internet service provider, who will provide notice to their customers.
The FBI’s San Diego Field Office and Cyber Division, the U.S. Attorney’s Office for the Western District of Pennsylvania, and the National Security Cyber Section of the Justice Department’s National Security Division led the domestic disruption effort. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. These efforts would not have been successful without the collaboration of partners, including French authorities, and Lumen Technologies’ threat intelligence group, Black Lotus Labs, which first identified and described this botnet, which it named Raptor Train, in July 2023.
If you believe you have a compromised computer or device, please visit the FBI’s Internet Crime Complaint Center (IC3) or report online to CISA. You may also contact your local FBI field office directly.
The FBI continues to investigate Integrity Technology Group’s and Flax Typhoon’s computer intrusion activities.
Connecticut Man Sentenced to 48 Months in Connection with Theft of Firearms from St. Albans Gun ShopRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on September 16, 2024, Jonathan Mitchell, 33, of Meriden, Connecticut, was sentenced by United States District Judge William K. Sessions III to a term of 48 months’ imprisonment to be followed by a three-year term of supervised release. Mitchell previously pleaded guilty to stealing three firearms and conspiring to straw-purchase a firearm from a federal firearms licensee in St. Albans, Vermont.
According to court records, in July of 2023, Mitchell provided a co-conspirator $300 to purchase a firearm for him from the gun shop in St. Albans. Mitchell could not legally purchase or possess the firearm himself because of prior convictions arising out of an armed kidnapping and home invasion for which he was sentenced to 25 years of imprisonment. The transaction was delayed by the National Instant Criminal Background Check System and, several days later, Mitchell and a second co-conspirator returned to the gun shop and stole three firearms from its inventory. Mitchell was arrested in Connecticut in November of 2023.
United States Attorney Nikolas P. Kerest stated, “Straw purchases and thefts of firearms lead to violence in our communities. It is a top priority of the U.S. Attorney’s Office to keep Vermonters safe from violence, and, as this case exemplifies, we continue to use significant resources to address crimes associated with violence in Vermont.” U.S. Attorney Kerest also commended the investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Franklin County Sheriff’s Office.
“When firearms are stolen from federal firearm licensees, they often end up fueling gun violence in our communities,” said ATF Special Agent in Charge of the Boston Field Division James M. Ferguson “We are grateful for the strong collaboration between our law enforcement partners and federal prosecutors, whose efforts are essential in investigating and prosecuting these critical cases. Together, we are working to keep our communities safer by preventing stolen guns from being used in violent crimes.”
The case was prosecuted by Assistant U.S. Attorney Nate Burris. Mitchell was represented by Assistant Federal Public Defender Sara Puls.
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.
Columbia Man Sentenced to Federal Prison for Unlawfully Possessing AmmunitionRead the Press Release
COLUMBIA, S.C. — Jamel Lamont Lewis, 35, of Columbia, was sentenced to more than seven years in federal prison after pleading guilty to being a felon in possession of ammunition.
Evidence presented to the court showed that in December 2020, Fairfield County Sheriff’s Office deputies responded to a call of gunshots in the Ridgeway area of Fairfield County. Lewis and another man were firing shots as deputies approached. Deputies found 90 rounds of .22 caliber ammunition in Lewis’s pants pocket along with a quantity of crack cocaine. In July 2021, investigators with the Richland County Sheriff’s Department stopped a car that Lewis was riding in. During the stop, Lewis had to be restrained after he reached for a loaded .22 caliber pistol hidden in his waistband. Lewis also had approximately 65 grams of methamphetamine on him. The pistol was equipped with a large-capacity ammunition magazine.
Lewis is prohibited from possessing firearms or ammunition due to previous felony convictions. In 2007 and 2009, Lewis was convicted of aggravated assault for shooting two different victims. In 2011, Lewis was convicted of assault and battery, first degree, after being involved in a drive-by shooting. In 2018, he was convicted of failure to stop for a blue light and unlawful possession of a firearm after leading police on a vehicle chase and ultimately losing control of the vehicle and tossing a firearm while fleeing on foot.
United States District Judge Sherri A. Lydon sentenced Lewis to 85 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fairfield County Sheriff’s Office, and the Richland County Sheriff’s Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Child Predator Sentenced for Aggravated Sexual Abuse of a Minor Child Under 12Read the Press Release
TULSA, Okla. – U.S. District Judge Sara E. Hill sentenced Bryan Stanley Monholland, 59, of Tulsa, for Aggravated Sexual Abuse of a Minor Under 12 Years of Age in Indian Country. Judge Hill ordered Monholland to a term of life imprisonment, followed by lifetime term of supervised release. Upon his release, Monholland will also be required to register as a sex offender.
According to Monhalland’s Petition to Enter Guilty Plea, and subsequent plea of guilty between July 2012 and March 2018, Monholland attempted to and knowingly engaged in a sexual act with a minor child victim who had not attained age 12.
According to court records, Monholland previously pleaded guilty to Lewd Molestation in 2004 and was required to register as a sex offender. He is a citizen of the Cherokee Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI, Catoosa Police Department, and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Valeria Luster, Stephanie Ihler, and Christian Harris prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Central New York Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – David Hughes, aka Danielle Starr, 50, of Syracuse, and formerly of Oneida County, was sentenced today to serve 10 years in federal prison for possession of a sexually explicit video of a 13-year-old boy he received from the child over the internet.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.
In his earlier guilty plea, Hughes, who previously served 210 months in federal prison for a prior conviction for receipt and possession of child pornography, admitted that while on federal supervised release he used his monitored smart phone to communicate with a person he knew to be a 13-year-old boy. Hughes identified himself as, “Danielle Starr.” In communications captured by the monitoring program, Hughes discussed engaging in sexual conduct with the child, and knowingly received a sexually explicit video the child produced for and sent to Hughes. Law enforcement identified the child as a minor from out of state, and notified the child’s parents of the online activity.
In addition to the 10-year sentence, Hughes was sentenced to a concurrent 2-year term of imprisonment for violating the conditions of supervised release from his prior offense. He will be placed on supervision for 20 years when released from prison, and will continue to be required to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation’s (FBI) Albany Division Child Exploitation and Human Trafficking Task Force and the United States Probation Department. Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.
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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Restaurant Owner Convicted of Tax and COVID-19 Fraud SchemesRead the Press Release
A federal jury in San Diego convicted a California man yesterday of wire fraud, conspiracy and tax crimes for schemes to defraud COVID-19 relief programs and to file false tax returns.
According to court documents and evidence presented at trial, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood. He conspired with others to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and COVID-19 relief applications. Suel’s businesses fraudulently received $1,773,245 million in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants, two programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. Suel and his co-conspirator misappropriated COVID-19 relief program funds by making substantial cash withdrawals from their business bank accounts, purchasing a home in Arkansas and keeping more than $2.4 million in cash in his bedroom.
Suel did not file timely tax returns for 2018 and 2019, despite being legally required to do so. In addition, during the period 2020 through 2022, Suel did not file personal returns that reported flow through income from his businesses and personal income he received from his business, including millions of dollars in cash he withdrew. In 2023, Suel filed false original and amended tax returns for several years, including personal returns for 2016 and 2017 that included false depreciable assets and business losses.
In total, Suel caused a tax loss to the IRS of $1,292,976.
Suel was convicted of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns and failing to file tax returns. He was acquitted of the money laundering charges.
Following the convictions, Suel agreed to forfeit $1,466,918 in U.S. currency.
Suel is scheduled to be sentenced on Dec. 13. He faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, a maximum penalty of five years in prison for tax evasion and conspiracy to defraud the United States, a maximum penalty of three years in prison for each count of filing false tax returns and a maximum penalty of one year in prison for each count of failing to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.
California Man Sentenced to 10 Years for Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Franklin W. Jackson, age 29, of San Diego, California, was sentenced today to 120 months in prison for his role in a drug-trafficking organization that distributed methamphetamine in Onondaga County and elsewhere in Central New York.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his prior guilty plea, Jackson admitted that from approximately October 2020 through December 2020, he conspired with others to distribute methamphetamine in Central New York, which had been transported from California. Jackson further admitted that in December 2020, he and others loaded 11 vacuum-sealed packages containing more than 50 grams of pure methamphetamine into a rental car, which a coconspirator planned to drive from California to Syracuse, New York. Jackson admitted that he drove a separate car close behind the rental car, to make sure that the coconspirator did not abscond with the methamphetamine and also to act as a diversion to any law enforcement officers who attempted to stop the rental car carrying the drugs. Before ultimately being stopped by police in the area of Oklahoma City, Jackson did attempt to prevent them from stopping the rental car carrying the drugs.
United States District Judge David N. Hurd also ordered Jackson to serve a 4-year term of supervised release to follow his release from prison.
This case was investigated by DEA, U.S. Internal Revenue Service Criminal Investigation (IRS-CI), New York State Police-Violent Gang and Narcotics Enforcement Team (NYSP-VGNET), Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, Syracuse Police Department, Oklahoma City Police Department, San Bernardino County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
Boynton Beach Man Sentenced to over 5 Years in Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
MIAMI – On Sept. 16, Jacob Elijah Groover, 26, of Fort Pierce, Fla., was sentenced to 70 months in federal prison to be followed by two years’ supervised release by U.S. District Judge Aileen M. Cannon, after previously pleading guilty to possessing a firearm as a convicted felon.
In October of 2022, during the execution of a car stop related to a drug investigation, Martin County Sheriff’s Office deputies found a Glock 19 9mm firearm under the driver’s seat of the car Groover was driving. Groover admitted that the firearm was his, and that he knew he was previously convicted of a felony and was prohibited from possessing a firearm.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida; Anthony Salisbury, Special Agent in Charge of Homeland Security Investigations (HSI), Miami Field Office; and William D. Snyder, Martin County Sheriff, made the announcement.
HSI Fort Pierce and Martin County Sheriff’s Office investigated the case. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) provided assistance. Assistant U.S. Attorney Christopher Hudock prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-14052.
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Boston Man Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to fraud and false statements charges in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP) made available under the Coronavirus Aid, Relief, and Economic Security Act.
Robert Platt Jr., 45, pleaded guilty to one count of wire fraud and one count of making false statements. U.S. District Court Judge Myong J. Joun scheduled sentencing for Dec. 18, 2024. Platt was charged and arrested in February 2024 along with over 40 Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges, and financial frauds, including COVID-related fraud.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
In April 2021, Platt submitted a fraudulent PPP loan application on behalf of his purported business. The application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2019 and the purpose of the loan. Platt also submitted false tax records in support of his loan application. Based on the fraudulent application, Platt received approximately $20,833, which he then spent on non-business-related expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Baltimore BGF Gang Member Sentenced to 38 Years in Federal Prison for Racketeering Conspiracy Charge, Including MurderRead the Press Release
Baltimore, Maryland – On September 17, 2024, U.S. District Judge James K. Bredar sentenced David Warren, a/k/a “Meshawn,” age 32, of Baltimore to 467 months in federal prison, followed by 5years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement and other court documents, beginning in 2015 Warren was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder and a drug distribution conspiracy; further, Warren was a “hit man” accepting money in exchange for murdering others. BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland.
As detailed in his plea agreement, in May 2015, at the direction of a BGF leader, Warren and others fired upon a group of rivals who were attending a candlelight vigil for a deceased rival in east Baltimore. One man was shot during the attack and survived. A year later in May 2016, again at the behest of a BGF leader, Warren and a co-conspirator attempted to murder another rival and received a portion of an $8,000 payment in exchange for the attempt. Two weeks later, on Memorial Day weekend, Warrant attempted to murder a rival drug dealer at a holiday barbeque in north Baltimore. The man and four others were shot and survived but all sustained injuries.
In or about 2018, Warren became a hit man for co-defendant Davante Harrison, a/k/a “YGG Tay.” Between February and August 2018, Warren and others targeted three of Harrison’s rivals. On April 4, 2018, Warren and co-conspirators sought to locate and murder one of Harrison’s rivals at a residence of Chanette Neal and Justice Allen, the sister and mother of the rival. Not finding the rival at the residence, Warren and co-conspirators murdered Neal and Allen using a .357 caliber handgun. Later that day, Warren messaged a female associate and wrote that he was “waiting on the bag” meaning payment for the murder.
Additionally, on August 7, 2018 Warren and two co-conspirators, including co-defendant Wayne Prince, attempted to murder another rival of Harrison at a home that the rival owned and was having renovated. A construction crew was on site at the time. During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers, Bryan McKemy, using a .40 caliber handgun. They also shot a second construction worker in the head, but that person survived the attack. Afterwards, Warren messaged another that he was “waiting on a bag” indicating again that he anticipated being paid for the murder.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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.
This case is also 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 that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
Anchorage man charged with threatening U.S. Supreme Court Justices, their family membersRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment today charging an Anchorage man with threatening to injure and kill six U.S. Supreme Court Justices and some of their family members.
According to court documents, Panos Anastasiou, 76, was arrested today. The indictment alleges that between March 10, 2023, and July 16, 2024, Anastasiou sent over 465 messages to the Supreme Court through a public website the court maintained.
Beginning on Jan. 4, 2024, Anastasiou’s messages allegedly escalated to messages intending to threaten harm toward the victims. The messages contained violent, racist and homophobic rhetoric coupled with threats of assassination by torture, hanging and firearms.
Anastasiou is charged with nine counts of making threats against a federal judge and 13 counts of making threats in interstate commerce. The defendant made his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces up to 10 years in prison for each count of making threats against a federal judge and up to five years in prison for each count of making threats in interstate commerce. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Supreme Court of the United States Police, Protective Intelligence Unit, with significant support from the U.S. Marshals Service and the FBI Anchorage Field Office, is investigating the case.
Assistant U.S. Attorney Will Taylor is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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ATF honors U.S. Attorney Luger during annual awards ceremonyRead the Press Release
WASHINGTON, D.C. - Bureau of Alcohol, Tobacco, Firearms, and Explosives Director Steven Dettelbach, with the assistance of ATF Assistant Director Marvin Richardson, presented U.S. Attorney Andrew Luger, for the District of Minnesota, with the Honorary Award of Appreciation during the 28th Annual Awards Ceremony held at ATF headquarters in Washington, D.C., Sept. 18, 2024.
During the ceremony, U.S. Attorney Luger was recognized for his exceptional level of support to the overall mission of ATF. He was praised for being a steadfast ally to ATF in the fight to combat violent crime and was commended for his innovative strategy of both targeting those who are committing firearm violence and disrupting the supply of firearms to criminals. He was additionally recognized for leading public outreach and education efforts, raising awareness of the causes of firearms violence, and promoting evidence-based prevention strategies.
The Honorary Award of Appreciation recognizes senior officials, the head of or the entire staff of a major department or organization that provided an exceptional level of assistance to an ATF field division or directorate. The Award of Appreciation is one of ten Honorary Awards given, in addition to the Memorial and Meritorious Award categories, all of which make up the award ceremony held annually in the Elizebeth Smith Friedman Auditorium at ATF Headquarters in Washington, D.C.
ATF is the federal law enforcement agency with jurisdiction involving firearms and violent crimes and regulates the firearm industry. For more information about ATF, go to www.atf.gov or follow @ATFHQ on Twitter. Follow @ATFStPaul on Twitter for ATF news in North Dakota, South Dakota, Minnesota, and Wisconsin.
17 September 2024
Woman admits to submitting false disaster relief applications resulting in $620,000 lossRead the Press Release
HOUSTON – A 34-year-old former Houston resident has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
From March 2020 until March 2021, Cora Chantail Custard conspired with others to submit false and fraudulent loan applications for financial assistance both personally and on behalf of others.
The co-conspirators submitted false applications to the Small Business Administration (SBA), Federal Emergency Management Agency (FEMA) and multiple state unemployment insurance agencies.
Over the course of the conspiracy, Custard resided in both Houston and San Antonio.
As part of her plea, Custard admitted to using her Facebook account to advertise her services to file fraudulent disaster relief applications. Custard’s posts repeatedly described the scheme to her social media followers as “doing apps,” with the ability to obtain between $6,000 and $8,000 for an application within four to seven days of filing.
Custard submitted or caused the submission of over 100 fraudulent Economic Injury Disaster Loan applications, at least 36 of which resulted in advance payments totaling $345,000.
Further investigation revealed Custard filed at least 30 fraudulent FEMA Disaster Benefit applications related to Hurricane Laura in August 2020 and Hurricane Sally in September 2020. At least 16 of those fraudulent applications resulted payouts totaling approximately $75,000.
Additionally, Custard committed several other fraudulent acts like filing over 100 false unemployment insurance applications in Michigan, Illinois and several other states for her own and others’ benefits. At least 20 of those fraudulent applications resulted in payments totaling approximately $200,000.
Due to her actions, multiple agencies lost a total of $620,000.
U.S. District Judge David Hittner will impose sentencing in January 2025. At that time, Custard faces up to five years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
The Department of Homeland Security-Office of Inspector General (OIG), IRS-Criminal Investigation, Treasury Inspector General for Tax Administration, Social Security Administration-OIG, SBA-OIG and Department of Labor-OIG conducted the investigation.
Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.
Woman Sentenced to One Year in Prison for Pandemic Loan FraudRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a woman who obtained COVID-19 pandemic loans for a fake company called the “Barbie Factory” to a year and a day in prison.
Juashayla Jane Walls, 31, of Jennings, Missouri, was also ordered to repay $55,833 and will be placed on supervised release for five years after her release from prison.
Walls was originally scheduled to be sentenced in July, but after she claimed she used some of the money for another business, Judge Schelp ordered an accounting of where every dollar of the loan money went. In one example he gave in court Tuesday, he said she spent nearly $8,000 at a casino. Walls also spent loan money on shopping trips and other personal purchases, her plea agreement says
Judge Schelp called the crime “sickening” and “disheartening,” as it came during a worldwide crisis and took money from a program that was intended to help struggling American businesses and jobs during the pandemic.
Walls submitted a fraudulent Paycheck Protection Program (PPP) loan application on Aug. 25, 2020, seeking $20,000 for the “Barbie Factory.” Walls falsely claimed that the company was in operation, had four employees and a monthly payroll of $8,000. She also submitted a fraudulent Internal Revenue Service tax form that said employees had been paid a total of $96,000 in wages, tips and other compensation.
On March 2, 2021, Walls submitted a loan forgiveness application, falsely claiming that she had used the loan for payroll. Her application was approved and the loan was forgiven.
Walls’ second loan application for $20,000 was not approved.
A third application, submitted April 16, 2021, and seeking $20,833, was approved. Walls falsely claimed she was self-employed and had a gross annual income of $151,104. She successfully submitted a fraudulent loan forgiveness application on Aug. 14, 2021.
In September of 2021, Walls submitted fraudulent applications to the Economic Injury Disaster Loan Program, a Small Business Administration program intended to help struggling business owners during the pandemic. Walls again falsely claimed the $15,000 she received would go to Barbie Factory payroll and other businesses expenses.
Walls pleaded guilty in April in U.S. District Court in St. Louis to one felony count of wire fraud.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Westwego Woman Indicted for Unemployment Insurance Fraud and Covid FraudRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that REHA JANEE ARVIE, (“ARVIE”), age 33, of Westwego, LA, was indicted on September 6, 2024 for Conspiracy to Commit Mail Fraud (Count1), in violation of Title 18, United States Code, Section 1349; Mail Fraud (Counts 2 and 3), in violation of Title 18, United States Code, Section 1341; and, Making False Statements (Count 4), in violation of Title 18, United States Code, Section 1001(a)(2).
According to the indictment, beginning in or around July 2020, ARVIE defrauded, and attempted to defraud, various state offices of Unemployment Insurance (“UI”) through the submission of approximately 100 fraudulent UI applications. ARVIE recruited friends and family via Facebook to file these fraudulent UI applications. Additionally, ARVIE filed fraudulent UI applications for herself and others, in various states including Arizona, California, Colorado, Hawaii, Indiana, Missouri, Nevada, Pennsylvania, Utah, Texas, and the territory of Guam. ARVIE charged those for whom she filed fraudulent UI claims fees ranging from $1,200.00 to $1,500.00. Moreover, during the investigation, ARVIE lied to federal agents during an interview.
Later, on April 8, 2021, ARVIE unlawfully obtained a Paycheck Protection Program (“PPP”) loan from the United States Small Business Administration (“SBA”). Specifically, ARVIE falsely claimed on her PPP application that she had income of $102,357.00 for the year 2020 and submitted a fraudulent Schedule C in support thereof. As a result of her false statements, ARVIE received a PPP loan of approximately $20,832.00.
If convicted, ARVIE faces up to twenty (20) years imprisonment, per count, for Counts 1 through 3 and up to five (5) years imprisonment for Count 4. As to each count, ARVIE also faces up to three (3) years of supervised release, a fine up to $250,000.00, or twice the gross gain to the defendant, or twice the gross loss to any victim, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. The Department of Veterans Affairs, Office of the Inspector General, is an active member of the PRAC Fraud Task Force.
“The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.”
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.
The United States Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Labor, Office of Inspector General; the Department of Veteran Affairs, Office of Inspector General; The Pandemic Response Accountability Committee; the United States Department of Homeland Security Office of Inspector General COVID Fraud Unit; and the California Employment Development Department with this matter. The prosecution of this case is being handled by Assistant United States Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Weslaco man sentenced for attempting to import shoebox of crystal methRead the Press Release
McALLEN, Texas – A 23-year-old man has been sentenced for drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.
Jesse James Gonzalez pleaded guilty Sept. 27, 2023.
U.S. District Judge Micaela Alvarez has now ordered Gonzalez to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional information about how Gonzalez’s criminal history was repetitive and warranted a lengthy sentence. In handing down the sentence, the court noted the societal harms of trafficking in narcotics and the destruction in communities that it occurs.
On Nov. 29, 2022, Gonzalez attempted to make entry into the United States through the Donna Port of Entry. Gonzalez was carrying a shoebox containing two packages of white crystal meth.
Authorities discovered the meth during the inspection process and Gonzalez subsequently admitted he had “ice” in the shoebox.
Homeland Security Investigations and Customs and Border Protection conducted the investigation with the assistance of the Drug Enforcement Administration.
Assistant U.S. Attorney (AUSA) Devin V. Walker prosecuted the case. AUSA Ted Parran handled the sentencing hearing.
Virginia Man Admits Conspiring to Launder Money Obtained from Internet-Enabled Romance ScamsRead the Press Release
NEWARK, N.J. – A Virginia man today admitted to conspiring to launder money taken from victims across the United States as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced.
Nana Yaw Marfo, 39, of Alexandria, Virginia, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court today to an information charging him with one count of money laundering conspiracy.
According to documents filed in this case and statements made in court:
Marfo laundered money obtained through internet-enabled romance scams through numerous bank accounts opened in different business names. After receiving the romance scam victims’ money, Marfo wired thousands of dollars to overseas bank accounts. As part of this scheme, Marfo received and transferred approximately $4.7 million, knowing that the transactions were for the purpose of disguising or hiding the proceeds of criminal activity.
The money laundering conspiracy charge has a maximum prison term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 4, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys David E. Malagold and Ingrid Eicher of the Criminal Division in Newark.
marfo.information.pdfUnited States Attorney Breon Peace Announces Whistleblower Non-Prosecution Pilot ProgramRead the Press Release
United States Attorney Breon Peace today announced that the U.S. Attorney’s Office for the Eastern District of New York (the “Office”) has implemented a new Whistleblower Non-Prosecution Pilot Program (the “Whistleblower Pilot Program”). The Whistleblower Pilot Program, which is effective immediately, is designed to encourage individuals to disclose original and actionable information about previously unknown criminal conduct undertaken by or through public or private entities or organizations. It does so by providing transparency regarding the conditions under which an individual’s voluntary self-disclosure of criminal conduct to the Office, coupled with the agreement to fully cooperate in the investigation of others involved, may make the individual eligible for a non-prosecution agreement (“NPA”). The Whistleblower Pilot Program will enable the Office to investigate and hold wrongdoers accountable more quickly, particularly with respect to criminal conduct that might otherwise go undetected or be impossible to prove, and will, in turn, further encourage companies to create and enforce compliance programs that help prevent, detect, and remediate misconduct and to report misconduct when it occurs.
The program applies to circumstances where an individual voluntarily discloses to the Office information regarding criminal conduct undertaken by two or more individuals, or by or through public or private entities or organizations, including corporations, partnerships, non-profits, exchanges, money services businesses, banks, financial institutions, investment advisers, or investment funds, involving: (1) fraud or corporate control failures; (2) intellectual property theft and related violations; (3) market integrity; (4) state or local bribery or fraud relating to federal, state, or local funds; (5) obstruction of justice, perjury, or false statements; (6) healthcare fraud, including violations of the Anti-Kickback statute; and (7) money laundering related to any of the prior-listed crimes. Pursuant to the Whistleblower Pilot Program, the Office will enter into an NPA in exchange for the individual’s cooperation where the following conditions are met:
- The misconduct has not previously been made public and is not already known to the Department of Justice (“DOJ”);
- The individual discloses the criminal conduct voluntarily to EDNY and not in response to a government inquiry or obligation to report misconduct to EDNY or any other component of DOJ, and prior to imminent threat of disclosure or government investigation;
- The individual provides substantial assistance in the investigation and prosecution of one or more equally or more culpable persons, and is prepared to cooperate fully with this Office in its investigation and prosecution of the disclosed conduct, including testifying in any proceeding in the Eastern District of New York or elsewhere as requested by the Office;
- The individual provides complete, truthful, and accurate information, and discloses all criminal conduct in which the individual has participated and of which the individual is aware;
- The individual is not an elected, or appointed and confirmed, federal, state, local or foreign official; a federal law enforcement official; the highest-ranking person within the organization where the misconduct occurred (e.g., the Chief Executive Officer) or the person who, regardless of title, exercises primary control over the operations of such organization; or the head of a public agency or entity;
- The individual’s role in the alleged misconduct did not involve: leading or originating the illegal activity; violence or the threat of violence; any federal or state sex offense involving fraud, force, coercion, or a minor; or any federal or state offense involving terrorism; and
- The individual has not been previously convicted of any felony involving: violence or the threat of violence; any sex offense involving force, fraud, coercion, or a minor; terrorism; or fraud or dishonesty.
If an individual discloses information to the Office regarding the covered crimes but does not meet the requirements set forth above, the Office will nevertheless consider exercising discretion to extend a non-prosecution agreement, taking into account certain factors outlined in the Whistleblower Pilot Program, including, but not limited to, information provided by the individual about individuals or entities located outside the United States of America that could lead to the investigation and prosecution of such individuals or entities; whether the individual has information about criminal conduct by a federal elected or appointed and confirmed official, or by a senior officer and/or member of the board of directors of a publicly traded company; and the adequacy of non-criminal sanctions.
Finally, to receive a non-prosecution agreement under the Whistleblower Pilot Program, the reporting individual will be required to forfeit or disgorge any proceeds from the criminal wrongdoing and pay restitution to victims.
The specific terms of the Whistleblower Pilot Program, along with a form for voluntary self-disclosures and the email address to which such forms should be sent, is available on the Office’s website here.
U.S. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“It has been my observation that many of the persons who are the drivers of violence in the local community at large, use violence in their most personal relationships as well. Increasing our focus on intimate partner firearm violence will invariably make the community safer for all its residents,” said United States Attorney Clifford D. Johnson.
“These important partnerships will strengthen our ability to investigate these cases and increase our coordination efforts among law enforcement and communities in order to assist victims of domestic violence,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “ATF prioritizes investigations of prohibited persons who illegally possess firearms and look forward to the Northern District of Indiana United States Attorney's leadership to prosecute these important cases.”
The Northern District of Indiana will re-direct the Deputy Prosecutor from the Lake County Prosecutor’s office who currently works in the NDIN USAO (as a Special Assistant United States Attorney) to focus on this initiative. This SAUSA will serve as coordinator between the Lake County Prosecutor Office, the Gary Police Department and this Office.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
In the Northern District of Indiana, Gary, Indiana, is the jurisdiction that has been designated for special emphasis under this initiative.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
U.S. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
U.S. Justice Department Designates Lansing in the Western District of Michigan Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence Offenders
Grand Rapids, Mich – U.S. Attorney for the Western District of Michigan Mark Totten today announced that U.S. Department of Justice Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022. Last Friday marked the 30th Anniversary of the VAWA. The City of Lansing was identified as a designated community in the Western District of Michigan.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“Domestic violence harms families, perpetuates social inequities, and leaves victims fearful and feeling like they have nowhere to turn,” said U.S. Attorney Mark Totten. “My office is fully committed to working with our law enforcement and community partners to protect victims and we will continue to identify opportunities to prosecute gun offenders with a record of domestic and intimate-partner violence.”
“Three decades ago, VAWA transformed our national response to domestic violence, sexual assault, dating violence, and stalking,” said Attorney General Garland. “Its enactment sent a message: gender-based and intimate-partner violence is not just a private matter, not just a local matter, but a national crisis — one that our country was no longer willing to tolerate. As we take stock of the progress that VAWA has advanced, the Department of Justice remains committed to using every tool at our disposal to end these forms of violence and support survivors.”
“Everyone deserves to feel safe in their relationships. The use of firearms to commit domestic violence is unacceptable,” said ATF Detroit Special Agent in Charge James Deir. “ATF and our law enforcement partners remain resolute in holding violent offenders who threaten the safety of their family and our community accountable.”
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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Recent domestic violence cases prosecuted by the Western District of Michigan
Lansing Man Sentenced For Illegal Gun Possession
Serial Domestic Abuser Sentenced To 46 Months In Federal Prison For Illegally Possessing A Firearm
U.S. Attorney Mark Totten pledges to use criminal firearm laws to protect victims of domestic violence
Muskegon Man Sentenced To 15 Years In Prison For Stalking His Ex-Wife And Possessing Firearms
U.S. Attorney Mark Totten Vows to Fight Gender-Based Violence
U.S. Attorney's Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
LAS VEGAS – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“The strength of our local partnerships plays a key role in our focused efforts to address and reduce intimate partner firearm violence in Las Vegas, and to support and seek justice for victims and survivors,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “The U.S. Attorney’s Office is committed to leveraging our resources to combat firearm violence against intimate partners. We will continue to work hand in hand with the ATF and Clark County District Attorney’s Office to hold violent intimate partner offenders accountable.”
“ATF is committed to our pledge of ensuring the safety of the public, which includes continuing our efforts to ensure protection from intimate partner firearm violence,” said Special Agent in Charge Jennifer Cicolani, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives. “We will continue to work with our prosecutorial partners and local law enforcement to ensure that this conduct is not tolerated within the Las Vegas community and that the prosecution of domestic offenders, who are prohibited from having a firearm, are a priority.”
The U.S. Attorney’s Office for the District of Nevada works closely with the Clark County District Attorney’s Office to address intimate partner gun violence in the Las Vegas Valley. Where appropriate, possession of firearms by dangerous, repeat domestic violence offenders are adopted for prosecution under federal law. Prosecution of the most dangerous offenders under the federal statute often results in a substantially longer sentence for that offender.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation is an indicator of partnership and coordination between the Department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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U.S. Attorney Jessica D. Aber and HUD Inspector General Rae Oliver Davis host Safe Housing SummitRead the Press Release
RICHMOND, Va. – U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a Safe Housing Summit in Richmond on Sept. 16 focused on combatting sexual misconduct, promoting environmental justice, and protecting the civil rights of residents in HUD-assisted housing.
The summit was attended by representatives from a number of organizations, including the Richmond Redevelopment Housing Authority, Virginia Organizing, Community Climate Collaborative, Legal Aid Justice Center, Richmond Tenants Union, Storefront for Community Design, Virginia Environmental Justice Collaborative, Housing Opportunities Made Equal (HOME) of Virginia, Virginia Poverty Law Center, Discoverself Fellowship, United Communities Against Crime, and the University of Richmond.
“The Department of Justice and the U.S. Attorney’s Office play an important role in fulfilling the promise of HUD-assisted housing,” said U.S. Attorney Aber. “We are very pleased to be joined by community groups and residents, providing an opportunity both to listen to their concerns and to share with them information regarding resources and recourse. Our message today is that the law is on your side and assistance is available to you.”
“Along with the strong commitment from U.S. Attorney Aber, community outreach events like we hosted today in Richmond allow HUD OIG to amplify for HUD tenants and applicants seeking housing that they have a right to housing that is void of sexual misconduct, and safe from lead and environmental hazards,” said Inspector General Oliver Davis. “We remain committed to investigating those who risk the health and safety of HUD-assisted families or who victimize vulnerable people receiving HUD assistance with our partners at the U.S. Attorney’s Office.”
Participants discussed the Justice Department’s environmental justice enforcement strategy. In particular, the U.S. Attorney’s Office prioritizes cases that will reduce harm to public health and the environment for overburdened and underserved communities, and lead paint is a matter of priority for HUD OIG. Participants discussed the Environmental Protection Agency’s mapping of environmental justice indicators like lead paint across the Eastern District of Virginia.
The event also featured a presentation on combatting sexual harassment in housing through civil and criminal enforcement of the Fair Housing Act. Participants discussed how to identify sexual harassment affecting or impairing housing rights, from quid pro quo demands to a hostile housing environment, and covered various options for enforcing those rights, either privately, through administrative remedies within HUD’s Office of Fair Housing and Equal Opportunity, or via criminal charges. Participants learned about the case of Joseph Centanni, a New Jersey Section 8 landlord who agreed to pay $4.5 million in a civil enforcement action relating to numerous accusations of demands for sexual acts from tenants.
The summit also addressed the enforcement of civil rights laws in housing. The discussion centered on criminal enforcement of the Fair Housing Act, which prohibits violence or threats of violence on the basis of race or other protected categories to deny a resident’s enjoyment of a housing right, such as leasing or occupying a dwelling. One recent example from the Eastern District of Virginia is the prosecution of David L. Merryman, a landlord in Hampton and Newport News, for fraud, identity theft, and multiple civil rights offenses. In his guilty plea, Merryman admitted to acts of violence and numerous threats to tenants on account of their race. The presentation from the U.S. Attorney’s Office noted that race-based interference with fair housing is the most frequently charged hate crime statute in the United States.
If you have or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or you have or someone you know has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov. Anyone who believes they may have been a victim of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at (804) 819-5400 or by email at [email protected].
U.s. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
BILLINGS — Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
In the District of Montana, Gallatin County and Bozeman have been designated.
“Domestic gun violence not only leads to tragedy within families, but it also ripples through our communities. Everyone has a right to feel safe in their homes and communities. Reducing intimate partner firearm violence and getting dangerous offenders off the street are top priorities for our office. By continuing our commitment to work with our local, state and federal law enforcement partners, and community stakeholders, we are making sure that persons who are prohibited under federal law from having guns are prosecuted and held accountable,” U.S. Attorney Laslovich said.
“Domestic abuse was once considered a private matter to be suffered alone in the shadows,” said ATF Special Agent in Charge Brent Beavers. “VAWA has steadily shone a light on this issue, resulting in significant decreases in domestic violence over the past few decades. We recognize firearms are often used by abusers to carry out acts of domestic violence. To combat this, we encourage our law enforcement partners to seek all available federal funds so we may continue to disrupt this violence and strengthen our support of all victims.”
"As the County Attorney in Gallatin County, I witness firsthand the devastating impact of domestic violence on families and communities,” said Gallatin County Attorney Audrey Cromwell. “Gallatin County's designation as a VAWA jurisdiction and partnership with the US Attorney's Office marks a crucial advancement in our fight against domestic violence. By collaborating at both local and federal levels, we enhance our capability to tackle the complexities of these cases, especially those involving gun violence. Our joint efforts are not only aimed at reducing domestic violence and preventing homicides but also at providing robust support to survivors, ensuring they have the resources and protection necessary to rebuild and thrive. This initiative underscores our commitment to a safer, more just community."
The U.S. Attorney’s Office for the District of Montana is working with law enforcement to reduce gun violence through coordinated, multi-agency investigations through the federal initiative, Project Safe Neighborhoods, to ensure that persons who violate federal firearms law are charged, convicted and sentenced to federal prison, where there is no parole.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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U.s. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
TYLER, Texas – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. In the Eastern District of Texas, Gregg County has received designation.
“Domestic violence is a significant problem in our nation and presents a special challenge to prosecutors,” said Eastern District of Texas U.S. Attorney Damien M. Diggs. “The causes of domestic violence are numerous and varied and require a concerted national and local effort if there is going to be success at tackling this problem. Addressing domestic and sexual violence must be a linchpin in the attack on violent crime. As such, we are proud to announce that in Gregg County we will prioritize firearms prosecutions of domestic violence offenders to aid our state and local partners, who do the heavy lifting in this important fight.”
“One of ATF-Dallas Field Division’s top priorities has been, and will continue to be, to reduce domestic violence, especially those incidents in which firearms are used,” said ATF Dallas Special Agent in Charge Jeffrey C Boshek II. “All people, no matter their gender, race, creed, or color, deserve to have relationships free from domestic violence– a heinous crime that terrorizes families, shatters homes, and destroys lives. Let it serve as a notice- through our partnerships with the Eastern District of Texas U.S. Attorney’s Office, and state and local law enforcement agencies, ATF will remain steadfast in its pursuit of domestic abusers in possession of firearms illegally.”
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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U.s. Attorney’s Office to Partner with Grand Forks Law Enforcement to Reduce Domestic Violence Under Violence Against Women Act DesignationRead the Press Release
U.S. Department of Justice Designates Grand Forks in the District of North Dakota Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence Offenders
Fargo – Attorney General Merrick B. Garland has approved an initial set of 78 communities, including Grand Forks, North Dakota, for designation as a jurisdiction of focus to address intimate partner gun violence under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with Grand Forks and each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. The plans can include appointment of Special Assistant United States Attorneys (SAUSAs) to prosecute those offenders in federal court.
“Our law enforcement partners in Grand Forks have made reducing domestic violence a priority for decades,” said Mac Schneider, United States Attorney for the District of North Dakota. “This designation by the Department of Justice is a recognition of that strong record and seeks to build on it. By targeting domestic violence offenders who illegally possess firearms for prosecution in federal court, we can save lives and protect families. I am grateful for the partnership of the Grand Forks State’s Attorney’s Office, the Grand Forks County Sheriff’s Office, and the Grand Forks Police Department and look forward to continuing our work with them on this important effort.”
“We look forward to working together with federal authorities to combat intimate partner violence in our county,” said Grand Forks County States Attorney Haley L. Wamstad. “This additional tool in our tool chest will help us to hold accountable the most lethal offenders of intimate partner violence and ensure justice for the victims of these crimes.”
“We are proud to stand alongside our colleagues at the U.S. Attorney’s Office on this focused initiative,” said Special Agent in Charge Travis S. Riddle, of the St. Paul Field Division. “A firearm in the hands of domestic abuser is a very real threat to those trapped in these unfortunate situations. We highly encourage those who may find themselves, or may know of a person, affected by domestic violence where a firearm is involved to reach out to authorities. No one should have to live their life in constant fear, and we’re here to work alongside our law enforcement partners to investigate these cases.”
Communities have been designated by the Department of Justice after coordination with community stakeholders. Nationally, they include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions across the country to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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Two charged with fentanyl traffickingRead the Press Release
LAREDO, TEXAS – Two Texas men are charged with possession with intent to distribute fentanyl and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury has returned a two-count indictment against Hernan Cortez, 40, Houston, and Daniel Elizondo, 37, Laredo. Previously in custody upon the filing of a criminal complaint Aug. 30, they are expected to make an appearance on the indictment before a U.S. magistrate judge in the near future.
According to the charges, Cortez transported approximately a half of a kilogram of fentanyl from Houston to Laredo Aug. 28. He allegedly intended to sell the drugs in Laredo with Elizondo’s assistance.
On Aug. 29, Cortez brought the fentanyl to a stash house where Elizondo was located, according to the complaint. Elizondo allegedly exited the stash house wearing a black satchel bag and walked into an alleyway connected to an adjoining property. Soon thereafter, he no longer had the bag, according to the charges.
The complaint alleges authorities executed a search warrant and found 508 grams of fentanyl hidden in a tire wheel in the alleyway where Elizondo had been.
If convicted, Cortez and Elizondo face up to 20 years in federal prison and a possible $10 million maximum fine.
The Drug Enforcement Administration conducted the investigation with the assistance of Homeland Security Investigations, Webb County Precinct 1 Constables Office, Webb County Sheriff’s Office and the Laredo Police Department.
Assistant U.S. Attorney Andrew P. Hakala-Finch is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Council Bluffs Men Sentenced to Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa – Two Council Bluffs men were sentenced to federal prison for conspiring to distribute methamphetamine:
- Michael Guy Given, 36, was sentenced on August 14, 2024, to a 120‑month prison term; and
- Brian Michael Hogan, 50, was sentenced on September 17, 2024, to a 120‑month prison term.
According to public court documents, between March and April 2023, Given and Hogan conspired to distribute methamphetamine in the Council Bluffs metropolitan area. During a search warrant, law enforcement located methamphetamine, a digital scale, and drug packaging materials.
After completing their terms of imprisonment, Given and Hogan will each be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement (SWINE) Task Force.
Tuscola Contractor Sentenced for Fraud Related to Central Illinois Home Building BusinessRead the Press Release
Urbana, Ill. – A Tuscola, Illinois, man, Aaron Gillison, 40, of the 800 block of Beecher Drive, was sentenced on September 13, 2024, to one day in prison, a term of three years of supervised release, and ordered to pay $76,995 in restitution.
Gillison had previously pleaded guilty to the offense of giving a false oath or account in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(2).
Gillison initially came to the attention of the Federal Bureau of Investigation following a series of complaints from Central Illinois homeowners to various local law enforcement agencies. One impacted homeowner won a civil judgement against Gillison and his company.
At the sentencing hearing in front of U.S. District Court Judge Colin S. Bruce, the government presented evidence that, at a bankruptcy proceeding, Gillion falsely claimed that he had not used business funds for personal expenses, nor had he co-mingled client funds with his own personal accounts. Further evidence showed the FBI investigation uncovered that, in the twelve months leading up to his business declaring bankruptcy, Gillison had transferred approximately $65,000 from a business account into his personal account, wrote nearly $22,000 in checks to himself from the business account, and spent more than $10,000 in business funds on personal purchases, such as fishing gear and outdoor equipment.
During the sentencing, Judge Bruce noted that Gillison had no criminal history prior to this conduct. He also noted that Gillison was employed and would be able to pay the restitution while he maintained employment.
The maximum penalty for giving a false oath or account in a bankruptcy proceeding are not more than five years in the Bureau of Prisons, not more than a three-year term of supervised release, and up to a $250,000 fine.
The investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, with assistance of several local law enforcement agencies. Assistant U.S. Attorney Nathan Bertrand represented the United States in the prosecution.
Turks and Caicos Man Arrested, Accused of Sextortion of Missouri TeenRead the Press Release
ST. LOUIS – A man from the Turks and Caicos has been arrested after being indicted and accused of the sextortion of a Missouri teen.
Alexander Gardiner, 23, of Providenciales, was indicted by a grand jury in U.S. District Court in St. Louis on May 22 on one count of coercion and enticement of a minor.
Gardiner was arrested in the Miami International Airport on August 8. He appeared in court in St. Louis Tuesday and pleaded not guilty to the charges.
“Although many perpetrators who seek to exploit and blackmail minors do so from overseas, we will not let borders keep us from stopping sextortion and seeking justice,” said U.S. Attorney Sayler A. Fleming
“A large number of sextortion investigations have identified the perpetrators as living outside of the United States,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Division. “Investigating sextortion is one of the top priorities in the FBI’s Violent Crimes Against Children program. In addition, the FBI provides support and resources to help victims and their families during their time of need.”
The indictment accuses Gardiner of attempting to coerce a minor into engaging in sexually explicit conduct between Sept. 24, 2018, and June 30, 2023.
An August 14 detention order says Gardiner is accused of making contact with a minor in Missouri via social media and enticing the minor to send him sexually explicit images. Gardiner then demanded money from the minor by threatening to send those images to others, and did post an explicit video on social media, the order says. A motion seeking Gardiner’s detention alleges that images of other teenage victims were discovered in Gardiner’s iCloud account. Gardiner used the screen name noahmonn on Snapchat, algardiner33 and algardiner22 on Google and @jewelsbaits on X, court records show.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The enticement charge is punishable by at least 10 years in prison, with a maximum term of life.
Others who believe they may have been targets of a sextortion attempt should contact local law enforcement or the FBI by calling Call 1-800-CALL-FBI, contacting your local FBI office, or reporting it online at tips.fbi.gov or cybertipline.org.
The National Center for Missing and Exploited Children (NCMEC) has detailed information on resources for sextortion victims, including videos and discussion guides to help explain the problem to children and adults. They also have a step-by-step guide on how to report pictures or videos of children to social media companies and flag pictures so that the companies will seek out and remove the images.
The FBI investigated the case with the assistance of the Royal Turks and Caicos Islands Police Force. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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.
Travel Tourism Company Pays More Than $2 Million to Resolve Civil Claims Regarding Funds Obtained Under the Paycheck Protection ProgramRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Miles Partnership, LLC (Miles), a travel and tourism consulting company headquartered in Sarasota, Florida, has agreed to a civil settlement of $2,281,950 to resolve allegations that Miles improperly obtained and received forgiveness of a loan under the Paycheck Protection Program (PPP).
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. The PPP was administered by the U.S. Small Business Administration (SBA). Under the PPP rules and regulations then in effect, companies that were required to file a registration statement under the Foreign Agents Registration Act (FARA) were not eligible for a PPP loan.
GNGH2, Inc. filed a qui tam complaint in the Middle District of Florida alleging that Miles improperly obtained a second draw PPP loan for $2 million. According to the allegations in the complaint, Miles was required to file a registration statement under FARA due to its work with various foreign tourism boards. The United States investigated GNGH2’s allegations with the cooperation of Miles. The civil settlement will conclude the lawsuit filed by GNGH2 and GNGH2 will receive $207,450 as a share in the recovery.
“The United States Attorney’s Office is committed to investigating and holding responsible those applicants who improperly obtained loans under the PPP program,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to seek civil redress and, where appropriate, criminally prosecute those individuals and entities that obtained PPP loans to which they were not entitled.”
SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, other federal law enforcement agencies, as well as private individuals who uncover borrower misconduct to recover the lending program’s damages as well as penalties.”
The investigation was handled by Assistant U.S. Attorney Christopher J. Emden, with assistance from the Small Business Administration - Office of General Counsel.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Trafficker Who Smuggled Mass Quantities of Fentanyl from Southern California to DC Sentenced to 14 Years in PrisonRead the Press Release
WASHINGTON – Raymond Nava Jr., 20, of Bell Gardens, California., was sentenced today to 168 months in prison for his role in a fentanyl trafficking conspiracy that spanned the country and that was responsible for the distribution of kilograms of fentanyl from Southern California to the DMV. Nava – who sold 12,000 fentanyl-laced counterfeit oxycodone pills and one dozen firearms, including an AR-style rifle to undercover officers – was one of 24 co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.
The sentence was announced by U.S. Attorney Matthew M. Graves, DEA Special Agent in Charge Jarod Forget of the DEA Washington Division, Inspector in Charge Damon Wood of the U.S. Postal Inspection Service Washington Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Nava pleaded guilty on May 9, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. In addition to the 14-year prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered Nava to serve five years of supervised release.
According to court documents, Nava’s role in the conspiracy was to serve as an upstream Los Angeles-based supplier of fentanyl-laced counterfeit oxycodone pills to other Los Angeles-based fentanyl traffickers, including co-defendant Hector David Valdez. Valdez allegedly was a bulk supplier of fentanyl-laced counterfeit oxycodone pills to D.C.-based fentanyl traffickers.
In coordinating his sales of fentanyl-laced counterfeit pills, Nava worked with various co-defendants to obtain bulk quantities of pills for redistribution, including fake pills from Mexico-based sources. Nava also conspired with New York-based fentanyl traffickers, meeting with them in Los Angeles and supplying them with the fentanyl-laced fake oxycodone, which the New York-based traffickers then smuggled back to New York using interstate commercial shipping and mail carriers.
Additionally, Nava regularly trafficked firearms in conjunction with his drug trafficking. He conducted multiple controlled purchases of narcotics and firearms with undercover federal law enforcement agents.
In total, Nava sold 12,000 fentanyl-laced counterfeit oxycodone pills and one dozen firearms, including an AR-style rifle, as part of controlled sales that were facilitated by federal undercover officers over the life of conspiracy.
The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death resulting case,[1] law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
This investigation is part of an Organized Crime Drug Enforcement Task Force (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.
DEFENDANT
AGE
LOCATION
CHARGES/SENTENCE
Hector David Valdez,
aka “Curl”
26
Santa Fe Springs, California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Craig Eastman
20
Washington, D.C.
Pleaded guilty July 25, 2024, to conspiracy to distribute more than 400 grams of fentanyl.
Charles Jeffrey Taylor
20
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl;
Possession with intent to distribute fentanyl.
Raymond Nava, Jr.
20
Bell Gardens,
California
Sentenced 9/17/2024 to 14 Years for conspiracy to distribute 400 grams or more of fentanyl.
Ulises Aldaz
28
Bell Gardens,
California
Sentenced June 28, 2024, to 95 months in prison, four years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl.
Max Alexander Carias Torres
26
Bell Gardens,
California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering
Teron Deandre McNeil, aka “Wild Boy”
34
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl.
Marvin Anthony Bussie,
aka “Money Marr”
21
Washington, D.C.
Sentenced June 28, 2024, to 120 months in prison, five years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl.
Marcus Orlando Brown
28
Washington, D.C.
Pleaded guilty March 11, 2024, to conspiracy to distribute 40 grams or more of fentanyl.
Columbian Thomas, aka
"Cruddy Murda”
26
Washington, D.C.
Pleaded guilty June 4, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Wayne Rodell Carr-Maiden
29
Washington, D.C.
Sentenced April 29, 2024, to 45 months in prison, five years of supervised release, after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl.
Andre Malik Edmond,
aka “Draco”
23
Temple Hills, Maryland
Sentenced July 22, 2024, to 130 months incarceration, 5 years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl.
Treyveon James Johnson,
aka “Treyski”
20
Alexandria, Virginia
Sentenced Sept. 5, 2024, to 108 months in prison after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl.
Karon Olufemi Blalock,
aka “Fat Bags”
30
Alexandria, Virginia
Conspiracy to distribute 400 grams or more of fentanyl
Ronte Ricardo Greene,
aka “Cardiddy”
28
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl;
Possession with intent to distribute fentanyl.
Melvin Edward Allen, Jr., aka “21”
38
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl.
Darius Quincy Hodges,
aka “Brick”
34
Glen Allen, Virginia
Conspiracy to distribute 400 grams or more of fentanyl.
Lamin Sesay,
aka “Rock Star”
27
Alexandria, Virginia
Conspiracy to distribute 400 grams or more of fentanyl.
Paul Alejandro Felix
25
Glendale,
California
Pleaded guilty July 1, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Omar Arana,
aka “Frogs”
27
Cudahy,
California
Conspiracy to distribute 400 grams or more of fentanyl
Edgar Balderas, Jr., aka “Nano”
26
San Diego,
California
Conspiracy to distribute 400 grams or more of fentanyl.
Raul Pacheco Ramirez
30
Long Beach,
California
Pleaded guilty July 19, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Giovani Alejandro Briones
30
Victorville, California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Alfredo Rodriguez Gonzalez
26
Rosarito, Mexico
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
The prosecutions followed a joint investigation by the DEA Washington Division and the USPIS Washington Division in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, the District of Maryland and U.S. Marshals.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie, of the Violence Reduction and Trafficking Offenses (VRTO) Section.
23cr73
[1] https://www.justice.gov/usao-dc/pr/brother-and-sister-sentenced-drug-conspiracy-involving-fentanyl-sales
Three-Time Convicted Felon Sentenced for Possessing Firearms and AmmunitionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Dominick Yvon Louissaint (20, Lake Mary) to 46 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Louissaint to forfeit the firearm and ammunition involved in the offense. Louissaint pled guilty on June 18, 2024.
According to court documents, Louissaint was encountered by the Sanford Police Department on January 24, 2024, at the scene of a suspected burglary. Louissaint ignored orders to show his hands, instead attempting to flee. After he was apprehended, the officers discovered that Louissaint was carrying a loaded, concealed firearm, a box of ammunition, and two ski masks. Louissaint has previously been convicted of felony robbery and firearms offenses. As a convicted felon, Louissaint is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, with valuable assistance from the Sanford Police Department and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Richard Varadan.
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.
Southern tier man and woman charged to produce child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that David A. Johnston, 55, of Allegany, NY, and Kayla R. Kio, 26, of Olean, NY, were arrested and charged by criminal complaint with conspiracy to produce child pornography, which carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on March 2, 2024, the New York State were called to Wal-Mart in Olean, for a report of a domestic dispute. Kio reported that she was being stalked and harassed by her ex-boyfriend, Johnston. The two worked together at Wal-Mart. Kio stated that in February 2024, while she was in the process of breaking up with Johnston, he requested that she produce and send to him sexually explicit videos of a 5-year-old child. Troopers seized Kio’s cell phone and recovered multiple videos and images of child pornography.
On March 13, 2024, the NYSP executed a search warrant at Johnston’s Allegany residence, during which they seized four cell phones and a tablet. Investigators recovered videos of child pornography and sexually explicit communications exchanged between Kio and Johnston. Johnston was charged with Possessing a Sexual Performance of a Child and Endangering the Welfare of a Child, while Kio was charged with Promoting a Sexual Performance by a Child and Endangering the Welfare of a Child. In 2007, Johnston was convicted of Indecent Assault and Corruption of Minors in McKean, PA, County Court.
Johnston and Kio made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Kio was released on conditions. Johnston is being held pending a detention hearing on September 17, 2024, at 2:30 p.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Stanley Edwards, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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South Dakota Surgical Hospital and United Surgical Partners International Agree to Pay More Than $12.7 Million to Resolve Alleged False Claims Act ViolationsRead the Press Release
Siouxland Surgery Center LLP, doing business as Dunes Surgical Hospital (Dunes), United Surgical Partners International Inc. (USPI) and USP Siouxland Inc. have agreed to pay approximately $12.76 million to resolve alleged False Claims Act violations relating to improper financial relationships between Dunes and two physician groups. Dunes is a surgical hospital located in Dakota Dunes, South Dakota. Since July 1, 2014, USPI has maintained partial ownership of Dunes through USP Siouxland, a wholly owned subsidiary of USPI. Dunes and USPI disclosed the arrangements at issue to the government following an internal compliance review and independent investigation.
The settlement resolves allegations that, from at least 2014 through 2019, Dunes made significant financial contributions to a non-profit affiliate of a physician group whose physicians referred patients to Dunes. Those payments allegedly funded the salaries of athletic trainers who generated referrals to both the physician group and to Dunes. The settlement also resolves allegations, that during the same time period, Dunes provided another physician group with free or below-fair-market-value clinic space, staff, and supplies. The United States alleged that these arrangements violated both the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law, commonly known as the Stark Law. The AKS prohibits the provision of remuneration to induce the referral of services or items that are paid for by a federal health care program. The Stark Law prohibits hospitals from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. A claim submitted in violation of the AKS or the Stark Law can also violate the False Claims Act.
“The AKS and Stark Law are designed to ensure that decisions about patient care are based on physicians’ independent medical judgment and not their personal financial interest,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As this settlement reflects, we will hold accountable those who violate these important safeguards, but we will also give to those who disclose their wrongdoing, take appropriate remedial actions and meaningfully cooperate with the government’s investigation.”
In connection with the settlement, the United States acknowledged that Dunes and USPI took a number of significant steps entitling them to credit for cooperating with the government. Following an internal compliance review and independent investigation, Dunes and USPI promptly took remedial actions and disclosed the relevant arrangements to the government. Dunes and USPI also provided the government with a detailed and thorough written disclosure and cooperated with the government throughout its investigation.
“Illegal kickbacks and self-referrals make healthcare more expensive and create the potential for medical decisions that are not based on what is best for patients,” said U.S. Attorney Timothy T. Duax for the Northern District of Iowa. “Our office welcomes the cooperation of those who self-disclose and will continue to work with our law enforcement partners to ensure that taxpayers do not bear the costs of illegal and unethical practices.”
“The U.S. Attorney’s Office is dedicated to fostering a healthcare environment that prioritizes patient well-being above all,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “We stand firmly against any actions that could undermine the trust and transparency that form the cornerstone of patient care and remain committed to working closely with healthcare professionals and regulatory bodies to promote ethical practices to ensure patients receive the highest standard of care.”
“Individuals and entities that participate in the federal health care system are required to obey laws designed to preserve the integrity of program funds and ensure the provision of appropriate, quality services to patients,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Together with our federal and state law enforcement partners, we remain committed to investigating allegations of improper arrangements that can put patient safety at risk.”
The settlement resolves allegations of false billings to the Medicare, TRICARE and Medicaid programs. The Medicaid program is jointly funded by the federal and state governments. In addition to the approximately $12.76 million to be paid to the federal government for alleged violations of the False Claims Act, South Dakota, Iowa and Nebraska will collectively receive approximately $1.37 million for their share of the Medicaid portion of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Northern District of Iowa; U.S. Attorney’s Office for the District of South Dakota; and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Nathan Green, Assistant U.S. Attorney Brandon Gray for the Northern District of Iowa and Assistant U.S. Attorney Alexis Warner for the District of South Dakota handled the matter.
The claims resolved by the United States in the settlement are allegations only. There has been no determination of liability.
Six Men Charged in Cockfighting OperationRead the Press Release
Six men were arrested and had their initial court appearances yesterday after being charged in a five-count indictment with violating the Animal Welfare Act in connection with a cockfighting operation. A federal grand jury sitting in Providence, Rhode Island, returned the indictment last week.
The indictment alleges that on March 6, 2022, Miguel Delgado, 73, hosted a series of individual cockfights, known as “derbies,” at his Providence home. Delgado is also charged with sponsoring and exhibiting roosters in an animal fighting venture on multiple dates, buying and transporting sharp instruments or “gaffs” for use in the cockfights and unlawfully possessing roosters for use in an animal fighting venture.
Onill Vasquez Lozada, 39, and Antonio Ledee Rivera, both of Rhode Island, were charged with unlawfully possessing roosters in April 2021 for use in an animal fighting venture and for sponsoring and exhibiting roosters at the March 2022 derby at Delgado’s home. Rivera was additionally charged in connection with an earlier derby at Delgado’s home.
Germidez Kingsley Jamie, 31; Jose Rivera, 67; and Luis Castillo, 35, all residents of Massachusetts, were charged with sponsoring and exhibiting roosters at an animal fighting venture at the March 2022 derby. Jamie and Jose Rivera are also charged with one count of buying and transporting gaffs for use in an animal fighting venture.
Cockfighting is a contest in which a person attaches a knife, gaff or other sharp instrument to the leg of a “gamecock” or rooster and then places the bird a few inches away from a similarly armed rooster. This results in a fight during which the roosters flap their wings and jump while stabbing each other with the weapons that are fastened to their legs. A cockfight ends when one rooster is dead or refuses to continue to fight. Commonly, one or both roosters die after a fight.
If convicted of Animal Welfare Act violations, the defendants each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.
The Department of Agriculture’s Office of Inspector General (USDA-OIG), Postal Inspection Service, Food and Drug Administration’s Office of Criminal Investigation and Rhode Island Society for the Prevention of Cruelty to Animals investigated the case. Valuable assistance was provided by the U.S. Marshals Service, U.S. Fish and Wildlife Service’s Office of Law Enforcement, U.S. Customs and Border Protection, Rhode Island State Police, Massachusetts State Police, Animal Rescue League of Boston’s Law Enforcement Division and Providence, Woonsocket, and Attleboro Police Departments.
To report animal fighting crimes, contact your local law enforcement or the USDA-OIG’s complaint hotline.
Senior Trial Attorneys Gary Donner and Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island 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.
Six Men Charged in Cockfighting OperationRead the Press Release
PROVIDENCE, RI — Six men were arrested and had their initial court appearances yesterday in federal court in Providence after being charged in a five-count indictment with violating the Animal Welfare Act in connection with a cockfighting operation. A federal grand jury sitting in Providence returned the indictment last week.
The indictment alleges that on March 6, 2022, Miguel Delgado, 73, hosted a series of individual cockfights, known as “derbies,” at his Providence home. Delgado is also charged with sponsoring and exhibiting roosters in an animal fighting venture on multiple dates, buying and transporting sharp instruments or “gaffs” for use in the cockfights and unlawfully possessing roosters for use in an animal fighting venture.
Onill Vasquez Lozada, 39, and Antonio Ledee Rivera, both of Rhode Island, were charged with unlawfully possessing roosters in April 2021 for use in an animal fighting venture and for sponsoring and exhibiting roosters at the March 2022 derby at Delgado’s home. Rivera was additionally charged in connection with an earlier derby at Delgado’s home.
Germidez Kingsley Jamie, 31; Jose Rivera, 67; and Luis Castillo, 35, all residents of Massachusetts, were charged with sponsoring and exhibiting roosters at an animal fighting venture at the March 2022 derby. Jamie and Jose Rivera are also charged with one count of buying and transporting gaffs for use in an animal fighting venture.
Cockfighting is a contest in which a person attaches a knife, gaff or other sharp instrument to the leg of a “gamecock” or rooster and then places the bird a few inches away from a similarly armed rooster. This results in a fight during which the roosters flap their wings and jump while stabbing each other with the weapons that are fastened to their legs. A cockfight ends when one rooster is dead or refuses to continue to fight. Commonly, one or both roosters die after a fight.
If convicted of Animal Welfare Act violations, the defendants each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.
The Department of Agriculture’s Office of Inspector General (USDA-OIG), Postal Inspection Service, Food and Drug Administration’s Office of Criminal Investigation and Rhode Island Society for the Prevention of Cruelty to Animals investigated the case. Valuable assistance was provided by the U.S. Marshals Service, U.S. Fish and Wildlife Service’s Office of Law Enforcement, U.S. Customs and Border Protection, Rhode Island State Police, Massachusetts State Police, Animal Rescue League of Boston’s Law Enforcement Division and Providence, Woonsocket, and Attleboro, MA, Police Departments.
To report animal fighting crimes, contact your local law enforcement or the USDA-OIG’s complaint hotline.
Senior Trial Attorneys Gary Donner and Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island 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.
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Seattle man indicted for armed carjacking near Lumen FieldRead the Press Release
Seattle – A 32-year-old Seattle resident will appear today in U.S. District Court in Seattle indicted for carjacking and using a firearm during a crime of violence, announced U.S. Attorney Tessa M. Gorman. Louis Montel De’Andre Dowers was transferred from the King County Jail this morning. Dowers was arrested June 9, 2024, hours after he allegedly carjacked a BMW outside the Seattle Team Shop on Occidental Avenue South in the Pioneer Square neighborhood.
“The Carjacking Task Force, made up of federal agents, Seattle and Kent police officers, and state and federal prosecutors, are diligently reviewing carjacking incidents for those appropriate for federal prosecution,” said U.S. Attorney Gorman. “Here, where a firearm was pointed at the driver, and the car commandeered and stolen, the federal penalties are significant and appropriate for the conduct that put lives at risk.”
According to information filed in state and federal court, a man was waiting in the driver’s seat of his car outside a business on Occidental Avenue South. Dowers allegedly approached the car, pulled out a distinctive firearm and pointed it at the victim, and ordered him out of the car. The wife of the man who was carjacked came out of the store and was nearly hit by the car as it raced away.
The car was later found abandoned near a middle school in Auburn, Washington. Working with a description of the alleged carjacker, a King County Sheriff’s deputy located Dowers walking nearby. When searched, Dowers possessed a semi-automatic firearm.
Carjacking is punishable by up to 15 years in prison. Using a firearm during a crime of violence, such as carjacking, is punishable by a mandatory minimum of seven years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Todd Greenberg who leads the Western District of Washington Carjacking Task Force.
Sean Combs Charged in Manhattan Federal Court with Sex Trafficking and Other Federal OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and William S. Walker, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that SEAN COMBS, a/k/a “Puff Daddy,” a/k/a “P. Diddy,” a/k/a “PD,” a/k/a “Love,” was arrested last night and charged in a three count Indictment with racketeering conspiracy, sex trafficking, and transportation to engage in prostitution. The Indictment unsealed today alleges that between 2008 and the present, COMBS abused, threatened, and coerced women and others, and led a racketeering conspiracy that engaged in sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice, among other crimes. COMBS is expected to be presented in Manhattan federal court this afternoon before Magistrate Judge Robyn F. Tarnofsky.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, for years, Sean Combs used the business empire he controlled to sexually abuse and exploit women, as well as to commit other acts of violence and obstruction of justice. Today, he is charged with racketeering and sex trafficking offenses. If you have been a victim of Combs’ alleged abuse – or if you know anything about his alleged crimes – we urge you to come forward. This investigation is far from over.”
HSI Acting Special Agent in Charge William S. Walker said: “Today, we shatter any false notion of impunity as we uncover the defendant's alleged pattern of manipulation, exploitation, and outright abuse. Make no mistake: we are here today only because of the unwavering strength of victims and witnesses who have already endured unspeakable hardships. I commend them for their courage and urge anyone who believes they are a victim of sex trafficking to contact HSI by email at [email protected], or via our mobile tip-line: 1-877-4-HSITIP.”
According to the Indictment unsealed today:[1]
From at least 2008 through the present, COMBS led a criminal enterprise that existed to facilitate his abuse and exploitation of women, to protect his reputation, and to conceal his conduct. As part of that criminal enterprise, COMBS, along with other members and associates of the enterprise, committed crimes including sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice.
Among other things, COMBS’ sexual abuse of women included causing them to engage in frequent, days-long sexual activity with male commercial sex workers, some of whom were transported over state lines. These events, which COMBS referred to as “Freak Offs,” were elaborate sex performances that COMBS arranged, directed, and often electronically recorded. To ensure participation in Freak Offs, COMBS used violence and intimidation, and leveraged his power over victims—power he obtained through obtaining and distributing narcotics to them, exploiting his financial support to them and threatening to cut off the same, and controlling their careers. COMBS also threatened his victims, including by threatening to expose the embarrassing and sensitive recordings he made of Freak Offs if the women did not comply with his demands.
COMBS’ efforts to control women included repeated physical abuse. COMBS assaulted women by, among other things, striking, punching, dragging, throwing objects at, and kicking them. COMBS similarly assaulted witnesses to his abuse. These assaults often resulted in injuries to the victims, which took days or weeks to heal.
To commit these crimes, COMBS relied on his power as the leader of a multi-faceted business empire. Employees of COMBS' businesses—including high ranking supervisors, security staff, personal assistants, and household staff—acted as COMBS’ intermediaries to, among other things, arrange travel and hotel rooms; stock the hotel rooms for COMBS’ commercial sex activity; contact or locate women and other individuals whom he targeted for abuse; and conceal and cover up the abuse. This criminal concealment included efforts to prevent law enforcement from learning about his abuse.
If you believe you are victim of a crime perpetrated by Sean Combs, please contact HSI at [email protected] or via their mobile tip-line at 1-877-4-HSITIP, and reference this case.
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COMBS, 54, of Miami, Florida, is charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; and one count of transportation for purposes of prostitution, which carries a maximum sentence of 10 years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HSI and the Southern District of New York Special Agents, Digital Forensic Unit, and the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area.
This case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Meredith Foster, Emily A. Johnson, Christy Slavik, Madison Reddick Smyser and Mitzi Steiner.
The charges contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Rosebud Woman Sentenced for AssaultRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Eric C. Schulte has sentenced a Rosebud, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on September 17, 2024.
Talena Pretty Bird, age 22, was sentenced to one year and one day in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Pretty Bird was indicted by a federal grand jury in July of 2023. She pleaded guilty on March 5, 2024.
In the morning of November 24, 2022, Pretty Bird, her sister, her mother, and two juveniles responded to a call from Pretty Bird’s brother. Pretty Bird’s brother mistakenly reported that a female had assaulted him and vandalized his vehicle. When Pretty Bird arrived at her brother’s location in Spring Creek, an argument began between Pretty Bird’s group and the victim. The argument escalated to Pretty Bird and others assaulting the victim. Pretty Bird’s sister assaulted the victim with a bat, and Pretty Bird also punched and struck the victim. As a result of the assault, the victim suffered a broken left arm that required surgery and a scalp laceration that required staples. The offense occurred within the Rosebud Sioux Indian Reservation.
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 Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Pretty Bird was immediately remanded to the custody of the U.S. Marshals Service.
Roanoke Man Sentenced to 10 Years for Role in Gun Store HeistRead the Press Release
ROANOKE, Va. – A Roanoke, Virginia man, illegally in possession of stolen firearms he purchased with drugs, was sentenced last week to 10 years in federal prison.
Justin Lyn Cumbee, 40, pled guilty in June to one count of possession of stolen firearms.
According to court documents, Cumbee came into possession of three stolen firearms associated with a gun heist carried out days earlier at a Fairlawn, Virginia pawn shop.
Several men, including defendants Ronald Perry, Malcolm Stanton, Michael Hall, and Austin Hixon, have all been charged for their roles in the burglary.
On November 1, 2022, Perry broke into the 1st Pawn, and stole approximately 15 firearms. Following the burglary, Perry, Stanton and Hall divided up the stolen firearms, which were all semiautomatic handguns. Some of the firearms found their way to Hixon, who traded three guns to Cumbee in exchange for drugs.
Perry, Stanton, Hall, and Hixon have all been charged and face trial dates in the coming months.
United States Attorney Christopher R. Kavanagh, and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case with assistance from the Pulaski County Commonwealth’s Attorney’s Office, the Pulaski County Sheriff’s Office, the Radford Police Department, the Christiansburg Police Department, the Virginia State Police Search and Recovery Team, and the Virginia Department of Wildlife Resources.
Assistant U.S. Attorneys Kelly McGann and Lee Brett are prosecuting the case.
Rapid City Man Found Guilty of Five Charges of Assault on a Federal OfficerRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Jeremy Crow, age 31, of Rapid City, South Dakota, of five counts of Assault on a Federal Officer following a two-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on September 11, 2024.
Each charge carries a maximum penalty of eight years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Crow was indicted by a federal grand jury in February of 2024.
On December 22, 2023, a 911 call was placed by an unknown caller in a residential area of Pine Ridge. Oglala Sioux Tribe Department of Public Safety was dispatched to the area. A lone tribal officer arrived on scene and observed Crow and an unknown female with apparent facial injuries. The officer made contact with Crow, who was observed to have uncontrollable movements and believed to be under the influence of a controlled substance. The officer attempted to detain Crow, who immediately resisted and assaulted the officer by pushing him backwards. Crow then jumped into the police vehicle and was going to drive off until the officer jumped in and pushed the ignition switch to off. Crow was forcibly removed from the vehicle and actively resisted law enforcement’s efforts to detain him. After numerous commands, Crow was eventually tased, but the tasing did not entirely subdue Crow. A bystander noticed the officer was struggling to detain Crow, and called for backup for the officer. Additional officers arrived on scene and during the process of handcuffing Crow, the original officer was bit on his right bicep. After securing Crow into the backseat of the patrol car, he then spat on a female officer. Crow was eventually taken to jail. Two days later, on December 24, 2023, a corrections officer attempted to provide food and a drink to Crow when he rushed through the cell door forcing his way out. Crow resisted the corrections officers and bit two of them on their hands.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date has been set for December 2, 2024. The defendant was remanded to the custody of the U.S. Marshals Service.
Previously convicted child sexual offender pleads guilty to transportation of child sexual abuse materialRead the Press Release
NEWPORT NEWS, Va. – A Newport News man with multiple previous convictions for child sexual offenses pled guilty today to transportation of child sexual abuse material (CSAM).
According to court documents, on April 11, 12, and 27, 2023, the National Center for Missing and Exploited Children (NCMEC) received Cybertipline reports of files containing CSAM uploaded to a Google account. The files were uploaded by Justus Clay Pease, 51, a registered sex offender who was convicted in Hampton Circuit Court in 2005 of two counts of indecent liberties with a child by a custodian and in 2007 of one count of indecent liberties with children.
In addition to the CSAM identified in the reports to NCMEC that was uploaded to Pease’s Google account, Pease’s Google Photos account included more files containing CSAM.
Pease is scheduled to be sentenced on Jan. 16, 2025, and faces a mandatory minimum of 15 years and up to 40 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney Devon Heath is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-28.
President of Hair Testing Company Sentenced to 41 Months in Prison for Defrauding over 88,000 Customers in Allergy Testing ScamRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KYLE TSUI was sentenced today to 41 months in prison by U.S. District Judge Kenneth M. Karas for conducting a fraud scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to tens of thousands of customers. TSUI previously pled guilty to wire fraud and mail fraud before U.S. Magistrate Judge Judith C. McCarthy, following his extradition from Spain in November 2023. As part of his guilty plea, TSUI was ordered to forfeit the fraudulent proceeds he received from the scheme—more than $4.1 million—which TSUI paid in full in advance of sentencing and which may now be used to compensate victims of the scheme.
U.S. Attorney Damian Williams said: “Kyle Tsui defrauded tens of thousands of innocent victims, whose health was put at risk with false allergy and sensitivity testing results. Tsui’s company advertised ‘highly-rated’ allergy and sensitivity testing services but didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage. Today’s sentence—and the recovery of all the money Tsui stole from victims of the scheme—sends a message that brazen schemes like Tsui’s do not pay.”
According to the allegations contained in the Indictment, court filings, and statements made in court, including during TSUI’s plea proceeding and sentencing:
From September 2018 through April 2019, TSUI orchestrated a scheme to defraud customers of his company, the “Allergy Testing Company,” by purporting to sell food and environmental sensitivity testing services that TSUI knew were not, in fact, being performed. In total, TSUI sold fabricated tests worth approximately $5.9 million to more than 88,000 victims through an online marketplace.
TSUI’s company promoted its “[h]ighly-rated, top selling sensitivity and intolerance test” that “determines how your body responds to 800 different food and environmental items” with just “a small hair sample.” But rather than actually test the hair samples as customers were promised, TSUI directed that the hair samples be discarded in the trash without any laboratory analysis. Customers then received fabricated test results purporting to identify certain foods and environmental factors that were “safe” for them and others that the customers were supposedly “sensitive” to and should avoid.
If you believe you are a victim of the Allergy Testing Company fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.
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In addition to the prison term, TSUI, 41, of Ontario, Canada, was sentenced to one year of supervised release and ordered to forfeit $4,165,884.70.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service. Mr. Williams also thanked the Hyde Park Police Department, the New York State Troopers, the Toronto Police Service, the Department of Justice’s Office of International Affairs, the Canadian Anti-Fraud Centre, and the Government of Spain for their assistance in the investigation.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Qais Ghafary and Benjamin Levander are in charge of the prosecution, which was previously handled by former Assistant U.S. Attorney Daniel Loss.
Portland Man Sentenced to 15 Years for Distributing Fake Pills Tainted with Fentanyl, Failing to Appear for TrialRead the Press Release
PORTLAND, Maine: A Portland man was sentenced today in U.S. District Court in Portland for distributing fentanyl, using or carrying a dangerous weapon in a drug crime, and failing to appear before the court.
U.S. District Judge John A. Woodcock, Jr. sentenced Marcus Mello, 27, to 181 months in prison to be followed by four years of supervised release. The Court ordered forfeiture of his $25,000 appearance bond, and a default judgment in that amount was entered against him. Mello pleaded guilty on February 6, 2024.
According to court records, in May 2020, Mello sold 12 “percs,” a common term for Percocet or Oxycodone pills, to a 59-year-old York County woman. The woman was found unconscious in a parked vehicle shortly after and could not be revived. An autopsy identified her cause of death as toxicity due to the combined effects of multiple substances, including fentanyl. Text messages recovered from the victim’s phone revealed she had purchased pills from Mello, and a medical examiner recovered a baggie marked with images of skulls that contained ten blue pills from her clothing. A chemical analysis revealed that the pills contained fentanyl, not oxycodone.
A witness who was with the victim when she purchased the pills and overdosed texted Mello to inform him of the woman’s death and demanded to know what was in the pills. Despite knowing that someone had died after taking the “percs” that he sold them, Mello continued to sell the pills to other customers, including to a confidential informant. When Mello was arrested in July 2020, investigators recovered over $6,300; a loaded handgun with 14 full-metal-jacket bullets in the magazine; approximately 10 round white tablets; and approximately 417 blue pills marked “M 30” divided into plastic baggies from his backpack. Laboratory testing of the blue pills revealed that they contained fentanyl and collectively weighed approximately 45.6 grams. The white pills tested positive for Oxycodone and weighed approximately 3.8 grams. A review of Mello’s phone revealed conversations with his supplier, including dates, quantities and distribution details.
While out on bail, Mello appeared in court for jury selection on October 6, 2023, but failed to appear for the start of the trial on October 16. When reached by phone, he stated he could not make it to court that day but had decided to plead guilty. When Mello again did not appear the following day, a warrant was issued for his arrest. U.S. Drug Enforcement Administration (DEA) agents located and arrested Mello at a residence in South Portland on November 3, 2023. Agents recovered a bag of white powder from a bathroom where Mello had briefly fled, another bag of powder in his shirt pocket, and a third bag in a shoebox in a guest bedroom.
The DEA investigated the case.
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Pittsburgh Resident Indicted for Possession with Intent to Distribute FentanylRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal narcotics law, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Drew Gordon, 22, as the sole defendant.
According to the Indictment, on or about August 30, 2024, Gordon possessed with the intent to distribute a quantity of fentanyl.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Pittsburgh Bureau of Police, Allegheny County Police Department, and Allegheny County Sheriff’s Department conducted the investigation leading to the Indictment.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian National Involved in Distraction Theft and Identity Theft Scheme Sentenced to 2 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ANGEL EUGENIO BANCES CHAPONAN, 60, a citizen of Peru last residing in Queens, New York, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment for his participation in a distraction theft and identity theft scheme.
According to court documents and statements made in court, the FBI and local law enforcement agencies in Connecticut and elsewhere have been investigating a series of distraction thefts of wallets from victims, typically elderly women, at Trader Joe’s grocery stores, TJ Maxx stores, and other retail stores in Connecticut and elsewhere since March 2022. The investigation revealed that Bances Chaponan and others rented vehicles to travel throughout the U.S. in order to steal wallets from unwary victims, and then use the victims’ credit and debit cards to purchase electronic devices and other items. Bances Chaponan and his co-conspirators would stop at shipping providers along their route to ship the goods they purchased to a co-conspirator’s address in New Jersey.
Court documents detail Bances Chaponan’s role in the theft from 10 victims in Connecticut, Rhode Island, North Carolina, and Tennessee, and the purchase of more than $46,000 in goods using the victims’ credit or debit cards.
Bances Chaponan was arrested on March 13, 2024, shortly after he used a stolen credit card to purchase a MacBook for approximately $2,850 and an iPad Pro for approximately $1,050. On June 20, 2024, he pleaded guilty to aggravated identity theft.
Bances Chaponan, who has been detained since his arrest, faces immigration proceedings when he completes his prison term.
This investigation is being conducted by the Federal Bureau of Investigation and the Manchester (Conn.) Police Department, with the assistance of the Fairfax County (Va.) Police Department, the Spartanburg County (S.C.) Sheriff’s Office, the Spartanburg Police Department, the Warwick (R.I.) Police Department, and the Metropolitan Nashville (Tenn.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathan J. Guevremont.
Orlando Man Sentenced to More Than 10 Years in Federal Prison for Receiving and Possessing Child Sex Abuse ImagesRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Lucio Daza Marquez (73, Orlando) to 10 years and 1 month in federal prison for possession and receipt of child sex abuse material. Marquez entered a guilty plea on June 18, 2024.
According to court documents, an undercover FBI agent discovered an Internet Protocol (IP) address that was sharing files containing child sex abuse material. The IP address was traced to Marquez. During the execution of a search warrant at Marquez’s residence, FBI agents located multiple files depicting the sexual abuse of children on Marquez’s laptop and external hard drives. During an interview with the FBI agents, Marquez admitted to downloading child sex abuse material. Marquez further told the agents that he had been viewing child sex abuse material for nearly 10 years, and that he preferred young girls approximately 12 years old. He also admitted to viewing videos involving much younger children being sexually abused, including infants.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Noah P. Dorman.
This 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.
Ontario man charged with conspiracy to import methRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mohamed Patel, 39, of Ontario, CA, was arrested and charged by criminal complaint with conspiracy to import morphine, and conspiracy to possess with intent to distribute morphine. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney P. Richard Antoine, who is handling the case, stated that according to the complaint, since January 2021, Patel, working together with others, has moved bulk quantities of morphine into the Western District of New York, then subsequently shipped the controlled substances to Canada. It is believed he uses a network of truck drivers to facilitate the shipments, including Bashir Kasozi. Patel is believed to be supplied by multiple sources of supply from outside the United States, by way of India. The investigation revealed that Patel has received bulk quantities of morphine, primarily through the John F. Kennedy Airport in New York City, which are then shipped to the Western District of New York. On August 23, 2024, 62 packages were delivered and transferred to defendant Kasozi. A few hours later, Kasozi was arrested by Customs and Border Protection Officers after the 62 packages were discovered at the Lewiston Port of Entry.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Oahu Man Sentenced to 181 Months for Possession of Methamphetamine and FirearmRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Henry K. Lii, 58, of Oahu, was sentenced yesterday by Senior United States District Judge Helen Gillmor to 181 months in federal prison and a lifetime of supervised release for possessing methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime.
According to court records, in October 2023, while living in Honolulu, Hawaii, and on federal supervised release in connection with a 2007 federal drug conviction, Lii was found in possession of nearly three pounds of methamphetamine, as well as cocaine, marijuana, and a 9mm “ghost gun” used to protect his drugs and any drug proceeds. In February 2024, Lii pled guilty to both offenses, admitting that he intended to distribute the drugs and knowingly possessed the firearm in furtherance of his drug trafficking.
Judge Gillmor also sentenced Lii to an additional 36 months for committing the foregoing offenses while on supervised release on his 2007 conviction, to run consecutively to his 181-month sentence. The case was investigated by the Federal Bureau of Investigation and the
Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Barbara Eucker.