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11 September 2024
U.S. Attorney’s Office Highlights Success of Drug Distribution Prosecution Efforts in Northern IdahoRead the Press Release
Three Defendants Sentenced to Over 17 Years in Federal Prison Combined
COEUR D’ALENE – U.S. Attorney Josh Hurwit announced the results of three separate drug distribution cases in Northern Idaho today.
“The case results announced today reflect stellar work by our prosecutors and staff,” said U.S. Attorney Hurwit. “Together with our law enforcement partners, our office is rising to meet the challenge that drug trafficking poses to communities in North Idaho. The partnerships that drive these cases will continue to make our state a terrible place for drug dealers to do business.”
- Interstate Methamphetamine Trafficker Sentenced to 92 Months in Federal Prison
In one case, Alex Luis Ahumada, 39, of Boardman, Oregon, was sentenced to 92 months in federal prison for conspiracy to distribute methamphetamine. According to court records, Ahumada was a source of pounds of methamphetamine for multiple drug dealers in Idaho.
Chief District Judge David C. Nye also ordered Ahumada to serve five years of supervised release following his prison sentence. Ahumada pleaded guilty to the federal charge in June 2024.
U.S. Attorney Hurwit thanked the Lewiston Police Department, the Idaho State Police, the Oregon State Police, and the Federal Bureau of Investigation for their collaboration in this investigation. Assistant U.S. Attorney Adam Johnson prosecuted this case.
- Montana Man Convicted of Trafficking Fentanyl and Methamphetamine Sentenced to More Than 7 Years in Federal Prison
In a separate case, Kristopher Andrew Anderson, 46, of Alberton, Montana, was sentenced to 86 months in federal prison for possession with intent to distribute methamphetamine and fentanyl.
According to court records, Anderson was involved in trafficking methamphetamine and fentanyl between Washington and Montana, through Idaho. The Defendant was stopped by officers in Shoshone, Idaho, while driving under the influence of fentanyl. While investigating Anderson for driving under the influence, officers located 415 grams of methamphetamine and approximately 5,000 fentanyl pills in his vehicle. Officer also located a firearm. Anderson is a felon and was prohibited from possessing firearms.
Chief District Judge David C. Nye also ordered Anderson to serve five years of supervised release following his prison sentence.
U.S. Attorney Hurwit commended the work of Shoshone County Sheriff’s Office, the Idaho State Police, and the Drug Enforcement Administration, which led to the charges. Assistant U.S. Attorney Bryce Ellsworth prosecuted this case.
- Lewiston Man Sentenced to 30 Months for Possession with Intent to Distribute Methamphetamine
In another case, Gary Francis Glasser, 61, of Lewiston, was sentenced to 30 months in federal prison for possession with intent to distribute methamphetamine.
According to court records, Glasser met another individual who provided him with a satchel containing over 400 grams of methamphetamine in Lewiston. Glasser was subsequently arrested, and a search of his home uncovered indicia of intent to distribute, including a digital scale, several glassine baggies, and multiple ledgers.
Chief District Judge David C. Nye also ordered Glasser to serve three years of supervised release following his prison sentence. Glasser pleaded guilty to the charge on May 20, 2024.
U.S. Attorney Hurwit commended the work of the Lewiston Police Department, the Idaho State Police, and the Federal Bureau of Investigation for their investigation. Assistant U.S. Attorney Adam Johnson prosecuted this case.
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U.S. Army Recruiter Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A sergeant first class in the U.S. Army and U.S. Army recruiter has been charged for engaging in a fraudulent scheme to defraud a credit union by using her position to obtain the personally identifying information of U.S. Army recruits and recruit candidates and submit fraudulent bank account applications to the credit union on the recruits’ behalf, U.S. Attorney Philip R. Sellinger announced today.
Jane Crosby, 33, of Jersey City, New Jersey, is charged by complaint with one count of bank fraud and seven counts of aggravated identity theft. Crosby appeared today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From Sept. 12, 2023, to Dec. 27, 2023, Crosby submitted “Pre-Active Duty Membership” bank account applications to a credit union on behalf of seven U.S. Army recruits or purported recruits, without their knowledge or consent. Such accounts are intended to facilitate the direct deposit of soon-to-be service members’ salaries once they join the military. These applications included the victims’ names and Social Security numbers as well as copies of their passports, driver’s licenses, and/or Social Security cards. Once these credit union accounts were opened, Crosby, posing as the victims, applied for approximately $266,000 in loans and credit card accounts and used some of the accounts to deposit fraudulent checks and then withdraw funds.
The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division under the direction of Special Agent in Charge Joel Kirch, with the investigation.
The government is represented by Assistant U.S. Attorney Lauren Kober of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
crosby.complaint.pdfTwo men sentenced to nine years in prison for stealing 50 firearms from Virginia storeRead the Press Release
ALEXANDRIA, Va. – A Maryland man and a Washington man were sentenced for the burglary of a federal firearms licensee (FFL) from which they stole 50 firearms.
According to court documents, on April 29, 2023, Victor Jones, 22, of Washington, Cedric Minger, 22, of Brandywine, Maryland, and two other co-conspirators drove a stolen Acura ILX from Washington to an FFL in Springfield, Virginia, with the intention of breaking in and stealing firearms. After his initial attempts to gain entry, including shooting a round at the door with a firearm, were unsuccessful, Minger was able to wriggle his way through an opening at the top of the doorframe. Once inside, Minger quickly grabbed firearms from around the store and passed them through the door to Jones and the others, who then loaded them into the stolen Acura ILX.
Jones, Minger, and their co-conspirators then transported the stolen firearms to Washington and later offered them for sale. One of the stolen firearms was recovered from a student at an elementary school.
Jones and Minger pled guilty on June 20 to conspiracy to steal firearms from an FFL and stealing firearms from an FFL. On Sept. 4, Jones was sentenced to nine years in prison. Minger was sentenced today to nine years and six months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Steve T. Descano, Commonwealth’s Attorney for Fairfax County; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorneys Meredith J. Edwards and Cristina Stam prosecuted the case.
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. 1:24-cr-39.
Two Men Charged with Trafficking Firearms from U.S. to DominicaRead the Press Release
A federal grand jury in New Haven has returned a nine-count indictment charging NEILCON ST. LOUIS, 39, of Waterbury, Connecticut, and DAVIDSON ALEXANDER, also known as “Harley, ” 29, a citizen of Dominica residing in Suffolk, Virginia, with offenses stemming from the illegal trafficking and export of firearms and firearm components from the U.S. to Dominica. The indictment was returned on September 5 and unsealed yesterday after St. Louis and Alexander were arrested.
U.S. Attorney Vanessa Roberts Avery; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Acting Special Agent in Charge Aaron Tambrini of the U.S. Department of Commerce’s Office of Export Enforcement, Boston; Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI), New England; Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service, Boston Division; Special Agent in Charge James Ferguson, ATF Boston Field Division; and Special Agent in Charge Harry T. Chavis, Jr., of IRS Criminal Investigation in New England, made the announcement.
The indictment alleges that from at least January 2021 through September 2024, St. Louis, Alexander, and others, including a resident of Dominica, conspired to engage in the business of dealing firearms without a license, and to export firearms, firearm components, and ammunition from the U.S. to Dominica without authorization from the U.S. Department of Commerce, in violation of the Export Control Reform Act. St. Louis, Alexander, and the Dominica resident purchased numerous firearm components from sellers on eBay, which were then mailed to their relatives and acquaintances in the U.S. St. Louis and Alexander obtained the purchased firearm components and then smuggled them, by mailing, or by directing the mailing of, parcels containing them, as well as firearms and ammunition, directly to co-conspirators in Dominica, or to a Miami-based freight forwarding company that then shipped the parcels to co-conspirators in Dominica.
The indictment charges St. Louis and Alexander with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years, and one count of conspiracy to violate the Export Control Reform Act, an offense that carries a maximum term of imprisonment of 20 years. The indictment also charges St. Louis with five counts and Alexander with four counts of violating the Export Control Reform Act, an offense that carries a maximum term of imprisonment of 20 years on each count, and St. Louis with two counts and Alexander with one count of smuggling goods from the U.S., and offense that carries a maximum term of imprisonment of 10 years on each count.
Following their arrests, St. Louis and Alexander appeared in New Haven and Norfolk, Virginia, respectively, and were released pending trial.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Department of Commerce, Bureau of Industry and Security; Homeland Security Investigations (HSI); the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Internal Revenue Service – Criminal Investigation Division. HSI Caribbean, the Dominica Customs Excise Division, and the Commonwealth of Dominica Police Force have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Sean P. Mahard, and Trial Attorney Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs is providing assistance.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Accused of $80,000 in Pandemic Loan FraudRead the Press Release
ST. LOUIS – One current and one former employee of the Department of Veterans Affairs have been indicted and accused of fraudulently obtaining pandemic loans.
Kahroun Armstrong, also known as Kahroun Leflore, 48, of Black Jack, Missouri, was indicted September 4 on two counts bank fraud, two counts of wire fraud and one count of making a false statement. Dortatius L. Hill, 41, of St. Louis, was indicted separately on the same day on the same charges.
Armstong and Hill appeared in U.S. District Court in St. Louis Wednesday and pleaded not guilty to the charges. Armstrong is no longer employed by the VA.
Hill's indictment accuses him of applying for two Paycheck Protection Program loans for a company called “Dortatius Hill,” once on April 2, 2021, and again on April 9, 2021. Hill falsely claimed the company had gross income of $120,000. He received one $20,833 loan on April 16, 2021, and another on May 5, 2021. Hill later fraudulently sought loan forgiveness.
The PPP loans were supposed to be used to save jobs during the COVID-19 pandemic.
The indictment accuses Armstrong of fraudulently seeking a PPP loan on behalf of Arm & Arm In Home Health Care Services LLC on March 29, 2021, and another on behalf of Arm & Arm Motors LLC the same day. Armstrong falsely claimed the health care company was founded in 2018 and had $145,655 in gross income and Arm & Arm Motors had gross income of $155,000, the indictment says. He falsely claimed that both loans would be used for payroll costs, rent, utilities and other expenses, it says. He received a loan for each business of $20,832, and later successfully sought forgiveness of the loans.
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.
Bank fraud is punishable by up to 30 years in prison, a $1 million fine, or both prison and a fine. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Making a false statement is punishable by up to five years in prison and a $250,000 fine.
The Department of Veterans Affairs Office of Inspector General investigated the case. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Three Individuals Indicted for Role in Violent Bennington Drug ConspiracyRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced today that on August 8, 2024, a federal grand jury returned an indictment charging William McLaughlin, 45, from Bennington, VT, Samantha Danforth, 35, from Bennington, VT, and Keahnard Rowell, also known as “Stacks”, 34, from New York, NY, with conspiring to distribute cocaine base and fentanyl in 2022. The indictment also charges McLaughlin with being a felon in possession of a firearm.
Rowell was arraigned on the charges on September 9, 2024, and entered a plea of not guilty before United States Magistrate Judge Kevin J. Doyle. Judge Doyle ordered that Rowell continue to be detained during the pendency of this matter.
McLaughlin’s and Danforth’s arraignment dates are yet to be set.
According to court records, Rowell was a top lieutenant in a violent drug organization run by McLaughlin in Bennington from approximately February to July 2022. Danforth managed much of the day-to-day operations alongside McLaughlin. The broader organization included Bennington residents who would allow their homes to be used for drug storage and/or distribution, and others who executed drug sales on behalf of McLaughlin. Rowell was also present for multiple violent events perpetrated by McLaughlin, including a severe beating of a woman McLaughlin believed had drawn attention to a drug-storage location, and a stabbing of a man McLaughlin believed owed him drug money.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Rowell, McLaughlin, and Danforth are presumed innocent until and unless proven guilty. Rowell, McLaughlin, and Danforth all face up to 20 years in prison if convicted on these charges. The actual sentences, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, the Bennington Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The prosecutors are Assistant United States Attorneys Corinne Smith and Paul Van de Graaf. Rowell is represented by Jason Sawyer, Esq. Counsel for McLaughlin and Danforth have not been identified yet.
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.
Texas Man Sentenced to 10 Years in Prison for over $16 Million Consumer Electronics Fraud ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that OLUSEUN MARTINS OMOLE, a/k/a “Seun Omole,” was sentenced today to 10 years in prison by U.S. District Judge Jesse M. Furman for participating in a large-scale fraud conspiracy involving more than $16 million in consumer electronics and other goods that were fraudulently obtained from thousands of victims in the U.S. and elsewhere. OMOLE previously pled guilty to one count of conspiracy to commit wire fraud before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “For approximately five years, Oluseun Martins Omole used his satellite communications business as a front to receive more than 23,000 laptops, tablets, smartphones, smartwatches, and other consumer goods. These items—worth more than $16 million—were bought and sent by thousands of victims nationwide who were defrauded by Omole and his associates. Omole’s fraud devastated victims: some had to take out loans, others fell into debt or declared bankruptcy, and some even attempted suicide. Today’s sentence sends the message that a lengthy prison sentence will await those who participate in these destructive fraud schemes.”
According to the allegations contained in the Indictment and Complaint, the plea agreement, and other public filings and statements made in court:
From at least in or about February 2018 through at least in or about March 2023, OMOLE participated in a criminal enterprise (the “Enterprise”) that scammed thousands of victims in the U.S. and elsewhere of more than $16 million in consumer electronics, including smartphones, smartwatches, laptops, and tablets, among other items. The scams included romance scams, in which Enterprise members sent electronic communications to victims pretending to be interested in a romantic relationship, gained the victim’s trust and affection, and took advantage of that goodwill to induce the victim into sending consumer electronics and other money or property to OMOLE; online marketplace scams, in which Enterprise members contacted victims who were selling consumer electronics on online marketplaces, falsely represented to the victim that the Enterprise members had bought and paid for the consumer electronics, and instructed the victim to send the consumer electronics to OMOLE; and employment scams, in which Enterprise members posted phony job positions online, falsely informed unwitting victims that they were hired for the non-existent positions, and instructing the victim to send electronics to OMOLE under the guise that those electronics were needed for the non-existent position (together, the “Fraudulent Electronics Scams”).
During the relevant time period, OMOLE owned and operated a Texas-based business corporation named Tobylink Impressions, Inc. (“Tobylink”), which purported to be a distributor, re-seller, and supplier of satellite communications equipment. In reality, however, Tobylink was a front through which OMOLE received more than 23,000 fraudulently obtained laptops, tablets, smartphones, smartwatches, and other consumer goods sent by thousands of victims nationwide, which OMOLE then repackaged and shipped in bulk to other members of the Enterprise located in Nigeria. From February 2018 to October 2021, OMOLE received items from victims at a storage unit in Richmond, Texas, and from August 2021 to March 2023, OMOLE received items from victims at a warehouse in Sugar Land, Texas.
In total, OMOLE charged his co-conspirators at least approximately $623,894.50 in duty fees and weight-based shipping fees in exchange for receiving and shipping more than $16 million in fraudulently obtained consumer electronics and other consumer goods. OMOLE and his co‑conspirators’ actions victimized thousands of innocent people and caused substantial financial and emotional harm to those victims. For example, among the victims were: a victim who lost more than $350,000 and had to take out a $200,000 loan on her house that she was only $6,000 away from paying off; a victim who lost more than $75,000 and needed to file for bankruptcy; a victim who incurred more than $18,000 in credit card debt, had his credit score negatively affected, began suffering health issues, and considered committing suicide; and a victim who lost more than $220,000, had her cats taken away by county authorities due to the financial harm, and attempted suicide on two occasions.
If you believe you are a victim of the Fraudulent Electronics Scams and that you may be entitled to restitution, you may visit the following website: http://fbi.gov/TobylinkFraudVictims, or contact the following email address: [email protected]. Any responses should be received by no later than December 1, 2024.
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In addition to the prison term, OMOLE, 58, of Sugar Land, Texas, was sentenced to three years of supervised release, ordered to forfeit $623,894.50 and various consumer electronics and other goods seized by law enforcement, and ordered to make restitution in an amount to be determined.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked Homeland Security Investigations for its assistance with the investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.
Stanberry Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Stanberry, Mo., man who threatened to kill law enforcement officers when he was arrested was sentenced in federal court today for illegally possessing a sawed-off shotgun.
Erin L. Graves, 45, was sentenced by U.S. District Judge Howard F. Sachs to eight years and four months in federal prison without parole.
On May 1, 2024, Graves pleaded guilty to being a felon in possession of a firearm and to illegally possessing an unregistered firearm. Graves admitted he was in possession of a stolen Remington 20-gauge shotgun, which had a barrel of less than 18 inches in length, on Jan. 15, 2024.
Today’s sentence includes an enhancement for obstruction of justice, due to multiple threats Graves made to several law enforcement officers.
According to court documents, Graves referred to the sawed-off shotgun as his “cop killer” and stated that if he had shells for it, the officers’ heads would be splattered all over the wall. On the way to jail, he threatened to kill the transporting deputy and force his family to watch. He also stated that he should have killed the officers and threatened that if given a chance, he would do it. Additionally, Graves made several threats against the guards and security officers at the jail and the Department of Corrections, stating they “better have several down there” because he’s “going to take as many of [them] out as he can.” Graves also made threatening statements regarding his parole officer.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Graves, who was on parole in two separate state cases at the time of this federal offense, has five prior felony convictions for stealing, two prior felony convictions for driving while suspended or revoked, two prior felony convictions for tampering with a motor vehicle, two prior felony convictions for burglary, and prior felony convictions for possession of a controlled substance and resisting arrest.
This case was prosecuted by Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Gentry County, Mo., Sheriff’s Office, and the Northwest Missouri Drug Task Force.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
South Sioux City Man Sentenced to 360 Months for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Susan T. Lehr announced that Clifford J. Halverson, age 57, of South Sioux City, Nebraska, was sentenced on September 11, 2024, in federal court in Omaha, Nebraska for receipt and distribution of child pornography. United States District Judge Brian C. Buescher sentenced Halverson to 360 months’ imprisonment. There is no parole in the federal system. After his release from prison, Halverson will be placed on a lifetime term of supervised release.
Halverson committed felony sex crimes involving children in North and South Dakota in the 1990s and was sentenced to 25 years in prison for these crimes. He was released from prison in 2018 at age 51.
In 2023, Halverson began to groom a 14-year-old girl online. The victim was forensically interviewed and reported the interactions. Halverson solicited from and exchanged with the victim sexually explicit photos and videos. The offense conduct began in late July of last year, and within a month the Halverson and the victim exchanged approximately 9,000 messages. Halverson was also in contact with another subject of the investigation, with whom he shared photographs of the victim and offered to set them up for intercourse. During the sentencing hearing, United States District Judge Buescher stated that the 360-month sentence was justified due to the “very disturbing nature of the offense” and Halverson’s criminal history.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the South Sioux City Police Department and the Omaha Federal Bureau of Investigation.
Sixth Sentencing in Drug Trafficking Conspiracy Case Sends Del Rio Man to Federal Prison for 9 YearsRead the Press Release
DEL RIO, Texas – A Del Rio man was sentenced in federal court to nine years in prison for his role in a criminal conspiracy to import and distribute methamphetamine.
According to court documents, Ray Nathan Garcia, 46, attempted to deliver methamphetamine to co-conspirator Rose Vasquez Baker on Feb. 12, 2020. Homeland Security Investigations agents arrested Garcia and seized the drugs, which were verified to be 138 grams of methamphetamine and 6.11 grams of heroin. He also admitted to supplying Baker with methamphetamine on three previous occasions.
Garcia was indicted for one count of conspiracy to distribute 50 grams or more of methamphetamine. He pleaded guilty June 17, 2021.
Co-defendants Oscar Ramirez, Carol Ann Dechaine, Ruben Reyes, Roberto Tovar and Melissa Villarreal, have been collectively sentenced to more than 58 years in federal prison. Baker and Bryan Alexander Gomez remain in federal custody as they await their sentence hearings.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Brett Miner prosecuted the case.
Six Defendants Arrested on Indictments Alleging They Used Stolen Identities to Fraudulently Obtain Lines of Credit and Jobless BenefitsRead the Press Release
SANTA ANA, California – Law enforcement officials today arrested six Orange County residents charged in three indictments alleging, among other crimes, they stole identities to defraud California’s unemployment insurance (UI) system and to fraudulently apply for lines of credit from a lender, using the identity theft victims’ homes as collateral.
In total, seven defendants are charged in the three indictments, which were returned by a federal grand jury. The defendants arrested today are expected to be arraigned this afternoon in United States District Court in Santa Ana.
The first indictment, returned on June 12, contains 31 counts, alleges the following defendants participated in a conspiracy that fraudulently obtained debit cards through the California Employment Development Department (EDD), which administers the state’s UI system:
- Tien Vo, 43, of Westminster;
- Crystal Nguyen, 35, of Garden Grove, who is a fugitive;
- Thao Nguyen, 46, of Westminster; and
- Michelle Strange, 40, of Midway City.
All four of these defendants are charged with 22 counts of bank fraud, and each has been charged with two counts of aggravated identity theft. Vo also is charged with one count of possession of unauthorized access devices.
From May 2020 to January 2022, the defendants allegedly obtained UI debit cards, which fraudulently had been obtained by submitting UI applications in the names of identity theft victims. During this time, EDD also administered Pandemic Unemployment Assistance benefits, which Congress authorized in 2020 to provide to individuals who were unemployed because of the COVID-19 pandemic. The defendants then used these debit cards to withdraw unemployment insurance benefits. In total, the defendants withdrew approximately $15,650 in UI benefits from the debit cards.
The second indictment, returned on August 7, contains seven counts, alleges the following defendants schemed to defraud banks by using stolen identities – including by stealing mail – to fraudulently obtain lines of credit secured by the identity theft victims’ actual homes – and were secured without the victims’ knowledge or consent:
- Chien Khang Bui, 36, a.k.a. “Catfish” and “Tommy,” of Anaheim;
- Nangialey Nick Wardak, 54, of Santa Ana; and
- Mandy Lynn McGrew, 35, of Santa Ana.
From February 2020 to March 2022, Bui allegedly obtained debit card numbers, bank account numbers, credit cards, home addresses, telephone numbers, and other personal identifying information belonging to identity theft victims. He then submitted online applications for home equity lines of credit (HELOC) with a mortgage-lending company by using the victims’ stolen information. Bui linked each HELOC application to a bank account that he and other conspirators controlled.
The defendants allegedly lied to the mortgage company that they were the person associated with each application and that they were the owner of each of the houses used as collateral. In total, the conspiracy received approximately $502,806 in fraudulently obtained HELOCs.
All three of these defendants are charged with one count of conspiracy to commit bank fraud, and each of them is charged with one count of aggravated identity theft. Bui also is charged with three counts of bank fraud for allegedly using stolen identities to fraudulently obtain COVID-19 jobless benefits from EDD in July and August of 2020.
“These indictments allege an organized criminal campaign of identity theft targeting banks, California’s unemployment insurance program, and homeowners alike,” said United States Attorney Martin Estrada. “Sophisticated fraud schemes, such as the ones alleged in these indictments, cause real damage to victims, and we will be diligent in rooting them out.”
“I am proud of the extensive investigation conducted by the FBI’s Orange County Asian Organized Crime Task Force,” said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Through their hard work and dedication, we were able to dismantle an organization responsible for causing significant financial harm to individuals and public funds designated to assist those in need. The FBI is committed to protecting our communities, financial institutions, and public assistance programs from criminal enterprises that exploit them for personal gain.”
In a third and separate indictment, also returned on August 7 and containing three counts, Bui is charged with two counts of distribution of methamphetamine stemming from alleged incidents in December 2022 and February 2023, and one count of unlawfully possessing a firearm and ammunition.
Bui is not legally permitted to possess firearms or ammunition because of his criminal history, which includes felony convictions in Orange County Superior Court for theft by false pretenses, second-degree commercial burglary, identity theft, identity theft with prior conviction, unlawful taking of a vehicle, and grand theft.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, the defendants would face a statutory maximum sentence of 30 years in federal prison for each bank fraud-related count, and a mandatory consecutive sentence of two years in federal prison for each aggravated identity theft count. Vo would face up to 10 years in prison for the unauthorized possession of access devices count and Bui would face a statutory maximum sentence of life imprisonment for the methamphetamine distribution counts and up to 15 years in federal prison for the count of unlawful possession of a firearm and ammunition.
The FBI’s Orange County Asian Organized Crime Task Force is investigating these cases. This task force is comprised of the FBI; the Santa Ana Police Department; the Westminster Police Department; the California Department of Justice – Bureau of Gambling Control; the Orange County District Attorney's Office; the California Employment Development Department; and the United States Department of Labor – Office of Inspector General. The Orange County Sheriff's Department provided substantial assistance.
Assistant United States Attorney Kevin Y. Fu of the Santa Ana Branch Office is prosecuting the Vo case. Assistant United States Attorney Melissa S. Rabbani, also of the Santa Ana Branch Office, is prosecuting the Bui cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
San Francisco Resident Sentenced to One Year in Prison for Stealing over $340,000 in Funds Intended for Low-Income FamiliesRead the Press Release
SAN FRANCISCO – Gregory Finkelson was sentenced to one year in prison for theft of government property in connection with his fraudulent receipt of hundreds of thousands of dollars in low-income housing benefits, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp; U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) Special Agent in Charge Mark Kaminsky; and IRS Criminal Investigation (IRS-CI) Special Agent in Charge Michael Mosley of the Oakland Field Office. Finkelson’s sentence was imposed by the Honorable James Donato, United States District Judge, on September 9, 2023.
The Section 8 Certificate Program is a rent subsidy program funded by HUD and administered in San Francisco by the San Francisco Housing Authority (SFHA). The program is intended to help low- and moderate-income families afford housing, and it has income limits and other eligibility requirements that applicants must meet to qualify for assistance.
In his plea agreement, Finkelson, 64, admitted that, between approximately August 2006 and February 2020, he wrongfully claimed $341,455 in Section 8 Program subsidies by falsely reporting that he did not own his San Francisco residence, which he bought using a straw purchaser, and that he was merely an employee of a company that he in fact owned and operated out of his residence. Specifically, Finkelson admitted that he used the name of a Russian national living in Russia to purchase his San Francisco home, claiming, wrongfully, that she was his landlord and that he made rent payments to her. Finkelson also admitted he opened several bank accounts, including in the Russian national’s name, and that he used these bank accounts to conceal his use of the ill-gotten Section 8 Program subsidies. He then used the funds he fraudulently obtained to benefit himself, including by funding his business, paying his credit card bills, and making payments on a timeshare in Hawaii. His residence is now worth $2.4 million.
In a memorandum filed for the sentencing, the government noted that Finkelson continued his fraudulent conduct even after SFHA acted to terminate his Section 8 subsidies. Because of his conduct, the government argued, Finkelson deprived low-income families actually in need of housing over the entire period of his scheme. According to the government, Finkelson’s actions damaged public trust in the government’s role as a fiduciary for taxpayer dollars.
Finkelson was indicted by a federal grand jury on July 25, 2023. He pleaded guilty on May 7, 2024, to theft of government property and aiding and abetting, in violation of 18 U.S.C. §§ 641 and 2.
In addition to the one-year term of imprisonment, Judge Donato further sentenced Finkelson to a three-year period of supervision following his release from prison and ordered Finkelson to pay $341,455 in restitution, which represents the total amount he admitted he stole from the government. Finkelson was ordered to surrender into custody on September 16, 2024.
Assistant United States Attorneys Christiaan Highsmith and Kevin Yeh are prosecuting the case with the assistance of Claudia Hyslop. The prosecution is the result of a joint investigation by the FBI, HUD OIG, and IRS-CI, with assistance from SFHA.
Salvadoran Man Previously Deported on Eight Separate Occasions Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Salvadoran man was sentenced today for unlawfully reentering the United States after deportation.
Melvin Alexander Orellana-Martinez, 54, was sentenced by U.S. District Court Judge Richard G. Stearns to 60 months in prison. His sentence will be served concurrently with a 17-21 year state sentence he is currently serving in Massachusetts for several offenses, including multiple counts of aggravated rape, kidnapping and witness intimidation. In April 2024, Orellana-Martinez pleaded guilty to one count of unlawful reentry of a deported alien.
On eight separate occasions between July 2007 and January 2020, Orellana-Martinez was removed from the United States. Between February 2008 and March 2019, Orellana-Martinez was convicted in California and Texas federal courts on five separate occasions of either illegal reentry or improper entry.
Orellana-Martinez was last deported from the United States on Jan. 14, 2020. Sometime after his January 2020 removal, Orellana-Martinez unlawfully reentered the United States. On Jan. 6, 2023, federal immigration authorities were notified that Orellana-Martinez had unlawfully reentered the United States after he was arrested on other unrelated state charges.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Boston’s Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit prosecuted the case.
Richmond man arrested after posting photo with machinegun sentenced to two years in prisonRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced yesterday to two years in prison for possession of a machinegun.
According to court documents, on Aug. 25, 2023, Latoye Octavius Cooper, 21, posted a picture of himself on social media with a .40 caliber pistol partially stuffed into the waistband of his pants.
Police immediately responded to the area where the photo was taken and observed Cooper entering a vehicle. Officers followed Cooper to a local convenience store and made contact with him inside the store. The officers seized the .40 caliber pistol, which was equipped with a machine gun conversion device (MCD), which rendered the pistol fully automatic. The pistol was loaded, with a large capacity ammunition magazine and had one bullet in the chamber, ready to fire.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-155.
Readout of the Justice Department’s Civil Rights Division’s Meeting with Muslim, Arab, Sikh, South Asian and Hindu Community StakeholdersRead the Press Release
The Justice Department yesterday convened its quarterly interagency meeting with Muslim, Arab, Sikh, South Asian and Hindu community stakeholders. Attorney General Merrick B. Garland provided remarks with those at the meeting, underscoring the department’s commitment to addressing hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to prevent and combat discrimination and hate crimes. Assistant Secretary of Education Catherine Lhamon in the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges and universities.
Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service and Office of Justice Programs, heard from participating organizations about campus safety and civil rights protections for demonstrators, efforts to protect voting rights and actions to address employment discrimination. Representatives from other federal government agencies were also in attendance, including Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office of Civil Rights and Civil Liberties and others from the Departments of Labor and State, Equal Employment Opportunity Commission and U.S. Commission on Civil Rights.
Combating hate crimes, protecting religious freedom and addressing claims of discrimination are among the division’s top priorities. Yesterday’s meeting represents the department’s ongoing efforts to engage with organizations and stakeholders on issues affecting Muslim, Arab, Sikh, South Asian and Hindu communities.
The department has continued to prosecute hate crimes, including recent cases involving a Kentucky man who was charged with brandishing a gun and threatening a Palestinian American and Muslim man at a restaurant, a New Jersey man for sending threatening letters containing racist, anti-Muslim and antisemitic language and imagery to businesses, schools, synagogues and individuals for the purpose of instilling fear in the community and the leaders of the Terrorgram Collective, a transnational terrorist group for using digital platforms to solicit others to engage in hate crimes and terrorist attacks against immigrants and other groups based on hate-fueled bigotry and white supremacy.
In March, the department hosted community safety webinars for Muslim, Arab and Palestinian community stakeholders, during which the department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin, and protections afforded by the Religious Land Use and Institutionalized Persons Act, a law that prohibits discriminatory land use decisions, and Title II of the Civil Rights Act of 1964 in public accommodations.
If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, you can report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov. Learn more about the department’s work on hate crimes here.
Assistant Attorney General Clarke speaks at the interagency meeting.Puerto Rico Man Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research ReserveRead the Press Release
A Puerto Rico man was sentenced today to 14 months in prison, three years of supervised release and a $10,000 fine for the destruction and filling of wetlands in violation of the Clean Water Act.
According to court documents, between January 2020 and December 2023, Awildo Jimenez-Mercado, 41, removed mangroves from wetlands within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material and built concrete structures atop. Jimenez-Mercado then built hospitality rental homes and an in-ground pool on the land, as well as a dock extending into the Caribbean Sea. He then named the property “Hidden Paradise” and rented the units online as short-term vacation properties for up to $495 per night. Jimenez-Mercado was indicted on Dec. 6, 2023, and pleaded guilty on May 3.
Mangrove wetlands, such as those destroyed by Jimenez-Mercado, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee.
Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodriguez-Sanchez, sentenced in June; Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7; and Rafael Carballo-Diaz and Nathaniel Hernandez-Claudio, who are scheduled to be sentenced on Sept. 13.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force.
Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
Puerto Rico Man Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research ReserveRead the Press Release
A Puerto Rico man was sentenced today to 14 months in prison, three years of supervised release and a $10,000 fine for the destruction and filling of wetlands in violation of the Clean Water Act.
According to court documents, between January 2020 and December 2023, Awildo Jimenez-Mercado, 41, removed mangroves from wetlands within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material and built concrete structures atop. Jimenez-Mercado then built hospitality rental homes and an in-ground pool on the land, as well as a dock extending into the Caribbean Sea. He then named the property “Hidden Paradise” and rented the units online as short-term vacation properties for up to $495 per night. Jimenez-Mercado was indicted on Dec. 6, 2023, and pleaded guilty on May 3.
Mangrove wetlands, such as those destroyed by Jimenez-Mercado, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee.
Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodriguez-Sanchez, sentenced in June; Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7; and Rafael Carballo-Diaz and Nathaniel Hernandez-Claudio, who are scheduled to be sentenced on Sept. 13.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force.
Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
Plymouth Man Arrested for Seven-Year-Long Cyberstalking CampaignRead the Press Release
BOSTON – A Plymouth, Mass. man was arrested today for allegedly cyberstalking a Massachusetts victim through social media, email and various online platforms. Among other things, the defendant allegedly programmed multiple artificial intelligence-driven chatbots to mimic human conversation through text or voice interactions with unknown users of social media platforms.
James Florence Jr., 36, was charged by criminal complaint with one count of cyberstalking. Florence was arrested this morning and, following an initial appearance in federal court in Boston, was detained pending a hearing scheduled for Sept. 16, 2024.
According to the charging documents, between late 2017 and up until the present, Florence is alleged to have created multiple social media accounts and email addresses which he used to harass and threaten the victim anonymously. Florence had previously met the victim through a mutual friend and attended parties at the victim’s former residence between 2015 and 2017.
It is alleged that, beginning in late 2017, Florence used anonymous social media accounts to post photographs of the victim and photographs of her underwear, which had been taken in her former residence, on various websites.
Florence allegedly posted digitally altered images depicting the victim as nude or semi-nude. He allegedly posted the victim’s personally identifiable information on these accounts and on numerous websites – including her personal email addresses, home address, professional contact information, account passwords and even a list of colors she had previously dyed her hair, in order to “dox” her.
Florence allegedly also programmed multiple artificial intelligence-driven chatbots with this information to mimic human conversation through text or voice interactions with unknown users of those platforms.
In addition to having received threatening messages from social media and email accounts believed to be controlled by Florence, the victim also received harassing and extorting communications that are believed to be from users who messaged the victim as a result of Florence’s posts encouraging them to do so. Florence would taunt the victim by creating accounts in her name, using her likeness and tagging them with phrases like “Accept It Your Exposure Is Permanent Slut” and “Enjoy Your Exposure You Naughty Bimbo. You Belong To The Internet.” Florence allegedly posted photo collages of the victim to the website, ladies.exposed, including images edited to make her appear nude or semi-nude along with all her personal identifying information and captions that encouraged viewers to “Post & Share Her Everywhere. Make The Whore Famous.”
The victim’s name, image and other personal information were posted on at least 13 websites. At least 27 unique accounts were used to harass, impersonate, or otherwise cause the victim substantial emotional distress. To date, the victim has received at least 60 distressing text messages, emails, or calls from unknown senders addressed to the victim discussing her image and information posted online through August 2024.
“The defendant’s alleged actions represent a chilling window into the dangers of online harassment and cyberstalking in the digital age. Using advanced technology to manipulate, torment, and publicly humiliate someone for years is not just reprehensible, it is criminal. No one should have to endure the kind of relentless harassment and devastating psychological toll that we allege this victim has bravely endured,” said Acting United States Attorney Joshua S. Levy. “Our office is dedicated to ensuring that individuals who exploit online platforms to stalk, harass, and exploit others are held accountable. We will continue to use every resource available to protect victims of these crimes and to bring justice to keyboard cowards who abuse the digital landscape for their own malicious purposes.”
“Today, the FBI arrested James Florence Jr. for allegedly trying to hide behind his keyboard to sadistically cyberstalk and surveille the victim in this case, inflicting immense trauma and pain on both her and her family,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
The charge of stalking by electronic means provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The Plymouth Police Department and Plymouth Fire Department provided valuable assistance in the investigation. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pasadena Man Pleads Guilty to Sexual Exploitation of A Minor and Commission of A Felony Involving A Minor by A Registered Sex OffenderRead the Press Release
Baltimore, Maryland – Gary Hammond Jackson III, age 32, of Pasadena, Maryland, pleaded guilty today to federal charges of sexual exploitation of a minor and the commission of a felony involving a minor by a registered sex offender.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (“FBI”) Baltimore Field Office, Roland L. Butler, Jr. Superintendent of the Maryland State Police, and Anne Colt Leitess of the Anne Arundel County State’s Attorney’s Office.
According to his guilty plea, in 2020 and 2022, Jackson sexually abused two minor females, then ages 6 and 3, and produced images of the abuse. Specifically, in November 2020, Jackson sexually abused the first victim, then 6 years old, and used his cell phone to produce three images of the abuse. In addition to the sexual exploitation that occurred in November 2020, Jackson sexually assaulted the victim at various times between January 2020 and December 2020. On the basis of that separate conduct, Jackson was convicted of a Fourth Degree Sex Offense and Second Degree Assault in the Circuit Court for Anne Arundel County, Maryland. Following his release, Jackson was required to register as a sex offender.
After being required to register as a sex offender, Jackson used his cell phone in November 2022 to produce thirteen images of a second victim’s genitals when the victim was 3 years old. In November 2022, investigators searched Jackson’s residence and located various digital devices, which contained over 1,500 files of child pornography.
Jackson faces a minimum sentence of 15 years and a maximum of 30 years in federal prison for the sexual exploitation of a minor and a mandatory sentence of 10 years in federal prison for commission of a felony involving a minor by a registered sex offender. Actual sentences for federal crimes are typically less than the maximum penalties.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Barron commended the FBI, the Maryland State Police, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Spencer L. Todd and Paul E. Budlow, 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 www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Par Funding Principals Plead Guilty to RICO Conspiracy, Securities Fraud, Obstruction of Justice, Related ChargesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph LaForte, 53, of Philadelphia, Pennsylvania, and his brother James LaForte, 47, of New York, New York, entered pleas of guilty today before United States District Court Judge Mark A. Kearney to racketeering conspiracy, securities fraud, and related crimes in connection with their operation of a fraudulent investment vehicle known as Complete Business Solutions Group Inc. d/b/a Par Funding (“Par Funding”), which is alleged to have generated over $100 million in illegal proceeds for the defendants to the detriment of Par Funding’s numerous investors, many who live in the Philadelphia region.
Joseph LaForte operated Par Funding’s day-to-day operations and functioned as its president and CEO, while his younger brother James LaForte worked in sales and collections and had managerial authority. In July 2020, the Securities and Exchange Commission (“SEC”) intervened and replaced the LaFortes with a court-ordered receivership that has operated Par Funding since that time.
Joseph LaForte, who has prior felony convictions including for a financial fraud, also pleaded guilty to tax crimes, perjury, and obstruction of justice for his role in aiding and abetting James LaForte’s violent assault on one of the Par Funding receivership’s Philadelphia attorneys who was helping to seize LaForte family assets. In addition, Joseph LaForte pleaded guilty to a gun possession charge for firearms that were found in his former residence during the execution of a search warrant.
James LaForte also pleaded guilty to the extortionate collection of credit from a Par Funding merchant customer, as well as obstruction of justice for assaulting the Philadelphia attorney and retaliation for threatening several government witnesses.
The government and the defendants have agreed that defendant Joseph LaForte will serve between 13½ to 15½ years’ imprisonment and defendant James LaForte will serve 110 to 137 months’ (~9 to 11½ years’) imprisonment, provided those ranges are accepted by the district court at the time of sentencing. Defendant Joseph LaForte has also agreed to pay millions of dollars in restitution to the Internal Revenue Service in connection with his tax conviction, and to forfeit his rights to a private jet and an investment account seized by the government. At the plea hearing, Judge Kearney accepted the guilty plea for Joseph LaForte and conditionally accepted the guilty plea for James LaForte.
In February, the defendants had been charged with violating the Racketeer Influenced and Corrupt Organizations Act (RICO) in a second superseding indictment, which also charged various other crimes included in a previous superseding indictment, including securities fraud, wire fraud, extortionate collection of debt, obstruction of justice, witness tampering, and witness retaliation, tax crimes, and perjury.
Per the indictment, as part of their fundraising efforts, these defendants and their conspirators caused false and misleading information to be conveyed to investors regarding various issues, including:
- Joseph LaForte’s true name, his role at Par Funding, and his criminal history;
- Par Funding’s underwriting process;
- the diversity of the company’s MCA portfolio;
- Par Funding’s default rate;
- Par Funding’s financial success and profitability;
- the company’s insurance; and
- the defendants’ self-dealing.
For instance, although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company. It is alleged that Joseph LaForte, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors.
The indictment also alleged that Par Funding’s principal means of generating income was to “advance” money to businesses that were in need of short-term financing at high rates of return. The indictment alleged that the enterprise, including James LaForte, used threats of violence to collect money from customers whose payments were overdue. James LaForte has pleaded guilty to threatening one particular Par Funding customer, telling him that he must repay the company immediately because James LaForte was not to be messed with and had previously torched people’s cars and kicked people’s teeth in.
The indictment also alleged that Joseph LaForte and James LaForte engaged in obstruction of justice in late February 2023 in connection with James LaForte’s physical assault of one of the Par Funding receivership’s attorneys outside of the attorney’s office in Center City Philadelphia, sending the attorney to the hospital and causing serious bodily injury. Several days later, defendant James LaForte is alleged to have made threatening phone calls to several government witnesses and their family members, including Perry Abbonizio, who James LaForte knew had recently pleaded guilty to conspiring with Joseph LaForte in connection with the fraudulent operation of Par Funding.
Finally, Joseph LaForte and others were also charged with committing a variety of tax crimes involving the proceeds he received from Par Funding, including hiding tens of millions of taxable income via false entries on business and personal federal tax returns and pretending to live in Florida to avoid paying Pennsylvania income tax. In April 2024, LaForte’s wife, Lisa McElhone, pleaded guilty in connection with the Florida residency scheme. It was further alleged that Joseph LaForte failed to report millions of dollars in cash kickbacks that he personally received from a Par Funding merchant customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS.
“The LaFortes’ corrupt enterprise was built on a foundation of lies, threats, and incredible greed,” said U.S. Attorney Romero. “The breadth of the criminal activity here is astounding – from financial fraud to physical violence, obstruction of justice, and more. On behalf of those victimized, justice demands that these perpetrators be held accountable.”
“Investigating complex financial crimes has been a priority of the FBI since our beginning,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The defendants ran their purported business as a criminal enterprise, conducting securities fraud, extortion, and obstruction of justice, all to further their financial gain. This case exemplifies the FBI and our partners’ continued commitment to vigorously pursue these criminals who orchestrate these schemes and bring them to justice.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said Amy MacNeely, Acting Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”
“The guilty pleas in this case hold the defendants accountable for operating a fraudulent investment vehicle that allegedly generated over $100 million illegally, and caused financial harm to numerous investors,” said Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG is pleased to join our law enforcement colleagues in announcing this guilty plea, and we remain committed to investigating and bringing to justice those who commit such egregious acts that threaten investors and the safety and soundness of our Nation's financial system.”
The case was investigated by the FBI, Internal Revenue Service-Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General and prosecuted by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, Eric Gill, Patrick J. Murray, and former Assistant U.S. Attorney Alexandra Lastowski, as well as Assistant U.S. Attorney John J. Boscia and DOJ Trial Attorney Ezra Spiro on the tax portion of the prosecution.
The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.
Pakistani National with Ties to Iran Indicted on Terrorism Charge in Connection with Foiled Plot to Assassinate U.S. Politicians and Government OfficialsRead the Press Release
Yesterday, in federal court in Brooklyn, an indictment was filed charging Asif Merchant, also known as “Asif Raza Merchant,” with attempting to commit an act of terrorism transcending national boundaries and murder-for-hire as part of a scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the plot before any attack could be carried out. Merchant was previously arrested and charged by complaint in July 2024. Merchant was ordered detained and is currently in federal custody. If convicted, Merchant faces up to life in prison.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment.
“The Justice Department will not tolerate Iran’s efforts to target our country’s public officials and endanger our national security,” said Attorney General Merrick B. Garland. “As these terrorism and murder for hire charges against Asif Merchant demonstrate, we will continue to hold accountable those who would seek to carry out Iran’s lethal plotting against Americans.”
“As alleged, Merchant orchestrated a plot to assassinate U.S. politicians and government officials. Today’s indictment is a message to terrorists here and abroad that my Office and the Department of Justice will continue to take all steps necessary to protect the country against foreign threats,” stated United States Attorney Peace.
Mr. Peace expressed his appreciation to the FBI’s Field Offices in Dallas, Houston, Tampa, Boston, Washington D.C., Chicago and Albany for their partnership on this case. Mr. Peace also expressed his appreciation to the New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection for their assistance.
“Merchant’s efforts to allegedly recruit criminal associates for the murder of American politicians are representative of the various threats our nation can face from afar. The formidable efforts of our office ensured that the defendant was unsuccessful in executing his plan and demonstrate FBI New York’s commitment to curtailing the threats to our country and its citizens that come from both within and outside our borders,” stated FBI Assistant Director in Charge Curtis.
As set forth in court filings, in approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme to kill a politician or government official. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS).
In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official.
At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person.
Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.
In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States.
Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”
Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country.
The charges in the indictment are allegations and Merchant is presumed innocent unless and until proven guilty.
The case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Sara K. Winik, Gilbert Rein and Douglas Pravda are in charge of the prosecution, with assistance from Trial Attorneys David Smith and Joshua Champagne of the Department of Justice’s Counterterrorism Section of the National Security Division.
The Defendant:
ASIF MERCHANT (also known as “Asif Raza Merchant”)
Age: 46
Karachi, Pakistan; Tehran, IranE.D.N.Y. Docket No. 24-CR-362 (EK)
Pakistani National with Ties to Iran Charged in Connection with Foiled Plot to Assassinate a Politician or U.S. Government OfficialRead the Press Release
Asif Merchant, also known as Asif Raza Merchant, was indicted yesterday with attempting to commit an act of terrorism transcending national boundaries and murder-for-hire as part of a scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the plot before any attack could be carried out. Merchant was previously arrested and charged by complaint in July 2024. Merchant was ordered detained and is currently in federal custody.
“The Justice Department will not tolerate Iran’s efforts to target our country’s public officials and endanger our national security,” said Attorney General Merrick B. Garland. “As these terrorism and murder for hire charges against Asif Merchant demonstrate, we will continue to hold accountable those who would seek to carry out Iran’s lethal plotting against Americans.”
“This dangerous murder-for-hire plot was allegedly orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian regime's playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a serious threat to our national security and will be met with the full might and resources of the FBI. Protecting Americans from terrorists remains our highest priority.”
“As alleged, Merchant orchestrated a plot to assassinate U.S. politicians and government officials,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s indictment is a message to terrorists here and abroad that my Office and the Department of Justice will continue to take all steps necessary to protect the country against foreign threats.”
As set forth in court filings, in approximately April, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme to kill a politician or government official. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS).
In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official.
At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person.
Merchant stated that the assassination would occur after he left the United States, and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States.
In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States.
Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.”
Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country.
If convicted, Merchant faces a maximum penalty of life in prison.
The FBI Dallas, Houston, Tampa, Boston, Washington, Chicago, and Albany Field Offices investigated the case. The New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection provided assistance.
Assistant U.S. Attorneys Sara K. Winik, Gilbert Rein and Douglas Pravda for the Eastern District of New York and Trial Attorneys David Smith and Joshua Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ottumwa Man Sentenced to 40 Years in Federal Prison for Sex Trafficking and Enticement of MinorsRead the Press Release
DES MOINES, Iowa – An Ottumwa man was sentenced on September 6, 2024, to 40 years in federal prison for sex trafficking by force, fraud, and coercion of two victims, sex trafficking of one child, enticement and attempted enticement of two minors, and using the internet to facilitate prostitution after pleading guilty to all six charges in April 2024, roughly a week before his trial was scheduled to begin.
According to public court documents, from 2018 to 2023, Darnell Keith Jones, 32, victimized at least five individuals—two children and three adults—throughout parts of Iowa, Illinois, and Indiana, including in the areas of Ottumwa, Des Moines, Cedar Rapids, and Chicago. Jones successfully sex trafficked one adult and one child. To cause his victims to engage in sex acts in exchange for money, Jones used physical assaults, harassment, and threats. He also acted like a boyfriend to his victims, attempting to convince victims that they could demonstrate their loyalty and love by completing sex acts for money. Among other things, Jones threatened a victim with a knife, hit a victim with a brick, and choked and strangled victims with such force that his victims lost consciousness or even urinated. Jones raped one victim and attempted to rape another. Jones admitted that he drove his victims to locations where they completed sex acts for money and that he used various internet websites to advertise the adult victims.
Jones coerced and attempted to coerce two female children to engage in illegal sexual conduct, including prostitution. One child was just fourteen years old, and Jones used text-message communications to persuade the child to engage in prostitution and to engage in sex acts with him.
“This case and many similar cases have a lifelong impact on the victims, which is not something the Wapello County Sheriff’s Office takes lightly,” said Wapello County Sheriff Don Phillips. “Local, state, and federal agencies worked together towards the common goal of ensuring justice for the victims and protecting the community. I will always make sure the Wapello County Sheriff’s Office does our part in combating human trafficking in the State of Iowa.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This criminal case was investigated jointly by the Ottumwa Police Department, Wapello County Sheriff’s Office, the Iowa Division of Criminal Investigation, and Homeland Security Investigations.
Wapello County Sheriff's Office Detective Aaron McConnell, Ottumwa Police Department Investigator Jeremy Tosh, and Ottumwa Police Department Investigator Caleb Mitchell served as case agents, with assistance from Special Agent Hai Tran, of Homeland Security Investigations and the Iowa Division of Criminal Investigation. Assistant United States Attorneys Kyle Essley and Laura Roan prosecuted the case.
Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances. Individuals who purchase sex from minors or from those who are otherwise exploited for commercial sex are also subject to prosecution for sex trafficking under federal law, if they knew or were in reckless disregard of the fact that they were under the age of 18, or that force, fraud, or coercion was used.
Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
Omaha Man Sentenced for Armed Bank RobberyRead the Press Release
United States Attorney Susan T. Lehr announced that Madison S. Hill, age 30, of Omaha, Nebraska, was sentenced on September 11, 2024, in federal court in Omaha, for bank robbery and brandishing a firearm during and in relation to a crime of violence. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hill to 154 months’ imprisonment and to pay $50,000.0 in restitution. There is no parole in the federal system. After his release from prison, Hill will be required to complete a 5-year term of supervised release.
On May 20, 2023, Hill entered a bank in Omaha while brandishing a handgun. Hill jumped over the front counter and began making demands of a bank employee and of another employee who was working in the drive-through serving a customer. Hill demanded the employees open the vault and teller drawers. The employees complied and Hill was able to leave the bank with over $76,000.00. A customer who witnessed the robbery observed Hill leaving the bank and pursued Hill while calling police. Law Enforcement responded to the bank and investigated the robbery, eventually identifying Hill through the assistance crime stoppers tips and other community assistance.
This case was investigated by the Federal Bureau of Investigation Great Plains Violent Crimes Task Force and the Omaha Police Department.
Ohio Man Sentenced for Production of Child PornographyRead the Press Release
LONDON, Ky. – A Findlay, Ohio, man, Brenden David Martin, 25, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 348 months in prison, for production of child pornography.
According to his plea agreement, beginning in 2019 and continuing through December 2021 – when the victim was a minor residing in the Eastern District of Kentucky – Martin engaged in conversations with the victim, using Internet-based messaging and social media platforms. He used these conversations to persuade the victim to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct. Specifically, after initially receiving non-nude, but compromising photos of the victim, Martin threatened to disseminate those images via social media, as leverage to convince the victim to provide visual depictions of sexually explicit conduct. The victim ultimately provided him with hundreds of photographs and videos.
Under federal law, Martin must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorney Pearce Nesbitt is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Oahu Man Sentenced to 70 Months in Prison for Emailing Bomb ThreatsRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Bryan Melvin Brandenburg, 65, of Oahu, was sentenced yesterday by U.S. District Judge Leslie E. Kobayashi to 70 months in prison followed by 1 year of supervised release for sending e-mail threats to bomb buildings in Utah, California, and across the United States. Brandenburg was previously convicted at trial by a federal jury of seven counts involving sending the threatening e-mails.
According to information provided to the court, in May 2022, Brandenburg, who was residing on Oahu at the time, was awaiting the outcome of a divorce proceeding in a Utah state court. On May 4, 2022, after receiving the divorce decision, Brandenburg sent an e-mail to two judicial employees and others threatening to bomb the state courthouse. Throughout the course of the day, Brandenburg sent additional e-mails threatening to bomb the Utah State Capitol, Mayor’s office in Salt Lake City, every Ivy League university, and the United States District Courthouse in San Diego, California. On May 6, 2022, Brandenburg sent additional e-mails threatening to bomb Hall Labs and the University of Utah Center for Medical Innovation, both located in Utah.
As a result of Brandenburg’s threats, the Utah State Court initiated extensive security measures including increased screenings and surveillance reviews, searches by all available court deputies, and security briefings for related personnel. The University of Utah Police Department diverted nearly all police officers to the Center for Medical Innovation and evacuated multiple buildings including students taking a final examination. The Provo Police Department conducted a search at Hall Labs. Ultimately, no bombing devices were found. At trial, Brandenburg admitted that he wanted “to raise eyebrows” and have people “take my e-mails seriously,” and that he took “extreme measures” in sending the e-mails.
At sentencing, Judge Kobayashi called Brandenburg’s actions “totally inappropriate,” explaining that “it doesn’t matter who you are, you don’t treat people like that” and that “in a humane society, we don’t lash out.”
“Threats to cause harm, no matter if made over email or in person, will simply not be tolerated,” said U.S. Attorney Clare E. Connors. “Words have consequence, as demonstrated by this prosecution and the court’s sentence. Think before you speak, click send, or otherwise target someone in this manner – otherwise, we will hold you accountable under the law.”
“Making threats to harm innocent people is incomprehensible and will not be tolerated,” said FBI Honolulu Special Agent in Charge Steven Merrill. “When this type of incident is reported, it is always treated as a threat, and therefore drains valuable resources from law enforcement and endangers the wellbeing of our communities.”
The investigation was conducted by the Federal Bureau of Investigation, University of Utah Police Department, and Provo Police Department. Assistant U.S. Attorneys W. KeAupuni Akina and Darren W.K. Ching prosecuted the case.
Northern Colorado Man Sentenced to 29 Years in Prison for Attempted Production of Child PornographyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Cullen Mackenzie Britton, 25, of Drake, Colorado, was sentenced to 348 months in prison and a lifetime of supervised release after he pleaded guilty to attempted production of child pornography.
According to the plea agreement, over the course of about two years, Cullen contacted at least six minors between the ages of nine and 14, via a social media site, and attempted to get the minors to create, and send to him, child pornography.
“The severity of this sentence shows how seriously we take sexual exploitation of children,” said Acting U.S. Attorney for the District of Colorado Matt Kirsch. “These abhorrent crimes will be prosecuted to the fullest extent of the law.”
"This sentence represents a victory in the ongoing battle to protect our most vulnerable citizens - our children. This individual, who used social media to exploit and prey on minors, will now face the full weight of justice with a sentence that reflects the seriousness of his crimes,” said Homeland Security Investigations (HSI) Denver Special Agent in Charge Ryan L. Spradlin. “HSI remains steadfast in our commitment to ensure that those who endanger our communities, especially our youth, are held accountable for their actions.”
Judge Regina M. Rodriguez presided over the sentencing. The case was investigated by HSI Denver. Assistant United States Attorney Melissa Hindman handled the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Case Number: 23-CR-00480
Nigerian Man Sentenced to Federal Prison for Money Laundering and Aiding and Abetting Wire Fraud and Mail FraudRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on September 11, 2024, United States District Court Judge Daniel M. Traynor sentenced Nigerian citizen Christopher Agbaje to serve 142 months’ imprisonment, and to pay $188,935.74 in restitution to a North Dakota law firm, on charges of 1) Money Laundering; 2) Aiding and Abetting Wire Fraud; and 3) Aiding and Abetting Mail Fraud. On May 16, 2024, after a four-day trial, a federal jury found Agbaje guilty on these charges while also finding him not guilty on charges of 1) Wire Fraud; and 2) Mail Fraud. In February 2024, Agbaje was extradited from the United Kingdom to North Dakota to face these charges.
As demonstrated by evidence introduced at trial, between November and December 2020, Agbaje participated with others in a sophisticated scheme to defraud a North Dakota law firm out of $198,336.68. As part of this fraud scheme, individuals falsely purported to be a business owner in a legal dispute with a Bismarck, North Dakota, company and entered into a fictious attorney-client relationship with this law firm. Through email communications, these individuals made false statements and promises, upon which the law firm relied to their determinant. Thereafter, the law firm received a parcel containing a fraudulent Citibank check payable to the law firm in the amount of $198,850.00 and deposited this check in the law firm’s bank account. Subsequently, at the purported business owner’s request, the law firm sent a $198,336.68 wire transfer to Agbaje’s business partner.
A short time later, Agbaje directed his business partner to fraudulently initiate a $180,000.00 international wire transfer with the intent to conceal the location, ownership, and control of the law firm’s money. When Agbaje became aware that law enforcement was conducting a fraud investigation in connection with the wire transfer he and his business partner had received, Agbaje instructed his business partner to “press on,” gain “leverage,” and claim “naivety.”
“This strong sentence shows that international fraudsters cannot hide from justice,” Schneider said. “When North Dakotans are the victims of fraud, our prosecutors and law enforcement partners will work internationally to hold defendants accountable in a federal courtroom in Bismarck or Fargo.”
"Today's sentencing demonstrates that no fraud scheme is beyond the reach of justice, no matter its complexity or scope," said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. "Those who engage in fraudulent schemes will be met with swift and decisive action. The FBI will continue to work with partners across the globe to protect the financial security of the American people from those who seek to exploit it."
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jonathan J. O’Konek and Nick Baker. The Justice Department’s Office of International Affairs provided substantial assistance with securing the arrest and extradition of Agbaje.
If you, or someone you know, has been a victim of cybercrime, please consider filing a report at the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/
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New York Man Arrested for Bank Fraud and Identity Theft in Connection with Stolen $810,000 Tax Refund CheckRead the Press Release
BOSTON – A Yonkers, N.Y. man was arrested yesterday in connection with a scheme to steal an $810,000 tax refund by impersonating a corporate executive in Connecticut.
Steven Ware, 63, was charged by criminal complaint with one count of bank fraud and one count of aggravated identity theft. Ware was arrested yesterday in Yonkers and following an initial appearance in federal court in New York, was released on conditions.
According to charging documents, Ware opened bank accounts in the name of a Connecticut company and one of its managing partners at a credit union in Tyngsborough, Mass. in December 2023. Shortly after opening the account, Ware deposited a United States Treasury check payable to the company and the managing partner for $810,337.68. Once the check cleared, a debit card was allegedly used to withdraw money from the account to buy goods at various retailers in New York, New Hampshire and Massachusetts. Ware allegedly returned to the Tyngsborough credit union several times and wired more than $634,000 of the stolen funds.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1,000,000. The charge of aggravated identity theft provides for a mandatory two years in prison, in addition to any sentence imposed for bank fraud, one year 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Tyngsborough Police Department. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Cyberstalker Is Sentenced to 15 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Russell J. Martini, 47, of Bay Shore, New York, was sentenced today to 180 months in prison followed by three years of supervised release for cyberstalking a female victim and related offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in April and May of 2022, Martini sent repeated harassing and threatening communications to an individual identified in court documents as “Jane Doe.” Jane Doe knew Martini and had obtained a protection order in New York that prohibited the defendant from contacting her. In April 2022, Jane Doe moved from New York to Charlotte. Soon thereafter, Martini began a cyberstalking campaign against Jane Doe, and used texts, emails, and social media platforms to send Jane Doe and members of her family harassing messages and threats of death and bodily injury. Martini also created a public social media account in Jane Doe’s name and used a compromising photo of the victim as a profile picture. Court documents show that Martini threatened to publish sexual photos and videos of Jane Doe online and on popular social media websites if Jane Doe did not respond to his communications.
According to filed court documents, in May 2022, Martini sent Jane Doe emails in which he threatened to kill her, “cave her face in,” “leave her in a pool of blood,” and kill her animals. Then, Martini traveled to Charlotte and attempted to kidnap Jane Doe. Martini waited at Jane Doe’s apartment complex and attacked her as she walked up the stairs to her apartment. Martini then attempted to drag the victim to his car, but a bystander intervened, and Martini fled. After the attack, Martini sent Jane Doe an email asking her if she was “ready for round two” and threatened to kill her.
Court records show that Martini was convicted of stalking another female victim in 2018. In support of Martini’s 15-year sentence, U.S. District Judge Robert J. Conrad, Jr. cited Martini’s lengthy criminal history involving similar behavior, his inability to comply with previous terms of probation, and the need to protect the public from Martini.
On September 28, 2023, Martini pleaded guilty to cyberstalking, stalking, and communicating interstate threats.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case.
Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuted the case.
Mississippi residents convicted of fraud related to Covid-19 loansRead the Press Release
OXFORD, MS – A federal jury convicted a Columbus man and a Clarksdale woman today for applying for and receiving a fraudulent Economic Injury Disaster Loan from the Small Business Administration (SBA) related to the COVID-19 pandemic.
According to court documents and evidence presented at trial, Ramirez Ivy, of Columbus, Mississippi and Felicia Smith of Clarksdale, Mississippi conspired with Lakeith Faulkner, Norman Beckwood and others to each receive $200,000 from the SBA based on fraudulent loan applications. The loan applications contained fictitious documents and claimed business revenue that did not exist.
After a three-day trial before U.S. District Judge Michael P. Mills, the jury found both Ivy and Smith guilty of conspiracy to commit wire fraud in connection to the fraudulent loan applications as well as one count each of aiding and abetting wire fraud.
On December 7, 2022, Faulkner, a former SBA employee, entered a plea of guilty to one count of conspiracy to commit wire fraud. On May 24, 2023, U.S. District Judge Debra M. Brown sentenced Faulkner to serve 62 months imprisonment followed by five years of supervised release. Faulkner was also ordered to pay $10,620,452.26 in restitution to the SBA.
On January 17, 2023, Beckwood entered a plea of guilty to one count of conspiracy to commit wire fraud. U.S. District Judge Sharion Aycock sentenced Beckwood to serve 62 months imprisonment followed by five years of supervised release. In addition to prison time, Beckwood was ordered to pay $10,620,452.26 in restitution to the SBA. In connection with his guilty plea, Beckwood also forfeited $700,147.74, a 2018 Mercedez Benz C Class and a 2020 Mercedes Benz G63.
This scheme was initially uncovered during a civil investigation, led by the Civil Division of the U.S. Attorney’s Office and Assistant U.S. Attorney J. Harland Webster. Thirty (30) other individual borrowers have also been charged in connection with the same scheme.
Assistant U.S. Attorneys Clayton A. Dabbs and Parker King and Sam Wright of the Northern District of Mississippi are prosecuting the criminal case.
The case is being investigated by the FBI, the U.S. Small Business Administration Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration.
Miami Jury Convicts Atlanta Resident of Fentanyl Conspiracy and Drug Trafficking ChargesRead the Press Release
MIAMI – On Aug. 29, a federal jury found Gary Lincoln Davis, 52, of Atlanta, Ga., guilty of one count of conspiracy to possess with intent to distribute fentanyl, two counts of possession with intent to distribute fentanyl, and one count of attempted possession with intent to distribute cocaine.
According to testimony and evidence presented during the four-day trial, Davis was introduced by a cocaine importer to a confidential source working for the government. Davis then met with this confidential source at the Fort Lauderdale Executive Airport in April 2022, to plan for a 90-kilogram cocaine shipment to be flown into the United States from Colombia. When that shipment did not come to fruition, Davis remained in contact with the confidential source—who Davis knew only as an international drug pilot—and agreed to source fentanyl for the confidential source.
Davis then worked with his own network of drug traffickers in the Miami area and, on Dec. 13, 2022, Davis sold 84 grams of fentanyl to the confidential source for $4,900 in Miami.
Thereafter, Davis continued to work with his own network of suppliers to set up larger deals, including the sale of a full kilogram of fentanyl.
On March 7, 2023, Davis delivered a sample of fentanyl from one of his suppliers to a second confidential source, as proof of the fentanyl purity and potency that he would deliver in the full kilogram deal.
Davis continued in his attempts to push forward with a larger fentanyl deal, and told the confidential sources that, in connection with those plans, he had already procured 364 grams of fentanyl from one of his suppliers.
Throughout his interactions with the confidential sources, Davis also asked the confidential sources to provide him with multiple-kilogram loads of cocaine, which he said he would cook into crack cocaine and distribute in Georgia.
On April 18, 2023, Davis met with one of the confidential sources and picked up a backpack he believed contained 6 kilograms of cocaine. Davis also delivered a sample of fentanyl from another supplier to the confidential source. As Davis left the meeting, he observed law enforcement approaching him and sprinted across six lanes of traffic, evading pursuit, and ultimately absconded back to Georgia. The FBI and U.S. Marshals Service (USMS) located and apprehended Davis in the Atlanta area several months later.
U.S. District Judge Melissa Damian is scheduled to sentence Davis on Dec. 5, after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the guilty verdict.
FBI Miami investigated this case with substantial assistance from the Drug Enforcement Administration (DEA), Florida Highway Patrol (FHP), Miami-Dade Police Department (MDPD), and USMS. Assistant U.S. Attorneys Marc Chattah and Sterling M. Paulson are prosecuting the case.
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-20329.
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Massachusetts Businessman Pleads Guilty to Million Dollar Payroll Tax Fraud SchemeRead the Press Release
BOSTON – A Dorchester man pleaded guilty today to a multi-year tax fraud scheme in which he failed to pay employment taxes for his temporary employment agency.
Det Tran, 62, pleaded guilty to two counts of failure to collect and pay over employment taxes. U.S. District Judge Leo T. Sorokin scheduled sentencing for Dec. 10, 2024.
From at least 2018 through 2021, Tran owned and operated HTP Temp. Inc. (HTP), an agency that provided temporary workers for client businesses. During that time, Tran paid $8 million in “off the books” cash wages to HTP employees. Through his concealment of these cash wages, Tran caused his accountant to prepare false quarterly filings to the IRS for HTP’s employee wages and tax withholdings between 2018 and 2021. As a result, Tran evaded more than $2.1 million in employment taxes owed to the IRS.
The charge of failure to pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Man Pleads Guilty to Stealing More Than $68,000 from Medicaid and SNAPRead the Press Release
CONCORD – A man residing in Manchester pleaded guilty in federal court to defrauding Medicaid and the Supplement Nutrition Assistance Program (SNAP) of more than $68,000, which were benefits he was not entitled to, U.S. Attorney Jane E. Young announces.
Joel Gonzalez, a/k/a Joel Gonzalez De La Cruz, a/k/a Joel Cruz, a/k/a Joel King, 40, pleaded guilty to making False Statements. U.S. District Court Judge Samantha D. Elliot scheduled sentencing for December 18, 2024. Gonzalez is currently in New Hampshire state custody for unrelated charges.
Gonzalez used a stolen identity, including name, date of birth, and Social Security Number of a U.S. citizen for approximately two decades. On June 21, 2019, Gonzalez applied for Medicaid benefits using the stolen identity. On July 26, 2019, he applied for SNAP benefits using the stolen identity. Between July 2019 and November 2023, Gonzalez filled out additional applications for Medicaid and SNAP benefits using the stolen identity. All of the applications were made under penalty of perjury. Gonzalez fraudulently received $68,580.65 in benefits he was not entitled to.
Gonzalez also maintained a Facebook account under the alias “Joel King.” Under his Facebook account, he posted a photo of an “Employee of the Month” certificate identifying himself using the stolen identity and he used the stolen identity to obtain the employment.
The charge of False Statements provides for a sentence of up to 5 years in prison, up to 3 years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. Department of Agriculture’s Office of Inspector General and U.S. Department of Health and Human Services’ Office of the Inspector General led the investigation. Valuable assistance was provided by the New Hampshire Department of Corrections, Manchester Police Department, and Homeland Security Investigations. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Madison County Man Sentenced to More Than 17 Years in Federal Prison for Drug PossessionRead the Press Release
FAYETTEVILLE – A Madison County, Arkansas man was sentenced yesterday to 210 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute More than 50 Grams of Mixture or Substance Containing Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, in October of 2023, Arkansas Community Corrections (“ACC”) officers learned that Clint Eugene Phillips, age 47 of Huntsville, Arkansas, was violating multiple conditions of his active parole supervision. In response, ACC officers arranged a parole office visit for Phillips. When Phillips arrived at the parole office, he possessed 279.19 grams of actual methamphetamine and drug paraphernalia. ACC officers and Madison County Sheriff’s Office deputies subsequently searched Phillips’ residence and found multiple items of drug paraphernalia- such as clear bags and digital scales; various amounts of suspected methamphetamine; and stash bottles. An examination of Phillips’ cell phone revealed conversations discussing methamphetamine distribution and financial transactions that corroborated those conversations.
Phillips was subsequently indicted by a federal grand jury on one count of possession with intent to distribute more than 50 grams of methamphetamine. On May 22, 2024, he pleaded guilty to Possession with the Intent to Distribute more than 50 grams of Methamphetamine. At sentencing, the United States provided the Court with evidence that Phillips was a sex offender who had a lengthy criminal history, which included prior convictions related to controlled substances and domestic violence.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Arkansas Community Corrections Division of Community Corrections, Madison County Sheriff’s Office and the Fourth Judicial District Drug Task Force investigated the case.
Assistant United States Attorney Briana Robbins prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Madison County Man Sentenced to More Than 17 Years in Federal Prison for Drug PossessionRead the Press Release
FAYETTEVILLE – A Madison County, Arkansas man was sentenced yesterday to 210 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute More than 50 Grams of Mixture or Substance Containing Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, in October of 2023, Arkansas Community Corrections (“ACC”) officers learned that Clint Eugene Phillips, age 47 of Huntsville, Arkansas, was violating multiple conditions of his active parole supervision. In response, ACC officers arranged a parole office visit for Phillips. When Phillips arrived at the parole office, he possessed 279.19 grams of actual methamphetamine and drug paraphernalia. ACC officers and Madison County Sheriff’s Office deputies subsequently searched Phillips’ residence and found multiple items of drug paraphernalia- such as clear bags and digital scales; various amounts of suspected methamphetamine; and stash bottles. An examination of Phillips’ cell phone revealed conversations discussing methamphetamine distribution and financial transactions that corroborated those conversations.
Phillips was subsequently indicted by a federal grand jury on one count of possession with intent to distribute more than 50 grams of methamphetamine. On May 22, 2024, he pleaded guilty to Possession with the Intent to Distribute more than 50 grams of Methamphetamine. At sentencing, the United States provided the Court with evidence that Phillips was a sex offender who had a lengthy criminal history, which included prior convictions related to controlled substances and domestic violence.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Arkansas Community Corrections Division of Community Corrections, Madison County Sheriff’s Office and the Fourth Judicial District Drug Task Force investigated the case.
Assistant United States Attorney Briana Robbins prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Luzerne County Man Sentenced to 60 Months in Prison for Possessing A FirearmRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 10, 2024, U.S. District Court Judge Robert D. Mariani sentenced Jeremy Anderson, age 28, of West Hazleton, Pennsylvania, to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime.
According to United States Attorney Gerard M. Karam, Anderson pleaded guilty to possessing a firearm in furtherance of drug trafficking on April 3, 2024. Anderson was the target of a DEA investigation during which he sold heroin and fentanyl on three occasions. Agents obtained a federal search warrant, and on July 15, 2021, searched Anderson’s West Hazleton residence, vehicle, and a storage unit. The search resulted in the seizure of 10 grams of fentanyl; a loaded Ruger 9 mm pistol; and $28,457. Anderson was interviewed by agents and admitted selling “pre-packaged bundles” of narcotics to a “short list of customers.”
This case was jointly investigated by the DEA and the Hazleton Police Department. Assistant United States Attorney Todd K. Hinkley prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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.
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Luzerne County Man Indicted for Distribution and Possession of Child PornographyRead the Press Release
SCRANTON -- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Garfet Todd Patton, age 60, of Dallas, Pennsylvania, was indicted on September 10, 2024, by a federal grand jury on distribution and possession of child pornography charges.
According to United States Attorney Gerard M. Karam, the indictment charges Patton with three counts of distribution of child pornography, and one count of possession of child pornography depicting minors engaging in sexual activity. The offenses took place in Luzerne County between June and September 2024.
The case is being investigated by Homeland Security Investigations (HSI). Assistant U.S. Attorney Luisa Honora Berti 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The combined maximum penalty under federal law for this offense is eighty years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Livingston fentanyl trafficker sentenced to more than six years in prisonRead the Press Release
BILLINGS — A Livingston man who admitted to traveling to Washington to get fentanyl pills for distribution in the Park County community and violating release conditions was sentenced today to a total of six years and nine months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, David Scott Retzer, 42, pleaded guilty in March to possession with intent to distribute fentanyl.
U.S. District Judge Susan P. Watters presided.
The court also sentenced Retzer to 10 months in prison in a revocation hearing after finding Retzer violated conditions of release in a previous drug case. The sentence in the revocation is to run consecutive to a 71-month sentence in the fentanyl case, for total of 81 months in prison.
The government alleged in court documents that in June 2022, law enforcement began receiving information that Retzer was involved in distributing fentanyl pills and later that year began tracking Retzer as he traveled to Washington from Montana. In December 2022, law enforcement pulled over Retzer’s vehicle as it entered Park County and searched it pursuant to a warrant. Retzer had a fake battery in his possession that contained 70 fentanyl pills. Additional bags of fentanyl pills were also located in the vehicle. An individual who traveled with Retzer told law enforcement that they had gone to Washington to get fentanyl and had bought 950 pills but had been shorted by the source. In a search of Retzer’s cell phone, law enforcement located numerous conversations in which Retzer discussed distributing fentanyl. At the time of the offense, Retzer was on supervision for a federal drug trafficking offense involving heroin.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Park County Sheriff’s Office, Montana Highway Patrol and Drug Enforcement Administration conducted the investigation.
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Lehi Man Sentenced for Stealing More than $300,000 in COVID Relief FundsRead the Press Release
Salt Lake City, Utah – Neil Alan Johnson, 44, of Lehi, Utah, was sentenced to five years of probation and ordered to pay $324,519 in restitution and forfeiture.
The sentence, imposed by a U.S. District Court Judge, comes after Johnson pleaded guilty to wire fraud in February 2024 after he defrauded the COVID-19 relief program, a federal program through the Small Business Administration (SBA) intended to help American businesses and employees weather the economic shock of the global COVID-19 pandemic.
According to court documents and statements made at Johnson’s sentencing hearing, from March 2021 through November 2022, Johnson devised and engaged in a scheme to defraud and obtain money by lying and fraudulently submitting a Paycheck Protection Program (PPP) Loan Application to the SBA for approximately $324,519 on behalf of his company. Then after obtaining the full loan amount, Johnson fraudulently submitted a PPP Loan Forgiveness Application to the SBA for the entire amount of the loan. His company, named “Neil Johnson,” was located at his home in Lehi, Utah. Johnson submitted the loan applications as the sole proprietor of the company.
In furtherance of his scheme, Johnson lied on the applications. For example, on the initial loan application, he falsely represented that his self-named company had 21 employees, and an average monthly payroll of $129,808.69, even though it did not. On the loan forgiveness application, he falsely represented that the company’s payroll cost between March 25, 2021 and September 9, 2021, was $352,463.80, and that he had used all $324,519 of his loan funds to pay his employees’ payroll. In reality, Johnson illegally used up to $102,000 of the PPP-Loan proceeds to buy back his house in Lehi and transferred over $39,000 of the loan proceeds to a separate account.
United States Attorney Trina A. Higgins for the District of Utah made the announcement.
The Utah Federal COVID-19 Fraud Strike Force investigated the case, which includes Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Office of Inspector General’s U.S. Small Business Administration – Office of Inspector General (SBA-OIG), Department of Defense (DOD), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Labor – Office of Inspector General (DOL-OIG), and the U.S. Treasury Inspector General for Tax Administration (TIGTA). The public is encouraged to share information about the abuse of the Paycheck Protection Program or other SBA programs by submitting a complaint here.
Assistant United States Attorney Todd C. Bouton of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by 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 and https://www.justice.gov/coronavirus/combatingfraud.
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.
Justice Department, Federal Trade Commission and Japan Fair Trade Commission commemorate the 25th Anniversary of U.S.-Japan Competition Cooperation AgreementRead the Press Release
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Commissioner Alvaro Bedoya of the Federal Trade Commission (FTC) and Commissioner Reiko Aoki of the Japan Fair Trade Commission (JFTC) met yesterday in Washington, D.C., to mark the 25th anniversary of the signing of an agreement between the United States and Japan concerning cooperation on anticompetitive issues.
“The Japan Fair Trade Commission is one of our closest and most important international partners,” said Assistant Attorney General Kanter. “We are grateful to the JFTC for our long history of sharing best practices, discussing common challenges and working together on competition issues affecting both of our countries. We look forward to continuing our close relationship with the JFTC in the future.”
“I want to thank Commissioner Aoki and the Japan Fair Trade Commission for being here today to commemorate this historic agreement,” said FTC Commissioner Bedoya. “The cooperation between the United States and Japan on competition issues extends back to 1976, long before this agreement was signed, making it the U.S. antitrust agencies’ longest-running bilateral consultation with any foreign competition agency. Our long and productive relationship reflects a mutual commitment to foster and enhance competition cooperation to the benefit of both countries, and the United States is grateful for this continuing relationship.”
“Challenges to competitive markets, domestically and globally, have evolved since the agreement was signed, the first such agreement for JFTC,” said JFTC Commissioner Aoki. “The evolution of technologies and markets is proof of our successful cooperation in maintaining well-functioning markets. I would like to thank Assistant Attorney General Kanter and Commissioner Bedoya for this opportunity to celebrate our success and confirm our commitment for the next quarter century and beyond.”
Under the 1999 competition cooperation agreement, the Justice Department, FTC and JFTC committed to notify each other of enforcement activities that may affect the other’s important interests and render assistance in enforcement activities where possible in order to contribute to the effective enforcement of the competition laws of each country.
Commission Aoki, Assistant Attorney General Kanter and Commissioner Bedoya attend the meeting.Jury Finds District Man Guilty of Second-Degree Murder for Killing Innocent BystanderRead the Press Release
WASHINGTON – Kylee Palmer, 25, of Washington, D.C., has been found guilty by a jury of second-degree murder while armed and related charges stemming from a day-time shooting on February 12, 2020, in Southeast, D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Palmer was found guilty by a jury on September 11, 2024, following a two-week trial in the Superior Court of the District of Columbia, of second-degree murder while armed, possession of a firearm during a crime of violence, felony destruction of property, and tampering with evidence. The Honorable Rainey Brandt scheduled sentencing for December 12, 2024.
According to the government’s evidence, on February 11, 2020, Palmer got into an argument with an ex-girlfriend and stole her cell phone. After exchanging calls with the ex-girlfriend’s brother in the early hours of February 12, 2020, at approximately 11:01 a.m., Palmer drove a stolen black Nissan Altima, with another individual inside, past 843 51st Street Southeast, where they fired six bullets into the ex-girlfriend’s family home. One of those shots broke through a living room window and struck Barron Goodwin, a 60-year-old innocent bystander, in the head as he slept on a couch in the living room. About an hour later, after Palmer fled the scene, he burned the vehicle used in the shooting in an alley near the 800 block of Chesapeake Street Southeast.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service and FBI CAST team. Finally, they commended the work of Assistant U.S. Attorneys Ryan Sellinger, Christopher Carson, Lisa Lindhorst, and Julia Cosans, who investigated, indicted, and prosecuted the case.
Judge Sentences Man to More Than 19 Years in Prison for Setting Fire to Ex-Girlfriend’s Apartment in February 2024Read the Press Release
WASHINGTON – Quenton Jones, 64, of Washington, D.C., was sentenced today for threats he made to his ex-girlfriend and the February 2024 arson at her apartment, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Superior Court Judge Erik Christian sentenced Jones to 234 months (19.5 years) in prison to be followed by five years of supervised release.
Jones was found guilty on May 24, 2024, by a Superior Court jury of one count of arson, two counts of first-degree burglary, one count of felony threats, one count of felony destruction of property, and multiple counts of felony contempt.
According to the government’s evidence, on December 28, 2023, Jones threatened to kill his ex-girlfriend, the victim, after he accused her of cheating on him. On February 2, 2024, he violated a Stay Away No Contact Order by calling her multiple times and leaving demeaning voicemails on her phone. Then, on February 3, 2024, at approximately 3:00 am, Jones went to the victim’s apartment and wrote on her front door, with a black marker, her personal information and a list of sex acts he said she would do in exchange for money. He returned three hours later and set a piece of paper on fire, shoving it under her front door, causing her front door to catch fire. This fire forced all the residents of the apartment building to evacuate the building. After Jones was arrested, he continued to contact the victim from jail and wrote a handwritten letter to her right before trial.
In making its recommendation, the government argued that Jones showed “little remorse for his actions, which posed a significant risk to the victim’s life.” The government pointed out not only to the psychological damage Jones inflicted onto the victim but also the “security risk he poses for the entire community.”
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the work of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Reshawn Johnson, Tiffany Jones, Johnny DaSilva, Sigourney Jackson, Shanika McCullough, and Nelson Rhone. U.S. Attorney Graves also commended Assistant U.S. Attorneys Molly K. Smith and Monisha Rao from the Domestic Violence Unit of the U.S. Attorney’s Office, who prosecuted the case.
Jefferson City Man Sentenced to 15 Years for Drug TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was sentenced in federal court today for illegally possessing more than a pound of heroin and fentanyl mixture to distribute.
Tremaine Davol Bell, 43, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. Bell was sentenced as a career criminal due to his prior felony convictions.
On Jan. 18, 2024, Bell pleaded guilty to one count of possessing fentanyl with the intent to distribute.
In October 2022, investigators received information that Bell was utilizing a storage unit in Jefferson City to store a large quantity of heroin. Bell was seen leaving the storage facility in the morning of Oct. 31, 2022, driving a Dodge Avenger. A Jefferson City police officer attempted to conduct a traffic stop as Bell drove away from the storage facility, but Bell immediately pulled into a gas station parking lot and fled on foot. The officer chased Bell and was able to take him into custody on Christy Drive.
The officer searched Bell and found $1,210 in cash, in mostly $20 bills, in his pocket. A police dog alerted to the driver’s side door of Bell’s car. Officers searched the vehicle and found a marijuana blunt and a Glock 9mm handgun with ammunition.
Officers also searched Bell’s storage unit and found approximately 556.17 grams of a substance that contained heroin, fentanyl and Tramadol, as well as three additional handguns – two of which were reported stolen – and $29,988 in cash. According to entry and exit logs, Bell accessed the facility multiple times per week and sometimes multiple times per day throughout the month of October 2022.
Bell has three prior felony convictions for distributing a controlled substance and a prior felony conviction for being a felon in possession of a firearm.
This case was prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Cole County, Mo., Sheriff’s Department, and the MUSTANG Drug Task Force.
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Joshua Hart, 42, was found in possession of a firearm following a traffic stop in Jackson on a vehicle being driven erratically and suspiciously. Hart, a passenger in the vehicle, had a previous felony conviction for aggravated robbery out of the state of Texas and an outstanding warrant at the time of the stop. Ammunition was found in Hart’s pant pocket, and the other two passengers in the vehicle informed law enforcement that Hart passed a firearm to the middle seat passenger when the officer initiated the stop. As a convicted felon, it is contrary to federal law for Hart to possess ammunition or any firearm.
Hart will be sentenced on December 12, 2024, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The FBI and the Jackson Police Department are investigating the case.
Assistant U.S. Attorney Matt Allen is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Ironwood Man Sentenced for Possessing Stolen Firearm, Threatening to Kill VictimRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Robert Lee Reynolds, 28, of Spartanburg, South Carolina, and Ironwood, Michigan, was sentenced for possessing a stolen firearm. U.S. District Court Judge Jane M. Beckering sentenced Reynolds to 120 months in federal prison for possessing a firearm that he stole from a victim in Ironwood, Michigan.
“Stopping gun violence before tragedy strikes is critical to preventing senseless violent crimes,” said U.S. Attorney Mark Totten. “I commend our law enforcement partners for their coordinated efforts to keep our communities safe and guns out of the hands of individuals who possess them illegally.”
In May 2023, the Ironwood Public Safety Department learned that Reynolds stole a pistol from an individual in Ironwood then threatened to kill that individual. Reynolds later appeared on social media where he recorded himself brandishing a pistol and threatening more people. Investigators eventually found Reynolds and the stolen gun in a vehicle Reynolds was driving in Menominee, Michigan. Reynolds fled from police before turning himself in after a standoff.
“Robert Reynolds stole a firearm and used it to threaten and intimidate several people in our community to include the firearm owner. Armed threats can quickly escalate into gun violence. Mr. Reynolds’ arrest quite possibly saved lives,” said ATF Detroit Special Agent in Charge James Deir. “In the end, Mr. Reynolds will have a lot of time in prison to reflect on his poor decisions. Gun theft is wrong. The message should be clear, if you choose to engage in gun violence, you should pack your bags for prison.”
The Ironwood Public Safety Department, Gogebic County Sheriff’s Office, Menominee Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorneys Paul Lochner and Jacob Metoxen prosecuted the case.
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Inmate at USP Canaan Charged with Voluntary ManslaughterRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced Bryant Wilson, age 54, an inmate at the United States Penitentiary Canaan, in Waymart, Pennsylvania, was indicted yesterday by a federal grand jury with voluntary manslaughter.
According to United States Attorney Gerard M. Karam, the indictment charges that on or about November 28, 2021, Wilson killed an inmate with a prison-made weapon “upon a sudden quarrel and heat of passion.” The indictment also alleges that Wilson unlawfully possessed a weapon, a seven-inch piece of metal sharpened to a point, commonly known as a “shank.”
The charges stem from a joint investigation conducted by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Kyle Moreno is prosecuting the case.
The maximum penalty under federal law for the crimes charged in the Indictment is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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IRS Supervisor Pleads Guilty to Accepting Bribes from A Government SubcontractorRead the Press Release
Washington – A Maryland man pleaded guilty to accepting cash bribes in exchange for helping acquaintances and their businesses procure and continue work on subcontracts with the IRS.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; and Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division.
According to court documents, Satbir Thukral, 62, of Germantown, worked for the IRS as a computer engineer and served in a position supervising various information technology contracts. In September 2018, Individual 1’s company (Company 1) began working on a subcontract for the IRS that Thukral supervised. Starting in October 2018, Thukral sought portions of Individual 1’s earnings and of the earnings of two employees of Company 1 from Company 1’s work on the IRS subcontract. Individual 1 made such payments between 2018 and 2020, but in early February 2021, told Thukral that Individual 1 would not make any more payments. Thukral then told Individual 1 that Individual 1 would suffer economic consequences if Individual 1 did not continue to pay. In early February 2023, Individual 1 — at the direction of law enforcement — recorded an in-person meeting with Thukral. During the meeting, Individual 1 told Thukral that the FBI had asked Individual 1 about Individual 1’s subcontracting work with the IRS and bank withdrawals Individual 1 had made. To conceal that Individual 1 had made the payments to Thukral, Thukral instructed Individual 1 to tell lies to the FBI about the nature of the cash withdrawals. Later that same day, to assist and induce Individual 1 to lie to the FBI and to further conceal payments that Thukral demanded and received from Individual 1, Thukral returned a portion of the proceeds received from Individual 1. In total, however, Individual 1 paid Thukral more than $120,000.
In July 2022, Thukral was also involved in a scheme in which he and Co-conspirator 1 (CC-1), who was previously a manager at a prime contractor (Company 2) with the IRS, began secretly communicating via a “burner phone” related to IRS contracting and potential payments to Thukral. The next month, CC‑1 provided Thukral with approximately $2,800 that CC-1 had received from another individual to pay Thukral. CC-1 made the payment, in part, in return for Thukral facilitating the continued employment of individuals at Company 3 and Company 4 — both companies being IRS subcontractors with whom CC-1 had an affiliation, and both employees being underqualified for their positions — to work on existing IRS matters. In addition, at the time of the payment, Thukral had been selected to serve on a three-person panel that would have evaluated the technical feasibility of bids for an upcoming IRS contract valued at approximately $200 million.
Thukral pleaded guilty to Acceptance of Bribes by a Public Official. At sentencing, not yet scheduled by the court, Thukral faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U. S. Attorney Barron commended the FBI and TIGTA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright, Christopher Sarma and Trial Attorney Matt Kahn of the Justice Department’s Fraud Section, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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IRS Information Technology Supervisor Pleads Guilty to Accepting Bribes from Government SubcontractorRead the Press Release
A Maryland man pleaded guilty yesterday to accepting cash bribes in exchange for helping acquaintances and their businesses procure and continue work on subcontracts with the IRS.
According to court documents, Satbir Thukral, 62, of Germantown, worked for the IRS as a computer engineer and supervised various information technology contracts. In September 2018, Company 1 began working on a subcontract for the IRS that Thukral supervised. Starting in October 2018, Thukral sought cash payments from Company 1’s owner, Individual 1, constituting a portion of the earnings from Company 1’s work on the IRS subcontract. Between 2018 and 2020, Individual 1 made multiple cash payments to Thukral totaling more than $120,000. In February 2021, when Individual 1 told Thukral that Individual 1 would not pay any more money, Thukral attempted to extort Individual 1 by threatening that Individual 1 would suffer economic consequences if the payments did not continue. In early February 2023, Individual 1 recorded an in-person meeting with Thukral at the direction of law enforcement. During the meeting, Individual 1 told Thukral that the FBI had asked about bank withdrawals that Individual 1 had made. Thukral instructed Individual 1 to lie to the FBI about the nature of the cash withdrawals. Later that same day, to assist and induce Individual 1 to lie to the FBI and to further the concealment of the payments, Thukral returned a portion of the proceeds that Thukral had received from Individual 1.
In a separate scheme, in July 2022, Thukral received approximately $2,800 in cash from a former manager at a prime contractor with the IRS. The manager made the payment, in part, in return for Thukral’s facilitating the continued employment of two underqualified individuals at two other IRS subcontractors with whom the manager had an affiliation. In addition, at the time of the payment, the manager believed that Thukral, who had been selected to serve on a three-person panel that would have evaluated the technical feasibility of bids for an upcoming IRS contract valued at approximately $200 million, could influence the valuations to benefit companies with which the manager had an affiliation.
Thukral pleaded guilty to acceptance of bribes by a public official. Thukral faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The FBI and TIGTA are investigating the case.
Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elizabeth Wright and Christopher Sarma for the District of Maryland are prosecuting the case.
Human Smuggling Facilitator Sentenced to 12 Years in Federal PrisonRead the Press Release
DEL RIO, Texas – A Mexican national was sentenced in federal court to 12 years in prison and ordered to pay more than $52,000 in restitution for her role as a stash house operator and facilitator.
According to court documents, Dulce Maria Almaguer-Morquecho, 43, of Nueva Rosita, Coahuila, Mexico was registered as the owner of multiple vehicles and a cell phone involved in human smuggling attempts between May 14, 2021 and Jan. 17, 2022. Almaguer-Morquecho was identified as someone who harbored undocumented noncitizens and recruited load drivers for human smuggling operations, offering to pay the drivers $1,000 for every migrant they transported.
Almaguer-Morquecho was arrested July 5, 2022. She pleaded guilty to one count of conspiracy to transport aliens, causing serious bodily injury or placing lives in jeopardy on Jan. 9, 2023.
Co-defendant Haley Yvonne Garrett was sentenced on Aug. 15 to six years in prison for her role as a load driver for the organization. Garrett led a law enforcement on high-speed chase through Del Rio, crashing into a Sonic restaurant and ejecting several undocumented noncitizens from her vehicle. Several other co-defendants have received between three and five years in prison for their roles in the human smuggling conspiracy.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations and the U.S. Border Patrol investigated the case.
Assistant U.S. Attorney Brett Miner prosecuted the case.
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