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11 September 2024
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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Harper Woods Resident Arrested for Deadly Drug DistributionRead the Press Release
DETROIT – A Harper Woods resident was arrested today for distributing drugs laced with fentanyl that killed three Grosse Pointe Woods residents in June 2023, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation, and John G. Kosanke, Director of Public Safety, City of Grosse Pointe Woods.
Arrested was Aerian Porter-Craig, 32.
According to the complaint, Porter-Craig had regularly sold drugs to the three victims prior to the fatal incident. On the evening of June 9, 2023, Porter-Craig delivered drugs to Adult Victim 1 (AV-1) and AV-2 at AV-1’s house in Grosse Pointe Woods. Porter-Craig also made a separate delivery to AV-3 at her house in Grosse Pointe Woods. Outgoing communications from all three victims’ phones stopped shortly after Porter-Craig had been to each house. At AV-1’s house, police found a tray next to AV-2’s body with a rolled up twenty-dollar bill and white powder that tested positive for cocaine and fentanyl. At AV-3’s house, police found a tray next to AV-3’s body with a straw and a white powder that contained fentanyl, cocaine, and xylazine. Text messages indicate that the victims thought they were buying cocaine.
The Wayne County Medical Examiner determined that AV-1 and AV-2 died from fentanyl toxicity, and AV-3 had died from fentanyl and xylazine toxicity. Xylazine is an animal tranquilizer unsafe for human consumption but is sometimes mixed with fentanyl by drug traffickers.
“Three young people lost their lives as fentanyl continues to ravage our communities,” U.S. Attorney Ison said. “Fentanyl is everywhere, which means there is no such thing as safe use of illegal drugs. Along with our agency partners, we will continue to pursue these cases and hold drug dealers accountable for their crimes.”
“The arrest of Aerian Porter-Craig, an alleged drug dealer, marks the next step for law enforcement in combating the illegal distribution of drugs, such as Fentanyl,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The families of the three victims who tragically lost their lives can find some solace in knowing the FBI in Michigan, in collaboration with the Grosse Pointe Woods Police Department, remains committed to investigating and delivering justice to those affected by such criminal activities.”
“I appreciate all of the hard work that went into this investigation. The collaborative effort between agencies demonstrates our strong commitment to hold accountable those who plague our communities with these deadly drugs,” said Director Kosanke.
It is important to note that a complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case is being investigated by special agents of the Federal Bureau of Investigation and the City of Grosse Pointe Woods Detective Bureau. This case is being prosecuted by Assistant U.S. Attorney Thomas Franzinger.
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE –Brandon Dewaun Golden, 36 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distributing a controlled substance, possessing a firearm in furtherance of a drug trafficking crime, and being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Golden was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, on two occasions in August 2023, Golden distributed hundreds of fentanyl pills and approximately 400 grams of methamphetamine while possessing a loaded firearm. A traffic stop resulted in the recovery of that firearm. Golden has two prior felony state court convictions, any one of which prohibited him from possessing the firearm in this case.
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which includes the FBI, the Fort Wayne Police Department, the Indiana State Police, and the Allen County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Justin C. Sheridan.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case 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.
Fort Myers Sex Offender Arrested for Pizza Shop Armed RobberyRead the Press Release
Fort Myers, FL – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Shadarien Lamarr Ward (22, Fort Myers) with Hobbs Act robbery and brandishing a firearm during a crime of violence. Ward appeared in federal court in Fort Myers earlier today and has been ordered to remain in federal detention pending trial in this case. If convicted, he faces up to life in prison.
According to court documents and other public records, on the evening of September 1, 2024, Ward robbed a pizza shop near downtown Fort Myers at gunpoint, pistol-whipping an employee in the process. After grabbing the cash register drawer and approximately $700 in cash, Ward fled the area on foot. Ward was later identified by law enforcement after an extensive review of surveillance cameras in the area tracked him to a nearby motel after the robbery.
Ward, a registered sex offender, was wearing a GPS monitor at the time of the robbery as part of his state sex offender probation, which helped law enforcement retrace his steps leading up to and immediately following the robbery. Although he cut off his GPS monitor and absconded from supervision after the robbery, Ward was located and arrested by law enforcement in North Fort Myers yesterday.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It will be prosecuted by Assistant United States Attorney Simon Eth.
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.
Former High School Teacher Sentenced to 30 Years in Prison for Sexual Abuse and Exploitation of MinorsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jeremy Schobel, 33, of Philadelphia, Pennsylvania, a former teacher at Harriton High School in Lower Merion Township, PA, and the High School of Creative and Performing Arts in Philadelphia, was sentenced today by United States District Court Judge John F. Murphy to 30 years’ imprisonment and 20 years of supervised release for an elaborate child exploitation catfishing scheme that Schobel developed to entice young teenage girls, including one who was a student at his school.
For more than three years, and often from classrooms at Harriton High, the defendant posed as different minor girls online, creating extensive, fake profiles to deceive his underage victims into sending him sexually explicit images and videos of themselves.
Schobel was arrested and charged by criminal complaint with child exploitation offenses in June of 2023 and indicted in November 2023. In March, he pleaded guilty to receipt of child pornography and five counts of manufacture of child pornography. His conviction requires him to register as a sex offender pursuant to Megan’s Law in Pennsylvania.
“As a teacher, Jeremy Schobel was tasked with developing young minds,” said U.S. Attorney Romero. “As a predator, though, he chose to deceive and sexually exploit underage girls online — often from his school classroom. Today’s sentence closes the book on Schobel’s years of catfishing and gives his victims a measure of justice. Protecting children from abuse will always be a top priority for my office and our partners at the FBI.”
“Mr. Schobel abused his position of public trust to prey on those we expected him to protect,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The sexual exploitation of children is among the most devious crimes we investigate and today’s sentencing serves as a reminder that the FBI and our partners will work tirelessly to protect children from abuse and exploitation.”
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 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 projectsafechildhood.gov.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Former Decatur Oncologist Pleads Guilty to Illegal Opioid PrescribingRead the Press Release
BIRMINGHAM, Ala. – A former oncologist in Decatur has pleaded guilty to illegally prescribing drugs, including oxycodone and hydrocodone, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Steven L. Hofer.
Sammy Fuad Becdach, 57, pleaded guilty before U.S. District Judge Madeline H. Haikala to two counts of unlawful distribution and dispensing of a controlled substance.
According to the plea agreement, Becdach worked as an oncologist in Decatur, Alabama, including during 2018 through 2021, when the illegal prescribing occurred. In August 2022, the Medical Licensure Commission of Alabama revoked Becdach’s medical license for unprofessional conduct related to his romantic relationship with a woman to whom he had written opioid prescriptions and who later died from a drug overdose. Becdach wrote illegal prescriptions for controlled substances to three individuals who were not his patients. The three filled the prescriptions at Becdach’s request and then gave him the pills they received. Becdach gave some pills to women with whom he was romantically involved. The prescriptions included opioids and benzodiazepines.
The sentencing hearing has been scheduled for November 13, 2024.
The maximum penalty for drug distribution is 20 years in prison and a $1 million fine.
The DEA investigated the case. Assistant U.S. Attorney J.B. Ward is prosecuting the case.
Former CIA Officer Sentenced to Ten Years in Federal Prison for Conspiracy to Commit EspionageRead the Press Release
HONOLULU – A former Central Intelligence Agency (CIA) officer, who pleaded guilty in May to conspiring to gather and deliver national defense information to the People’s Republic of China (PRC), will serve ten years in federal prison, followed by five years of supervised release. Chief U.S. District Judge Derrick K. Watson imposed the sentence this morning in Honolulu, Hawaii.
Alexander Yuk Ching Ma, 71, of Honolulu, was arrested in August 2020,after admitting to an undercover FBI employee that he had facilitated the provision of classified information to intelligence officers employed by the PRC’s Shanghai State Security Bureau (SSSB).
The sentence was announced by U.S. Attorney for the District of Hawaii Clare E. Connors, Assistant Attorney General for National Security Matthew G. Olsen, FBI Assistant Director for Counterintelligence Kevin Vorndran, and Special Agent in Charge Steven Merrill of the FBI’s Honolulu Field Office.
“Despite his sworn oath to protect U.S. classified secrets from illegal disclosure, Alexander Ma chose to betray his oath for money while aiding the People’s Republic of China,” said United States Attorney Clare E. Connors. “Bringing Alexander Ma to justice, even after the passage of many years, affirms our commitment to holding accountable those who violate our nation’s trust and security.”
“This sentence demonstrates the dedication of the United States to protect itself from this type of betrayal and violation of trust,” said FBI Honolulu Special Agent in Charge Steven Merrill. “Let it be a message to anyone else thinking of doing the same. No matter how long it takes, or how much time passes, you will be brought to justice.”
Ma worked for the CIA from 1982 until 1989. His blood relative (identified as co-conspirator #1 or CC #1 in court documents), who is deceased, also worked for the CIA from 1967 until 1983. As CIA officers, both men held Top Secret security clearances that granted them access to sensitive and classified CIA information, and both signed non-disclosure agreements.
As Ma admitted in the plea agreement, in March 2001, over a decade after he resigned from the CIA, Ma was contacted by SSSB intelligence officers, who asked Ma to arrange a meeting between CC #1 and the SSSB. Ma convinced CC #1 to agree, and both Ma and CC #1 met with SSSB intelligence officers in a Hong Kong hotel room for three days. During the meetings, CC #1 provided the SSSB with a large volume of classified U.S. national defense information in return for $50,000 in cash. Ma and CC #1 also agreed to continue to assist the SSSB.
In March 2003, while living in Hawaii, Ma applied for a job as a contract linguist in the FBI’s Honolulu Field Office. The FBI, aware of Ma’s ties to PRC intelligence, hired Ma as part of a ruse to monitor and investigate his activities and contacts with the SSSB. Ma worked part time at an off-site location for the FBI from August 2004 until October 2012.
As detailed in the plea agreement, in February 2006, Ma was tasked by the SSSB with asking CC #1 to identify four individuals of interest to the SSSB from photographs. Ma convinced CC #1 to provide the identities of at least two of the individuals, whose identities were and remain classified U.S. national defense information.
Ma confessed that he knowingly and willfully conspired with CC #1 and SSSB intelligence officers to communicate and transmit information that he knew would be used to injure the United States or to advantage the PRC.
In court documents and at today’s sentencing hearing, the government noted that Ma was convicted of a years-long conspiracy to commit espionage, a serious breach of national security that caused the government to expend substantial investigative resources. The government also noted that Ma’s role in the conspiracy was to facilitate the exchange of information between CC #1 and the SSSB, which consisted of classified CIA information that CC #1 had obtained between 1967 and 1983.
Under the terms of the plea agreement, Ma must cooperate with the United States for the rest of his life, including by submitting to debriefings by U.S. government agencies. At the sentencing hearing, government counsel told the Court that Ma has been cooperative and has taken part in multiple interview sessions with government agents.
U.S. Attorney Connors and Assistant Attorney General Olsen commended the FBI for its work in the investigation and thanked the CIA for its assistance.
The investigation was conducted by the FBI’s Honolulu and Los Angeles Field Offices.
Assistant U.S. Attorneys Ken Sorenson and Craig Nolan, and Trial Attorneys Scott Claffee and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Former CIA Officer Sentenced to 10 Years in Prison for Conspiracy to Commit EspionageRead the Press Release
Alexander Yuk Ching Ma, 71, of Honolulu, a former Central Intelligence Agency (CIA) officer, was sentenced today to conspiring to gather and deliver national defense information to the People’s Republic of China (PRC).
Ma was arrested in August 2020, after admitting to an undercover FBI employee that he had facilitated the provision of classified information to intelligence officers employed by the PRC’s Shanghai State Security Bureau (SSSB).
According to court documents, Ma worked for the CIA from 1982 until 1989. His blood relative (identified as co-conspirator #1 or CC #1 in court documents), who is deceased, also worked for the CIA from 1967 until 1983. As CIA officers, both men held Top Secret security clearances that granted them access to sensitive and classified CIA information, and both signed nondisclosure agreements.
As Ma admitted in the plea agreement, in March 2001, over a decade after he resigned from the CIA, Ma was contacted by SSSB intelligence officers, who asked Ma to arrange a meeting between CC #1 and the SSSB. Ma convinced CC #1 to agree, and both Ma and CC #1 met with SSSB intelligence officers in a Hong Kong hotel room for three days. During the meetings, CC #1 provided the SSSB with a large volume of classified U.S. national defense information in return for $50,000 in cash. Ma and CC #1 also agreed to continue to assist the SSSB.
In March 2003, while living in Hawaii, Ma applied for a job as a contract linguist in the FBI’s Honolulu Field Office. The FBI, aware of Ma’s ties to PRC intelligence, hired Ma as part of a ruse to monitor and investigate his activities and contacts with the SSSB. Ma worked part time at an offsite location for the FBI from August 2004 until October 2012.
As detailed in the plea agreement, in February 2006, Ma was tasked by the SSSB with asking CC #1 to identify four individuals of interest to the SSSB from photographs. Ma convinced CC #1 to provide the identities of at least two of the individuals, whose identities were and remain classified U.S. national defense information.
Ma confessed that he knowingly and willfully conspired with CC #1 and SSSB intelligence officers to communicate and transmit information that he knew would be used to injure the United States or to advantage the PRC.
In court documents and at today’s sentencing hearing, the government noted that Ma was convicted of a years-long conspiracy to commit espionage, a serious breach of national security that caused the government to expend substantial investigative resources. The government also noted that Ma’s role in the conspiracy was to facilitate the exchange of information between CC #1 and the SSSB, which consisted of classified CIA information that CC #1 had obtained between 1967 and 1983.
Under the terms of the plea agreement, Ma must cooperate with the United States for the rest of his life, including by submitting to debriefings by U.S. government agencies. At the sentencing hearing, government counsel told the court that Ma has been cooperative and has taken part in multiple interview sessions with government agents.
Ma has been sentenced to 10 years in prison, followed by five years of supervised release.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Clare E. Connors for the District of Hawaii and Executive Assistant Director Robert Wells of the FBI's National Security Branch made the announcement.
The FBI’s Honolulu and Los Angeles Field Offices investigated the case.
Assistant U.S. Attorneys Ken Sorenson and Craig Nolan for the District of Hawaii, and Trial Attorneys Scott Claffee and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Former Birmingham Art Dealer Sentenced to over Five Years in Prison for Defrauding Elderly ClientsRead the Press Release
DETROIT - Wendy Halstead Beard, 59, of Birmingham, Michigan, was sentenced today to 5 years and 3 months in prison for wire fraud, announced U.S. Attorney Dawn N. Ison.
Joining in the announcement was Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Beard was sentenced before United States District Judge Judith E. Levy in Ann Arbor. Beard’s sentence follows her guilty plea to one count of wire fraud arising from a multi-year scheme in which she received millions of dollars’ worth of fine art photography prints on consignment, sold the artwork without the knowledge of the owners, kept the profits for her own personal gain, and continually deceived the owners about the status of their photographs. Judge Levy also ordered Beard to pay restitution in the amount of more than two million dollars.
According to court records, between March 2019 and October 2022, Beard engaged in an ongoing scheme to defraud dozens of her customers, many of whom were elderly. The primary purpose of the scheme was for Beard to convert to her own use multiple fine art photographs that had been provided to her on a consignment basis, in order to sell those photographs and keep the proceeds for herself (rather than turning over the proceeds to the consignors). She also took thousands of dollars in payments from other victims, for photographs which she then failed to deliver. On at least one occasion Beard victimized two individuals with one photograph—never providing the photograph to the purchaser while also failing to pay the original consigner following the sale.
When questioned by her victims about the whereabouts of their artwork (or their share of the proceeds), Beard repeatedly lied to them, inventing more and more ridiculous justifications for her delay in repayment or return of consigned property. These excuses consisted of, among other things, exaggerating the severity of her own health problems, including claiming (1) to have recently been in a coma and (2) to have received a double-lung transplant. Beard also created fake “employee” identities which she used to correspond with her victims in a further effort to delay detection and conceal her theft.
“My office stands ready to investigate and prosecute elder financial abuse in all its forms and will continue to hold perpetrators like Beard accountable for their actions,” said United States Attorney Ison. “Beard’s ongoing deception was of a level that we rarely see, even in fraud cases, lying to her customers repeatedly in an attempt to conceal her scheme. Today’s sentence will hopefully bring a measure of closure for the more than three-dozen victims who trusted Wendy Beard with their valuable artwork.”
"Preying on vulnerable individuals in any form is utterly deplorable and will not be tolerated," said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. "Ms. Beard's calculated criminal acts displayed a complete disregard for the victims who placed their trust in who they believed to be a legitimate business owner. This collaborative investigation, involving the Birmingham Police Department, members of the FBI in Michigan, and the U.S. Attorney's Office for the Eastern District of Michigan, sends an unmistakable message that those who scheme to defraud innocent victims of their fine art will face the most severe penalties under the law. This sentencing represents a crucial step towards ensuring justice for those who fell victim to her criminal behavior."
The case was investigated by the Federal Bureau of Investigation and the Birmingham Police Department and was prosecuted by Assistant United States Attorneys Ryan A. Particka and Adriana Dydell.
Florida Woman Pleads Guilty to Laundering Millions of Dollars as Part of Romance ScamsRead the Press Release
A Florida woman pleaded guilty today to conspiring to launder millions of dollars from American fraud victims to a co-conspirator abroad.
According to court documents, Cristine Petitfrere, 30, of Miramar, used bank accounts to receive proceeds from romance scams. After receiving money from victims of the scams, Petitfrere kept a portion as a fee and funneled the remainder to her co-conspirator overseas. Petitfrere laundered over $2.7 million and earned hundreds of thousands of dollars in fees.
Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, ultimately leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims, many of whom are elderly. Americans lost $1.14 billion to romance scams in 2023, according to Federal Trade Commission data.
“Romance scams cause not only significant losses but also profound emotional harm to countless individuals,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “This prosecution underscores the department’s efforts to dismantle the criminal networks that engage in these sophisticated financial schemes to exploit vulnerable Americans.”
Petitfrere is scheduled to be sentenced in the Southern District of Florida on Dec. 11. She faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Miami Field Office investigated the case.
Trial Attorneys Matthew Robinson and Lauren M. Elfner of the Civil Division's Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov.
For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
Five Members of Salinas-Based “Murder Squad” Sentenced to A Combined 161 Years in Prison for 2015-2018 Killing SpreeRead the Press Release
SAN JOSE – Five members of the self-proclaimed “Murder Squad,” a crew of Salinas-based Norteño criminal street gang members falling under the Monterey County Regiment Enterprise affiliated with the Nuestra Familia prison gang, were sentenced to a combined 161 years in prison for racketeering conspiracy and conspiracy to commit murder in aid of racketeering, announced United States Attorney Ismail J. Ramsey and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentences were handed down by the Hon. Beth Labson Freeman, U.S. District Judge.
The “Murder Squad” conducted more than a dozen “hunts,” tracking and shooting dozens of Salinas residents whom they perceived to be members of a rival gang for reasons as vague as they were Hispanic, bald, or wearing blue. The squad would often use military-style tactics, traveling in a convoy of vehicles with a designated shooter vehicle and a designated security/spotter vehicle, all of which were in constant communication via conference call. The security/spotter vehicles would patrol the streets, searching for potential targets. Once a target or targets were spotted, the security/spotter vehicle would transmit the location so that the shooters in the shooter vehicle could drive up, exit, fire at the victims until their magazines were empty, and speed away. The security/spotter vehicle would follow behind, ready to distract or intercept law enforcement and allow the shooters to escape.
Between 2015 and 2018, 11 people were killed during these hunts. Another 17 people were shot at but survived. Most of the victims were not actually members of a rival gang. Some of the victims were not the intended target at all but were nevertheless hit in the crossfire. Several of the murders began when the members of the “Murder Squad” were gathered at a house to remember a recently deceased friend or loved one, then decided to go hunting as a way to commemorate the decedent’s memory and/or lift their spirits. Each additional “body” increased a defendant’s status and prestige within the enterprise.
“The ‘Murder Squad’ killed for sport, terrorizing the city of Salinas and forever altering the lives of so many innocent members of our community,” said U.S. Attorney Ramsey. “As described in the court filings, their conduct is reprehensible. Thanks to the strong collaboration between federal and state law enforcement over the course of many years, these men will rightfully spend the next few decades of their lives in prison.”
“This sentencing is a significant blow to members of the Norteño and CRIP criminal street gangs responsible for the ruthless murder of at least 11 individuals, and attempted murder of 17 individuals, in the City of Salinas,” said HSI San Francisco Special Agent in Charge Tatum King. “The indiscriminate killing demonstrates why HSI’s mission to protect public safety is so critical and illustrates our agents’ commitment to ensuring those that engage in senseless murder will be held accountable. We appreciate the work of HSI agents together with Salinas Police Department, the U.S. Attorney’s Office Northern District of California, FBI, and the Monterey County District Attorney’s Office in bringing these murderers to justice.”
All five defendants pleaded guilty on May 7, 2024, to one count of racketeering conspiracy in violation of 8 U.S.C. § 1962(d) and one count of conspiracy to murder in aid of racketeering in violation of 18 U.S.C. § 1959(a)(5).
Siaki Tavale, 27, also known as “Shocky” or “Gunner,” was sentenced to 41 years in prison; John Magat, 37, also known as “Romeo,” was sentenced to 37 years in prison; Anthony Valdez, 27, also known as “Hitter” or “Tony Boronda,” was sentenced to 31 years in prison; Anelu Tavale, 28, also known as “Angel,” was sentenced to 27 years in prison; and Mark Anthony Garcia, 33, also known as “Tony from Santa Rita,” was sentenced to 25 years in prison. Each of the defendants also was ordered to serve a five-year term of supervised release that will begin upon completion of the defendant’s prison term.
The defendants were immediately remanded into custody to begin serving their sentences.
Assistant U.S. Attorneys Mari Overbeck and George Hageman are prosecuting the case with the assistance of Nina Burney. The prosecution is the result of an investigation by HSI and the Salinas Police Department.
Federal judge finds Billings man guilty of multiple sexual assault and child molestation crimes, attempted sex trafficking, child pornography and other offenses spanning approximately 30 years on Fort Belknap Indian Reservation and in BillingsRead the Press Release
GREAT FALLS — A federal district judge today found a Billings man, formerly of Hays, guilty of multiple crimes involving the sexual assault and molestation of children, attempted sex trafficking, child pornography and other crimes dating back approximately 30 years on the Fort Belknap Indian Reservation and in Billings, U.S. Attorney Jesse Laslovich said.
After a three-day bench trial that began on Sept. 9, Chief U.S. District Judge Brian M. Morris found the defendant, James Kirby King, 58, guilty on 17 counts in a 25-count superseding indictment that alleged various sexual assault child molestation crimes against six separate victims. The court found King not guilty on eight counts.
“The years-long horror of sexual abuse and trauma King inflicted on his victims, most of whom were children when he started his assaults, is unimaginable. King unconscionably sought out vulnerable children for exploitation to satisfy his own desires and caused a lifetime of pain for them. May these verdicts serve as a measure of justice for them. Protecting children from predators like King is our office’s highest priority, and I am deeply grateful to our prosecution team, the FBI, Fort Belknap Law Enforcement, and Great Falls Police Department for their extraordinary work on this awful case,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that King was a prolific sex offender who preyed on the most vulnerable and marginalized Native Americans in Montana for decades by molesting, sexually assaulting, drugging, trafficking and exploiting any defenseless person without regard to their sex, age or biological relationship. During trial, the government presented evidence that led to convictions for offenses against victims identified as Jane Doe 1, Jane Doe 2, Jane Doe 3, Jane Doe 4, Jane Doe 10 and other multiple victims. Some of the victims were under the age of 12 at the time, some were under the age of 16 and some were adults. Most of the conduct occurred on the Fort Belknap Indian Reservation, where King lived, and in Billings, where King lived more recently. The charged conduct began as early as approximately 1992 and continued until his arrest in 2023.
As alleged in court documents, for more than a decade, King repeatedly molested, drugged, assaulted and sexually exploited Jane Doe 1, whose first memory of the molestation was when she was five years old in 1996. In approximately 1994 or 1995, when Jane Doe 2 was 14 years old, King gave her a small amount of alcohol at his residence and she “went blank.” Jane Doe 2 later awoke and became aware of King kneeling between her legs and taking pictures of her naked vaginal area. In addition, King attempted to sexually exploit Jane Doe 3 on numerous occasions and forced numerous sex acts on her both as a child and later as an adult on the Fort Belknap Reservation and in Billings. King drugged and raped Jane Doe 4 on the Fort Belknap Reservation when she was in her 20s and he was in his 40s. And King attempted to sex traffic by coercion Jane Doe 10 in October 2023.
The court found King guilty of:
- Aggravated sexual abuse of a child, one count
- Incest, two counts
- Sexual exploitation of children, three counts
- Aggravated sexual abuse by rendering unconscious or drugging the victim, two counts
- Sexual abuse, two counts
- Attempted aggravated sexual abuse by rendering unconscious or drugging the victim, one count
- Attempted sexual abuse, one count
- Sexual abuse of a minor, one count
- Aggravated sexual abuse by force, one count
- Attempted possession with the intent to sell child pornography in Indian Country, one count
- Possession of child pornography in Indian Country, one count
- Attempted sex trafficking by force, fraud or coercion, one count
King faces a maximum of life in prison, a $250,000 fine and five years to a lifetime of supervised release, along with a mandatory minimum of 15 years to life in prison for the crimes of sexual exploitation of children and attempted sex trafficking by coercion.
The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Jan. 15, 2025. King remained detained pending further proceedings.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Fort Belknap Law Enforcement and Great Falls Police Department conducted the investigation.
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Federal Judge Sentences Rockford Man to More Than Five Years in Prison for Illegally Possessing FirearmsRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing firearms in Rockford.
U.S. District Judge Iain D. Johnston on Tuesday sentenced RENARD MACKLIN, 36, to 70 months in prison to be followed by three years of supervised release. Macklin pleaded guilty earlier this year to a charge of illegal firearm possession. As a previously convicted felon, Macklin was prohibited by federal law from possessing firearms.
Macklin admitted in a plea agreement that, on two occasions, he possessed a firearm when he was a convicted felon. Macklin admitted that on Oct. 10, 2020, he was driving a vehicle in which he possessed a Ruger AR-15 style rifle loaded with a large capacity magazine and one round in the chamber. When Rockford Police attempted to pull him over, Macklin fled at a high rate of speed. On March 16, 2021, Macklin possessed a stolen semi-automatic handgun loaded with a 15-round magazine, which was seized by the Winnebago County Sheriff’s Office during the execution of a search warrant in Rockford.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, Carla Redd, Chief of the Rockford Police Department, and Gary Caruana, Sheriff of Winnebago County. The government was represented by Deputy Criminal Chief Jessica Maveus.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Inmate Charged with Possessing A WeaponRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Evans, age 28, a federal inmate, was indicted yesterday by a federal grand jury with possessing contraband in prison.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about July 15, 2024, while an inmate at the Federal Correction Institution Allenwood (FCI Allenwood), in Union County, Pennsylvania, Evans possessed a six-inch piece of metal sharpened to a point with a cloth handle commonly referred to as a “shank.”
The case was investigated by the Federal Bureau of Investigation (FBI) and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Tatum Wilson is prosecuting the case.
The maximum penalty under federal law for this offense is five 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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Federal Authorities Seize over 350 Website Domains Used to Import Illegal Switches and Silencers from ChinaRead the Press Release
BOSTON – Federal authorities in Boston seized more than 350 internet domains that were allegedly used for the illegal importation of switches and silencers from China. Switches are parts designed to convert semiautomatic pistols into fully automatic machineguns and silencers are devices used to suppress the sound of a firearm when discharged. Possession of these items and their importation from certain countries, including China, are prohibited under the National Firearms Act (NFA).
According to the court documents, in August 2023, federal authorities began targeting multiple websites, businesses and individuals selling, offering for sale, importing and exporting machinegun conversion devices in violation of federal law. It is alleged that law enforcement engaged in undercover purchases from the website domains promoting the sale of NFA-prohibited items – confirming that the domains were being used to sell illegal switches and silencers. The contraband items were then allegedly shipped from China to government-controlled mailboxes in the United States with false descriptions of their contents – such as “necklace” and “toys” – in an effort to conceal the alleged illegal importation.
“Our office remains committed to protecting our communities from the dangers posed by illegal firearms and firearm accessories, wherever the evidence takes us,” said Acting United States Attorney Joshua S. Levy. “The seizure of these domains is a critical step in disrupting the flow of dangerous contraband that threatens public safety. Those who attempt to exploit online platforms to traffic in highly lethal firearm parts will be held accountable. We will continue to pursue and dismantle these illicit networks wherever they operate to uphold the integrity of our laws and safeguard our communities.”
“These websites represent a large-scale, organized effort to import illegal switches and silencers that turn ordinary firearms into deadly automatic weapons. HSI has worked diligently with our partners to systematically dismantle this network of websites to uphold our nation’s import laws and to preserve public safety,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI cyber investigations work to keep illegal switches and silencers out of the hands of criminals who use them to commit violence and facilitate crime in our communities.”
“The results of this investigation have, to date, resulted in the seizure of over 700 devices which would covert a firearm into a machine gun, 87 illegal suppressors, 59 handguns, 36 long guns, as well as the seizure of 355 websites which were used to facilitate the trafficking of these items. The proliferation of readily available devices which allow the illegal manufacturing of machine guns is a plague on our communities. The Postal Inspection Service is committed to working with our state and federal partners to identify those who use the Postal Service to traffic these weapons, remove these illicit items from the mail, and increase the safety of our communities and the Postal Service employees who serve them,” said Ketty Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service, Boston Division
It is further alleged that many of the website domains trafficked counterfeit goods and unlawfully used the Glock, Inc. trademark by offering purported “Glock” switches for sale. In reality, however, Glock, Inc. has never manufactured switches.
Federal authorities ultimately established probable cause to seize for forfeiture more than 350 domains used in connection with the scheme to import switches and silencers in violation of the NFA and laws prohibiting trafficking in counterfeit goods. Visitors to the websites will now be directed to a landing page indicating that the domain has been seized:
Acting U.S. Attorney Levy, HSI SAC Krol and USPIS INC Larco-Ward made the announcement today. Valuable assistance in the investigation was provided by U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Massachusetts State Police. Glock, Inc. fully cooperated with the government’s investigation. Assistant U.S. Attorneys Alexandra W. Amrhein of the Asset Recovery Unit and Luke A. Goldworm of the Major Crimes Unit obtained the seizure warrants.
Falconer man pleads guilty to aiding and abetting a kidnapping in cold case murder investigationRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Anthony Neubauer, 38, of Falconer, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to aiding and abetting kidnapping. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorneys Michael J. Adler and Timothy C. Lynch, who are handling the case, stated that on May 27, 2014, Neubauer and Matthew Rudy kidnapped Joseph Anthony and then traveled from Jamestown, NY, to Rudy’s property in Pennsylvania. Anthony was tricked into traveling to Pennsylvania by an offer of cocaine. Neubauer and Rudy took Anthony to Pennsylvania because they believed he was a cooperator. After arriving in Pennsylvania, Neubauer and Rudy told Anthony they did not have any cocaine, before shooting and killing him, and then burying him on Rudy’s property.
Matthew Rudy was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Warren County, PA, District Attorney’s Office.
Sentencing is scheduled for January 15, 2025, at 11:00 a.m. before Judge Wolford.
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Enterprise Man Sentenced to Four Years in Federal Prison for Possessing Stolen FirearmsRead the Press Release
Montgomery, ALABAMA – On September 9, 2024, a federal judge ordered 29-year-old Aubrey Keith Bryant, from Enterprise, Alabama, to serve 48 months in prison for possessing stolen firearms, announced Acting United States Attorney Kevin P. Davidson. The judge also ordered that Bryant remain on supervised release for three years following his prison term. There is no parole in the federal system.
According to Bryant’s plea agreement and other court records, on March 12, 2022, law enforcement in Troy, Alabama observed Bryant driving a truck recklessly and initiated a traffic stop. During the stop, officers discovered that Bryant’s driver’s license had been revoked. When Bryant exited the vehicle officers saw a bag of suspected methamphetamine and a handgun in plain view. Investigators searched the vehicle and found a total of 10 guns, a suppressor for a firearm, and a checkbook containing checks in another individual’s name. Further investigation revealed that these items had been stolen from a storage unit in Enterprise. On May 2, 2024, Bryant pleaded guilty to possession of the stolen firearms in federal court.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Troy Police Department investigated this case, with assistance from the Enterprise Police Department. Assistant United States Attorney Eric M. Counts prosecuted the case.
Des Moines Man Sentenced to 15 Years in Federal Prison for Fentanyl Conspiracy and Firearms ChargesRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 15 years (180 months) in federal prison for conspiracy to distribute fentanyl and possession of firearm in furtherance of his drug trafficking.
According to public court documents, Brian Eugene Harvey, III, also known as “Bino,” 22, was identified by law enforcement as a large-scale fentanyl pill distributor in the Des Moines area. In the fall of 2023, law enforcement conducted several controlled buys of fentanyl pills from Harvey. During one controlled buy, Harvey sold a gun. Law enforcement located over 4,000 fentanyl pills, three firearms, ammunition, and cash in Harvey’s vehicles during search warrants in November 2023.
After completing his term of imprisonment, Harvey will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department.
Fentanyl has become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. Visit the Drug Enforcement Administration’s website to learn more about One Pill Can Kill.
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.
Des Moines Man Pleads Guilty to Child Pornography Possession and Sexual Exploitation ChargesRead the Press Release
DES MOINES, Iowa – A Des Moines businessman pleaded guilty to sexual exploitation and attempted sexual exploitation of a child and possession of child pornography.
According to public court documents, Jeffrey Walter Gray, 61, created and possessed child sexual abuse material. Gray, from as early as approximately 2005 to at least approximately 2016, used minors to produce child sexual abuse material. Some of the material was created at the photography business Gray owned and operated in the Des Moines area—Wicked Imagery. The material included images from hidden cameras placed in the changing rooms at Wicked Imagery to capture videos and/or images of minor children undressing. In November 2023, investigators recovered a hard drive which was later determined to contain child sexual abuse material, including at least fifteen minor victims, from Gray’s residence.
Gray is scheduled to be sentenced on January 8, 2025, and faces a mandatory minimum sentence of 15 years in prison and maximum sentence of 30 years for the sexual exploitation charge. Gray also faces a maximum sentence of 20 years in prison for the possession of child pornography charge. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case with the assistance of the Des Moines Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Dartmouth Woman Pleads Guilty to Embezzling from Multiple EmployersRead the Press Release
BOSTON – A Dartmouth woman pleaded guilty today in federal court in Boston to embezzling hundreds of thousands of dollars from two different employers.
Jasmyne Botelho, 41, pleaded guilty to two counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 18, 2024. Botelho was indicted by a federal grand jury in May 2024.
Between September 2017 and April 2020, Botelho stole at least $280,000 from her employer. Specifically, Botelho directed payments purportedly intended for the company’s vendors to bank accounts she controlled and used company funds to make payments on personal credit cards and an auto loan. To hide her scheme, Botelho falsified her employer’s books and records to make it appear as though the payments had in fact been sent to legitimate vendors rather than to Botelho.
Between May 2022 and December 2023, Botelho improperly inflated her payroll from another employer by more than $160,000. She concealed her scheme by manipulating her employer’s payroll and accounting software to hide her inflated payroll as well as phony “reimbursements” she paid herself.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Crown Point Man Sentenced to 120 Months in PrisonRead the Press Release
HAMMOND – Jeremy Dumas, 56 years old, of Crown Point, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Receipt of Child Pornography, announced United States Attorney Clifford D. Johnson.
Dumas was sentenced to 120 months in prison and 5 years of supervised release. He was also ordered to pay $21,000 in restitution to the victims of the offense, an assessment of $5,000 that will be paid into a fund dedicated to supporting victims, and an assessment of $10,000 that will be paid into the Child Pornography Victims Reserve.
According to documents in the case, from November 1, 2016 through March 16, 2023, Dumas knowingly received and possessed 977 images and 614 video files of child sexual abuse material, including images depicting sadistic or masochistic conduct and the sexual abuse of infants and toddlers.
This case was investigated by Homeland Security Investigations with assistance from the Crown Point Police Department, the Indiana Internet Crimes Against Children Task Force, the Indiana State Police, and the Indiana State Police Digital Forensics Unit. The case was prosecuted by Assistant United States Attorneys Nadia D. Wardrip and Steven J. Lupa.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Council Bluffs Man Sentenced to 7 Years in Federal Prison for Possessing Cocaine and a FirearmRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today to seven years (84 months) in federal prison for possession with intent to distribute cocaine and possessing a firearm in furtherance of his drug trafficking.
According to public court documents, Reginald Juan Harris, Jr., 32, came to the attention of law enforcement in November 2023 for distributing cocaine and marijuana from his Council Bluffs residence. During a subsequent search warrant at his residence, law enforcement located approximately 12 grams of cocaine, approximately 950 grams of marijuana, and a loaded .45 caliber pistol.
After completing his term of imprisonment, Harris will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement (SWINE) Task Force.
Council Bluffs Man Sentenced to 40 Months in Federal Prison for Possessing a Firearm as a FelonRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today to 40 months in federal prison for possessing a firearm as a felon.
According to public court documents, T.J. LeBaugh, 37, dropped a bag with a loaded nine-millimeter firearm and an extended firearm magazine while fleeing from law enforcement. Prior to fleeing on foot, LeBaugh was speeding and caused a car accident. In 2015, LeBaugh was convicted of possessing a firearm with an obliterated serial number in the United States District Court for the Southern District of Iowa.
After completing his term of imprisonment, LeBaugh will be required to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Council Bluffs Police Department.
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.
Convicted Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty to drug and gun charges, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton Peeples.
Waymon Lanar Robinson, Jr., 31, of Birmingham, pleaded guilty before U.S. District Judge Annemarie Axon to possession with intent to distribute methamphetamine, heroin, and fentanyl; carrying a firearm during and in relation to a drug trafficking crime; and being a felon in possession of a firearm.
According to court documents, on March 1, 2023, Jefferson County Sheriff’s Office deputies conducted surveillance on a house in Tarrant, Alabama, associated with the gang “Hard2Kill.” Officers conducted a traffic stop in an alleyway behind the house. Officers saw Robinson place something inside his pants and walk away from the house. They approached Robinson and asked if he had any weapons on him. Robinson said he did and showed the officer a Glock .40 caliber pistol in his waistband. Robinson also had fentanyl, methamphetamine, hydrocodone pills, heroin, and marijuana inside of a Crown Royal Bag in his pants.
The FBI investigated the case, along with the Jefferson County Sherriff’s Office. Assistant U.S. Attorney Brittany Byrd is prosecuting the case.
Convicted Felon Pleads Guilty to Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – Randy Rashawn Moorehead, 34, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on January 12, 2022, a CMPD officer attempted to conduct a traffic stop of Moorehead’s vehicle for a traffic violation. Moorehead did not comply and instead drove off. The officer continued to follow Moorehead, who eventually turned into a dead-end street and the officer was able to block Moorehead’s vehicle. During the traffic stop, law enforcement detected a strong odor of marijuana emanating from the vehicle. Law enforcement proceeded to conduct a search of the vehicle. Over the course of the search, law enforcement recovered a bag that contained a firearm, a quantity of cocaine base, marijuana, and digital scales. Moorehead has a prior felony conviction of Intentional Child Abuse Causing Serious Physical Injury, and he is prohibited from possessing firearms.
Moorehead is currently in federal custody. The statutory maximum for the charged offense is 15 years in prison. A sentencing date has not been sent.
The ATF and CMPD conducted the investigation. Assistant U.S. Attorney Shavonn Bennette of the U.S. Attorney’s Office in Charlotte 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.
Colorado Man Pleads Guilty to a Firearm OffenseRead the Press Release
CONCORD – A Louisville, Colorado man pleaded guilty today in federal court in Concord to a firearm offense, U.S. Attorney Jane E. Young announces.
Shelby Theriault, 30, pleaded guilty to one count of possession of an unregistered firearm. U.S. District Court Steven McAuliffe scheduled sentencing for December 18, 2024.
On January 20, 2024, Theriault was arrested for unrelated theft offenses and found to be in possession of a sawed-off shotgun. Theriault subsequently admitted to stealing the shotgun from a residence in New Hampshire and sawing down the barrel thereafter. Theriault then did not register the sawed-off shotgun as required by the National Firearm Act.
The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Conway Police Department led the investigation. Assistant U.S. Attorney Tiffany Scanlon 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.
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Clay County Felon Pleads Guilty to Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Anthony Rodriguez, Jr. (32, Orange Park) has pleaded guilty to possession of a firearm by a convicted felon. Rodriguez faces up to 15 years in federal prison and forfeiture of a Glock pistol and ammunition traceable to the offense. Rodriguez made his initial appearance in federal court on July 9, 2024, and was ordered detained.
According to court records, on May 11, 2024, Rodriguez shoplifted merchandise from a retail store in Clay County. Store personnel stopped Rodriguez and deputies from the Clay County Sheriff’s Office subsequently responded. As deputies searched Rodriguez incident to his arrest, a loaded Glock 43 9mm pistol fell on to the ground from Rodriguez’s clothing. At the time of the incident, Rodriguez had seven prior felony convictions, including two involving a firearm and ammunition. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
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.
Civil settlement resolves allegations of record-keeping violations against Savannah-area weight loss physicianRead the Press Release
SAVANNAH, GA: A physician who operates weight-loss clinics in the Savannah area has agreed to pay civil penalties and to accept increased oversight to resolve allegations that he violated the Controlled Substances Act.
Dr. Donald Lyle Gates, who operates three Savannah-area Scale Solutions clinics, reached a settlement with the Southern District of Georgia U.S. Attorney’s Office, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia, that requires Gates to pay a civil penalty of $100,000. An agreement with the Drug Enforcement Administration also allows Dr. Gates to maintain DEA registrations to dispense controlled substances while abiding by specific conditions that include a two-year term of increased oversight by DEA.
“Those with the authority to dispense potentially addictive drugs are expected to balance that power with the responsibility to provide adequate and trustworthy recordkeeping,” said U.S. Attorney Steinberg. “Recordkeeping requirements serve a critical role to ensure that controlled substances are not diverted for illegal purposes.”
Dr. Gates operates Georgia weight-loss clinics called Scale Solutions in Savannah, Pooler, and Hinesville, and previously operated a clinic in Bluffton, S.C. The United States, through the U.S. Attorney’s Office and the Drug Enforcement Administration, alleged that Gates failed to keep and maintain records for the prescription weight-loss drugs phentermine and phendimetrazine, and dispensed those drugs in violation of the Controlled Substances Act.
DEA Diversion Investigators conducted on-site inspections of Dr. Gates’ offices and determined, among other findings, that the offices did not have complete and accurate records of controlled substances for which Dr. Gates was responsible, including inventories, documents memorializing his receipt of controlled substances, their distribution, and their dispensation. Investigators alleged that on more than one occasion, Dr. Gates failed to keep controlled substances at the locations registered with DEA and instead transferred those controlled substances to his home.
The Controlled Substances Act creates a closed system that tracks controlled substances from manufacture through distributor, to the ultimate end-user, allowing the DEA to monitor the flow of controlled substances in the United States at every juncture. When a dispensing practitioner fails to maintain complete and accurate records, the system is at risk for illegal diversion into the community.
The civil settlement and the Memorandum of Agreement are neither an admission of liability by Dr. Gates, nor a concession by the United States that its claims are not well-founded.
“Diverted and misused prescription medications pose a grave threat to public health,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Therefore, it’s expected and required that physicians and other trusted medical providers maintain meticulous records of these controlled substances to prevent prescription drug abuse.”
The case was investigated by the Drug Enforcement Administration, and the civil settlement was negotiated by Assistant U.S. Attorney Bradford C. Patrick.
Cincinnati man admits to serving as ‘straw purchaser’ for at least 21 firearmsRead the Press Release
CINCINNATI – A Cincinnati man pleaded guilty in federal court here today to a crime related to the illegal straw purchases of at least 21 firearms.
Timothy Moorman, Jr., 32, pleaded guilty to making a false statement on a federal firearm form.
Moorman admitted he bought firearms at Cincinnati-area federal firearms licensees and then provided those firearms to co-conspirators the same day or within a few days.
According to court documents, the individuals to whom Moorman provided the firearms immediately trafficked them outside of Ohio. For example, at least nine firearms were recovered in connection with a crime in Canada less than two weeks after Moorman bought them. Two others were traced to crimes in Canada and Detroit within two months of purchase.
Court documents detail that in September and October 2023, Moorman purchased firearms at Bass Pro Shops, Range USA – Cincy West, Range USA – Blue Ash, Target World and North College Hill Gun Store.
Moorman falsely indicated on the required firearms forms that the firearms were for himself and no one else, when in fact he was acting as a straw purchaser.
The defendant was indicted by a federal grand jury in March 2024.
Making a false statement during the purchase of a firearm is a federal crime punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the guilty plea entered today before U.S. District Judge Jeffery P. Hopkins. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
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Canadian Man Pleads Guilty to Destruction of an Energy FacilityRead the Press Release
Cameron Monte Smith, a citizen of Canada, pleaded guilty to one count of destruction of an energy facility charged in the District of North Dakota and one count of destruction of an energy facility charged in the District of South Dakota.
Smith admitted to damaging the Wheelock substation, located near Ray, North Dakota, in an amount exceeding $100,000, in May 2023. The Wheelock substation is operated by Mountrail-Williams Electric Cooperative and Basin Electric Power Cooperative.
Smith also admitted to damaging a transformer and pumpstation of the Keystone Pipeline located near Carpenter, South Dakota, in an amount exceeding $100,000, in July 2022.
Smith damaged the Wheelock substation and the Keystone Pipeline equipment by firing multiple rounds from a high-power rifle into the equipment resulting in disruption of electric services to the North Dakota customers and resulting in disruption of the Keystone Pipeline in South Dakota.
A sentencing hearing will be scheduled at a later date. Smith faces a maximum penalty of 20 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Executive Assistant Director Robert Wells of the FBI’s National Security Branch, U.S. Attorney Mac Schneider for the District of North Dakota, U.S. Attorney Alison Ramsdell for the District of South Dakota and Special Agent in Charge Travis S. Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division made the announcement.
The FBI and ATF are investigating the case.
Assistant U.S. Attorneys David D. Hagler, Jonathan J. O’Konek and Jeremy Jehangiri are prosecuting the case with the assistance from Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section.
Buffalo man sentenced on drug and gun chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Felix Calderon-Valcarel, 34, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine, and possession of firearms in furtherance of drug trafficking, was sentenced to serve 87 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney P. Richard Antoine, who handled the case, stated that between May 2018 and September 2018, law enforcement officers conducted a series of controlled buys and payments from Calderon-Valcarcel. In addition, between July 2018 and February 2019, officers seized approximately 8.5 kilograms of cocaine and $52,000 in U.S. currency from postal parcels shipped from Puerto Rico to various locations in the Western District of New York, Florida, Alaska, Georgia, and Pennsylvania using the United States Postal Service. The shipments were made to Calderon-Valcarcel or to a co-conspirator. Additionally, the investigation identified $55,700 in U.S. currency and/or money orders shipped in parcels from Calderon-Valcarcel or co-conspirators to Puerto Rico as payment to the source of supply for the cocaine. In March 2019, the Lackawanna Police Department executed a search warrant at Calderon-Valcarcel’s residence and vehicle. Officers seized $10,000 in cash, five kilograms of cocaine, and a 9mm firearm.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Ketty Larco-Ward; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division; The Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division; the Orchard Park Police Department, under the direction of Chief Patrick Fitzgerald; the Lackawanna Police Department, under the direction of Chief Mark Packard; and the Hamburg Police Department, under the direction of Chief Peter Dienes.
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Bookkeeper Agrees to Plead Guilty to Tax Evasion and Disability Benefits FraudRead the Press Release
BOSTON – The former bookkeeper for an electrical and contracting business has been charged with, and has agreed to plead guilty to, concealing income from the Internal Revenue Service (IRS) and stealing disability benefits.
David Tetreault, 54, of Attleboro, has agreed to plead guilty to one count of tax evasion, one count of theft of government money and one count of wire fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Tetreault worked as a bookkeeper for a Massachusetts-based electrical contractor between 2015 and 2021. It is alleged that, during those years, Tetreault received wages in cash and used company funds to pay his personal credit card bills. Tetreault allegedly manipulated the company’s accounting records and bank statements to disguise these payments as business expenses. As a result of this alleged conduct, Tetreault underreported his personal income by at least $2.1 million, causing a loss to the IRS of over $600,000.
It is also alleged that Tetreault did not report his work for the electrical contractor or his income to the Social Security Administration and submitted false information about his employment and income to the Employees’ Retirement System of Rhode Island (ERSRI). As a result of this alleged conduct, Tetreault collected over $320,000 in Social Security Disability Insurance benefits and ERSRI disability pension benefits to which he was not entitled between 2016 and 2024.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Corwin Rattler, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Agawam Tax Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
BOSTON – An Agawam tax preparer was sentenced on Sept. 5, 2024 in federal court in Boston for filing false tax returns.
Colleen Gruska, 66, was sentenced by U.S. District Court Judge Julia E. Kobick to two months in prison followed by 12 months of supervised release with the first six months to be served in home confinement and to ordered pay $261,102 in restitution to the Internal Revenue Service. In January 2024, Gruska pleaded guilty to four counts of filing false tax returns.
Over the course of a decade, Gruska used her tax preparation service to defraud the United States by filing dozens of false tax returns for herself, her relatives, and others. In each of the tax returns, she reported business losses that were either dramatically overstated or were for businesses that did not even exist, resulting in little or no federal income tax owed by the taxpayer. For example, in her own filings, she reported $189,000 in expenses over four years for a house and yard cleaning business despite there being no actual expenses, enabling her to avoid paying $36,079 in taxes. Similarly, for a relative, she filed false tax returns that claimed a non-existent soccer coaching business with expenses totaling $233,561, thus enabling this person to avoid paying $39,599 in taxes. In total, Gruska caused a loss to the IRS of $261,102.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office prosecuted the case.