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10 September 2024
Former Tuscaloosa-Area Credit Union Insider Pleads Guilty to ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A former credit union employee pleaded guilty for her role in a wide-ranging account-takeover scheme, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Appearing before U.S. District Judge Madeline Haikala, Brianna Mckala Johnson, 25, of Tuscaloosa, pleaded guilty to one count of conspiracy to commit wire fraud.
According to the plea agreement, Johnson was previously employed by Alabama Credit Union as a Member Care Agent. In this role, Johnson was able to access credit union member account information including, among other things, the names and personal identifying information of accountholders and their account balances. From August 2022 to January 2023, Johnson abused this access, misappropriating customer account information and then providing that account information to the administrator of a Telegram channel called “The Lucky Shop.”
The administrator of “The Lucky Shop” channel sold the information that Johnson provided, including bank logins and digital checks, to customers of his channel. The administrator also worked with others to withdraw funds from certain accounts. This part of the scheme, which the conspirators called “Operation ACU,” included depositing fraudulent checks, submitting fraudulent loan applications, and initiating fraudulent Automated Clearing House transfers. It also included using stolen passcodes to withdraw funds from Automated Teller Machines.
The maximum penalty for conspiracy to commit wire fraud is 5 years in prison and a $250,000 fine. Johnson has agreed to pay at least $406,809.96 in restitution to her former employer as part of her plea agreement.
The FBI investigated the case with assistance from Alabama Credit Union, the Tuscaloosa Police Department, and the Orange Beach Police Department. The U.S. Secret Service, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General have assisted in the broader investigation.
Assistant U.S. Attorney Edward J. Canter is prosecuting the case.
Former Rutherfordton ABC Store Manager Pleads Guilty to Wire Fraud and Money Laundering for Embezzling More Than $374,000Read the Press Release
ASHEVILLE, N.C. – Russel Edward Hester, 72, of Rutherfordton, N.C., appeared before U.S. Magistrate Judge W. Carleton Metcalf yesterday and pleaded guilty to federal charges for embezzling $374,807.10 from the Alcohol Beverage Control Board of Rutherfordton, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Clint Ingle of the Rutherfordton Police Department, join U.S. Attorney King in making today’s announcement.
According to filed plea documents, from December 2021 to October 2023, Hester embezzled at least $374,807.10 from the Alcohol Beverage Control Board of Rutherfordton (the Board) which manages the ABC Store where Hester worked as a manager for nearly 10 years. As store manager, Hester had access to, and control over, the Board’s financial accounts and records, wrote checks to pay bills, and was responsible for creating the budget each year. Hester was also responsible for providing all information needed for the annual independent third-party audit of the ABC Store.
According to court records, beginning as early as December 19, 2021, Hester used the Board’s debit card to withdraw funds at Two Kings Casino. Continuing until October 22, 2023, Hester used this debit card at the casino 192 times to withdraw funds totaling $374,807.10, and used the money to gamble, primarily playing slot machines. On days where Hester used the Board’s debit card, he won jackpots totaling $1,469,368.31, and deposited the winnings into his personal bank accounts. For example, on July 4, 2023, Hester used the Board’s debit card to withdraw $3,000 at Two Kings Casino. Hester then placed these funds into a slot machine and won a jackpot of $18,350. Hester elected to have this jackpot issued in the form of a check, which he deposited into a bank account under his control.
Plea documents also show that Hester took steps to cover up the embezzlement. For example, during the Board’s 2023 annual independent audit, Hester provided multiple altered and falsified bank statements to the auditor. In furtherance of the fraud, Hester removed transactions from the casino, added fabricated transactions, and falsified bank account balances on the statements before providing them to the auditor.
Hester pleaded guilty to wire fraud and money laundering. He is currently released on bond. At sentencing, Hester faces up to 20 years in prison for the wire fraud charge and 10 years in prison for the money laundering charge. A federal district court judge will determine Hester’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King commended IRS-CI, USPIS, and the Rutherfordton Police Department for their investigation of the case and thanked the Rutherford County District Attorney’s Office for its invaluable assistance.
Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Former Orange County High School Teacher Who Installed Hidden Cameras in School Bathrooms Sentenced to 17½ Years in PrisonRead the Press Release
SANTA ANA, California – A former teacher at a high school in Orange County who secretly installed hidden cameras in bathrooms at the school and elsewhere and, during a three-year span, viewed and downloaded hundreds of images – including of children under the age of 12 – using the restroom, was sentenced today to 210 months in federal prison for possessing child sexual abuse material (CSAM).
Siu Kong Sit, 38, of Rowland Heights, was sentenced by United States District Judge John W. Holcomb, who ordered Sit to be placed on lifetime supervised release following his eventual release from prison and scheduled a restitution hearing for November 8 in this case.
Sit pleaded guilty on March 29 to one count of possession of child pornography.
“This defendant was every parent’s nightmare – rather than care for the safety and well-being of students, he exploited them in the most abhorrent way,” said United States Attorney Martin Estrada. “It is important that we send a strong message of zero tolerance for those who take advantage of children. My office will continue to prosecute offenders who prey on our youth to the fullest extent allowed by law.”
According to Sit’s plea agreement, beginning in at least February 2020, when he was employed as a teacher at Beckman High School in Irvine, Sit began secretly installing hidden cameras in restrooms located on campus. After installing the cameras, Sit regularly reviewed the videos captured by the cameras and downloaded the videos that were of interest to him.
In May 2022, while serving as the high school robotics team coach, Sit placed a hidden camera in the restroom of a hotel room where minor students on the robotics team were staying during a robotics tournament in Texas. From 2020 to 2023, Sit viewed and downloaded hundreds of images of children and adults, in various states of undress, using restrooms.
In February 2023, after the cameras had been discovered, law enforcement seized several digital devices from Sit’s home. Sit owned and was the sole user of all these devices. Officers also seized two external storage drives from the cameras that Sit had secretly installed at Beckman High School.
A forensic review of the various digital devices identified dozens of images and videos of child pornography, including images and videos that Sit had recorded himself of children using restrooms in various states of undress. The victims that Sit recorded without their consent were under the age of 18, and some of the victims were under the age of 12.
A search of a Sit-owned hard drive resulted in the seizure of at least 22 images and one video of CSAM, including several depicting a toddler engaged in sexual activity. The search of a separate Sit-owned hard drive contained at least 150 images and four videos of CSAM.
Sit admitted in his plea agreement to knowingly possessing images and videos of minors under the age of 12 engaging in sexual conduct.
The Orange County District Attorney’s Office is pursuing criminal charges against Sit in Orange County Superior Court concerning the adult victims in the hidden videos matter. The charges filed in state court concerning Sit’s minor victims was dismissed so the federal case could proceed.
Homeland Security Investigations and the Irvine Police Department investigated this matter.
Assistant United States Attorney Melissa S. Rabbani of the Santa Ana Branch Office prosecuted this case.
Former Michigan Police Officer Sentenced for Civil Rights Violation for Violently Assaulting ArresteeRead the Press Release
DETROIT – A former Warren, Michigan, police officer was sentenced today to one year and one day in prison for using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
Matthew Rodriguez, 49, pleaded guilty in March to one count of deprivation of rights under color of law. According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, J.S., who had recently been brought to the Warren Police Department’s jail for processing. During fingerprinting, Rodriguez and J.S. got into a verbal argument and began trading insults. In retaliation for one of J.S.’ remarks, Rodriguez struck J.S. multiple times and slammed J.S.’ head against the fingerprint room floor.
In connection with his plea, Rodriguez admitted to writing a report in which he made false statements about the incident and omitted material information in an attempt to cover up his crime.
“This defendant swore to protect and serve his community, but instead he abused his power by violently assaulting an arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will continue to protect the constitutional rights of all Americans and to hold law enforcement accountable when they violate federal civil rights law.”
“Police officers have a duty to protect the civil rights of everyone in our community, including individuals in their custody,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Physical abuse of detainees is completely unacceptable and undermines public confidence in the integrity of law enforcement. My office is committed to accountability for all public servants who abuse the public trust, and today’s sentence is a powerful reflection of that commitment.”
“When it comes to the public’s trust, law enforcement officers are held to the highest ethical standards,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The sentencing of former police officer Matthew Rodriguez should serve as a stark reminder that the use of excessive force and deliberate false statements are not only criminal acts but also tarnishes the hard work and dedication of law enforcement officers who serve with integrity every day. This sentencing would not have been possible without the assistance of the Warren Police Department, the U.S. Attorney’s Office of Eastern Michigan and the Justice Department’s Civil Rights Division.”
The FBI Detroit Field Office investigated the case, with assistance from the Warren Police Department’s Internal Affairs Unit.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division prosecuted the case.
Former Michigan Police Officer Sentenced for Civil Rights Violation for Violently Assaulting ArresteeRead the Press Release
A former Warren, Michigan, police officer was sentenced today to one year and one day in prison for using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
Matthew Rodriguez, 49, pleaded guilty in March to one count of deprivation of rights under color of law. According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, J.S., who had recently been brought to the Warren Police Department’s jail for processing. During fingerprinting, Rodriguez and J.S. got into a verbal argument and began trading insults. In retaliation for one of J.S.’ remarks, Rodriguez struck J.S. multiple times and slammed J.S.’ head against the fingerprint room floor.
In connection with his plea, Rodriguez admitted to writing a report in which he made false statements about the incident and omitted material information in an attempt to cover up his crime.
“This defendant swore to protect and serve his community, but instead he abused his power by violently assaulting an arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will continue to protect the constitutional rights of all Americans and to hold law enforcement accountable when they violate federal civil rights law.”
“Police officers have a duty to protect the civil rights of everyone in our community, including individuals in their custody,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Physical abuse of detainees is completely unacceptable and undermines public confidence in the integrity of law enforcement. My office is committed to accountability for all public servants who abuse the public trust, and today’s sentence is a powerful reflection of that commitment.”
“When it comes to the public’s trust, law enforcement officers are held to the highest ethical standards,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The sentencing of former police officer Matthew Rodriguez should serve as a stark reminder that the use of excessive force and deliberate false statements are not only criminal acts but also tarnishes the hard work and dedication of law enforcement officers who serve with integrity every day. This sentencing would not have been possible without the assistance of the Warren Police Department, the U.S. Attorney’s Office of Eastern Michigan and the Justice Department’s Civil Rights Division.”
The FBI Detroit Field Office investigated the case, with assistance from the Warren Police Department’s Internal Affairs Unit.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division prosecuted the case.
Former Correctional Officer Sentenced to More Than Six Years in Prison Following Federal Drug ConvictionRead the Press Release
MONTGOMERY, ALABAMA – Today, Acting United States Attorney Kevin P. Davidson announced the sentencing of a Montgomery, Alabama man for his role in a conspiracy to bring illegal drugs into a prison. On September 9, 2024, a federal judge sentenced 46-year-old Henry Guice, Jr., a former correctional officer with the Alabama Department of Corrections (ADOC), to 75 months in prison. Federal inmates are not eligible for parole.
According to court records and statements made in open court, on June 20, 2023, an ADOC officer and his canine conducted a sniff search of all vehicles in the parking lot of Staton Correctional Facility in Elmore County. The dog alerted on Guice’s vehicle, who was working inside the facility at the time. ADOC officials summoned Guice from his post and conducted a search of the vehicle. Investigators found three bags of suspected methamphetamine inside Guice’s car and two additional bags in his pockets. Drug laboratory analysis confirmed the substance to be methamphetamine.
During his plea hearing in May of this year, Guice admitted that he possessed methamphetamine with the intent to distribute the illegal drug and that he conspired with another individual for that purpose. A federal grand jury also indicted 48-year-old Brad Elliot Gordon, who was an inmate at Staton in June 2023, for his alleged role in the conspiracy. Gordon’s trial is scheduled for February 3, 2025. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Drug Enforcement Administration and the ADOC Law Enforcement Services Division investigated this case, which Assistant United States Attorney Mark E. Andreu prosecuted.
Former Bronx Public Charter School Teacher Sentenced to 30 Years in Prison for Sexual Abuse of Five Former StudentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JESUS CONCEPCION was sentenced to 30 years in prison by U.S. District Judge Loretta A. Preska in connection with his sexual abuse of five minor victims who had been his students. CONCEPCION previously pled guilty to five counts of child enticement, four counts of transportation of a minor with intent to engage in illegal sexual activity, and one count of travel with intent to engage in illegal sexual activity with a minor.
U.S. Attorney Damian Williams said: “Today, Jesus Concepcion was sentenced to decades in prison for his horrific exploitation of children placed into his care as students. The victims of these crimes have waited almost twenty years for Concepcion to be held accountable for the devastating harm and trauma he inflicted on them and their families. Today’s sentencing is a reminder that it is never too late for justice to be served and that the Southern District of New York will work tirelessly to protect children from abuse and exploitation.”
According to the Superseding Indictment and statements made in court and public filings:
CONCEPCION was a music teacher and orchestra instructor at a public charter middle school located in the Bronx, New York (“School-1”) from in or about 2000 up to and including in or about 2007. During that same period, CONCEPCION abused his position as a teacher to induce and attempt to induce five of his students (“Minor Victim-1,” “Minor Victim-2,” “Minor Victim-3,” “Minor Victim-4,” and “Minor Victim-5,” and together the “Minor Victims”) to engage in sexual acts. The Minor Victims were as young as 12 years old at the time of the abuse.
To carry out his sexual abuse of the Minor Victims, CONCEPCION singled out the Minor Victims for personal attention; he gave them money, clothing, jewelry, and other gifts, and he provided certain Minor Victims with alcohol to facilitate the abuse. He persuaded the Minor Victims to believe that they were in romantic relationships with him and provided certain Minor Victims with cellphones so that he could communicate with them to arrange sexual encounters.
CONCEPCION engaged in sexual acts including, oral and vaginal sex, with Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4 in various locations on multiple occasions, including in School-1’s music room, in the back room of School-1’s auditorium, in his car, at motels, and at his residences. On numerous occasions, CONCEPCION brought Minor Victims from School-1 or other locations in the Bronx to motels in New Jersey to sexually abuse them. On at least one occasion, after Minor Victim-1 graduated from middle school, CONCEPCION traveled to Minor Victim-1’s high school in Connecticut to have sexual intercourse with her. CONCEPCION also paid, on multiple occasions, for Minor Victim-2 to travel from her high school in Pennsylvania to visit him in New York, where he had sexual intercourse with her. To continue his abuse, CONCEPCION threatened to physically harm Minor Victim-3 and her family if she told anyone about his sexual abuse of her and her younger sister, Minor Victim-4.
CONCEPCION similarly pursued Minor Victim-5 and sent hundreds of text messages over the course of several months to Minor Victim-5, who was then 13 years old, leading her to believe that they were in a romantic relationship. CONCEPCION arranged to meet Minor Victim-5 during school hours at School-1 and kissed Minor Victim-5 on the mouth. The abuse stopped only after Minor Victim-5’s parents discovered CONCEPCION’s communications and reported him.
* * *
In addition to the prison term, CONCEPCION, 51, of Simpsonville, South Carolina, was sentenced to 10 years of supervised release and ordered to pay a total of $1000 in assessments and restitution in an amount to be determined.
Mr. Williams praised the efforts of the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Camille L. Fletcher, Alexandra S. Messiter, and Jacqueline Kelly are in charge of the prosecution.
Federal Prosecutors Highlight Efforts to Stop Rising Mail Thefts and Prosecute OffendersRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office has intensified federal efforts to address the surge in mail thefts by increasing the prosecution of cases involving stolen mail, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Federal prosecutors and investigators are also urging residents and businesses to take proactive measures to prevent thefts and report stolen mail promptly.
“Mail theft is not a victimless crime. Not only does it disrupt the delivery of important mail, but it can be a conduit to identity theft and financial fraud, with significant consequences for victimized individuals and businesses,” said U.S. Attorney King. “My Office is committed to protecting and securing our postal system, but we also need individuals and businesses to remain vigilant and take steps to secure their mail. Working together, we can stop mail thefts and uphold the integrity of our postal services.”
The U.S. Attorney’s Office has brought charges and secured convictions against defendants for crimes related to mail theft. The cases involve mail stolen from residential and business mailboxes and mail processing centers, used to commit financial fraud, bank fraud, and identity theft. Among the defendants charged are former postal employees, who misused their position and access to commit mail theft and engage in criminal schemes involving stolen mail.
“The safety and security of the U.S. mail and its customers are core to the mission of the U.S. Postal Inspection Service,” said Inspector-in-Charge Tommy D. Coke of the Atlanta Division. “Mail theft can have devasting consequences for victimized individuals and businesses. This effort would not be successful without the cooperation between our federal, state, and local law enforcement counterparts. We will continue to work collectively to pursue criminals who victimize postal customers.”
“We appreciate the outstanding effort by both our law enforcement partners and the Department of Justice,” said Jeffrey Krafels, Special Agent in Charge of the U.S. Postal Inspection Service, Office of the Inspector General (USPS-OIG). “The vast majority of Postal Service employees are honest, hardworking individuals who would not violate the public’s trust in this manner. An employee who decides otherwise, will be aggressively investigated by OIG Special Agents. These cases serve as an excellent example of the successful collaboration between the USPS-OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees and their co-conspirators involved in criminal activity.”
Examples of recent charges brought by the U.S. Attorney’s Office include:
U.S. v. Miguel Bridges and U.S. v. Jaleesa Bridges and Ryan Bridges – Miguel Bridges, 34, of Charlotte, worked as a postal employee at a mail distribution center in Charlotte. Today, he pleaded guilty in federal court to conspiracy to commit offense against the United States for stealing cell phones from the U.S. Postal Service (USPS) and selling them for profit. Jaleesa Bridges, 36, of Charlotte, and Ryan Bridges, 32, of Florence, South Carolina, were charged separately in August 2024, with conspiracy to commit wire fraud and possession of stolen mail. Their charges are still pending. According to allegations in the charging documents, Miguel Bridges took advantage of his position as a postal employee to open mail parcels and steal cellular phones, which he and his co-conspirators then sold to ecoATM automated kiosks and other locations, as well as to third parties. During the conspiracy, it is alleged that more than 1,400 stolen cell phones were sold for approximately $400,000.
U.S. v. John Davis – On August 28, 2024, John Calvin Davis, III, 28, of Charlotte, was sentenced to 18 months in prison and three years of supervised release for executing a scheme involving stolen checks. Court documents show that, from August 2022 to January 2023, Davis obtained approximately 50 checks that were stolen from USPS mail collection boxes in Charlotte. The defendant then fraudulently endorsed the stolen checks, used ATMs to deposit the checks into bank accounts he controlled, and quickly withdrew the funds via ATMs or mobile transfers before the victims or the bank discovered the checks were stolen. Through this scheme, Davis fraudulently obtained $304,355.56 in fraudulent proceeds.
U.S. v. Quadarius Thomas – On August 7, 2024, Quadarius Thomas, 30, of Charlotte, pleaded guilty to one count of possession of stolen mail, and two counts of possession of a firearm by a convicted felon. Court records show that, in December 2023, Thomas had in his possession a U.S. Treasury Check that had been mailed to a victim company. The check was in the amount of $2,463,923.52, and it had been stolen from a letter box or post office. Thomas also pleaded guilty to possession of a firearm by a felon. Court records show that Thomas possessed two firearms despite having prior criminal convictions that prohibit him from possessing firearms. Thomas is currently in federal custody and is awaiting sentencing.
U.S. v. Jessica Sowell – On August 5, 2024, Jessica Bailey Sowell, 31, of Charlotte, pleaded guilty to bank fraud, aggravated identity theft, and possession of a firearm by a convicted felon. Court records show that, from March 2023 to February 2024, Sowell executed an identity theft and bank fraud scheme using personal identifying information (PII) of identity theft victims. Sowell obtained the PII through various means, including stealing mail, from the internet, and other sources. Sowell used the stolen PII to create fraudulent identification documents which she used at banks, hotels, and retail stores in order to obtain money and merchandise, and to rent hotel rooms and cars. During that time, Sowell also illegally possessed a firearm. Sowell is currently detained. A sentencing hearing has not been set.
U.S. v. Douglas Gumbs – On August 1, 2024, Douglas Gumbs, 39, of Charlotte, was sentenced to 36 months in prison and three years of supervised release for bank fraud. Court records show that, from 2022 to 2023, Gumbs conspired with others to steal large quantities of U.S. mail from residential and business mailboxes. The stolen mail included business and individual checks, credit cards, tax forms, bank and other financial statements, packages, as well as victims’ PII. Gumbs carried out the fraud by altering the amounts of the stolen checks and changing the names of the payees to his own name, then cashing the stolen checks. In other instances, Gumbs obtained stolen blank checks and wrote the checks to himself. Gumbs also created false identification documents, including drivers’ licenses, that contained his picture with the names and drivers’ license numbers of identity theft victims, which he used in furtherance of the scheme.
U.S. v. Tressa Baucom, et al. – In July 2024, Jennings Peter Keziah, also known as Christian Thomas Carpenter, 37, of Stanley, N.C., was sentenced to 30 months in prison followed by two years of supervised release for conspiracy to possess stolen mail, for stealing thousands of pieces of mail in North Carolina and South Carolina. Keziah’s co-defendant, Tressa Nichole Baucom, 31, of Charlotte, has pleaded guilty to the same offense and is awaiting sentencing. According to court records, from October to December 2021, the defendants executed a mail theft scheme that targeted residential mailboxes in Charlotte and Gastonia, N.C., and York County, S.C. Over the course of the scheme, Baucom and Keziah allegedly stole more than 3,700 pieces of mail, including credit cards, checks, gift cards, driver’s licenses, bank statements and a passport. Court records show that the defendants used the stolen cards for personal expenditures, including to make purchases at Walmart, Academy Sports & Outdoors, Quick Trip, and Best Buy.
U.S. v. Nakedra Shannon, et. al. – Nakedra Shannon, 30, Donnell Gardner, 28, and Desiray Carter, 30, all of Charlotte, were indicted for a scheme involving stolen checks. In July 2024, Gardner was sentenced to 54 months in prison, after he pleaded guilty to conspiracy to commit financial institution fraud and theft of government money, property, or records. According to court records, Shannon, who was employed by the USPS as a mail processing clerk, stole incoming and outgoing checks from the U.S. mail, which Shannon, Gardner, and Carter then sold to other individuals. Over the course of the conspiracy, the defendants stole checks totaling more than $24 million, including more than $12 million in stolen checks which were posted for sale on the Telegram channel OG Glass House, and more than $8 million in stolen U.S. Treasury checks. Shannon and Carter have pleaded guilty to conspiracy to commit financial institution fraud and theft of government money, property, or records and are awaiting sentencing.
U.S. v. Montavius Hancock, et al. – In May 2024, a federal grand jury charged Montavius Hancock, 28, and Marquez Gaston, 28, both of Charlotte, with conspiracy to commit offense against the United States for theft of U.S. mail and unlawful possession of USPS universal keys, also known as “arrow keys,” amongst other charges. According to allegations in the indictment, Gaston used his position as a USPS employee to steal the arrow keys, which he then sold to other individuals, including to Hancock. Hancock and others used the arrow keys to steal U.S. mail, including checks and bank cards, from USPS mail receptacles. During the conspiracy, Hancock obtained checks with a face value of more than $400,000. Hancock pleaded guilty to conspiracy to commit offense against the United States and is awaiting sentencing. The charges against Gaston are pending.
U.S. v. Jakia McMorris – In April 2024, Jakia McMorris, 33, of Charlotte pleaded guilty to conspiracy to commit bank fraud for stealing more than $40,000 in checks, including checks stolen from the U.S. mail. According to court records, McMorris was a USPS employee. On or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris stopped reporting for work at the USPS. During the scheme, McMorris’s co-conspirators used the stolen universal USPS key to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks, which were deposited into various bank accounts, including in bank accounts in McMorris’s name. The co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. McMorris is released on bond and is awaiting sentencing.
U.S. v. Kyree Corbett – In February 2024, Kyree Jamayl Corbett, 23, of Charlotte, was sentenced to 78 months in prison, followed by two years of supervised release for conspiracy and robbery of property of the United States. Court records show that, in December 2021, Corbett participated in a robbery at gunpoint of a U.S. postal employee, using the threat of force to steal a USPS universal key. Corbett and his co-conspirators then used the key on multiple occasions to steal large quantities of mail from U.S. Postal collection boxes throughout the Charlotte area. Corbett and his co-conspirators would then open and remove the contents of the stolen mail, which included individual and business checks. David Miller, a co-conspirator in Corbett’s mail theft conspiracy, was sentenced to 14 months in prison in March 2023.
The U.S. Attorney’s Office advises the public to take the following steps to protect their mail and avoid becoming a victim of mail theft:
- Promptly Retrieve Mail: Collect your mail daily and avoid leaving it in the mailbox overnight.
- Secure Mailboxes: Use secure, lockable mailboxes for incoming and outgoing mail.
- Inquire About Overdue Mail: If you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Don’t Send Cash: Avoid mailing cash, gift cards, or other items of value. When doing, so utilize the package tracking and signature confirmation options.
- Hold Mail When Away: Use the USPS Hold Mail service when you are out of town.
- File a Change of Address: When moving, file a change of address with USPS.
- Report Suspicious Activity: Immediately report any suspicious individuals or activities near mailboxes to local law enforcement.
- Monitor Financial Statements: Regularly review bank and credit card statements for any unusual activity.
- Sign up for Informed Delivery and get daily digest emails that preview your mail and packages scheduled arriving soon.
Customers are encouraged to report stolen mail as soon as possible by submitting an online complaint to the Postal Inspection Service at www.uspis.gov/report or calling 877-876-2455.
Additionally, report the theft to your local police department to ensure they are aware of potential criminal activity in your area. Individuals are also encouraged to report allegations of Postal Service employee misconduct, including attempts to corrupt a Postal Service employee, to the USPS OIG at 1-888-877-7644 or www.uspsoig.gov.
Federal Inmate Arrested for Forcible Assault on Correctional Officers and Possession of ContrabandRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Muller Vedrine (33, Miami) on a two-count indictment charging him with assaulting, resisting, and impeding officers of the United States, and possession of contraband by a federal inmate. If convicted, Vedrine faces up to 14 years in federal prison.
According to court records, Vedrine is a federal inmate at the Coleman Federal Correctional Complex in Sumter County. On March 10, 2024, during a routine search of Vedrine’s cell, correctional officers observed Vedrine with a cellphone in his hand. When the officers ordered Vedrine to hand over the contraband phone, he instead punched a correctional officer in the chest and then began smashing the phone. Once the officers subdued Vedrine, they also discovered buprenorphine, a Schedule III controlled substance, hidden with the legal documents in his prison cell.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons (FBOP). The task force was led by the FBOP and the DOJ Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Deerfield Beach Man Sentenced to More Than 14 Years in Federal Prison for Armed Bank RobberyRead the Press Release
Orlando, FL – U.S. District Judge Anne Conway today sentenced Johnson Saint-Louis (39, Deerfield Beach) to 14 years and 3 months in federal prison for bank robbery and brandishing a firearm in furtherance of a crime of violence. The court also ordered Saint-Louis to forfeit a Ruger firearm and assorted ammunition, which were used during the commission of the offense. A jury had found Saint-Louis guilty on May 30, 2024.
According to testimony and evidence presented at trial, Saint-Louis was a former ATM technician who traveled around the southeast tampering with ATMs serviced by his former employer. On February 16, 2021, Saint-Louis robbed a bank in Longwood. Saint-Louis visited the location’s drive-thru ATM, manipulated the ATM in a way that caused it to malfunction, and then waited for the ATM technician to arrive. Once the technician arrived and opened the ATM and vault containing the cash, Saint-Louis, dressed in dark clothing and wearing a mask and gloves to conceal his identity, approached from a hole in the parking lot perimeter fence. Saint-Louis confronted the ATM technician with a firearm, forcing him to his knees to wait out the robbery, while Saint-Louis moved the cash from the vault cassettes into a backpack. In total, Saint-Louis stole approximately $135,530 from the ATM.
As part of the FBI’s investigation into the bank robberies, Saint-Louis was surveilled by deputies from Seminole County Sheriff’s Office. On November 4, 2021, deputies observed Saint-Louis traveling to various bank locations in Seminole County. Deputies eventually stopped Saint-Louis, and during that traffic stop, they observed that Saint-Louis had a firearm inside his car with black tape covering its serial numbers, as well as several pieces of paper listing bank branch locations in Jacksonville. The listed bank branches were annotated with whether the ATM at each location was manufactured by Saint-Louis’s former employer or by another company, along with other notes.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Tallahassee Police Department. It was prosecuted by Assistant United States Attorneys Rachel S. Lyons and Chauncey A. Bratt.
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.
Cottage Grove Felon Charged with Conspiracy to Distribute Methamphetamine, Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Cottage Grove man has been charged in a four-count indictment with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 16, 2024, law enforcement executed a search warrant at the residence of Jonathan Henry Valencour, 44, in Cottage Grove. Law enforcement seized approximately 84.4 kilograms of methamphetamine from a large trash can in the garage of the residence. Law enforcement also seized a firearm with an attached silencer. Because Valencour has prior felony convictions in Hennepin and Washington Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Valencour with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a felon. Valencour was arraigned yesterday in U.S. District Court before Magistrate Judge John F. Docherty. He has been ordered to remain in custody pending further proceedings.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Washington County Drug Task Force, and the Cottage Grove Police Department.
Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
WASHINGTON - A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to Federal Prison for Unlawful Possession of a FirearmRead the Press Release
COLUMBIA, S.C. — Leroy Antonio Belin, 31, of Columbia, was sentenced to more than eight years in federal prison after pleading guilty to being a felon in possession of a firearm and possession with intent to distribute a controlled substance.
Evidence presented to the court showed that on July 6, 2023, following a traffic stop, officers with the Columbia Police Department discovered Belin in possession of a loaded firearm, ammunition, marijuana, psilocybin mushrooms, ecstasy, and oxycodone. The firearm in Belin's possession was reported stolen from Charlotte, North Carolina. As a result of prior felony convictions, Belin was prohibited from possessing firearms.
Belin has previous convictions for attempted murder, discharging firearms into a dwelling, common law robbery, strong arm robbery, and two counts possession of a firearm or ammunition by a person convicted of a violent felony.
United States District Judge Mary Geiger-Lewis sentenced Belin to 100 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Ariyana Gore prosecuted the case.
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Columbia Man Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for illegally possessing firearms.
Shaune Aaron Price, 36, was sentenced by U.S. District Judge Brian C. Wimes to a total sentence of 10 years and 10 months in federal prison without parole.
On Nov. 7, 2023, Price pleaded guilty to two counts of being a felon in possession of a firearm.
A detective with the Jefferson City, Mo., Police Department recognized Price on March 23, 2022, and confirmed he had a warrant for his arrest. Officers stopped the bus Price was riding and arrested him. Price had a tan duffle bag that contained a loaded Glock 9mm semi-automatic handgun.
The ATF National Integrated Ballistic Information Network (“NIBIN”) conducted an analysis that linked the handgun to three separate events, including a shooting outside Gold Bar in downtown Columbia on Nov. 6, 2021, and a domestic assault on Jan. 1, 2022.
Investigators also found a video on Price’s cell phone that depicts him holding a Glock .40-caliber handgun on May 31, 2021. According to the government evidence, Price’s cell phone and Facebook records indicate he possessed at least 11 firearms. Investigators also discovered several messages in which Price bragged about being involved in “shoot-outs,” including one message about being involved in three “shoot-outs” in the past nine days.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Price has prior felony convictions for attempting to carry a concealed weapon and carrying a concealed weapon.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Colorado Man Sentenced for Cyberstalking Three Individuals in Hawaii and Obstructing JusticeRead the Press Release
A Colorado man was sentenced yesterday to eight years and one month in prison followed by three years of supervised release for cyberstalking and obstruction of justice offenses committed in Hawaii.
According to court documents, from May 2022 to August 2022, John B. Hart, 54, of Louisville, while living in Hawaii, engaged in a cyberstalking campaign to harass and intimidate his former girlfriend, Jane Doe 1; her former partner, John Doe 1; and her then-partner, John Doe 2. Hart frequently posed as John Doe 1 while targeting his other two victims, and also pretended to target himself in an attempt to deflect attention away from himself and falsely implicate John Doe 1. Hart hid his true identity by using multiple “burner apps” to generate dozens of fake phone numbers that he used to message his victims. Hart also falsely reported the conduct to local and federal law enforcement authorities and others, claiming that John Doe 1 was responsible and posed a genuine and serious threat to Hart and others. Two days after being questioned by federal agents, Hart deleted one of his personal e-mail accounts in an attempt to obstruct the ongoing investigation.
Hart pleaded guilty in April to three counts of cyberstalking and one count of obstruction of justice. In his plea agreement, Hart admitted to posing as John Doe 1 and committing acts directed at each of his three victims, including, among other things: (1) sending communications to Jane Doe 1 encouraging her to kill herself; (2) sending communications to Jane Doe 1, her family members, and her associates claiming that John Doe 2 was a human trafficker who may have kidnapped Jane Doe 1; (3) sending communications to Jane Doe 1’s family members, John Doe 2, and their associates that contained express or implied threats to kill, kidnap, rape, and otherwise injure Jane Doe 1; (4) creating online dating profiles in Jane Doe 1’s name, and sending messages causing multiple men to appear at Jane Doe 1’s workplace; (5) sending communications to John Doe 2 claiming to have sexual photos and videos of Jane Doe 1 and threatening to post them online and distribute them to her friends and family; and (6) spray-painting Jane Doe 1’s vehicle and placing metal spikes on the ground near her tires, while her vehicle was parked outside of her place of employment.
Hart has been detained since his August 2023 arrest in Colorado.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Clare E. Connors for the District of Hawaii, Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office, and Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Sara D. Ayabe and Aislinn Affinito for the District of Hawaii prosecuted the case.
Child Sex Predator Sentenced to 30 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Sean E. Karjala, 53, formerly of Red Bluff, was sentenced today by U.S. District Judge John A. Mendez to 30 years in prison and a life term of supervised release for production of child sexual abuse material, U.S. Attorney Phillip A. Talbert announced. Karjala’s federal sentence will be served concurrently with his state sentence of 36 years to life for the attempted murder of a California Highway Patrol Officer.
According to court documents, in 2013, Karjala engaged in a months-long inappropriate sexual relationship with a minor female victim after she answered an online Craigslist advertisement. Karjala repeatedly raped the minor victim and subjected her to bondage and other physical abuse. Karjala manipulated the victim into sexual activity with another female and took photos of the activity with his cellphone camera.
After Karjala communicated with an undercover police officer whom he believed was another minor female, investigators searched Karjala’s residence. During the search, investigators found multiple sexual bondage materials including a matching pink and white ankle and wrist cuff set and a collar that Karjala had described in conversations with the undercover officer. They also found clothing commonly associated with younger females and a photo of Karjala and the victim. In Karjala’s vehicle, investigators found a duffle bag containing a bondage manual, condoms, and a local high school counseling slip with the victim’s name. Investigators also located numerous images on Karjala’s cellphone of the victim engaged in sexual acts with another female.
This case was the product of an investigation by the Tehama County District Attorney's Office and the Federal Bureau of Investigation. Assistant U.S. Attorneys Heiko P. Coppola and Roger Yang prosecuted 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Chattanooga Man Sentenced to 60 Months in Prison for Defrauding Elderly Widow with Dementia of $1.2 MillionRead the Press Release
NASHVILLE – Karl Hampton, 65, of Chattanooga, Tennessee, was sentenced to 60 months in prison, followed by 3 years of supervised release, and ordered to pay over $1.2 million in restitution for executing a scheme to defraud an elderly widow who had dementia, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Hampton and his wife Deborah, both formerly of Franklin, Tennessee, were indicted in June 2021 on multiple counts of conspiracy and money laundering and Karl Hampton was also charged with eight counts of wire fraud. After a week-long jury trial in April 2023, Karl Hampton was convicted on all counts.
At trial, the evidence showed that Karl Hampton met the 86-year-old widow while he was working as an exterminator for a pest control company based in Nashville. Between January 2018 and February 2020, Karl Hampton tricked the woman into believing that he would care for her personally and financially. Hampton held himself out to the woman and others as her “personal representative,” her “son” or “godson,” and pretended that he was acting on her behalf. In April 2019, Hampton convinced her to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will. He then methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name, and amassed huge charges on her credit cards for his own personal expenses.
Some of the funds Hampton stole came from two investment accounts that belonged to the estate of the woman’s deceased sister. Those funds were supposed to be split between the woman and another individual. Instead, Hampton transferred the funds to himself.
In total, Hampton took more than $1.2 million. from the woman’s accounts in the form of checks, cashier’s checks, and bank transfers, cash withdrawals, and using the woman’s credit card for his own benefit. Hampton frequently purchased luxury items, including a car and a luxury SUV, and a 4.3-karat diamond ring that cost more than $21,000. Hampton often spent over $1,000 per day in cash buying lottery tickets.
Deborah Hampton pleaded guilty to one count of money laundering on February 13, 2023. She was sentenced to time served, 3 years of supervised release, and ordered to pay restitution in the amount of $21,000.
This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency. Assistant U.S. Attorney Kathryn Booth prosecuted the case.
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Canadian Man Pleads Guilty to $1.4 Million Embezzlement SchemeRead the Press Release
BOSTON – A Canadian man pleaded guilty today in federal district court in Boston to embezzling more than $1.4 million from his employer and its clients.
Adil Rahman, 36, of Ontario, Canada, pleaded guilty to one count of wire fraud before United States Senior District Judge William G. Young, who scheduled sentencing for Dec. 9, 2024. Rahman was charged in July 2024.
Rahman worked in Ontario, Canada as a credit analyst for Company A – a subsidiary of a large electrical distribution and services company based in Pittsburgh. As part of his job, Rahman interacted with clients of Company A concerning invoices for the company’s services. Between November 2022 and December 2023, Rahman directed certain customers of Company A to pay their invoices via ACH transfers to his personal bank account, rather than to the account of Company A.
For example, in or about November 2022, Rahman sent an email to the accounts payable department of Company B – a nonprofit municipal corporation based in Hartford, Conn. – asking if the company would be interested in paying future invoices to Company A by ACH transfer rather than by check. When Company B agreed to do so, Rahman provided his personal account information to Company B. Thereafter, under the false impression that it was sending the money to Company A to pay the invoices it owed, Company B sent at least 15 ACH transfers to Rahman’s personal account between December 2022 and June 2023.
Likewise, in May 2023, Rahman emailed the accounts payable department at Company C – a privately held provider of corporate security systems based in Andover, Mass. – asking if Company C wished to pay future invoices by ACH transfer. Once again, when Company C agreed to do so, Rahman provided his personal bank account information and Company C thereafter made 11 ACH transfers to Rahman’s personal account between May 2023 and July 2023.
In total, through this scheme, Rahman defrauded Company A and its clients of more than $1.4 million.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. 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 Investigations, Boston Division made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Bureau of Indian Affairs Officer Faces Federal Charges for Sexual AssaultRead the Press Release
Spokane, Washington - A Federal Grand Jury has returned an indictment charging Darren Bowannie, age 34, with Deprivation of Rights Under Color of Law. Bowannie made his first appearance in Federal Court on Monday, September 9, 2024.
Bowannie was employed by the Bureau of Indian Affairs as a lead correctional officer. According to the indictment, Bowannie transported individuals who were in the custody of the Spokane Tribe of Indians and Bureau of Indian Affairs to and from the Colville Tribal Correctional Facility in Nespelem, Washington.
The indictment alleges that on February 9, 2024, Bowannie, who was working as a correctional officer for the Bureau of Indian Affairs (BIA) at the time, was transporting an individual from Wellpinit, Washington to Nespelem, Washington. In his role as a correctional officer, Bowannie’s duties included prisoner transport to and from the BIA’s jail in Wellpinit. During the transport, Bowannie allegedly threatened and sexually assaulted the individual he was transporting. If convicted, Bowannie faces a sentence of up to life in prison and up to 5 years of supervised release.
“Our society places significant trust in law enforcement. Every day we rely on law enforcement officers who put themselves at risk to keep our communities safe and uphold their oath to protect and serve. When law enforcement fails to uphold this trust, my office will carefully investigate allegations of wrongdoing and seek justice to reestablish trust, protect victims, and to keep our communities safe and strong," said U.S. Attorney Vanessa Waldref.
The FBI is investigating the case. Assistant United States Attorney Michael J. Ellis and Tim M. Durkin are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brothers sentenced to prison for federal drug trafficking and firearms convictionsRead the Press Release
RICHMOND, Va. – A Hopewell man was sentenced today to four years and six months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, on Dec. 19, 2022, Virginia State Police (VSP) encountered Eric Michael Vaughan Jr., 32, in a Hopewell motel room when VSP executed a search warrant on the room. The room was rented by Vaughan’s brother, Quadir McKinnon, 34, of Hopewell, who previously sold 74.37 grams of cocaine, 4.43 grams of heroin, and 96.73 grams of methamphetamine to a confidential source. VSP recovered four firearms, 27.74 grams of cocaine, and 5.93 grams of a mixture containing heroin, cocaine, and fentanyl from the room.
On Jan. 18, 2023, VSP apprehended McKinnon during a traffic stop. Vaughan was in the vehicle with McKinnon. In plain view on the center console of the vehicle was a loaded 9mm handgun. When McKinnon stepped out of the vehicle, a backpack that had also been present in the motel room during the search warrant was tangled in his feet. Inside the backpack were 41.85 grams of cocaine and 6.99 grams of methamphetamine, a digital scale, baggies, and marijuana.
Under the front passenger seat, where Vaughan was sitting, was a loaded 9mm handgun and on the seat was a loose 9mm hollow-point round. In Vaughan’s pockets were .35 grams of a mixture of heroin, cocaine, and fentanyl and .76 grams of cocaine.
On July 16, 2012, Vaughan, armed with a sawed-off shotgun, and a co-defendant robbed individuals in a home in Petersburg. Vaughan was convicted of eleven felonies, including robbery, burglary, use of a firearm in commission of a felony, and abduction. Vaughan was sentenced to 13 years in prison. Less than two months after Vaughan was released from prison, Vaughan threw a firearm from the window of his vehicle as a VSP Trooper attempted to stop him for speeding. Vaughan was convicted of possession of a firearm by a felon, reckless driving, eluding police, and driving without a license. Vaughan was sentenced to two years and 8 months in prison. Vaughan was on pre-trial release for those charges when he was encountered in the motel room on Dec. 19, 2022, and when he was arrested with his brother on Jan. 18, 2023. As a previously convicted felon, Vaughan cannot legally possess a firearm or ammunition.
McKinnon pled guilty on Sept. 13, 2023, to possession with intent to distribute five grams or more of methamphetamine and possession with intent to distribute cocaine. On Jan. 31, McKinnon, a career offender, was sentenced to 14 years and seven months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after Vaughan was sentenced by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorney Jessica L. Wright prosecuted the cases. Former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, assisted in the prosecution of this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:23-cr-152 (Vaughan) and 3:23-cr-116 (McKinnon).
Brooklyn Park, Minnesota, Man Guilty of Distributing CocaineRead the Press Release
A man who conspired with others to distribute large quantities of cocaine that resulted in the death of a young Dubuque woman pled guilty today in federal court in Cedar Rapids.
Michael Samuel Knight, age 38, from Brooklyn Park, Minnesota, was convicted of one count of conspiracy to distribute 500 grams of more of cocaine within 1000 feet of several parks and schools in Dubuque, Iowa, between 2017 and April of 2021, that resulted in the death of a young Dubuque woman on February 14, 2021. Knight also pled guilty to personally distributing the cocaine on February 14, 2021, that caused the woman’s death.
At the plea hearing, Knight admitted he was a member of a conspiracy to distribute cocaine in the Dubuque area near numerous parks and schools. He admitted getting cocaine from the individual who brought it from Chicago, and then worked with others to distribute the cocaine to customers in Dubuque. On February 14, 2021, Knight distributed cocaine to a young woman in Dubuque who went home, used the cocaine and died.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Knight remains in custody of the United States Marshal pending sentencing. Knight faces a mandatory minimum sentence of 20 years imprisonment and a possible maximum sentence of life imprisonment, a $6,000,000 fine, and up to life on supervised release following any imprisonment. Knight will also be required to pay restitution to the family of the young woman who died using the cocaine distributed by him.
The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Nicole Nagin and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department
of Justice through a cooperative effort of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Medical Examiner’s Office and the Dubuque Drug Task Force, comprised of Dubuque Police Department, Dubuque Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-01013.
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Boston Physician Resolves Allegations of Improper Prescribing Practices Involving Controlled SubstancesRead the Press Release
BOSTON – A physician who practiced at Brigham and Women’s Hospital has agreed to pay $25,000 in civil penalties to settle allegations that he violated the Controlled Substances Act by prescribing opioid controlled substances outside the usual course of professional practice.
As part of the settlement agreement, Dr. Edgar Ross, 70, Boston, admitted that, for one patient, he prescribed a mix of controlled substances, including opioids, without always appropriately documenting the risks. Ross also provided early refills in response to the patient’s requests. After multiple hospitalizations and an overdose, the hospital arranged for another physician to take over Ross’s treatment of the patient.
As part of the settlement, Ross entered into a Memorandum of Agreement with the DEA that requires him to work with an independent compliance monitor for three years.
“Safe prescribing of drugs—particularly opioids—is essential to patient and public safety and a priority for our office,” said Acting United States Attorney Joshua S. Levy. “This settlement is an example of how our office and the DEA work to ensure that doctors prescribe dangerous medications only when they are acting within the scope of proper professional practice and with appropriate safeguards in place to prevent and address abuse. We will continue to work with our partners at the DEA to protect patients and enforce the Controlled Substances Act.”
“DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substances Act,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
Under the Controlled Substances Act, physicians and other prescribers registered with the Drug Enforcement Administration (the DEA) may only issue prescriptions for a legitimate medical purpose and in the usual course of professional practice.
Acting United States Attorney Levy and DEA ASAC Belleau made the announcement today. Assistant U.S. Attorney Alexandra Brazier of the Affirmative Civil Enforcement Unit handled the case.
Behavioral Healthcare Company Executive Charged with Healthcare FraudRead the Press Release
BOSTON – The Chief Executive Officer of Dana Group Associates, who is also the former Chief Operating Officer of Prime Behavioral Health, was charged today in connection with a scheme to defraud health care benefit programs by directing false billing for patient visits.
Miguel Saravia, 42, was charged and has agreed to plead guilty to six counts of health care fraud. A plea hearing date has not been set.
According to the charging documents, from approximately 2017 to 2022, Saravia directed a group of individuals with no billing or medical training to enter Current Procedural Terminology codes (CPT) for therapy services that were not provided and to upcode CPT codes used for psychotherapy visits. It is further alleged that Saravia submitted, or directed the submission of, false claims for treatment that was not provided or for more complex and expensive treatment than was provided.The charge of health care fraud carries a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000, or twice the gross gain or loss from the offense. 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 U.S. Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Insurance Fraud Bureau Executive Director Anthony DiPaolo; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Kelly B. Lawrence and Mackenzie A. Queenin of the Health Care Fraud Unit and Lindsey Ross and Steven Sharobem of the Affirmative Civil Enforcement Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Arizona Man and Co-Defendants Facing Federal Charges for Roles in $178 Million COVID-19 Fraud ConspiracyRead the Press Release
PORTLAND, Ore.—A federal superseding indictment was unsealed Monday in the District of Oregon charging an Arizona man and three associates for conspiring with one another and others to devise and carry out a scheme that attempted to defraud the U.S. Small Business Administration out of at least $178 million in loans intended to help small businesses during the COVID-19 pandemic.
Eric Karnezis, 43, of Sedona, Arizona, is charged in the 23-count superseding indictment with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, along with co-defendants Lynisha Wells, 47, and Nikkia Bennett, 43, both of Chula Vista, California, and Fredrico Williams, 48, of San Diego.
According to the superseding indictment, from January 2021 and continuing until at least March 2022, Karnezis carried out a scheme whereby he conspired with recruiters, including Williams, to gather fraudulent business information from customers, including Wells and Bennett, and used the information to submit fraudulent Paycheck Protection Program (PPP) loan applications to the U.S. Small Business Administration (SBA). To facilitate the scheme, Karnezis and his co-conspirators created fictious documents to support their fraudulent loan applications, including false payroll information and tax documents.
In total, Karnezis submitted or caused to be submitted at least 1,300 PPP applications, which together attempted to obtain at least $178 million from SBA. Approximately $105 million in loans were funded in response to these fraudulent applications.
On September 6, 2024, following his arrest in Sedona the day prior, Karnezis made his initial appearance in federal court in the District of Arizona and pleaded not guilty. In a detention hearing held today, Karnezis was released on conditions pending his arraignment in District of Oregon on September 24, 2024.
Bennett and Wells made their first appearances and were arraigned in the District of Oregon on August 23 and August 29, 2024, respectively. Both were released on conditions pending a three-day jury trial scheduled to begin on February 11, 2025. Williams will be arraigned in the District of Oregon on September 20, 2024.
Conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering are punishable by up to 20 years in federal prison, three years’ supervised release, and fines of up to $250,000 or twice the gross gains or losses resulting from the offense.
This case was investigated by the SBA Office of Inspector General (SBA-OIG), IRS Criminal Investigation (IRS:CI), the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Naval Criminal Investigative Service (NCIS). It is being prosecuted by Meredith Bateman and Robert Trisotto, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Since January 2021, more than 50 people have been charged in the District of Oregon for their roles in fraud schemes targeting federal COVID-19 relief programs. Together, these defendants attempted to steal more than $903 million in federal funds. 38 individuals have been convicted for their crimes and sentenced to a combined total of 631 months in federal prison and 1,194 months of probation and/or supervised release.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
9 September 2024
Virginia Woman Sentenced for Role in Drug Trafficking OperationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Hailey Lynn Oliff, 28, of Mount Jackson, Virginia, was sentenced today to 66 months in federal prison for her role in a drug trafficking operation in Berkeley, Hampshire, and Morgan Counties.
According to court documents and statements made in court, Oliff was one of the distributors of the organization, selling methamphetamine, fentanyl, cocaine hydrochloride, and cocaine base.
Oliff will be on three years of supervised release following her prison sentence.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Hampshire County Sheriff’s Office, the Mineral County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Berkeley County and Hampshire County Prosecuting Attorney’s Offices assisted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Gina M. Groh presided.
Press release on original indictment: www.justice.gov/usao-ndwv/pr/twenty-six-charged-eastern-panhandle-drug-trafficking-indictment
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U.S. Attorney Josh Hurwit to Co-Sponsor “United Against Hate” Summit in MoscowRead the Press Release
COEUR D’ALENE – U.S. Attorney Josh Hurwit, the Latah County Human Rights Task Force, the Nez Perce Tribe, the Moscow Human Rights Commission, DOJ Community Relations Service, and the FBI, are convening a United Against Hate summit on September 16 at The 1912 Center in Moscow. The event is free and is open to the public.
United Against Hate is an initiative launched by the Department of Justice focused on improving efforts to combat hate crimes and hate incidents through relationship building at the local level. Through this endeavor, the U.S. Attorney’s Office seeks to create and strengthen trust and partnerships among law enforcement, community leaders, and residents. Well‑attended summits have already been held in Coeur d’Alene, Caldwell, Boise, Ketchum, Pocatello, and Sandpoint.
“The United Against Hate initiative continues to resonate and be a priority for our office because Idaho continues to grapple with unlawful hate,” said U.S. Attorney Hurwit. “We are committed to empowering Idahoans to recognize and report hate crimes so that we can enforce the law and work toward communities where everyone enjoys the protections of our Constitution without fear of being targeted by bigotry and hate.”
The September 16 event will include remarks from local leaders, presentations from prosecutors about hate crimes laws and reporting mechanisms, and speakers who will share their visions of safety and peace in their community and region.
“It is very exciting for Moscow to host this unique and timely event with such a wide representation of presenters including a panel giving the local perspective on providing a safe and welcoming environment,” said Joann Muneta, Chair of the Latah County Human Rights Task Force
“Our commitment to promoting human rights and combating hate is stronger than ever,” said Erin Agidius, Moscow Human Rights Commission Chair. “This summit represents an opportunity for us to come together as a community, share our experiences, and build lasting partnerships that stand against hate and bigotry. We are honored to collaborate with our co-sponsors to advance this vital cause. It is our collective responsibility to ensure that all members of our community feel safe, valued, and heard. By coming together, we can foster a culture of respect and understanding, making it clear that hate has no place in Moscow or anywhere else.”
“Hate and bigotry can only flourish if it is ignored or goes unopposed,” said Shannon F. Wheeler, Chairman, Nez Perce Tribal Executive Committee. “Working with and getting to know our neighbors is the most effective way to actively push back on hate and prevent it from gaining a foothold in this region. The Nez Perce Tribe has called this area home for thousands of years. As its first inhabitants, we consider these lands sacred and, we are proud to be a partner in the United Against Hate campaign. We will continue to work together with all who are willing to make this region a home for everyone.”
“I look forward to meeting community members and hearing different perspectives on how we can work together to unite our community in standing up to hate,” said U.S. Attorney Hurwit. “And I am deeply honored to partner with our co-sponsors to prioritize this critical mission.”
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Two Baltimore Men Sentenced to 9 Years and 15 Years, Respectively, in Federal Prison, Relating to Three Armed CarjackingsRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Franklin Jay Smith, age 34, of Catonsville, Maryland, to 9 years (48 months for carjacking and 60 months consecutive for use of a firearm in connection with a crime of violence) and 4 years supervised release, and Davon Tramont Dorsey, age 30, of Gwynn Oak, Maryland, to15 years and 3 years supervised release.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; Chief Robert McCullough of the Baltimore County Police Department; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Alison M. Healey.
According to Smith’s and Dorsey’s guilty pleas and evidence introduced at the trial of two codefendants earlier this year, between May and August 2021, the conspirators planned and organized the kidnapping of three victims, J.H. and two employees of check cashing businesses, victims A.T. and A.K. The conspirators carjacked and abducted the victims and used force and threats of force to steal cash. Posing as police officers, using police vests, badges, and a law enforcement-type light bar, the conspirators stopped the victims and/or their vehicles, and brandished firearms and a blow torch during the kidnappings. The three incidents occurred on May 5, 2021, May 15, 2021, and August 2, 2021. Smith admitted that he participated in the two incidents in May, and Dorsey admitted that he participated in the May 15, 2021, incident and the August 2, 2021, incident.
As detailed in Smith’s plea agreement and evidence introduced at the trial of two codefendants earlier this year, on May 5, 2021, two of the conspirators followed victim A.T. from the check cashing business where she worked, driving a Ford Fusion supplied by Smith. Smith set up a detour along the route to cause A.T. to turn down a side street where the two conspirators driving the Ford Fusion posed as police and used a law enforcement-type light bar to pull over A.T.’s vehicle. Wearing police vests and badges, the conspirators brandished firearms to remove A.T. from her vehicle, handcuffed her, placed her into the rear of one of their vehicles, blindfolded her, and stole her vehicle. While driving with victim A.T., the conspirators burned victim A.T. with the blow torch in an attempt to get information from A.T. in order to access the check cashing business where she worked, with the intent to remove all the cash from the business. Smith and the other conspirators later placed A.T. back in the rear of her vehicle, still bound, covered the vehicle with a tarp, and left A.T. to make her way out and call for help.
Smith and Dorsey both admitted that on May 15, 2021, while driving a Ford Fusion with police-style lights, Dorsey and other members of the conspiracy drove to Edgewood, Maryland to abduct and rob J.H. Dorsey and the others were wearing police-style vests with “police” written on them, masks, and gloves. Around midnight on May 15-16, 2021, J.H. left Edgewood, driving a 2022 Toyota Camry. The members of the conspiracy used the police-style lights to stop J.H.’s vehicle. Dorsey and the conspirators, armed with firearms, approached J.H.’s car and identified themselves as police. The conspirators told J.H. that he had an outstanding warrant, and that he was under arrest. The conspirators put J.H. in handcuffs, put duct tape over his eyes and mouth, bound his feet, and put him in the back of their vehicle. J.H. was then driven away in the Ford Fusion with two of the conspirators while two other members of the conspiracy followed in J.H.’s Camry. While J.H. was in the Ford Fusion, the conspirators demanded $10,000, told J.H. that they knew where he lived and that they would kill his parents if he did not cooperate.
At the time J.H. was abducted, Smith was in the White Marsh area of Baltimore County, within minutes of an onramp to Interstate 95, awaiting a call from a conspirator notifying him that J.H. had been abducted. As the Ford Fusion traveled south on Interstate 95, Smith received a call from a coconspirator, and then drove in a separate vehicle and met up with the Ford Fusion, J.H. and other conspirators in Baltimore City. While in the Ford Fusion, one of the conspirators questioned J.H. about money, and used a blow torch to burn his chest when he did not answer questions. The conspirators took J.H.’s necklace, wallet, phone, and car keys. After more than 5 hours of driving and demanding money, the conspirators released J.H. in Baltimore City at approximately 5:20 a.m.
Dorsey also admitted that on August 2, 2021, he and two co-conspirators approached victim A.K. as she left the check cashing business where she worked. The conspirators, wearing police vests and badges, brandished firearms to kidnap victim A.K. and placed her into the rear of one of their vehicles equipped with law enforcement-type lights. The driver was holding a blowtorch with a blue fuel canister, and A.K. observed a bottle of bleach on the floor in the back of the car. After A.K. entered the vehicle, the men bound A.K.’s wrists behind her back with zip-ties and used black duct tape to affix a blindfold over her eyes. One of the men stated to A.K., “We don’t burn sisters.”
According to Dorsey’s guilty plea, while in the vehicle, the men took A.K.’s wallet, phone, and keys, which included the keys to the check cashing business. The men demanded that A.K. provide access to the check cashing business, including demanding the A.K. provide the men with access codes, safe codes, and the amount of money in the safe at the business. The men demanded information from A.K. for nearly 6 hours, then released A.K. in Edmonson Village in Baltimore City at approximately 1:00 a.m. Before they drove away, the men instructed A.K. not to remove her face covering until they had driven away.
In June, a federal jury convicted two codefendants of their roles in the abductions. Dennis Allen Hairston, age 34, of Windsor Mill, Maryland, and Donte Davon Stanley, age 33, of Rosedale, Maryland, were convicted on federal charges of kidnapping and robbery conspiracies; kidnapping; carjacking; robbery affecting commerce. Hairston was also convicted of using, carrying, and brandishing a firearm during and in relation to a crime of violence. District Judge Brendan A. Hurson has scheduled sentencing for Stanley for November 4, 2024, at 10:00 a.m. and Hairston for November 7, 2024, at 10:00 a.m.
This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Barron commended the FBI, the Baltimore Police Department, the Baltimore County Police Department, the Harford County Sheriff’s Office, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Assistant U.S. Attorneys Paul E. Budlow and Spencer Todd of the Civil Rights and Special Victims Section are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
Three Individuals Sentenced for Child Neglect, Endangerment on the Red Lake ReservationRead the Press Release
MINNEAPOLIS – Three individuals living on the Red Lake Indian Reservation have been sentenced for felony child neglect and felony child endangerment, announced United States Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, between February 2022 and January 2023, Robin John Roy, 55, Nicole Robyn Roy, 29, and Harrison Edwin Dudley Sr., 36, willfully deprived minor victims of necessary food, health care, and supervision despite their reasonable ability to make the necessary provisions, resulting in substantial harm to the minor victims’ physical, mental, and emotional health. Trial evidence established that one of the minor victims suffered from severe anemia as a result of malnourishment, and despite repeat efforts by health care providers to intervene in the child’s condition, the child nearly died as a result of the defendants’ collective failure to provide needed care. Trial evidence also established that both children suffered from prolonged lice infestations that progressed to life-threatening scalp infections.
On February 16, 2024, following a six-day trial before U.S. District Judge Nancy E. Brasel, all three defendants were found guilty of felony child neglect. Nicole Roy and Dudley were also found guilty of felony child endangerment. All three defendants were sentenced on September 5, 2024, by Judge Brasel. Robin Roy received 24 months of probation, Nicole Roy received 12 months and a day in prison followed by three years of supervised release, and Dudley received four months in prison.
In handing down the sentences, Judge Brasel stated she had balanced the relative culpability and the relative nature and circumstances of each defendant. She emphasized that the neglect the children had suffered was “no less serious than an act of assault” because “the injuries that resulted were certainly life threatening,” the neglect went on for a long time, there were “relatively easy” steps the caretakers could have taken, and the caretakers nonetheless willfully failed to take action for the children’s basic needs. Judge Brasel remarked, “The children in this case, and all of the children like them, deserve better.”
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker prosecuted the case.
Three Council Bluffs Individuals Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
COUNCIL BLUFFS, Iowa – Three individuals from Council Bluffs were sentenced to federal prison for conspiracy to distribute methamphetamine:
- George Ormond Rolle, Jr., 51, was sentenced on August 28, 2024, to 210 months in federal prison;
- Joseph Robert Winger, 34, was sentenced on February 23, 2024, to 140 months in federal prison; and
- Linda Clover Winger, 41, was sentenced on April 25, 2024, to 78 months in federal prison.
According to public court documents, Rolle, Joseph Winger, and Linda Winger conspired with each other to distribute methamphetamine in the Council Bluffs metro area in 2023. In July 2023, law enforcement officers received information on a package, containing methamphetamine, that was addressed to a residence in Council Bluffs. Law enforcement officers seized the package and conducted a controlled delivery of the seized package. Rolle and Linda Winger attempted to retrieve the package from the residence and were subsequently taken into custody. Their vehicle was searched and had approximately 76 grams of methamphetamine, drug paraphernalia, drug ledgers, and more than $4700. Phone messages confirmed the group was working together to pool their money to buy the methamphetamine for distribution in the Council Bluffs metro area.
After completing their term of imprisonment, each individual 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 Southwest Iowa Narcotics Task Force.
Supervisor and Employee of City of Trenton Bureau of Environmental Health Charged with Receiving Illegal Overtime PaymentsRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man and a Mercer County, New Jersey, man made their initial court appearances today on charges of participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections and meal deliveries to needy Trenton residents, U.S. Attorney Philip R. Sellinger announced.
Martin Moore, 59, of Florence, New Jersey, and Andre Trott, 51, of Ewing, New Jersey, are each charged by complaint with conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the city of Trenton. Moore is also charged with making false statements to investigators. They appeared before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were each released on $50,000 unsecured bond.
According to the documents filed in this case and statements made in court:
Trenton’s Department of Health and Human Services (Trenton HHS) is required to provide services to identify lead sources in residential homes in Trenton where children had tested positive for elevated levels of lead in their blood. Beginning in 2018, a New Jersey state grant funded inspections of Trenton properties identified with childhood residents with elevated blood lead levels. Trenton’s Bureau of Environmental Health (BEH), a subdivision of Trenton HHS, was responsible for performing these residential lead inspections.
Trenton received federal funding from the U.S. Department of Housing and Urban Development under a Community Development Block Grant (CDBG) to provide public services, including a meal program to prepare and deliver meals throughout Trenton to the city’s most vulnerable and needy populations. Members of BEH delivered meals under the CDBG from 2020 to 2021.
Moore, a principal registered environmental health specialist for BEH and the entity’s supervisor, and Trott, a senior registered environmental health specialist for BEH, conducted residential lead inspections with other members of BEH from February 2018 through May 2022, and delivered meals with other members of BEH from April 2020 through May 2021. Moore directed members of BEH, including conspirators Trott, Michael Ingram, William Kreiss, and Meraj Fatima, to obtain payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked relating to residential lead inspections. Moore also directed Trott, Ingram and Kreiss to inflate their overtime hours submitted for meal deliveries. Moore, himself, also falsely reported overtime exceeding the time it actually took him to complete activities related to lead inspections and meal deliveries. As a result of these fraudulent overtime reports, Moore, Trott, and other members of BEH were paid for overtime work that they did not perform.
In May 2022, when the FBI asked Moore about his role in connection with lead inspections, Moore falsely stated that there was no situation where he had purposedly misrepresented his hours and no situation where he had claimed overtime hours for periods of time that he was outside of New Jersey, even though Moore knew at the time he made these statements that they were knowingly and intentionally false.
Moore faces a maximum penalty of 10 years in prison and maximum fine of $500,000. Trott faces a maximum penalty of five years in prison and a $250,000 fine.
Ingram and Kreiss pleaded guilty on Nov. 28, 2023, and Fatima pleaded guilty on Feb. 26, 2024, to separate informations charging each with one count of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the City of Trenton. They are awaiting sentencing.
U.S. Attorney Sellinger credited agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Environmental Protection Agency Office of Inspector General, under the direction of Acting Assistant Inspector General Nicolas L. Evans; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office.
The charges and allegations contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
mooretrott.complaint.pdfSt. Louis Man Admits Operating Long-Running Ponzi SchemeRead the Press Release
ST. LOUIS – A St. Louis, Missouri man on Monday admitted operating a Ponzi scheme for almost a decade that raised $350,000.
Robert F. Rothluebbers, 68, pleaded guilty in U.S. District Court in St. Louis to one count of wire fraud, admitting that he operated the scheme from October 2014 through January 2024. Rothluebbers solicited investments by falsely claiming that he would use their money to purchase R-22 refrigerant in bulk, at a discount, and then re-sell the refrigerant to contractors and others at a 50% profit. Rothluebbers claimed that the gradual phaseout of R-22 would enable him to increase investors’ profits.
Rothluebbers solicited investors from October 2014 to May 2017, entering into written purchase agreements in which he agreed to the purchase of specified amounts of R-22 at certain prices, and a minimum resale price. But Rothluebbers admitted using investors’ money to pay earlier investors, pay relatives or for personal purchases.
Rothluebbers provided bogus excuses for failing to pay investors, including a claim that the money had been frozen by his financial institution and the Internal Revenue Service.
Rothluebbers admitted raising at least $350,000 from four investors. He admitted paying Ponzi scheme payments of $171,450, mostly after investors discovered his scheme.
Rothluebbers is scheduled to be sentenced on December 12. Wire fraud is punishable by up to 20 years in prison, a $250,000 fine or both prison and fine.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Roslindale Man Sentenced to Five Years in Prison for Firearm OffenseRead the Press Release
BOSTON – A Heath Street Gang member/associate involved in a shooting in residential neighborhood was sentenced on Sept. 6, 2024 in federal court in Boston for unlawfully possessing a firearm.
Deondre Blanding, 27, of Roslindale, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years in prison to be followed by four years of supervised release. In May 2024, Blanding pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
Blanding was charged and arrested in February 2024, along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms and financial fraud charges. Blanding was a marijuana dealer for the Gang who distributed pound-quantity amounts of marijuana.
On Oct. 8, 2023, Blanding arranged to buy three pounds of marijuana from an individual and arrived at the deal armed with a firearm. The arranged drug deal resulted in a shooting in the middle of a Randolph neighborhood involving Blanding and two other individuals.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Randolph Police Department. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Readout of the Justice Department’s Violent Crime Reduction Steering Committee MeetingRead the Press Release
The Justice Department’s Violent Crime Reduction Steering Committee met last week to discuss the efforts, challenges, and successes in reducing violent crime — as well as how the Department can further the steady, continued decline in violent crime in 2024. The Steering Committee is chaired by Principal Associate Deputy Attorney General (PADAG) Marshall Miller and composed of leadership and representatives from across the Department.
After PADAG Miller called the meeting to order, the Committee was briefed on the latest violent-crime statistics. Preliminary data from 88 cities showed that violent crime has continued to decline considerably in 2024, including a 16.9% decline in murder, a 7.5% decrease in rape, a 3.4% decrease in aggravated assault, and a 5.2% decline in robbery.
The Committee received updates from U.S. Attorney Andrew Luger for the District of Minnesota on the various initiatives employed by members of the U.S. Attorney community to crack down in violent crime during the summer months, when violent crime historically surges. These initiatives, employed by U.S. Attorneys’ Offices across the country, included such efforts as: increased outreach and intervention activities; weekly, data-driven coordination with local law enforcement to identify shooters and other drivers of violent crime for federal prosecution; surges in federal firearms prosecutions; increased focus on prosecution for possession or use of machinegun conversion devices, which convert semi-automatic firearms into fully automatic machineguns; launch and implementation of carjacking task forces; and partnerships with the Department’s Criminal Division to bring prosecutions under the Racketeer Influenced and Corrupt Organizations Act. Early data showed successful outcomes from initiatives that included, for example, further year-over-year reductions in homicides in Detroit and a zeroing out of carjackings in the Eastern District of Texas during the summer months of 2024.
The Committee was briefed by the Drug Enforcement Administration and the U.S. Marshals Service on their efforts and successes in combating violent crime over the summer through Operation Overdrive and Operation North Star, respectively, and from the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding the Department’s convening with the additive manufacturing industry on how to reduce the availability and use of unlawful machinegun conversion devices, which was held Friday and included remarks from the Deputy Attorney General.
The Committee also heard from the Department’s grantmaking components regarding grants and additional resources to combat violent crime. The Office of Justice Programs discussed its use of grants, training, and technical assistance to assist state, local, and Tribal justice agencies in addressing their communities’ specific public safety needs. After previewing plans to observe the upcoming 30th anniversary of the Violence against Women Act, the Office of Violence Against Women briefed the Committee on its work at the intersection of firearms and domestic violence and on an important resource for prosecutors, the Framework for Prosecutors to Strengthen Our National Response to Sexual Assault & Domestic Violence Involving Adult Victims. The Department’s Community Oriented Policing Services discussed additional grants and resources available for combatting violent crime, including the award of grants to local law enforcement to hire career law enforcement officers.
At the conclusion of the meeting, Principal Associate Deputy Attorney General Miller discussed a new directive from the Deputy Attorney General on combating machinegun conversion devices. He also indicated that the Steering Committee’s work would be reported to Department leadership, including developments from the Department’s violent crime reduction initiatives and recommendations regarding additional policy and enforcement strategies.
Pierce County man sentenced to seven years in prison for drug and gun crimesRead the Press Release
Seattle – A 46-year-old Pierce County man was sentenced last week in U.S. District Court in Seattle to seven years in prison for his repeated drug trafficking and firearms possession, announced U.S. Attorney Tessa M. Gorman. Ryan James Townsend was indicted in November 2023, after two encounters with law enforcement. At the sentencing hearing U.S. District Judge Robert S. Lasnik imposed four years of supervised release to follow sentencing.
According to records filed in the case, Townsend was investigated by law enforcement in November 2022, for an incident where he fired multiple shots into the air outside a Planet Fitness gym on East 72nd Street in Tacoma. Witnesses and surveillance video showed Townsend in a white Escalade firing a handgun into the air. Townsend was later located in the car at a gas station, passed out behind the wheel. A 9mm handgun was found in the car. Townsend was prohibited from possessing firearms due to prior convictions.
About nine months later, in August 2023, a Puyallup Police Officer attempted to stop Townsend as he was driving in a different car with no license plates. Townsend fled in the car, hitting and damaging another vehicle, and injuring the driver. Ultimately Townsend crashed his car. He attempted to run from the police who responded to the crash site.
A court authorized search of the car revealed methamphetamine as well as a handgun in the glove box. When a search warrant was served on Townsend’s residence, agents seize fentanyl pills, heroin, and three firearms.
In June 2024, Townsend pleaded guilty to possession of a controlled substance with intent to distribute and two counts of unlawful possession of a firearm. Both prosecutors and defense recommended a sentence of 84 months in prison.
In asking for the seven-year sentence, Assistant United States Attorney Casey Conzatti wrote to the court, “On a number of occasions Mr. Townsend continued to possess firearms knowing he was not allowed to. On one occasion Mr. Townsend was observed shooting a gun into the air putting civilians in danger. Following the arrest for this conduct, Mr. Townsend did not stop his criminal behavior. Less than a year later, Mr. Townsend was found with a second firearm, and this time he had drugs with him.”
The case was investigated by the Drug Enforcement Administration (DEA), and the Puyallup and Tacoma Police Departments.
The case was prosecuted by Assistant United States Attorney Casey Conzatti.
Philadelphia Man Who Scarred, Nearly Blinded Ex-Girlfriend in Public Chemical Attack Convicted at TrialRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Victor Ortiz, 47, of Philadelphia, Pennsylvania, was convicted Friday at trial of stalking, seriously injuring, and permanently disfiguring a woman with whom he had a previous relationship.
On the morning of May 4, 2022, the defendant had pursued his ex-girlfriend as she walked to her office in Philadelphia. Before she reached the building, the defendant threw soda ash, a caustic substance, on the victim’s face and torso. His attack temporarily blinded her in the left eye and caused severe pain and permanent scarring on her body.
Investigators subsequently found that the defendant had attached a GPS device to the victim’s vehicle so that he could monitor her location and follow her. After law enforcement officials discovered the device, the defendant was caught on camera attempting to install a second GPS device on the victim’s vehicle in July 2022.
The defendant is scheduled to be sentenced on December 17 and faces a maximum possible sentence of 20 years’ incarceration.
“Victor Ortiz needed to take ‘no’ for answer,” said U.S. Attorney Romero. “But rather than moving on when a relationship ended, he targeted, stalked, and viciously assaulted his ex-partner, causing horrendous physical pain and emotional trauma. My office will continue to work with our law enforcement colleagues to get justice for stalking victims and take the dangerous offenders who terrorized them off the street.”
“HSI is dedicated to protecting individuals from dangerous predators such as Victor Ortiz,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “Our excellent partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania allows us to hold these criminals responsible for their crimes and obtain justice for their victims.”
The case was investigated by Homeland Security Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorneys Michael R. Miller and Angella Middleton.
Philadelphia Man Sentenced to 21 Years in Prison for Series of Armed Carjackings Targeting ElderlyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Alex Askew, 20, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Timothy J. Savage to 21 years’ imprisonment, three years of supervised release, restitution of $36,183.61, and an $800 assessment in connection with a series of armed carjackings targeting mainly elderly victims in Philadelphia and Upper Darby in September of 2022.
Askew was charged by superseding indictment in April of 2023, and on February 21, 2024, he pleaded guilty to one count of conspiracy to commit carjacking, three counts of carjacking, three counts of using a firearm in relation to a crime of violence, and one count of attempted carjacking.
The defendant and others committed three carjackings and one attempted carjacking, all with firearms, during the course of the conspiracy that took place between September 6, 2022, and September 12, 2022. The incidents detailed are as follows:
- On September 6, 2022, in the afternoon, Askew and two others committed two carjackings within minutes of one another and blocks away. In the first carjacking, Askew was one of three people to brandish a firearm at three victims aged 60 to 80 years old parking their vehicle on the 800 block of North 26th Street in Philadelphia. In the course of stealing their Mitsubishi SUV, Askew and others threatened to kill them. The same group used the stolen Mitsubishi to drive to the 2600 block of Brown Street minutes later where they pointed a black firearm at a woman parking her Kia Sportage. They demanded her keys before fleeing in both stolen cars.
- The next day in the evening, on September 7, 2022, Askew and others threatened a 66-year-old woman at gunpoint in the course of stealing her Acura SUV. The victim had just parked in front of her home on Wilde Avenue in Upper Darby late at night when a male with a firearm pointed a gun at her and demanded her keys. The offenders stole the victim’s purse and fled in her vehicle.
- In the late afternoon of September 11, 2022, Askew and others threatened a 71-year-old woman at gunpoint as she parked in the alleyway behind her home on Brunswick Avenue in Upper Darby. Askew and another male demanded the keys but fled the scene without her vehicle when the victim screamed and ran towards her home.
“Alex Askew is 20 years old and was just sentenced to 21 years in prison,” said U.S. Attorney Romero. “Anyone who’s out there committing carjackings, or even contemplating it, needs to think long and hard about whether stealing a car for a few hours or days is worth spending decades of your life behind bars. The public shouldn’t have to fear being ambushed by armed criminals every time they get in or out of their car. That’s why we and our law enforcement partners are committed to prosecuting these violent crimes and why they carry such significant sentences.”
“Carjacking is a serious and dangerous crime, and as this case shows, even a youthful offender like Askew can be sentenced to serious federal prison time for carjacking,” said Eric DeGree, Special Agent in Charge of ATF’s Philadelphia Field Office. “The fact that the defendant and accomplices targeted vulnerable elderly community members makes their crime spree even more reprehensible. Preventing and prosecuting carjacking remains a high priority, and as in this case, we will work with our partners in the Philadelphia Carjacking Task Force to track down the perpetrators across jurisdictions, whenever and wherever they act.”
“I want to thank U.S. Attorney Romero for her collaborative efforts to hold violent criminals accountable by bringing them to justice.” said Delaware County District Attorney Jack Stollsteimer. “In Delaware County, our Project Safe Neighborhoods partnership is a force multiplier for the men and women of law enforcement working courageously every day to keep our communities safe.”
“We will not tolerate violent crime in our community,” said Upper Darby Police Superintendent Timothy Bernhardt. “Alex Askew’s actions were not only dangerous but unacceptable, and we remain committed to hold accountable anyone who threatens the safety of our residents. We extend our gratitude to the U.S. Attorney’s Office, particularly U.S. Attorney Jacqueline C. Romero, for their partnership and dedication in prosecuting this individual. Together with our law enforcement partners, we will continue to work tirelessly to protect our town and ensure that those who commit crimes face justice.”
“The sentence handed down today serves as a powerful reminder that the Philadelphia Police Department, alongside our law enforcement partners, will not tolerate violent crime in our city, especially crimes that target our most vulnerable citizens,” said Philadelphia Police Commissioner Kevin J. Bethel. “These brazen carjackings were not only a threat to public safety but also a violation of the sense of security every individual deserves. I commend the dedication of our officers - and the collaboration across our partner agencies - that brought this individual to justice. We remain committed to ensuring the safety of all Philadelphians through decisive and strategic actions.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Delaware County District Attorney’s Office Criminal Investigation Division, the Upper Darby Township Police Department, and the Philadelphia Police Department, and is being prosecuted by Special Assistant United States Attorneys Brian Doherty and Sandra M. Urban.
Owner of Three North Shore Restaurants Pleads Guilty to Tax Fraud SchemesRead the Press Release
BOSTON – A Hampton, N.H. man pleaded guilty on Sept. 6, 2024 to defrauding the Internal Revenue Service regarding federal employment taxes and the Massachusetts Department of Revenue regarding state meals taxes over a six-year period. Defendant owned and operated three restaurants: in Salem, Mass.; Peabody, Mass.; and Seabrook, N.H.
John Drivas, age 66, pleaded guilty to five counts of failure to collect and pay over employment taxes owed to the IRS and four counts of wire fraud for state meals taxes he collected from restaurant customers but failed to pay to the state Department of Revenue. U.S. District Judge Julia E. Kobick scheduled sentencing for Dec. 5, 2024.
Between January 2016 to October 2022, Drivas was the owner and operator of three restaurants: Red’s Sandwich Shop in Salem, Mass., Red’s Kitchen and Tavern in Peabody, Mass. and Red’s Seabrook in Seabrook, N.H. He was the sole shareholder of the Salem restaurant until he sold it to an employee in September 2022. He was the 100% owner of the Peabody restaurant with his wife and the 52% owner of the Seabrook restaurant with his children.
Drivas paid wages to numerous employees of the restaurants partly by payroll checks and partly in cash. He did not report the cash wages to the IRS or pay employment taxes on them. Federal tax law requires employers to withhold from any employee wages an amount for income taxes and other amounts for Social Security and Medicare taxes. Drivas caused employment tax losses of $439,341.
Drivas also collected more than $1.5 million in state meals taxes paid by restaurant customers which he failed to pay over to the state as required by law. In Massachusetts, all owners and operators of restaurants and bars are required to collect 6.25 sales taxes on meals. Salem and Peabody also require restaurants and bars to collect an additional 0.75% local option meals excise tax. Although Drivas collected the taxes from restaurant customers, he intentionally withheld $1,596,775. of those taxes from monthly reports and payments owed to the Massachusetts Department of Revenue.
The charge of failure to pay over taxes carries a maximum potential sentence of five years in prison, three years of supervised release, , a fine of $250,000 or twice the gross gain or loss and restitution. Each wire fraud charge is punishable by up to 20 years in prison, supervised release for three years, a fine of $250,000 or twice the gross gain or loss, and restitution. Sentences are imposed by the federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.Acting United States Attorney Joshua S. Levy, Harry Chavis, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office and Katherine Mulligan, Chief of Investigations for the Insurance Fraud Bureau of Massachusetts made the announcement today. Valuable assistance was provided by the Criminal Investigations Bureau of the Massachusetts Department of Revenue. Assistant United States Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Othello Man Indicted for Rolling Back and Replacing OdometersRead the Press Release
Spokane, Washington – On September 4, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Reynaldo Valdez Garza Jr., age 52, of Othello, Washington, with five counts of Odometer Tampering. Garza made his first appearance in Federal Court on September 9, 2024.
The indictment alleges that beginning in May of 2023, Garza carried out a scheme to acquire used cars with high mileage, tamper with or replace the odometers in the vehicles to make the cars mileage appear much lower, then advertise and sell the vehicles to unsuspecting buyers for an inflated price. According to the indictment, in some cases, Garza caused odometers to be rolled back more than 100,000 miles.
The indictment further alleges that in some instances Gaza would wait for the buyer to sign their section of the Bill of Sale paperwork, then fill in the “seller” section with different information than what was represented to the buyer regarding the identity of the seller and mileage.
“The purchase of a vehicle is often one of the largest financial commitments people make. It is important that buyers have confidence in the information they receive when deciding which vehicle to purchase,” stated U.S. Attorney Vanessa Waldref. “My office is committed to protecting consumers from fraudsters who seek to cheat the system for their own gain.”
This case was investigated by the National Highway Traffic Safety Administration and the Adams County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Devin Curda.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Adrian Horton, also known as “Big Guy” and “Fat Boy,” 23, of Toledo, Ohio, pleaded guilty today to possession with intent to distribute 40 or more grams of fentanyl and a quantity of cocaine base, also known as “crack.”
According to court documents and statements made in court, on March 28, 2022, law enforcement officers executed a search warrant at a Monroe Avenue residence in Huntington where Horton was staying. Officers seized over 40 grams of fentanyl and a quantity of cocaine. Horton admitted that he possessed the seized controlled substances, intended to distribute them, and used the Huntington residence to distributed various kinds of controlled substances.
Horton is scheduled to be sentenced on December 16, 2024, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Owen Reynolds and Stephanie Taylor are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-5.
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Newport News woman pleads guilty to laundering money taken from a pandemic relief loan programRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman pled guilty today to laundering proceeds of a pandemic-benefit fraud scheme.
According to court documents, on March 17, 2021, Shenita R. Banks, 50, applied for a loan for her company, Wireless Queen, Inc., through the Paycheck Protection Program (PPP), a COVID-19 relief program intended to provide loans backed by the Small Business Administration (SBA) to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic. Banks incorporated Wireless Queen, Inc., on July 27, 2015, but it had no business operations, employees, or sales in 2020.
In her PPP application, Banks fraudulently claimed that the purpose of the loan was for payroll costs, rent/mortgage interest, utilities, and covered supplier costs. Banks falsely stated that her average monthly payroll costs were $58,900.00. As part of the application, Banks submitted copies of tax returns (IRS Forms 940, 941, and 1120) for tax year 2020, in which she reported payments to employees totaling $705,941.44. However, the IRS has no record of Banks filing these forms for tax years 2018 through 2022 or of Banks filing an individual Form 1040 tax return for those tax years.
On March 24, 2021, Banks’ PPP loan application was approved, and on March 25, 2021, Banks electronically signed the PPP application attesting that the information provided was true and accurate and that she understood the criminal penalties associated with providing false statements to the SBA. Banks specifically certified that she was eligible to receive a loan under the rules issued by the SBA and that all loan proceeds would be used only for business-related purposes.
On March 31, 2021, Banks received $145,833 for the awarded PPP funding to her business account held in the name of Wireless Queen Inc., which Banks opened the day before submitting the initial PPP application. On April 5, 2021, Banks laundered $33,030 of the PPP loan funds by withdrawing them from the Wireless Queen bank account.
Banks is scheduled to be sentenced on Jan. 29, 2025, and faces a up to 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge Jamar K. Walker accepted the plea.
Assistant U.S. Attorneys Therese O'Brien and Mack Coleman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:24-cr-41.
Newbury Man Sentenced to 60 Months in Federal Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Newbury man was sentenced today in federal court for distributing child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Marc Jacques, 50, was sentenced by U.S. District Court Paul Barbadoro to 60 months in federal prison and 5 years of supervised release. The defendant was ordered to pay $26,500 in restitution. On March 18, 2024, Jacques pleaded guilty to one count of distribution of child pornography.
Between 2018 and 2022, Jacques’ IP address had been reported to the National Center for Missing and Exploited Children (NCMEC) in connection with at least 40 CyberTips related to the online sexual exploitation of children. Between November 24 and December 6, 2021, Jacques uploaded 49 files of apparent CSAM to the social media platform Kik. Law enforcement executed a federal search warrant on Jacques’ residence and person in June 2022. Forensic examination of Jacques’ electronic devices revealed the presence of over 200 files of apparent child sexual abuse material (CSAM) as well as chats between Jacques and others related to the sexual exploitation of children and the sharing of CSAM. In at least one chat conversation, Jacques sent videos of CSAM to others.
“Survivors of child sexual abuse material suffer from revictimization and live everyday with fear that their abuse is being shared on the internet,” said U.S. Attorney Jane E. Young. “Law enforcement in the District of New Hampshire will continue to utilize every resource available to disrupt the distribution of CSAM and incarcerate offenders convicted of these horrific crimes.”
“The defendant’s online behavior was flagged repeatedly by systems designed to detect predators sharing child sexual abuse materials. Today’s sentence is the result of the collaboration of private industry and the dedicated work of law enforcement who work together every day to see justice for the children victimized when these horrific images are produced,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the New Hampshire Internet Crimes Against Children Task Force (ICAC), the Nashua Police Department, and the Hillsborough County Sheriff’s Department. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
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Mineral County Man Sentenced for Fentanyl ChargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shawn Douglas Oates, 30, of Burlington, West Virginia, was sentenced today to 110 months in federal prison for conspiracy to possess with intent to distribute and to distribute fentanyl.
According to court documents and statements made in court, Oates’ residence was searched and officers seized nearly 70 grams of fentanyl. Oates has prior drug and theft convictions.
Oates will be on three years of supervised release following his prison sentence.
Assistant U.S. Attorney Kyle Kane prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Hampshire County Sheriff’s Office, the Mineral County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. District Judge Gina M. Groh presided.
Maryland Man Sentenced to A Year and A Day in Connection with Covid Fraud SchemeRead the Press Release
Baltimore, Maryland –Senior United States District Judge James K. Bredar sentenced Ayaz Qureshi, age 55, of Severna Park, Maryland to a year and a day in federal prison, followed by two years of supervised release, in connection with a conspiracy to commit wire fraud affecting financial institutions, relating to more than $250,000 in fraudulent Paycheck Protection Program (“PPP”) benefits. PPP benefits were a program created by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office (‘FBI’), Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (“SBA-OIG”), Eastern Region, and Chief Robert McCullough of the Baltimore County Police Department (“BCPD”).
Financial assistance through PPP benefits included forgivable loans to small businesses for job retention and certain other expenses, administered through the Small Business Administration (“SBA”), and SBA-approved lenders. According to the guilty plea, in March 2021, the Defendant and co-conspirator Ahmed (“Adam”) Sary submitted a fraudulent PPP loan application to Cross River Bank to obtain a PPP loan for Yazee, Inc. (“Yazee”), a company the Defendant owned. The PPP loan application contained numerous material misrepresentations, including that Yazee in 2019 had 16 employees and an average monthly payroll of more than $100,000. In support of the loan application, a fabricated 2019 Internal Revenue Service (“IRS”) form was submitted, which falsely stated that Yazee’s total payments to employees in 2019 were more than $1,200,000.
Based on the false representations and fraudulent submissions made on behalf of the Defendant as the owner of Yazee, the PPP loan was funded on March 22, 2021 and approximately $250,000 was distributed to a bank account controlled by the Defendant. The Defendant agreed to pay Sary kickbacks totaling $75,000 for his work in submitting the false application and obtaining the fraudulent PPP loan. After receipt of the PPP loan, the Defendant established payroll services for Yazee to facilitate documentation that would later be used to substantiate a request for the PPP loan to be forgiven.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the FBI for their work in the investigation, and thanked the Small Business Administration’s Office of Inspector General, and the Baltimore County Police Department. Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley, Jared M. Beim, and Bijon A. Mostoufi, 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.
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Marion County Man Pleads Guilty to Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Joseph Raymond Morin (51, Ocala) has pleaded guilty to attempting to entice a minor to engage in sexual activity. Morin faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between May 3 and June 26, 2024, Morin communicated online with someone whom he believed was a 13-year-old girl. The child, however, was an undercover Homeland Security Investigations special agent. Morin engaged in a sexually explicit conversation with the undercover agent. Ultimately, Morin was arrested when he traveled to a pre-determined meeting location in Marion County to meet with the fictious minor to engage in sexual activity.
This case was investigated by Homeland Security Investigations and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Sentenced to 40 Months for Participating in International Money Laundering Scheme Involving More Than $3 Million in Fraud ProceedsRead the Press Release
NEWS RELEASE SUMMARY – September 9, 2024
SAN DIEGO – Juan Pablo Prada Bernal of Colombia was sentenced in federal court today to 40 months in prison for participating in an international money laundering conspiracy involving more than $3 million in proceeds obtained through phone scams.
At today’s hearing, U.S. District Court Judge Andrew G. Schopler also ordered Bernal to pay $327,040.72 in restitution to 27 victims of the offense.
According to his plea agreement, between June 2018 and March 2020, Bernal was a member of an international conspiracy that laundered large amounts of money. The conspiracy involved two sides: Those responsible for contacting victims by phone and tricking them into sending thousands of dollars to U.S.-based bank accounts, and those responsible for laundering the proceeds through those bank accounts. The money launderers received and transferred the ill-gotten gains to their co-conspirators in Colombia and the United States, and in the process concealed the nature, source, location, ownership and control of the proceeds.
The money launderers opened bank accounts at various financial institutions using false mailing addresses. Shortly after the accounts were opened, the phone scammers – many of whom lived in Colombia – made unsolicited phone calls to victims in the United States using spoofed phone numbers. This allowed callers to conceal their identity and make it appear as if the calls originated from locations in the United States, such as a police station where the victim lived or had lived in the past.
During calls with victims, the scammers impersonated federal and local law enforcement officers and made the victims believe they were implicated in a crime. Using this as leverage, the conspirators coerced victims to make large wire transfers or other payments to purportedly resolve their criminal liability. The scammers instructed victims to wire funds to the various bank accounts opened by the money launderers. Once the money was deposited into the accounts, the money launderers quickly moved to withdraw the funds, purchase cashier’s checks to send to other conspirators, and drain the balance of the accounts before the funds could be frozen.
According to the United States’ sentencing memorandum, Bernal opened bank accounts at 10 different financial institutions to carry out the money laundering scheme. In many instances, Bernal received the fraud proceeds shortly after he opened the bank accounts and drained the balance of the accounts in a matter of days. After banks stopped allowing Bernal to open new accounts, he began to receive and launder cashier’s checks sent from his co-conspirators that were purchased with fraud proceeds obtained from other victims. To carry out this new role, Bernal and his co-conspirators traveled to multiple Moneytree locations in the same day for the purpose of laundering large amounts of fraud proceeds over a short period of time.
Over the course of approximately two years, Bernal received and laundered fraud proceeds more than 30 times from 27 different victims, including varying amounts of cashier’s checks from 14 of his co-conspirators, totaling an amount of $327,040.72.
“These scammers are sophisticated and will prey on emotion and fear,” said U.S. Attorney Tara McGrath. “This defendant turned deceit into profit, so we turned his profit into a conviction.”
“FBI Los Angeles works closely with our law enforcement partners to combat money laundering in our communities. Mr. Bernal’s sentence should serve as a deterrent to those who seek to prey on innocent victims” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The FBI reminds the public to be vigilant and never send money, gift cards, or share personal identifying information with a caller and to verify that the caller is a legitimate business or organization. The public is urged to report these calls to 1-800-CALL-FBI or tips.fbi.gov.”
“The U.S. Border Patrol is an all-threats agency, and we will continue to work with our law enforcement partners to protect our citizens from any and all threats,” said Chief Patrol Agent Patricia McGurk-Daniel. “I couldn’t be prouder of the work done by these agents to secure a significant and successful prosecution.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
This case is being prosecuted by Assistant U.S. Attorney Patrick C. Swan.
DEFENDANT Case Number 23-cr-1483-AGS
Juan Pablo Prada Bernal Age: 24 Columbia
SUMMARY OF CHARGES
Money Laundering Conspiracy - Title 18, U.S.C., Section 1956(h)
Maximum Penalties: Twenty years in prison and a $250,000 fine or twice the value of the property involved in the transaction
INVESTIGATING AGENCIES
U.S. Department of Homeland Security
U.S. Customs and Border Protection
U.S. Border Patrol
Federal Bureau of Investigation
Organized Crime Drug Enforcement Task Force
U.S. Secret Service
Man Sentenced for Third Federal Gun CrimeRead the Press Release
MOBILE, AL – Cornelius Jeremih Pruitt, 28, of Daphne, Alabama, was sentenced today on his third conviction for being a felon in possession of a firearm or ammunition. Court documents show that Pruitt was under federal supervision through the United States Probation Office for two prior federal convictions for felon in possession of a firearm when he was apprehended in July of 2023. Bay Minette police responded to a report of a man in a silver vehicle brandishing a weapon while driving in front of a residence. Officer began a patrol of the area an observed a silver vehicle parked in the middle of Means Avenue in the dark with no headlights on. Pruitt was the driver and sole occupant. As a result of the ensuing investigation, officers discovered a gun under his seat loaded with 17 rounds of ammunition. Pruitt told the police it was over for him, and admitted he was a convicted felon. Pruitt pled guilty to the charge in May of 2024.
Judge Jeffery U. Beaverstock sentenced Pruitt to 30 months in prison on the new charge, and ordered that Pruitt serve 5 years of supervised release following his imprisonment. The judge further ordered that Pruitt’s supervised release term from his two prior felon in possession charges be revoked and that he serve 24 months imprisonment for his violation of that supervision. The judge ordered that Pruitt would be subjects to standard conditions of supervised release, as well as certain special conditions, including mental health counseling and treatment, drug and alcohol testing and treatment and the model search provision, which permits a search of his person and premises upon reasonable suspicion that he has violated his supervision. He was also ordered to pay $100 in special mandatory assessments. No fine was imposed but the firearm and ammunition seized from Pruitt was ordered forfeited to the United States.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bay Minette Police Department.
Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Man Arrested and Charged with Stealing Benefits from Low-Income FamiliesRead the Press Release
NEWS RELEASE SUMMARY – September 6, 2024
SAN DIEGO –Andrei Bogdan Arteni of Romania appeared in federal court in Los Angeles today to face charges in the Southern District of California that he conspired to steal hundreds of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities. He was ordered detained and will appear in federal court in San Diego for his next hearing.
Arteni was arrested in Santa Ana yesterday in connection with the thefts, which resulted in losses exceeding $580,000. According to the complaint, between October 2023 and March 2024, he and co-conspirators installed skimming devices at point-of-sale terminals in grocery stores and large-volume retailers in communities with higher concentrations of public benefit recipients. The data skimmed from government-issued benefit cards, known as EBT (electronic benefit transfer) cards, was then re-encoded onto the magnetic strips of fraudulent cards that they used to make tens of thousands of dollars in unauthorized ATM withdrawals over the course of several months.
Also yesterday, authorities served court-authorized search warrants at two storage units in National City and Newport Beach, and Romanian authorities served warrants on 10 residences across Romania. U.S. federal authorities seized more than $550,000 in cash, jewelry, and skimming devices. Romanian authorities seized two properties in the cities of Iași and Podu Iloaiei, along with more than $190,000 and €200,000 cash.
“Stealing public assistance funds from those who need it most takes greed to a new depth,” said U.S. Attorney Tara McGrath. “With this case, we are enforcing laws designed to protect the security of electronic payment devices and ensure public confidence in everyday transactions.”
“EBT fraud is especially devastating as it targets our most vulnerable community members and can cause extreme financial hardship,” said Jason Reynolds, the Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The U.S. Secret Service, and our partners remain committed to investigating these crimes so that those receiving these benefits do not have to worry about their benefits being stolen.”
“Homeland Security Investigations is dedicated to working with our foreign law enforcement partners to disrupt and dismantle trans-national fraud groups who victimize U.S. banking institutions and government programs for their financial benefit,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “This case is an example of how HSI will go to great lengths to bring those who perpetrate these crimes to justice.”
According to court documents, Arteni and his co-conspirators used false identities to rent out an Airbnb, a storage unit in Newport Beach, and a storage unit in National City. The storage unit in Newport Beach stored several household appliances with cash concealed inside—some of which were shipped to Romania.
According to the complaint, the brothers were linked to the crimes through surveillance photos at ATMs in San Diego County where they made fraudulent withdrawals. Victims are located throughout Southern California, including San Diego, Los Angeles and Riverside.
This case is being prosecuted by Assistant U.S. Attorneys Ronald Sou and David Kete. Valuable assistance was provided by the U.S. Attorney’s Office for the Central District of California, U.S. Customs and Border Protection, Los Angeles Sheriff’s Department, the National City Police Department, and Romanian authorities, including Romania Public Ministry Prosecutor’s Office of DIICOT – Galați Territorial Service, Galați and Iași Police-Organized Crime Brigades.
If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days. More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.
DEFENDANT Case Number 24MJ1934
Andrei Bogdan Arteni 35 Santa Ana
SUMMARY OF CHARGES
Title 18, U.S.C. §§1029(a)(2), (b)(1), and (c)(1)(A)(i) – Use and Attempted Use of Unauthorized Access Devices
Maximum Penalty: Ten years in prison, $250,000 fine
Title 18, U.S.C. §1029(a)(2), (b)(2), and (c)(1)(A)(i) – Access Device Conspiracy
Maximum Penalty: Ten years in prison, $250,000 fine
Title 18, U.S.C. §§ 982(a)(2)(B) and 1029(c)(1)(C) – Criminal Forfeiture
INVESTIGATING AGENCIES
Homeland Security Investigations, Los Angeles
United States Secret Service, San Diego
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Madison Man Sentenced to 7 Years for Fentanyl Trafficking and Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Davonte F. King, 29, Madison, Wisconsin, was sentenced on September 5, 2024, by Chief U.S. District Judge James D. Peterson to a total of 7 years in federal prison for possessing fentanyl intended for distribution and possessing a firearm in furtherance of a drug trafficking crime. The prison term will be followed by 6 years of supervised release. King pleaded guilty to these charges on June 27, 2024.
In October and November 2022, King was intercepted over a wiretap speaking with the leader of a drug trafficking organization in Madison who was selling cocaine and fentanyl pills which were designed to appear like commercially manufactured oxycodone pills. King was often ordering hundreds of fentanyl pills at a time and was believed to be distributing them in the Madison area.
On October 19, 2022, King and the drug source set up a deal for fentanyl pills. After they met in Madison, a Madison Police Department officer attempted to conduct a traffic stop on King’s vehicle, but he fled at a high rate of speed in a residential area and got away. After the flight, King called the drug source and said he could not stop because he was a felon with a firearm.
On November 17, 2022, King was again intercepted setting up a deal with his drug source for 100 fentanyl pills. Officers observed King enter the drug source’s business and exit after a short time. The vehicle King was in then stopped at a grocery store parking lot where two people made brief contact with the vehicle consistent with drug deals. The vehicle was pulled over shortly after leaving the parking lot. King was ultimately arrested, and a search of his person revealed baggies with fentanyl pills and cocaine, $1,383 in cash, and drug trafficking paraphernalia including multiple baggies and small rubber bands.
During a search of the vehicle, law enforcement located a Taurus 9mm handgun under the front passenger seat where King had been seated. The Taurus was loaded with a bullet in the chamber. King is prohibited from legally possessing firearms and ammunition because of a prior felony conviction.
At the time of these events, King was on state supervision for a 2016 second degree reckless endangering safety conviction and a 2021 domestic battery conviction. King’s supervision has since been revoked and he is currently serving a 25-month state prison revocation sentence. Judge Peterson ordered that the federal sentence run consecutive to the remainder of the revocation sentence.
At sentencing, Judge Peterson said that this case involved a serious drug trafficking offense, as cheap fentanyl pills are flooding into communities. Judge Peterson also found King’s history of firearms possession and violence to be aggravating factors.
The charges against King were the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, IRS Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Wisconsin Department of Justice Division of Criminal Investigation, and Dane County Narcotics Task Force. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case is also 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.
Lynchburg Man Sentenced to 18 Years for Drug DistributionRead the Press Release
LYNCHBURG, Va. – A Lynchburg, Virginia man, who distributed large quantities of cocaine and methamphetamine throughout the greater-Lynchburg area while possessing a firearm and had previously been convicted in state court of second degree murder, was sentenced to 18 years in federal prison.
Taurus McDaniel, 43, previously pled guilty to conspiracy to possess with the intent to distribute and distribute methamphetamine, possession with the intent to distribute and to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. In addition, McDaniel was convicted in 2007 of murder in the second degree in the Circuit Court for Sussex County.
Quentin Randolph, a co-defendant in the matter, was previously sentenced to 15 years in federal prison for his role in the conspiracy.
According to court documents, between October 2022 and June 2023, McDaniel, Randolph, and others conspired to distribute methamphetamine in the greater Lynchburg metropolitan area. The Lynchburg, Virginia Police Department development several confidential informants (CIs) and made numerous controlled purchases of methamphetamine from McDaniel and Randolph from McDaniel’s residence at 100 Bright Star Court in Lynchburg.
On June 2, 2023, law enforcement executed a search warrant at McDaniel’s residence and discovered 356 grams of cocaine, a loaded, Colt .38 caliber revolver, a digital scale, a loaded 9 mm pistol with a laser sight and an extended magazine, and 236 grams of methamphetamine.
United States Attorney Christopher R. Kavanagh, Jared Forget, Special Agency in Charge of the DEA’s Washington Division, James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Ryan M. Zuidema, Chief of the Lynchburg Police Department made the announcement.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the City of Lynchburg Police Department investigated the case.
The investigation and conviction of Taurus McDaniel is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Sean Welsh prosecuted the case.