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4 September 2024
Former New Mexico Sheriff’s Office Deputy Sentenced for Civil Rights Offense for Sexually Assaulting Arrestee and Obstruction of JusticeRead the Press Release
A former New Mexico sheriff’s deputy was sentenced today to nine years in prison followed by three years of supervised release and required to register as a sex offender under the Federal Sex Offender Registration and Notification Act for violating the civil rights of a female arrestee and for obstruction of justice.
On April 23, Michael A. Martinez, 34, pleaded guilty to sexually assaulting a female arrestee inside his patrol car and for obstructing justice by attempting to destroy his patrol car’s WatchGuard DVR system, which had recorded footage from his patrol car’s internal cameras of the sexual assault.
“Sexual assaults perpetrated by police officers are heinous crimes and a disgraceful breach of the public’s trust in law enforcement,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant’s misconduct — exploiting the power of his badge, weaponizing his authority as a police officer and sexually assaulting a handcuffed victim in the back of his patrol vehicle — violated the victim’s core civil rights and basic standards of decency. We encourage survivors to come forward and report these crimes to the FBI. The sentence imposed today should send a strong message that the Justice Department will do all it can to hold accountable those who abuse their authority by sexually assaulting people in their custody.”
“Those that wear the uniform are expected to treat members of the public they serve with dignity and respect,” said U.S. Attorney Alexander M. M. Uballez for the District of New Mexico. “This includes protecting the rights of those who are in their custody. When an officer abuses their position, they erode the trust of the community we serve. We will scrupulously investigate, and vigorously prosecute, those who abuse the public trust and then try to cover up their misdeeds. The badge will not shield you from justice.”
“The violation of civil rights is a serious issue, especially when committed by those entrusted with enforcing the law,” said Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office. “An officer who betrays their duty to protect and serve undermines the integrity of the entire profession. The FBI will not hesitate to investigate any officer or agent who breaks the laws they are meant to enforce or who infringes on the civil rights of others.”
According to court documents, at the time of the offense, Martinez worked as sheriff’s deputy for the Doña Ana Sheriff’s Office in Doña Ana County, New Mexico. On April 30, 2023, Martinez responded to a car accident and placed the victim under arrest for driving while intoxicated and careless driving. Martinez transported the victim to a medical center and, after the victim received medical clearance, he handcuffed her hands behind her back and put her back inside his patrol car, where he proceeded to sexually assault her. Afterwards, he transported her to the Doña Ana Detention Center.
Several hours later, Martinez attempted to physically destroy his patrol car’s WatchGuard DVR system, which is the patrol car’s internal video camera system that, among other things, records and stores footage from the patrol car’s backseat camera. Martinez, correctly, believed that that the DVR system contained a video recording of him sexually assaulting the victim in the backseat of his patrol car and attempted to destroy and conceal that recording from any future investigation.
The FBI Albuquerque Field Office, Las Cruces Resident Agency investigated the case, with assistance from the Doña Ana Sheriff’s Office and New Mexico State Police.
Assistant U.S. Attorney Matilda Villalobos for the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division prosecuted the case.
Former Lauderdale County Teacher Arrested for Online Threats to School Officials and Former StudentsRead the Press Release
MERIDIAN, MS – A Meridian man, who is a former teacher in Lauderdale County, Mississippi, was charged today with federal offenses related to his alleged online threats against school officials and former students.
According to court documents, Daniel Christian Johnson, 36, made online threats over social media, including threats to kill named victims and commit other acts of violence using firearms and explosives. Additionally, law enforcement officers conducted a search of Johnson’s home last week and discovered what are alleged to be components of explosive devices or materials used for the manufacturing of explosives.
Johnson is charged by federal criminal complaint with Interstate Communications with Threat to Kidnap or Injure and Willfully Making a Threat involving Explosive Materials. If convicted, Johnson faces a maximum penalty of 10 years in prison. Johnson has also been charged with Mississippi state offenses by the Office of the District Attorney for the 10th Circuit Court District, and he is presently in custody.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The FBI and the Lauderdale County Sheriff’s Department are investigating the case.
Assistant U.S. Attorneys Samuel Goff and Brett Grantham are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former International Cyclist Sentenced to Seven Years in Federal Prison for International Gun SmugglingRead the Press Release
Orlando, Florida – U.S. District Judge Carlos Mendoza today sentenced Varun Maharajh (32, Trinidad and Tobago) to seven years in federal prison for smuggling firearms overseas and possessing firearms as an unlawful alien. The court also ordered Maharajh to forfeit the firearms and ammunition seized in the case. Maharajh entered a guilty plea on March 21, 2024.
According to court documents, on June 28, 2022, Maharajh shipped a parcel to London containing a microwave with five concealed pistols inside. The package contained a Taurus G2C pistol, a Glock 17 Gen 5 pistol, two Glock 19 Gen 5 pistols, and 59 rounds of 9 mm ammunition. The serial numbers were obliterated on the firearms and Maharajh used a fake name, “Kelvin Singh,” to ship the package.
On July 18, 2022, Maharajh dropped off a package at a freight forwarding company in Miami. The package was addressed to Trinidad and Tobago and Maharajh worked with an intermediary who filled out the paperwork. The package contained a tent with two AK-47 style firearms concealed within its folds along with a microwave containing pistols. All of the serial numbers on the firearms were obliterated. While Maharajh worked with another individual, he did show a fake ID with the name “Kelvin Singh” to the freight forwarding company when he dropped off the package.
Maharajh was arrested in Indian River County on November 19, 2023, and engaged in a high-speed chase on I-95 before totaling his vehicle and attempting to flee on foot.
Maharjh had entered the United States in 2020 and stayed without legal status after he was scheduled to depart. Maharajh was previously a World Cup cyclist for Trinidad and Tobago and qualified for the Olympics in 2016.
This case was investigated by Homeland Security Investigations, the Bureau of Industry and Security at the U.S. Department of Commerce, U.S. Customs and Border Protection, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Florida Highway Patrol, the Indian River County Sheriff’s Office, and the St. Lucie County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dana E. Hill.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Community College Coach Sentenced to Federal Prison for Sexual Enticement of a MinorRead the Press Release
PORTLAND, Ore.—A Portland man who served as the head men’s basketball coach at Mt. Hood Community College in Gresham, Oregon, was sentenced to federal prison today for persuading a child to send him sexually explicit images.
Nathan Ezell Bowie, 38, was sentenced to 162 months in federal prison and 20 years’ supervised release.
According to court documents, in November 2021, Bowie conducted a basketball camp at an Oregon high school. Bowie asked students at the camp to connect with him online, and the victim sent Bowie a message asking for basketball drills. Bowie continued communicating with the minor, eventually persuading the victim to send sexually explicit images. In January 2022, another coach learned of the communications and alerted law enforcement.
On March 15, 2022, Bowie was charged by criminal complaint with sexually exploiting a child, coercion and enticement, and receipt of child pornography.
On May 15, 2024, Bowie pleaded guilty to coercion and enticement of a minor.
This case was investigated by the Douglas County Sheriff’s Office and FBI Portland’s Eugene Resident Agency. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Chief Operating Officer of Covid-19 Testing Kit Company Sentenced to More Than Six Years in Federal Prison for Embezzling $1.85 MillionRead the Press Release
CHICAGO — The former Chief Operating Officer of a suburban Chicago company that sold Covid-19 testing kits has been sentenced to more than six years in federal prison for embezzling more than $1.85 million in company funds.
While on pre-trial and pre-sentencing release for an earlier fraud scheme, DENNIS W. HAGGERTY, JR. issued fraudulent payments from the Willowbrook, Ill.-based company’s bank account for services and goods purportedly provided by himself or the company’s main vendor, a manufacturer from whom the company purchased Covid-19 testing kits. In reality, the services and goods had not been provided. The money purportedly sent to the testing-kit supplier was wired to a bank account that Haggerty controlled, and he spent the funds for his personal benefit.
In addition to the wire transfers, Haggerty issued checks drawn from the company’s bank account to himself, knowing that he would spend the money for his personal benefit. Haggerty concealed his fraud by making false and misleading statements on the checks and to the company’s president.
In all, Haggerty in 2021 and 2022 embezzled and fraudulently misappropriated more than $1.85 million from the company.
Haggerty, 48, of Burr Ridge, Ill., pleaded guilty earlier this year to a wire fraud charge and admitted that he committed the offense while on pre-trial and pre-sentencing release. U.S. District Judge John Robert Blakey on Thursday sentenced Haggerty to six years and five months in federal prison.
Haggerty must serve the sentence after completing his federal sentence for the earlier fraud scheme. In the prior case, Haggerty pleaded guilty to wire fraud and money laundering charges for swindling hospitals that had paid him millions of dollars for scarce personal protective equipment in the early weeks of the Covid-19 pandemic in 2020. He was sentenced in December 2022 to nearly five years in federal prison.
The recent sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General. The government was represented by Assistant U.S. Attorney L. Heidi Manschreck.
Federal, County, and City Law Enforcement Officials Announce Initiative to Combat Sexual Exploitation CrimesRead the Press Release
LOS ANGELES – Federal and local law enforcement officials today announced a significant collaborative effort aimed at combatting human trafficking and the sexual exploitation of minors on the Figueroa Corridor in South Los Angeles.
United States Attorney Martin Estrada, Los Angeles Mayor Karen Bass, Los Angeles City Attorney Hydee Feldstein Soto, Los Angeles County District Attorney George Gascón, Los Angeles Police Chief Dominic Choi, FBI Assistant Director in Charge Akil Davis, Homeland Security Investigations Special Agent in Charge Eddy Wang, and Los Angeles City Councilmember Marqueece Harris-Dawson made the announcement.
The criminal cases announced today involve the Figueroa Corridor – a 3.5-mile stretch of Figueroa Street stretching from Gage Avenue down to Imperial Highway, long known as a haven for prostitution.
The initiative – called the Figueroa Corridor Human Trafficking Initiative – features federal and local law enforcement working together to target human traffickers and those who perpetuate illegal sex work, especially involving minors. This initiative also is designed to help victims – the young women and girls who perform the sex work – to find opportunities and to help get them off the streets.
“The Figueroa Corridor area is ground zero for human trafficking and victims are abused and exploited there every day,” said United States Attorney Martin Estrada. “With this initiative, we are combining federal and local resources to focus on prosecuting more cases federally, particularly those involving victims who are children, and coordinating with our local partners to hold perpetrators accountable. It is imperative that we take an all-hands approach to stop the human trafficking happening right in our backyard.”
“Often, people think of human trafficking as something that happens only in other countries, but it happens in our own City,” said Los Angeles Mayor Karen Bass. “This is an issue that community leaders and former foster youth have been working to fight back against for decades and today’s announcement continues a commitment to protecting children, many of whom have spent time in the child welfare system, and hold traffickers and abusers accountable. I thank our law enforcement partners, especially the hardworking officers of LAPD’s 77th Division, for their continued work on this important issue."
“We are so proud of this unprecedented strategic collaboration, with all of our justice partners leveraging their resources. We have made tremendous progress in our efforts to combat the human trafficking and sexual exploitation of minors that has plagued the Figueroa Corridor for far too long,” said Los Angeles City Attorney Hydee Feldstein Soto. “By disrupting the illegal activity and the businesses that have harbored it and with our U.S. Attorney taking the lead on federal felony prosecutions, we are declaring loud and clear that our children are not for sale, and our community will not be a hub for sex trafficking of minors.”
“In the fight against human trafficking, the Los Angeles County District Attorney’s Office has made significant strides thanks to the relentless dedication of our prosecutors and the unwavering support of our multi-agency law enforcement partners. This collaborative effort has been instrumental in bringing traffickers to justice and dismantling these heinous operations,” said Los Angeles County District Attorney George Gascón. “Equally important is our dedication to supporting survivors through LADA’s Bureau of Victim Services. Our team is trained to provide trauma-informed care, offering survivors the support they need to heal and rebuild their lives. From the moment they come into contact with our office through to their testimony in court, we stand by their side, ensuring they are treated with the utmost respect and care. We recognize that the fight against human trafficking is ongoing. Together, we will continue to advance justice and work toward a future where human trafficking is eradicated from our community.”
The criminal cases announced today are:
United States v. O’Neal
Christian Brandon O’Neal Scurlock, 21, of Moreno Valley, has been indicted for allegedly sex trafficking two minors – including a 13-year-old girl – and transporting the minor victims across state lines for the purposes of engaging in prostitution. Last month, a federal grand jury returned an indictment charging O’Neal with two counts of sex trafficking of a minor and two counts of transportation of a minor in interstate commerce to engage in prostitution and criminal sexual activity.
According to an affidavit that supported a criminal complaint previously filed in this case, in April 2024, officer with the Las Vegas Metropolitan Police Department stopped O’Neal, who had been seen grabbing a young girl by her neck and pushing her into a Mercedes-Benz. When the officers approached, they found two minor girls inside the car – one victim was 13 years old and the other victim was 16 years old. Officers saw several condoms inside the car in plain view.
A record check of the girls revealed that both had been reported as missing juveniles out of California. Both victims told police that O’Neal had brought them to Las Vegas to provide prostitution services as minor commercial sex workers and that they usually worked on “Fig,” short for Figueroa Street in Los Angeles. O’Neal required both minor victims to give him the money they earned from prostitution.
Further investigation revealed that O’Neal advertised himself on Instagram as being a pimp. A review of text messages from the victims’ phones corroborated that O’Neal was their pimp and he had them engaged as minor commercial sex workers on the Figueroa Corridor. Also, in March 2024, police camera footage on the Figueroa Corridor showed O’Neal appearing to yell at the 13-year-old victim, take her clothes, and depart the area, leaving her completely naked on the street.
O’Neal was arrested on August 7, was ordered jailed without bond by a federal magistrate judge and has remained in federal custody since then. He pleaded not guilty on August 27 to the criminal charges against him and an October 7 trial date has been scheduled in this case.
Assistant United States Attorneys Kelsey A. Stimson and Danbee C. Kim of the General Crimes Section and Kathy Yu, Chief of Ethics and Post-Conviction Review, are prosecuting this case.
United States v. Castillo, et al.
Nanci Jasmin Castillo, 31, and Jonathan Gonzalez-Reyes, 38, both of Anaheim, are charged in a six-count federal grand jury indictment alleging they befriended a 13-year-old girl, provided her with alcohol, and sexually assaulted her, taking photographs and making videos of the attack.
According to court documents, Castillo befriended a 13-year-old identified in court documents as “Victim 1.” In February 2021 at Castillo’s Anaheim home, Castillo and Gonzalez-Reyes allegedly sexually assaulted the victim – to whom Castillo had given an alcoholic beverage after the victim previously had taken Xanax anti-anxiety medication – while the victim was going in and out of consciousness. The defendants photographed and made videos of the attack.
A search of Gonzalez-Reyes’ phone and Castillo’s iCloud account by law enforcement revealed the existence of child sexual abuse material (CSAM) depicting the victim and the defendants. Additionally, law enforcement found evidence that Gonzalez-Reyes sent copies of the CSAM to Castillo.
Castillo and Gonzalez-Reyes discussed helping the victim run away from home and possibly trying to find her work on “Fig,” a common reference for the Figueroa Corridor, according to court documents.
Both defendants are charged with one count of production of child pornography. Castillo is further charged with one count of the use of a facility of interstate commerce to attempt to induce a minor to engage in criminal sexual activity and one count of possession of child pornography. Gonzalez-Reyes also is charged with two counts of distribution of child pornography and one count of possession of child pornography.
Castillo and Gonzalez-Reyes have pleaded not guilty to charges and are scheduled to go to trial in March 2025. They have been in federal custody since June 2024.
Assistant United States Attorneys Claire E. Kelly and Chelsea Norell of the Violent and Organized Crime Section are prosecuting this case.
United States v. Bradford
Donavin Dwayne Bradford, 33, of South Los Angeles, is serving sentence of life in federal prison after being convicted of recruiting and enticing teenage girls for whom he acted as a “pimp” and providing them for commercial sex work.
From the summer of 2021 to February 2022, Bradford caused one of the minor victims – a then-15-year-old girl – to be used for commercial sex acts. Bradford recruited the victim to work for him as a commercial sex worker. As the victim’s “pimp,” Bradford expected the girl to earn him $1,000 per night.
Bradford advertised the girl for commercial sex work on various websites, and customers who responded to the ads were directed to various hotels and motels where they engaged in commercial sex acts with the victim. Sometimes the minor victim would be required to perform sex acts. Customers paid Bradford for “dates” with the victim or she would be required to give Bradford her earnings.
Bradford assaulted the minor victim when she tried to stop working for him on two separate occasions. Bradford also filmed himself engaging in sex acts on two separate occasions with her. From March 2021 to November 2021, Bradford recruited and enticed two other girls – ages 16 and 17 – to engage in commercial sex activity.
At the conclusion of a five-day trial in April 2023, a jury found Bradford guilty of one count of conspiracy to commit sex trafficking with a minor, three counts of sex trafficking of a minor, three counts of sexual exploitation of a minor for the purpose of producing a sexually explicit visual depiction, one count of possession of child pornography, and one count of sex trafficking through threats of force, fraud, or coercion.
Assistant United States Attorneys Chelsea Norell of the Violent and Organized Crime Section and Kathy Yu, Chief of Ethics and Post-Conviction Review, prosecuted this case.
“Our women, youth and communities deserve better, and this is just the beginning of our focused multi agency effort to stop human trafficking along the Figueroa Corridor,” said Los Angeles Police Chief Dominic Choi. “I am grateful to our federal, state and local partners who have come together with the same vision and tenacity on this topic.”
“The FBI and its partners will continue to aggressively investigate crimes which affect our quality of life” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “Collaboration with our law enforcement partners is key to accomplishing anything we set out to do. And when we leverage the resources and strengths of our partners, we can do more to protect the American people than we could ever accomplish on our own.”
“HSI’s efforts to combat human trafficking in Los Angeles is most effective with our partnerships with our federal, state and local partnerships,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “The success of our investigations is also highly reliant on our victim-centered approach, where we place equal value on the identification and well-being of victims and on the investigation and prosecution of traffickers.”
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Any member of the public who has information related to child sex crimes is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565 or report tips online at https://tips.fbi.gov.
Federal Jury Finds Manatee County Man Guilty of Using A Hidden Camera to Produce Child Sexual Abuse MaterialRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Joshua Scott Landers (48, Bradenton) guilty of three counts of producing child sexual abuse material and one count of possession of child sexual abuse material. Landers faces a minimum mandatory penalty of 15 years, up to 30 years in federal prison for each production offense and a maximum penalty of 20 years’ imprisonment for the possession offense. A sentencing date has not yet been scheduled.
According to testimony and evidence presented at trial, Landers installed a video camera inside a smoke detector on the ceiling of the teenage victim’s bedroom. Landers used the footage he captured of the victim to save videos specifically of her engaged in sexually explicit conduct. He then saved that footage on multiple devices and maintained those videos and screenshots for multiple years.
This case was investigated by the Manatee County Sheriff’s Office, with assistance from the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Abigail K. King and Courtney Derry.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Employee Charged with Defrauding U.S. Government of More Than $1 MillionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that James Montoya, 54, of Lakewood, was indicted by a federal grand jury on eight counts of wire fraud.
According to the indictment, Montoya worked as a federal employee at the United States Geological Survey (USGS) office in Lakewood, Colorado. USGS is part of the United States Department of the Interior (DOI). During a routine initiative to identify misuse, DOI identified numerous questionable transactions on Montoya’s government charge card. The indictment alleges that Montoya concealed these improper purchases by altering documents to indicate these purchases were for work-related items. The alleged actions defrauded the government of approximately $1,223,009.42 over approximately fifteen years beginning around December of 2008 and continuing through at least November 2023.
The defendant made his initial appearance in Denver on Wednesday, September 4, 2024, in front of Magistrate Judge Susan Prose.
The charges contained in the indictment are allegations and the defendants are presumed innocent of the charges unless and until proven guilty.
The case is being investigated by the U.S. Department of the Interior Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Sonia Dave.
Case Number: 24-cr-248-PAB
Fayette County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jeff Allen Adkins, 66, of Fayetteville, pleaded guilty today to possession with intent to distribute quantities of methamphetamine and fentanyl.
According to court documents and statements made in court, on May 8, 2022, Adkins was a passenger in a vehicle pulled over by law enforcement officers in Oak Hill. Officers searched the vehicle and found approximately 116 grams of fentanyl and 112 grams of methamphetamine. Adkins told officers he possessed the controlled substances and intended to distribute them.
Adkins is scheduled to be sentenced on January 13, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Oak Hill Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Alexander A. Redmon and Ryan Blackwell have prosecuted 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. 2:24-cr-57.
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Dothan Woman Sentenced to More Than Five Years in Federal Prison for Her Role in a COVID-19 Era Unemployment SchemeRead the Press Release
MONTGOMERY, ALABAMA – On September 4, 2024, a federal judge ordered that 47-year-old Sommer Le Morris, a resident of Dothan, Alabama, receive a sentence of 65 months in prison for her role in filing fraudulent unemployment claims through an expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act program, announced Acting United States Attorney Kevin P. Davidson. Following her prison sentence, Morris will be on supervised release for three years. Federal inmates are not eligible for parole.
Beginning in March 2020, the CARES Act and the Families First Coronavirus Response Act provided for additional funding and expanded access to unemployment insurance programs in response to the COVID-19 pandemic. In Alabama, a person entitled to unemployment benefits could receive additional funding from the Alabama Department of Labor. Alabama law also allowed an employer to file what is called a “partial” claim on behalf of an employee who had been temporarily laid off due to a lack of available work during the pandemic.
According to the plea agreement and other court records, from March 2020 through February 2021, Morris filed partial claims for 15 individuals falsely stating that they were entitled to the expanded unemployment benefits. Based on Morris’s false representations, ADOL made significant payments, some through wire transfers, to Morris and others that they were not eligible to receive. In her plea agreement, Morris admitted to using the name, date of birth, and Social Security number of others to carry out her scheme.
On May 30, 2024, Morris pleaded guilty to mail fraud, wire fraud, and aggravated identity theft. During her plea hearing in May, Morris also acknowledged that her scheme caused ADOL to issue $186,478 in fraudulent unemployment claims. The judge ordered Morris to pay restitution to ADOL in that amount.
The United States Department of Labor Office of Inspector General and the Alabama Department of Labor investigated this case, which Assistant United States Attorney Russell T. Duraski prosecuted.
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 via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Diesel Repair Shop and Owner Sentenced to Probation and Criminal Fines for Violating the Clean Air ActRead the Press Release
EUGENE, Ore.—A Lane County, Oregon, diesel repair shop and its owner were sentenced in federal court today for knowingly and intentionally tampering with pollution monitoring devices on at least 184 vehicles in violation of the Clean Air Act.
Diesel & Offroad Authority, LLC, located in Veneta, Oregon, and its owner and operator, Christopher Paul Kaufman, 39, were each sentenced to three years’ probation and ordered to pay $150,000 in criminal fines. In addition, the sentencing court ordered Kaufman to include a disclaimer on his company’s website declaring that Diesel and Offroad Authority no longer provides “delete and tune” tampering services because they are illegal.
“The defendants in this case illegally tampered with the onboard diagnostics systems and removed the emissions control components from hundreds of diesel trucks,” said Special Agent in Charge Lance Ehrig of the Environmental Protection Agency’s Criminal Investigation Division in Oregon. “Their actions directly contributed to the release of significant amounts of dangerous air pollutants, which leads to serious health conditions such as respiratory diseases like asthma. Today’s sentencing demonstrates that individuals and their companies will be held criminally responsible if they deliberately threaten human health and the environment by violating our nation’s environmental laws.”
According to court documents, beginning in at least 2018 and continuing through 2022, Diesel & Offroad authority tampered with and disabled emissions control systems of at least 184 diesel vehicles in violation of the Clean Air Act. Diesel & Offroad Authority charged its customers approximately $2,300 each for the emissions modifications and collected more than $378,000 for the unlawful services over an approximately four-year period.
As owner of Diesel & Offroad Authority, Kaufman oversaw and participated in the illegal modification of vehicles, including by procuring various automotive parts used in the process and engaging in and directing employees in the removal of emissions control equipment.
On March 12, 2024, Diesel & Offroad Authority and Kaufman were charged by federal criminal information with violating the Clean Air Act by tampering with pollution monitoring devices.
On April 10, 2024, Diesel & Offroad Authority and Kaufman pleaded guilty.
This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division. It was prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon, and Gwendolyn Russell, Special Assistant U.S. Attorney for the Environmental Protection Agency.
If you witness an environmental event that may lead to an immediate threat to human health or the environment, please call 9-1-1. After alerting local emergency authorities, please also report incidents to the EPA’s Report a Violation website (https://echo.epa.gov/report-environmental-violations) or by calling the National Response Center at 1-800-424-8802.
Concord Businessman Pleads Guilty to Tax OffenseRead the Press Release
Greensboro, N.C. – A Concord, North Carolina, man has pleaded guilty to willfully failing to collect or pay over taxes, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (USAO-MDNC).
According to court documents, from on or about the first quarter of 2016 up to and including the third quarter of 2022, RONALD JAMES MCMURPHY of Concord was the president of McMurphy Hydraulics, Inc., which was in the business of repairing and manufacturing hydraulics equipment. From on or about the fourth quarter of 2019 up to and including the third quarter of 2022, MCMURPHY also served as president of Powertek Equipment, Inc., a manufacturer of heavy equipment for construction and forestry businesses. MCMURPHY exercised control over the financial affairs of both companies by, among other acts, serving and executing duties as the president of each corporation; exercising authority to hire and fire employees; and having and exercising signatory authority on checks drawn on the corporate bank accounts. He was thus a person responsible for accounting for and paying to the IRS the employment taxes for the employees of both companies, but for various tax periods, MCMURPHY willfully failed to truthfully account for and pay over the trust fund taxes and employer matching taxes due and owing to the IRS on behalf of the companies’ employees. The total employment tax liability from the first quarter of 2016 through the third quarter of 2022 for which MCMURPHY is accountable is $712,017.00.
MCMURPHY pleaded guilty today before Chief United States District Court Judge Catherine C. Eagles. Sentencing is scheduled for December 12, 2024, in Greensboro. MCMURPHY faces a maximum sentence of five years in prison, as well as a period of supervised release of not more than three years, and monetary penalties.
The case is being investigated by IRS Criminal Investigation. Assistant United States Attorney Laura J. Dildine of the Middle District of North Carolina is prosecuting the case.
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Clark County Woman Sentenced for Wire Fraud and Aggravated Identity TheftRead the Press Release
LEXINGTON, Ky. – A Winchester, Ky., woman, Irene Fike, 56, was sentenced to 36 months on Wednesday, by U.S. District Judge Gregory Van Tatenhove, following her convictions for wire fraud and aggravated identity theft.
From 2016 to 2021, Fike was employed by an accounting firm in Winchester, where she had access to financial information belonging to the victim and performed bookkeeping tasks for the victim. According to her plea agreement, in the fall of 2021, Fike left her employment at the accounting firm and the victim hired her as an independent contractor to assist with paying bills, creating and updating financial records, general bookkeeping, and other matters. She also had access to the victim’s bank accounts.
As part of Fike’s scheme, from April 2018 until September 2022, she defrauded the victim through the unauthorized use of the victim’s credit cards and bank accounts to benefit herself. In total, Fike used $224,349.93 in the victim’s funds to pay her personal credit card. Additionally, she used the victim’s credit cards to make various online purchases totaling $139,307.74. To conceal her fraud, Fike misrepresented the expenditures and debits on financial reports to avoid raising the suspicions of the victim and family.
As part of her sentence, Fike was ordered to pay $405,867.08 in restitution to the victim.
Under federal law, Fike must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The case was investigated by the FBI. Assistant U.S. Attorneys Amanda Huang and Andy Boone prosecuted the case on behalf of the United States.
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Charlotte Man Is Sentenced to Prison for Possession of A MachinegunRead the Press Release
CHARLOTTE, N.C. – Durell Smith, 22, of Charlotte, was sentenced today to 54 months in prison followed by two years of supervised release for possession of a machinegun, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on February 10, 2023, CMPD officers observed Smith park a vehicle that displayed a fictitious tag in front of a residence in Charlotte. An officer approached the vehicle and saw a Glock, model 17, 9mm caliber handgun with distinctive white skulls painted on it with a machinegun conversion device, also known as a Glock switch, installed. The firearm with the skulls had been stolen and had a 30-round magazine inserted into the weapon. A further search of the car revealed a second machinegun, a Glock model 33 .357 caliber handgun with a Glock switch installed. Court records show that Smith had previously posted photos online posing with the firearm with the painted skulls. According to court documents, several months after CMPD seized the two machineguns, Smith was arrested at the same residence. CMPD executed a search warrant on the property and recovered several stolen firearms from the residence.
On April 24, 2024, Smith pleaded guilty to possession of a machinegun. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
The U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Terrence Jay Mason, 31, of Charleston, pleaded guilty today to distribution of 5 grams or more of methamphetamine.
According to court documents and statements made in court, on April 6, 2023, Mason sold approximately 26 grams of methamphetamine to a confidential informant in Charleston.
Mason is scheduled to be sentenced on December 19, 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 Charleston Police Department-Street Crimes Unit.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Francesca C. Rollo and Samuel D. Marsh 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. 2:24-cr-34.
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Charleston Developer Sentenced to Prison for Bankruptcy FraudRead the Press Release
CHARLESTON, W.Va. – John H. Wellford III, 73, of Charleston, was sentenced today to one year and one day in prison, to be followed by three years of supervised release, and ordered to pay $730,326.43 in restitution for falsification of bankruptcy records.
According to court documents and statements made in court, on March 29, 2019, Wellford filed for bankruptcy on behalf of Corotoman Inc., a real estate development company he owned and operated. As part of the bankruptcy, Corotoman’s Statement of Financial Affairs required Wellford to disclose all monetary transfers from Corotoman outside the ordinary course of business that had occurred in the two years prior to filing for bankruptcy. Wellford admitted that, despite this requirement, he did not disclose that he had transferred $925,326.43 from Corotoman on or around May 2, 2018 to another of Wellford’s businesses, Marsh Fork Development.
Approximately 10 months prior to the bankruptcy filing, Corotoman received a large influx of cash while it was struggling financially and while one of its creditors was actively trying to collect on an outstanding debt. Wellford deposited a $1,978,101.40 check from American Electric Power in Corotoman’s bank account on or around April 30, 2018. Wellford then transferred $925,326.43 of the funds to Marsh Fork Development on or around May 2, 2018. From that money, Wellford transferred $680,000 to his lawyer’s client trust account. Over the next five months, Wellford caused his lawyer to transfer the entire $680,000 back to various businesses that Wellford owned, primarily Marsh Fork Development.
Wellford admitted that all of these transactions were to ensure that he maintained possession and control over the money so that he could use the money for his businesses. Additionally, when Wellford attended a May 28, 2019 meeting of creditors, he testified that Corotoman had not made any payments to creditors outside the ordinary course of business in the year prior. When Wellford twice amended Corotoman’s bankruptcy filings to account for other undisclosed transactions that took place at the same time as the transfer, he failed to disclose the transfer.
“Today’s sentence is at the upper range of the advisory guideline range and reflects the nature and seriousness of Mr. Wellford’s offense. It is also appropriate given his background. Simply put, he should have known better and he should have done better,” said United States Attorney Will Thompson. “Mr. Wellford went to great lengths to carry out this crime of deception. Each transfer was a deliberate act of duplicity, and there are more than thirty of them. Each failure to disclose was an act of dishonesty.”
Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police, the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU) and the West Virginia Offices of the Insurance Commissioner-Special Investigations Division. The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.
“This sentencing sends a clear message: the FBI and our partners will continue to go to great lengths to root out those who think fraud and deception mean more money in their own pocket,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “Bankruptcy fraud not only impacts financial institutions and creditors, but it also impacts the everyday person with higher fees and higher taxes. We stand committed to ensuring financial fairness at all levels.”
“Debtors’ responsibility to provide truthful, accurate, and complete information is essential to the proper function of the bankruptcy system,” said Acting United States Trustee Gerard Vetter of Region 4, which includes West Virginia. “This case demonstrates the dedication of the United States Trustee Program and the Justice Department to enforce the statutes imposing that responsibility and to ensure a fair process for debtors, creditors and other stakeholders. We thank U.S. Attorney Thompson and our law enforcement partners for their commitment to protecting the integrity of the bankruptcy system.”
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Holly Wilson prosecuted 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. 2:24-cr-63.
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Cary Man Sentenced to More than 8 Years in Prison for Receiving Child PornographyRead the Press Release
WILMINGTON, N.C. – A Cary man was sentenced today to 97 months imprisonment followed by five years of supervised release for receipt of child pornography. Derrick Alexander Swick, age 29, pled guilty on August 8, 2023, after law enforcement was alerted in April 2021 by Dropbox that one of their users was uploading child pornography to its platform. Swick was also ordered to pay $20,000 in restitution.
According to court documents and other information presented in court, Swick was investigated by the Cary Police Department and the Department of Homeland Security (HSI). The investigation was initiated after Dropbox notified the National Center for Missing and Exploited Children about a user, later identified as Swick, uploading child pornography to its platform. Subsequent search warrants led law enforcement to uncover child pornography in both Swick’s Dropbox and Google accounts.
Based on the search warrant results, law enforcement executed a search warrant at Swick’s residence in Cary. Swick was present when the search warrant was executed and initially denied having ever accessed child pornography. When confronted with the search warrant results of his Dropbox and Google account, Swick acknowledged there would be child pornography on his digital devices. Two digital devices were seized and forensically analyzed and found to contain child pornography. In total, Swick possessed over 939 images and 76 videos that depicted child pornography. He additionally had approximately 4200 images that depicted child erotica or were difficult to ascertain the age of the individual. Swick’s collection of photos and videos included very young children, infants, and toddlers, as well as images depicting sadistic and masochistic conduct.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. The Cary Police Department and HSI investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-103-FL.
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Buffalo man who left halfway house charged with escapeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Walter Stewart, 33, of Buffalo, NY, was arrested and charged by criminal complaint with escape from custody, which carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Jeffrey E. Intravatola, who is handling the case, stated that on September 15, 2022, Stewart was sentenced to serve 58 months in prison after being convicted of being a felon in possession of a firearm and ammunition. On May 20, 2024, the Bureau of Prisons furlough transferred Stewart from the Ray Brook Federal Correctional Institution, in Ray Brook, New York, to a community-based placement at CRJ Lighthouse Residential Reentry Center in Buffalo, where he was directed to serve the remainder of his sentence with a projected release date of August 10, 2024. On June 26, 2024, the U.S. Marshals Service was notified by the Bureau of Prisons that Stewart left the center without authorization. Stewart was taken into custody on August 30, 2024.
The complaint is the culmination of an investigation by the U.S. Marshals Service, under the direction of Marshal Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo man sentenced for his role in three armed credit union robberiesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Adrian D. Applewhite a/k/a Boons, 37, of Buffalo, NY, who was convicted of aggravated bank robbery, brandishing a firearm in furtherance of a crime of violence, and violating supervised release, was sentenced to serve 229 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that Applewhite participated in the robbery of three credit unions:
- On the morning of October 26, 2017, Applewhite and two other associates robbed the Lakeshore Federal Credit Union on Erie Road in Evans, NY. Applewhite planned the robbery and provided instructions and a firearm to a co-defendant to assist in the robbery.
- On July 25, 2019, two co-defendants entered the South Towns Community Federal Credit Union on South Park Avenue in Lackawanna, NY, while Applewhite, the getaway driver, sat in a car nearby. The two co-defendants sprayed the bank tellers with pepper spray, and went to an unlocked safe, stealing $290,500 in United States currency. Applewhite took a share of the proceeds for his role.
- On November 7, 2019, two co-defendants, armed with a pistol and donning masks and gloves, entered the Clarence Community and School Federal Credit Union on Sheridan Drive in Clarence, NY, and conducted a bank robbery while Applewhite, the getaway driver, sat in a car nearby. A total of $148,793.90 in United States currency was taken. Applewhite took a share of the proceeds for his role.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Stanley Edwards; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Lackawanna Police Department, under the direction of Chief Mark Packard; the Evans Police Department, under the direction of Chief Gregory J Szarowicz; and the Tonawanda Police Department, under the direction of Chief James P. Stauffiger. Additional assistance was provided by the Erie County District Attorney’s Office.
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Browning man admits abusive sexual contact with girl, sending nude images of self to minor girlsRead the Press Release
GREAT FALLS —A Browning man accused of having sexual contact with a girl on the Blackfeet Indian Reservation and to sending nude images of himself to minor girls using social media admitted to charges yesterday, U.S. Attorney Jesse Laslovich said today.
The defendant, Treston Lane Kickingwoman, 28, pleaded guilty to abusive sexual contact and to two counts of transfer of obscene material to a minor. Kickingwoman faces a maximum of life in prison, a $250,000 fine and five years of supervised release on the abusive sexual contact charge and a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the transfer of obscene materials charge.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Jan. 15, 2025. Kickingwoman was detained pending further proceedings.
In a plea agreement filed in the case, the parties agreed that a sentence of between 10 years and 15 years in prison is appropriate.
In court documents, the government alleged that in 2022, a victim, identified as Jane Doe 1, disclosed to law enforcement that when she was about six years old, Kickingwoman sexually abused her one time while she was staying at a house in Browning. Kickingwoman lay down on the bed by Doe 1 and began touching her legs and back. Doe 1 cried and told Kickingwoman that she was going to tell. Kickingwoman responded to the effect that if she did, he would hurt her. Doe 1 further described Kickingwoman touching her inside her underwear and vagina. He stopped when another person started moving in the room.
The government also alleged that in March 2023, an FBI undercover employee with a fictitious persona as a juvenile girl began communicating with Kickingwoman on Facebook. Kickingwoman sent the undercover explicit pictures of his penis and solicited sexually explicit pictures from the undercover. During a search of Kickingwoman’s Facebook account, law enforcement discovered Kickingwoman had sent picture of his nude genitalia to dozens of separate Facebook accounts. Two of the Facebook accounts were for juvenile girls, Jane Doe 2 and Jane Doe 3, who were living on the Blackfeet Reservation. Both Doe 2 and 3 confirmed that they had messaged with Kickingwoman on Facebook Messenger in the summer of 2023 when they were 12 years old and that they told Kickingwoman they were 13. Kickingwoman sent both girls pictures of his nude genitalia and solicited sexually explicit pictures from them. Doe 2 provided the requested photographs to Kickingwoman through his Facebook account.
The U.S. Attorney’s Office is prosecuting the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
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Brothers who led a massive methamphetamine distribution ring sentenced to significant prison timeRead the Press Release
Tacoma – The leader of a methamphetamine trafficking ring was sentenced Friday August 30, 2024, in U.S. District Court for federal felonies related to his drug trafficking, announced U.S. Attorney Tessa M. Gorman. Jesus Venegas-Gatica, 37, of Lakewood, Washington was sentenced to 97 months. At the sentencing hearing Chief U.S. District Judge David G. Estudillo found that Mr. Venegas-Gatica served in a leadership role in a drug trafficking organization that was responsible for transporting as much as 50 pounds of methamphetamine from California to Washington each month. In announcing the sentence, Chief Judge Estudillo said, “Drugs like methamphetamine are dangerous…it affects individuals who are addicted as well as their families. Many have children that are neglected or develop habits based on what they are exposed to, and some lose their parents who overdose. Everyone around that person is left to pick up the mess that person’s addiction created”.
“Methamphetamine goes hand in hand with fentanyl in taking a toll on our community,” said U.S. Attorney Gorman. “Overdose deaths often indicate both illegal drugs in the user’s system. This defendant and his co-conspirators brought huge loads of methamphetamine to our south sound and Olympic Peninsula communities. This sentence will disrupt their damaging conduct.”
According to records filed in the case, brothers Jesus and Jose Venegas-Gatica pleaded guilty to drug distribution charges in April 2024. As part of his plea, Jesus Venegas-Gatica admitted to serving in a commanding and controlling role of the drug trafficking organization and utilizing a series of drug redistributors that he controlled and directed.
The Venegas-Gatica family has been involved in drug trafficking since at least 2012. The criminal complaint details Jose Venegas-Gatica’s arrest in 2019 in Kitsap County with 20 pounds of meth. Jose Venegas-Gatica fled and used aliases to return to drug trafficking. The Kitsap County case is resolved by the plea and sentencing in his federal case. Jose Venegas-Gatica was sentenced to 85 months in prison on July 11, 2024.
The men admit various large-scale methamphetamine deals in Cowlitz, Lewis, Grays Harbor, Pierce, and Thurston Counties. The Venegas family transported 20 to 25 kilograms of methamphetamine to Washington each month. Law enforcement tied these defendants to trafficking more than 105 pounds of meth at locations ranging from casino parking lots to outlet mall stores. In one instance, law enforcement caught a co-conspirator getting off an Amtrak train in Kelso, Washington with 55 pounds of methamphetamine in his luggage that he had transported from Sacramento, California.
In May 2022, authorities recovered another 16 kilos of methamphetamine when they executed search warrants at Jesus Venegas-Gatica’s home and an additional 3 kilograms from various co-conspirators.
This investigation was conducted by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF).
The case is being prosecuted by Assistant United States Attorney Zachary Dillon in consultation with the Lewis County Prosecutor’s Office.
U.S. v. Venegas-Gatica et al 22-5142
Brooklyn Man Pleads Guilty to Bank Fraud and Identity TheftRead the Press Release
BOSTON – A Brooklyn, N.Y. man pleaded guilty today in connection with a scheme to steal over $3 million in COVID relief tax credits using the stolen identity of a corporate executive in New Jersey.
Isaac Aaron Tenryk, 28, pleaded guilty to bank fraud and aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 12, 2024. Tenryk was arrested and charged in May 2024.
Tenryk used a fraudulent driver’s license as well as the name and Social Security number of a corporate executive in New Jersey to open an account at a bank in Boston. He then deposited an approximately $3 million Employee Retention Tax Credit check, payable to the corporate executive’s company, into the fraudulent account.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of aggravated identity theft provides for a mandatory two years in prison in addition to any sentence imposed on the bank fraud charge, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Boston Woman Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP) made available under the Coronavirus Aid, Relief, and Economic Security Act.
Jameela Gross, 28, pleaded guilty to one count of wire fraud. U.S. District Court Judge William G. Young scheduled sentencing for Dec. 5, 2024. Gross, a Heath Street Gang member/associate, was arrested in February 2024 along with over 40 Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges and financial frauds, including COVID-related fraud.
In April 2021, Gross submitted a fraudulent PPP loan application on behalf of her purported business. The application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2020 and the purpose of the loan. Gross also submitted false tax records in support of her loan applications. Based on the fraudulent application, Gross received approximately $18,750, which she then spent on non-business-related expenses.
The Coronavirus Aid, Relief, and Economic Security Act created a temporary loan program directed at small businesses called the Paycheck Protection Program. PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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; Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Bakersfield Felon Charged in Connection with Destructive DeviceRead the Press Release
FRESNO, Calif. — On Aug. 29, 2024, a federal grand jury returned a three-count indictment charging Robert Lawrence Hunt, 40, of Bakersfield, with being a felon in possession of a firearm, unlawful possession of an unregistered firearm, and manufacturing a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2022, Hunt possessed a destructive device that consisted of parts designed for conversion into an explosive and incendiary device containing screws, which meet the federal definition of a firearm. Hunt was previously convicted in Kern County Superior Court of two robberies and a burglary and is prohibited from possessing firearms.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
If convicted of being a felon in possession of a firearm, Hunt faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. He faces up to 10 years in prison and a $250,000 if convicted of possessing an unregistered firearm and manufacturing a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice 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.
Aliquippa Convicted Felon Charged with Possession of Firearm and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of Aliquippa, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Tyland Witherspoon, 27, as the sole defendant. Witherspoon was arrested on August 30, 2024, related to this federal charge.
According to the Indictment, on or about June 19, 2024, Witherspoon, who was previously convicted of a felony, was found to be in possession of a Glock 23 40 caliber pistol along with Smith & Wesson 40 caliber ammunition. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
The law provides for a total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
$2.95M Penalty and Permanent Injunction Resolves Lawsuit Against Verkada Inc. for Alleged Unlawful Commercial Emails, Data Security Failures and Deceptive PracticesRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) announced today that Verkada Inc. (Verkada), a cloud-based security company headquartered in San Mateo, California, has agreed to a settlement requiring it to pay a $2.95 million civil penalty and implement extensive data security measures. This settlement resolves allegations that Verkada violated the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act and engaged in unfair and deceptive practices in violation of the Federal Trade Commission Act.
In a complaint filed in the U.S. District Court for the Northern District of California, the United States alleges that Verkada failed to implement reasonable security measures such as appropriate access management and data protection controls and adequate encryption of customer data. These failures allegedly exposed sensitive information — including security-camera footage of consumers visiting locations like hospitals and schools — to unauthorized access. The complaint additionally alleges that Verkada misrepresented the extent to which it used appropriate data security safeguards and complied with the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The complaint also alleges that Verkada sent numerous promotional emails that failed to clearly and conspicuously notify recipients of their opportunity to opt out of such messages and failed to include a valid physical postal address, and that Verkada did not honor requests to opt out from its promotional emails within ten business days of receiving those requests, all in violation of the CAN-SPAM Act.
To resolve the lawsuit, the parties agreed to a settlement reflected by the stipulated order issued today by the Court. The stipulated order requires Verkada to pay a $2.95 million civil penalty and to comply with the CAN-SPAM Act, including by honoring requests to opt out of its commercial emails. The stipulated order also prohibits Verkada from misrepresenting its data security practices and requires it to establish a comprehensive information security program and undergo regular third-party assessments of its data security practices.
“This settlement underscores the importance of robust data security measures, especially for companies that are themselves in the security industry. Failure to protect sensitive information puts consumers at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to hold companies accountable for such violations.”
“When customers invite companies into private spaces to monitor consumers by using their security cameras and other products, they expect those companies to provide basic levels of security, which Verkada failed to do,” said Director Samuel Levin of the FTC’s Bureau of Consumer Protection. “Companies that fail to secure and protect consumer data can expect to be held responsible.”
Trial Attorneys Cameron A. Brown and Amanda K. Kelly, Senior Trial Attorney James T. Nelson and Assistant Director Zachary A. Dietert of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Vivian Wang for the Northern District of California are handling the case, in coordination with staff from the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
3 September 2024
West Mifflin Felon Pleads Guilty to Multiple Firearms and Drug Trafficking ViolationsRead the Press Release
PITTSBURGH, Pa. - A former resident of West Mifflin, Pennsylvania, pleaded guilty in federal court on August 28, 2024, to charges of violating federal drug trafficking and firearms laws, United States Attorney Eric G. Olshan announced today.
Giante Hilliard, 30, pleaded guilty to four counts before United States District Judge J. Nicholas Ranjan. During his plea hearing, Hilliard admitted facts related to three separate incidents in late March and late May of 2023 that led to the charges in this case.
The first incident took place on March 28, 2023, when Hilliard was involved in an exchange of gunfire outside of a McKees Rocks, Pennsylvania, bar. Video of the incident shows that, moments after Hilliard and another individual left the bar and started to drive off, a third person shot at the car they occupied. Hilliard returned fire from the vehicle’s passenger seat, with several muzzle flashes visible in the video.
In the second incident, on May 8, 2023, Hilliard was the passenger in a vehicle that law enforcement attempted to stop. Rather than complying, the driver rammed three law enforcement vehicles—allowing one of the officers to observe Hilliard with a black firearm—and sped off. Shortly after, law enforcement located the disabled vehicle abandoned near a convenience store. Nearby surveillance video showed the driver and Hilliard leaving the disabled vehicle together, and then splitting up, with Hilliard holding a black bag that he attempted to conceal under a dumpster. The black bag was recovered by law enforcement and found to contain a loaded Smith & Wesson handgun and approximately 300 doses of what laboratory results later confirmed was a heroin and fentanyl mixture. Ballistic testing of the handgun against nearly a dozen 40 caliber casings from the earlier March 28 shooting determined the firearm to be a match with the one used by Hilliard in that earlier incident. The gun previously had been reported stolen. Based on evidence recovered in connection with the May 8 incident, including analysis of cell phones seized from within the disabled vehicle, the government obtained an arrest warrant for Hilliard.
Finally, in the third incident, on May 31, 2023, Hilliard posted on social media a video of himself with another firearm. Based on information from that video and other evidence gathered during the investigation, the government obtained a search warrant for a residence where Hilliard was hiding out and the vehicle that he had been driving. Law enforcement surrounded the house, but Hilliard refused to come out until several hours after officers fired multiple rounds of tear gas into the home. A subsequent search of the residence resulted in the seizure of a box of ammunition from a kitchen drawer and 100 stamp bags in a kitchen cabinet. The bags were marked with the same logo in the same colors of ink as those found in the black bag on May 8, and contained a heroin and fentanyl mixture similar to the May 8 drugs. In the vehicle, investigators also discovered yet another loaded firearm—a “ghost gun” without a serial number.
Prior to these incidents, Hilliard had previously been convicted of a number of other felony offenses, including aggravated assault, possession of unlicensed firearms, and terroristic threats. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Hilliard pleaded guilty to being a felon in possession of a firearm and ammunition in connection with the March 28 incident; possession with intent to distribute heroin and fentanyl as well as possession of a firearm in furtherance of a drug trafficking crime in relation to the May 8 incident; and being a felon in possession of ammunition on May 31. The law provides for a total sentence of not less than five years and up life in prison, a fine of up to $1,750,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Brendan T. Conway and Douglas C. Maloney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Hilliard, along with officers from the Pittsburgh Bureau of Police, Allegheny County Police Department, Homestead Police Department, West Homestead Police Department, and McKees Rocks Police Department.
Washington, D.C., Man Pleads Guilty to Federal Assault CrimeRead the Press Release
BECKLEY, W.Va. – MacArthur Walker Jr., 58, of Washington, D.C., pleaded guilty today to assaulting, resisting, or impeding certain officers or employees involving physical contact.
According to court documents and statements made in court, on May 4, 2024, a law enforcement officer conducted a traffic stop of a vehicle driven by Walker on Interstate 64 near Sandstone, West Virginia. The officer smelled the odor of marijuana and a passenger in Walker’s vehicle said there was approximately 3.5 grams of marijuana in the vehicle. The officer directed Walker to exit his vehicle and stand by the officer’s vehicle while the officer searched Walker’s vehicle. On multiple occasions Walker failed to obey the officer’s commands. Walker admitted that he eventually approached the officer and punched him on the right side of his body after the officer removed something from Walker’s vehicle during the search.
Walker is scheduled to be sentenced on January 3, 2025, and faces a maximum penalty of eight years in prison, up to three years of supervised release, and a $250,000 fine. Walker is also forfeiting a Rossi .38 Special revolver that was seized from a bag found in his vehicle.
United States Attorney Will Thompson made the announcement and commended the investigative work of the National Park Service and the Federal Bureau of Investigation (FBI).
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Alexander A. Redmon is 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. 5:24-cr-88.
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United States Attorney Ritz Announces Ten Federal Indictments for Firearm and Violent CrimesRead the Press Release
Memphis, TN – United States Attorney Kevin G. Ritz announced today the indictments of ten individuals who were charged with federal gun and violent crime offenses in West Tennessee. United States Attorney Ritz also reinforced his office’s commitment to federal prosecution of individuals who commit violent crimes, illegally possess machine-gun conversion devices (also known as “switches”), or commit other federal firearm offenses.
“As alleged, these individuals have committed serious federal crimes involving firearms or violent activity,” said United States Attorney Ritz. “Our office will continue to work with the Project Safe Neighborhoods Task Force and other law enforcement partners to reduce violent crime in our community. The citizens of Memphis and Shelby County deserve to feel safe.”
The following defendants were charged with federal crimes involving switches:
- Wayne Sanders, 31. Sanders was charged in June 2024 with being a felon in possession of firearms and possessing a machine gun on February 24, 2024. A superseding indictment returned on August 29, 2024, charged Sanders with four additional counts related to his arrest by officers in April 2024:
- Possession of a machine gun;
- Being a felon in possession of a firearm;
- Assault of a Task Force Officer with the U.S. Marshals Service; and
- Brandishing a firearm during and in relation to the assault on a federal officer.
- Myles Bowens, 22. Bowens was indicted on August 29, 2024, for being a felon in possession of a firearm and possessing a gun with an attached machine-gun conversion device.
- Taveon Earnest, 20. Earnest was indicted on August 29, 2024, for possessing a gun with an attached machine-gun conversion device.
- Actavious Ellis, 30. Ellis was indicted on August 29, 2024, for possessing a gun with an attached machine-gun conversion device.
The following defendants were charged with other firearm or violent crime offenses:
- Nathenael Tekle, 23. Tekle was indicted on August 29, 2024, for four separate armed business robberies in Memphis, committed over a 10-day span in October and November 2023. He is charged with four counts of robbery of a business affecting interstate commerce and four counts of brandishing a firearm during and in relation to the robberies.
- Caran Stokes, 26. Stokes was indicted on August 29, 2024, on one count of carjacking and one count of brandishing a firearm during and in relation to the carjacking.
- Tony Thomas, 27. Thomas was indicted on August 29, 2024, on one count of carjacking and one count of brandishing a firearm during and in relation to the carjacking.
- Pierre Jones, 34. Jones was indicted on August 29, 2024, for possession of a firearm after having at least three prior convictions for serious drug offenses or violent felonies.
- Marcus Oher, 26. Oher was indicted on August 29, 2024, for being a felon in possession of a firearm on two different occasions.
- Jermaine Cooper, 35. Cooper was indicted on August 29, 2024, for being a felon in possession of a firearm.
These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Task Force; the Project Safe Neighborhoods Gun Task Force; the Memphis Police Department; and the Shelby County Sheriff’s Office. Anyone with information about switches or other federal gun crimes can call 1-800-ATF-GUNS (1-800-283-4867).
The charges and allegations contained in the indictments are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law. If convicted, each defendant’s sentence will be determined by the Court after review of the factors unique to the case, including the defendant’s prior criminal records (if any), the defendant’s role in the offense, and the characteristics of the violation.
These indictments are 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, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results.
United States Attorney Kevin Ritz thanked the Assistant United States Attorneys prosecuting these cases, as well as the law enforcement partners who investigated the cases.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
- Wayne Sanders, 31. Sanders was charged in June 2024 with being a felon in possession of firearms and possessing a machine gun on February 24, 2024. A superseding indictment returned on August 29, 2024, charged Sanders with four additional counts related to his arrest by officers in April 2024:
United States Attorney Announces New Conviction Integrity CommitteeRead the Press Release
SAN FRANCISCO – United States Attorney Ismail Ramsey today announced that the United States Attorney’s Office is establishing a new committee to review innocence claims brought by defendants convicted in the Northern District of California. The Conviction Integrity Committee (Committee) will review and consider claims of factual innocence brought by defendants who were convicted in the Northern District of California.
The purpose of the Committee is to promote fairness and integrity at every stage of a criminal prosecution. It is designed to ensure that credible claims of factual innocence are investigated and addressed. Assistant United States Attorney Jeffrey Bornstein, who also is a Senior Litigation Counsel for the Northern District of California, will Chair the Committee whose members will include the United States Attorney, the First Assistant United States Attorney, and the Executive Assistant United States Attorney. Additional members of the United States Attorney’s Office may participate in review of certain claims filed under the new program depending upon circumstances described in the policy.
In announcing this new program, United States Attorney Ramsey said that he and his office “are committed to ensure that any person who is actually innocent is not the subject of a wrongful conviction.”
The new process is partly modeled on committees that have been formed in other United States Attorney’s Offices including for the Southern District of New York, the Central District of California, and the District of Columbia. In the Northern District of California policy, decisions—including decisions on the merits and whether to reinvestigate a claim of actual innocence—are based only on an independent assessment of the facts and the law; factors such as a defendant’s choice of counsel, media coverage, or political influence play no role in the consideration of cases presented to the Committee.
An application to submit actual innocence claims to the Committee has been placed on the United States Attorney’s Office for the Northern District of California’s website. The process is afforded to all convicted persons regardless of the nature of the offense, whether there was a trial or plea bargain, and whether they are represented by an attorney. Priority may be given to convicted persons who are currently incarcerated or on parole or supervised release.
US Attorney’s Offices Present Information Session on the Americans with Disabilities Act’s Protections for Individuals with Opioid Use DisorderRead the Press Release
GREENSBORO – On August 28, 2024, the U.S. Attorney’s Offices in the Western, Eastern, and Middle Districts of North Carolina, in partnership with the Mountain Area Health Education Center (“MAHEC”), presented an information session on the Americans with Disabilities Act’s protections for individuals with opioid use disorder (“OUD”) and combatting discrimination against people in treatment and recovery. This presentation was hosted by the Assistant United States Attorneys and Civil Rights Coordinators from the Civil Division in each district who work to enforce the Americans with Disabilities Act (“ADA”). Participants learned about the ADA’s coverage, the Act’s applicability to individuals with OUD, and the Department of Justice’s work to investigate alleged violations of the ADA and enforce compliance. The presentation was part of an ongoing webinar series hosted by MAHEC; later modules will include additional information about medicinal and operational for treating for OUD in geriatric care, including skilled nursing facilities.
Ensuring that medical and social service providers do not discriminate on the basis of disability, including OUD, is an issue of general public importance. “Individuals who are in recovery and who have stopped illegally using drugs should not face discrimination when accessing evidence-based treatment,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (USAO-MDNC). “The ADA protects individuals who are prescribed medication for OUD under the supervision of a licensed health care provider, and we will continue to work to remove discriminatory barriers to recovery.”
The Department of Justice’s 2022 guidance on how the ADA protects individuals in treatment or recovery, including individuals who take medications to treat OUD, is available at: https://archive.ada.gov/opioid_guidance.pdf. This is the USAO-MDNC’s second presentation on the ADA’s protections for individuals in recovery; in 2022, the office presented to county personnel who operate jails regarding the ADA’s protections, particularly access to medications for OUD.
Individuals who believe they have been victims of discrimination may file an ADA complaint online at https://www.ada.gov/file-a-complaint/. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at 800-514-0301 (voice) or 1-833-610-1264 (TTY).
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U.S. Attorney's Office Secures Sentencing of Albuquerque Man for Drug Trafficking and Firearms OffensesRead the Press Release
ALBUQUERQUE – An Albuquerque man was sentenced to 248 months in prison for drug trafficking and firearms offenses after being found in possession of over 500 grams of methamphetamine and two firearms in a stolen vehicle.
There is no parole in the federal system.
According to court documents and evidence presented at trial, on February 22, 2022, Octavio Jimenez-Marquez, 38, was driving a stolen black Dodge Ram pickup truck when he was approached by Albuquerque Police Department officers in the parking lot of an apartment complex. When Jimenez attempted to evade detection by moving from the driver's seat to the truck bed, he was detained.
A search of the vehicle revealed:
- Two large bundles of methamphetamine, weighing a total of 529 net grams
- An unloaded revolver stored with the larger methamphetamine bundle
- A loaded assault rifle in the front passenger seat
Photo of rifle
Photo of bullets
During a subsequent interview, Jimenez admitted to using methamphetamine on the day of his arrest and to handling the firearms found in the vehicle. Photographic evidence from Jimenez’s cell phone further implicated him in the possession of the firearms.
Jimenez selfie with revolver
On April 17, 2024, following a three-day trial, a jury returned a verdict convicting Jimenez of possession with intent to distribute methamphetamine; possession of a firearm by an illegal alien; possessing a firearm in furtherance of a drug trafficking crime; and escape.
Upon his release from prison, Jimenez will be subject to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Towanda R. Thorne-James, Special Agent in Charge for the Drug Enforcement Administration El Paso Division, made the announcement today.
The Drug Enforcement Administration investigated this case with assistance from the Bernalillo County Sheriff’s Department, Albuquerque Police Department, Second Judicial District Attorney’s Office, U.S. Department of Homeland Security Immigration and Customs Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Regional Computer Forensics Laboratory. Assistant U.S. Attorneys Louis Mattei and Elaine Y. Ramirez prosecuted the case.
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U.S. Attorney Announces Terrorism Charges Against Senior Leaders of HamasRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Lisa O. Monaco, the Deputy Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Matthew G. Olsen, the Assistant Attorney General for National Security, and Sanjay Virmani, Special Agent in Charge of the FBI Washington Field Office, announced today the unsealing of terrorism, murder conspiracy, and sanctions-evasion charges against six senior leaders of Hamas, a designated foreign terrorist organization. The charges relate to the defendants’ central roles in planning, supporting, and perpetrating the terrorist atrocities that Hamas committed in Israel on October 7, 2023 (the “October 7 Hamas Massacres”), involving the murders and kidnappings of countless innocent civilians, including American citizens, which was the culmination of Hamas’s decades-long campaign of terrorism and violence against Israel and its allies, including American citizens. The defendants are either deceased or remain at large.[1]
U.S. Attorney Damian Williams said: “For decades, Hamas and its leadership have dedicated themselves to the eradication of the State of Israel, and to murdering, maiming, and brutalizing anyone—including dozens of Americans—who stood in their way. The October 7 Hamas Massacres, a depraved act of savagery carried out by Hamas, has, to date, resulted in over 40 American citizens being murdered. This Office has long been dedicated to serving as a bulwark against terrorism and striking blows against its leaders. Our commitment is clear: if you hurt one member of our community, you hurt all of us—and we stand with all victims of Hamas’s reign of terror.”
Attorney General Merrick B. Garland said: “The Justice Department has charged Yahya Sinwar and other senior leaders of Hamas for financing, directing, and overseeing a decades-long campaign to murder American citizens and endanger the national security of the United States. On October 7th, Hamas terrorists, led by these defendants, murdered nearly 1200 people, including over 40 Americans, and kidnapped hundreds of civilians. This weekend, we learned that Hamas murdered an additional six people they had kidnapped and held captive for nearly a year, including Hersh Goldberg-Polin, a 23 year old Israeli American. We are investigating Hersh’s murder, and each and every one of Hamas’ brutal murders of Americans, as an act of terrorism. The charges unsealed today are just one part of our effort to target every aspect of Hamas’ operations. These actions will not be our last.”
Deputy Attorney General Lisa O. Monaco said: “Yahya Sinwar and the other senior leaders of Hamas are charged today with orchestrating this terrorist organization’s decades-long campaign of mass violence and terror—including on October 7th. On that horrible day, Hamas terrorists viciously massacred nearly 1,200 innocent men, women, and children, including over 40 Americans, kidnapped hundreds more, and used sexual violence as a weapon of brutality. Since that horrific day, we have worked to investigate and hold accountable those responsible, and we will not rest until all those who kidnapped or murdered Americans are brought to justice. Our thoughts continue to be with the families of all the victims of this barbaric terrorist attack.”
FBI Director Christopher A. Wray said: “From the moment Hamas launched its horrific attack on October 7, the FBI has been dedicated to identifying and charging those responsible for these heinous crimes. The FBI has and will continue to relentlessly investigate these attacks on civilians, including Americans. Hamas is a Foreign Terrorist Organization with a long history of violence, and the group’s actions have resulted in increased terrorism threats in the U.S. and against American interests throughout the world. Countering terrorism remains our number one priority, and our work continues.”
Assistant Attorney General Matthew G. Olsen said: “The core mission of the National Security Division is to protect Americans from violent terrorists and extremist organizations like Hamas. The atrocities committed by Hamas in Israel on October 7 are intolerable, and the Justice Department will not rest in our pursuit to hold Hamas accountable for perpetrating its campaign of terror, death, and destruction.”
FBI Special Agent in Charge Sanjay Virmani said: “Hamas’s October 7 attack on Israel was a violent massacre in the long history of Hamas’s brutal terrorist reign. The FBI Washington Field Office is determined to continue its work to dismantle Hamas and hold its senior leaders responsible for their conspiracy to plan and perpetrate these heinous acts of terror, including the murder and kidnapping of American citizens.”
According to the allegations contained in the Complaint:[2]
Harakat al-Muqawamah al-Islamiyya, commonly known as Hamas, is a terrorist organization that was founded in 1987, and has been designated as a foreign terrorist organization (“FTO”) by the United States since 1997. From its inception, Hamas’s stated purpose has been to create an Islamic Palestinian state throughout Israel by eliminating the State of Israel through violent holy war, or jihad. Hamas also promotes attacks against the United States and its citizens, and over more than two decades, Hamas has murdered and injured dozens of Americans as part of its campaign of violence and terror.
The defendants charged in the Complaint are all senior leaders of Hamas who have orchestrated, overseen, and supported Hamas’s decades-long campaign of terrorism, including the October 7 Hamas Massacres. They control all aspects of the terrorist organization, including its political and military branches, known as the Politburo and the Izz al-Din al-Qassam Brigades (“al-Qassam Brigades”).
ISMAIL HANIYEH, was the chairman of Hamas’s Politburo from 2017 until his reported death on or about July 31, 2024. Prior to 2017, HANIYEH was the deputy chairman of the Politburo and the leader of Hamas in the Gaza Strip. HANIYEH was based principally in Turkey and Qatar.
YAHYA SINWAR, a/k/a “Abu Ibrahim,” 61, is the leader of Hamas. Previously, beginning in approximately 2017, he was the leader of Hamas in the Gaza Strip, and is one of the founders of the al-Qassam Brigades. SINWAR is based principally in the Gaza Strip.
MOHAMMAD AL-MASRI, a/k/a “Mohammed Deif,” a/k/a “al Khalid al-Deif,” was the commander in chief of the al-Qassam Brigades, a position he held from in or about 2002 until his reported death on or about July 13, 2024. AL-MASRI was based principally in the Gaza Strip.
MARWAN ISSA, a/k/a “Abu Baraa,” was the deputy commander of the al-Qassam Brigades from approximately 2007 until his reported death on or about March 10, 2024. ISSA was based principally in the Gaza Strip.
KHALED MESHAAL, a/k/a “Abu al-Waleed,” 68, was the chairman of Hamas’s Politburo from approximately 2004 to 2017, and is now the head of Hamas’s diaspora office—effectively responsible for Hamas’s official presence outside of the Gaza Strip and the West Bank. MESHAAL is based principally in Qatar.
ALI BARAKA, 57, has been Hamas’s head of National Relations Abroad since approximately 2019, and was previously Hamas’s representative in Lebanon. BARAKA is based principally in Lebanon.
Hamas has pursued its objectives through innumerable acts of brutal terrorist violence, including launching thousands of rockets specifically targeting civilian populations; suicide bombings of restaurants, markets, public transportation systems, and other public spaces; and military-style attacks on towns and residential communities. Hamas’s campaign of terrorism has killed and wounded citizens of Israel, the United States, and many other countries.
On October 7, 2023, Hamas committed its most violent, large-scale terrorist attack to date—the October 7 Hamas Massacres. Hamas targeted civilian populations with a barrage of rockets, before waves of Hamas terrorists breached the border between the Gaza Strip and Israel, infiltrated Israel, and launched attacks on civilians, by land, sea, and air. Hamas sent thousands of armed fighters into southern Israel, where they carried out the massacres of over a thousand people and the kidnappings of more than 200 others. Hamas terrorists attacked civilians, firing handguns, assault rifles, and handheld rocket launchers, in small residential communities in Kfar Aza, Be’eri, Nir Oz, Nahal Oz, Re’im, Holit, Zikim, Kerem Shalom, Sufa, and others; the Israeli town of Sderot; and a music festival held near Re’im; among other places. Armed Hamas operatives attacked and shot civilians, including children, sometimes with machineguns and sometimes at point blank range, and weaponized sexual violence against Israeli women, including through rape and genital mutilation. Hundreds of civilians, including Americans, and Israeli soldiers, were killed and wounded; other victims, including Americans, were kidnapped, taken hostage, and brought into Gaza by Hamas. As of the date of the Complaint, over 40 American citizens were among those murdered, and at least eight American citizens were taken hostage or remain unaccounted for.[3] Most recently, Hamas executed a U.S. citizen who was taken hostage by Hamas during the October 7 Hamas Massacres and remained in captivity until he was murdered.
Hamas raises money to fund its terrorist activities through a variety of methods, including by soliciting and receiving cryptocurrency payments, advertising the ostensible anonymity of such transactions. Since 2019, Hamas’s military wing has used social media and other platforms to call for cryptocurrency contributions from supporters abroad, including in the United States, to Hamas-controlled virtual wallets, explicitly acknowledging that those payments would be used to fund Hamas’s campaign of violence. Through these mechanisms, Hamas has received tens of millions of dollars in cryptocurrency payments to fund its activities.
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The Complaint unsealed today charges each of the defendants with: (1) conspiring to provide material support to a foreign terrorist organization resulting in death, which carries a maximum penalty of life in prison; (2) conspiring to provide material support for acts of terrorism resulting in death, which carries a maximum penalty of life in prison; (3) conspiring to murder U.S. nationals outside the United States, which carries a maximum penalty of life in prison; (4) conspiring to bomb a place of public use resulting in death, which carries a maximum penalty of death or life in prison; (5) conspiring to use weapons of mass destruction resulting in death, which carries a maximum penalty of death or life in prison; (6) conspiring to finance terrorism, which carries a maximum penalty of 20 years in prison; and (7) conspiring to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants would be imposed by a judge.
Mr. Williams praised the outstanding investigative work of the FBI Washington Field Office, Counterterrorism Division, and the FBI’s New York Joint Terrorism Task Force. Mr. Williams also thanked the FBI Legal Attaché Office in Tel Aviv, Israel, the FBI Victim Services Division, and the Department of Justice’s National Security Division, Counterterrorism Section for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, Sarah L. Kushner, Michael D. Lockard, Ben Arad, and Samuel L. Raymond are in charge of the prosecution, with assistance from Trial Attorneys Alicia Cook and C. Alexandria Bogle of the Counterterrorism Section.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] Since the filing of this Complaint, three of the defendants—Ismail Haniyeh, Mohammad Al-Masri, a/k/a “Mohammed Deif,” a/k/a “al Khalid al-Deif,” and Marwan Issa, a/k/a “Abu Baraa”—are reported to have been killed.
[2] As the introductory phrase signifies, the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[3] Since the filing of this Complaint, two of the original ten individuals believed to have been taken hostage or who otherwise were unaccounted for have been confirmed to have been murdered.
Two foreign nationals sentenced for victimizing U.S. companies through business email compromise schemeRead the Press Release
ALEXANDRIA, Va. – A Nigerian national was sentenced today to five years and three months in prison and ordered to pay nearly $5 million in restitution for participating in a computer hacking and business email compromise (BEC) scheme that caused over $5 million in losses to multiple victims in the United States and elsewhere. Franklin Ifeanyichukwu Okwonna, 34, pled guilty on May 20 to conspiracy to commit wire fraud and aggravated identity theft for his role in the scheme.
Okwonna’s co-defendant, Nigerian national Ebuka Raphael Umeti, 35, was sentenced on Aug. 27 to 10 years in prison and ordered to pay nearly $5 million in restitution. Umeti was convicted by a federal jury on June 13 of conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to cause intentional damage to a protected computer, and intentional damage to a protected computer.
According to court documents and evidence presented at Umeti’s trial, between February 2016 and July 2021, Umeti, Okwonna, and their co-conspirators caused millions of dollars in unauthorized wire transfers by sending victim businesses phishing emails. These emails falsely appeared as though they originated from trusted sources, such as a bank or a vendor. After the victim opened an attachment, their computers would be infected with malicious software or “malware” that allowed the defendants and their co-conspirators to gain unauthorized access to the victim’s computer systems and email accounts. The defendants and their co-conspirators then exploited that access to obtain sensitive information, which they used to deceive individuals at the victim companies into executing wire transfers to accounts specified by the co-conspirators. As a result of this scheme, the defendants and their co-conspirators caused or attempted to cause over $5 million in losses to the victim companies.
The FBI Washington Field Office investigated the case.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; and David Sundberg, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Laura D. Withers for the Eastern District of Virginia and Senior Counsel Thomas S. Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. CCIPS Senior Counsel Aarash Haghighat assisted in the investigation and indictment of the case. The Justice Department’s Office of International Affairs worked with the FBI’s Legal Attaché Office in Nairobi, the U.S. Marshals Service, and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigation to secure the extradition of Umeti and Okwonna.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-123.
Two South Dakota Men Indicted for Distribution of a Controlled Substance Resulting in DeathRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell, South Dakota Attorney General Marty Jackley, and authorities in Clay and Yankton Counties announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man and a Yankton, South Dakota, man for Distribution of a Controlled Substance Resulting in Death.
Evan Wylde Nelson, age 18, and Udda Ambi Kobaba, age 19, were indicted in August of 2024. Nelson appeared before U.S. Magistrate Judge Veronica L. Duffy on August 29, 2024, and Kobaba appeared before U.S. Magistrate Judge Veronica L. Duffy on August 30, 2024. Nelson and Kobaba pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 20 years in custody, up to life and/or a $1,000,000 fine, a mandatory minimum of three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about between December 20, 2023, and December 22, 2023, in the District of South Dakota, the defendants, Evan Wylde Nelson and Udda Ambi Kobaba, a/k/a “Tayski,” intentionally distributed fentanyl, a Schedule II controlled substance, and the distribution of said fentanyl resulted in the death of a victim.
In May of 2024, Nelson was indicted by a Yankton County Grand Jury on three felony counts: one count of Distribution of a Controlled Substance to a Minor Resulting in Death; one count of Distribution of a Controlled Substance to a Minor; and one count of Unauthorized Possession of a Controlled Substance, which is a Class 5 Felony. The state charges will now be dismissed due to the federal indictment.
“We appreciate the working relationship with all of the agencies involved,” said Attorney General Jackley. “Fentanyl cases, especially ones leading to death, need to be strongly prosecuted by all law enforcement agencies and prosecutors.”
U.S. Attorney Alison Ramsdell agreed, “We are fortunate to have good working relationships with our state counterparts, which allows law enforcement agencies to seek federal prosecution when appropriate. Here, where it is alleged that the distribution of fentanyl resulted in the death of a minor victim, the U.S. Attorney’s Office will aggressively pursue a just result in federal court.”
The charge is merely an accusation and Nelson and Kobaba are presumed innocent until and unless proven guilty.
Agencies involved in the investigation include the South Dakota Division of Criminal Investigation, Clay County Sheriff’s Office, Vermillion Police Department, Yankton Police Department, Drug Enforcement Administration, and the Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Mark Joyce is prosecuting the case.
Nelson and Kobaba were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Two Quad Cities Men Found Guilty of Conspiracy to Commit Armed Robbery and Multiple Armed Robbery and Firearm ChargesRead the Press Release
PEORIA, Ill. – A federal jury on August 23, 2024, found two Quad Cities, Illinois, men – Emmanuel Lance Howard, 24, of Davenport, Iowa, and Evander Allen Jordan, 39, of Rock Island, Illinois – guilty of conspiracy to commit armed robbery and multiple robbery and firearms charges following a two-week trial in Peoria, Illinois, before Chief U.S. District Judge Sara Darrow.
During the trial, the government presented evidence to establish that in the summer and fall of 2020, Howard and Jordan committed ten separate armed robberies in the Quad Cities area, including five armed robberies of retail stores in Rock Island and Moline, one armed robbery and shooting of a man, and a carjacking of a woman in Rock Island, along with three armed robberies of retail stores in Davenport. During their violent crime spree, in which they stole firearms, money, jewelry, and other property, Howard and Jordan shot two men, pistol-whipped and assaulted others, and repeatedly threatened the lives of all of the more than 20 victims. One such victim repeatedly begged for her life and another was so terrified that she feared her young son at home, across the street from the robbery, would hear his mother being shot.
Following an extensive investigation involving the Rock Island, Davenport, and Moline police departments, as well as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and Federal Bureau of Investigation (“FBI”), Howard and Jordan were charged in 2021 in a fifteen-count indictment with one count of conspiracy to commit armed robbery, five counts of Hobbs Act robbery, one count of carjacking, six counts of brandishing or discharging a firearm in furtherance of a crime of violence, and one count of possession of a firearm by a convicted felon. These charges were the result of Howard and Jordan committing the following armed robberies in Rock Island, Moline, and Davenport:
• July 31, 2020: Little Caesar’s on 18th Avenue Rock Island, Illinois
• August 14, 2020: Little Caesar’s on West Locust Street, Davenport, Iowa
• September 5, 2020: MidWest Title Loans on 11th Street, Rock Island, Illinois
• September 12, 2020: Pizza Hut on Locust Street, Davenport, Iowa
• September 12, 2020: Papa John’s on 19th Avenue, Moline, Illinois
• September 18, 2020, Carjacking, Rock Island, Illinois
• October 4, 2020: Domino’s Pizza on 14th Avenue, Rock Island, Illinois
• October 9, 2020: Kwik Shop on Telegraph Road, Davenport, Iowa
• October 16, 2020: Pawn King on 11th Street, Rock Island, Illinois
Both Howard and Jordan have been detained in federal custody since their federal arrests in 2021.
The statutory penalty for the conspiracy to commit robbery and robbery offenses is up to 20 years in prison; the statutory penalty for the carjacking offense is up to 15 years in prison; the statutory penalty for the brandishing of a firearm in furtherance of a crime of violence offenses is a minimum consecutive sentence for each offense of seven years to life in prison; the statutory penalty for the discharge of a firearm in furtherance of a crime of violence offense is a minimum consecutive sentence of 10 years to life in prison; and the statutory penalty for the possession of a firearm by a convicted felon offense is up to 10 years in prison. As a result, Howard faces a statutory mandatory minimum sentence of 45 years and up to life in prison for just the firearm offenses; because Jordan has a prior federal conviction for possession of a firearm during a crime of violence, he faces a minimum of 63 years to life in prison just for the firearms offenses.
U.S. Attorney Gregory K. Harris stated following the trial: “These two defendants terrorized the Quad Cities community in 2020 by committing ten separate armed robberies without any regard for human life or the law, needlessly leaving more than 20 victims in the wake of their violence and intimidation. The jury’s verdict appropriately holds the defendants accountable under the law for their criminal conduct. I especially want to thank the Rock Island, Davenport, and Moline police departments and the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, and Firearms for their outstanding, tireless, and professional work in this matter. This Office and our federal and state partners will continue to hold those persons accountable for their criminal acts of violence.”
“On behalf of the Moline Police Department and the City of Moline, I’d like to express my sincere gratitude to all involved in bringing this case to justice,” said Darren Gault, Chief of Police for the Moline Police Department. “Over several weeks in 2020 these dangerous individuals went on a crime spree we usually don’t see in the Quad Cities. I’d like to highlight the extraordinary cooperation and coordination across multiple agencies in both Illinois and Iowa as well as the state and federal law enforcement agencies. Without this coordinated effort, these individuals may have evaded being held accountable for their actions. The Quad Cities should be proud of the remarkable work being done by these men and women in law enforcement and at the United States Attorney’s Office. Our partnerships are strong and the message is clear: if you commit these crimes in our communities, you will be held accountable.”
“This verdict of guilt will hold these two men accountable for the mayhem they created throughout the community,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “I commend the partnership among our local and federal law enforcement agencies for their diligence in investigating these crimes and the United States Attorney’s Office for prosecuting this case.”
The case investigation was conducted by the Rock Island, Davenport, and Moline Police Departments, as well as the ATF and FBI. Assistant U.S. Attorneys Jennifer Mathew, Timothy Bass, and Jeffrey Kienstra represented the government in the prosecution.
Two Foreign Nationals Sentenced for Victimizing U.S. Companies Through Business Email Compromise SchemeRead the Press Release
A Nigerian national was sentenced today in the Eastern District of Virginia to five years and three months in prison and ordered to pay nearly $5 million in restitution for participating in a computer hacking and business email compromise scheme that caused over $5 million in losses to multiple victims in the United States and elsewhere. Franklin Ifeanyichukwu Okwonna, 34, pleaded guilty on May 20 to conspiracy to commit wire fraud and aggravated identity theft for his role in the scheme.
Okwonna’s co-defendant, Nigerian national Ebuka Raphael Umeti, 35, was sentenced on Aug. 27 to 10 years in prison and ordered to pay nearly $5 million in restitution. Umeti was convicted by a federal jury on June 13 of conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to cause intentional damage to a protected computer, and intentional damage to a protected computer.
According to court documents and evidence presented at Umeti’s trial, between February 2016 and July 2021, Umeti, Okwonna, and their co-conspirators caused millions of dollars in unauthorized wire transfers by sending victim businesses phishing emails. These emails falsely appeared as though they originated from trusted sources, such as a bank or a vendor. After the victim opened an attachment, their computers would be infected with malicious software, or “malware,” that allowed the defendants and their co-conspirators to gain unauthorized access to the victim’s computer systems and email accounts. The defendants and their co-conspirators then exploited that access to obtain sensitive information, which they used to deceive individuals at the victim companies into executing wire transfers to accounts specified by the co-conspirators. As a result of this scheme, the defendants and their co-conspirators caused or attempted to cause over $5 million in losses to the victim companies.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office investigated the case.
Senior Counsel Thomas S. Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Laura D. Withers for the Eastern District of Virginia prosecuted the case. CCIPS Senior Counsel Aarash Haghighat assisted in the investigation and indictment of the case. The Justice Department’s Office of International Affairs worked with the FBI’s Legal Attaché Office in Nairobi, the U.S. Marshals Service, and Kenya’s Office of the Director of Public Prosecutions and Directorate of Criminal Investigation to secure the extradition of Umeti and Okwonna.
Three Individuals Indicted in Mortgage, COVID-19 Relief Program Fraud SchemesRead the Press Release
CAMDEN, N.J. – Three New Jersey residents were indicted for their role in a multimillion-dollar mortgage fraud scheme and two of the three were indicted for fraudulently obtaining approximately $3 million of federal Economic Injury Disaster Loans, U.S. Attorney Philip R. Sellinger announced today.
Arthur Spitzer, 37, of Toms River, New Jersey, is charged with eight counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, two counts of aggravated identity theft, one count of making a false statement to a financial institution, and 12 counts of money laundering. Mendel Deutsch, 38, of Toms River, is charged with three counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, one count of making a false statement to a financial institution, and two counts of money laundering. Joshua Feldberger, 42, of Howell, New Jersey, is charged with one count of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, and one count of making a false statement to a financial institution. The defendants were arraigned today before U.S. District Judge Edward S. Kiel in Camden federal court.
According to the indictment:
In 2019 and 2020, Spitzer orchestrated a scheme to defraud property owners and mortgage lenders by obtaining mortgage loans for real estate properties that he did not own. Spitzer identified properties in New Jersey and Brooklyn, New York, that had either no mortgages or mortgages in amounts significantly lower than the property’s market value. On six occasions, Spitzer obtained mortgage loans by misrepresenting that he had the authority to obtain mortgage loans secured by properties he did not own. Spitzer used fraudulent documents purporting to transfer control to him, which contained forged signatures of the true property owners. The mortgage loan proceeds were disbursed to bank accounts controlled by Spitzer or were used to otherwise benefit Spitzer, such as to pay off his debts. Spitzer then caused the mortgage loans to default by not making the required payments, leaving the true property owners subject to foreclosure and eviction.
In June 2020, Spitzer conspired with Deutsch and Feldberger to make it appear as if Spitzer owned three properties in Brooklyn, and agreed to sell them to Deutsch, who obtained a $4 million mortgage loan in connection with the transaction. Feldberger facilitated the fraudulent transaction as the owner of the settlement company that handled the transaction. The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; they failed to disclose a short-term loan obtained shortly before the transaction’s closing; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan. The defendants then used the mortgage loan proceeds to fund Deutsch’s down payment, which he had supposedly already provided.
In 2020 and 2021, Spitzer and Deutsch each fraudulently obtained millions of dollars of government loans that were intended for small businesses distressed by the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic. To obtain an EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and revenues or expenses.
Spitzer and Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.
The counts of bank fraud conspiracy, bank fraud, and making a false statement to a financial institution, are each punishable by a maximum of 30 years in prison and a $1,000,000 fine. The counts of wire fraud conspiracy and wire fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of money laundering are each punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of aggravated identity theft carry a mandatory two-year prison sentence.
U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the charging instrument are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
spitzeretal.indictment.pdfThompson Falls man admits illegal possession of firearms, shortened rifleRead the Press Release
MISSOULA — A Thompson Falls man with two prior federal felony convictions today admitted to illegally possessing a firearm and to possessing a shortened rifle after law enforcement found numerous guns at his residence, U.S. Attorney Jesse Laslovich said.
The defendant, James Vernon Day, Jr., 55, pleaded guilty to prohibited person in possession of a firearm and to possession of an unregistered firearm. Day faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Jan. 3, 2025. Day was released pending further proceedings.
The government alleged in court documents that Day previously had been convicted in Montana of prohibited person in possession of a firearm and of illegal sale of outfitted mountain lion hunts and was prohibited from possessing firearms. The government further alleged that in December 2023, Sanders County Sheriff’s Office deputies arrived at Day’s property to serve a search warrant for solen vehicle parts. Day was present on the property and confronted deputies, but retreated into his residence as the search began. Day told deputies they could not enter his residence. During the search, Day was generally uncooperative with law enforcement’s request to exit his residence and speak with them.
During the search, deputies located a .44-caliber rifle in a shop building, a building to which they determined Day had primary access. The shop also contained three gun safes that contained gun parts, including a barrel from an assault rifle and a barrel from a shotgun. Deputies also found a freshly killed deer head. Day eventually exited his residence and was arrested. In a search of Day’s residence, deputies located an additional 36 firearms, which were strewn around the house. One of those firearms, found on the kitchen floor, was a .222-caliber rifle that was determined to have a barrel of less than 16 inches. Possession of a firearm with a shortened barrel is against federal law. In Day’s vehicle, deputies found a .44-caliber revolver.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Sanders County Sheriff’s Office conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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The “M30 King of Fresno” Pleads GuiltyRead the Press Release
FRESNO, Calif. — Horacio Torrecillas Urias Jr., 23, of Fresno, pleaded guilty today to distribution of fentanyl and conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. Similar to authentic oxycodone M30 tablets, they are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. The investigation, dubbed “Operation Killer High,” aimed to search for the drug dealers believed to have supplied the toxic pills that caused the spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Torrecillas Urias, the self-proclaimed “M30 king of Fresno.”
Torrecillas Urias was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine, and methamphetamine. He and his co-defendants were then distributing these illicit drugs to dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 counterfeit M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition.
Operation Killer High resulted in charges for 17 other defendants, and all but one have now pleaded guilty. The remaining co-defendant, Alma Garza, is set for trial on Sept. 24, 2024.
This case is the result of an investigation by the Fentanyl Overdose Resolution Team (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department), the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office, with assistance from the Bakersfield Police Department and the California Highway Patrol. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
Torrecillas Urias is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 2, 2024. Torrecillas Urias faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
St. Louis Felon Sentenced to 97 Months in Prison After a Shooting and Being Caught with Stolen GunRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Tuesday sentenced a convicted felon who was caught by police with a stolen gun after fleeing from a carjacked vehicle to 97 months in prison.
The sentence for Cedric Cross Sr., 43, consisted of 85 months for being a felon in possession of a firearm and 12 more months for violating his supervised release from a prior felon in possession case in U.S. District Court in East St. Louis. In 2017, he was sentenced there to 63 months in prison after being caught with a stolen pistol.
Cross pleaded guilty to the new charge in May, admitting that he was caught with a gun by Saint Louis Metropolitan Police Department officers on Jan. 30, 2022, after jumping out of a carjacked truck. Cross was a passenger and denied being involved in the carjacking.
Judge Fleissig found by a preponderance of the evidence that Cross was also responsible for the non-fatal shooting of his paramour in the Walnut Park West neighborhood of St. Louis the day before the carjacking. Ballistics evidence from the shooting matched the handgun found with Cross the next day.
The case was investigated by the Saint Louis Metropolitan Police Department. Assistant U.S. Attorney Catherine Hoag prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Spencer Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
A man who was prohibited from possessing a firearm pled guilty August 29, 2024, in federal court in Sioux City.
Casey Tuttle, 26, from Spencer, Iowa, was convicted of being a prohibited person in possession of a firearm. Tuttle was previously convicted in the Iowa District Court of burglary, third degree; possession of methamphetamine, third or subsequent offense; and burglary, second degree. Each of these are felony convictions which prohibited Tuttle from possessing any firearm or ammunition.
At the plea hearing, evidence showed that on April 4, 2024, Spencer Police Department officers stopped Tuttle riding his bike in the dark without taillights or reflectors. It was then determined that Tuttle had outstanding arrest warrants, so he was placed under arrest. During a search of Tuttle at arrest, law enforcement located .22 ammunition, 1 gram of marijuana, multiple knives, 1 gram of methamphetamine, a German .22 caliber revolver, a methamphetamine pipe, scale, and pills. Tuttle admitted being a drug user and possessing the firearm which he obtained in exchange for methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Tuttle remains in custody of the United States Marshal pending sentencing. Tuttle faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Spencer, Iowa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-4032. Follow us on Twitter @USAO_NDIA.
Southwest Virginia Drug Ring Arrested for Trafficking Fentanyl, MethamphetamineRead the Press Release
ABINGDON, Va. – Ten individuals who conspired to distribute large quantities of methamphetamine and fentanyl throughout Southwest Virginia were arrested last week on federal charges.
Arrested last week are:
- Matthew Ryan “Red” Addington, of Pound, Va.
- Ashley Linden Beverly Jr., of Pound, Va.
- Brandon Gene Boggs, of Pound, Va.
- Eric Lee Coffey, of Norton, Va.
- James Eugene Gamble, of Wise, Va.
- Thomas Ray Houston Jr., of Blountville, Tenn.
- Keith Edward Payne Jr., of Wise, Va.
- Brittany Chantae Rose, of Pound, Va.
- Cody Allan Rose, of Pound, Va.
- Andora Lee Smith, of Pound, Va. and Mayking, Kentucky
According to court documents, between 2021 and 2024, law enforcement in Wise County, Virginia investigated the widespread distribution of methamphetamine and fentanyl by the ten defendants and subsequently made various arrests after conducting interviews and executing controlled drug buys from multiple members of the conspiracy. The investigation revealed that members of the drug ring traveled to drug supply sources in both North Carolina and Kentucky to obtain multiple pounds of fentanyl pills, fentanyl powder, and methamphetamine and then brought the drugs back to southwest Virginia for further distribution.
United States Attorney Christopher R. Kavanaugh and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wise County Sheriff’s Office, the Southwest Drug Task Force (consisting of the Wise County Sheriff’s Office, Scott County Sheriff’s Office, Lee County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and Virginia State Police), the Clintwood Police Department, the Pennington Gap Police Department, the Lee County Sheriff’s Office, the Dickenson County Sheriff’s Office, the Kentucky State Police, the Winchester (KY) Police Department, the Fleming-Neon (KY) Police Department, and the United States Marshals Service investigated the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Man Sentenced for 2022 Patrick County Gun Store BurglaryRead the Press Release
ROANOKE, Va. – A South Carolina man, who burglarized a Patrick County, Virginia gun store in the pre-dawn hours of September 22, 2022, was sentenced recently to 100 months in federal prison.
Bradley Wayne McGraw, 43, of Gaffney, S.C., pled guilty earlier this year to one count of stealing firearms from a federal firearms licensee and one count of possession of a firearm by a convicted felon. A second defendant, Justin Whitaker, of Mooresville, North Carolina, was sentenced earlier this month.
According to court documents, in September 2022, McCraw and Whitaker stole a truck, attached a chain from it to the back door of the Rabbit Ridge Guns Shop and Range, and yanked it open. Surveillance video captured them wearing masks and entering the store where they proceeded to steal more than a dozen firearms, including shotguns, rifles, and pistols.
United States Attorney Christopher R. Kavanaugh and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case with assistance from the Patrick County Sheriff’s Office. The Sheriffs’ Offices in Cherokee County, South Carolina, Spartanburg, South Carolina, and Cleveland County, North Carolina also assisted with the investigation.
Assistant U.S. Attorney Kristin B. Johnson is prosecuting the case.
Sacramento Woman Indicted for Fraudulent Investment SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 32-count indictment against Maria Dickerson, aka Dulce Pino, 47, of Sacramento, charging her with 24 counts of wire fraud, one count of securities fraud, and seven counts of money laundering, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following her arrest.
According to the indictment, from 2020 through 2024, Dickerson created an investment scheme, selling interest in her illusory shell company, Creative Legal Fundings of California, to investors. Dickerson promised investors that their investments were safe and secure and backed by substantial starting capital. Dickerson promised approximately 140 investors a fixed percent of return per month on their principal investment with additional compounding monthly interest if they left their money invested with her. In reality, Dickerson used new investor money to pay off prior investors, to fund a lavish lifestyle, and to purchase Mercedes-Benz vehicles and a home in Sacramento. Dickerson did not register the sale of her securities with the Securities and Exchange Commission. Dickerson took money from investors and collected millions of dollars in investment funds solicited with her false promises and representations.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Alabama Securities Commission. Assistant U.S. Attorneys Kristin F. Scott and Rosanne L. Rust are prosecuting the case.
The Securities and Exchange Commission is filing a parallel action against Dickerson. The Business, Consumer Services and Housing Agency of the California Department of Financial Protection and Innovation previously filed a Desist and Refrain Order against Dickerson.
If convicted, Dickerson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud. Additionally, she faces a maximum statutory penalty of 10 years in prison and a fine of $250,000 for each count of money laundering. On the securities fraud charge, Dickerson faces a statutory maximum penalty of 20 years in prison and a fine of up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rochester man sentenced to 14 years in prison for home invasion targeting drug dealersRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Raekwon Green a/k/a Bundy a/k/a Bundles, 28, of Rochester, NY, who was convicted of Hobbs Act Conspiracy and Attempted Hobbs Act Robbery, was sentenced to serve 14 years in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between February 2020 and April 1, 2020, Green conspired with Robert Forbes, Jr., and others, to commit four home invasion robberies in Rochester and Greece, NY. During some of the home invasions, individuals were restrained, pistol-whipped, and/or suffered injuries, while the defendants took controlled substances and U.S. currency from the homes.
Robert Forbes, Jr. was previously convicted and sentenced to serve 19 years in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division, and the Rochester Police Department, under the direction of Chief David Smith.
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Previously Removed Foreign National and Felon Indicted on Drug & Gun CrimesRead the Press Release
Salt Lake City, Utah – A foreign national living in Utah, who is also a felon, was ordered by the court to remain in custody after a federal grand jury in Salt Lake City indicted him for multiple federal crimes.
According to court documents, Armando Reyes-Ascension, 43, of Salt Lake City, a foreign national, who was previously deported from the United States in July 2003 and March 2020, illegally reentered the United States in May 2024.
As alleged in court documents, Salt Lake City police officers received multiple anonymous tips of a man selling large amounts of fentanyl pills from an apartment in Salt Lake City. During surveillance, officers observed a man, later identified as Reyes-Ascension, exit the apartment and make multiple “short stay” stops in known drug areas. Officers then stopped Reyes-Ascension and obtained a search warrant. During a search of Reyes-Ascension’s vehicle, officers found more than 7,000 pills that field-tested positive for fentanyl. Officers also found more than $32,000 cash. In June 2024, Reyes-Ascension was deported a third time from the United States.
In August 2024, Reyes-Ascension, was found back in the United States illegally. According to court documents, on August 7, 2024, Salt Lake City Police officers were patrolling the area of 1300 South Main Street when they observed a man wearing a backpack and riding a bicycle against traffic. Officers stopped the man, later identified as Reyes-Ascension, for a traffic violation. During an initial search, officers found drug paraphernalia and Reyes-Ascension was taken into custody. During a further search of his backpack, officers found a Smith and Wesson M&P Shield Firearm with a loaded magazine, more than 2,000 pills that field-tested positive for fentanyl, and more than $55,000 cash. Officers also located several dangerous weapons and coins. In total, over the span of three months, Reyes-Ascension, was found in possession of more than 9,000 fentanyl pills, a loaded firearm, several dangerous weapons, and $87,000 cash.
Photo Credit: Salt Lake City Police Dept. Photo Credit: Salt Lake City Police Dept.Reyes-Ascension is charged with reentry of a previously removed alien, possession of fentanyl with intent to distribute, and felon in possession of a firearm. His initial appearance on the indictment was August 29, 2024, at the United States District Courthouse in downtown Salt Lake City.
United States Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the U.S. Department of Homeland Security Enforcement and Removal Operations (ERO), U.S. Immigration and Customs Enforcement (ICE), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Salt Lake City Police Department, and the FBI Salt Lake City Field Office.
Assistant United States Attorney, Bryan N. Reeves, of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Non-Profit Americans for Peace Now, Inc. to Pay $261,890 to Resolve PPP Fraud AllegationsRead the Press Release
WASHINGTON – Americans For Peace Now, Inc., a Washington, D.C., based nonprofit organization, has agreed to pay $261,890 to settle allegations that the organization violated the False Claims Act when it applied for and received a $130,945 second-draw loan under the Paycheck Protection Act Program of the CARES Disaster Relief Program, and when it further applied for and was granted forgiveness of the entire amount of the loan.
The agreement was announced by U.S. Attorney Matthew M. Graves for the District of Columbia and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General, Eastern Region.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was created to provide emergency financial support to Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small business and other entities, including non-profit organizations, struggling to pay employees and other business expenses. Under the applicable provision of the CARES Act, a business concern or other entity, including a nonprofit organization, is not eligible to receive a second draw loan if it is primarily engaged in political or lobbying activities, which shall include any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public document.
At the time it applied for the second draw PPP loan, Americans For Peace Now certified to the SBA in the loan application that it was “not a business concern or entity primarily engaged in political or lobbying activities, including any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public documents.” It further certified in the loan forgiveness application that it met the conditions for receiving the second draw PPP loan. Americans For Peace Now contends that any misstatements in this application were inadvertent.
Under the False Claims Act, a party found to violate the Act must pay three-times the amount of damage to the United States. Had Americans For Peace Now been found liable to the United States under the False Claims Act, it would have been ordered to pay three times the amount of the loan and lost interest, along with civil penalties for each certification made in the loan application and forgiveness application. In connection with this settlement, Americans For Peace Now agreed to pay an amount equal to two-times the loan amount, or $261,890.
The settlement announced today stems from a Federal investigation that was initiated when another public interest group, TZAC, filed a whistleblower complaint pursuant to the qui tam provisions of the False Claims Act. The claims resolved by the civil settlement are allegations only. There has been no determination of liability in the civil case.
“Funds allocated for the Paycheck Protection Act Program had a specific purpose: get businesses eligible for the Program through the global pandemic,” said U.S. Attorney Graves. “When ineligible businesses falsely claimed to be eligible, they harmed both the taxpayers who funded the program and the eligible businesses that needed it.”
“Misusing SBA program funds is a serious violation that affects the integrity of the assistance programs meant to support those in genuine need,” said Special Agent in Charge McCall-Braithwaite. “This settlement reflects our commitment to holding accountable those who seek to exploit government resources. We appreciate the diligent work of the U.S. Attorney’s Office and our law enforcement partners in pursuing justice in this matter.”
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, SBA’s Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties,” said SBA General Counsel Therese Meers.
The civil settlement was the result of an investigation by Assistant U.S. Attorney Stephen DeGenaro and Auditor Timothy Hurley of the U.S. Attorney’s Office for the District of Columbia. U.S. Attorney Graves commended Attorneys Gary Fox and Kandace Zelaya of the U.S. Small Business Administration Office of the General Counsel for their assistance in the investigation and settlement negotiations. The case is captioned U.S. ex rel. TZAC v. Americans For Peace Now.
Tips and complaint regarding potential fraud affecting COVID-19 government relief programs can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or by submitting a NCDF Web Complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New Orleans Woman Sentenced for Cares Act Fraud, False Statements to the IRS, and Theft of Government FundsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TAMIKA CHAPPELL (“CHAPPELL”), age 40, of New Orleans, was sentenced on August 29, 2024 to five (5) years of probation by U.S. District Court Judge Carl J. Barbier after previously pleading guilty to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), making false statements to the IRS, and theft of government funds.
The CARES Act is a federal law enacted on March 29, 2020, to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
In addition to probation, CHAPPELL was ordered to pay $210,274 in restitution to the Small Business Administration, $155,359 to the Internal Revenue Service, $96,150 to the Social Security Administration, and $23,125 to a victim bank. She also has to pay a mandatory $300 special assessment fee.
For more information on the Department of Justice’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.
This case was investigated by an agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 15 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
U.S. Attorney Evans praised the work of PRAC member U.S. Department of Veterans Affairs - Office of Inspector General, the Social Security Administration, and the Internal Revenue Service – Criminal Investigations, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit was in charge of the prosecution.
New Orleans Man Sentenced for Distributing Fentanyl and Illegally Possessing a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA –KENTRELL HUBBARD (“HUBBARD”), age 25, of New Orleans, was sentenced on August 22, 2024 by U.S. District Judge Wendy B. Vitter to 70 months in prison, followed by 3 years of supervised release, and a $200 mandatory special assessment fee, after previously pleading guilty to distributing fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and, to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on June 9, 2023, a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives, purchased fentanyl from HUBBARD after meeting him near a supermarket that was a known hotspot for drug trafficking in the Iberville housing project. The next week, special agents with the Federal Bureau of Investigation saw HUBBARD with a handgun as they were executing an unrelated search warrant.
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. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.