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Wednesday 17 July 2024
Jury Convicts Snyder Man of Attempted EnticementRead the Press Release
A 38-year-old Abilene man who attempted to meet a “kid” for sex at a local park was convicted at trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jose Luis Espinoza, Jr., 38, was indicted in February. In May, he pleaded guilty before Magistrate Judge D. Gordon Bryant, Jr, but withdrew the plea before the District Court accepted it, citing intimidation by counsel. Following a two-day trial, a jury deliberated for just 30 minutes before convicting Mr. Espinoza of attempted enticement of a minor.
At trial, a Synder police officer testified that Mr. Espinoza was caught in an undercover online investigation.
On Feb. 5, the officer created a social media profile posing as a 13-year-old girl named “Maddi.” Later that day, Mr. Espinoza reached out to Maddi’s profile and immediately began discussing sexual activity and requesting photographs.
After receiving a photograph of what appeared to be a 13-year-old girl (but was in actuality an age-regressed photo of the officer), Mr. Espinoza asked Maddie how old she was.
“I am almost 14,” she replied.
Mr. Espinoza continued to send lewd and lascivious messages, asking Maddi about her body and her sexual history and detailing what he wanted to do to her.
“You really are a kid, aren’t you,” he wrote. “I’m a horny old guy… guys get locked up for talking to girls like you.”
Two days later, Mr. Espinoza instructed Maddi to meet him at a park near her house. Mr. Espinoza promised the child Skittles and whisky and said he would bring a towel, as Maddi would likely bleed following intercourse.
“Idk if I wanna do it I am scared,” she said.
Mr. Espinoza responded with a laughing emoji, then told her she was “so whiny” and needed to “relax.”
Mr. Espinoza was arrested at a park in Snyder on Feb. 7. Inside his car, officers found Skittles, whiskey, condoms, a towel, and a 9mm Glock handgun.
He now faces not less than ten years and up to life in federal prison.
The Snyder Police Department conducted the investigation with the help of the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorneys Ryan Redd, Callie Woolam, and Jeffrey Haag prosecuted the case. U.S. District Judge James Wesley Hendrix presided over the trial.
July Federal Grand Jury 2023-B Indictments AnnouncedRead the Press Release
United States Attorney Clint Johnson today announced the results of the July Federal Grand Jury 2023-B Indictments.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Pedro Balderas-Martinez. Unlawful Reentry of a Removed Alien. Balderas-Martinez, 40, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Aug. 2008 at or near Laredo, Texas. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Ammon Brisolara is prosecuting the case. 24-CR-234
Dakota Austin Clark. Possession of Child Pornography in Indian Country; Coercion and Enticement of a Minor; Production of Child Pornography (superseding). Clark, 23, of Grove and a member of the Cherokee Nation, is charged with possessing visual images depicting the sexual abuse of children including children under 12 years old. Clark is also charged with coercing and enticing a minor child under 18 years old to produce an image depicting sexually explicit conduct. The FBI and Grove Police Department are the investigative agencies. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-179
Christian Douglas Cook. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Counts 1, 4, and 7 through 10); Assault with Intent to Commit Murder in Indian Country (Count 2); Assault by Striking, Beating, and Wounding in Indian Country (Misdemeanor) (Counts 3, 5, 6 and 11) (superseding). Cook, 24, transient and a citizen of Choctaw Nation, is charged with intentionally assaulting six different victims from May 2022 through Dec. 2023 with a dangerous weapon. He is further charged with intentionally assaulting a victim with intent to commit murder. Additionally, Cook is charged with beating or striking four more victims. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Scott Dunn is prosecuting the case. 24-CR-005
Alejandro Martinez-Lopez. Unlawful Reentry of a Removed Alien. Martinez-Lopez, 42, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Dec. 2013 at or near Nogales, Arizona. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-233
Abner Asael Rivas-Aristondo. Alien Unlawfully in the United States in Possession of a Firearm and Ammunition; Possession of Fraudulent Immigration Documents; Aggravated Identity Theft. Rivas-Aristondo, 22, a Mexican national, is charged with knowingly being an alien and unlawfully possessing a firearm and ammunition. Further, Rivas-Aristondo knowingly possessed a counterfeit U.S. Permanent Resident Card and unlawfully used an identification belonging to someone else. Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa County Sheriff's Office are the investigative agencies. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-232
Wendell Charles Roberson. Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute. Roberson, 51, of Tulsa, is charged with knowingly possessing methamphetamine, cocaine, and fentanyl with intent to distribute. Homeland Security Investigations and the Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Attila Bogdan is prosecuting the case. 24-CR-225
Patrick Nile Starkey. Possession of an Unregistered Destructive Device; Use of an Explosive to Commit a Felony; Destruction of a Letter Box and Mail; Felon in Possession of Ammunition. Starkey, 57, of Tulsa, is charged with possessing an unregistered explosive device. He is further charged with knowingly using an explosive device on a mailbox and willfully destroying a mailbox. Additionally, Starkey is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, the Oklahoma Highway Patrol, and the Osage County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Joshua M. Carmel is prosecuting the case. 24-CR-226
Illinois Carjacker Sentenced to 96 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Wednesday sentenced a man who helped carjack a woman in St. Louis to 96 months in prison.
Brandon Best, of Cahokia, Illinois, and at least two others drove from East St. Louis to the Soulard neighborhood of St. Louis on the evening of July 11, 2022, to steal cars. Shortly after midnight, a woman walked from a residence to her 2011 Kia Optima. A sedan pulled up, Best got out and ran toward the victim and her car. The victim was able to get in her car and close the door, but Best re-opened the door and either pulled her out or ordered her out as a second carjacker got into the driver’s seat. The second carjacker was armed with a pistol and Best admitted that he knew that fact.
The victim told investigators that the second carjacker pointed the gun at her and that someone told her not to move and demanded her keys.
About 15 minutes later at a gas station roughly one mile away, St. Louis Metropolitan Police Department officers spotted the stolen Kia. Best and the other carjacker fled in the car to Illinois. The chase ended back in St. Louis, where Best got out near Interstate 44 and Jefferson Avenue and ran across the interstate to try and elude officers. He was arrested behind a home with his 9mm pistol nearby.
Best, 21, pleaded guilty in April to a carjacking charge and a charge of possessing and brandishing a firearm in furtherance of a crime of violence.
These cases were investigated by the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jason Dunkel 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.
Hazleton Man Charged with Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Renan Tineo, age 22, of Hazleton, New Jersey, was indicted by a federal grand jury for firearm offenses.
According to United States Attorney Gerard M. Karam, the indictment charges Tineo with possessing a firearm while subject to a domestic violence protective order. The indictment further alleges that the firearm possessed by Tineo, a .38 caliber Charter Arms revolver, also had an obliterated serial number.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilkes-Barre Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.]
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Harrisburg Man Sentenced for Sending an Interstate Communication Containing a ThreatRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas West, age 44, of Harrisburg, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Christopher C. Conner for sending an interstate communication containing a threat. West had been in custody for over 5 months and was sentenced to time-served and a 1-year term of supervised release.
According to United States Attorney Gerard M. Karam, West previously admitted that on February 9, 2024, he sent a series of emails to the Office of Personnel Management (OPM) threatening to kill and injure employees of OPM and their relatives. In one email, West threatened to show up at an OPM office “with an A.R. 15 assault rifle that’s been converted to fully automatic.”
The case was investigated by the Federal Protective Service. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Georgia Man Found Guilty of Attempting to Entice A Minor to Engage in Sexual Activity and Interstate Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
TALLAHASSEE, FLORIDA – Dustin M. Hatcher, 39, of Sale City, Georgia, was found guilty by a federal jury of attempting to entice a minor to engage in sexual activity and interstate travel with intent to engage in illicit sexual conduct. The guilty verdict returned yesterday afternoon, at the conclusion of a day-and-a-half trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Between February 15-17, 2024, multiple local, state, and federal law enforcement agencies conducted a proactive joint undercover investigative operation aimed at identifying and locating adults who were interested in engaging in sexual activity with minors. During this operation, an undercover investigator posted an ad on a website advertising that he and his (fictitious) 14-year-old niece—who another undercover investigator was posing as—were available for a sex encounter. The undercover investigator received messages from Hatcher indicating that he was interested in meeting and having sex with the undercover investigator and the (fictitious) niece. Hatcher agreed to meet up at a gas station in Tallahassee, Florida, where he was arrested by members of the Leon County Sheriff's Office and Homeland Security Investigation.
Sentencing is scheduled for October 4, 2024, at 3:00 p.m., at the United States Courthouse in Tallahassee before Chief United States District Judge Mark E. Walker. Hatcher faces a minimum mandatory sentence of 10 years in federal prison and a maximum of life imprisonment, followed by a term of 5 years to life of supervised release.
This conviction was the result of a joint undercover investigative operation conducted by the Leon County Sheriff’s Office, Florida Department of Law Enforcement, Homeland Security Investigations, and the Tallahassee Police Department. Assistant United States Attorney Justin M. Keen prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
GPS Manufacturer Agrees to Pay $2.6M to Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program LoanRead the Press Release
Hemisphere GNSS (USA) Inc., a satellite global positioning system manufacturer in Arizona that was purchased by CNH Industrial in 2023, has agreed to pay $2.6 million to settle allegations that it violated the False Claims Act by knowingly providing false information to apply for and receive forgiveness of a Paycheck Protection Program (PPP) loan to which the company was not entitled.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to millions of Americans suffering the economic effects caused by the pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other expenses. In 2021, Congress offered a second round of forgivable PPP loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
In February 2021, Hemisphere applied for a second round PPP loan and certified that it was eligible to receive the loan. Among other certifications, Hemisphere represented that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20% or more of an economic interest in Hemisphere. The company also certified that it did not retain as a board member a person who is a resident of the People’s Republic of China. At the time of its application, however, both of these certifications were allegedly false. For this reason, Hemisphere was not eligible for the second round PPP loan it received. After receiving this PPP loan, Hemisphere sought and received forgiveness of the total loan amount.
“PPP loans were an important but finite resource available to help eligible small businesses retain employees and keep their doors open,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible entities improperly sought PPP loans or forgiveness of those loans, they reduced the availability of this critical support for eligible businesses.”
“Legitimate PPP loans saved small businesses across America,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “But not everyone used the program as intended. Our office will continue to hold accountable those business and individuals who misused the PPP program, as the settlement announced today reflects.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said General Counsel Therese Meers of the Small Business Administration (SBA). “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by GNGH2 Inc. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. GNGH2, Inc. v. Hemisphere GNSS (USA) Incorporated, 2:22-cv-00224 (D. Arizona). GNGH2 will receive $260,000 as its share of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Arizona, with assistance from SBA’s Office of General Counsel and Office of the Inspector General.
Trial Attorney John F. Schifalacqua of the Justice Department’s Civil Division and Assistant U.S. Attorney Anne E. Nelson for the District of Arizona handled the matter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 actors committing civil and criminal fraud 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 www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementFresno Man Sentenced for Illegally Possessing AmmunitionRead the Press Release
FRESNO, Calif. —Emmanuelle Padilla, 28, was sentenced to 63 months in custody today for being a felon in possession of ammunition and a probation violation, United States Attorney Phillip A. Talbert announced.
According to court documents, Padilla was found in possession of ammunition on Oct. 24, 2022. He has prior felony convictions for possessing controlled substances while armed and being a felon in possession of a firearm, and he is therefore prohibited from possessing firearms and ammunition.
This case was the product of an investigation by the Fresno Police Department and Federal Bureau of Investigation. Assistant United States Attorney Arin C. Heinz 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 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.
Fresno Man Pleads Guilty to Embezzling $1.49 Million from his Employer in Nearly Decade Long SchemeRead the Press Release
FRESNO, Calif. — Gabriel Ruiz De Chavez, 46, of Fresno, pleaded guilty today to one count of wire fraud for defrauding his employer out of over $1.49 million, United States Attorney Phillip A. Talbert announced.
According to court documents, from 2004 to 2020, Ruiz De Chavez worked as an operations manager. Between 2012 and 2019, Ruiz De Chavez used his position to generate fake invoices purportedly created by genuine vendors for goods and services. He presented these fake invoices and corresponding checks made out to the real vendors to his employer for signature, and would then deposit the checks into his own personal bank account.
Ruiz De Chavez used the funds to pay for personal expenses including credit card payments, cash withdrawals, mortgage payments, vacations, and car loans. He was able to continue the scheme without notice because of the trusted position he held at the company. Between 2012 and 2019, Ruiz De Chavez created over 600 fake invoices and checks, causing at least $1,491,000 to be transferred into his account from his employer.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Cody S. Chapple is prosecuting the case.
Ruiz De Chavez is scheduled to be sentenced on November 6, 2024. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. 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.
Founder of Casa Ruby Pleads Guilty to Stealing at Least $150,000 in COVID-Relief Funds for Personal UseRead the Press Release
WASHINGTON – Ruby Corado, 53, the founder of Casa Ruby, Inc., a Washington D.C.-based non-profit that provided services to the LGBTQ+ community, pleaded guilty today in U.S. District Court to diverting at least $150,000 in taxpayer-backed emergency Covid relief funds to private off-shore bank accounts for her personal use.
The plea was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Corado was charged by complaint on March 1, 2024, with bank fraud, wire fraud, laundering of monetary instruments, monetary transactions in criminally derived proceeds, and failure to file a report of foreign bank account.Corado pleaded guilty today to a one-count information charging her with wire fraud today before U.S. District Judge Trevor N. McFadden, who scheduled sentencing for January 10, 2025.
According to court documents, Corado, on behalf of Casa Ruby, received more than $1.3 million from the Paycheck Protection Program and the Economic Injury Disaster Loan program. Instead of using the funds as she promised, Corado stole at least $150,000 by transferring the money to bank accounts in El Salvador, which she hid from the IRS. During 2022, when financial irregularities at Casa Ruby became public, Corado sold her home in Prince Georges County and fled to El Salvador. FBI agents arrested Corado on March 5, 2024, at a hotel in Laurel, Maryland, after she unexpectedly returned to the United States.
Casa Ruby had claimed to provide housing services for homeless LGBTQ+ youth including transitional housing; to assist LGBTQ+ immigrants and connect them to attorneys; to provide social services such as case management and therapeutic mental health support for survivors of violence, and to assist with a wide array of services such as assisting with passport applications and certain visa applications. The non-profit’s website stated that Casa Ruby employed over 50 people and provided more than 30,000 social and human services to more than 6,000 people each year. At various times, Casa Ruby operated multiple shelters in Washington, D.C., that provided transitional housing.
Casa Ruby effectively ceased operations in July 2022 when it shuttered its transitional housing, failed to pay its employees, and faced eviction from multiple properties for failure to pay rent.
Wire fraud carries a maximum sentence of up to 30 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Corado’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI Washington Field Office and the D.C. Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys John Borchert, Madhu Chugh, and Kathryn Rakoczy.
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Fort Wayne Man Sentenced for Threatening CommunicationsRead the Press Release
FORT WAYNE –Jeffrey Stevens, 42 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to transmission of a threat in interstate commerce, announced United States Attorney Clifford D. Johnson.
Stevens was sentenced to 15 months in prison followed by 2 years of supervised release.
According to documents in the case, in November 2023, Stevens utilized a social media platform to transmit a message to the Fort Wayne Police Department. The message contained a threat to kill individuals of Jewish faith with the suggestion that there was nothing the local police could do about it.
This case was investigated by the Federal Bureau of Investigation and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
Former spouse of deceased U.S. Army veteran indicted for improperly claiming military benefitsRead the Press Release
SAVANNAH, GA: The divorced spouse of a deceased U.S. Army veteran has been indicted on federal charges for fraudulently claiming the veteran’s benefits.
Miranda Rachel Briggs, a/k/a “Miranda Rachel Fisher,” 33, of Rincon, Georgia, was indicted by a U.S. District Court Grand Jury on charges of Wire Fraud and Theft of Government Money, Property, or Records, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Conviction on the charges carries a statutory penalty of up to 20 years in prison, along with substantial financial penalties.
The indictment sets out a timeline of key events beginning in November 2015 when Briggs married G.B., a U.S. Army veteran, keeping her maiden name “Fisher.” Less than a year later, Briggs filed for divorce. Two weeks after the divorce was final, the U.S. Department of Veterans Affairs granted G.B.’s request to remove Briggs as a recipient of G.B.’s benefits.
Briggs filed for Chapter 7 bankruptcy in January 2018, certifying that she and G.B. were divorced. After G.B. died about two weeks later, Briggs filed for VA benefits, claiming to be G.B.’s surviving spouse. In April 2018 she also claimed to be G.B.’s spouse when applying for benefits from the Civilian Health and Medical Program of the Department of Veterans Affairs, receiving approximately $49,000 for medical care, and she received approximately $80,000 in benefits from the VA Dependency and Indemnity Compensation Program by claiming to be an eligible survivor of a qualifying veteran.
After the VA’s initial decision to deny her claim to G.B.’s VA survivor benefits, Briggs submitted additional paperwork claiming she and G.B. were married until his death in 2018. Based on this claim, the VA granted her the benefits. She then filed a petition in Chatham County Superior Court, changing her name from Miranda Rachel Fisher to Miranda Rachel Briggs. In April 2021, Briggs was named administrator of G.B.’s estate after claiming in Chatham County Probate Court to be G.B.’s surviving spouse.
In March 2023, the Chatham County Probate Court removed Briggs as administrator after finding she was divorced from G.B. at the time of his death and not eligible to act as an administrator of his estate.
Briggs is scheduled for an initial appearance in Magistrate Court in Brunswick on July 26.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is under investigation by the U.S. Department of Veterans Affairs Office of Inspector General, and prosecuted for the United States of America by Assistant U.S. Attorney Patricia G. Rhodes and Special Assistant U.S. Attorney Michael Z. Spitulnik.
Former Mobile Pain Management Doctors Xiulu Ruan and John Patrick Couch ResentencedRead the Press Release
MOBILE, AL – Xiulu Ruan and John Patrick Couch, both formerly pain management doctors practicing in Mobile, Alabama, were resentenced to 252 months and 240 months, respectively.
In 2017, a jury convicted Ruan and Couch of numerous offenses connected to their former medical practice, Physicians Pain Specialists of Alabama, and their related pharmacy C&R Pharmacy. The jury found that Ruan and Couch committed numerous drug and fraud offenses connected primarily to the unlawful prescribing of powerful opioid medications including fentanyl, and also convicted Ruan of money laundering offenses related to the schemes. Following the trial, U.S. District Court Judge Callie V.S. Granade sentenced Ruan and Couch to 252 and 240 months, respectively, and ordered the defendants to pay full restitution of nearly $14 million to the victims. In addition, the United States forfeited millions of dollars in property, vehicles, and cash that Ruan and Couch obtained from their crimes.
The case was returned to Judge Granade for resentencing after the completion of appeals before the Supreme Court and the U.S. Court of Appeals for the Eleventh Circuit. Although the Eleventh Circuit vacated several of the convictions, the appellate courts affirmed the most substantial charges connected to the fraudulent scheme. On resentencing, Judge Granade again sentenced Ruan and Couch to 252 and 240 months in prison, respectively. All restitution and forfeiture aspects of the sentence were reimposed as well.
The Eleventh Circuit proceedings on remand from the Supreme Court were handled by AUSA Scott Gray, and the resentencing hearing was handled by AUSAs Scott Gray and Christopher Bodnar, both of the U.S. Attorney’s Office for the Southern District of Alabama.
Former Las Vegas City Councilwoman Charged for Charity Fraud SchemeRead the Press Release
A federal grand jury returned an indictment yesterday charging a former Las Vegas city councilwoman and current Nye County, Nevada, justice of the peace for her alleged scheme to defraud donors to a charity to memorialize police officers who lost their lives in the line of duty.
According to the indictment, Michele Fiore, 53, of Pahrump, Nevada, a then-Las Vegas city councilwoman, solicited donations to build a statue honoring Las Vegas police officers who were killed in the line of duty. Fiore allegedly promised donors that “100% of the contributions” would be used towards the creation of this statue. As alleged, Fiore did not use any of the tens of thousands of dollars in charitable donations for the statue of the fallen officer and instead converted the money to her personal use. The donations were used to pay her political fundraising bills and rent and were transferred to family members, including to pay for her daughter’s wedding.
Fiore is charged with four counts of wire fraud and one count of conspiracy to commit wire fraud. If convicted, she faces a maximum penalty of 20 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office made the announcement.
The FBI Las Vegas Field Office is investigating the case.
Trial Attorneys Dahoud Askar and Alexander Gottfried of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Government Official Arrested for Acting as Unregistered Agent of South Korean GovernmentRead the Press Release
Note: View the indictment here.
Sue Mi Terry, 54, of New York, New York, was arrested yesterday and presented on criminal charges related to offenses under the Foreign Agents Registration Act (FARA).
According to court documents, after leaving U.S. government service and for more than a decade, Terry worked as an agent of the government of the Republic of Korea (ROK), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, Terry publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers and enabled ROK officials to gain access to U.S. government officials. In exchange for these actions, ROK intelligence officers provided Terry with luxury goods, expensive dinners and more than $37,000 in funding for a public policy program focusing on Korean affairs that Terry controlled.
From in or about 2001 to in or about 2011, Terry served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan and Oceanic Affairs for the White House National Security Council and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, Terry has worked at academic institutions and think tanks in New York City and Washington, D.C. Terry has made media appearances, published articles and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea and various regional issues impacting Asia. Terry has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea.
As she admitted in a voluntary interview with the FBI in 2023, Terry served as a valuable “source” of information for the ROK National Intelligence Service (ROK NIS), the primary intelligence agency for the ROK. For example, in or about June 2022, Terry participated in a private, off-the-record group meeting with a U.S. Secretary level official regarding the U.S. Government’s policy toward North Korea. Immediately after the meeting, Terry’s primary ROK NIS point of contact, or handler, picked up Terry in a car with ROK Embassy diplomatic plates. While in the car, Terry passed her handler detailed handwritten notes of her meeting, which were written on the letterhead of a think tank where Terry had recently worked. Terry’s handler then photographed the notes while still sitting in the car with Terry.
Weeks later, at the request of her ROK NIS handler, Terry hosted a happy hour for Congressional staff. Although the happy hour was ostensibly on behalf of the think tank where Terry worked, the ROK NIS paid for it with Terry’s knowledge. Terry’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer.
ROK government rewarded Terry for her services. For example, Terry’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which Terry selected during shopping trips with her handlers. One of Terry’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat. In addition to luxury goods, Terry’s ROK NIS handlers provided her expensive meals, including at Michelin-starred restaurants. Terry’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that Terry controlled at the think tank where she worked. In addition, ROK government officials paid Terry to write articles in both the U.S. and Korean press conveying positions and phrases dictated by the ROK government.
Terry is charged with one count of conspiracy to violate FARA and one count of failure to register under FARA. If convicted, she faces a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.
The FBI’s Counterintelligence Division and New York Field Office are investigating the case with assistance from the FBI Washington Field Office.
Assistant U.S. Attorneys Kyle A. Wirshba, Alexander Li and Sam Adelsberg for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Government Official Arrested for Acting as Unregistered Agent of South Korean GovernmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment yesterday charging SUE MI TERRY with offenses under the Foreign Agents Registration Act (“FARA”). TERRY was arrested on July 16, 2024, in New York, New York, and presented before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Damian Williams said: “As alleged, Sue Mi Terry, a former CIA and White House employee, subverted foreign agent registration laws in order to provide South Korean intelligence officers with access, information, and advocacy. Terry allegedly sold out her positions and influence to the South Korean government in return for luxury handbags, expensive meals, and thousands of dollars of funding for her public policy program. The charges brought should send a clear message to those in public policy who may be tempted to sell their expertise to a foreign government to think twice and ensure you are in accordance with the law.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “Compromising national security endangers every American by weakening our defenses and putting lives at risk. Sue Mi Terry, a former CIA and White House official, was arrested for allegedly acting as an unregistered agent for South Korea. For over a decade, despite repeated warnings, Terry allegedly exploited her think tank roles to advance a foreign agenda. As alleged, she disclosed sensitive U.S. government information to South Korean intelligence and used her position to influence U.S. policy in favor of South Korea… for money and luxury gifts. Her alleged actions posed a severe threat to national security. This arrest sends a clear message: the FBI will pursue and arrest anyone who endangers our nation’s security by collaborating with foreign spies.”
As alleged in the Indictment:[1]
After leaving U.S. government service and for more than a decade, TERRY worked as an agent of the government of the Republic of Korea (“ROK”), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, TERRY publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers, and enabled ROK officials to gain access to U.S. government officials. In return for these actions, ROK intelligence officers provided TERRY with luxury goods, expensive dinners, and more than $37,000 in funding for a public policy program focusing on Korean affairs that TERRY controlled.
From in or about 2001 to in or about 2011, TERRY served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan, and Oceanic Affairs for the White House National Security Council, and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, TERRY has worked at academic institutions and think tanks in New York City and Washington, D.C. TERRY has made media appearances, published articles, and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea, and various regional issues impacting Asia. TERRY has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea.
Since leaving U.S. government service, TERRY served as a valuable source of information for the ROK National Intelligence Service (“ROK NIS”), the ROK’s primary intelligence agency. For example, in or about June 2022, TERRY participated in a private, off-the-record group meeting with the U.S. Secretary of State regarding the U.S. government’s policy toward North Korea. Immediately after the meeting, TERRY’s primary ROK NIS point of contact, or “handler,” picked up TERRY in a car bearing ROK Embassy diplomatic license plates. While in the car, TERRY provided her handler detailed handwritten notes of her meeting with the U.S. Secretary of State. TERRY’s handler photographed the notes while sitting in the car with TERRY.
Weeks later, at the request of her ROK NIS handler, TERRY hosted a happy hour for Congressional staff. Although the happy hour was under the auspices of the think tank where TERRY worked, the ROK NIS paid for it with TERRY’s knowledge. TERRY’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer.
The ROK government rewarded TERRY for her services. For example, TERRY’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which TERRY selected during shopping trips with her handlers. One of TERRY’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat.
In addition to luxury goods, TERRY’s ROK NIS handlers provided her with expensive meals, including at Michelin-starred restaurants. TERRY’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that TERRY controlled at the think tank where she worked. In addition, ROK government officials paid TERRY to write articles in both the U.S. and Korean press conveying positions and phrases provided by the ROK government.
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TERRY, 54, of New York, New York, has been charged with one count of conspiracy to violate FARA, which carries a maximum sentence of five years in prison, and one count of failure to register under FARA, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Counterintelligence Division of the FBI’s New York Field Office. Mr. Williams also thanked the Counterintelligence Division and Foreign Influence Task Force of FBI Headquarters, the Mission Services and Counterintelligence Divisions of the FBI’s Washington Field Office, the Amtrak Police Department, and the Department of Justice’s National Security Division for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Alexander Li, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Charged with Six Felonies for Mail-Order Pharmacy and Healthcare Kickback SchemeRead the Press Release
PEORIA, Ill. – A federal grand jury returned an indictment on July 16, 2024, against Franz (aka “Frank”) Peter Suess, 77, of Wellington, Florida, for running a long-standing conspiracy related to his operation of a network of mail-order pharmacies and payment of illegal healthcare kickbacks in order to procure prescriptions for his pharmacies. The charges include one count of conspiracy to commit wire fraud and healthcare fraud, four counts involving healthcare kickback payments or offers to pay kickbacks, and one count of conspiracy to defraud the United States.
The indictment alleges that starting as early as March 2014, and continuing until at least October 2023, Suess owned a network of pharmacies and business entities that were involved in their management. Suess purchased multiple small retail pharmacies throughout the country with the intent of converting the vast majority of the businesses from in-person pharmacies to mail-order businesses. Suess would typically put the ownership of the pharmacies into the names of third parties despite the fact that he provided the funding for the purchase, received a significant share of the profits, and maintained control of the pharmacy network through his other companies.
After purchasing a pharmacy, Suess made fraudulent submissions to various healthcare entities. In these submissions, Suess hid his ownership and control of the pharmacies, failed to disclose that the pharmacy was being converted to a mail-order pharmacy, and falsely claimed that he was in compliance with the federal Anti-Kickback Statute. Through these false claims, Suess and his co-conspirators defrauded and intended to defraud private and public health insurance providers including Medicare, Medicaid, and TRICARE.
Suess’s scheme included his July 2017 purchase of McHugh Drug Store, located in Carthage, Illinois, which is within the Central District of Illinois. Suess not only concealed his ownership, but also paid illegal kickbacks for prescriptions that were filled by McHugh.
If convicted, Suess shall forfeit any property that is derived, either directly or indirectly, from gross proceeds traceable to the commission of the offenses. The property includes, but is not limited to, a money judgment.
A summons was issued for Suess to appear in federal court before Magistrate Judge Jonathan E. Hawley on August 23, 2024, in the federal courthouse in Peoria, Illinois.
If convicted, the maximum statutory penalties for the alleged crimes charged are up to 20 years’ imprisonment for conspiracy to commit wire fraud and healthcare fraud; up to 10 years’ imprisonment for the four kickback counts; and up to five years’ imprisonment for conspiracy to defraud the United States. Each count carries the possibility of a $250,000 fine, or twice the pecuniary gain/loss, and each count may be followed by up to a three-year term of supervised release.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office, Defense Criminal Investigative Service, and the Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Floral Company Pays $1.25 Million to Resolve False Claims Act Allegations of Defrauding Unemployment Insurance Program During Covid-19 PandemicRead the Press Release
Baltimore, Maryland – Potomac Floral Wholesale, Inc. and Tsur “Jacob” Reiss have agreed to pay the United States and State of Maryland $1,250,000.00 to resolve allegations that they caused the submission of false unemployment insurance (UI) claims at the beginning of the COVID-19 pandemic.
The settlement agreement was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General (DOL-OIG); and Maryland Attorney General Anthony Brown.
“Attempting to unjustly profit from a global pandemic is absolutely wrong,” said United States Attorney Erek Barron. “Unemployment insurance is meant for employees who need it when they are laid off from their jobs. During the early stages of COVID-19, the Federal Pandemic Unemployment Compensation program was designed to supplement traditional unemployment insurance for employees laid off during an unprecedented global emergency. Employers should not use tax dollars to shirk their responsibility to pay employees for their work.”
“The unemployment insurance (UI) program offered critical financial support to American workers who were unable to work due to the immense challenges created by the COVID-19 pandemic,” said Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG). “This civil settlement demonstrates the strong commitment, resolve, and partnership of the DOL-OIG and U.S. Attorney’s Office to hold accountable those who seek to unlawfully exploit the UI program at the expense of those who actually need it.”
“All workers deserve to be paid fairly for their time and effort. The unemployment insurance program exists as a critical lifeline to keep individuals and families afloat when someone is laid off or out of work through no fault of their own,” said Attorney General Anthony Brown. “Exploiting the program to try to avoid paying employees their fair wages is unacceptable. My office is committed to standing up for workers and stopping abusive conduct wherever it is found. We thank our federal partners for their invaluable work and cooperation in bringing this matter to a successful resolution.”
Potomac Floral is a wholesale floral company run by Owner and CEO Tsur “Jacob” Reiss. According to the settlement agreement, from March 1, 2020 to December 31, 2020, starting immediately after the COVID-19 pandemic forced the suspension or modification of American business activity, Potomac Floral and Reiss instructed a group of their employees to apply for UI benefits. Yet, they also instructed these same employees to continue working for Potomac Floral without pay. Because individuals collecting UI must be unemployed, not completing work for an employer, Potomac Floral’s and Mr. Reiss’s conduct caused the submission of false UI claims in violation of the False Claims Act.
The civil settlement also resolves claims filed under the whistleblower provision of the False Claims Act by Travis Gabriel in United States & State of Maryland ex rel. Travis Gabriel v. Potomac Floral Wholesale, Inc. & Tsur “Jacob” Reiss, Civ. No. TDC-21-0207 (D. Md). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery. As part of the civil resolution, Mr. Gabriel will receive $243,750.00.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Potomac Floral or Tsur Reiss, nor a concession by the United States that its claims are not well founded.
U.S. Attorney Erek L. Barron praised the DOL-OIG for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Matt Haven who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Felon Caught with Silenced Pistol Sentenced to 70 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a convicted felon who was caught in someone’s back yard with a silenced pistol to 70 months in prison.
On Oct. 13, 2022, the St. Charles Police Department responded to a call about a man in the 200 block of Blanche Drive. A witness told police that the man was in the rear yard of a home and had been waving a firearm in a threatening manner. The officer discovered Christopher Leach in the gated back yard. When the officer drew his gun and identified himself as a police officer, Leach ran away, tossing the gun into a bush. The officer used a Taser on Leach, who initially refused to put his hands behind his back. The officer found the gun, a loaded .22-caliber semi-automatic pistol with a firearm silencer attached to the barrel. Leach is a felon, having been convicted of offenses including stealing, drug possession, unlawful possession of an illegal weapon and distribution of a controlled substance. He was on parole when he was arrested.
Leach’s sentence will run consecutive to any sentence he receives for pending parole revocation matters in Phelps County Circuit Court.
Leach, 28, of Rolla, Missouri, pleaded guilty in April in U.S. District Court in St. Louis to one count of being a felon in possession of a firearm.
The St. Charles Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney J. Christian Goeke 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.
Federal Court Permanently Shuts Down New York Tax PreparerRead the Press Release
A federal court in the Eastern District of New York issued a permanent injunction yesterday against a Brooklyn, New York, tax return preparer.
Melinda Jacob, individually and on behalf of her business Melinda Jacob Tax Services LLC, consented to the injunction, which permanently bars her and her business from preparing federal tax returns for others.
On Feb. 5, Jacob pleaded guilty to aiding and assisting in the preparation of a false tax return. As part of her guilty plea, Jacob also agreed to be permanently barred from preparing or filing tax returns for others.
According to the Justice Department’s civil complaint, from 2019 through 2023, Jacob prepared more than 500 returns per year, which included returns that falsely claimed credits, deductions or refunds for customers which improperly reduced their tax liability or inflated their refund. Specifically, the complaint alleges that Jacob falsely claimed residential energy credits and education credits on her customers’ tax returns, even though those customers did not qualify for the credits. The complaint also alleges that Jacobs claimed false filing status and fictitious dependents on customers’ returns to generate a larger refund to which the customers were not entitled.
As a result of the court’s order, Jacob must send notice of the injunction to each person for whom she prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2019, to the present.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jacob Order_0.pdfFact Sheet: Justice Department Improves Access to the Immigration Court SystemRead the Press Release
As part of its ongoing efforts to increase and improve access to the immigration court system, the Executive Office for Immigration Review (EOIR) is creating a new leadership position within EOIR’s Office of the Director focused on improving access to the immigration system and finding innovative ways to increase representation rates for noncitizens in immigration court. This new role will serve as EOIR’s public facing point of contact for government and public stakeholders with business before, or interest in, EOIR.
The new leadership role will also work to amplify interagency immigration access initiatives by proactively communicating information about available immigration services across government agencies as well as work with other government agencies to determine how best to increase access to the immigration court system as a whole. They will also serve as a central coordinator for feedback on access and representation concerns in the immigration court system and lead efforts to design responsive programming to address legal access concerns.
EOIR also continues to expand on its ongoing access initiatives, including:
- Respondent Access Portal:
- In July, EOIR announced the launch of the Respondent Access Portal, a secure online platform that allows unrepresented noncitizens with proceedings before EOIR to view case information and scheduled hearings, download their electronic case record, and file documents directly with the immigration court. The portal provides unprecedented ease of access to immigration court proceedings for unrepresented noncitizens, improving transparency and helping noncitizens better navigate the immigration court system.
- Attorney of the Day Program:
- In this program, licensed attorneys provide unrepresented noncitizens in immigration court with general information about immigration court proceedings and relief options and attend preliminary hearings. Attorneys of the Day may be volunteers, legal service providers, or law school clinicians assisted by student practitioners. Attorneys of the Day may also explain immigration court forms and how to seek pro bono legal resources.
- By the end of FY24, EOIR will expand the Attorney of the Day Program to three additional courts, Hyattsville, New York-Varick Street, and Atlanta-Peachtree. Attorney of the Day is currently available in San Francisco, New Orleans, and Chicago.
- Law School Working Group:
- EOIR’s Law School Working Group facilitates law school clinic representation in immigration court. The Working Group activities include holding merits hearings during academic semesters, and increasing student engagement at immigration court hearings, including as Friends of the Court and through limited representation.
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- Over the next few months, the Law School Working Group will meet with law school representatives in DC and surrounding areas, Philadelphia, San Diego, Los Angeles, and San Francisco, in order to expand these efforts.
- Model Hearing Program:
- EOIR’s Model Hearing Program provides current and future immigration law practitioners with substantive and practical information about practices and procedures in immigration court.
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- The Model Hearing Program encompasses a wide range of resources and events, including live Model Hearing Program events at immigration courts, recorded model hearings and substantive law seminars available on demand, and information about the immigration court system available through the Immigration Court Online Resource website.
- Through the Model Hearing Program, EOIR has provided approximately 3,000 individuals with substantive training on immigration law as well as live practical training on representing noncitizens in immigration court.
- EOIR plans to hold another live Model Hearing Program session in September.
- Respondent Access Portal:
El Paso Man to Spend 15 Years in Federal Prison for Dealing Deadly FentanylRead the Press Release
EL PASO, Texas – An El Paso man was sentenced in federal court to 15 years in prison for distribution of fentanyl, causing death.
According to court documents, Michael Joseph Cuccaro, 22, sold counterfeit M-30 oxycodone pills containing fentanyl to a purchaser on Dec. 11, 2022. The purchaser consumed the pills and died from fentanyl poisoning.
A federal grand jury in El Paso indicted Cuccaro Sept. 6, 2023, in a two-count indictment charging him with conspiracy to possess a controlled substance with intent to distribute and distribution of a controlled substance causing death or serious bodily injury. Cuccaro was subsequently arrested on a bench warrant. He pleaded guilty to distribution of a controlled substance causing death on April 24, 2024.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Phillip Countryman prosecuted the case.
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Drug Trafficker Sentenced to Six Years in Federal PrisonRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to a federal judge that he made multiple purchases of cocaine that he later transformed into crack and then sold to others has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha.
Juan Gonzalez, 46, pleaded guilty on January 25, 2024, to a charge of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. He was sentenced on Tuesday by U.S. District Court Judge Mary S. McElroy to 72 months of incarceration to be followed by four years of federal supervised release.
According to charging documents and information presented to the court, in early 2021, the FBI Safe Streets Task Force launched an investigation into the alleged drug trafficking activities of one William Mendez, 49, of Providence. The investigation included court-authorized interception of electronic communications over multiple telephones allegedly used by Mendez.
According to charging documents, it is alleged that, during telephone phone calls monitored by law enforcement, Mendez allegedly revealed to Gonzalez that, on July 13, 2021, he took possession of between 500 and 1,000 grams of cocaine, some of which was subsequently sold to Gonzalez. The investigation further revealed that between July 13, 2021, and August 12, 2021, Gonzalez made repeated purchases of cocaine, also allegedly from Mendez, that Gonzalez then processed and sold as crack cocaine.
William Mendez is currently detained in federal custody awaiting trial, charged by way of indictment with conspiracy to distribute and to possess with intent to distribute cocaine, and conspiracy to distribute and to possess with intent to distribute forty grams or more of fentanyl. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by the FBI Safe Streets Task Force, consisting of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
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Drug Dealer Sentenced for Possessing a Smith & Wesson .45 While Distributing PCP, Crack, and MarijuanaRead the Press Release
WASHINGTON – DeCarlos Wilkins, 24, of Washington D.C., was sentenced today to 60 months in prison for distributing PCP, crack cocaine, and marijuana while in possession of a Smith & Wesson M&P .45 caliber handgun, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Wilkins pleaded guilty on March 13, 2024, before U.S. District Judge Royce C. Lamberth to possessing a firearm during a drug trafficking offense. In addition to the five-year prison term, Judge Lamberth ordered Wilson to serve five years of supervised release.
According to court documents, on March 3, 2023, about 6:25 p.m., MPD officers were patrolling on the 1800 block of Benning Road, NE when they observed Wilkins kneeling down weighing an unknown substance on a digital scale. Officers recognized this to be consistent with a drug transaction, i.e. a drug dealer measuring the quantity of a drug immediately prior to a sale. When officers exited their vehicle to investigate, Wilkins fled on foot. Officers found Wilkins hiding in a residential yard in a nearby alley. Police recovered 92 small vials of PCP from Wilkins’ jacket pocket and a Smith & Wesson M&P .45 from inside Wilkins’ pants near his kneecap, underneath a layer of compression shorts. Officers also seized 6.8 ounces of marijuana, 120 grams of cocaine base, and $149 in cash.
Watkins has three prior convictions involving the distribution of illegal drugs, and three prior convictions involving the use of illegal firearms. At the time of his arrest in March 2023, he was on supervision after the release from a prior firearms offense conviction, he was also awaiting sentencing for attempted possession with intent to distribute a controlled substance.
This case was investigated by the Metropolitan Police Department and prosecuted by Special Assistant U.S. Attorney Alexander Schneider.
23cr098
Defendant Pleads Guilty to Child Pornography ChargeRead the Press Release
PROVIDENCE, RI – A Rhode Island resident whose IP address was determined to have been used to receive and distribute child pornography has pleaded guilty to a charge of possession of child pornography, announced United States Attorney Zachary A. Cunha
Haley Lynn Rose, known at the time of arrest as Anthony Ninfo, 43, of West Warwick, admitted to possessing more than 220 images and 30 videos of child pornography that were located on electronic devices owned by the defendant, who was arrested on April 28, 2021.
According to information provided to the court, in September 2020, law enforcement in New Zealand executed a court-authorized search warrant and developed information indicating that an individual in Rhode Island was using a file-sharing account to make available and distribute child pornography. Further investigation determined that the IP address belonged to the defendant.
On April 28, 2021, federal agents executed a court-authorized search of the defendant’s West Warwick residence and seized several media devices, a cellphone, and an external hard drive. A forensic analysis of the equipment revealed approximately 220 images and 35 videos of child pornography, including depictions of prepubescent children engaged in sex acts with adult males and females.
The defendant is scheduled to be sentenced on October 17, 2024. The defendant’s sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney John P. McAdams
The matter was investigated locally by Homeland Security Investigations.
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Davenport Man Sentenced to 162 Months in Federal Prison for Selling Drugs While Under Federal SupervisionRead the Press Release
Davenport, Iowa – A Davenport man was sentenced yesterday to 162 months in federal prison for selling cocaine while under federal supervision.
According to public court documents and evidence presented at sentencing, Dedrick Montez Jones, 44, during 2023, while Jones was under federal supervised release on a prior federal drug case, officers received information that Jones was selling cocaine. In December 2023, officers searched Jones’ residence and located approximately 45 grams of cocaine. Jones eventually admitted to selling cocaine.
At sentencing, the Court also found Jones had violated the terms of his federal supervised release for a prior conviction for possession with intent to distribute cocaine and imposed a 42-month term of imprisonment, for a total of 162 months in federal prison.
After completing his term of imprisonment, Jones will be required to serve eight years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Bettendorf Police Department, Drug Enforcement Agency, Iowa Division of Narcotics Enforcement, Davenport Police Department, and Scott County Sheriff’s Office.
Criminals Are Targeting Bank and ATM Customers in MarylandRead the Press Release
Baltimore, Maryland – The FBI and our local law enforcement partners are investigating a surge of armed robberies, known as “jugging” crimes, at financial institutions in Maryland. At least 21 bank and ATM customers have been victimized by these crimes just in the first week of July.
A majority of the crimes have taken place in Anne Arundel and Prince George’s Counties.
“Jugging” refers to a crime in which a suspect, or group of suspects, targets customers believed to have large amounts of cash. The perpetrators either rob customers while in the parking lot of a bank, credit union or ATM or follow them to their next location.
So far in 2024, the FBI Baltimore Field Office has received reports of around seven dozen jugging offenses with more than half of those incidents reported in June and July.
“These assailants are brazenly targeting bank and ATM customers, posing a significant risk to the public of both physical and financial harm. FBI Baltimore’s Violent Crime Task Forces and our partners are working together to combat the alarming rise of these dangerous incidents,” said FBI Baltimore Special Agent in Charge William J. DelBagno. "We will continue to pursue criminals with all our available resources and remain determined to eradicate violent crime from our streets."
“The Anne Arundel County Police Department is grateful for the assistance of our federal, state and local partnerships as we focus intently on the violent criminals involved in the wave of armed robberies being committed against our innocent, hardworking community members throughout the region,” said Anne Arundel County Chief of Police Amal E. Awad. “The perpetrators of these violent robberies, known as “juggings”, prey on people who are trying to live out their daily lives peacefully. We will continue to dedicate the necessary resources to prevent these criminals from attacking innocent people and when they do, diligently and relentlessly use our investigative techniques to identify, arrest and bring them to justice. We share in the outrage of the many people and their families who have survived these terrifying encounters left feeling victimized, broken and traumatized at the hands of these heartless, lawbreaking criminals."
“The Prince George’s County Police Department truly values our partnership with both the FBI Baltimore Field Office and local agencies on this regional issue. Our detectives regularly communicate with these law enforcement partners to share real-time information on these investigations which often cross jurisdictional borders,” said Deputy Chief Zachary O’Lare, Bureau of Investigation Prince George’s County Police Department. “Together, we intend to identify and arrest all criminals targeting victims who are simply stopping at a bank. This issue is a top priority.”
“The Bowie Police Department is committed to collaborating with federal, state, and local law enforcement agencies to identify and apprehend those responsible for these criminal acts,” said Bowie Police Chief Dwayne A. Preston.
The FBI urges the public to remain vigilant and keep the following safety tips in mind.
- Be Aware of Your Surroundings: Always be vigilant when withdrawing or depositing money from a bank or ATM.
- Look around for anyone who appears suspicious or is loitering in the area.
- Pay attention to individuals backed into parking spaces who do not exit their vehicles to conduct business.
- Don’t leave your car or the building if you observe suspicious vehicles in the parking lot or parked nearby.
- Report any suspicious activities immediately.
- Conceal Your Cash: When leaving the bank, ensure your cash is not visible. Place it in a secure, inconspicuous location such as a pocket or a bag.
- Vary Your Routine: Avoid regular patterns in your banking habits. Change the times and locations you visit the bank.
- Drive Directly to Your Next Destination: If you suspect you are being followed, drive to the nearest police station or a crowded, well-lit area, and call 911.
- Avoid Distractions: Do not engage in activities that might distract you, such as using your phone, until you are in a safe place.
If you have any information related to recent bank jugging incidents, please contact the FBI at 1-800-CALL FBI or submit an anonymous tip through tips.FBI.gov.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Convicted Felon Accused of Committing a Drive-By Shooting in Salt Lake County is Facing Federal ChargesRead the Press Release
Salt Lake City, Utah – A federal grand jury returned an indictment today charging a convicted felon with gun and drug crimes. The charges come a month and a half after the defendant allegedly committed a drive-by shooting in Salt Lake County, Utah, and fled from police the following day.
According to court documents, Cody Charles Burningham, 30, of Salt Lake City, is accused of committing a drive-by shooting on June 3, 2024, in Millcreek, Utah. The next day, multiple law enforcement agencies witnessed Burningham driving a vehicle in Kearns, Utah. Detectives attempted to stop Burningham, but he fled, driving through residential areas at a high rate of speed. After detectives were able to spike the tires of the vehicle, he took off on foot. Burningham was taken into custody without incident. Shortly after the chase, a loaded HS Produkt XD45 .45 caliber semi-automatic pistol was recovered.
According to the complaint, prior to June 4, 2024, Burningham was convicted by the Utah Third District Court for multiple crimes including possession of a firearm by a restricted person.
Burningham is charged with felon in possession of a firearm, and possession of Alpha PHP (bath salts) with intent to distribute. His initial appearance on the indictment is July 18, 2024, at 10:30 a.m. in courtroom 8.4 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 by a West Valley City Police Detective and a Task Force Officer with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney Cameron P. Warner 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.
Columbia Man Sentenced to 10 Years in Federal Prison for Distributing MethRead the Press Release
COLUMBIA, S.C. — Michael Wright, 46, of Columbia, was sentenced to 1o years in federal prison after pleading guilty to conspiracy to distribute more than 50 grams of methamphetamine.
Evidence presented to the court showed that Wright contacted an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) over social media about the sale of methamphetamine. The agent and Wright agreed to meet. Wright sold the agent 28 grams of pure methamphetamine. Following this sale, ATF used the same agent and bought methamphetamine from Wright four additional times purchasing more than 700 grams of methamphetamine.
United States District Judge Sherri A. Lydon sentenced Wright to 120 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Clinton County Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Felix Trepanowski, age 23, of Clinton County, PA, was indicted on charges of receipt and possession of child pornography.
According to United States Attorney Gerard M. Karam, the indictment alleges that Trepanowski received child pornography on December 31, 2022 and April 27, 2024 and possessed child pornography on May 21, 2024.
The case was investigated by the Federal Bureau of Investigation-RAC Williamsport and the Pennsylvania State Police. Assistant United States Attorney Tatum R. Wilson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years, with a mandatory minimum sentence of 5 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Chicago Man Sentenced to 72 Months in PrisonRead the Press Release
SOUTH BEND – Allory Smith, 42 years old, of Chicago, Illinois, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Smith was sentenced to 72 months in prison followed by 2 years of supervised release.
According to documents in the case, in January 2023, Smith sold a rifle, a handgun, and ammunition to a buyer in the Michigan City area. Smith referred to the rifle as a “real license to kill” because he believed it had previously been reported stolen. Smith has several prior felony convictions, any one of which prohibit him from possessing the firearms in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County VICE Unit (LCVICE). The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
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.
Chicago Man Sentenced in Cyber Fraud CaseRead the Press Release
MOBILE, AL – Charles Boyd, age 28, of Chicago, IL was sentenced today to 33 months in prison for his role in a cyber fraud scheme known as a business e-mail compromise.
According to court documents filed in connection with Boyd’s guilty plea, unknown co-conspirators gained unauthorized access to the e-mail account of a Spanish Fort, Alabama mortgage company in 2019. After gaining access, the conspirators were able to read the mortgage company’s e-mails and, therefore, knew when buyers were expecting wiring instructions to complete real estate transactions. When a sale was near completion, co-conspirators sent the buyer a spoofed e-mail that appeared to come from the mortgage company. These e-mails contained wiring instructions supposedly for the completing of the real estate purchase. However, when the buyer followed the instructions in the e-mail, their money was unwittingly sent to bank accounts controlled by the conspirators.
Boyd’s role in the conspiracy was to set up the bank accounts into which the buyers unwittingly wired the money. Specifically, during July and August 2019, Boyd opened multiple bank accounts using documents that purported to be passports issued by the governments of Sierra Leone and the Gambia. These documents contained Boyd’s picture along with alias names and identifiers. Accounts set up by Boyd with these fraudulent documents received over $400,000 from real estate purchasers who were victimized by this scheme, including victims in the Southern District of Alabama.
Boyd is currently serving an 18-month sentence for a separate financial fraud scheme in Wisconsin. Once that sentence is complete, Boyd will begin serving his 33-month sentence in this case.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Christopher Bodnar and Marjorie Vincent-Tripp prosecuted the case on behalf of the United States.
Cedar Rapids Man to Federal Prison for Possessing Twelve Firearms as a Drug UserRead the Press Release
A man caught with two firearms and whose social media and cell phone documented his unlawful possession of another ten firearms over a three-year period was sentenced on July 16, 2024, to more than five years in federal prison.
Semaje Jeyvon Star, age 23, from Cedar Rapids, Iowa, received the prison term after a February 1, 2024 guilty plea to one count of possession of a firearm by an unlawful user of a controlled substance.
Information from sentencing showed that in 2018, police officers apprehended Star after a foot chase. Star was armed with a loaded handgun and in possession of marijuana. The officers had seen Star engage in a hand-to-hand transaction. Then in May 2020, officers located Star driving despite his status as a barred driver. Officers found a loaded pistol in the car. Star’s fingerprint was on the firearm found in his car. Star tested positive for marijuana and methamphetamine. Star’s Facebook records contained multiple conversations related to using, purchasing, and selling marijuana. Photos and videos from Star’s phone, Snapchat, and Facebook profile showed him possessing at least ten additional firearms, including firearms with extended magazines, in 2018, 2019, and 2020.
Star was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Star was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Star is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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 prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-0092.
Follow us on Twitter @USAO_NDIA.
CEO of “Smart Ring” Wearable Tech Company Arrested on Securities Fraud ChargesRead the Press Release
LOS ANGELES – A Boca Raton woman was arrested today on charges alleging she lied to investors to obtain over $2 million for her company ESOS Rings, Inc., which she then used for personal expenses and Ponzi payments to keep the scheme going.
Michelle Bisnoff, also known as “Michelle Angeline Silverstein” and “Shelly Silverstein,” 57, previously of Pacific Palisades and Santa Barbara and currently living in Boca Raton, Florida, is charged in a criminal complaint with one count of securities fraud and one count of wire fraud. Bisnoff was released on bond and ordered to appear for further proceedings in United States District Court in downtown Los Angeles on August 7.
According to the affidavit in support of the criminal complaint, Bisnoff is the founder and CEO of ESOS. Allegedly, from 2017 through the end of 2023, Bisnoff fraudulently solicited investments in ESOS by falsely representing ESOS's business activities and profitability, and the returns that the investors would receive on their investments. Bisnoff allegedly told prospective investors that ESOS owned patents for "smart rings,” a wearable device encoded with financial information, which could be used to make contactless payments. Bisnoff allegedly said ESOS earned transaction fees each time a ring was used, generating profits for ESOS. Bisnoff also allegedly told prospective investors that ESOS was already manufacturing and selling these smart rings, and that ESOS would soon be bought by Apple or another suitor, resulting in a buy back of the investors’ shares at prices significantly above the share price she was offering to the investors.
According to the affidavit, neither Bisnoff nor ESOS owned the patents at issue; the majority of investor funds raised were used to allegedly make Ponzi payments to earlier investors and to benefit Bisnoff personally; the prospective acquirors of ESOS had no knowledge of ESOS and/or no plan to provide capital for it; and ESOS had virtually no business operations, let alone profits.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of both charges, Bisnoff faces a statutory maximum sentence of 40 years.
The U.S. Securities and Exchange Commission sued Bisnoff and ESOS for allegedly fraudulently raising $1.95 million from ESOS investors. On September 19, 2023, United States District Judge Consuelo B. Marshall imposed a judgment finding Bisnoff and ESOS jointly and severally liable for disgorgement of $566,483, representing net profits from the fraud, as well as $46,836 in pre-judgment interest and a civil penalty of $223,229, with the total amount due—$836,548—to be paid to the SEC within 30 days. According to the affidavit, to date neither Bisnoff nor ESOS has paid any of the amounts due.
The FBI is investigating this matter. Substantial assistance was provided by the SEC and the United States Attorney’s Office, Southern District of Florida
Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting this case.
Businessman Arrested for Multi-Million Dollar Fraud Scheme to Defraud Pandemic Relief ProgramsRead the Press Release
WASHINGTON – Jose “Joe” Biaou, 40, a local businessman and founder of FRB Capital Group LLC (“FRB”), was arrested today on charges he defrauded the Paycheck Protection (PPP) and the Economic Injury Disaster Loan (EIDL) programs, announced United States Attorney Matthew M. Graves and Inspector in Charge Damon E. Wood of the Washington Division of the U.S. Postal Inspection Service’s (USPIS). The indictment, returned on July 16, 2024, was unsealed today and Biaou made an initial appearance in U.S. District Court to face six counts of wire fraud and one count of theft of government property.
According to the multi-count indictment, Biaou applied for and received more than $3.5 million in PPP and EIDL loan proceeds on behalf of two businesses he controlled – FRB and Millenium Global Finance. With respect to his applications on behalf of FRB, a loan brokerage firm that connected real estate developers with lenders, Biaou consistently inflated the number of employees the company had, as well as their average monthly salaries and other financial information. The indictment further alleges that Biaou then applied for forgiveness of one of the PPP loans, again, submitting false information about how his business spent the funds during the COVID-19 pandemic. In addition to the false applications submitted on behalf of FRB, Biaou allegedly submitted fabricated documentation in support of these applications, including fraudulent payroll reports, a fictitious birth certificate, and a forged lease, among other things.
With respect to Millenium Global Finance according to the indictment, Biaou applied for and received $1.25 million in PPP funds after representing that Global had 52 employees and an average monthly payroll of more than $520,000 throughout 2019. In reality, Millenium Global was not even in operation at that time.
If convicted, the defendant faces a maximum statutory sentence of 20 years in prison for the charged offenses. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the Washington Division of the United States Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Will Hart.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Burlington Man Sentenced to 121 Months in Prison for Robbing Multiple Spas at Gunpoint; Duct-Taped VictimsRead the Press Release
BOSTON – A Burlington, Mass. man was sentenced today in Boston federal court for his role in the armed robberies of multiple businesses in which he and two others beat, dragged and duct-taped victims.
Alfeu Barbosa, 26, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 121 months in prison and three years of supervised release. In March 2024, a federal jury convicted Barbosa of two counts of robbery affecting commerce. Barbosa was arrested and charged in June 2022. His co-defendants, Li Wen Tang and Jonas Nunez, were later arrested and charged in August and September 2022.
On June 12, 2022 at approximately 8:51 p.m., Tang entered the Balance Reflexology Spa in Brookline pretending to be a customer seeking a massage. Because the victim was the only employee in the spa that night, she locked the door before taking Tang into the back room to begin the massage. Tang asked the victim if there was anyone else in the spa and that if there was, he would like to see them. Almost immediately after the massage had begun, Tang claimed that he no longer wanted a massage because his stomach was upset and demanded a refund. The victim employee stated she had to call her boss to approve the refund. While the victim employee was on the phone in the lobby, Tang unlocked the front door and two masked men – later identified as Barbosa and Nunez – entered the business carrying firearms. One of the men hit the victim employee in the face, knocking her to the floor and put a gun to her head. Barbosa and Nunez then pulled the victim by her hair into the back hallway where they instructed her to be quiet. They proceeded to bind the victim’s wrists and ankles with duct tape and gag her. Barbosa and Nunez repeatedly yelled at the victim asking, “Where is the money?” The men ransacked the spa for roughly three minutes before locating and stealing approximately $500 along with the victim employee’s cell phone and then exiting. Surveillance footage revealed that all three men had arrived in the same vehicle parked nearby, which they drove away in together following the robbery.
Later that evening, at approximately 10:19 p.m. on June 12, 2022, Barbosa, Nunez and an associate of Barbosa committed a similar robbery of May’s Spa Massage in Stoneham. Specifically, they entered the business wearing masks and firearms and duct-taped several victims who were in the spa at the time. In addition to stealing approximately $600 in cash from the business and victims, Barbosa, Nunez and Barbosa’s associate took three cell phones belonging to three of the female victims present during the robbery, as well as a victim’s license, gift cards and credit and debit cards before leaving in the same vehicle.
At the time of the robberies, Barbosa was wearing a court-ordered ankle bracelet with GPS monitoring due to a suspended sentence for multiple prior convictions in Middlesex Superior Court of armed robbery and assault and battery for robbing the De Onzen Spa in Waltham in July 2021. During that robbery, Barbosa threatened employees and patrons at knifepoint, stole their phones and punched one victim in the face causing an orbital fracture. Barbosa was subsequently charged in the state for assault and battery and sentenced in April 2022 to two and a half years in prison. That sentence was suspended for three years.
Also at the time of the offenses, Barbosa was on pretrial release in Suffolk Superior Court for charges of breaking and entering in the daytime with the intent to commit a felony and larceny from a building.
Nunez pleaded guilty in January 2024 and, on April 18, 2024, was sentenced to 23 months in prison to be followed by three years of supervised release. Tang pleaded guilty on April 3, 2024 and is scheduled to be sentenced on Aug. 9, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation in New York; the Massachusetts State Police; and the Brookline, Stoneham, Boston, Wakefield and New York City Police Departments. Assistant U.S. Attorneys Luke A. Goldworm and Robert E. Richardson of the Major Crimes Unit are prosecuting the case.
Bitwise Founders Plead Guilty to $115 Million Fraud SchemeRead the Press Release
FRESNO, Calif. — Irma Olguin, Jr., 43, and Jake Soberal, 38, the founders and leaders of the failed Fresno-based start-up company, Bitwise Industries, pleaded guilty today to one count of conspiring to commit wire fraud and one count of wire fraud, United States Attorney Phillip A. Talbert announced. They admitted to defrauding investors, lenders, and others out of $115,000,000.
According to court records, Olguin and Soberal founded Bitwise in 2013. The company then grew to have three business lines: (1) technology workforce training program, (2) technology consulting service, and (3) a real estate arm that bought, renovated, and leased commercial properties. The company promised to create jobs for underserved groups of people, revitalize blighted urban areas, and show that such a project could be highly profitable.
By early 2022, Bitwise had raised over $75,000,000 through Series A and B investment rounds, and the company had grown to 800 employees and apprentices across multiple offices and states. But the company was not making a significant profit and was running low on funds.
Thereafter, Olguin and Soberal conspired to mislead investors, lenders, and others into believing that Bitwise was excelling when it was instead failing. They fabricated financial information in investor materials and altered and forged other financial records to inflate the company’s revenues, cash balances, and other financial markers.
The following are illustrative examples of Olguin and Soberal’s fraud:
- In a February 2022 presentation and July 2022 prospectus that were circulated to investors, Olguin and Soberal represented that Bitwise’s cash balance was over $44,000,000 as of the end of 2021. They also represented that the company’s revenue was more than $58,000,000. In reality, the company’s cash balance was less than $12,000,000 at that time and its revenue was minimal;
- In June and July 2022, Olguin and Soberal falsely represented to a California-based investment firm that Bitwise had secured a $150,000,000 investment from another, London-based investment firm. This was done to convince the California-based investment firm to purchase several buildings that Bitwise owned. Several months later, Soberal falsely represented to another lender that Bitwise still owned those buildings to get the lender to loan Bitwise millions more dollars;
- In a March 2023 presentation circulated to investors, Olguin and Soberal represented that Bitwise’s cash balance was over $77,000,000 as of the end of 2022. They also represented that the company’s revenue was more than $143,000,000. In reality, the company’s cash balance was less than $5,000,000 at that time and its revenue was minimal;
- Also in March 2023, Olguin and Soberal provided an investor with an altered version of an audit of Bitwise that was previously conducted by an international audit firm. They altered the audit to make it appear as though Bitwise’s revenue was 300% higher than was true;
- Also in March 2023, Soberal represented to a long-time Bitwise employee that the company had sufficient resources on-hand to induce the employee to make a significant loan to the company.
This pattern continued until the end of May 2023 when Bitwise ran out of money and the company collapsed.
As a result of Olguin and Soberal’s false and fraudulent representations, Bitwise received $115,000,000 in investments and loans to which the company was not entitled. The ill-gotten money went towards paying the company’s payroll, outfitting its office spaces, and repaying debts owed to prior investors and lenders, among other business expenses.
Olguin and Soberal admitted that they used their positions as Bitwise’s co-Chief Executive Officers to conceal their fraud from the company’s board of directors and others at the company. They also admitted to using sophisticated means to deceive and cheat investors and lenders out of their money.
This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant United States Attorneys Joseph Barton and Henry Carbajal III are prosecuting the case.
Olguin and Soberal are scheduled to be sentenced on Nov. 6, 2024. They face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy to commit wire fraud and wire fraud counts. That makes for a total maximum penalty of 40 years in prison and a $500,000 fine. They also agreed to pay full restitution. The actual sentences, 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.
Austin Felon Indicted for Alleged Drug Trafficking and Firearm Possession After Ramming Police CruiserRead the Press Release
AUSTIN, Texas – A federal grand jury in Austin returned an indictment charging a felon with three counts related to his alleged drug trafficking and firearm possession.
According to court documents, Cliofa Delacruz, 34, is a four-time convicted felon who was arrested by Austin Police officers after allegedly ramming a law enforcement vehicle while evading. Delacruz is alleged to have possessed methamphetamine and loaded firearm inside his vehicle.
Delacruz is charged with one count of possession with intent to distribute controlled substances, one count of felon in possession of firearm, and one count of possession of firearm in drug trafficking. If convicted, he faces up to 10 years in prison and a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Austin Police Department are investigating the case.
Assistant U.S. Attorney Doug Gardner is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Area Pharmacy Agrees to Resolve Civil Allegations of Improper Dispensing of Controlled SubstancesRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Professional Pharmacy & Convalescent Products, Ltd., a pharmacy that was based in Pottstown, PA, agreed to resolve allegations that it had improperly dispensed opioids and other controlled substances to individuals, and submitted claims to Medicare and Medicaid for those illegally dispensed controlled substances. The settlement resolves the case for a payment of $150,000 and comes after the pharmacy surrendered its DEA registration.
Under the Controlled Substances Act, pharmacies like Professional that are registered with the DEA are permitted to dispense controlled substances only to patients based on a valid prescription. A prescription is valid only when issued for a legitimate medical purpose and in the usual course of professional practice. That legal obligation applies to controlled substances broadly and includes drugs like the opioid oxycodone. The settlement between the United States and Professional resolves allegations that, from June 1, 2018, through March 4, 2024, Professional illegally dispensed controlled substances like oxycodone without satisfying these important legal obligations, and illegally submitted claims to Medicare and Medicaid for the drugs. The settlement agreement covers liability under the Controlled Substances Act, which imposes civil penalties for illegal controlled substance prescriptions, and the False Claims Act, which imposes civil damages and penalties for false claims to the federal government.
“Federal law imposes obligations on pharmacies like Professional to only dispense controlled substances when appropriate,” said U.S. Attorney Romero. “The law is critical in protecting our community from the dangers of the opioid epidemic. This settlement provides yet another example of my office’s commitment to pursuing misconduct at every level in the opioid supply chain.”
“Professional Pharmacy exhibited a continued disregard of their obligations under the Controlled Substances Act by illegally dispensing powerful controlled substances like oxycodone over a several year period,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Pharmacies are entrusted with properly dispensing controlled substances in their care.”
“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of the Inspector General. “HHS-OIG, DEA, and the U.S. Attorney’s Office will work together to ensure opioids are dispensed properly and that taxpayer dollars are only spent on bona fide pharmacy claims.”
The case was investigated by the Philadelphia Field Division of the DEA and HHS-OIG. The civil investigation and settlement were handled by Assistant United States Attorney Anthony D. Scicchitano and Auditors Denis Cooke and Dawn Wiggins.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Note: Professional Pharmacy of Pottstown, PA, has no affiliation with Pottstown Pharmacy.
Arapahoe County Man Sentenced to Four Years in Prison in Connection with Robbery of Mail CarrierRead the Press Release
DENVER – The United States Attorney for the District of Colorado announces that Dravell Emon Ross, 28, of Arapahoe County, was sentenced to four years in prison after being pleading guilty to one count of conspiracy to commit robbery and one count of mail theft.
According to the facts within the parties’ plea agreement, in September of 2023, Ross and two other individuals committed a strong-arm robbery of a postal carrier while she was on duty in her mail truck taking her lunch break. Ross and the other individuals attempted to obtain a universal mailbox key to access community mailboxes. The men were unable to steal the universal key, but did steal various pieces of mail, packages, and a postal scanner. The postal carrier suffered minor injuries as a result of the robbery. The other suspects in this case have not yet been charged.
“Mail theft is an all-too-common occurrence in our communities,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our office is focused on keeping our communities safe and prosecuting these crimes to the fullest extent of the law.”
“The United States Postal Inspection Service will not tolerate violence against any U.S. Postal Service employees or theft of the U.S. Mail,” said Inspector in Charge Bryan Musgrove of the Denver Division of the United States Postal Inspection Service. “Postal Inspectors will relentlessly pursue these offenders and ensure they are held responsible for their crimes.”
The defendant was sentenced on July 12, 2024, by Judge Charlotte N. Sweeney.
The case was investigated by the United States Postal Inspection Service. The prosecution was handled by Assistant United States Attorney Tim Neff.
Alabama Man Sentenced to Nearly Five Years in Federal Prison for Setting Fire to his Father’s Connersville Home, Killing Family’s Dog and CatRead the Press Release
INDIANAPOLIS- Tommy Lee Harrison Sr., 34, of Birmingham, Alabama, has been sentenced to 57 months in federal prison, followed by two years of supervised release, after pleading guilty to crossing state lines to commit arson.
According to court documents, on October 28, 2021, Harrison left Birmingham, Alabama, with the intent to travel to Connersville, Indiana to set fire to the home where Harrison’s father lived with his wife, children, and the family’s pets. During the nearly eight-hour drive, Harrison stopped at a Walmart in Elizabethtown, Kentucky and purchased a can of black spray paint.
At 1:40 am on October 29, 2021, Harrison arrived at his father’s Connersville home. Video surveillance from the area showed Harrison parking next door to the victim’s house, exiting the vehicle, placing a container on the ground, and driving away. Harrison returned approximately twenty minutes later, and repeatedly drove around the residence for approximately twenty minutes until he backed his car into the yard.
Over the next hour, Harrison used gasoline to light the inside and outside of his family’s home on fire, destroying their master bedroom, rendering the bedrooms of the family’s children unlivable, and killing two of the family’s beloved pets, a cat and a dog. Harrison also used the spray paint he purchased to deface the property with a racial slur. Harrison departed the scene of the crime and returned to Alabama, where he was later arrested.
“This defendant’s actions had a devastating impact not only on the immediate victims, but on the community of Connersville as well. His actions uprooted a family, destroyed their peace of mind, and shook the small town in which his father was a prominent community leader,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Crossing state lines to commit a violent crime is a serious offense that merits a serious federal prison sentence. Thanks to the talents and persistence of investigators at the FBI, the Indiana Fire Marshal’s Office, and our federal prosecutor, this arsonist was successfully identified and held accountable.”
The Federal Bureau of Investigation and Indiana State Fire Marshal’s Office investigated. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson.
U.S. Attorney Myers thanked Assistant U.S. Attorney Bradley P. Shepard, who prosecuted this case.
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Acupuncturist and Acupuncture Clinic Ordered to Pay $2.3 Million to Resolve Civil False Claims Act AllegationsRead the Press Release
AUSTIN, Texas – U.S. District Judge Robert Pitman has ordered an Austin acupuncturist, Dongxin Ma, and his clinic, Ma Acupuncture Center PC, to pay $2.3 million to the United States under the False Claims Act.
The order enforces a mediated settlement resolving allegations that Dr. Ma and his clinic submitted inflated bills to the U.S. Department of Veterans Affairs (VA) for acupuncture services provided to veterans under the VA’s community care program. Specifically, the United States’ lawsuit alleged that Dr. Ma billed the VA for 60 minutes of one-on-one personal contact for each veteran he treated despite spending no more than 15 minutes with any patient. According to the government’s complaint, Dr. Ma billed as many as 61 hours of one-on-one contact with veterans in a single day.
“Healthcare providers that treat our nation’s veterans must be held to the highest standards,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This office is committed to holding accountable any provider that defrauds a VA health benefits program.”
“This civil settlement is a testament to the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.”
The United States’ lawsuit is captioned United States v. Dongxin Ma, et al., Civil Action No. 1:22-cv-00145-RP (W.D. Tex.). The United States was represented by Assistant U.S. Attorneys Thomas Parnham and Liane Noble.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Tuesday 16 July 2024
Youth Sports Coach Sentenced to 140 Months for Seeking Sex with TeenRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a former youth sports coach to 140 months in prison for trying to have sex with a 13-year-old girl.
On Sept. 24, 2023, Trevor White sent a text to a 13-year-old girl that he knew. White was 41 at the time. He asked for her photo, and in a series of messages about her clothing and their past interactions, probed for a “positive response” from the victim, his plea agreement says. He ended the conversation by sending her a photo of himself shirtless.
The teen reported the suspicious conversation to her parents, who contacted St. Louis County police. The teen’s parents allowed a detective to use her phone, assume her identity and continue the conversation. Over several days, White became increasingly sexually explicit and sought to arrange a meeting so they could engage in sex. He also requested sexually explicit photos of the “teen” and sent two explicit images to her.
On September 29, St. Louis County detectives arrived at White’s home to interview him. White admitted participating in the text conversations, admitted asking the teen for a photo of herself engaging in sexually explicit conduct and admitted arranging to pick her up and take her to a park to have sex with her.
White, of Fenton, Missouri, pleaded guilty in U.S. District Court in St. Louis in April to attempted coercion and enticement of a minor.
In a letter to the court, the teens’ parents said White obtained the teen’s contact information when he bought items for a fundraiser. “Within hours of that exchange, he had already begun to contact her via text message in ways that were inappropriate, predatory, and grotesque,” they wrote. “As you might imagine, she was very shaken and deeply troubled by this, and continues to be.”
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Michael Hayes prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Worcester Man Sentenced for Fentanyl and Firearm ChargesRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Boston for conspiring to distribute fentanyl and being a felon in possession of firearms and ammunition.
Yoelfi Feliz, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to 74 months in prison, to be followed by four years of supervised release. In November 2023, Feliz was charged by criminal complaint with one count of conspiring to distribute and possess with intent to distribute controlled substances and being a felon in possession of a firearms and ammunition.
Between June 2023 and October 2023, Feliz sold over 700 grams of fentanyl to a cooperating witness in Lawrence. Feliz also sold the cooperating witness two pistols, an AR-15 rifle, an AK-47 rifle and two privately made firearms, also known as “ghost guns,” along with ammunition.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Massachusetts Department of Correction; and the Lawrence, Methuen and Worcester Police Departments. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime and Gang Unit 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 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.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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.
West Plains Sex Offender Sentenced for Possessing Computer-Generated Images of Child Sexual AbuseRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Mo., man who is a registered sex offender was sentenced in federal court today for possessing hundreds of computer-generated images of child sexual abuse.
Dace Allen Doverspike, 24, was sentenced by U.S. District Judge Roseann A. Ketchmark to 10 years in federal prison without parole. The court also sentenced Doverspike to 15 years of supervised release following incarceration.
Doverspike, who has a prior federal felony conviction for possessing child pornography, pleaded guilty on Aug. 29, 2023, to possessing an obscene visual representation of the sexual abuse of children.
Doverspike’s probation officer seized his cell phone on May 10, 2023, during a home visit as part of the conditions of his supervised release. The officer discovered multiple images and videos of pornography, including computer-generated images and videos of child pornography, and transferred the phone to Homeland Security Investigations for examination and further investigation. A task force officer examined a microSD storage device that had been inserted into the phone, which contained 255 computer-generated image files that depicted child sexual abuse.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Washington State Man Faces Federal Charges for Damaging Two Portland Area Energy FacilitiesRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Tacoma, Washington, man with damaging two Portland area energy facilities.
Zachary Rosenthal, 33, has been charged with three counts of damaging an energy facility.
According to the indictment, on November 24 and 28, 2022, Rosenthal is accused of knowingly and willfully damaging two energy facilities—the Ostrander Substation in Oregon City, Oregon and the Sunnyside Substation in Clackamas, Oregon—with the intent of interrupting or impairing the function of both facilities. The indictment further alleges that Rosenthal caused damages exceeding $100,000 to the Ostrander Substation and $5,000 to the Sunnyside Substation. Both facilities are involved in the transmission and distribution of electricity.
A single accomplice, Nathaniel Adam Cheney, 30, of Centralia, Washington, is named alongside Rosenthal in charges stemming from the November 28, 2022, damage to the Sunnyside Substation.
A second indictment was also unsealed today charging Rosenthal with stealing firearms from a federal firearms licensee and illegally possessing firearms as a convicted felon. According to this indictment, in January 2023, Rosenthal is alleged to have stolen 24 firearms he was restricted from possessing from a federal firearms licensee in the Portland area.
Rosenthal made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned on both indictments, pleaded not guilty to all charges, and detained pending further court proceedings.
On April 10, 2023, Cheney made his first appearance in federal court. He was arraigned, pleaded not guilty, and released on conditions pending a two-day jury trial currently scheduled to begin on August 20, 2024.
Damaging an energy facility and causing more than $100,000 in damages is punishable by up to 20 years in federal prison and three years’ supervised release. Damaging an energy facility and causing more than $5,000 in damages is punishable by up to five years in federal prison and three years’ supervised release.
This case was investigated by the FBI with assistance from the Clackamas County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Parakram Singh, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
University of Maryland, College Park Agrees to Pay $500,000 to Resolve Allegations That It Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Baltimore, Maryland – The University of Maryland, College Park (UMD) has agreed to pay $500,000 to resolve allegations that it violated the False Claims Act by failing to disclose current and pending support from foreign sources for faculty members who were principal investigators (PI) or co-PIs of federal research grant proposals.
The settlement relates to research grant support UMD received from the National Science Foundation (NSF) and the Department of the Army between 2015 and 2020. These agencies require grant applicants to disclose all current and pending support received by the institution, its PIs, and co-PIs. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors. The agencies rely on the accuracy of these disclosures, in part, to avoid funding duplicative research projects and to ensure their highly competitive grants are awarded only to PIs who demonstrate they have the time and ability to perform the planned work. Non-disclosure of required information can result in missed opportunities for other applicants to receive funding for their own research.
This investigation began as a proactive initiative spearheaded by the NSF Office of Inspector General (OIG) to determine if foreign gifts and contracts subject to Section 117 of the Department of Education’s Higher Education Act of 1965 were also being disclosed in federal grant proposals, as required.
The United States alleged UMD knowingly failed to disclose current and pending foreign funding that three UMD researchers had sought and received, in five research grant proposals submitted to the NSF and Army. Specifically, the United States alleged UMD failed to disclose to NSF gift funding from Huawei Technologies Co., Ltd. to a PI for research in “high energy density FeF3 conversion cathode materials and Li metal anodes.” Additionally, the United States alleged UMD failed to disclose to the NSF and Army grant funding to two other PIs from Taobao (China) Software Co., Ltd. (Alibaba), titled, “Large-Scale Behavior Learning for Dense Crowds”, and “Cyber-Manufacturing of Customized Apparel.”
“Complete and accurate disclosures are essential to federal agencies that make decisions on awarding federal grants,” said Erek L. Barron, United States Attorney for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“NSF plays a major role in the U.S. research enterprise, providing about 25% of all Federal support to America’s colleges and universities for basic research. Lack of institutional oversight of individuals receiving Federal funds poses a serious risk to the success of that enterprise. This investigation was one of NSF OIG’s proactive efforts focused on determining compliance with critical grant terms and conditions, including mandatory disclosures. As this case demonstrated, the failure of institutional oversight can foster noncompliance and present significant challenges to the integrity of the Federal research funding process,” said NSF Inspector General Allison Lerner. “We thank the U.S. Attorney’s Office for the District of Maryland and our investigative partners for their work in protecting federally funded research.”
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of Maryland, with assistance from the NSF OIG and the Department of the Army Criminal Investigation Division.
The matter was investigated by Assistant U.S. Attorney Thomas F. Corcoran for the District of Maryland.
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U.S. files Civil Forfeiture Action to Recover Cryptocurrency Worth $2.5 Million for Victims of Pig Butchering SchemeRead the Press Release
WASHINGTON –The U.S. Attorney’s Office for the District of Columbia filed a civil forfeiture action today to recover cryptocurrency seized by the FBI from perpetrators abroad. The cryptocurrency consists of proceeds from crypto confidence schemes, commonly referred to as “pig butchering,” targeting United States citizens through an investment scam. Specifically, the government seeks to forfeit 2,546,415.01 USDT Coin (USDT) seized from two accounts controlled by a perpetrator in Thailand. This cryptocurrency has a current estimated value of approximately $2,546,415.01.
U.S. Attorney Matthew M. Graves and Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office made the announcement.
“Our office will find and hold accountable criminal organizations – whether they operate within the United States or outside of if – that use fraudulent investment schemes like ‘pig butchering’ to defraud victims in the U.S.,” said U.S. Attorney Graves. “This forfeiture action demonstrates that scammers cannot hide their illegal activity by using cryptocurrency and engaging in complicated transactions: we will find them, seize their illegal proceeds, and get money back to the victims.”
“The rate at which bad actors are using elaborate pig-butchering scams to defraud innocent people is despicable,” said FBI Special Agent in Charge Moy. “The FBI and our law enforcement partners continue to evolve investigative techniques to thwart the progression of this threat and use all available resources to ensure we disrupt and dismantle organizations responsible for contributing to these crimes.”
In a pig-butchering scheme, scammers obtain funds from victims using fraudulent and manipulative tactics. The scammer establishes a level of trust with a victim in online communications and then entices the victim into investing in a fraudulent cryptocurrency scheme. Often the victim is enticed to make additional payments before realizing they are a victim of fraud. The “butchering” or “slaughtering” of the victim occurs once the victim’s assets, or funds, are stolen by the criminal, or criminals, ultimately causing the victim financial and emotional harm.
Civil forfeiture allows the United States to seize assets from fugitives and perpetrators abroad. In this case and others, the Department of Justice uses asset forfeiture to punish and deter criminal activity by depriving criminals of property used in or acquired through illegal activities; to promote and enhance cooperation among federal, state, local, tribal, and foreign law enforcement agencies; and to recover assets that may be used to compensate victims when authorized under federal law. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims. The United States is committed to seizing assets from perpetrators at home and abroad, to holding criminals accountable to the fullest extent of the law, and to making victims whole.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and “pig butchering” fraud scams – should contact the FBI’s Internet Crime Complaint Center at https://www.ic3.gov.
The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Rick Blaylock, Jr. of the United States Attorney’s Office for the District of Columbia along with Trial Attorneys Jonas Lerman and Stefanie Schwartz of the Department of Justice Criminal Division Computer Crime & Intellectual Property Section’s National Cryptocurrency Enforcement Team. Paralegal Gina Torres is providing valuable assistance. FBI Boston, FBI San Diego, and FBI Bangkok with cooperation from the Royal Thai Police, are assisting with the case.
The details contained in the civil forfeiture complaint are allegations, and the United States of America proudly bears the burden of proof.
U.S. Attorney's Office Secures Guilty Plea from Recidivist Offender in Santa Fe Drug Trafficking CaseRead the Press Release
ALBUQUERQUE – A repeat offender from Espanola pleaded guilty in federal court to federal drug trafficking charges.
According to publicly available court documents, on February 23, 2022, while on probation, Jeremy Isaac Lopez, 29, committed an armed robbery in Santa Fe County, New Mexico. He was subsequently charged and placed on house arrest with GPS monitoring as part of his pretrial release conditions.
On March 30, 2023, a bench warrant was issued for Lopez after he intentionally removed his GPS ankle monitor.
On April 19, 2023, Lopez was located and apprehended at the Cities of Gold Casino in Santa Fe, New Mexico, by the Pueblo of Pojoaque Tribal Police Department. During the arrest, officers discovered Lopez was in possession of multiple controlled substances, including:
- Heroin
- More than 5 grams of methamphetamine
- Over 40 grams of a mixture containing fentanyl.
According to public records, Lopez was subsequently convicted by the State of New Mexico for the armed robbery.
Lopez will remain in custody pending sentencing, which has not been scheduled.
At sentencing, Lopez faces up no less than five years and up to 40 years in prison followed no less than four years and up to lifetime of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Pueblo of Pojoaque Tribal Police Department, Chief Freddie Trujillo of the Pojoaque Tribal Police Department, and the Espanola Police Department. Assistant U.S. Attorney Robert James Booth II is prosecuting the case.
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U.S. Attorney's Office Secures Conviction Against Repeat Domestic Violence OffenderRead the Press Release
ALBUQUERQUE – A Bosque Farms man pleaded guilty in federal court to domestic assault by a habitual offender.
According to publicly available court documents, on August 9, 2022, Daniel Vincent Olguin, 37, an enrolled member of the Pueblo of Isleta, assaulted his girlfriend, Jane Doe, by striking her in the back of the head with his hand. Olguin was previously convicted of assaulting his intimate partner in 2012 and 2016.
The Court ordered that Olguin remain in custody pending sentencing, which has not been scheduled.
At sentencing, Olguin faces up to 10 years in prison. Upon his release from prison, Olguin will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Isleta Police Department investigated this case. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Plea Agreement# # #