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Thursday 11 July 2024
Mexican and El Salvadoran Nationals Sentenced for Drug Trafficking Conspiracy in the District of ColumbiaRead the Press Release
Erik Rivera Garcia, 29, of Mexico, and Vladimir Roque Ceron, 33, of El Salvador, were sentenced this week for participating in a drug trafficking conspiracy that sold fentanyl and kilogram quantities of cocaine into the Washington, D.C. area, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Special Agent in Charge Jarod Forget of the DEA Washington Division.
Both Rivera Garcia and Roque Certon were previously charged in a multi-defendant indictment, returned September 1, 2023, alleging a drug conspiracy and various firearms and drug distribution counts.
Rivera Garcia pleaded guilty on March 13, 2024, to conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. Rivera Garcia was sentenced Wednesday to 62 months in prison by U.S. District Court Judge John D. Bates, who also ordered him to serve four years of supervised release.
Roque Ceron pleaded guilty March 5, 2024, to conspiracy to distribute and possess with the intent to distribute a mixture and substance containing a detectable amount of fentanyl and a mixture and substance containing a detectable amount of cocaine. Judge Bates sentenced Roque Ceron today to 14 months in prison and three v years of supervised release.
According to court documents, Rivera Garcia served as armed “protection” for the drug trafficking conspiracy which sold large quantities of cocaine and other drugs in the D.C. region from at least March 2023 to August 8, 2023. On at least two occasions, Rivera Garcia accompanied one or more co-conspirators for cocaine transactions totaling more than four kilograms of cocaine.
First, on August 8, 2023, Rivera Garcia served as protection for a sale of approximately 515 grams of cocaine. Then, on August 18, 2023, Rivera Garcia arrived in a vehicle with other co-conspirators when they were arrested. Agents recovered from the area where Rivera Garcia was seated a bag containing approximate weight of 3.6 kilograms of cocaine and a.38 caliber revolver, loaded with five .38 caliber rounds in the cylinder. Another co-conspirator in the vehicle was found with a privately manufactured Polymer 80 semiautomatic pistol with a 30-round extended magazine containing 22 rounds of 9mm ammunition with one round in the chamber.
Meanwhile, Roque Ceron directly sold 197 grams of cocaine and 111 pills containing fentanyl with an aggregate weight of 11.62 grams to confidential sources from March 22, 2023 to June 1, 2023, on five separate occasions. DEA laboratory analysis confirmed that the pills and the powder purchased from Roque Ceron contained fentanyl and cocaine, respectively. All of the pills sold by Roque Ceron were found to contain a potentially lethal dose of fentanyl (more than 2 mg/per tablet).
Both Rivera Garcia and Roque Ceron were unlawfully present in the United States during the offenses.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the DEA’s Washington Field Division and the FBI’s DC Safe Streets Task Force with assistance from the Department of Homeland Security’s Immigration and Customs Enforcement and the Metropolitan Police Department.
This case is being prosecuted by Special Assistant U.S. Attorneys Timothy J. Coley and Ernesto J. Alvarado with the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office for the District of Columbia.
23cr0302
McAlester Resident Sentenced for Bank FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bradley Scott Sutterfield, age 43, of McAlester, Oklahoma, was sentenced to three months in prison for one count of Bank Fraud, in violation of Title 18, United States Code, Section 1344.
The charges arose from an investigation by the United States Secret Service.
On March 5, 2024, Sutterfield pleaded guilty to the charge. According to investigators, Sutterfield presented two savings bonds which he knew to be counterfeit to the teller of a federally insured bank in McAlester, Oklahoma, and exchanged the fake bonds for U.S. currency.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Kara Traster represented the United States.
Man Who Orchestrated St. Louis Area Mail Theft Conspiracy Sentenced to 27 Months in PrisonRead the Press Release
ST. LOUIS –A man who orchestrated a conspiracy that stole checks from the U.S. mail and then committed bank fraud was sentenced Thursday to 27 months in prison.
U.S. District Judge Matthew T. Schelp also ordered Dareon Graham to repay $46,434 to victims.
In 2022, Graham obtained a stolen key that opened mail collection boxes and gave that key to his codefendant Tyrell Hardin. Graham agreed to pay Hardin to steal mail and told him to target specific collection boxes in and around St. Louis County. Hardin gave the stolen mail to Graham, who opened the mail and removed checks. Graham then recruited bank and credit union account holders to allow their accounts to be used to deposit checks after Graham had altered them.
During the scheme, Graham deposited or caused the deposit of fraudulent checks totaling at least $103,457 and obtained $46,434 in proceeds.
“This sentencing is a statement that mail theft will not be tolerated, and the perpetrators will be brought to justice,” said Acting Inspector in Charge, John Jackman, who leads the St. Louis Field Office of the U.S. Postal Inspection Service. “The Postal Inspection Service will continue to partner with other law enforcement agencies to collectively pursue criminals who victimize postal customers.”
Graham’s case came at a time of rising incidents of mail theft and robberies of and attacks on U.S. Postal Service employees. The Postal Service has responded by, among other things, enhancing the security of mail collection boxes and enhancing investigations of crimes associated with the mail. There were 1,025 arrests associated with mail theft cases and 213 associated with robberies from May 12, 2023 through March 2024, the Postal Inspection Service says.
Graham, 23, of Ferguson, Missouri, pleaded guilty to one count each of conspiracy to commit mail theft, bank fraud and possession of stolen mail matter. Hardin, 22, of Hanley Hills, pleaded guilty to one count of conspiracy to commit mail theft and two counts of mail theft.
The U.S. Postal Inspection Service, the Maryland Heights Police Department, the St. Louis County Police Department, the Chesterfield Police Department, the Frontenac Police Department, the St. Peters Police Department and the Town and Country Police Department investigated the case. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
Lottery Scam Money Launderer Pleads GuiltyRead the Press Release
TUCSON, Ariz. – Fiona Lorraine Walters, 50, of Newburgh, NY, pleaded guilty today to Conspiracy to Commit Money Laundering. Sentencing is scheduled for September 23, 2024, before United States District Judge Scott M. Rash.
Walters admitted that, between July 5, 2016, and August 15, 2020, she laundered over $300,000 in fraud proceeds, through her and family members’ bank accounts. The funds were fraudulently obtained from victims, many of them elderly, who sent the money under the belief they were paying fees associated with winning a lottery or sweepstakes, but which were scams. Walters and her co-conspirators fraudulently transferred or kept the victims’ money and no “winnings” were ever paid.
A conviction for Conspiracy to Commit Money Laundering carries a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the funds involved in the offense, whichever is greater, or both, and a term of three years supervised release.
This case was prosecuted as part of the Department of Justice’s Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10 a.m. to 6 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
The United States Postal Inspection Service conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, AZ, is handling the prosecution.
CASE NUMBER: CR-23-01158-TUC-SHR
RELEASE NUMBER: 2024-092_Walters# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Long Island Fisherman Sentenced for Role in Fisheries Fraud ConspiracyRead the Press Release
A Long Island, New York, fisherman was sentenced yesterday to 30 months in prison and two years of supervised release for his role in a fisheries fraud conspiracy associated with his captainship of the trawler New Age from 2014 to 2017.
In October 2023, a jury convicted Christopher Winkler, of Montauk of one count of federal criminal conspiracy, two counts of mail fraud and two counts of obstruction of justice.
On at least 200 fishing trips, Winkler targeted summer flounder (fluke) and black sea bass, and harvested those fish in excess of quotas and state trip limits. He also falsified Fishing Vessel Trip Reports for those trips.
In a related case, Bryan and Asa Gosman and the company they partially own — Bob Gossman Co. Inc. — previously pleaded guilty for their role in the fishing fraud conspiracy. In total, approximately 200,000 pounds of fluke and black sea bass were overharvested, with a conservative wholesale valuation of $750,000.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and Assistant Director Michael Henry of National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement, Northeast Division made the announcement.
NOAA’s Office of Law Enforcement investigated the case as part of Operation One-Way Chandelier.
Christopher L. Hale and Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case, with logistical support from the U.S. Attorney’s Office for the Eastern District of New York.
Lincoln Man Sentenced for Selling MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Steven James Martinez, 24, of Lincoln, Nebraska, was sentenced on July 11, 2024, in federal court in Lincoln for two counts of distribution of five grams or more of methamphetamine. Senior United States District Judge sentenced Martinez to 77 months’ imprisonment on each count to run concurrently (at the same time). There is no parole in the federal system. After Martinez’s release from prison, he will begin a 5-year term of supervised release.
On March 28, 2022, and March 29, 2022, an undercover officer working with the Lincoln/Lancaster County Narcotics Task Force purchased meth from Martinez in Lincoln. The March 28, 2022, purchase was approximately one ounce, and the March 29, 2022, purchase was approximately two ounces. Testing showed those two quantities contained a total of at least 52 grams of actual (or pure) meth.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Major Migrant Smuggling Ring Pleads GuiltyRead the Press Release
NEWS RELEASE SUMMARY – July 11, 2024
SAN DIEGO – Felipe de Jesus Rosales-Herrera of Riverside pleaded guilty in federal court today to human smuggling charges, admitting he was a leader of an organization that smuggled more than 100 unauthorized migrants into the United States, in some instances imperiling public safety by leading authorities on high-speed chases.
According to his plea agreement, Rosales-Herrera employed foot guides to lead migrants over the border and drivers to pick them up on the U.S. side and deliver them to a stash house to meet a sponsor. Rosales-Herrera admitted that he charged approximately $10,000 per migrant.
According to court documents, some of the smuggling events in the conspiracy resulted in high-speed chases and crashes, which placed the migrants, drivers, law enforcement, and members of the public at risk. This culminated in a tragic collision on December 25, 2021. Kevin Antonio Quevedo-Moncada, acting under co-defendant Jose Luis Alejo-Cruz’s supervision, picked up three undocumented migrants in a remote area. When Border Patrol attempted to pull him over, Quevedo-Moncada fled into a nearby campground, swerving wildly and careening around a field at high speed before ramming a Border Patrol vehicle to escape. As agents pursued him, he sped away on wet, winding roads, reaching speeds of close to 100 mph. Quevedo-Moncada lost control of his car and struck a tree, killing one of the migrants and leaving the other two in critical condition. Quevedo-Moncada pleaded guilty to charges related to this incident.
Even after learning that his driver had killed someone, Rosales admitted in his plea agreement that he and his co-conspirators continued the conspiracy. As co-defendant John Douglas Oglesby III admitted in his plea agreement, drivers were told to flee if Border Patrol attempted to pull them over. Unfortunately, many drivers did just that, resulting in numerous high-speed chases and several crashes. Alejo-Cruz also relied on intimidation to preserve his position, tracking down and robbing two of his former drivers at gunpoint when he felt they had wronged him and plotting to kidnap a rival migrant smuggler.
“These smugglers treated humans as a commodity, endangering not only the migrants’ lives, but the safety of every driver on the road,” said U.S. Attorney Tara McGrath. “This office is focused on dismantling smuggling organizations and holding their leaders accountable.”
“We will never stop targeting these criminal organizations who prioritize profit over lives,” said U.S. Border Patrol, San Diego Sector Chief Patrol Agent Patrica McGurk-Daniel. “Our agents are committed to the safety and security of migrants, the public, and our nation. It is only through strong partnerships with the U.S. Attorney’s Office, and all our law enforcement partners, that we ensure justice is served and consequences are delivered to these criminals.”
Co-defendants Alejo-Cruz and Oglesby were previously sentenced to 120 months and 70 months in federal prison, respectively. Sentencing for Rosales-Herrera is scheduled to take place on October 11, 2024. A motion hearing and trial setting for the final defendant, Miguel Isaac Villa-Gomez, is scheduled for July 12, 2024.
This case is being prosecuted by Assistant U.S. Attorney Paul Benjamin.
DEFENDANTS
Case Number 23-CR-871-CAB
Felipe de Jesus Rosales-Herrera Age: 38 Riverside County, CA
Jose Luis Alejo-Cruz Age: 23 Long Beach, CA
John Douglas Oglesby III Age: 20 Chesapeake, VA
Miguel Isaac Villa-Gomez Age: 27 Downey, CA
Case Number 22-CR-1995-CAB
John Douglas Oglesby III Age: 20 Chesapeake, VA
SUMMARY OF CHARGES
Conspiracy to Transport Aliens – Title 8, U.S.C., Section 1324
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
Justice Department and EPA Announce $241.5M Settlement with Marathon Oil to Reduce Climate- and Health-Harming Emissions in North DakotaRead the Press Release
The Justice Department and Environmental Protection Agency (EPA) today announced a settlement with Marathon Oil Company resolving Clean Air Act violations at the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota. The settlement requires that Marathon pay a civil penalty of $64.5 million, the largest ever for violations of the Clean Air Act at stationary sources, which include facilities such as oil and gas tank systems. Under the settlement agreement, Marathon will implement extensive compliance measures to achieve major reductions in harmful emissions from over 200 facilities across the state.
“This historic settlement — the largest ever civil penalty for violations of the Clean Air Act at stationary sources — will ensure cleaner air for the Fort Berthold Indian Reservation and other communities in North Dakota, while holding Marathon accountable for its illegal pollution,” said Attorney General Merrick B. Garland. “The complaint alleges that Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal emissions. The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years and also eliminate nearly 110,000 tons of VOC emissions. The Justice Department will continue to vigorously enforce our environmental laws to protect the health of the American people.”
The case is the first of its kind against an oil and gas producer for violations of major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program. The complaint alleges that these and other Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal pollution, including volatile organic compounds (VOCs) and carbon monoxide, which contribute to asthma and increase susceptibility to respiratory illnesses. Additionally, greenhouse gases, including methane, were released in large quantities, contributing to climate change.
While Marathon is the nation’s 22nd largest producer of oil based on 2022 data, it is the 7th largest emitter of greenhouse gas emissions in the oil and gas industry. A large portion of these emissions come from flaring, an industry practice that combusts but also releases methane, a climate super-pollutant. The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years, similar to the amount of reductions achieved by taking 487,000 cars off the road for one year. The settlement will also eliminate nearly 110,000 tons of VOC emissions.
“The record civil penalty and extensive compliance measures, including an innovative cap on VOC emissions, set a benchmark for the Department’s enforcement efforts at oil and gas production facilities,” said Acting Associate Attorney General Benjamin C. Mizer. “Those who are historically overburdened by pollution are the most at risk of being harmed by these emissions. The Justice Department is committed to enforcing laws such as the Clean Air Act to protect the health of everyone in the United States, including Tribal Nations and their members.”
“This landmark settlement will ensure cleaner air throughout the State of North Dakota and substantially reduce pollutants that contribute to global warming,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to taking strong action to ensure that oil and gas production operations across the nation comply with environmental laws designed to protect human health and the environment.”
“Today’s historic settlement is the most significant to date under EPA’s climate enforcement initiative as well as part of a larger effort to hold oil and gas companies accountable for widespread violations at oil and gas facilities throughout the country,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “As a result of today’s settlement, Marathon will dramatically cut its emissions, including the release of methane, a climate super-pollutant that is 25 times more potent in the near term than carbon dioxide. EPA is committed to doing everything possible to limit climate change and ensure a sustainable future.”
“This settlement is a major win for the health and future of our Tribal communities, including people and families who are often overburdened by pollution,” said KC Becker, EPA Region 8 Administrator. “As a result of the agreement, Marathon has and will continue to take comprehensive measures to come into compliance and reduce harmful emissions across hundreds of production sources. These investments will improve air quality and reduce respiratory illnesses across the Fort Berthold Indian Reservation and western North Dakota.”
The agreement requires Marathon to invest in extensive compliance measures estimated to cost $177 million, much of which will be expended by the end of 2024. The settlement requires Marathon to obtain permits with federally enforceable emissions limits at production facilities on the Fort Berthold Indian Reservation and future operations in the state of North Dakota. Compliance measures also include flare monitoring, periodic infrared camera inspections and implementation of storage tank design requirements.
These actions will significantly reduce harmful health-related emissions from 169 existing facilities on state land and on the Fort Berthold Indian Reservation, as well as at new facilities built in North Dakota. Therefore, the United States will secure pollution limits on twice the number of facilities where it investigated and alleged violations.
The complaint alleges that Marathon failed to obtain required preconstruction permits under the PSD program and operating permits under the Title V program.
The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources. Like all of EPA’s national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and other potential environmental justice concerns.
The complaint and the proposed consent decree were filed by the Justice Department’s Environmental Enforcement Section. The proposed consent decree is subject to a 30-day public comment period. It can be viewed on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Background
The complaint also alleges failure to comply with storage tank design, operation and maintenance requirements at 66 facilities on the Fort Berthold Indian Reservation. The settlement requires Marathon to obtain permits for its existing facilities on the Reservation and for new facilities it builds in North Dakota. These actions will cap VOC emissions at under 100 tons per year.
The settlement further requires auditor checks on Marathon’s permit applications and ongoing audits of emissions from its facilities. Marathon must temporarily stop production if facility-wide emissions limits are exceeded or if flares are not operating properly.
In addition to three other projects to reduce emissions, Marathon will purchase two infrared cameras for use by the Mandan, Hidatsa and Arikara (MHA) Nation during oil and natural gas production facility inspections.
A major part of this case is the reduction of flaring at the facility. Flaring burns harmful natural gas components such as VOCs and methane, but the process is not 100% efficient meaning that in addition to water and carbon dioxide, some methane is still released to the atmosphere. These inefficiencies, exacerbated by improper flare operation or unlit flares, result in excess emissions being released to the atmosphere and can have health impacts on the surrounding communities.
Jury Finds Maryland Man Guilty for Pointing Gun at the Head of a Delivery DriverRead the Press Release
WASHINGTON – Charles Price, 66, of Lanham, MD was found guilty by a jury on July 8, 2024, of assault with a dangerous weapon and possession of a firearm during a crime of violence. The verdict, announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD), follows a three-and-a-half-day trial in the Superior Court of the District of Columbia.
The Honorable Errol Arthur scheduled sentencing for September 12, 2024. Price faces a mandatory minimum sentence of five years in prison.
According to the evidence and testimony presented at trial, on March 30, 2022, the victim was delivering an UberEATS order when he attempted to shift into the left lane but noticed a white Mercedes blocking his attempts to get over. Eventually, the victim was able to shift into the lane and get in front of that vehicle. However, the victim noticed the driver of the white Mercedes, identified as Charles Price, tailgating him, and following him. The victim became afraid and made a U-turn at 3rd and K Street NE to get away from the vehicle driven by the defendant. After making the U-turn, the victim was stopped at a red light when Price walked up to his vehicle and pointed a gun at his head.
This case was investigated by the Metropolitan Police Department and is being prosecuted by Assistant United States Attorneys Shaniqua Butler and Kraig Ahalt.
Jury Convicts Portage Man of International Telemarketing Fraud That Targeted Elderly VictimsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Irfan Gill, 62, of Portage, Michigan, was convicted by a jury of 7 counts of mail fraud and 11 counts of money laundering. Gill was previously indicted for working with a call center in Pakistan, from as early as June 2018 through at least March 2022, as part of a telemarketing fraud scheme that targeted elderly victims across the United States.
“Mr. Gill ran a multi-year, international telemarketing scam targeting American citizens,” said U.S. Attorney Totten. “Today’s conviction secures a measure of justice for his unsuspecting victims. Fighting elder fraud and abuse is a priority for my Office and we will continue to hold perpetrators accountable, whether here in the U.S. or abroad.”
According to allegations in the indictment, Gill claimed to operate several businesses: Cable Upgrade; D Network; D Tech; Direct Network; Dish; Dish Upgrade; and Sky Satellite. Telephone solicitors at a call center in Pakistan cold-called victims with offers of equipment upgrades, software upgrades, and subscription discounts for their cable television, satellite television, and internet services. While the businesses did not actually provide any of those services, callers instructed victims to send payments to Gill’s post office boxes in Portage. Gill deposited victims’ payments in his bank accounts. Gill tracked victims’ payments and used money transfer services like Remitly and Western Union to pay a portion of the proceeds to the telephone solicitors in Pakistan. The U.S. Attorney’s Office believes the scheme victimized over 1,400 people nationwide.
Gill faces up to 30 years in prison on the mail fraud charges because the jury found that he committed a telemarketing fraud that targeted or victimized 10 or more people over the age of 55. He faces up to 20 years in prison for the money laundering charges in the indictment. The date of sentencing has not yet been scheduled but typically occurs within three to four months after conviction in federal court.
Federal law enforcement provides a number of tips on how to protect yourself from telemarketing scams, including:
- Be cautious of unsolicited phone calls, e-mails, and mailings.
- Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses.
- Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action.
- If you recognize a scam attempt, immediately end all communication with the perpetrator.
This case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Adam Townshend and Stephen Baker tried the case on behalf of the United States.
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Media Note: The previous press release and video from U.S. Attorney Mark Totten can be found viewed at the following link Portage Man Charged With International Telemarketing Fraud That Targeted Elderly Victims
Indianapolis CPA Pleads Guilty to Participating in Illegal Tax ShelterRead the Press Release
An Indiana CPA pleaded guilty yesterday to assisting in the preparation of false tax returns on behalf of clients who participated in an illegal tax shelter.
According to court documents and statements made in court, between 2013 and 2022, Jason L. Crace prepared income tax returns for clients that claimed millions of dollars in false deductions for so-called “royalty payments.” However, as Crace knew, these “royalty payments” were merely circular flows of money designed to give the appearance of genuine business expenses. In reality, tax shelter participants sent their money to bank accounts controlled by scheme promoters, who then sent the money right back to different bank accounts that the participants controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns. Participants’ decision regarding how much (and even whether) to pay “royalties” was driven purely by the amount of income they wanted to shelter from the IRS on their tax returns.
In total, Crace’s preparation of false tax returns claiming fraudulent “royalty” deductions caused a loss to the IRS of at least $2,532,936.
Crace is scheduled to be sentence on Jan. 14, 2025. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Richard J. Hagerman, William M. Montague and Matthew C. Hicks of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi are prosecuting the case.
Indianapolis CPA Pleads Guilty to Participating in Illegal Tax ShelterRead the Press Release
Jackson, Miss. - An Indiana CPA pleaded guilty yesterday to assisting in the preparation of false tax returns on behalf of clients who participated in an illegal tax shelter.
According to court documents and statements made in court, between 2013 and 2022, Jason L. Crace prepared income tax returns for clients that claimed millions of dollars in false deductions for so-called “royalty payments.” However, as Crace knew, these “royalty payments” were merely circular flows of money designed to give the appearance of genuine business expenses. In reality, tax shelter participants sent their money to bank accounts controlled by scheme promoters, who then sent the money right back to different bank accounts that the participants controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns. Participants’ decision regarding how much (and even whether) to pay “royalties” was driven purely by the amount of income they wanted to shelter from the IRS on their tax returns.
In total, Crace’s preparation of false tax returns claiming fraudulent “royalty” deductions caused a loss to the IRS of at least $2,532,936.
Crace is scheduled to be sentence on Jan. 14, 2025. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Richard J. Hagerman, William M. Montague and Matthew C. Hicks of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi are prosecuting the case.
Honduran National Sentenced for Possessing Firearms, Ammunition, and a Machinegun as an Illegal AlienRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JUNIOR ALEXANDER MONCADA-VARGAS (“MONCADA-VARGAS”), age 35, of Honduras, was sentenced on July 10, 2024 to thirty (30) months in prison by U.S. District Judge Brandon S. Long, after previously pleading guilty to possession and transfer of a machinegun, as well as, three counts of being an illegal alien in possession of a firearm and ammunition. Judge Long also sentenced MONCADA-VARGAS to three years of supervised release, payment of a $100 mandatory special assessment fee and will face deportation proceedings after serving his prison sentence.
According to court records, on or about July 21, 2023, August 2, 2023 and September 18, 2023, respectively, MONCADA-VARGAS, sold to undercover agents, a Glock Model 22 Gen 5, .40 caliber semi-automatic handgun, with a Glock auto-sear, and approximately twenty-two (22) rounds of ammunition, a Kalashnikov USA Model KR103, 7.62 x 39-millimeter semi-automatic rifle and approximately thirty (30) rounds of ammunition, and a Norinco Model SKS, 7.62 x 39- millimeter semi-automatic rifle, and approximately thirty (30) rounds of ammunition. On September 18, 2023, MONCADA-VARGAS was arrested and admitted that he was an illegal alien who was unlawfully present in the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in this matter. Assistant U.S. Attorney Troy L. Bell of the Violent Crimes Unit is in charge of the prosecution.
Heavener Resident Sentenced for Federal Drug CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joseph Scott Casteel, age 37, of Heavener, Oklahoma, was sentenced to 130 months in prison for one count of possessing with the intent to distribute methamphetamine.
The charge arose from an investigation by the Department of Homeland Security and the Oklahoma Highway Patrol.
On February 5, 2024, Casteel pleaded guilty to possessing methamphetamine with the intent to distribute. According to investigators, on July 25, 2023, law enforcement observed a vehicle on US 59 highway in LeFlore County traveling at speeds exceeding 100 miles per hour. OHP troopers gave chase, and observed Casteel throw a large bag from the vehicle. After stopping the vehicle, Troopers apprehended Casteel. Troopers also retrieved the bag which contained over 850 grams of methamphetamine. Casteel later admitted to purchasing the methamphetamine with the intent to sell it to others.
The Honorable William P. Johnson, Chief U.S. District Judge of the United States District Court for the District of New Mexico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Casteel will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Harrisburg Man Sentenced to Prison for Odometer TamperingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 10, 2024, Earnest Fry, 49, of Harrisburg, Pennsylvania, was sentenced to 30 months’ imprisonment by U.S. District Court Judge Christopher C. Conner following his conviction for odometer tampering and forging vehicle titles. Judge Conner also ordered Fry to pay victims more than $47,000 in restitution, $700 in assessments, and to serve three years on supervised release following his term of imprisonment. Fry previously pleaded guilty to the offenses.
According to United States Attorney Gerard M. Karam, just months after Fry was released from state prison for burglary and theft offenses in October 2018, and while he was on parole, he devised a scheme to purchase used cars, alter the cars’ true mileages by replacing or resetting their odometers, and then sell the vehicles online to unsuspecting customers who paid inflated prices for vehicles they might not otherwise have bought. In addition, Fry altered or forged the Commonwealth of Pennsylvania titles to multiple vehicles that he sold by causing the titles to reflect false, lower mileages. Fry altered the odometers on at least 55 used cars that he sold and rolled back more than five million miles on the vehicles. In some cases, Fry caused the odometers to be rolled back by nearly 200,000 miles. Fry’s offenses not only caused victims to pay far more for the cars than they were worth, but created the risk that buyers would incur additional losses due to likely increased maintenance costs, excessive insurance premiums, and other unanticipated expenses.
The case was investigated by the U.S. Department of Transportation, the National Highway Traffic Safety Administration, and the Pennsylvania State Police. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
The National Highway Traffic Safety Administration estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393, or email [email protected].
More information on odometer fraud is available on the NHTSA website, https://www.nhtsa.gov/equipment/odometer-fraud.
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Gun Supplier and Co-Defendants Convicted of Killing 13-Year-Old BoyRead the Press Release
WASHINGTON – On July 10, 2024, a Superior Court jury returned guilty verdicts for defendants Tyiion Freeman, Koran Jackson and Stephon Nelson on first degree murder while armed, several counts of assault with intent to kill while armed, conspiracy to commit various firearms offenses and other firearms-related charges stemming from the murder of 13-year-old Malachi Lukes on March 1, 2020, U.S. Attorney Matthew M. Graves announced.
Between February 1, 2020, and May 31, 2020, the defendants, along with two other defendants (whose cases were severed pre-trial), participated in a conspiracy to illegally possess, carry, and transfer firearms for the purpose of using those firearms in the commission of dangerous and violent crimes. Jackson and Freeman, along with the severed defendants, are members and associates of neighborhood crews. Between 2019-2020, the defendants’ neighborhood crews were feuding with other crews and the feud escalated when Tahlil Byrd, also known as Slatt Goon, was killed in September 2019.
Stephon Nelson, who is a felon and approximately 10 years older than his coconspirators, supplied the firearms that were illegally possessed, carried, and transferred in the conspiracy. Over the span of nine days, February 22-March 1, 2020, the defendants engaged in a shooting spree in the Petworth, Shaw, and Stronghold neighborhoods using the firearms they illegally acquired and shared as a part of the firearms conspiracy. The first charged shooting occurred on February 22, 2020, in the Petworth neighborhood when two victims were fired upon after a mere verbal exchange with two defendants. Two days later, on February 24, 2020, the conspirators drove through rival crew territory Ninth Street where they shot three rival crew members. An innocent bystander who was sitting in her vehicle was caught in the barrage of gunfire. She fortunately escaped with little physical injury because her front windshield suffered the bulk of the damage. The spree culminated on March 1, 2020, when the defendants participated in two shootings in two separate neighborhoods over the span of ten minutes. At 2:08 p.m., the defendants, who were traveling in a stolen Kia Soul, followed 13-year-old Malachi Lukes, along with his three friends, into the Ninth Street area of the 600 block of S Street, N.W., where two defendants exited the Kia Soul and opened fire on them. Malachi Lukes was shot in the back as he fled. The bullet traveled through his heart and lung causing him to collapse to his death. The defendants then traveled to another neighborhood where members of the rival crew were known to gather and at 2:18 p.m., opened fire on individuals in that block. No injuries were reported in that shooting spree.
At the conclusion of the trial, jurors returned guilty verdicts against the defendants including the gun supplier who was not present for the homicide.
In announcing the verdict, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD). He also acknowledged Assistant United States Attorneys Michelle Jackson, Tamara Rubb and Nebiyu Feleke for their critical efforts in prosecuting this case.
Gibsonia Resident Pleads Guilty to Insider Trading of Dick’s Sporting Goods SecuritiesRead the Press Release
PITTSBURGH, Pa. - A resident of Gibsonia, Pennsylvania, pleaded guilty in federal court to charges of securities fraud, United States Attorney Eric G. Olshan announced today.
Frank T. Poerio, Jr., 62, pleaded guilty to four counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the Court was advised that Poerio used sensitive, material non-public information (MNPI) obtained from a Dick’s Sporting Goods (Dick’s) employee to engage in 160 trades of the company’s securities on the New York Stock Exchange. These transactions included the purchase of individual shares and call option contracts and occurred between August 2019 and May 2021, when the insider worked in a data analytics role at the company’s corporate offices in Moon Township, Pennsylvania. The trades netted approximately $823,000 in profits for Poerio, who often spoke with the employee about finances and investing. Several of the trading incidents occurred in the days immediately preceding Dick’s release of periodic earnings statements—so called “blackout” periods, when Dick’s employees were prohibited from trading in the company’s securities.
“Frank Poerio admitted to gaming the system by using material non-public information from a company employee to conduct well more than a hundred trades over the course of several years that resulted in nearly a million dollars in profit,” said U.S. Attorney Olshan. “Our office is dedicated to working with our law enforcement partners and fellow agencies to protect the integrity of our public trading systems and ensure that anyone who cheats those systems to score easy profits is held accountable under the law.”
“Insider trading erodes the foundation of our economy and undermines public trust in our institutions. This is not simply a casual, petty crime,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI will persistently pursue those who believe they can abuse their position to unfairly reap financial gains at the expense of others. The FBI and our partners remain vigilant in fighting for fairness and integrity in our financial system.”
Judge Horan scheduled sentencing for October 31, 2024. At each count, the defendant faces a maximum sentence of up to 20 years in prison, a $5 million fine, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant, among other factors.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Poerio.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Zachary D. Barnes, 32 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, announced United States Attorney Clifford D. Johnson.
Barnes was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, between September 2020, and March 2022, Barnes conspired with others to distribute and possess with intent to distribute methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fort Defiance Man Sentenced to over 15 Years in Prison for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX, Ariz. – Leonard Thomas Stewart, III, 24, of Fort Defiance, was sentenced on June 17, 2024, by United States District Judge Michael T. Liburdi to 188 months in prison, followed by lifetime supervised release. Stewart pleaded guilty to Abusive Sexual Contact of a Child on October 31, 2023.
Between October 3, 2017, and July 11, 2019, Stewart engaged in abusive sexual contact with the minor victim on numerous occasions. One instance of sexual contact occurred in Fort Defiance while Stewart and the minor victim were riding horses together. Both the victim and Stewart are members of the Navajo Nation Indian Tribe and the abusive sexual contact occurred on the Navajo Nation Indian Reservation.
The Federal Bureau of Investigation and the Navajo Nation Police Department conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08029-PCT-MTL
RELEASE NUMBER: 2024-091_Stewart# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Former Rochester firefighter pleads guilty to child pornography chargesRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Brett Marrapese, 32, of Irondequoit, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to distribution and receipt of child pornography, The charges carry a mandatory minimum penalty of five years in prison per count, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between January 2016, and June 13, 2023, Marrapese used a cell phone, laptop computer, an email account, and multiple social media and internet chat applications, including Omegle; Kik; Snapchat; and Instagram, to produce, receive, distribute, and possess child pornography. In total, Marrapese received more than 600 images of child pornography that he obtained from others via the internet. He also posed as a teenage boy causing minors to produce and send to him sexually explicit images of themselves. Some of the images that Marrapese distributed and received depicted violence against and sexual abuse of children, infants, and toddlers.
The plea is the result of an investigation by the Irondequoit Police Department, under the direction of Chief Scott Peters, and the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for November 6, 2024, at 1:00 p.m. before Judge Wolford.
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Former Local 98 Business Manager John Dougherty Sentenced to Six Years in Prison for Public Corruption, Embezzlement ConvictionsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that John Dougherty, 64, of Philadelphia, PA, was sentenced today by United States District Court Judge Jeffrey L. Schmehl to 72 months’ imprisonment, three years of supervised release, forfeiture of $353,941.35, a $7,100 special assessment, and $50,000 in restitution now, with full restitution to be determined later, for crimes arising from his embezzlement of funds belonging to Local 98 of the International Brotherhood of Electrical Workers (“Local 98”) and multiple crimes involving his payment of bribes to codefendant Robert Henon.
In January 2019, a federal grand jury issued a sweeping indictment against Dougherty, the longtime business manager of Local 98, then-Philadelphia City Council Member Robert Henon, and others employed by or affiliated with Local 98.
The indictment charged that between May 2015 and September 2016, Dougherty and Henon deprived the City of Philadelphia and its citizens of their right to Henon’s honest services as a member of City Council. It further alleged that Henon received a salary and other things of value from Dougherty and, in exchange, that Henon used his position as a member of City Council to serve Dougherty’s interests.
In addition, Dougherty, then-Local 98 President Brian Burrows, and other union officers and employees were charged with conspiracy and embezzlement arising from their theft of approximately $600,000 in Local 98 funds from April of 2010 through August of 2016. The indictment also charged Dougherty and Burrows with concealing the embezzlement of Local 98 funds by causing false labor management reports, known as LM-2s, to be filed with the U.S. Department of Labor, and with filing false federal income tax returns by failing to report the funds they stole on their tax returns.
Following the indictment, separate trials were held for the crimes involving public corruption and those involving embezzlement.
On November 15, 2021, a federal jury convicted Dougherty on one count of conspiracy to commit honest services fraud and seven counts of honest services wire fraud. The jury convicted Henon on one count of conspiracy to commit honest services fraud, eight counts of honest services wire fraud, and one count of federal program bribery.
The honest services wire fraud convictions against both defendants included official acts that Henon performed or promised to perform in connection with schemes involving the City of Philadelphia’s Department of Licenses and Inspections and stopping the installation of MRI machines at the Children’s Hospital of Philadelphia; using the proposed Plumbing Code to assist the election of Dougherty as the Business Manager of the Building Trades; drafting towing legislation that Dougherty requested because a tow truck driver refused to accept payment by credit card after Dougherty had parked illegally; and allowing Dougherty to make demands on Comcast as a condition of the City’s renewal of the Franchise Agreement.
On December 7, 2023, a federal jury convicted Dougherty and Burrows of conspiracy to embezzle the funds of Local 98. Dougherty was also convicted of 33 counts of embezzlement of funds from Local 98, 24 counts of wire fraud by participating in a scheme to defraud Local 98 of its money, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns.
“John Dougherty held himself out as Local 98’s biggest booster,” said U.S. Attorney Romero. “But while he was backslapping his electricians with one hand, he was ripping them off with the other. He cheated Philadelphians, too, through his corrupt quid pro quo with Bobby Henon. Our city and its workers deserve so much better than union bosses and politicians whose true priority is looking out for number one. I want to thank all of the investigators, analysts, prosecutors, and staff who partnered on this case, and, in doing so, stood up for integrity and the rule of law in Philadelphia.”
“Today is a victory for justice and the thousands of members of Local 98’s electrical union, who trusted John Dougherty to represent their interests,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Together with our partners, we will continue to relentlessly pursue those who in executing these criminal schemes put their own self-interest above those they were elected to serve.”
“The sentence today will hopefully serve to deter others who would consider betraying the public trust,” said Denise Leuenberger, Acting Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate and uncover complex financial crimes to disrupt criminal activity impacting the U.S. tax system.”
“Those entrusted with protecting benefit plan assets must be held to the highest standards of accountability to protect the employee benefits of America’s workers,” said Cristina O’Brien, Philadelphia Regional Director of the U.S. Department of Labor Employee Benefits Security Administration. “The Employee Benefits Security Administration will continue its work ensuring these hard-earned benefits are kept safe. We remain committed to working with our law enforcement partners to protect benefit plan participants.”
“Labor union officials occupy a position of trust and fidelity with respect to the faithful stewardship of the membership’s funds. John Dougherty betrayed the trust of the IBEW Local 98 membership by using union funds for his own benefit,” said U.S. Department of Labor’s Office of Labor-Management Standards Acting District Director Nicole Spallino. “The Office of Labor-Management Standards remains committed to working with our law enforcement partners to protect the financial integrity of labor unions and to ensure there are consequences for individuals who deprive union members of honest services.”
“John Dougherty, the former business manager of IBEW Local 98, conspired with other IBEW officials to embezzle funds from the union’s dues-paying members. He enriched himself at the expense of the IBEW Local 98 members whom he was elected to serve. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and Employee Benefits Security Administration to safeguard the assets of union members,” said Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor-Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Frank Costello, Chief of the Corruption & Civil Rights Unit, Bea Witzleben, Co-Chief of Trials, Richard Barrett, Counsel to the U.S. Attorney, Jason Grenell, and Anthony Carissimi.
Former Indiana State Representative Sentenced to Federal Prison for Accepting Bribes from Casino CompanyRead the Press Release
INDIANAPOLIS- Sean Eberhart, 58, of Shelbyville, has been sentenced to one year and one day in federal prison, followed by one year of supervised release, after pleading guilty to conspiracy to commit honest services fraud.
According to court documents, from 2006 to 2022, Sean Eberhart served as the elected representative of Indiana House District 57, which includes Shelby County and portions of Bartholomew and Hancock counties. During his tenure, Eberhart served as a member of the House Committee on Public Policy, which has jurisdiction over matters concerning casinos and gaming in Indiana.
From January to May of 2019, Eberhart conspired with Individual A to devise a scheme to use Eberhart’s official elected position to benefit that person’s company, Spectacle Entertainment. Spectacle Entertainment was formed by Individual A after Centaur, a company that owned and operated off-track betting facilities in Indiana, including the Shelbyville Casino in Eberhart’s District, was acquired by Caesars Entertainment in July of 2018. After that acquisition, Individual A formed Spectacle Entertainment and many of the same executives of Centaur continued in substantially similar roles as executives of Spectacle.
As part of the illegal scheme, Eberhart agreed to use his position in the Indiana House of Representatives to advocate and vote for a Gaming Bill that positively impacted Spectacle. Terms in the bill would authorize the transfer of the licenses for two casinos on Lake Michigan to Spectacle’s ownership in Gary and Terre Haute, Indiana, while reducing the usual $100 million transfer fee that Spectacle was originally set to pay, to only $20,000.
On March 27, 2019, during an Indiana House Public Policy Committee hearing, Eberhart vocally advocated to remove the $1 million transfer fee from the Gaming Bill entirely. At a hearing on April 23, 2019, hearing, Eberhart advocated in favor of a 20% tax rate that would save Spectacle tens of millions of dollars. The next day, Eberhart voted in favor of the Gaming Bill and those associated tax provisions.
In return for his advocacy and vote for the Gaming Bill, Eberhart accepted the promise of future employment at Spectacle, which included an annual salary of $350,000 and equity stake in the company.
“This criminal’s former constituents, and all Hoosiers, rightfully expect elected officials to act on the public’s behalf, and not to line their own pockets. Legislation must not be for sale to the highest bidder, especially when they have such a tremendous impact on our state and its economy,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Public office is a public trust, and those who break that trust by taking bribes will be identified and held accountable. The federal prison sentence imposed today demonstrates our office’s commitment to root out public corruption at all levels of government and uphold the law regardless offenders’ status or position.”
The FBI investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman. Judge Brookman also ordered that Eberhart pay $25,000 in fines and $60,000 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney Bradley P. Shepard, who prosecuted this case.
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Former Hamden Resident Sentenced to 20 Months in Federal Prison for Trafficking Prescription Narcotics, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DENZEL SUGGS, 30, formerly of Hamden, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 20 months of imprisonment, followed by three years of supervised release, for his role in a New Haven area drug trafficking ring, and for violating the conditions of his supervised release that followed a previous federal conviction.
According to court documents and statements made in court, in June 2022, the FBI’s Safe Streets Task Force initiated an investigation into a drug trafficking organization that was operating in the Fair Haven neighborhood of New Haven. The investigation included the use of court-authorized wiretaps, physical surveillance, and several controlled purchases of fentanyl, heroin, cocaine, and crack cocaine. The investigation also identified individuals, including Kelvin Alvarado, who were acquiring and distributing prescription narcotic pills. During the investigation, Suggs, who was on federal supervised release, sold prescription pills to Alvarado.
Suggs was arrested on October 10, 2023. On April 18, 2024, he pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, controlled substances. He has been detained since October 31, 2023.
In January 2022, Suggs was sentenced in Bridgeport federal court to approximately six months of imprisonment, time served, and three years of supervised release, for unlawful possession of a firearm by a felon.
Judge Nagala sentenced Suggs to 10 months of imprisonment for the drug offense, and a consecutive 10 months of imprisonment for violating the conditions of his supervised release.
Alvarado, also known as “Kelz” and “Kel Bucks,” of New Haven, has pleaded guilty and awaits sentencing.
This investigation, which resulted in federal charges against 12 individuals, has been conducted by FBI’s Safe Streets Task Force, which includes members from the FBI, the Connecticut State Police, the Connecticut Department of Correction, and the New Haven, Milford, East Haven, West Haven, and Wallingford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brendan J. Keefe and Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Five Sentenced in 17-Year-Old’s Sex Trafficking CaseRead the Press Release
Five people involved in sex trafficking a 17-year-old girl have been sentenced to a combined 63 ½ years in federal prison, announced U.S. Attorney for the Northern District of Texas.
They include:
- Jaelind Fountaine, 27, who was sentenced today to 327 months in prison for sex trafficking and attempted sex trafficking of a minor and required to register as a sex offender
- Sarah Gonzales, 26, who was previously sentenced to 87 months for interstate transportation to engage in prostitution and required to register as a sex offender
- Cameron Phifer, 25, who was sentenced to 240 months for distribution and receipt of child pornography and required to register as a sex offender
- Deryan Thomas, 33, who was sentenced to 87 months for interstate transportation to engage in prostitution and required to register as a sex offender
- Bianka Vega, 23, who was sentenced to 21 months for misprision (concealment) of a felony
“As a prosecutor and as a mother, my heart breaks for this teenager, who was passed from trafficker to trafficker like a piece of livestock, beaten and even branded by violent men looking to profit from her misery. No person, adult or child, should have to suffer like that,” said U.S. Attorney Leigha Simonton. “The U.S. Attorney’s Office and our law enforcement partners will stop at nothing to recover these victims, and we tenaciously prosecute anyone involved in trafficking them.”
According to plea papers, the 17-year-old victim went missing from her apartment complex in Lubbock on Nov. 28, 2022.
The investigation revealed that her neighbor and neighbor’s boyfriend, Bianka Vega and Deryan Thomas, took the child to Odessa to meet with known sex trafficker Cameron Phifer. The four of them then drove to Carlsbad, New Mexico, where they took sexually explicit photographs of the child and posted ads for her sexual services online.
At one point, Ms. Vega reminded Mr. Phifer that the victim was a minor, and informed him that both her mother and law enforcement were looking for her. Phifer told Ms. Vega it was “too late to stop,” and continued trafficking the child until abandoning her at a hotel in Carlsbad in early January.
On Jan. 15, Sarah Gonzales approached the victim in the hotel lobby, and later introduced her to Jaelind Fountaine, a known trafficker who went by the alias “Valentino.”
In an interview with law enforcement, the child said Mr. Fountaine arranged for meetings with clients, taught her how to engage in the sex trade, and took all the money she made – approximately $10,000. She said that she believed she would receive some of that money, but in the end, she never did.
The child told investigators that Mr. Fountaine physically assaulted her on multiple occasions, threatened to hurt her if she left him, and forced her to “brand” herself with a “V” tattoo to indicate his ownership of her. Law enforcement found photos of the tattoo on Mr. Fountaine’s phone.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency, and the Lubbock, Abilene, and Carlsbad Police Departments conducted the investigation. Assistant U.S. Attorneys Callie Woolam, Jeff Haag, and Matt McLeod prosecuted the case.
Farrell Man Pleads Guilty to Trafficking Cocaine Near Public HousingRead the Press Release
PITTSBURGH, Pa. - A resident of Farrell, Pennsylvania, pleaded guilty in federal court to a charge of cocaine trafficking within 1,000 feet of a public housing location, United States Attorney Eric G. Olshan announced today.
Cleo Johnson, 33, pleaded guilty before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that Johnson possessed with intent to distribute cocaine base within 1,000 feet of public housing on October 29, 2021.
Judge Bissoon scheduled sentencing for November 5, 2024. The law provides for a maximum total sentence of not less than one year and up to 40 years in prison, a fine of up to $2 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant, among other factors.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Mercer County Drug Task Force, Pennsylvania Office of Attorney General, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Johnson.
Essex County Woman Sentenced to 10 Years in Prison for Possession with Intent to Distribute Cocaine and MethamphetamineRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, woman was sentenced today to 120 months in prison for possessing with intent to distribute cocaine and methamphetamine, U.S. Attorney Philip R. Selling announced.
Mahogany Hawkins, 32, of Newark, was previously convicted of one count of possession with intent to distribute cocaine and methamphetamine following a two-day trial before U.S. Circuit Judge Stephanos Bibas, who imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In March 2021, two FedEx parcels addressed to “John Brown” in Newark, were lawfully intercepted by law enforcement and found to contain cocaine. On March 15, 2021, an undercover officer dressed as a FedEx driver delivered the package to the addressee, and a woman – later identified as Mahogany J. Hawkins – answered the door and accepted the packages. Officers again knocked on Hawkins’s door, this time identifying themselves as law enforcement. Hawkins said she was “getting dressed” but didn’t open the door. The officers forced entry and found Hawkins in the bedroom.
After obtaining a search warrant, the officers searched Hawkins’ apartment and entered a backroom – locked by a keypad – that was a workstation for packaging narcotics. The two FedEx packages from the controlled delivery were found inside a garbage can in the backroom, and the room also contained methamphetamine pills, two plastic bags containing additional cocaine, numerous empty vials used for packaging narcotics, and a heat sealer. Laboratory analysis confirmed substances were cocaine and methamphetamine. Officers also found a loaded handgun and an extended magazine.
In addition to the prison term, Judge Bibas sentenced Hawkins to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; Customs and Border Protection, under the direction of Port Director TenaVel Thomas, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to today’s sentencing. He also thanked the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, and the FBI - Newark, under the direction of Special Agent in Charge James E. Dennehy in Newark.
The government is represented by Assistant U.S. Attorneys Rebecca A. Sussman and Jake A. Nasar of the U.S. Attorney’s Office’s Criminal Division in Newark.
East Helena man admits firing gun during Townsend gas station robberyRead the Press Release
GREAT FALLS — An East Helena man suspected of firing a gun during a robbery of a gas station in Townsend admitted to a firearms charge on July 10, U.S. Attorney Jesse Laslovich said today.
The defendant, Samuel James Collins, 34, pleaded guilty to possessing and discharging a firearm during a crime of violence. Collins faces a mandatory minimum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 24. Collins was detained pending further proceedings.
In court documents, the government alleged that on Oct. 16, 2023, Broadwater County Sheriff’s Office deputies responded to a reported armed robbery at the Town Pump gas station in Townsend. Two employees were present during the robbery and told law enforcement that a man entered wearing a hooded blanket coat, was not wearing pants or shoes, and fired a round from a pistol. The suspect demanded money, and the employees complied. The suspect left in a Ford F-150 pickup with an estimated $330 in cash. Video surveillance from the business captured the incident:
Approximately 20 minutes later, Meagher County Sheriff’s Office deputies conducted a traffic stop of a truck matching the description of the truck used in the robbery. The driver was identified as Collins. During Collins’ arrest, deputies saw a pistol, cash and a shell casing inside the truck. In a subsequent search of the truck, law enforcement seized a loaded 9mm pistol, $329 in U.S. currency, a purple hooded sweatshirt, a white hat and other items. Further investigation determined that a bullet and shell casing found at the Town Pump were fired from a 9mm pistol found in the truck Collins was driving.
The U.S. Attorney’s Office is prosecuting the case. The Broadwater County Sheriff’s Office, Meagher County Sheriff’s Office, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results
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Crabtree Mall Carjacker Who Crashed City Truck Sentenced to 20 YearsRead the Press Release
RALEIGH, N.C. – A Garner man was sentenced today to 240 months in prison for robbery of a Raleigh Walmart store and the carjacking of a woman at Crabtree Valley Mall. On April 8, 2024, Thomas Kyle Cauther pleaded guilty to both charges.
“This defendant was a one-man crime spree threatening a store clerk, crashing a city truck, and dragging a woman across a shopping center parking lot in a carjacking,” said U.S. Attorney Michael Easley. “Cauther’s spree caused unspeakable trauma to victims and wrecked a city street sweeper. Today it is Cauther whose been swept off the streets – for the next 20 years. Hopefully today’s sentence brings some peace or closure to the victims and community We are partnering with the City of Raleigh to ensure brazen threats to public safety, like Cauther are put on a fast track to federal prison.
According to court documents and other information presented in court, on May 11, 2023, Cauther, age 31, used a tool to smash a glass display case in the electronics section of the Walmart store on Fayetteville Road in Raleigh. Cauther retrieved two iPhones from the smashed display. When confronted by a Walmart employee, Cauther displayed a knife and threatened to harm her. Cauther then rode a bicycle out of the Walmart with the stolen iPhones in hand.
After leaving the Walmart, Cauther traveled to the area of Ramsgate Street and Lineberry Drive in Raleigh, where he stole a City of Raleigh truck with a trailer and street sweeper attached. Cauther eventually wrecked the truck and trailer in the parking deck area of Crabtree Valley Mall.
Once the City of Raleigh truck was disabled, Cauther approached a woman who was sitting in a vehicle in the Crabtree Valley Mall parking lot. He opened her car door and removed her from the vehicle. Cauther then got into the vehicle and began to drive away while the carjacking victim was still entangled in the vehicle, causing her to be drug by the vehicle as Cauther drove away. Raleigh Police engaged in a pursuit of the carjacked vehicle. Eventually, the vehicle was remotely disabled by OnStar system operators and Cauther was apprehended. The carjacking victim was hospitalized after sustaining multiple broken bones.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Sarah E. Nokes prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-23.
Convicted Felon Sentenced to over Four Years in Prison for Illegal Ammunition PossessionRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for unlawful possession of ammunition.
Julio A. Rivera, 35, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 57 months in prison followed by three years of supervised release. In March 2024, Rivera pleaded guilty to one count of felon in possession of ammunition.
From approximately Feb. 7, 2020 to July 15, 2022, Rivera manufactured and distributed approximately 90 privately manufactured firearms, commonly known as “PMFs” or “ghost guns.” In September 2022, during a search of his residence, Rivera was found to be carrying a loaded ghost gun containing 10 rounds of ammunition as well as a magazine containing 18 rounds of ammunition. Also recovered from Rivera’s residence was another ghost gun, 90 rounds of ammunition, firearm parts, accessories and tools to manufacture ghost guns, as well as receipts for various firearms parts and accessories.
Rivera is prohibited from possessing firearms and ammunition due to a September 2017 conviction out of Westfield District Court of assault and battery and an April 2018 conviction out of Springfield District Court of carrying a dangerous weapon (blunt object).
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Feld Division made the announcement today. Valuable assistance provided by the Springfield Police Department and the Massachusetts State Police. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office prosecuted the case.
Convicted Felon Sentenced to More Than 5 Years for Possession of FirearmsRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Eddy Fonseca (25, Tampa) to 5 years and 11 months in federal prison for possessing firearms and ammunition as a convicted felon. Fonseca entered a guilty plea on January 30, 2024.
According to court documents, Fonseca was convicted of aggravated assault with a deadly weapon in 2019 and is therefore prohibited from possessing firearms or ammunition. In May 2023, law enforcement officers observed Fonseca and his girlfriend travel to a firearms store. Fonseca’s girlfriend picked up a firearm from the store that she had filled out the paperwork for, but that Fonseca had paid for. Law enforcement followed Fonseca back to his home in Tampa where they observed Fonseca carrying the box with the firearm into his residence. During the subsequent execution of a search warrant at Fonseca’s home, law enforcement located six firearms in various locations throughout the home. Fonseca claimed responsibility for these six firearms in his plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney James Muench.
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.
Convicted Felon Found Guilty of Possessing FirearmRead the Press Release
DENVER – The U.S. Attorney for the District of Colorado announced that a jury found Colorado resident Alvin Madison, 46, of Denver, guilty on one count of being a felon in possession of a firearm.
According to the facts established at trial, on April 19, 2023, Colorado Parole officers located a fugitive, Dion Avila, at an apartment complex in Denver. They saw Dion Avila, Alvin Madison, and another man get into a car and drive away. Shortly thereafter, Denver Police officers stopped the car and had all three the men get out of the vehicle. When Alvin Madison exited the car, the officers patted him down for weapons and found that Madison had a loaded firearm in his right front jacket pocket and 24 rounds of ammunition loaded into a high-capacity magazine in the other jacket pocket. There was also a firearm on the rear passenger floorboard of the vehicle that Dion Avila later pled guilty to possessing. Madison, Dion Avila, and the driver of the car are previously convicted felons who have served prior prison sentences.
“Keeping repeat violent offenders off our streets is a critical component of keeping our communities safe,” said Acting U.S. Attorney for the District of Colorado Matt Kirsch. “It is illegal for convicted felons to possess guns and ammunition, and we will vigorously prosecute repeat offenders who continue to arm themselves.”
"This case exemplifies the incredible work being done by the RAVEN task force in our efforts to combat violent crime every day," said ATF Special Agent in Charge Brent Beavers. "Their investigation from arrest to federal prosecution has removed an illegally armed and violent criminal, previously convicted of attempted murder, from the streets in our communities."
United States District Court Chief Judge Philip Brimmer presided over the trial. The Denver Police Department, Colorado Department of Corrections Parole Fugitive Unit, and ATF conducted the investigation. Assistant United States Attorney Celeste Rangel and Denver Special Assistant United States Attorney Dorothy Wilson handled the prosecution.
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.
Case Number: 23-CR-00240
Citizen of the Dominican Republic Sentenced to 57 Months for Illegally Reentering the United States after an Aggravated FelonyRead the Press Release
SYRACUSE, NEW YORK – Altagracios De La Cruz-Calderon, 60, who was living in Oneida County, was sentenced to 57 months imprisonment today for illegally reentering the United States after previously being convicted of an aggravated felony. United States Attorney Carla B. Freedman and Thomas P. Brophy, Field Office Director, U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations, (ICE-ERO) Buffalo, NY made the announcement.
De La Cruz-Calderon had previously been deported or removed from the United States to the Dominican Republic five times. As part of his previous guilty plea, De La Cruz-Calderon admitted that he had been convicted of federal drug and gun charges in the 1990s and spent several years in federal prison before one of his deportations to the Dominican Republic. De La Cruz-Calderon was most recently found in the United States in New Hartford, New York. De La Cruz-Calderon will be subject to deportation again at the conclusion of his prison sentence.
The U.S. Department of Homeland Security, ICE-ERO investigated the case with the help of the United States Marshall Service and the New Hartford Police Department. Special Assistant U.S. Attorney Paul Tuck prosecuted the case.
Canadian National Sentenced to 50 Months’ Imprisonment for Conspiracy to Commit Wire Fraud Against Elderly VictimsRead the Press Release
SPRINGFIELD, Ill. – A Canadian national, Sebastian Chelemen, 38, was sentenced on July 11, 2024, to 50 months’ imprisonment to be followed by two years of supervised release, for conspiracy to commit wire fraud. He was also ordered to pay $460,350 in restitution to his victims.
At the sentencing hearing, the government established that, between April 2023 and June 2023, Chelemen participated in a fraud scheme with co-conspirators operating in Canada who called elderly individuals throughout the United States portraying themselves as young loved ones who had been arrested and needed money for bond or a lawyer. Once a victim agreed to provide the funds for their loved one’s release from jail, Chelemen, acting as a bail bondsman/courier, arrived at their address for the purpose of picking up the funds. He then provided the victims with a receipt that included a “case number,” the amount of money provided, and the false name he used during the interaction. Ultimately, Chelemen personally obtained over $380,000 from the victims in multiple states directly and co-conspirators received another $78,000 from victims who mailed funds as part of the scheme. Members of the conspiracy also attempted to obtain at least an additional $290,000 from victims. When Chelemen was arrested in Sangamon County, he was found with over $138,000 in cash which he acknowledged he had recently received from numerous victims throughout the Central District of Illinois.
During the sentencing hearing, U.S. District Court Judge Sue E. Myerscough found Chelemen was responsible for over $750,000 in actual and attempted loss, that he had victimized vulnerable individuals as part of the scheme, and that the scheme was both sophisticated and most of it took place outside of the United States.
“This case is an excellent example of what can be accomplished when we, as a law enforcement community, work towards a common goal.” said Assistant U.S. Attorney Tanner K. Jacobs. “Victims of this terrible scheme were spread out across the country, and federal, state, and local agencies banded together to identify them and ensure that the victims’ voices were heard.”
“Elder fraud is a massive and growing problem that affects one of our most vulnerable age groups. It accounts for billions of dollars in losses and in many instances leaves victims financially and emotionally devastated.” said Acting Special Agent in Charge Jermaine Deans. “This sentence demonstrates the commitment of the FBI and our law enforcement partners to relentlessly pursue and hold accountable those who seek to harm the elderly.”
Chelemen pleaded guilty to one count of conspiracy to commit wire fraud on February 6, 2024. He was ordered detained on June 26, 2023, following his arrest by the Sangamon County Sheriff’s Office on June 13, 2023. He has remained in the custody of the U.S. Marshals Service since that time. The statutory penalties for conspiracy to commit wire fraud are up to twenty years in prison, up to a $250,000 fine, and up to three years of supervised release.
The Federal Bureau of Investigation, Springfield Field Office along with the Sangamon County Sheriff’s Office, and Springfield Police Department investigated the matter with assistance from various law enforcement agencies throughout the country, including Virginia, Ohio, New York, and Wisconsin. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
If a senior, or friend or relative of a senior, believes someone is at risk of imminent danger or financial exploitation, they should call 9-1-1. Reports of financial exploitation and abuse should be reported to the non-emergency number at the Springfield Police Department (217-788-8311.) The Adult Protective Services Hotline number to report elder fraud is 866 800-1409. Elder fraud may also be reported to the Illinois Attorney General’s Office at 800-243-5377. Internet-based fraud should be reported to the FBI’s Internet Crime Complaint Center IC3, www.ic3.gov. Additional useful information about elder fraud and scams can be found at www.uspis.gov and www.ftc.gov.
Browning man who shot, wounded man in the head on Blackfeet Indian Reservation sentenced to more than five years in prisonRead the Press Release
GREAT FALLS — A Browning man who admitted to shooting and wounding a man in the head on the Blackfeet Indian Reservation was sentenced today to five years and six months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Joseph Paul Vandenberg, 21, pleaded guilty in March to assault with a dangerous weapon and to using a firearm during a crime of violence as charged in an indictment.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in the early morning hours of March 11, 2022 in Browning, on the Blackfeet Indian Reservation, Vandenberg was a backseat passenger in a vehicle that was cruising around when the driver pulled up and blocked the driveway of a home. The victim, identified as John Doe, and a friend, got into an SUV that was backed into the driveway. Doe tried to maneuver around the vehicle. Vandenberg opened the back door of the vehicle, pulled out a firearm and fired a round as Doe’s vehicle was driving away. The bullet grazed the side of Doe’s head and lodged in the dashboard at the base of the windshield. Doe was treated for a large laceration on his head. Vandenberg admitted to being the shooter and told law enforcement that the driver told him to shoot, and he did because he was scared.
The U.S. Attorney’s Office prosecuted the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.
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Brooklyn Man Sentenced to 57 Months in Prison for Fentanyl DistributionRead the Press Release
NEWARK, NJ. –A Brooklyn man was sentenced today to 57 months in prison for his role in a drug trafficking conspiracy to distribute 4 kilograms of fentanyl in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Juan De La Cruz Infante Torres, 52, of Brooklyn, New York, pleaded guilty on June 14, 2023, before U.S. District Judge Michael A. Shipp to a two-count information charging him with conspiracy to distribute and possess with intent to distribute fentanyl, and with possessing with intent to distribute fentanyl. Judge Shipp imposed the sentence today in Trenton federal court. Infante’s conspirator, Billy Castro, pleaded guilty before Judge Shipp and is awaiting sentencing.
According to documents filed in this case and statements made in court:
In May and June 2021, Infante Torres conspired with Castro and others to distribute substantial quantities of fentanyl. On June 15, 2021, Infante and Castro took approximately 2 kilograms of fentanyl from Castro’s Queens, New York apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately two additional kilograms of fentanyl.
In addition to the prison term, Judge Shipp sentenced Infante Torres to two years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the sentencing. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Mark J. Pesce and Aja Espinosa of the Economic Crimes Unit in Newark.
Bladensburg Man Sentenced to 4 Years in Federal Prison for Conspiring to Illegally Ship Stolen Cars to West AfricaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Karim Abdul Turay, age 31, a resident of Prince George’s County, Maryland, to 51 months in federal prison, followed by 3 years of supervised release, for conspiracy to commit transportation of stolen motor vehicles and receipt and possession of stolen motor vehicles.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Port of Baltimore Director Adam Rottman of U.S. Customs and Border Protection; and Chief of the Maryland Transportation Authority Police Colonel Joseph F. Scott.
According to his plea agreement, between approximately September 2019 and June 2022, Turay worked with others to fraudulently rent vehicles from Hertz, Avis, and other car rental companies at locations in Maryland, Virginia, Washington, D.C., and elsewhere. Turay and others were able to rent these cars using false identifications and credit cards.
The vehicles would then be transported to Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore. Then, using false declaration forms and other paperwork to conceal the containers’ contents, the containers with rental vehicles inside would be exported to West Africa via cargo ship where the vehicles could be sold. Law enforcement is aware of more than 40 vehicles that Turay and his co-conspirators either exported or attempted to export to West Africa.
Co-conspirator Jonathan Davis, age 39, of Laurel, Maryland, previously pled guilty to receipt and possession of stolen vehicles and was sentenced to 13 months in federal prison. Another Co-conspirator, Rodley Balthazar, age 30, also of Laurel, Maryland, pled guilty to the same charges as Turay and was sentenced to 37 months in federal prison.
U.S. Attorney Erek L. Barron praised the HSI Border Enforcement Security Task Force and the Maryland Transportation Authority Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Darren S. Gardner and Timothy F. Hagan who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Austin Man Sentenced to 14 Years in Federal Prison for Fentanyl DistributionRead the Press Release
AUSTIN, Texas – An Austin man was sentenced in federal court to 168 months in prison for conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl.
According to court documents, Trenton Harris Tindall, 24, was identified as having coordinated the purchase of counterfeit oxycodone with a purchaser in Austin who was found deceased the day after their correspondence. In their text messaging, Tindall told the purchaser that he possessed oxycodone for distribution and arranged the transaction. The Travis County Medical Examiner determined the victim’s cause of death was accidental and due to the toxic effects of fentanyl.
Through three separate operations during an investigation, Tindall distributed a total of approximately 450 fentanyl-laced oxycodone tablets—blue in color with “M30” printed on them—to law enforcement. Tindall pleaded guilty Dec. 15, 2023 to one count of conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI and Austin Police Department investigated the case.
Assistant U.S. Attorney Matthew Devlin prosecuted the case.
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Armed Stockton Drug Trafficker Sentenced to 14 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Jesus Iribe, 28, of Stockton, was sentenced today by U.S. District Judge Daniel J. Calabretta to 14 years in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 17, 2022, Iribe was stopped by law enforcement officers. Iribe had a loaded Glock pistol in his pocket and a kilogram of cocaine in his pickup truck. The officers later conducted a search at Iribe’s house and found 10 pounds of methamphetamine, 5 pounds of cocaine, 3 pounds of marijuana, counterfeit M-30 oxycodone pills, and five more firearms.
This case was the product of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration, with assistance from the San Joaquin County District Attorney’s Office, the Stockton Police Department, the San Joaquin County Sheriff’s Office, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Justin Lee prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
Active-duty Army and Former Marine Reserve Indicted and Arrested for Drug ConspiracyRead the Press Release
TULSA, Okla. – A California man who is on active duty with the Army and a former Marine Reserve was arrested at Fort Carson in Colorado. David Julian Mendoza Gonzalez, 26, had an initial appearance before a federal judge in the District of Colorado. He is charged in the Northern District of Oklahoma for Drug Conspiracy and Maintaining a Drug-Involved Premises.
“The Northern District of Oklahoma is committed to disrupting and reducing the flow of deadly narcotics into our communities,” said U.S. Attorney Clint Johnson.
“The arrest of Mr. Mendoza Gonzalez demonstrates the continued resolve of DEA Oklahoma to investigate organizations to the fullest extent possible,” said DEA Acting Special Agent in Charge Ivan Carrera. “Local street dealers, dispatchers, transporters, bulk suppliers, and anyone in between should know DEA Oklahoma is committed to holding everyone in this organization, and others like it, accountable for selling drugs to our communities.”
According to the Indictment, from August 2021 through June 2024, Gonzalez knowingly and intentionally conspired
with others to distribute heroin, fentanyl, and methamphetamine. He was additionally charged with maintaining residences in Tulsa for drug distribution.If convicted, Gonzalez faces up to life imprisonment, up to $10,000,000 in fines, and up to five years of supervised release.
The Drug Enforcement Administration, the Tulsa Police Department, the Defense Criminal Investigative Service, and Homeland Security Investigations are the investigative agencies. Assistant U.S. Attorney Mandy M. Mackenzie 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.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
12 Years After Being Indicted on Sex Travel Charges, Philadelphia Man Apprehended in Egypt and Returned to the United StatesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Idris Abdullah Malik, 49, was apprehended in Egypt and returned to the United States to face four counts of traveling for the purpose of engaging in illicit sexual conduct and one count of engaging in illicit sexual conduct in a foreign place.
The indictment, filed on March 1, 2012, alleges that between 2000 and 2005, Malik traveled to Egypt on four occasions for the purposes of engaging in an illicit sexual act with a minor less than 12 years old and between 2005 and 2006, engaged in a sexual act with a minor less than 16 years old in Egypt.
After being charged, Malik’s whereabouts were unknown and a bench warrant was issued. He was recently located in Egypt and returned to the United States with the assistance of the Justice Department’s Office of International Affairs, FBI Legat’s Office in Cairo, U.S. Department of State’s Diplomatic Security Service, the Consular Section at the U.S. Embassy in Cairo, U.S. Customs and Border Protection, and the FBI. The support and assistance of Egyptian security authorities was consequential to this effort.
On June 13, 2024, Malik was taken into custody by the FBI and made his initial appearance in the Eastern District of Virginia. He has now been returned to the Eastern District of Pennsylvania for prosecution and appeared in federal magistrate court in Philadelphia this afternoon, where he was arraigned and ordered detained until trial by U.S. Magistrate Judge Jose R. Arteaga.
If convicted of the charged offenses, the defendant faces a maximum possible sentence of 150 years’ imprisonment.
The case was jointly investigated by the Federal Bureau of Investigation and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Josh A. Davison.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wednesday 10 July 2024
Windsor Man on Federal Supervised Release Charged with Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Connecticut State Police Colonel Daniel Loughman today announced that a federal grand jury in New Haven has returned an indictment charging ANDRE O. JOHNSON, 28, of Windsor, with firearm and drug offenses.
The indictment was returned on June 25, 2024, and Johnson appeared yesterday in New Haven federal court and pleaded not guilty to the charges. Johnson has been detained since June 11, 2023, when he was arrested by the Connecticut State Police in Wethersfield on related state charges.
The indictment alleges that, on June 11, 2023, Johnson possessed a Smith & Wesson 9mm pistol, ammunition, and distribution quantities of cocaine and fentanyl. In April 2022, Johnson was convicted in federal court of drug and firearm trafficking offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Johnson with possession with intent to distribute controlled substances, an offense that carries a maximum term of imprisonment of 20 years, and unlawful possession of a firearm and ammunition by a felon, an offense that carries a maximum term of imprisonment of 15 years.
Johnson was on federal supervised release at the time of the offenses charged in the indictment, and he faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Connecticut State Police, the Wethersfield Police Department, and the West Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert S. Dearington.
This prosecution 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. In May 2021, the Justice 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 www.justice.gov/psn.
Washington, D.C. Man Facing Federal Charges for Allegedly Obtaining Covid-19 Cares Act Loans by Reporting Inflated Payroll Numbers and Stealing A Maryland Man’s IdentityRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Jemel Lyles, age 42, of Washington, D.C., with three counts of wire fraud, two counts of aggravated identity theft, and one count of money laundering relating to the submission of alleged fraudulent COVID-19 CARES Act loan applications. The indictment was returned on June 27, 2024, and unsealed today upon the arrest of the defendant.
The defendant had an initial appearance today, in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). According to the indictment, the defendant fraudulently obtained three PPP loans and spent the funds for purposes not permitted under the PPP loan program. The first PPP loan was for a construction and landscaping business that in support of that application, Lyles submitted a false payroll document, which misrepresented the size of the business’ payroll. Lyles also disguised his ownership of the business. As a result of this application, PPP funds were deposited into a bank account under Lyles’s control and later used for personal and unauthorized expenses. The indictment also alleges that Lyles obtained two PPP loans impermissibly using the identity of a Maryland resident. In support of these applications, Lyles submitted false tax documents and listed the Maryland resident’s Social Security Number as the relevant taxpayer identification number. As a result of these applications, Lyles received PPP funds, which he proceeded to use for unauthorized expenses.
If convicted, Lyles faces a maximum sentence of 20 years in federal prison for each wire fraud count; a minimum mandatory sentence of two years in prison for each aggravated identity theft count, which will run consecutive to the wire fraud sentence; and a maximum of 10 years in federal prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joseph L. Wenner, who is prosecuting the federal case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
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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Wanblee Man Sentenced to Fifteen Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wanblee, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on June 28, 2024.
Benjamin Francis Sitting Up, Jr., 38, was sentenced to 15 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Sitting Up was indicted for Sexual Abuse and Abusive Sexual Contact by a federal grand jury. He pleaded guilty on April 12, 2024, to Sexual Abuse of a Minor.
The conviction stemmed from Sitting Up sexually abusing a thirteen-year-old female in November of 2023. In 2019, Sitting Up had been convicted of transferring obscene material to another female. A federal judge had sentenced him to three years in prison with supervision to follow. After being released from prison, Sitting Up digitally raped another minor in his Wanblee, South Dakota, home, leading to the instant charges. In sentencing Sitting Up to fifteen years, the district court judge explained the statutory maximum sentence was appropriate given the defendant’s history of victimizing young girls.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Sitting Up was immediately remanded to the custody of the U.S. Marshals Service.
Wabash County Man Convicted of Firearm OffenseRead the Press Release
SOUTH BEND – Roy Skeens, 40 years old, of Wabash County, Indiana, was found guilty of being a convicted felon in possession of a firearm following a two-day jury trial presided over by United States District Court Judge Damon R. Leichty, announced United States Attorney Clifford D. Johnson.
Skeens is scheduled for sentencing on October 17, 2024. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Wabash County Sheriff’s Department, the Kosciusko County SWAT Team, the South Bend Police Department, and the Indiana Department of Correction. The case was prosecuted by Assistant United States Attorneys Katelan McKenzie Doyle and Joseph P. Falvey.
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.
Uzbek National Who Made False Statements is SentencedRead the Press Release
SIDIKJON MAMADJONOV, 37, a citizen of Uzbekistan, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to one month of imprisonment, time already served, and one year of supervised release, for making false statements to federal law enforcement and in immigration proceedings.
U.S. Attorney Vanessa Roberts Avery, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Special Agent in Charge Robert Fuller of the Federal Bureau of Investigation’s New Haven Division, and Special Agent in Charge Michael J. Krol of Homeland Security Investigations in New England, made the announcement.
According to the evidence presented during his trial, Mamadjonov immigrated to the U.S. in February 2009, lived in New Britain, Connecticut, and became a lawful permanent resident in September 2010. On May 27, 2013, Mamadjonov departed the U.S. on a flight to Istanbul, Turkey. During or before this trip, he learned that his brother, Saidjon Mamadjonov, had been killed while fighting in the civil war in Syria. Sidikjon Mamadjonov returned to the U.S. on June 11, 2013. In early July 2013, he received a DHL package that contained an iPhone 4. On the phone were several videos and photographs depicting Saidjon in Syria, including videos of Saidjon cleaning weapons in military dress while armed with a weapon, and a photograph of Saidjon after he was killed.
During three interviews with FBI special agents in 2014, Mamadjonov responded to questions about the trip he took to Turkey in 2013, and questions about his brother. Mamadjonov made multiple false statements, including that his brother was alive and living in Turkey or Dubai, that he met with his brother while he was in Turkey in 2013, and that his brother sent him a package after he returned from his trip.
In August 2016, Mamadjonov stated to FBI special agents that he had a received a package from Sidikjon, did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria. At that time, Sidikjon knew that Saidjon was an Uzbek who had traveled from the U.S. to Syria and had died while fighting in the civil war, and that he died prior to the date the package was sent.
On October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400 that he had submitted in September 2014, Mamadjonov again provided false statements about his brother and whether he had previously lied to the FBI.
Mamadjonov was arrested on December 22, 2017.
On March 7, 2023, a jury found Mamadjonov guilty of three counts of making a false statement to law enforcement, and one count of making a false swearing in an immigration matter.
This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Edward Chang and Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
U.S. Attorney’s Office Emphasizes the Importance of Safe Storage of FirearmsRead the Press Release
Louisville, KY - Safe storage of firearms is an important tool for reducing the risk of unintentional shootings, helping to prevent firearm-related suicides, and for making our communities safer. In 2022, the U.S. Centers for Disease Control and Prevention (CDC) reported firearm injuries to be among the five leading causes of death for people ages 1-44 in the United States and the leading cause of death among children and teens ages 1-19. Kentucky’s Child Fatality and Near Fatality External Review Panel’s 2023 Annual Report identified unsafe access to deadly means as a risk factor or characteristic in 83% of firearm-related cases and improper storage was identified in 90% of those cases. Proper storage of firearms can significantly reduce these risks, particularly among children and teenagers. Safe storage also protects adults by decreasing the risk of gun thefts, diversion of firearms to illegal markets, and criminal discharges of firearms. The change in seasons is a great time to review storage practices to ensure all firearms are stored safely.
“My commitment to reducing gun violence in our communities includes raising awareness of the safe storage of firearms,” said Western District of Kentucky U.S. Attorney Michael A. Bennett. “Secure storage saves lives by keeping guns out of the hands of children, at-risk persons who may do harm to themselves or others, and individuals who are prohibited by law from possessing firearms. I encourage the public to educate themselves on safe storage and all gun owners to take steps to securely store their firearms in their homes, businesses, and vehicles.”
The U.S. Department of Justice released Safe Storage of Firearms Unload it, Lock it, Store it, which discusses secure gun storage, different types of storage devices, and best practices for safely storing firearms. One of the most comprehensive guides on safe storage ever released by the federal government, this publication details safety and security suggestions for firearms. “These practical recommendations promote responsible gun ownership and provide effective safety measures,” said U.S. Attorney Bennett.
Nearly all firearm accidents in the home can be prevented by making sure that guns are kept unloaded. Keep ammunition locked in a secure location away from the firearm. When removing firearms from storage, always re-check firearms carefully and completely to be sure that they are still unloaded. Always treat every gun as if it were loaded.
If you must have quick access to a loaded firearm, make sure to take special safety precautions and keep them in a secure location readily accessible to responsible adults only. Gun locks or devices that prevent the firearm from being operated without first deactivating the device are effective and should be used as an additional safety precaution to make firearms inoperative to others. Keys and combinations for the safety device should be stored separately in a location inaccessible to children, at-risk persons, and prohibited persons. While gun locks increase safety, these additional precautionary tools should not be used as substitute for secure storage.
Every year, thousands of firearms are lost or stolen from homes, businesses, and vehicles. Data compiled for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Crime Gun Intelligence and Analysis shows that from 2017 to 2021, more than a million firearms were stolen from private citizens, making up 96% of all firearms reported stolen during that time period. Thefts from vehicles are the largest source of stolen guns, particularly those left in unlocked vehicles or in plain view. Across Kentucky, approximately 3,000 guns are stolen from vehicles yearly, which averages out to over eight thefts a day. To prevent these thefts, firearms should be stored in a locked cabinet, gun safe or gun vault, or secure storage compartment or case designed to be unlocked only by means of a key, a combination, or other similar means. By securely storing firearms, responsible gun owners can deter these thefts and stop firearms from circulating illegally and potentially being used in crimes.
Safe storage in the home is critical for preventing the risks of unintentional death, injury, or damage. If you live with a person who is at risk or legally prohibited from possessing a firearm, consider upgrading your storage levels to be absolutely certain that no firearm can be accessed. Always make sure any guns in the home are stored so that they are not accessible to children. Talk to children about the hazards of improper firearm use and teach them safe practices if they do come into contact with a gun. Talk to friends, relatives, or adults in homes where children may visit to ensure safe firearm storage practices are being followed in their homes. “Hiding a firearm, or telling a child not to play with a gun, is not enough to keep a curious child safe from unintentional injuries,” said U.S. Attorney Bennett. “We must all be committed to taking affirmative steps to secure firearms in order to protect our loved ones and keep our homes and communities safe.”
The safety and security practices outlined by the Department of Justice are recommendations only. Responsible gun owners should also be aware of all federal, state, and local laws regarding the purchase, possession, carrying, use, storage, and disposition or sale of firearms.
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U.S. Attorney's Office Announces Working Group Meeting to Advance Environmental Justice InitiativeRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office convened a meeting today of the Western District’s Environmental Justice & Environmental Crimes Working Group, reaffirming its commitment to advancing environmental justice.
The federal, state, and local law enforcement agencies represented in the working group meeting were the U.S. Environmental Protection Agency’s Office of the Inspector General and Criminal Investigation Division, the U.S. Fish and Wildlife Service, the U.S. Department of Defense Criminal Investigative Service, the U.S. Department of Transportation, the North Carolina Wildlife Resources Commission, the North Carolina Department of Transportation, the North Carolina Department of Insurance, and the Charlotte-Mecklenburg Police Department.
June marked the two-year anniversary of the U.S. Attorney’s Office’s Environmental Justice Initiative (EJI) and the appointment of an Environmental Justice Coordinator, following an announcement by Attorney General Merrick Garland on key efforts by the Department of Justice to advance environmental justice.
In her welcome remarks to the working group, U.S. Attorney Dena J. King thanked the partner agencies for their participation and expressed the Office’s commitment to environmental justice in communities across the Western District. U.S. Attorney King also highlighted prosecutors’ efforts to hold accountable violators of federal environmental statutes and noted that federal laws are in place to protect natural resources and prevent harmful pollutants from posing health risks for communities.
“The collaboration between my Office and our partner agencies is crucial in protecting communities from environmental harm,” said U.S. Attorney King. “Our dedication to environmental justice is unwavering, and together, we can ensure that our efforts are effective and impactful.”
Today’s working group meeting focused on federal prosecutors’ criminal and civil enforcement efforts, collaboration with partner agencies to develop goals and strategies including identifying areas qualifying under the EJI, as well as next steps and action items in support of potential leads and investigations. In addition, participants discussed efforts to increase education and public awareness and develop action items related to environmental statute violations.
For more information about the U.S. Attorney’s Office’s Environmental Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/civil-rights-program#EJC
Two New Jersey Men Sentenced for Scheme to Defraud Investors in Hemp CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VITALY FARGESEN and IGOR PALATNIK were sentenced to 4 years and 78 months in prison, respectively, by U.S. District Judge Loretta A. Preska for participating in a fraudulent scheme to defraud investors in CanaFarma Corp. and, later, CanaFarma Hemp Products Corp. (together, “CanaFarma”), by soliciting funds based upon false and misleading representations, failing to invest investor’s funds as promised, and secretly misappropriating millions of dollars of CanaFarma funds. PALATNIK was sentenced on January 11, 2024, and FARGESEN was sentenced today.
U.S. Attorney Damian Williams said: “Vitaly Fargesen and Igor Palatnik orchestrated a sophisticated scheme to obtain millions of dollars from investors by falsely pledging to spend their funds building a legitimate business. Instead, Fargesen and Palatnik deceived investors about the nature of their business and kept millions of dollars of investor funds for their own personal use. After they were charged, Fargesen and Palatnik attempted to escape accountability by obstructing this Office’s investigation of their crimes. Today’s sentence should serve as a reminder that if you steal from investors and cover up your crimes, you will pay a steep price.”
According to the allegations contained in the Indictment and statements made in public filings and public court proceedings:
From in or about March 2019 to in or about March 2020, CanaFarma was a privately held Delaware corporation with offices in New York, New York. Beginning on or about March 19, 2020, CanaFarma was listed on the Canadian Stock Exchange, and beginning on or about March 23, 2020, CanaFarma was listed on the Frankfurt Stock Exchange. CanaFarma marketed itself to the investors as a “fully integrated cannabis company addressing the entire cannabis spectrum from seed to delivery of consumer products.” To the public, FARGESEN was held out as Senior Vice President of Strategic Planning and PALATNIK as Senior Vice President of Product Acquisition at CanaFarma. In truth, the two men exercised full control of CanaFarma but hid their control from the investing public by, among other things, convincing an experienced businessman to falsely present himself to the market as the CEO of the company.
Using their control of CanaFarma, FARGESEN and PALATNIK devised and carried out a scheme to defraud CanaFarma’s investors by soliciting approximately $14 million in funds, including investments in private shares of CanaFarma, with false and misleading representations concerning the company’s management, products, and financials; failing to invest investor’s funds as promised; and secretly misappropriating at least $4 million of CanaFarma funds for their own benefit. FARGESEN and PALATNIK effectuated the scheme by, among other things, controlling CanaFarma through a nominal CEO who reported to FARGESEN and PALATNIK, lying to investors regarding CanaFarma’s actual and anticipated operations, attempting to artificially inflate CanaFarma’s reported revenue, making false statements to CanaFarma’s auditors, and misappropriating millions of dollars of investor funds.
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In addition to the prison sentence, FARGESEN, 54, of Manalapan, New Jersey, and PALATNIK, 49, of Morganville, New Jersey, were each ordered to forfeit $1,733,000 and to pay restitution in the amount of $4,703,915.26.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, and Sarah Mortazavi are in charge of the prosecution.
Two Former Postal Workers Charged with Stealing U.S. Treasury Checks Valued at More Than $4 Million from Kennedy Airport Mail FacilityRead the Press Release
Four separate indictments were unsealed today at the federal courthouse in Brooklyn charging five defendants with crimes related to the fraudulent theft and deposit of checks issued by the United States Department of the Treasury. As alleged in the indictments, two of the defendants, both former United States Postal Service (USPS) employees, allegedly sold the checks which were stolen from a USPS mail facility located at John F. Kennedy International Airport (JFK Mail Facility) where one of the defendants worked. The other three defendants fraudulently endorsed and deposited Treasury checks that were not addressed to them. Four of the defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. One of the defendants remains at large.
Breon Peace, United States Attorney for the Eastern District of New York; Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), Matthew Modafferi, Special Agent in Charge, United States Postal Service Office of Inspector General, Northeast Area Field Office (USPS OIG); Edward A. Caban, Commissioner, New York City Police Department, (NYPD); Michael Carpenter, Special Agent in Charge, United States Treasury Inspector General for Tax Administration, Northeast Field Division (TIGTA); and Patrick J. Freaney, Special Agent in Charge, United States Secret Service (Secret Service), announced the arrests and charges.
“The former postal workers abused their positions of trust to allegedly pull one of the biggest thefts at John F. Kennedy International Airport,” stated United States Attorney Peace. “The charges allege these five defendants stole, sold and fraudulently deposited millions of dollars in U.S. Treasury checks, which included pandemic relief payments, for their own financial benefit. Criminals who cash in on checks stolen from the mail can expect to fill out change of address forms for the federal prison they will be calling home.”
“Postal Inspectors relentlessly pursue criminals who exploit the US Mail for unlawful purposes. The indictments of these co-conspirators who allegedly stole Treasury Checks and defrauded the American taxpayer serve as a resounding message to anyone who wants to steal US Mail. We will steadfastly work with our partners in law enforcement and the US Attorney’s Office, and we will hold criminals accountable for their actions,” stated USPIS Inspector in Charge Brubaker.
“The Special Agents of the U.S. Postal Service Office of Inspector General will vigorously investigate Postal Service employees and their co-conspirators who break the public’s trust. Postal Service employees who trade their integrity for greed and those who conspire with them should know that the Agents of the U.S. Postal Service Office of Inspector General will tirelessly work to bring them to justice. The USPS OIG is thankful for the great relationships we have developed with our law enforcement partners and with the U.S. Attorney’s Office to combat this criminal scheme affecting the American public,” stated USPS-OIG Special Agent in Charge Modafferi.
“NYPD investigators are proud to have helped thwart this multimillion-dollar scheme that allegedly bilked innocent victims of their deserved checks,” stated NYPD Commissioner Caban. “We and our law enforcement partners are committed to maintaining the integrity of a postal system relied upon by millions of New Yorkers. And we vow to hold accountable anyone involved in the types of crimes outlined in these indictments, especially public employees who might pursue illicit gain by leveraging their positions of trust.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit United States Treasury refund checks meant for hard working taxpayers for their own private gain,” stated TIGTA Special Agent in Charge Carpenter. “Our mission at the TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure that those who endeavor to violate federal laws related are prosecuted to the fullest extent possible.”“This 21-month investigation brought down a brazen criminal enterprise whose very existence violated the public trust,” stated Secret Service Special Agent in Charge Freaney. “I want to commend the United States Postal Inspection Service, along with our many partners for rooting out this flagrant corruption through persistent and exacting investigative work. The Treasury checks stolen in this case disrupted thousands of lives and syphoned funds from the pockets of the very people the accused were expected to serve. The Secret Service is proud to play a role in holding these defendants accountable.”
United States v. Kevaughn Wellington and Ky-Mani Straker
As alleged in the indictment, between at least June 2021 and August 2023, the defendants Kevaughn Wellington and Ky-Mani Straker engaged in a scheme to steal and sell Treasury checks intended for, among other things, individuals entitled to Social Security benefits, COVID-19 stimulus checks and tax refunds. Wellington stole parcels containing Treasury checks from the JFK Mail Facility where he was employed at the time as a postal worker. Then, together with Straker and others, Wellington sold the stolen Treasury checks for a cut of the profit.
As part of the scheme, Wellington and Straker stole over 125 Treasury checks valued at more than $4 million. Straker falsely endorsed and deposited stolen Treasury checks in a bank account and withdrew the deposited funds for his own financial gain.
The defendants have been charged with conspiring to steal government funds, theft of government funds and possession of stolen mail. In addition, Wellington has been charged with theft of mail by a postal service employee and Straker has been charged with passing Treasury Checks bearing forged endorsements.
United States v. Angel Ortiz; United States v. Mark Dawson; United States v. Fuquan Bradley
As alleged in the remaining indictments, Angel Ortiz, Mark Dawson and Fuquan Bradley each deposited and falsely endorsed Treasury checks in excess of $1,000 that were not addressed to them. Each defendant has been charged separately with theft of government funds and passing Treasury Checks bearing forged endorsements.
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elias Laris is in charge of the prosecutions.
The Defendants:
KEVAUGHN WELLINGTON
Age: 31
Jamaica, New YorkKY-MANI STRAKER
Age: 24
Orange, New JerseyE.D.N.Y. Docket No. 24-CR-275 (DG)
ANGEL ORTIZ
Age: 27
Jamaica, New YorkE.D.N.Y. Docket No. 24-CR-281 (DG)
MARK DAWSON
Age: 28
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-278 (LDH)
FUQUAN BRADLEY
Age: 34
Bronx, New YorkE.D.N.Y. Docket No. 24-CR-279 (RER)
Trussville Man Sentenced in Multi-Million-Dollar Health Care Fraud CaseRead the Press Release
BIRMINGHAM, Ala. – Another man has been sentenced in a series of cases involving multi-million-dollar health care fraud and kickback conspiracies, announced U.S. Attorney Prim F. Escalona; Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples; and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
“This was a crime of greed and indifference to the consequences of the actions to the overall health system,” said U.S. Attorney Prim Escalona. “The crime cost insurers millions of dollars, and it exploited vulnerable patients trying to get appropriate medical care, not run up the tab on insurance. We will continue to fight hard to keep our community safe from serious crimes like this one.”
“Health care fraud is not a victimless crime. It costs U.S. taxpayers millions of dollars every year. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes,” said James DeLoatch, Acting Special Agent in Charge of the FBI Birmingham Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of federally funded health care programs,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General. “Today’s sentence exemplifies our commitment to protecting taxpayer-funded health care programs and the patients they serve.”
Earlier this week, U.S. District Court Judge L. Scott Coogler sentenced John Alan Robson, 41, of Trussville, to 56 months in prison. Robson was also ordered to pay forfeiture of about $1.1 million, and restitution of about $5.3 million. In February 2024, Robson pleaded guilty to health care fraud conspiracy related to his work with Brian Bowman, James Ray, and others.
According to Robson’s plea agreement, Robson knew that insurers would not pay for items or services that had been ordered based on kickbacks or that were medically unnecessary for a patient. Yet Robson received kickbacks—from specialty pharmacies, a nerve conduction testing company, and brace suppliers—to generate medically unnecessary orders and prescriptions from doctors’ offices that would be billed to insurance and reimbursed at high rates.
For example, Robson marketed nerve conduction testing to medical providers for a Huntsville-based company called QBR or Diagnostic Referral Community. QBR paid those providers a flat fee (for example, $50) for each test they ordered that insurance paid for. QBR paid Robson a flat fee for each of those tests, too. QBR paid one of Robson’s medical practices more than $100,000 in per-test kickbacks.
As another example, Robson marketed high-reimbursing topical creams—such as pain creams and scar creams—to providers on behalf of specialty pharmacies like Global Compounding Pharmacy and Watson Rx Solutions. Robson was paid lucrative commissions on the cream prescriptions that he and his team generated and insurance paid for. Robson got prescriptions for himself and family members regardless of whether those topical creams were medically necessary for the patients. Robson and other sales reps got blank pre-signed prescriptions from medical providers, filled out the prescriptions to make sure insurance would pay for them, and even selected the drugs or drug formulations to make sure insurance would pay for them. Robson admitted that federal insurance programs paid millions of dollars for medically unnecessary prescriptions for which Robson, Ray, and Bowman received commissions.
This case is the latest in a series of cases involving health care fraud and kickbacks through pain clinics, specialty pharmacies, and a nerve conduction company in north Alabama.
The FBI and HHS-OIG investigated this case. Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the case.
See related press here:
https://www.justice.gov/usao-ndal/pr/medical-sales-rep-and-former-pain-clinic-owner-sentenced-related-multi-million-dollar
https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar
https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care
https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy
https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud