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19 August 2024
Former Congressman George Santos Pleads Guilty to Fraud and Identity TheftRead the Press Release
Former U.S. Representative George Anthony Devolder Santos pleaded guilty today to committing wire fraud and aggravated identity theft.
In pleading guilty, Santos, 36, of Queens, New York, admitted he filed fraudulent FEC reports, embezzled funds from campaign donors, charged credit cards without authorization, stole identities, obtained unemployment benefits through fraud, and lied in reports to the House of Representatives.
“As part of his campaign for election to the U.S. House of Representatives, George Santos committed fraud and identity theft, and lied to the American people about his personal finances and campaign supporters,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In doing so, Santos violated laws designed to ensure that the public has accurate information about the personal finances of individuals who seek to represent them in Congress and how their political campaigns are funded. The transparency and accuracy that these laws require are essential to the integrity of the election process, and today’s conviction is proof that the Criminal Division is committed to enforcing them.”
“Today, for what may seem like the first time since he started his campaign for Congress, Mr. Santos told the truth about his criminal schemes. He admitted to lying, stealing and conning people,” said U.S. Attorney Breon Peace for the Eastern District of New York. “By pleading guilty, Mr. Santos has acknowledged that he repeatedly defrauded federal and state government institutions as well as his own family, supporters and constituents. His flagrant and disgraceful conduct has been exposed and will be punished. Mr. Santos’s conviction demonstrates this Office’s enduring commitment to rooting out corruption and grift by public officials.”
“Today, George Santos admitted that he did in fact lie, cheat, and steal his way to elected office,” said Acting Assistant Director in Charge Christie M. Curtis of the FBI's New York Field Office. “When public officials place their self-interests above those they swore an oath to serve, it undermines confidence in our system of government and damages the very foundation of our democracy. The FBI is committed to investigating and eradicating public corruption—no matter the form it takes.”
“George Santos lied to his constituents, cheated his supporters and quite simply made a mockery of his position in public office,” said Agent in Charge Thomas M. Fattorusso of IRS-Criminal Investigations New York. “Today’s guilty plea is a step towards getting justice for those he has wronged. IRS-CI New York worked closely with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences for his years of fraud and deceit, because corruption is not to be tolerated.”
The Party Program Scheme
During the 2022 election cycle, Santos was a candidate for the U.S. House of Representatives in New York’s Third Congressional District. Nancy Marks, who pleaded guilty in October 2023 to related conduct, was the treasurer for his campaign committee, Devolder-Santos for Congress. During the election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC) on behalf of the campaign, in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.
Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee, pursuant to which the national party committee would provide financial and logistical support to Santos’s campaign. To qualify for the program, Santos had to demonstrate that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.
To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 10 family members of Santos and Marks had made significant financial contributions to the campaign. In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, understanding that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, Santos and Marks agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans. These false reported loans included a $500,000 loan, when in fact Santos had less than $8,000 in his personal and business bank accounts.
Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee. As a result of qualifying for the program, the congressional campaign received significant financial support.
As part of his plea agreement, Santos stipulated that he had engaged in the below additional criminal conduct, as set forth in the second superseding indictment and other court filings, and agreed that this criminal conduct will be considered by the Court at the time of sentencing.
The Credit Card Fraud Scheme
Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented in filings with the FEC that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders. Santos did not have authorization to use their names in this way.
Fraudulent Political Contribution Solicitation Scheme
Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two supporters (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.
Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos then used much of that money for personal expenses. Among other things, Santos used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.
Unemployment Insurance Fraud Scheme
Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1). By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.
In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), falsely claiming to have been unemployed since March 2020. From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.
False Statements to the House of Representatives
Santos, like all candidates for the House, had a legal duty to file with the Clerk of the U.S. House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.
In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure, in which he vastly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:
- He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
- He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
- He had a checking account with deposits of between $100,001 and $250,000; and
- He had a savings account with deposits of between $1,000,001 and $5,000,000.
These assertions were false. Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the New York State Department of Labor.
Santos is scheduled to be sentenced on February 7, 2025, and faces a mandatory minimum of two years in prison and a maximum of 22 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As part of the guilty plea, Santos will pay restitution of $373, 749.97 and forfeiture of $205, 002.97.
Trial Attorneys Jacob Steiner and John Taddei of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise for the Eastern District of New York are prosecuting the case. Former Trial Attorney Jolee Porter and Litigation Counsel Victor R. Salgado provided substantial contributions to the prosecution.
Former CEO of failed bank sentenced to prisonRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 293 months in prison for using his former position as chief executive officer (CEO) of a bank to embezzle tens of millions of dollars in a cryptocurrency scheme which led the bank to fail at a complete loss of equity for investors.
According to court documents, Shan Hanes, 53, of Elkhart pleaded guilty to one count of embezzlement by a bank officer.
While the CEO of Heartland Tri-State Bank (HTSB) in Elkhart, Kansas, Hanes initiated 11 outgoing wire transfers between May 2023 and July 2023 totaling $47.1 million of Heartland’s funds to a cryptocurrency wallet in a cryptocurrency scheme referred to as “pig butchering.” The funds were transferred to multiple cryptocurrency accounts controlled by unidentified third parties during the time HTSB was insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC absorbed the $47.1 million loss. Hanes’ fraudulent actions caused HTSB to fail and the bank investors to lose $9 million.
A federal judge ordered that restitution be finalized at a separate hearing within the next 90 days.
“Hanes’ greed knew no bounds. He trespassed his professional obligations, his personal relationships, and federal law. Not only did Shan Hanes betray Heartland Bank and its investors, but his illegal schemes also jeopardized confidence in financial institutions,” said U.S. Attorney Kate E. Brubacher. “Today’s sentence is a measure of justice for the victims, and a statement that the U.S. Department of Justice will hold those accountable who violate positions of trust for their own gain.”
“Mr. Hanes, as the CEO of Heartland Tri-State Bank, held the trust and confidence of the community of Elkhart, KS, but he violated that trust. He attempted to benefit financially by embezzling funds from the bank. His idea to get rich quick, in all reality, was a pig butchering scheme. His involvement in this scheme ultimately led to the bank’s collapse. His job, the bank’s job was to protect its customers and identify fraudulent scams – not to participate in them,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office.
“As the CEO, the defendant had a duty to conduct business honestly but instead abused that trust and committed insider fraud, contributing to the failure of a bank and causing catastrophic losses to bank customers who relied on the bank for the safekeeping of their savings,” said Korey Brinkman, Special-Agent-in-Charge of FHFA-OIG’s Central Region. “We will continue to vigorously investigate criminal offenses involving frauds that impact the integrity, safety, and soundness of Federal Home Loan Banks and member banks. We are proud to partner with our colleagues and the United States Attorney’s Office with this investigation.”
“Shan Hanes was sentenced today for his role in a $47.1 million embezzlement scheme that ultimately caused Heartland Tri-State Bank to fail,” said Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Kansas City Region. “We are pleased to join our law enforcement partners in bringing Mr. Hanes to justice, and we will continue to investigate and hold accountable bank insiders who violate their positions of trust and threaten to undermine the safety and soundness of our Nation’s financial institutions.”
“Today’s sentencing makes clear that bank executives who undermine the safety and soundness of community banks will be brought to justice,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners to achieve this result, and we thank the U.S. Attorney’s Office for prosecuting this case and holding Mr. Hanes accountable for his crimes.”
The Federal Bureau of Investigation (FBI), Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG), Federal Reserve Board - Office of Inspector General (FRB-OIG), and Federal Housing Finance Agency – Office of Inspector General ((FHFA-OIG) investigated the case.
Assistant U.S. Attorney Aaron Smith prosecuted the case.
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Florida Sex Offender Indicted for Distribution of Child Sexual Abuse MaterialRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest of Nicholes Scott Newman (42, Hilliard) on an indictment charging him with distribution of child sexual abuse materials. If convicted, Newman faces a minimum mandatory sentence of 15 years, up to 40 years, in federal prison.
According to court records, in June 2024, an undercover detective from a Texas law enforcement agency visited an online messaging application and posed as a 28-year female with an 8-year-old daughter. Newman introduced himself to the undercover by saying, “42 year old male, looking to breed.” Newman engaged in sexually explicit conversations regarding children and sent the undercover detective multiple videos of child exploitation material. Newman is a convicted sex offender out of Pinellas County, where he was sentenced to more than six years in Florida State Prison after he was convicted on 20 counts of possession of child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by Homeland Security Investigations and the Nassau County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney John Cannizzaro.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Man Sentenced to 36 Months in Federal Prison for Defrauding Zelle UsersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KADER GAHMAAL BIWAKI EDMOND, 24, of Miami Gardens, Florida, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release and 125 hours of community service, for his role in a scheme that defrauded individuals who use the electronic payments system Zelle.
According to court documents and statements made in court, law enforcement has been investigating crimes against users of digital payment applications, including Zelle. Typically, a scheme victim receives a fraudulent text message, purporting to be from the victim’s bank, asking the victim to confirm whether a Zelle transaction was authorized. When the victim denies the transaction, the victim receives a response that a bank representative will be in contact. The victim then receives a phone call from an individual impersonating a bank representative, who informs the victim that an unauthorized transaction has occurred and that they need to work together to reverse the transaction. Without the victim’s knowledge, the fraudsters will link the victim’s actual phone number or email address via Zelle to a bank account that does not belong to the victim. The victim is then instructed to “reverse” the fictional fraudulent transaction by making a Zelle payment to what they believe is their own account, but is, in fact, an account controlled by the fraudsters.
From approximately February 2021 through August 2023, Edmond and others defrauded numerous victims, including victims in Connecticut, of a total of more than $250,000 through this Zelle scheme and other fraud schemes.
Judge Shea ordered Edmond to pay $290,157 in restitution.
Edmond was arrested on August 31, 2023. On May 21, 2024, he pleaded guilty to conspiracy to commit bank fraud.
Edmond, who is released on a $100,000 bond, is required to report to prison on October 21, 2024.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Edward Chang.
Victims can report Zelle fraud to their bank or credit union, or to the Internet Crime Complaint Center (IC3), which is run by the FBI and serves as the country’s hub for reporting cybercrime, at www.ic3.gov.
Additional information about digital payment application schemes is available at https://www.ic3.gov/Media/Y2022/PSA220414.
Florence Doctor Pleads Guilty to Distributing Oxycodone in “Sex for Scripts” SchemeRead the Press Release
FLORENCE, S.C. —David Carlos Rodriguez, Jr., 50, of Florence, has pleaded guilty to distributing Oxycodone outside the scope of medical practice and without a legitimate medical purpose.
Evidence obtained during the investigation revealed that Rodriguez, who was a doctor practicing in Lake City, prescribed Oxycodone to a patient 15 times between May 2018 and January 2019. The individual had been a patient of Rodriguez in 2013-2014 but had not been his patient between 2014 and 2018. When the patient first returned to see Rodriguez in 2018, purportedly for treatment of pain, Rodriguez did not ask the patient about her current medical history, did not ask her for a pain rating, and did not ask her what controlled substances she might be taking despite clear indicators she was using illicit drugs. The patient requested an Oxycodone prescription at the first appointment, and Rodriguez provided the first of the 15 prescriptions, starting at a very high dosage. Rodriguez also touched the patient at the first appointment in manner not consistent with any medical examination.
Over the following months, Rodriguez provided the patient his Snapchat, and began sending her nude pictures. The patient believed this to be a “sex for scripts” trade, where if she engaged in sexual behavior, Rodriguez would write her prescriptions for Oxycodone.
During the summer of 2018, the patient sought substance abuse treatment from another provider and was given a prescription for Suboxone. A patient should not be taking both Suboxone and Oxycodone. After the patient was prescribed Suboxone, Rodriguez wrote the patient another prescription for Oxycodone. When the patient tried to have this Oxycodone prescription filled, the pharmacist noted the conflict between Suboxone and Oxycodone, and contacted Rodriguez’s office to notify him he could not prescribe Oxycodone because the patient was prescribed Suboxone. Rodriguez responded by sending the patient’s prescription for Oxycodone to another pharmacy the following day. Rodriguez would prescribe Oxycodone for the patient 10 more times, despite being on notice she was prescribed Suboxone.
During the fall of 2018, the patient twice filmed her appointments with Rodriguez. Those videos show Rodriguez entering the exam room, and begin hugging, kissing, and fondling the patient, not in a manner related to any medical exam. On one occasion, the patient performed a sexual act on Rodriguez. Shortly after the sexual activity concluded, Rodriguez wrote the patient a prescription for Oxycodone.
During the time the patient saw Rodriguez, he never asked her for a pain rating, never drug tested her, never sent her for imaging, never sent her to a pain specialist, never discussed alternative pain treatment, and never attempted to wean her off Oxycodone despite the medicine not effectively controlling her pain. Rodriguez also kept only basic records for the patient without details about why she was being seen and what treatment she was receiving. Rodriguez only added the necessary details about the patient’s treatment to her records months after he saw her after repeated legal requests for the records.
United States District Judge Joseph Dawson, III, accepted the guilty plea and will sentence Rodriguez after receiving and reviewing a sentencing report prepared by the U.S. Probation Office. Rodriguez faces a maximum penalty of 20 years in federal prison. He also faces a fine of up to $1,000,000, and at least three years of supervision to follow the term of imprisonment. As part of his guilty plea, Rodriguez surrendered both his state and federal prescribing privileges.
This case was investigated by the South Carolina Department of Public Health and the Drug Enforcement Administration. Assistant U.S. Attorneys Katherine Flynn and Lauren Hummel are prosecuting the case.
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Federal Jury Finds Twin Cities Felon Guilty of Illegal Firearm PossessionRead the Press Release
DULUTH, Minn. – A federal jury found a Twin Cities man guilty of possessing a firearm as an armed career criminal, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, on July 7, 2023, Mille Lacs Tribal Police Department officers were dispatched to a residence in Onamia in response to a 911-call concerning a suspected drug overdose. Officers encountered Jeremy Jantile Burton, 36, lying unconscious on the floor of a bedroom in the residence, and began resuscitation efforts. After administering two doses of Narcan, the officers moved Burton from the floor of the bedroom to a nearby mattress and noticed a magazine of a handgun protruding from his shorts pocket. In order to secure the scene for EMS personnel, the officers recovered the handgun from Burton’s pocket, and also observed several items of drug paraphernalia in the bedroom. Burton was transported to the Onamia Hospital by ambulance and the officers obtained a search warrant. A subsequent search of the residence revealed several controlled substances including cocaine, methamphetamine and fentanyl, scales commonly used to weigh controlled substances, several items of drug paraphernalia, and 36 rounds of 9 mm ammunition.
Because Burton has multiple prior felony convictions in Hennepin, Ramsey, and Mille Lacs counties, as well as in the state of Georgia, including aggravated robbery, drug, and firearm possession, he is prohibited under federal law from possessing firearms or ammunition at any time.
Following a three-day trial before Chief Judge Patrick J. Schiltz in U.S. District Court in Duluth, a jury found Burton guilty on Friday of possession of a firearm as an armed career criminal. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Mille Lacs Tribal Police Department, the Minnesota Bureau of Criminal Apprehension, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Andrew Dunne and Michael P. McBride represented the United States at trial.
Duluth Man Sentenced for Trafficking MethamphetamineRead the Press Release
ATLANTA - Jorge Rodriguez-Martinez has been sentenced to federal prison for his role in distributing multiple kilograms of methamphetamine in the metro-Atlanta area.
“Methamphetamine traffickers pose a grave threat to our communities and peddle these dangerous drugs in total disregard of the lives they place at risk,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the coordinated and tireless efforts of our federal and state partners, Rodriguez-Martinez will now be held accountable for his crimes.”
“Our communities remain under attack by drug traffickers with no regard for the harm and destruction they cause,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to bring to justice the drug traffickers who drive addiction and destroy our communities.”
“Under DEA leadership, the federal, state and local agencies assigned to the Atlanta Carolinas work tirelessly to thwart this poison from impacting so many communities in North Georgia,” said Dan Salter, Director of the Atlanta Carolinas High Intensity Drug Trafficking Area. This investigation, culminating with the sentencing of Rodriguez-Martinez, exemplifies that good always prevails and the effort and commitment by agents and task force officers is noble.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On October 7, 2020, a confidential source (CS) working with agents from the DEA, made multiple recorded phone calls to Rodriguez-Martinez to purchase several kilograms of methamphetamine. After the phone calls, Rodriguez-Martinez, who was being surveilled by federal law enforcement agents, travelled to a location in the metro-Atlanta area to meet with a drug supplier at a Dunwoody apartment complex. Rodriguez-Martinez traveled to the CS’s residence where he dropped off his truck containing multiple kilograms of methamphetamine, switched vehicles, then drove away.
The CS placed additional recorded phone calls to Rodriguez-Martinez, during which Rodriguez-Martinez confirmed that the drugs were in the truck and agreed to return to the CS’s residence to pick up the drugs. Rodriguez-Martinez next travelled to the CS’s residence, picked up the methamphetamine, and quickly departed. Shortly thereafter, the Georgia State Patrol stopped Rodriguez-Martinez’s vehicle and located approximately three kilograms of methamphetamine on the front passenger floorboard.
Jorge Rodriguez-Martinez, 56, of Duluth, Georgia, was sentenced by U.S. District Judge Steve C. Jones on August 16, 2024, to 10 years in prison on each count, to be served concurrently, followed by four years of supervised release. Following a three-day trial, a federal jury convicted Rodriguez-Martinez on April 25, 2024, on one count of conspiracy to possess methamphetamine with the intent to distribute, and one count of possessing methamphetamine with the intent to distribute.
This case was investigated by the Drug Enforcement Administration and the Atlanta Carolinas High Intensity Drug Trafficking Area (HIDTA) Task Force, with assistance from the Georgia State Patrol.
Special Assistant U.S. Attorney McClellon D. Cox, III, and Assistant U.S. Attorney Sandra E. Strippoli prosecuted the case. This case was previously prosecuted by Special Assistant U.S. Attorney Rachel S. Lyons.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
D.C. Councilmember Arrested on Bribery ChargeRead the Press Release
WASHINGTON – Trayon White Sr., the D.C. Councilmember representing Ward 8, was arrested yesterday on a criminal complaint charging him with bribery. White, 40, is Chair of the Council’s Committee on Recreation, Libraries and Youth Affairs, which oversees several agencies including the D.C. Department of Youth Rehabilitation Services (DYRS).
The complaint alleges that, beginning in June 2024, White corruptly agreed to accept $156,000 in cash payments in exchange for using his position as a D.C. Councilmember to pressure government employees at Office of Neighborhood Safety and Engagement (ONSE) and DYRS to extend several D.C. contracts. The contracts at issue were valued at $5.2 million and were for two companies to provide Violence Intervention services in D.C. As alleged, the $156,000 White agreed to accept in exchange for using his official position to pressure renewal of those contracts to particular companies was three percent of the total contract value. According to the complaint, White’s agreement with a confidential human source (the owner of the companies) – including the source’s payments to White of $35,000 in cash on four separate occasions (June 26, July 17, July 25, and August 9, 2024) and the source showing White a document reflecting how White’s three-percent cut was calculated based on those contracts – was captured on video.
The arrest and charge was announced by U.S. Attorney for the District of Columbia Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, D.C. Inspector General Daniel Lucas, and Executive Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C. Field Office.
“Because the investigation into the alleged bribery scheme involved contracts that could soon be awarded and other potential official acts that could be taken, our Office took swift steps to address the alleged crimes we were investigating,” said U.S. Attorney Graves.
This ongoing investigation is being handled by the U.S. Attorney’s Office for the District of Columbia, the FBI Washington Field Office, the D.C. Office of the Inspector General, and the IRS Criminal Investigation Washington Field Office.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Council Bluffs Woman Sentenced to 122 Months in Federal Prison for Drug ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs woman was sentenced on Tuesday, August 13, 2024, to 122 months in federal prison for Conspiracy to Distribute Methamphetamine.
According to public court documents, Demi Lynn Jahn, 33, conspired with other individuals to distribute more than 50 grams of methamphetamine in the Council Bluffs metro area between March and June 2023. Jahn conspired with others including Leonires Perez, also known as “Flaco,” who was sentenced in May 2024 in the District of Nebraska to 248 months for conspiracy to distribute a controlled substance, and Virgil McIntosh, who was sentenced in April 2024 to 240 months in prison for conspiracy to distribute methamphetamine and possession of a firearm.
After completing her term of imprisonment, Jahn will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal made the announcement. This case was investigated by the Southwest Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department, Iowa Division of Narcotics Enforcement, and Pottawattamie County Sheriff’s Office.
Council Bluffs Man Sentenced to 48 Months in Federal Prison for Firearms ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced on Wednesday, August 14, 2024, to 48 months in federal prison for two counts of possessing a firearm as a drug user.
According to public court documents, Nicholas Paul Gilmore, 33, was found in possession of two firearms between August and September 2023. One of the firearms was stolen. During a search of Gilmore’s residence in August 2023, officers located methamphetamine, ammunition, and extended firearms magazines.
After completing his term of imprisonment, Gilmore will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Council Bluffs Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Council Bluffs Man Sentenced to 136 Months in Federal Prison for Drug ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced on Tuesday, August 13, 2024, to 136 months in federal prison for distribution of methamphetamine.
According to public court documents, Michael Martin Meehan, 53, distributed methamphetamine to a confidential informant on two occasions in January 2023, totaling more than 150 grams.
After completing his term of imprisonment, Meehan will be required to serve seven years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, and Carter Lake Police Department.
Cleveland Man Sentenced for Fentanyl TraffickingRead the Press Release
WHEELING, WEST VIRGINIA - Solomon Eli Watters, 28, of Cleveland, Ohio, was sentenced today to 151 months in federal prison for his role in a drug trafficking conspiracy in Ohio County.
Watters pled guilty in January 2023 to one count of conspiracy to distribute and possess with intent to distribute cocaine base and 400 grams or more of fentanyl. In February 2022, Watters was stopped by the Wheeling Police Department. A search of the Audi A7 that he was driving resulted in the seizure of $3,556 in cash and a Walther .380 caliber pistol, which had been reported stolen. Officers then executed a search warrant at Watters’ Wheeling residence and discovered two more pistols, ammunition, digital scales, and cocaine base.
Additional search warrants were obtained for two Washington, Pennsylvania, storage units. Those searches yielded 1.26 kilograms of fentanyl and an additional $208,860 in cash.
“The profits from fentanyl trafficking are spectacular and that’s why people like Mr. Watters engage in it,” said United States Attorney William Ihlenfeld. “We will continue to pursue long prison sentences in these cases and the forfeiture of the cash they generate.”
In addition to the firearms and ammunition, $212,416 in United States currency and the Audi A7 will be forfeited.
Watters has a criminal history that includes drug possession, firearms violations, and aggravated assault.
Watters will serve five years of supervised release following his prison sentence.
The Wheeling Police Department; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Pennsylvania State Police investigated.
Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Clarksville Man Indicted on Robbery and Weapons Charges After Robbing, Beating and Raping Three Women at Clarksville MotelsRead the Press Release
NASHVILLE – Kenneth Moore, 45, of Clarksville, Tennessee, has been charged with robbing three women in Clarksville, Tennessee, brandishing a weapon during the robberies, and being a felon in possession of a firearm, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Charging documents and other publicly available information allege that on three separate occasions between October 2023 and February 2024, Moore arranged dates with women in Clarksville and subsequently robbed, raped, beat and pistol whipped them. All three victims were treated for their injuries at local hospitals.
Moore was arrested by Clarksville Police Department officers on February 29, 2024. He was indicted by a federal grand jury in the Middle District of Tennessee on July 17, 2024, and had his initial appearance in federal court in Nashville on August 16, 2024.
If convicted, Moore faces a mandatory minimum of 7 years and up to life in federal prison on the weapons charges, up to 20 years on the robbery charges, and up to 15 years on the felon in possession of a firearm charge. If Moore is determined to be an armed career criminal, he faces between 15 years and life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksville Police Department. Assistant U.S. Attorneys Kathryn Risinger and Monica R. Morrison are prosecuting the case.
An indictment is merely an accusation. The defendant is considered innocent until proven guilty in a court of law.
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Clarksville Felon Sentenced to 1.5 Years in Federal Prison for Stealing over $125,000 in Federal Benefits After Prior Conviction for a Similar SchemeRead the Press Release
NEW ALBANY—Willie D. Watts, 42, of Clarksville, has been sentenced to eighteen months in federal prison, followed by three years of supervised release, after pleading guilty to theft of federal benefits from the Section 8 Housing Voucher, Supplemental Nutrition Assistance, and Social Security programs.
According to court documents, from 2014 to 2021, Ms. Watts received benefits from four different federal programs intended to benefit eligible persons in need: Section 8 housing vouchers, Supplemental Nutrition Assistance (“SNAP”), Social Security Survivors benefits, and Medicaid.
To qualify for these programs, Watts lied and represented that one or more of her children was living with her and needed services, when all three of the children were actually living with other family members. She recertified this false information as required, generally on an annual basis. This resulted in Watts receiving benefits from the federal programs that she was not entitled to receive.
For example, from February 2015 through September 2019, Watts fraudulently received Social Security Survivors Benefits intended for two of her children following the deaths of their fathers, by falsely certifying that they lived with her. Watts used the funds for her own purposes and did not provide them to her children.
Watts also made false statements about her income and assets. She did not disclose that she owned a house in Jeffersonville, Indiana, or that she was receiving rental income from tenants who lived there. Watts knew that if she gave complete and accurate information to the government programs, her benefits would be reduced or eliminated. Her lies allowed her to receive $125,753.90 in federal benefits to which she was not entitled.
Watts engaged in this scheme in Indiana after engaging in a nearly identical scheme in Kentucky. In 2016, Watts was charged with felonies in Jefferson County, Kentucky for stealing over $30,000 from government assistance programs, including SNAP and Medicaid. From 2011 through 2013 Watts lied and represented that one or more of her children was living with her and needed services, when they did not in in fact live with her. She was convicted in 2018 and sentenced to three years in prison, which was suspended to probation. Watts continued her Indiana scheme throughout her prosecution and sentencing in Kentucky.
“Hard-working families and financially vulnerable children often are supported by federal programs at times of financial crisis,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Undeterred by prior felony convictions for the same conduct, this defendant chose to steal over $125,000 in public money from eligible recipients in need. The federal prison sentence here demonstrates that the Department of Justice will work closely with our partners in federal, state, and local law enforcement to identify criminals who defraud public programs and hold them accountable.”
“Watts’ selfish actions diverted critical taxpayer dollars from HUD-assisted housing programs intended for low-income families to have decent and safe housing,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
“Willie Watts made false claims to the Social Security Administration to unlawfully receive Social Security Survivors Benefits. Her deliberate theft of Social Security Benefits was criminal and has led to this sentence that now holds her accountable for defrauding several federal benefit programs, including Social Security,” stated Acting Special Agent in Charge, Chancellor Melvin, Social Security Administration (SSA) Office of the Inspector General (OIG) Chicago Field Division. “SSA OIG will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate. I thank the U.S. Department of Housing and Urban Development, Office of Inspector General. (HUD OIG) and the Indiana Family and Social Services Administration for working with us in this investigation and Assistant U.S. Attorney Matthew B. Miller for prosecuting this case.”
The U.S. Department of Housing and Urban Development-Office of Inspector General, Social Security Administration-Office of Inspector General, and the Indiana Family and Social Services Administration investigated this case. The sentence was imposed by U.S. District Judge Sarah Evans Barker.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.
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Chinese National Sentenced to 17 Months for Money LaunderingRead the Press Release
Jacksonville, Florida – United States District Judge Wendy Berger has sentenced Cunwen Zhu (45, China) to 17 months in federal prison for money laundering. Zhu entered a guilty plea on April 8, 2024.
According to court documents, Zhu received a $470,000 wire transfer which came from a victim of a financial investment scam. The victim was one of many that believed that their money was funding an online brokerage account, when in reality the funds were going to bad actors that were using it for their personal gain. Zhu took the money, converted it to cryptocurrency, and sent it to his associate in China. Zhu was paid a percentage of the money that he transferred to the Chinese national. As part of Zhu’s sentence, he was ordered to pay $470,000 to the victim.
The case was investigated by the United States Secret Service North Florida Cyber Fraud Task Force. It was prosecuted by Assistant United States Attorney John Cannizzaro.
Chicago Man Sentenced to Life in Prison for Fort Myers Murder-For-HireRead the Press Release
Fort Myers, Florida – United States District Judge Sheri Polster Chappell today sentenced Latrel Jackson aka “Kobe” (27, Chicago, IL) to life in federal prison for conspiracy to commit murder-for-hire and murder-for-hire. Jackson’s co-defendant, Marvin Harris, Jr. aka “Mesh” (25, Fort Myers), was sentenced to 45 years in prison earlier this year.
According to court documents, Harris, Jr. hired Jackson and an unindicted co-conspirator, D.S. (deceased), to travel from Chicago to Fort Myers to commit murder in exchange for $10,000 in November 2019. Harris, Jr.’s motive was to retaliate against individuals who he believed had previously robbed a Fort Myers residence from which he and others associated with him sold drugs. The individuals Harris, Jr. suspected of committing the robbery and shooting belonged to a Fort Myers gang known to law enforcement as “Bucktown.”
With the agreement to retaliate against Bucktown in place, Jackson and D.S. flew to Fort Myers from Chicago on October 28, 2019. Upon arrival, Harris, Jr. picked Jackson and D.S. up from the Southwest Florida International Airport and provided them with partial payment for the planned murder, as well as firearms to accomplish their task.
Initially, Jackson and D.S. stayed at Harris, Jr.’s “trap house” (a residence used primarily to distribute drugs from) in Fort Myers, but later moved to a local motel on Palm Beach Boulevard. During that time, Jackson, D.S., and others attempted to find members of Bucktown to murder in the retaliatory scheme.
On November 2, 2019, Harris, Jr. obtained a vehicle for Jackson and D.S. to use during the commission of a murder. Jackson and D.S. proceeded to a known Bucktown hangout in Fort Myers and observed the victim, K.U., standing in front of the residence near the curb. Jackson and D.S. quickly circled the block and returned and, at close range, opened fire on K.U., killing him in front of the home via a gunshot wound to the head.
After the shooting, Harris, Jr. paid Jackson and D.S. the remaining sum of money owed for completing the murder-for-hire scheme. Jackson and D.S. were also left in possession of the firearms used to commit the murder. Jackson and D.S. then returned to the Chicago via commercial bus on November 3, 2019.
During a search of Jackson’s Chicago-area home on November 21, 2019, law enforcement recovered two firearms from an attic space in Jackson’s room. Testing and examination of the firearms by an examiner with the ATF confirmed that both matched shell casings recovered from the murder scene and the murder vehicle, and that one of the firearms had fired the bullet which had been recovered from K.U.’s head during his autopsy.
This case was investigated by the Federal Bureau of Investigation and the Fort Myers Police Department, with assistance from the Joliet (Illinois) Police Department, the Lee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charleston Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Clyde Anderson Jr., 44, of Charleston, was sentenced today to six years and four months in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl and methamphetamine.
According to court documents and statements made in court, on September 12, 2022, law enforcement officers encountered Anderson while responding to a domestic disturbance complaint at a Renaissance Circle apartment in Charleston. Anderson admitted that he consented to a search of a small bag he was carrying. Officers found a cylinder in the bag containing approximately 9 grams of a substance containing fentanyl and 13 grams of methamphetamine. Anderson admitted that he intended to distribute the controlled substances. Anderson further admitted that he also possessed a loaded Taurus model PT738 .380-caliber pistol that he handed over to the officers.
Anderson has a long criminal history with multiple prior convictions including possession of a firearm by an unlawful user of a controlled substance in United States District Court for the Southern District of West Virginia on March 21, 2013.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-120.
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Camp Verde Man Sentenced to 10 Years for Distributing Fentanyl and Methamphetamine Resulting in DeathRead the Press Release
PHOENIX, Ariz. – Robert Don Schield, 40, of Camp Verde, was sentenced on Wednesday by United States District Judge Dominic W. Lanza to 120 months in prison, followed by three years of supervised release. Schield pleaded guilty to the Distribution of Methamphetamine and Fentanyl that resulted in an overdose death on May 17, 2024.
In February 2022, Schield sold the victim six fentanyl pills and 10 grams of methamphetamine. The Yavapai County Sheriff’s Office responded to the victim’s home the next morning, after her friend discovered her unresponsive and not breathing. The medical examiner found the victim’s cause of death to be from methamphetamine and fentanyl intoxication. Schield was arrested in March 2022, after selling an ounce of methamphetamine and 10 fentanyl pills to another customer for $300.
“We cannot let those who introduce poison into Arizona’s communities walk about with impunity,” said United States Attorney Gary Restaino. “One pill can kill, and therefore one small drug transaction can lead to long time in prison. Many thanks to the Yavapai County Sheriff’s Office and the Flagstaff agents of the DEA for their compassion and diligence in this investigation.”
“This defendant's actions caused a tragic death,” said DEA Special Agent in Charge Cheri Oz. “DEA will not stop working with our law enforcement partners to protect our communities and hold those responsible who distribute deadly and dangerous drugs.”
“We’d like thank the DEA and the other organizations that worked so thoroughly with us on this case,” said Yavapai County Sheriff David Rhodes. “We would also like to thank the U.S. Attorney’s Office for making sure that deaths that result from these insidious narcotics will not go unpunished.”
The Arizona Department of Health Services reports that so far in 2024, there have been 665 confirmed opioid deaths (https://www.azdhs.gov/opioid/dashboards/index.php#overdose-deaths) and 4,781 emergency and inpatient visits involving suspected opioid overdose in Arizona (https://www.azdhs.gov/opioid/dashboards/index.php#emergency-inpatient-visits).
The Drug Enforcement Administration- Flagstaff POD, and Yavapai County Sheriff’s Office conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-8037-PCT-DWL
RELEASE NUMBER: 2024-113_Schield# # #
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.California Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
PORTLAND, Maine: A California man pleaded guilty today in U.S. District Court in Portland to possession of a firearm by a convicted felon.
According to court records, in March 2022, Lonnel Diggs (aka “Cash,” “Cashiioso Runzitup”), 40, of Van Nuys, Calif. and a co-conspirator proposed to a couple who purchased crack cocaine from Diggs that they purchase firearms in exchange for cash and crack cocaine. The couple agreed to make straw purchases and began traveling to gun shows and gun stores in Maine on the men’s behalf. At one of the gun shows, Diggs took photos of firearms and texted the images to the couple, who then made the purchases and provided him with the firearms.
Diggs was convicted in California for robbery in 2003 and for assault with a dangerous weapon on a peace officer in 2010 and is therefore precluded from possessing any firearms. He faces up to 10 years imprisonment and a maximum fine of $250,000. Any sentence would be followed by up to three years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case with assistance from the Lewiston Police Department.
STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her.
Project Safe Neighborhoods: This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psn.
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Businessman Sentenced to 18 Months in Federal Prison for False Income Tax ReturnRead the Press Release
DES MOINES, Iowa – A businessman, formerly of Adel, was sentenced yesterday to 18 months in federal prison for filing a false income tax return.
According to public court documents, Mark Francis Davidson, 66, is the majority shareholder of a company called Collegiate Concepts, Inc., which rents dorm minifridges to colleges and college students across the United States. Beginning in 2015 and continuing until 2021, Davidson diverted over $3.8 million from the corporation to himself and failed to report this income to the Internal Revenue Service. Davidson concealed these payments from the corporation’s accountant and tax preparer by providing falsified check ledgers that falsely identified checks from the corporation to Davidson as seemingly legitimate business expenses.
After completing his term of imprisonment, Davison will be on supervised release for one year. There is no parole in the federal system. Davidson was also ordered to pay $1,449,620 in restitution to the Internal Revenue Service and a fine of $20,000.
“A prison sentence should send a message to anyone who consistently underreports their income each year that it’s just a matter of time before they land on the radar of IRS Criminal Investigation (CI), and the U.S. Attorney’s Office,” said Special Agent in Charge Thomas F. Murdock of CI’s St. Louis Field Office. “We strive to ensure the integrity and fairness of the nation’s tax code, so all taxpayers pay their fair share.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by IRS Criminal Investigation.
Brooklyn Man Charged with Sex Trafficking and Interstate Prostitution of Multiple Victims at the "Penn Track" in East New YorkRead the Press Release
Earlier today, an indictment was unsealed in federal court in Brooklyn, charging Ferron Facey, also known as “Azul,” “Blue,” “Royal” and “Royal Da P,” with two counts of sex trafficking and one count of interstate prostitution for bringing young women from out of state to the Eastern District of New York to prostitute under threat of force, fraud and coercion. Facey was arrested earlier today in Brooklyn and made his initial appearance this afternoon before United States Magistrate Judge Peggy Kuo where he was ordered detained.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, the defendant trafficked women from out of state, including a minor, to serve as commercial sex workers for him at the notorious Penn Track in East New York, Brooklyn,” stated United States Attorney Peace. “My Office is working diligently with our local and federal law enforcement partners to shut down this blight on our district where vulnerable victims are callously exploited by people like the defendant and the customers who patronize this location.”
“Ferron Facey allegedly coerced two young women, including a minor, to travel to New York where he subsequently trafficked them for sex under threats of violence. The defendant’s violent history and alleged actions not only pose a grave danger to the community, but also to potential victims out of state, as his depravity knows no bounds. With the assistance from our law enforcement partners, the FBI is determined to dismantle sex trafficking operations in our city and apprehend the criminals who exploit their victims for profits,” stated FBI Acting Assistant Director in Charge Curtis.
According to court filings, Facey allegedly recruited young women – including at least one 16-year-old minor – in another state and brought them to New York to work for him in prostitution at an open-air sex market in East New York, Brooklyn, known as the “Penn Track” or “blade.” Facey used violence, coercion and threats of force to exert control over these victims and to keep them working in prostitution for him. Facey has a history of threatening violence against women on the Penn Track. For example, in a video posted on social media in July 2023, he was captured verbally assaulting a woman on the Penn Track and saying, “I got hoes out here that’ll beat you up right now . . . I put hands on bitches[.]” Shortly afterward, two individuals emerged from the defendant’s car and physically attacked the woman.
During his arrest and execution of a search warrant discovered an unloaded 9-millimeter handgun in the bedroom, an unloaded magazine kicked under the kitchen cabinets, multiple rounds of live 9-millimeter ammunition hidden in an air fryer in the kitchen, and a brown, powdery substance consistent with cocaine spilled onto the floor of the bathroom, the toilet seat, and in the toilet. Near the apparent contraband narcotics were approximately 200 glassines, or wax paper bags used in drug sales to package narcotics for individual sale. Nearly $3,000 in $100, $50 and 20$ bills was found in an elastic behind the bed in the bedroom.
If convicted of sex trafficking by force, fraud and coercion, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment. The interstate prostitution charge carries a maximum sentence of 20 years in prison.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Margaret Schierberl is in charge of the prosecution.
The Defendant:
FERRON FACEY (also known as “Azul,” “Blue,” “Royal” and “Royal Da P”)
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-339 (AMD)
Baton Rouge Man Sentenced to 75 Months in Federal Prison for Interference with Commerce by RobberyRead the Press Release
United States Attorney Ronald C. Gathe, Jr., announced that U.S. District Judge Brian A. Jackson sentenced Tyler Dunn, age 23, of Baton Rouge, Louisiana, to 75 months in federal prison following his conviction for interference with commerce by robbery. In addition to the term of imprisonment, the Court further sentenced Dunn to serve three years of supervised release.
According to admissions made as part of his guilty plea, on or about November 17, 2019, four masked and armed men, one of which was Dunn, entered the Dollar General store on 4755 Prescott Drive in Baton Rouge, Louisiana. The four robbers all brandished handguns. In the store, one robber walked up to a Dollar General cashier and pointed his handgun at the cashier. That robber then jumped over the register and, unlawfully and against their will, took money from the safe while directly in the presence of a Dollar General employee. During the robbery, Dunn forced an employee to move from the back of the store to the front of store while pointing a handgun at her. The robbers obtained approximately $7,000 from Dollar General.
On or about November 21, 2019, four robbers, which included Dunn, approached two employees of the Dollar General store located at 6365 Scenic Hwy as they stood outside the front door getting ready to lock the security gate. All robbers were wearing masks and armed with guns. The robbers, brandishing their guns, forced the two employees to open the door and enter the store. One robber ordered an employee to the back of the store while pointing a handgun at him and had the employee turn off an alarm. While in the presence of the robbers, an employee, against her will, removed approximately $1,200 from a safe and provided it to the robbers.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and was prosecuted by Assistant United States Attorneys Jeremy S. Johnson.
Armed Methamphetamine Trafficker Is Sentenced to over 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Antonio Abrego-Bega, 37, of Mexico, was sentenced today to 135 months in prison followed by five years of supervised release for distribution of methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, between September and October 2021, law enforcement learned that Abrego-Bega was selling methamphetamine in the Charlotte area. During the investigation, a confidential informant (CI) working with law enforcement was introduced to Abrego-Bega. In September 2021, the CI and purchased from the defendant over 50 grams of methamphetamine and a loaded firearm. Law enforcement arranged additional controlled purchases between the CI and Abrego-Bega, where the defendant sold the CI additional methamphetamine and firearms. On October 20, 2021, following a controlled purchase of methamphetamine with the CI, law enforcement took Abrego-Bega into custody. Law enforcement recovered approximately 334 grams of methamphetamine and digital scales that he possessed in a bag.
On February 22, 2023, Abrego-Bega pleaded guilty to distributing 50 grams or more of methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
The investigation was conducted by the ATF and CMPD.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
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.
Aiken Man Sentenced in Tax Evasion SchemeRead the Press Release
COLUMBIA, S.C. — Dennis Wayne Brite, 72, of Aiken, was sentenced to probation pleading guilty to tax evasion. He also immediately paid more than $669,000 in back taxes and interest.
Evidence presented to the court showed that for nearly a decade, Brite used a complex scheme involving foreign shell companies and overseas banks to hide over $2 million of income from the Internal Revenue Service. IRS criminal investigators learned of the scheme when one of the overseas banks involved in the scheme, Euro Pacific Bank, became a target of a federal investigation.
United States District Judge Sherri A. Lydon sentenced Brite to probation after his payment of $669,249.86 for his back taxes and interest. Evidence introduced in court indicated that defendants do not typically repay the entire tax loss amount including the interest and that Brite had made extraordinary efforts to come into compliance with his taxes.
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney T. DeWayne Pearson is prosecuting the case.
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18 August 2024
Former Homewood Finance Director Charged with Embezzling Nearly $950,000Read the Press Release
BIRMINGHAM, Ala. – The former finance director for the City of Homewood has been charged with, and agreed to plead guilty to, crimes related to his embezzling nearly $950,000 from Homewood’s coffers. United States Attorney Prim Escalona and FBI Special Agent in Charge Carlton Peeples made the announcement.
An information filed today in federal district court charges Robert Winston Burgett, 64, of Hueytown, with three counts of wire fraud. Also filed today was a plea agreement indicating that Burgett has agreed to plead guilty to the charges.
According to the information and plea agreement, Burgett worked for the City of Homewood as its finance director. Between at least May 2023 and about March 2024, Burgett used that position to embezzle almost $950,000 from City of Homewood bank accounts.
Burgett concealed his conduct by first moving the City’s funds into a commercial bank account he controlled before transferring the funds into his personal account. Burgett also altered City bank account statements and made false journal entries in City accounting records. Burgett ultimately used the embezzled funds for personal purposes.
The Court will set a date for Burgett to enter his guilty plea.
The FBI and the Homewood Police Department investigated the case with assistance from the Alabama Department of Examiners of Public Accounts. Assistant U.S. Attorney J.B. Ward is prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
16 August 2024
Woodland Hills Resident and Koreatown Extortionist Sentenced to 22½ Years in Prison for Racket Targeting Karaoke CompaniesRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 270 months in federal prison for extorting Koreatown karaoke companies and sometimes physically attacking victims who refused to pay, including carjacking one victim after beating him with a baseball bat.
Daekun Cho, 39, of Woodland Hills, was sentenced by United States District Judge Fernando L. Aenlle-Rocha, who also ordered him to pay $240,167 in restitution and a special assessment of $5,700.
At the conclusion of a five-day trial, a jury on March 26 found Cho guilty of 55 counts of interference with commerce by extortion, one count of attempted interference with commerce by extortion, and one count of carjacking.
“For years, this defendant terrorized merchants in Koreatown with his violent, shake-down schemes and intimidated victims into remaining silent,” said United States Attorney Martin Estrada. “But working with our local partners, we were able to uncover and expose this incorrigible racketeer. Extortionists who seek to profit through violence are on notice that we will use federal tools to hold them accountable and the consequences will be severe.”
“Our commitment to reducing violent crime in our cities is reflected yet again with the result of this sentencing,” said Homeland Security Investigations Los Angeles Special Agent in Charge Eddy Wang. “HSI’s collaboration with our state and local partners is crucial to our mission of ensuring public safety in Southern California.”
From at least 2018 through his arrest in March 2023, Cho demanded “protection” money from karaoke businesses in Koreatown, as well as from drivers of “doumis” – or hostesses – employed by patrons of the karaoke establishments.
For example, in May 2021, when one of Cho’s victims – a doumi driver – refused to pay him more money, Cho and his accomplice waited for him in a karaoke parking lot. Cho and his accomplice beat the victim with metal baseball bats until knocking him unconscious and then stole his minivan. The victim’s arm was broken when he protected his head from the blows. In fear of more violence at Cho’s hands, the victim and his business partner closed their karaoke driving company, and the business partner left California.
During a separate incident in July 2022, a different victim was dropping two doumis off at a karaoke bar in Koreatown when Cho – who appeared to have something in his hoodie pocket – approached the victim’s car, opened the door with his sleeve so as to not leave fingerprints, got halfway inside the vehicle, and told the victim that the victim’s company was not permitted to drop off doumis. As the victim drove away, he heard gunshots, breaking the car’s glass, a shard of which hit a doumi in the neck.
In January 2023, Cho assaulted another karaoke driver who for years had paid him in cash and then via Venmo a monthly extortion fee. Cho began accepting electronic extortion payments during the COVID-19 pandemic. When the victim stopped paying, Cho assaulted the victim, stole $1,000 from him, and threatened to kill him.
In text messages shown at trial, Cho threatened many victims that if they did not pay him, they would “see the real demon,” “face the consequence,” “get beat up,” or be “punch[ed],” or Cho would “come see u” or “kick u out of ktown.” One victim testified at trial that Cho pointed a gun at a victim’s head when he refused to comply with Cho’s orders.
When Cho was arrested on the charges in this case, he possessed a 9mm firearm, a Glock 17 caliber firearm, a partially built ghost gun, multiple loaded, high-capacity magazines, and ammunition for a revolver. One of the firearms was fully loaded with the safety disengaged. Cho also possessed illegal knife, two metal baseball bats, and $20,733 in cash.
HSI and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Jena A. MacCabe and Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case.
Woman Charged for Scheme to Defraud Elvis Presley’s FamilyRead the Press Release
A Missouri woman was arrested this morning on federal charges in connection with an alleged scheme to defraud Elvis Presley’s family of millions of dollars and steal the family’s ownership interest in Graceland, the former home of Elvis Presley, located in Memphis, Tennessee.
Lisa Jeanine Findley, also known as Lisa Holden, Lisa Howell, Gregory Naussany, Kurt Naussany, Lisa Jeanine Sullins, and Carolyn Williams, 53, of Kimberling City, Missouri, was charged in a criminal complaint unsealed today after her arrest. Findley will make her initial appearance later today in the U.S. District Court for the Western District of Missouri.
“As alleged in the complaint, the defendant orchestrated a scheme to conduct a fraudulent sale of Graceland, falsely claiming that Elvis Presley’s daughter had pledged the historic landmark as collateral for a loan that she failed to repay before her death,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “As part of the brazen scheme, we allege that the defendant created numerous false documents and sought to extort a settlement from the Presley family. Now she is facing federal charges. The Criminal Division and its partners are committed to holding fraudsters to account.”
“As a Memphian, I know that Graceland is a national treasure,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “This defendant allegedly used a brazen scheme to try to defraud the Presley family of their interest in this singularly important landmark. Of course, all homeowners deserve to have their property protected from fraud, and the Department of Justice will vigorously prosecute anyone who commits financial crimes or identity theft.”
According to court documents, Findley allegedly posed as three different individuals affiliated with a fictitious private lender named Naussany Investments & Private Lending LLC (Naussany Investments). Findley allegedly claimed falsely that Elvis Presley’s daughter had borrowed $3.8 million in 2018 from Naussany Investments, pledged Graceland as collateral for the loan, and failed to repay the debt. To settle the purported claim, Findley allegedly sought $2.85 million from Elvis Presley’s family. Findley allegedly fabricated loan documents on which Findley forged the signatures of Elvis Presley’s daughter and a Florida State notary public. Findley then allegedly filed a false creditor’s claim with the Superior Court of California in Los Angeles, and a fake deed of trust with the Shelby County Register’s Office in Memphis. Findley also allegedly published a fraudulent foreclosure notice in The Commercial Appeal, one of Memphis’s daily newspapers, announcing that Naussany Investments planned to auction Graceland to the highest bidder on May 23. Finally, when Naussany Investments was sued by Elvis Presley’s family in Tennessee state court as part of an effort to stop the sale of Graceland, Findley allegedly submitted false court filings.
After the scheme attracted global media attention, Findley allegedly wrote to representatives of Elvis Presley’s family, the Tennessee state court, and the media to claim falsely that the person responsible for the scheme was a Nigerian identity thief located in Nigeria.
“Fame and money are magnets for criminals who look to capitalize on another person’s celebrity status,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “In this case, Ms. Findley allegedly took advantage of the very public and tragic occurrences in the Presley family as an opportunity to prey on the name and financial status of the heirs to the Graceland estate, attempting to steal what rightfully belongs to the Presley family for her personal gain. Postal Inspectors and their law enforcement partners put an end to her alleged scheme, protecting the Presley family from continued harm and stress. This is an example of our relentless investigative work and commitment to bringing criminals to justice for their illegal activity.”
“Today’s announcement of charges and law enforcement action shows our broad approach to investigating allegations of identity theft and mail fraud, which can affect people from all walks of life,” said Special Agent in Charge Joseph E. Carrico of the FBI Memphis Field Office. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, who would steal an identity and use fraud to benefit themselves personally.”
Findley is charged with mail fraud and aggravated identity theft. If convicted, she faces a mandatory minimum of two years in prison for aggravated identity theft and a maximum penalty of 20 years in prison for mail fraud.
USPIS and the FBI Memphis Field Office are investigating the case with significant assistance from the FBI Kansas City Field Office.
Assistant Chief Cory E. Jacobs and Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll L. André III for the Western District of Tennessee are prosecuting the case, with significant assistance from the U.S. Attorney’s Office for the Western District of Missouri.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ComplaintWoman Charged for Scheme to Defraud Elvis Presley's FamilyRead the Press Release
WASHINGTON – A Missouri woman was arrested this morning on federal charges in connection with an alleged scheme to defraud Elvis Presley’s family of millions of dollars and steal the family’s ownership interest in Graceland, the former home of Elvis Presley, located in Memphis, Tennessee.
Lisa Jeanine Findley, also known as Lisa Holden, Lisa Howell, Gregory Naussany, Kurt Naussany, Lisa Jeanine Sullins, and Carolyn Williams, 53, of Kimberling City, Missouri, was charged in a criminal complaint unsealed today after her arrest. Findley will make her initial appearance later today in the U.S. District Court for the Western District of Missouri.
“As alleged in the complaint, the defendant orchestrated a scheme to conduct a fraudulent sale of Graceland, falsely claiming that Elvis Presley’s daughter had pledged the historic landmark as collateral for a loan that she failed to repay before her death,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “As part of the brazen scheme, we allege that the defendant created numerous false documents and sought to extort a settlement from the Presley family. Now she is facing federal charges. The Criminal Division and its partners are committed to holding fraudsters to account.”
“As a Memphian, I know that Graceland is a national treasure,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “This defendant allegedly used a brazen scheme to try to defraud the Presley family of their interest in this singularly important landmark. Of course, all homeowners deserve to have their property protected from fraud, and the Department of Justice will vigorously prosecute anyone who commits financial crimes or identity theft.”
According to court documents, Findley allegedly posed as three different individuals affiliated with a fictitious private lender named Naussany Investments & Private Lending LLC (Naussany Investments). Findley allegedly claimed falsely that Elvis Presley’s daughter had borrowed $3.8 million in 2018 from Naussany Investments, pledged Graceland as collateral for the loan, and failed to repay the debt. To settle the purported claim, Findley allegedly sought $2.85 million from Elvis Presley’s family. Findley allegedly fabricated loan documents on which Findley forged the signatures of Elvis Presley’s daughter and a Florida State notary public. Findley then allegedly filed a false creditor’s claim with the Superior Court of California in Los Angeles, and a fake deed of trust with the Shelby County Register’s Office in Memphis. Findley also allegedly published a fraudulent foreclosure notice in The Commercial Appeal, one of Memphis’s daily newspapers, announcing that Naussany Investments planned to auction Graceland to the highest bidder on May 23. Finally, when Naussany Investments was sued by Elvis Presley’s family in Tennessee state court as part of an effort to stop the sale of Graceland, Findley allegedly submitted false court filings.
After the scheme attracted global media attention, Findley allegedly wrote to representatives of Elvis Presley’s family, the Tennessee state court, and the media to claim falsely that the person responsible for the scheme was a Nigerian identity thief located in Nigeria.
“Fame and money are magnets for criminals who look to capitalize on another person’s celebrity status,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “In this case, Ms. Findley allegedly took advantage of the very public and tragic occurrences in the Presley family as an opportunity to prey on the name and financial status of the heirs to the Graceland estate, attempting to steal what rightfully belongs to the Presley family for her personal gain. Postal Inspectors and their law enforcement partners put an end to her alleged scheme, protecting the Presley family from continued harm and stress. This is an example of our relentless investigative work and commitment to bringing criminals to justice for their illegal activity.”
“Today’s announcement of charges and law enforcement action shows our broad approach to investigating allegations of identity theft and mail fraud, which can affect people from all walks of life,” said Special Agent in Charge Joseph E. Carrico of the FBI Memphis Field Office. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, who would steal an identity and use fraud to benefit themselves personally.”
Findley is charged with mail fraud and aggravated identity theft. If convicted, she faces a mandatory minimum of two years in prison for aggravated identity theft and a maximum penalty of 20 years in prison for mail fraud.
USPIS and the FBI Memphis Field Office are investigating the case with significant assistance from the FBI Kansas City Field Office.
Assistant Chief Cory E. Jacobs and Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll L. André III for the Western District of Tennessee are prosecuting the case, with significant assistance from the U.S. Attorney’s Office for the Western District of Missouri.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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CRM
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Wife of Large-Scale Drug Trafficker Sentenced for Money Laundering ConspiracyRead the Press Release
BOSTON – A California woman was sentenced yesterday in federal court in Boston for her role in a money laundering conspiracy involving proceeds of methamphetamine and marijuana distribution. The defendant laundered over $200,000 of her husband’s drug proceeds.
In total, over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns, and over 4,200 rounds of ammunition were seized during the investigation. A marijuana grow operation with hundreds of marijuana plants was also dismantled.
Christina Lua, 51, of Santa Rosa, Cali., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 12 months and one day in prison followed by one year of supervised release. In April 2024, Lua pleaded guilty to one count of a second superseding indictment charging her with money laundering conspiracy.
Lua was originally charged in a superseding indictment, along with four others, in September 2021 with money laundering conspiracy. The indictment charged a total of 11 defendants in connection with a large-scale drug trafficking conspiracy. In addition to the money laundering conspiracy charged against Lua and four others, the other 10 defendants were also charged with controlled substance and firearm offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020 Lua’s husband Reshat Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to distributors throughout the New England area. Lua assisted Alkayisi in laundering his drug proceeds, including by purchasing vehicles with cash drug proceeds, and by depositing cash drug proceeds in amounts less than $10,000 so as to conceal the nature of the funds and to avoid reporting requirements.
Lua is the third defendant to be sentenced. The remaining eight defendants have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Shawn Jenkins, Interim Commissioner of the Massachusetts Department of Correction made the announcement. Valuable assistance was provided by the Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.
This case 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.
Westland Man Pleads Guilty to Armed Robbery of Albion HydroponicsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Andrew Curtis Williams, 27, of Westland, Michigan pleaded guilty to two separate offenses relating to his role in the February 2020 armed robbery of Albion Hydroponics. Williams is scheduled to be sentenced in the coming months and faces a mandatory minimum sentence of seven years up to a maximum term of life imprisonment.
“This crime was brazen and incredibly dangerous,” said U.S. Attorney Mark Totten. “No business owner or employee should fear violence at work. Accountability for these crimes will be swift and serious.”
According to court documents, Williams pleaded guilty to conspiring to rob Albion Hydroponics on February 10, 2020. Williams also pleaded guilty to the separate offense of brandishing a firearm while committing the robbery. During the robbery, Williams was present while his companion used a firearm to strike the victim of the robbery with a gun. His codefendant, Kyle Lynn Carson, 28, of Jackson, previously pleaded guilty and is awaiting sentencing.
In March 2023, Williams and Carson were indicted for participating in the armed robbery of Albion Hydroponics. The indictment included the following charges:
- Count 1 – Charged Carson and Williams with Conspiracy to Obstruct Interstate Commerce by Robbery. The maximum sentence for this crime is 20 years.
- Count 2 – Charged Williams with Interference with Interstate Commerce by Robbery. The maximum sentence for this crime is 20 years.
- Count 3 – Charged Williams with Brandishing a Firearm in Furtherance of a Crime of Violence. The minimum sentence for this crime is 7 years, to run consecutive to any other sentence for imprisonment. The maximum sentence is life in prison.
Carson pleaded guilty to this offense on September 25, 2023, and admitted that he helped Williams scout the hydroponics store before the robbery, then took custody of a van containing the stolen property and attempted to hide it from police after the robbery.
“During this incident, Williams idly stood by while he and his partner in crime used illegal firearms to beat and intimidate a member of our community with the intent to rob the business,” said ATF Special Agent in Charge James Deir. “Every business owner and their employees deserve to go to work in peace without the threat of gun violence. In the end, Williams’ poor choices have consequences. In short, if you choose to use an illegal firearm to threaten and/or beat members of our community – you should choose to pack a bag because you’ll be going to prison. Our community demands better from its members, and it is safer with both men off the streets.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating this case, and Assistant U.S. Attorney Timothy VerHey is prosecuting it.
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- Count 1 – Charged Carson and Williams with Conspiracy to Obstruct Interstate Commerce by Robbery. The maximum sentence for this crime is 20 years.
West Memphis Man Sentenced to over 16 Years in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
LITTLE ROCK—Cornelius Corwine Sandlin, a multi-convicted felon, will spend 195 months in federal prison for being a felon in possession of a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Wednesday, August 14, 2024, by United States District Judge James M. Moody, Jr.
On February 9, 2024, Sandlin, 46, West Memphis, Arkansas, pleaded guilty to being a felon in possession of a firearm. Judge Moody also sentenced Sandlin to three years supervised release. Sandlin was indicted on February 7, 2023, on one count of being a felon in possession of a firearm.
An investigation by the West Memphis Police Department (WMPD) revealed that on January 20, 2022, WMPD Violent Crime detectives received a tip from a confidential source that Sandlin was trying to sell the confidential source an AR-style rifle from his motel room for approximately $300. The detectives conducted a surveillance operation and observed Sandlin exiting a hotel room clutching an object thought to be a firearm inside his jacket and enter his vehicle. Marked WMPD patrol units conducted a traffic stop on the vehicle in Sandlin’s driveway. Sandlin fled on foot and was able to elude law enforcement at that time.
During a search of the Sandlin’s vehicle, detectives discovered the Hämmerli, model Tac R1 22c .22 caliber, rifle laying in the front passenger seat. The rifle was loaded with 18 rounds of ammunition. Detectives also located a casino players card ID and a pill bottle with Sandlin’s name on them. Through further investigation, Sandlin was located and taken into custody on February 24, 2022. At the time of his arrest, Sandlin was in possession of methamphetamine, cocaine, plastic baggies, a scale, ammunition, and a CB radio.
Sandlin is classified as an armed career criminal offender due to his violent criminal history that includes: robbery, theft of property, aggravated robbery, possession of cocaine, possession of marijuana with purpose to deliver, possession of ecstasy with purpose to deliver, and possession of cocaine with purpose to deliver. Therefore, the maximum penalty Sandlin faced was not less than 15 years and not more than life in prison, no more than five years supervised release, and a fine of $250,000. There is no parole in the federal system.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the West Memphis Police Department and the. The case was prosecuted by Assistant United States Attorney Reese Lancaster.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Watauga Man Sentenced for Assault by Striking, Beating or WoundingRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. Magistrate Judge Mark A. Moreno, U.S. District Court, has sentenced a Watauga, South Dakota man convicted of Assault by Striking, Beating or Wounding. The sentencing took place on August 15, 2024.
Justin James Schneider, age 39, was sentenced to time served, equal to one year in custody, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Schneider was indicted by a federal grand jury in January 2023. A jury found him guilty of Assault by Striking, Beating or Wounding following trial on May 15, 2024.
On October 26, 2022, in McIntosh, South Dakota, within the Standing Rock Sioux Indian Reservation, Schneider was taking out the trash when he saw another man. Schneider believed the other man had wronged him several months earlier. Schneider gestured for the man to join him in a neighbor’s yard. When they met, Schneider accused the man of misconduct, then punched him several times in the face. Schneider walked the man to his wife’s workplace, forced him to apologize for the alleged misdeed, and then punched him once more on the nose, breaking it.
This matter was prosecuted by the U.S. Attorney’s Office because the General Crimes Act, a federal statute, authorizes federal prosecution of certain crimes alleged to have occurred in Indian country.
This case was investigated by the Corson County Sheriff’s Office and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Schneider remains in the custody of the U.S. Marshals Service on separate charges.
Virginia Beach man sentenced for distributing horrific images of child sexual abuseRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to seven years in prison for distribution of Child Sexual Abuse Material (CSAM).
According to court documents, on Oct. 12, 2023, Dustin Roy Harrell, 39, distributed CSAM in a group on an end-to-end encryption messaging app that keeps communications private. Harrell shared a link to a Mega.nz account within the private channel that allowed users to download a video depicting the sexual abuse of a newborn baby.
Law enforcement seized multiple electronic devices, including three cellphones. Forensic examinations of the phones revealed 267 images, 32 computer-generated images, and five videos of CSAM. One device contained conversations in which Harrell discussed topics of child pornography and incest. Harrell engaged in online groups named “Cute Teens 16-19,” “Uncensored Teens,” Family Maza Incst,” and more.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorney Matthew Heck prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-19.
Update on Deputy Attorney General Lisa Monaco’s Justice AI ConveningsRead the Press Release
This week, Deputy Attorney General (Deputy AG) Lisa Monaco hosted the sixth convening of the Justice AI Initiative, which she launched earlier this year to inform the Justice Department’s AI policy, including how AI will impact the Department’s mission to uphold the rule of law, keep the nation safe, and protect civil rights. Justice AI brings together stakeholders across civil society, industry, academia, and law enforcement to share expertise and a wide range of perspectives on both the promise of AI and the perils of its misuse.
The Deputy AG welcomed organizations and advocates focused on privacy and consumer protection to the Justice Department to discuss opportunities for AI to advance the Department’s mission to protect the rights of consumers, while also addressing AI’s potential to magnify and accelerate risks to privacy and consumer rights as well as the Department’s obligation to ensure appropriate guardrails around use of AI. The conversation covered a range of topics, including algorithmic discrimination, the use of AI to target vulnerable populations, concerns about bulk data collection, and biometric privacy.
Earlier this summer, the Deputy AG convened an international meeting of the Justice AI Initiative with Member of the European Parliament (MEP) Eva Maydell and other leaders from the European Parliament. In addition to discussing how AI is changing the way crimes are committed, the Deputy AG and the MEPs discussed the threat posed by malign nation-state actors using AI to undermine elections across the globe this year. The Deputy AG underscored that the Justice Department will remain vigilant to foreign adversaries abusing AI to accelerate online hate and disinformation, imitate trusted sources of information, and proliferate deepfakes.
The Deputy AG and the Department’s Criminal Division also recently convened compliance executives to hear how companies are using AI and how compliance departments are addressing its risks. This discussion will inform updates to the Criminal Division’s Evaluation of Corporate Compliance Programs.
All the Justice AI convenings inform the Department of Justice’s work as part of Executive Order 14110 on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. You can read about previous Justice AI convenings here.
U.S. Department of Justice Awards $1.4 Million in Grants to City of SyracuseRead the Press Release
SYRACUSE, NEW YORK – The City of Syracuse has been awarded two grants totaling $1.4 million dollars through the U.S. Department of Justice Byrne Discretionary Community Project Grants program to enhance neighborhood street cameras, and to expand programs run by the Syracuse Police Athletic/Activities League, announced Carla Freedman, United States Attorney for the Northern District of New York.
“I could not be happier that the Department of Justice has awarded these grants to the City of Syracuse to support and expand the Police Athletic/Activities League (PAL), and to enhance the already successful COPS cameras program. The Syracuse PAL engages kids in healthy programming and sports and builds positive relationships with law enforcement officers who volunteer their time. The COPS cameras make neighborhoods safer and are an asset to the Syracuse Police in preventing and combatting crime. These two grants fund the kind of twenty-first century public safety that supports kids in activities that keep them away from crime and gangs, and provides police with the tools they need to keep neighborhoods safe.”
Syracuse Police Chief Joseph Cecile said, "Cops Cameras are the number one technology requested by both Syracuse residents and Syracuse Police Officers, and for good reason. They have been instrumental in both prevention and apprehension of all crimes, ranging from homicides to stolen vehicles. I would like to thank the United States Department of Justice for this generous award, and also for their continued partnership with the Syracuse Police Department and the Syracuse community."
Jimmy Oliver, Syracuse Director for Community Engagement (Police Athletic/Activities League), said, “We are very excited about this funding coming to Syracuse PAL so that we can connect Teens, Cops, and Communities. We want to thank Senators Schumer and Gillibrand for sowing this seed into our mission, and vision. This will impact teens, and law enforcement in Syracuse, and Onondaga county. We will continue to build positive, and intentional relationships with law enforcement and our teenagers.”
The project description for the $415,000 awarded to the Syracuse Police Athletic/Activities League says that the funds will be used to support programs for youths 14 to 19 years of age aimed at keeping, “kids safe and help put them on a path to success” through programs like “sports and other activities, and [to] create a sense of belonging, purpose, and pride.” The creation of the Syracuse Police Athletic/Activities League was announced in June 2021.
The project description for the $1 million awarded to City of Syracuse for neighborhood street cameras (known as COPS cameras) says they are “essential tools for public safety” and aid “in response to emergencies,” “play a key role in criminal investigations,” and have been “the top requested technology by the citizens of Syracuse for over a decade.”
The Edward Byrne Memorial Justice Assistance Grant (JAG) program is a U.S. Department of Justice formula grant program. The JAG program allocates funds to the 50 states, the District of Columbia, Puerto Rico, Guam, the Virgin Islands, America Samoa, and the Northern Mariana Islands for a variety of state and local criminal justice initiatives. The program is administered by the Bureau of Justice Assistance (BJA).
U.S. Attorney’s Office and ATF Announce Federal Charges in Santa Fe Shooting and Carjacking CaseRead the Press Release
ALBUQUERQUE – The United States Attorney's Office has filed federal charges against Zachary Babitz in connection with a fatal shooting and carjacking that occurred on August 6, 2024, in Santa Fe, New Mexico. The charges include carjacking and discharging a firearm in furtherance of a crime of violence.
Babitz, 38, appeared before a federal judge today and will remain in custody pending a detention hearing which is scheduled for August 20, 2024.
According to the criminal complaint, on the morning of August 6, Santa Fe Police Department (SFPD) officers responded to a call reporting a shooting in the parking lot of Best Buy, located at 3533 Zafarano Dr. Upon arrival, officers found a male victim with a gunshot wound to the chest. Despite life-saving efforts by medics, the victim was pronounced dead at the scene.
Witnesses provided cellphone videos and photographs of the incident, while surveillance footage from nearby businesses, including Famous Footwear and Panera Bread, captured the suspect, later identified as Babitz, approaching the victim and engaging in a physical altercation before the shooting. Babitz was seen leaving the scene in the victim's Jeep Grand Cherokee, which was later reported stolen.
Further investigation revealed that Babitz had absconded from probation and was identified by the Adult Probation and Parole Office as the individual in the photos disseminated to the public. According to APPO, on August 1, 2024, Babitz cut his electronic monitoring device off and left a note for law enforcement on the door of his residence in Edgewood, New Mexico. The note stated, “To Law Enforcement this needs to be very clear. My wife had absolutely no clue as to what I planned or am about to do. These were my decisions, and I hid them from her signed this day 8-1-24 10:55am Zachary Babitz.”
On August 10, 2024, Babitz was apprehended in Las Cruces, New Mexico, where a 9mm firearm was recovered. Testing is underway to determine if this weapon was used in the Santa Fe incident.
Babitz has a history of felony convictions, including armed robbery and carjacking, and was released from prison in March 2024.
The investigation is ongoing.
If convicted of the current charges, Babitz faces any term of years and up to life in prison.
U.S. Attorney Alexander M.M. Uballez and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Santa Fe Police Department, Albuquerque Police Department and Las Cruces Police Department. Assistant United States Attorney Letitia Carroll Simms is prosecuting the case.
View the Criminal ComplaintA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney’s Office Reaches Agreement with Hackensack Meridian Health to Ensure it Permits Service Animals at Medical AppointmentsRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office has reached an agreement with Hackensack Meridian Health (HMH) to resolve allegations that HMH violated the Americans with Disability Act (ADA) by prohibiting individuals with disabilities from bringing service animals to medical appointments, U.S. Attorney Philip R. Sellinger announced.
During its investigation, the U.S. Attorney’s Office determined that HMH violated the ADA by refusing to allow a service animal into a medical office. The matter stems from a complaint alleging that Dr. Abigail Whetstone’s office, part of HMH, did not permit an individual with a disability using a service animal to bring the service animal into the office for an appointment.
Under the ADA, places of public accommodation must make reasonable modifications to policies and practices to permit persons with disabilities who require service animals to use service animals while participating in its services. Places of public accommodation also cannot require individuals using service animals to produce documents or tags verifying that the animal is a service animal.
HMH has agreed to make reasonable modifications to its policies, practices, and procedures to permit the use of service animals by persons with disabilities, to ensure that all employees working at Whetstone’s office have a hard copy of HMH’s service animal policy, and to ensure that all employees working at Whetstone’s office receive training on Title III’s service animal compliance. HMH will also pay damages to the complainant.
Individuals who believe they may have been victims of discrimination may call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 and/or file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Kelly Horan Florio, Senior Civil Rights Counsel in the U.S. Attorney’s Office’s Civil Rights Division.
U.S. Attorney’s Office Obtains Settlement of Fair Housing Act Case Compensating Discrimination Victim Threatened with Eviction for Maintaining Support AnimalsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the entry today of a Consent Decree with the RUTHERFORD TENANTS CORP. (“RUTHERFORD”) resolving the United States’ lawsuit against RUTHERFORD and its former Board President James Ramadei under the Fair Housing Act (“FHA”). The lawsuit alleged that RUTHERFORD discriminated against a shareholder (the “Complainant”) in its co-operative building by refusing to permit her to live with emotional support animals to accommodate her disability and by retaliating against the Complainant when she filed a Complaint with the U.S. Department of Housing and Urban Development (“HUD”). U.S. District Judge Jennifer H. Rearden approved the Consent Decree on August 16, 2024.
U.S. Attorney Damian Williams said: “This is the largest recovery the Department of Justice has ever obtained for a person with disabilities whose housing provider denied them their right to have an assistance animal. This outcome should prompt all housing providers to consider carefully whether their policies and procedures comply with federal law. We greatly appreciate our partners at HUD who provided invaluable assistance in the investigation and resolution of this matter.”
According to documents filed by the Government in federal court:
The Rutherford is a residential cooperative apartment building that contains 175 units and is located at 230 East 15th Street in New York, New York. Defendant RUTHERFORD is the shareholder cooperative association. The Complainant moved into the building in 1999. At the time, RUTHERFORD did not have a reasonable accommodation policy of any kind, whether for people with disabilities generally or for assistance animals specifically.
The Complainant maintained parrots in her home as emotional support animals to assist her with her disabilities and did so without incident until March 2015, when one of her neighbors began complaining about alleged noise. In response, the New York City Department of Environmental Protection (“DEP”) visited the building and/or the Complainant’s apartment on 15 occasions over the course of a year and conducted inspections of these noise complaints. DEP issued zero notices of noise violations. RUTHERFORD never conducted any decibel testing or other objective evaluation of the alleged noise complaints. Similarly, RUTHERFORD never retained the services of a noise prevention consultant, architect, engineer, or anyone with qualifications or experience in soundproofing to address the neighbor’s complaints.
In March 2016, the Complainant asked RUTHERFORD to allow her to maintain her parrots as support animals as a reasonable accommodation under the FHA, supporting her request with a letter from her treating psychiatrist.
The FHA makes it unlawful to discriminate in the terms and conditions of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter’s disability. The FHA also mandates that reasonable accommodations in rules, policies, practices, and services be provided when necessary to afford equal housing opportunities to persons with disabilities. The assistance animals that must be allowed in private dwellings under the FHA are different from those that must be allowed in places of public accommodation under the Americans with Disabilities Act, which is limited to dogs and miniature horses. Under the FHA and its applicable regulations, persons with disabilities may maintain in their homes a wide array of animals as support animals, provided the animal does not pose a direct threat to the health or safety of others, and does not physically damage the property.
Despite being aware that the Complainant was a person with a disability who needed the parrots as support animals, RUTHERFORD commenced eviction proceedings against the Complainant in May 2016. The Complainant began to suffer severe emotional harm because of the eviction proceedings and left her apartment in July 2016. Despite the fact that the Complainant left the building in 2016, RUTHERFORD continued to maintain the eviction proceeding against her well into 2024.
In May 2018, the Complainant filed a Complaint with HUD, alleging that the eviction proceeding interfered with her fair housing rights. While HUD was investigating the Complaint, the Complainant obtained an offer to purchase the shares appurtenant to her unit for $467,500, but RUTHERFORD rejected the application from the proposed purchaser, thereby prolonging the dispute and, as alleged by the Government, engaging in retaliation against the Complainant for asserting her rights.
HUD completed its investigation and, in January 2021, found probable cause to believe that RUTHERFORD violated the FHA, at which juncture the parties had the opportunity to settle the matter, or, failing that, either the Complainant or RUTHERFORD could elect to proceed to federal court with the dispute. RUTHERFORD chose to proceed to federal court, thereby triggering the statutory requirement that the Department of Justice file suit against it to resolve the matter in federal court.
Under the consent decree approved by Judge Rearden, RUTHERFORD must:
• Pay the Complainant $165,000 in damages, upon receipt of a release from the Complainant;
• Offer $585,000 to purchase the Complainant’s shares in the co-operative at a time when similarly situated units in the building are valued at approximately $500,000;
• In the event that the closing of the sale of the Complainant’s unit does not occur, provide the Complainant with additional accommodations, including a right to sublet the unit for 10 years;
• Adopt a reasonable accommodation policy regarding requests for assistance animals;
• Comply with certain notice, training, and recordkeeping requirements to ensure that its
agents and officers are knowledgeable about and comply with the requirements of the FHA;
• Allow the U.S. to monitor compliance with the Consent Decree;
• Dismiss the eviction proceedings against the Complainant in Housing Court.
This is the tenth case brought in recent years by the Southern District of New York to vindicate the rights of tenants and co-operative shareholders to maintain support animals in their homes, and the tenth case to end with an agreement compensating the victims of the alleged discriminatory acts and requiring the adoption of reasonable accommodation policies to protect future residents and co-operative shareholders from discrimination. The monetary recovery for the Complainant in this case, above and beyond the value of her shares, is the largest recovery by the Government for a victim of housing discrimination denied the right to an assistance animal.
Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, by email to [email protected], or may contact the Department of Housing and Urban Development at 1-800-669-9777 or www.hud.gov.
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorney David J. Kennedy is in charge of the case.
U.S. Attorney Warns of Increasing Threat from Machinegun Conversion Devices as Jackson Man is Sentenced to Two Years in Prison for Possessing a Machinegun and Another Jackson Man Pleads GuiltyRead the Press Release
Jackson, Miss. – The U.S. Attorney’s Office for the Southern District of Mississippi warned of the increasing threat from machinegun conversion devices, also known as “switches,” as a Jackson man was sentenced to two years in prison for illegal possession of a machinegun conversation device and another Jackson man pled guilty to that offense.
According to court documents, on Friday, February 9, 2024, Kylin Demond Russell, 22, led Capitol Police officers on a high-speed chase, reaching speeds of up to 120 mph, after failing to yield for a traffic stop. When his vehicle ultimately came to a stop, he attempted to flee on foot, was detained, and two Glock pistols with attached MCDs were found in the vehicle. Capitol Police contacted the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The vehicle driven by Russell appears to match the description of a vehicle seen in a video, taken by a citizen in Jackson and widely distributed on-line, showing a person firing a weapon from the vehicle.
Russell was indicted by a federal grand jury on February 21, 2024, and pled guilty on May 2, 2024, to possession of a machinegun. Russell was sentenced on August 9, 2024, to two years in prison. He will not be eligible for parole because there is no parole in the federal system.
In a separate case, Javarius McDonald, of Jackson, pled guilty to illegal possession of a machinegun conversion device, also known as a switch, that was attached to his Glock pistol. According to court documents, on December 4, 2023, McDonald, 19, was stopped by Ridgeland Police for a window tint violation because the windows in the vehicle he was driving appeared too tinted under state law. Officers smelled marijuana while speaking with McDonald and performed a probable cause search of the vehicle. Officers recovered a Glock with an attached machinegun conversion device underneath the driver’s seat.
McDonald is scheduled to be sentenced on November 27, 2024, and faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“I cannot emphasize enough how dangerous ‘switches’ and other devices are that make a semi-automatic gun a fully automatic machinegun,” said U.S. Attorney Todd Gee. “They can be readily purchased on-line or printed with 3D printers, and they lead to more carnage on the streets, including a higher likelihood of bystanders being hit by gunfire. Machinegun conversion devices are illegal under federal law and Mississippi state law, and seizures of these devices have gone up exponentially across the nation in the last several years. The Department of Justice and our state and local partners are extremely focused on taking persons off the street who possess and use machinegun conversion devices.”
The U.S. Attorney’s Office has seen an increase in cases involving illegal firearm conversion devices, commonly known as “switches” or “auto sears,” which convert semi-automatic handguns into fully automatic weapons (i.e., machineguns) in a matter of seconds. The rapid fire of firearms converted to machineguns presents a significant danger in our community to both the public and law enforcement. An individual found in possession of a Glock or auto-sear switch will face up to ten years in prison and a $250,000 fine under federal law.
According to a 2023 report by the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), there was a 570% increase in the number of machinegun conversion devices taken into ATF custody between 2017 and 2021.
“The illegal possession of handgun conversion devices is a significant threat to our communities,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “The sentence imposed and guilty plea in these cases sends a message to anyone who possesses a switch that we will continue to focus efforts on prohibited individuals who unlawfully possess these devices, remove another violent criminal from our streets, and keep our neighborhoods safe as the top priority for ATF.”
"I am extremely proud of the efforts being made at the local, state, and federal levels to address the issue of 'switches' on firearms,” said Commissioner Sean Tindell of the Mississippi Department of Public Safety. “These devices pose a serious threat to public safety, and it's our responsibility to ensure they are removed from our streets and that those responsible are prosecuted. By working together, we can enhance the safety of our state and communities and hold accountable those who endanger them."
U.S. Attorney Todd W. Gee, Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Commissioner Sean Tindell of the Mississippi Department of Public Safety made the announcement.
The ATF and the Capitol Police investigated the Russell case. The ATF and the Ridgeland Police Department investigated the McDonald case. Assistant U.S. Attorney Matt Allen prosecuted both cases.
The Russell case is the result of Operation Unified and Project Safe Neighborhoods (PSN), both of which are coordinated efforts between state, local, and federal law enforcement agencies. Agencies participating in Operation Unified include the Mississippi Department of Public Safety’s Bureau of Narcotics, Capitol Police and Office of Homeland Security; the Jackson Police Department; the Hinds County District Attorney and Hinds County Sheriff’s Office; the Mississippi Department of Corrections; and the FBI, DEA, and ATF, as well as the U.S. Attorney’s Office.
The McDonald case is a result of the PSN program. The PSN Program is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Two Texas Men Indicted, Arrested for Dealing Firearms Without a LicenseRead the Press Release
SAN ANTONIO – A federal grand jury in San Antonio returned indictments charging two Texas men with offenses related to the unlawful dealing of firearms.
According to court documents, Ronin Michael Rhoades, 24, of Georgetown, and Tristan James Banda, 42, of Pflugerville, were both allegedly engaged in the business of dealing in firearms, despite not being licensed firearms dealers.
Additionally, Rhoades allegedly conspired to traffic and straw purchase a variety of firearms, including AR- and AK-style rifles, FN SCAR rifles, pistols, and a .50 caliber rifle.
Rhoades was arrested Aug. 1 and is charged with one count of conspiracy to traffic firearms, one count of conspiracy to straw purchase firearms, and one count of dealing in firearms without a license. If convicted, he faces up to 15 years in prison for the firearms trafficking charge, up to 25 years imprisonment for the straw purchasing charge, and up to five years for dealing firearms without a license.
Banda was arrested Aug. 14 and is charged with one count of dealing in firearms without a license. If convicted, he faces up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the cases.
Assistant U.S. Attorney William Calve is prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two More Defendants Plead Guilty in Conspiracy Targeting Credit UnionsRead the Press Release
ALBANY, NEW YORK – Lesley Lucchese, age 54, and Danielle Cappetti, age 45, both of New York City, have pled guilty in connection with their roles in a bank fraud conspiracy that targeted credit unions all over the country since at least December 2021. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of their pleas, Lucchese and Cappetti each admitted that between at least December 2021 and April 2023, they fraudulently withdrew funds from credit unions while acting as runners for a nationwide bank fraud conspiracy that targeted credit unions insured by the National Credit Union Share Insurance Fund. Many of the credit unions were members of a shared branching network, which allowed customers of member credit unions to withdraw funds from their accounts at other member credit unions by presenting an identification with their photograph, their account number, and the last four digits of their Social Security number. The network allowed customers of localized credit unions easier access to their accounts when traveling throughout the country. The conspirators exploited this network by creating fake identifications in the names of real credit union customers, but with photographs of other individuals, including Lucchese and Cappetti, who conducted fraudulent transactions at shared branch member credit unions all over the country in exchange for drugs or a small portion of the stolen funds. In total, Lucchese and Cappetti fraudulently obtained nearly $500,000 from credit unions, the vast majority of which went to supervisors in the conspiracy.
Lucchese pled guilty today to conspiracy to commit bank fraud and Cappetti pled guilty to the same offense on August 5, 2024. Cappetti, who is from the Bronx, is scheduled to be sentenced on December 5, 2024. Lucchese, of Manhattan, is scheduled to be sentenced on December 17, 2024.
Both defendants face up to 30 years in prison, a term of supervised release of up to 5 years, and a fine of up to $1 million. Both defendants will be ordered to pay restitution to victims of their offenses, and Lucchese agreed to forfeit $9,512.67 in U.S. currency seized by the Escambia County and Okaloosa County Sheriff’s Offices in Florida in October 2022 when Lucchese was arrested with co-defendants David Daniyan and Akeem Balogun after traveling there to conduct fraudulent withdrawals.
The pleas of Lucchese and Cappetti resolve the charges against them in a federal indictment returned last December, allegedly involves more than $1 million in total losses. Five defendants have now pled guilty in connection with the indictment.
The following defendants are also charged in the indictment:
- Oluwaseun Adekoya, age 38, of New Jersey, is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft;
- David Daniyan, age 59, of Brooklyn, New York, is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Akeem Balogun, age 53, of Brooklyn, is charged with conspiracy to commit bank fraud;
- Gaysha Kennedy, age 45, of Brooklyn, previously pled guilty to one count of conspiracy to commit bank fraud;
- Victor Barriera, age 63, of the Bronx, previously pled guilty to conspiracy to commit bank fraud; and
- Jerjuan Joyner, age 49, of Brooklyn, previously pled guilty to conspiracy to commit bank fraud.
As to the defendants who have not pled guilty, the charges in the indictment are merely accusations. These defendants are presumed innocent unless and until proven guilty.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York and Newark, and Resident Agencies in Westchester, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General, the New York State Police; Cohoes Police Department; Colonie Police Department; Elmira Police Department; Corning Police Department; Plattsburgh Police Department; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; law enforcement agencies in New Hampshire, including the Rochester Police Department, Manchester Police Department, Amherst Police Department; the Norwich, CT Police Department; law enforcement agencies in Massachusetts, including the Springfield, MA Police Department; the Pennsylvania State Police; the Delaware State Police; and law enforcement agencies in Maryland, including the Harford County Sheriff’s Office and Baltimore County Sheriff’s Office.
Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Two Men Sentenced for Conspiracy to Illegally Acquire Codeine and Identity TheftRead the Press Release
LEXINGTON, Ky. – Richard Rogers Jr., 33, and Chad Wolf, 27, were sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves, to 44 months and 39 months, respectively, for conspiracy to acquire and possess codeine and aggravated identity theft. Rogers and Wolf were also each ordered to forfeit $57,336 – the amount of their illegal codeine resale profits.
According to their plea agreements, Rogers and Wolf conspired, over multiple years, in submitting numerous fraudulent prescriptions for Promethazine-Codeine syrup, which were sent to pharmacies in various Kentucky locations. Neither Rogers nor Wolf had valid prescriptions for codeine cough syrup in their own name. Instead, Rogers and Wolf acquired identity information from unsuspecting individuals – often in the form of driver’s licenses. Rogers and Wolf also acquired DEA numbers of medical providers from others, including from physicians in Michigan and Kentucky, without the physicians’ authorization or consent. They used this information to create fraudulent prescriptions for codeine cough syrup and organized others to retrieve the prescriptions as they were filled.
Under federal law, Rogers and Wolf must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for one year.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentences.
The investigation was conducted by the FBI and DEA. Assistant U.S. Attorney Will Moynahan prosecuted the case on behalf of the United States.
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Two Defendants Sentenced for “Horrific” Fraud Scheme That “Preyed Upon” Elderly VictimsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that two defendants were sentenced to federal prison for their roles in an international fraud conspiracy that stole over $11 million from mostly senior citizens in multiple states. A victim in West Michigan lost $398,000 to the conspiracy. Jayesh J. Panchal, 55, of Hicksville, New York, was sentenced to serve 78 months in federal prison and ordered to pay $7,930,287 in restitution to 40 victims of the conspiracy. Vijaya C. Shetty, 53, of Flushing, New York, was sentenced to 63 months in federal prison and ordered to pay $596,800 in restitution to victims. Shetty pleaded guilty in February 2024 and Panchal pleaded guilty in April 2024. U.S. District Judge Jane M. Beckering, who imposed the sentence, said Panchal and Shetty were involved in a “horrific” fraud scheme that “preyed upon some of our most vulnerable citizens, the elderly.” She noted that many of the victims “worked, saved, and scrimped their whole lives and now have little or nothing to live on.”
“We teamed up with multiple law enforcement partners to pinpoint and punish these fraudsters who preyed on vulnerable elderly victims, and we’ll continue to aggressively chase these criminals wherever they strike,” said U.S. Attorney Totten. “Raising awareness of elder fraud is critical to help protect our older loved ones from losing their life savings to these types of crimes. My office is committed to fighting all types of elder abuse in our community.”
Information on other co-defendants who have been sentenced can be found here and here. Co-defendant Everette Thibou pleaded guilty and is scheduled to be sentenced on October 31.
The fraud scheme began when victims received a pop-up message on their computers warning that a virus had infected their devices. The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such as Microsoft or Apple. In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses.
In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all their cash and give it to fake “federal agents” for safekeeping. In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support. In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names. Regardless of which ruse was used, the result was the same: victims were convinced to give $11 million money to the scammers. Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.
Panchal and one of his co-defendants, McKhaela McNamara, made six trips to meet with a victim in Lake County, Michigan, to collect $398,000 in fraud proceeds from her. The victim had been convinced that her bank accounts had been compromised and that she was giving cash to “federal agents” for safekeeping. It is alleged that a different co-defendant helped arranged the meetings with the Lake County victim.
Panchal and Shetty travelled throughout the United States at the direction of the leaders of the conspiracy in India to collect millions of dollars in cash from the victims. They also laundered fraud proceeds by depositing cash into various bank accounts.
“Fraudsters are targeting our senior community at an alarming rate nationwide. Criminals continue to take advantage of their trusting nature and generosity,” said Cheyvoryea Gibson, Special Agent in Charge for the FBI in Michigan. “We must empower our seniors with knowledge about elder fraud and its various forms to protect them from this intolerable manipulation. If you or someone you know has been a victim of elder fraud, we ask that you report it immediately to the National Elder Fraud Hotline or file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov. We will not allow these criminals to continue exploiting our seniors.”
The FBI Detroit, Grand Rapids Resident Agency, Homeland Security Investigations, New Orleans, Louisiana, and the Lake County, Michigan, Sheriff’s Office investigated the case, and Assistant United States Attorney Clay Stiffler prosecuted it.
For more information on preventing elder fraud and help for victims, visit the Department of Justice’s Elder Justice Initiative website, which includes a list of Michigan-specific resources. The FBI Elder Fraud website also provides several resources, including the following tips to help seniors protect themselves:
- Recognize scam attempts and end all communication with the perpetrator.
- Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
- Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
- Be cautious of unsolicited phone calls, text messages, mailings, and door-to-door services offers.
- Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
- Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
- Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
- Be careful what you download. Never open an email attachment from someone you don't know and be wary of email attachments forwarded to you.
- Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts and monitor your accounts and personal information for suspicious activity.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
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Two Cedar Rapids Fentanyl Dealers Sentenced to Federal PrisonRead the Press Release
Two Cedar Rapids men that distributed hundreds of pills containing fentanyl were recently sentenced to federal prison.
Henry Sorrell Barnes, Jr., age 35, from Cedar Rapids, Iowa, received the prison term after a March 12, 2024 guilty plea to one count of conspiracy to distribute a controlled substance.
Noah Christopher Ward, age 25, from Cedar Rapids, Iowa, received the prison term after a March 13, 2024 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence disclosed at prior hearings and their respective sentencings showed that between January 2023 and September 27, 2023, Barnes distributed at least 4,000 pills containing fentanyl in Cedar Rapids. Between May 2023, and late October 2023, Ward obtained at least 815 pills containing fentanyl from different sources, including Barnes, and Ward distributed many of the pills that he obtained. On two occasions, Ward sold Barnes a firearm in exchange for pills containing fentanyl.
On August 13, 2024, Barnes was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Barnes was sentenced to 78 months’ imprisonment, and he must also serve a five‑year term of supervised release after the prison term.
On August 7, 2024, Ward was sentenced in Cedar Rapids by United States District Court Chief Judge Williams. Ward was sentenced to 39 months’ imprisonment, and he must also serve a four‑year term of supervised release after the prison term.
There is no parole in the federal system.
Barnes and Ward are being held in the United States Marshal’s custody until they can be transported to a federal prison.
These cases were prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Johnson County Drug Task Force, consisting of the Johnson County Sherriff’s Office, the Iowa City Police Department, the Coralville Police Department, the North Liberty Police Department, the University of Iowa Police Department, and the Iowa Division of Narcotics Enforcement; the Cedar Rapids Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the United States Parcel Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 23‑CR‑70 and 23‑CR‑77.
Follow us on Twitter @USAO_NDIA.
Trafficking illegal machine guns and silencers sends Pasadena man to prisonRead the Press Release
HOUSTON – A 28-year-old man has been sentenced for the unlicensed sale of firearms and possession of a machine gun, announced U.S. Attorney Alamdar S. Hamdani.
Austin Shofner pleaded guilty May 23, admitting he sold multiple privately manufactured firearms and machine gun conversion devices (MCDs).
U.S. District Judge Ewing Werlein Jr. has now ordered Shofner to serve a 120-month-term of imprisonment for the possession and transfer of a machine gun charge and 60 months for unlicensed firearms sales which will be served concurrently. The total 10-year prison term will be immediately followed by three years of supervised release. Shofner was further ordered to pay restitution in the amount of $2,000. In handing down the sentence, the court noted this sentence reflects the need for deterrence due to the nature of the offense and Shofner’s criminal history.
“Austin Shofner wanted to build his illegal gun manufacturing business, supplying deadly machine guns, devices that converted handguns into machine guns, automatic rifles and silencers to anyone who would pay,” said Hamdani. “He had big dreams until he ran into an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Entrepreneurs are an important part of America’s fabric, but not Austin Shofner’s kind. Instead of counting his profits, Shofner will be counting down days, the thousands of days he will spend in a federal prison.”
“Engaging in the business of firearms sales without proper licensing is a violation of law that the ATF will continue to investigate aggressively,” said Special Agent in Charge Michael Weddel of the ATF. “MCDs pose a grave risk to law enforcement and the general public. We are committed to fighting against the dangers that they pose.”
Beginning in January, Shofner sold several privately manufactured firearms with no mark or serial number, commonly known as “ghost guns.” He also sold machine gun conversion devices aka switches and firearm silencers at various locations in the Houston metropolitan area to undercover authorities via Instagram.
During one transaction, Shofner described a silencer he was selling as “illegal as [expletive].”
Additionally, Shofner had stated that selling firearms and switches was his primary source of income and detailed his plans to expand his firearm manufacturing operation.
On March 7, authorities executed a search warrant at Shofner’s residence in Pasadena where they found a Glock pistol, a pistol frame, an assault-style pistol and a suppressor. As part of the overall investigation, law enforcement also seized five MCDs, two silencers and five ghost guns which included a machine gun and a short-barreled rifle.
About an inch long, switches may be made of metal or plastic and printed on commercially available 3D printers. They generally slide into the butt of a gun and allow the shooter to fully automatically fire, unloading dozens of rounds with a single pull of the trigger. In contrast, regular semi-automatic firearms require a separate trigger pull for each round fired.
Shofner will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant U.S. Attorney Byron H. Black prosecuted the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Swain County Man Pleads Guilty to Cold Case Murder in Indian CountryRead the Press Release
ASHEVILLE, N.C. – Ernest D. Pheasant, Sr., 47, an enrolled member of the Eastern Band of Cherokee Indians (EBCI), pleaded guilty today to first-degree murder in Indian Country, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Pheasant entered his guilty plea before U.S. Magistrate Judge W. Carleton Metcalf.
According to court filings and facts presented at the plea hearing, on December 29, 2013, the body of Marie Walkingstick Pheasant was discovered inside a burned-out vehicle parked near Big Cove Road within the Qualla Boundary in the Western District of North Carolina. Investigators determined that the vehicle had been intentionally set on fire. An autopsy revealed that Marie died from stab wounds to the neck and abdomen. DNA retrieved from a baseball cap found near the vehicle was linked to the defendant, who was Marie’s estranged husband. During the investigation, law enforcement determined that Pheasant killed Marie at their home, then transferred her body to the car, drove it to Big Cove Road, and set it on fire. By today’s guilty plea, Pheasant admitted to murdering Marie willfully, deliberately, maliciously, and with premeditation.
On April 7, 2022, following a review of unsolved homicides in the region, the Bureau of Indian Affairs’ Missing and Murdered Unit (MMU) opened a full interagency investigation into the case. Today’s guilty plea is the result of the joint investigation conducted by the MMU, the FBI in North Carolina, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Cherokee Indian Police Department, and the EBCI Office of the Tribal Prosecutor.
Pheasant remains in federal custody. At sentencing, Pheasant faces a statutorily required sentence of life in prison. A sentencing date has not been set.
Assistant United States Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina continue to prioritize the investigation and prosecution of cases involving Missing or Murdered Indigenous Persons (MMIP) and bringing justice to victims and their families. For more information about the Justice Department’s efforts to address the MMIP crisis, please visit the MMIP section of the Tribal Safety and Justice website at: https://www.justice.gov/tribal/mmip.
Southern Oregon Restaurant Sentenced in Federal Court for Stealing Covid Relief Program FundsRead the Press Release
PORTLAND, Ore.—A southern Oregon restaurant was sentenced in federal court today for stealing more than $759,000 in federal funds intended to help small businesses during the Covid-19 pandemic.
Amigos Mexican Cuisine & Cantina LLC, formerly located outside of Medford, Oregon, was sentenced to pay a criminal fine of $200,000 and $759,100 in restitution to the U.S. Small Business Administration (SBA).
In a separate civil proceeding, Amigos was ordered to pay $1.6 million to settle a related False Claims Act allegation.
According to court documents, in a 13-month period beginning in April 2020, Amigos submitted five fraudulent loan applications to steal more than $759,000 from three Covid-19 pandemic relief programs: the Paycheck Protection Program, Economic Injury Disaster Loan program, and the Restaurant Revitalization Fund. Amigos made numerous false statements on these applications, including claiming its owners did not own other businesses, providing inaccurate company financials, and falsely attesting that the company was not engaged in any illegal activity. The company further falsely claimed on a loan forgiveness application that it had used the funds received for payroll. In reality, each time the company received a disbursement of federal funds, its owners would transfer the money to their personal bank accounts for use on various personal expenses.
On April 29, 2024, Amigos pleaded guilty to a one-count criminal information charging the company with stealing public money.
This case was investigated by the SBA Office of Inspector General and U.S. Postal Inspection Service. It was prosecuted by Meredith Bateman, Assistant U.S. Attorney for the District of Oregon. Assistant U.S. Attorney Alexis Lien represented the United States in Amigos’ False Claims Act proceeding.
Rochester man sentenced for his roles in illegal sports betting ringRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that James Civiletti, 33, of Rochester, NY, who was convicted of conspiracy to transmit wagering information in interstate commerce and conduct an illegal gambling business, was sentenced to serve one year probation by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Meghan K. McGuire and Melissa M. Marangola, who handled the case, stated that between April 25, 2019, and April 17, 2021, Civiletti conspired with Louis Ferrari, II, Dominic Sprague, Anthony Amato, Tomasso Sessa, Joseph Lombardo, Jeffrey Boscarino, and others, to finance, manage, and own all or part of an illegal bookmaking business, which had a gross daily revenue of approximately $2,000.00. Ferrari, Sprague, Boscarino, and Lombardo collected gambling winnings from individual bettors and paid gambling losses to individual bettors in cash and through online payment applications, including CashApp, PayPal, Venmo, and Zelle. After Sprague, Boscarino, and Lombardo collected gambling winnings from individual bettors, they kept a portion of those winnings and paid the remainder to Ferrari. Civiletti and Sessa also collected gambling winnings from and paid gambling losses to individual bettors in cash and through online payment applications, including CashApp, PayPal, Venmo, and Zelle. After Civiletti and Sessa collected gambling winnings from individual bettors, they paid the winnings to Sprague and Ferrari.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Miklos Szoczei II, the Greece Police Department, under the direction of Chief Michael Wood, and the Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office.
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Richland Sex Offender Sentenced to 15 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Gerald Alan Nott, age 63, of Richland, Washington, was sentenced after pleading guilty to one count of Receipt of Child Pornography. United States District Judge Mary K. Dimke imposed a sentence of 180 months (15 years) imprisonment to be followed by a lifetime term of supervised release.
According to court documents and information presented at the sentencing hearing, between December of 2022 and March of 2023, a Southeast Regional Internet Crimes Against Children (SER-ICAC) detective developed information that Nott, who is a registered sex offender, was using the internet at his parent’s home in Richland, Washington to distribute child pornography. The more than 1600 image and video files depicted young children, including those approximately one to four years old, being sexually abused.
On March 16, 2023, detectives executed a search warrant at the home where Nott had accessed the internet. Nott told officers that he thought police might be coming to talk to him, so he attempted to delete the files containing child pornography from his tablet. Nott also admitted to hiding the tablet behind a cabinet. That same day, SER-ICAC officers executed a search warrant at Nott’s residence in Richland and seized a second tablet. A certified forensic examiner with SER-ICAC examined both tablets and located more than 100 video and image files of child pornography.
“This sentence sends a powerful reminder to Mr. Nott and others like him: Crimes that exploit children cannot, and will not be tolerated,” stated U.S. Attorney Waldref. “Mr. Nott ignored the conditions of his release and used the internet to view and distribute horrific depictions of young children being abused. However, thanks to the dedicated work of the Southeast Regional Internet Crimes Against Children Task Force and prosecutors from my office, we were able to hold Mr. Nott accountable and prevent him from further victimizing the most vulnerable among us.”
“HSI’s resolve to protect children from exploitation is unwavering,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This sentencing is a critical reminder of our relentless pursuit of justice for the youngest and most vulnerable victims. Each image he possessed represents a child’s suffering, and our work is driven by a profound commitment to ensuring these children are safeguarded. We will continue to use every tool at our disposal to hold offenders accountable and prevent future abuse.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
This case was investigated by the Southeast Regional ICAC Task Force, consisting of Homeland Security Investigations and the Richland and Kennewick Police Departments. This case was prosecuted by Assistant United States Attorney Laurel Holland.
Registered Sex Offender Admits Possessing Child PornographyRead the Press Release
ST. LOUIS – A registered sex offender from Lake St. Louis, Missouri on Thursday admitted possessing child pornography.
Timothy Ray Dirck, 53, admitted possessing child sexual abuse material between Nov. 1, 2022, and May 3, 2023. Dirck was using peer-to-peer software that made that material available for download. On March 20, 2023, a Homeland Security Investigations special agent was able to download child sexual abuse material and traced the computer to Dirck’s address. During a court-approved search of the home, Dirck admitted possessing images and videos containing child pornography on his laptop. The computer was actively downloading and uploading files consistent with child pornography at the time of the search.
Dirck pleaded guilty Thursday in U.S. District Court in St. Louis to count of possession of child pornography. He is scheduled to be sentenced Feb. 20, 2025. Both sides have agreed to recommend a 10-year prison sentence.
Homeland Security Investigations, with assistance from the Saint Charles County Police Department and the Lake Saint Louis Police Department investigated the case. Assistant U.S. Attorney Nathan Chapman is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.