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14 August 2024
Woman Who Sold Methamphetamine to Undercover Agent Sentenced to over 13 Years in Federal PrisonRead the Press Release
A woman who sold methamphetamine to an undercover agent was sentenced today to 160 months in federal prison for her involvement in a conspiracy to distribute methamphetamine.
Heather Sue Hartzell, age 32, from Waverly, Iowa, received the prison term after a December 21, 2023 guilty plea to one count of conspiracy to distribute a controlled substance.
In 2022, an undercover agent purchased methamphetamine from Hartzell outside her residence in Waterloo, Iowa. Approximately one month later, law enforcement officers stopped Hartzell while she was in a car with her eventual co-defendant James Douglas Morrison returning from Des Moines. Inside the car, Hartzell and Morrison had almost 2,000 grams of “ice” methamphetamine that Morrison had obtained from his supplier in Des Moines, Iowa. Morrison also had a gun.
Hartzell was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Hartzell was sentenced to 160 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hartzell is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Federal Bureau of Investigation, the Tri‑County Drug Enforcement Task Force, the Iowa Division of Narcotics Enforcement, the Black Hawk County Sherriff’s Office, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2045.
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Woman Sentenced for Conspiring to Smuggle Drugs into Virginia Prison and Laundering Drug Money through Mortgage PaymentsRead the Press Release
BOSTON – A Lowell woman was sentenced to prison today for conspiring to distribute controlled substances and conspiring to launder the proceeds in Massachusetts and Virginia.
Sathtra Em, 37, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 21 months in prison to be followed by three years of supervised release. In April 2024, Em pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute MDMA and buprenorphine and two counts of money laundering conspiracy.
Earlier today, one of Em’s co-defendants, Michael Mao, 38, of Silver Springs, Md., admitted to his involvement in the drug smuggling conspiracy – pleading guilty to one count of conspiracy to distribute and possess with intent to distribute MDMA and buprenorphine and one count of money laundering conspiracy. Judge Saylor scheduled Mao’s sentencing for Nov. 18, 2024.
Between at least December 2019 and May 2021, Em helped Mao smuggle MDMA and buprenorphine, in the form of Suboxone and generic Suboxone sublingual films, into the Buckingham Correctional Center in Dillwyn in Virginia where Mao was incarcerated. Em allegedly paid a prison guard at the facility, co-defendant Kenneth Owen, $1,600 to receive the drugs in the mail and to deliver them to Mao in the prison. Em allegedly mailed at least two packages to Owen in December 2019 and January 2020 for him to smuggle into the prison for Mao. Em also mailed magazines into the prison with Suboxone sublingual films hidden in between pages glued together.
Mao sold the smuggled drugs to other inmates at Buckingham Correctional Center, and Em collected the drug debts on behalf of Mao using Google Voice phone numbers to contact the inmates’ friends and families, and electronic payment applications such as Cash App and Paypal to receive the funds transfers.
In a separate conspiracy, Em purchased a home in the Centralville neighborhood of Lowell in 2015. She lived there together with codefendant Sarath Yut until 2017. Yut was a regional drug trafficker and a leader of the Lowell-based gang, One Family Clique. Em and Yut agreed to deposit cash proceeds of Yut’s illegal drug trafficking activity into Em’s bank accounts to pay the mortgage for the Centralville home. Yut gave Em $1,500 cash every month to deposit into her bank account for the mortgage. Between October 2016 and January 2021, Em used at least $76,775 of drug proceeds to pay the mortgage for the Centralville home. The government is seeking forfeiture of this property, which the Court reserved its decision at sentencing today.
The charge of conspiracy to distribute and to possess with intent to distribute MDMA and Buprenorphine provides for a sentence of up to 20 years in prison, at least three years and up to lifetime of supervised release and a fine of up to $1 million. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the amount of the property involved, whichever is greater. Both charges also include forfeiture of assets traceable to or involved in the distribution and laundering offenses. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Sarath Yut pleaded guilty to drug trafficking and money laundering offenses and was sentenced in October 2023 to 15 years in prison. Kenneth Owen has pleaded not guilty and is awaiting trial.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigations, the Virginia Department of Corrections and the Lowell Police Department. Assistant U.S. Attorney Fred M. Wyshak, III of the Organized Crime & Gang Unit and Assistant U.S. Attorney Alexandra Amrhein of the Asset Forfeiture Unit, 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.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Utica Man Sentenced for his Role in Large Fentanyl ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Bernabe Lopez, age 59, of Utica, New York, was sentenced today to serve 88 months in federal prison for conspiring to possess with intent to distribute and to distribute fentanyl, announced United States Attorney Carla Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office. Lopez was also ordered to serve a 4-year term of supervised release following his term of imprisonment, pay a $100 special assessment and a $4,950.00 money judgment, representing proceeds of his drug trafficking offense.
From May 2020 through October 2021, Lopez acquired quantities of fentanyl from co-conspirators in the Rodriguez Drug Trafficking Organization (Rodriguez DTO), which he then re-distributed to others in the Utica, New York area. Lopez also sold a cutting agent to members of the conspiracy for $10 a gram, knowing that the co-conspirators were adulterating fentanyl with the cutting agent to increase volume for sales.
Lopez was one of 9 defendants charged in the Rodriguez DTO. To date, all of the other defendants pled guilty and were sentenced as follows:
- Ivan Rodriguez, Sr., the head of the Rodriguez DTO, pled guilty to one count of conspiring to distribute fentanyl and distribution of fentanyl and one count of money laundering and was sentenced to 121 months incarceration.
- Eric Ares pled guilty to conspiring to distribute fentanyl and one count of possession with the intent to distribute fentanyl and was sentenced to 120 months incarceration.
- Ivan Rodriguez, Jr. pled guilty to conspiring to distribute fentanyl and was sentenced to 120 months incarceration.
- Jose Morales pled guilty to conspiring to distribute fentanyl, and distribution and possession with intent to distribute fentanyl, and was sentenced to 120 months incarceration.
- Harry Rodriguez pled guilty to two counts of possession with intent to distribute fentanyl and was sentenced to 84 months incarceration.
- Edgar Tejada pled guilty to possession with the intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime, and was sentenced to 72 months incarceration.
- Angel Calderon Ortiz pled guilty to conspiring distribute fentanyl and one count of possession with the intent to distribute fentanyl and was sentenced to 60 months incarceration.
- Jose Aponte pled guilty to conspiring to distribute fentanyl and one count of possession with the intent to distribute fentanyl and was sentenced to 40 months incarceration.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
This case is being investigated by the U.S. Drug Enforcement Administration, Internal Revenue Service Criminal Investigations Division, Homeland Security Investigations, United States Immigration and Customs Enforcement and Removal Operations, New York State Police, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, Utica Police Department, Syracuse Police Department, Rome Police Department, Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, New York Army National Guard Counter Drug Program, Yorkville Police Department, Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
U.S. Attorney’s Office Secures 20-Year Sentence in Child Exploitation CaseRead the Press Release
ALBUQUERQUE – An Las Cruces man was sentenced to 20 years in prison for conspiring with his cousin to distribute child pornography, following an extensive investigation that uncovered thousands of explicit images and videos of minors.
There is no parole in the federal system.
According to court document, between April 18, 2022, and April 24, 2023, Ryan Gallardo, 24, conspired with his cousin, Yamil Pillado, to send and receive videos depicting child pornography using various online platforms and cloud storage services. The two men exchanged thousands of files containing sexually explicit images and videos of minors, including content involving bestiality and sadomasochism.
In addition to trading child pornography, Gallardo and Pillado discussed prior sexual abuse of children and plans to sexually abuse and record minors that Gallardo had access to through relationships with others.
Pillado pled guilty to conspiracy to distribute and receive child pornography and was sentenced to more than 17 years in prison. Upon his release from prison, Pillado will be subject to 20 years of supervised release and must register as a sex offender.
Upon his release from prison, Gallardo will be subject to 25 years of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, made the announcement today.
Homeland Security Investigations investigated this case with assistance from the El Paso Police Department, Internet Crimes Against Children Unit, New Mexico State Police and the Las Cruces Police Department. Assistant U.S. Attorneys Marisa A. Ong and A’Kiesha Soliman prosecuted the case.
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Two Orlando Men Charged with Armed Robbery SpreeRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Nijah Jahni Mitchell (22, Orlando) and Dany Telfort (20, Orlando) with multiple counts of Hobbs Act robbery and brandishing a firearm in furtherance of a crime of violence. If convicted on all counts, Mitchell faces a minimum mandatory penalty of 28 years, up to life, in federal prison, and Telfort faces a minimum mandatory penalty of 14 years, up to life, in federal prison. The indictment also notifies Mitchell and Telfort that the United States intends to forfeit the Glock 9mm firearm, Taurus 9mm firearm, and associated ammunition, which are alleged to have been used during the commission of the offenses.
According to the indictment, between March 23 and April 1, 2023, Mitchell and Telfort robbed six convenience stores in Central Florida. They also brandished firearms during their respective robberies.
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 was investigated by the Federal Bureau of Investigation, the Orlando Police Department, the Orange County Sheriff’s Office, the Clermont Police Department, the Ocoee Police Department, the Seminole County Sheriff’s Office, and the Oakland Police Department. It will be prosecuted by Assistant United States Attorney Megan Testerman.
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.
Download IndictmentTwo More Defendants Sentenced to Prison for Roles in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Today, Vernard Antonio Brown, also known as “Bam,” 33, of Detroit, Michigan, was sentenced to 10 years in prison, to be followed by four years of supervised release, for aiding and abetting possession with intent to distribute 5 grams or more of methamphetamine and Denzil Roger Grant II, 50, of Hurricane, was sentenced to four years and seven months in prison, to be followed by three years of supervised release, for possession with intent to distribute a quantity of methamphetamine. Both men admitted to their roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.
According to court documents and statements made in court, on November 15, 2023, law enforcement officers arrested Brown and searched his Huntington residence. Brown admitted that he and others used the residence to store and distribute methamphetamine and fentanyl. Officers seized quantities of methamphetamine and fentanyl, a Landor Arms Canyon Arms 12-gauge shotgun, a Walther P22 .22-caliber pistol equipped with a silencer, a Kel-Teck .22-caliber pistol, and various rounds of ammunition during the search. Brown admitted that he and other individuals possessed the firearms and intended to sell the controlled substances in exchange for money.
Brown further admitted to participating in the DTO from at least August 2023 through November 2023. As part of that participation, Brown admitted to roles in multiple drug transactions within the Southern District of West Virginia. On May 17, 2023, Brown and a co-defendant distributed approximately 446 grams of methamphetamine to a confidential informant. On July 13, 2023, Brown arranged for another individual to distribute approximately 28 grams of methamphetamine and 3 grams of fentanyl to the confidential informant. On August 15, 2023, Brown distributed approximately 27.7 grams of methamphetamine and 3 grams of fentanyl to a confidential informant
On September 27, 2023, Grant called DTO ringleader Derrell Cashawn Massey and asked to purchase fentanyl and methamphetamine. Grant admitted that after arranging the transaction, he traveled from Hurricane to Huntington where he met with Massey and bought methamphetamine.
Grant was returning to Hurricane from Huntington when law enforcement officers stopped his vehicle in Putnam County. Grant consented to a search of the vehicle, and a female passenger in his vehicle gave officers approximately 13.5 grams of methamphetamine. Grant admitted that he intended to distribute the seized methamphetamine and further admitted that the passenger had hidden the methamphetamine on her person at his request.
Brown, Grant and Massey are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.
Massey, also known as “Rell” and “Fat Rell,” 34, of Detroit, Michigan, pleaded guilty on April 22, 2024, to distribution of 50 grams or more of methamphetamine and awaits sentencing. Brown, Grant and Massey are among 21 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Three Additional Suspects Arrested in Connection with Rash of Carjackings in the District and MarylandRead the Press Release
WASHINGTON – Law enforcement this week executed search warrants at several homes in Washington D.C. and arrested three suspects in connection with a series of armed car jackings and vehicle thefts in the District of Columbia and Maryland.
Elmer Bonilla, 22, was arrested on August 9 at his home in the Brightwood neighborhood of Washington, D.C. Christian Rodriguez, 19, of Hyattsville, Maryland, was also arrested on August 9 in Virginia Beach, Virginia. Dylan Giron, 22, was arrested August 12 by law enforcement at a relative’s home in Northwest Washington, D.C. A detention hearing is scheduled for Bonilla, Rodriguez, and Giron for August 16, 2024.
Earlier this year, on February 28, 2024, Gregory Giron, 20, of the Washington D.C.’s Crestwood neighborhood, was taken into custody by Baltimore County Police following a vehicle pursuit of Gregory Giron, who was driving a Toyota Corolla that had just been carjacked. He was initially charged with one count of carjacking the Toyota Corolla.
On August 1, the four co-defendants were charged in a 16-count Superseding Indictment for the rash of offenses that occurred from December 12, 2023, to February 27, 2024, which include:
• January 5, 2024, carjacking of a Hyundai Elantra on the 3900 block of Georgia Avenue NW;
• January 16, 2024, auto theft of a 2023 Kia Sportage on Hanover Pike, in Reisterstown, MD;
• January 23, 2024, armed carjacking of a 2019 Dodge Challenger on the 7500 block of Eastern Avenue NW;
• January 23, 2024, armed carjacking of a 2016 Dodge Challenger, on the 1500 block of Decatur Street NW;
• January 24, 2024, armed carjacking of a 2019 Dodge Charger on the 6400 block of Luzon Avenue, NW;
• January 25, 2024, armed carjacking of a 2023 Honda Pilot on the 3200 block of P Street, NW;
• January 25, 2024, armed carjacking, of a 2015 Infiniti Q50 on the 200 block of Pidco Road, Reisterstown, MD;
• January 25, 2024 armed carjacking of a 2014 BMW 428i on the 5600 block of Sargeant Road, Hyattsville, MD
During the execution of the search warrants this week at the co-defendents’ residences, law enforcement recovered ammunition, firearms, a bullet proof vest, cash, and imitation firearms.
This is an ongoing investigation being handled by the FBI’s Washington Field Office with assistance from local law enforcement.
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.
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Tampa Man Indicted for Possessing A Firearm and Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Brandon Palmore (29, Tampa) with possessing a firearm or ammunition as a convicted felon. If convicted, Palmore faces a maximum penalty of 15 years in federal prison. The indictment also notifies Palmore that the United States intends to forfeit a Sig Sauer handgun and assorted ammunition, which are alleged to have been used in the commission of the offense.
According to the indictment, on December 1, 2023, Palmore, knowing that he had been previously convicted of multiple felonies – including shooting at, within, or into a vehicle, and aggravated assault with a deadly weapon – was in possession of a Sig Sauer handgun and 10 rounds of ammunition.
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 was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jeff Chang.
This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
St. Louis Felon Admits Committing Two Arsons in 2022Read the Press Release
ST. LOUIS – A convicted felon from St. Louis, Missouri on Wednesday admitted committing two arsons in St. Louis in 2022 and being caught with two firearms during the resulting investigation.
Vaely Berry, 52, pleaded guilty in U.S. District Court in St. Louis to two arson charges and one count of possession of a firearm by a felon. He admitted throwing a gasoline-filled bottle on the roof of a supermarket and grill in the 8300 block of North Broadway in St. Louis on July 15, 2022, igniting a fire.
Berry used two gasoline-filled bottles on Dec. 8, 2022, to set the roof of a liquor store in the 5900 block of Lillian Avenue in St. Louis on fire.
During the investigation of the fires, a Bureau of Alcohol, Tobacco, Firearms and Explosives special agent conducting a court-approved search of Berry’s home found a revolver and a shotgun. Berry admitted knowing that as a convicted felon, he is barred from possessing firearms.
Berry is scheduled to be sentenced November 13. The arson charges are punishable by five to 20 years in prison, a $250,000 fine or both prison and a fine. The firearm charge is punishable bv up to 15 years in prison and the same fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney John Ware is prosecuting the case.
Second defendant charged in fraudulent refund scheme targeting online retailersRead the Press Release
Seattle – A 29- year-old Wilkes-Barre, Pennsylvania man pleaded guilty today in U.S. District Court in Seattle to wire fraud and money laundering crimes related to his operation of a fraudulent online shopping refund scheme, announced U.S. Attorney Tessa M. Gorman. Leonardo Vidal faces up to 20 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on November 7, 2024.
According to the charging information and the plea agreement, Vidal operated his own fraudulent refunding fraud scheme from June 2021 until April 2023 called Ressu Refunds. The scheme amassed 2,800 subscribers and obtained $6 million in fraudulent refunds for followers. Beginning in June 2022, Vidal conspired with 25-year-old Dearborn, Michigan, man Sajed Al-Maarej who operated a different refund site called “Simple Refunds.” As with the Ressu refund site, Simple Refunds operated through the messaging service Telegram.
As explained in the charging information and the indictment of Al-Maarej, the Telegram channels represented to prospective purchasers that they could buy high value goods and keep them, while falsely claiming to the merchant company that a refund was due. Purchasers provided Al-Maarej and Vidal with information about their purchase (order number, name, address, value). For a cut of the refund, Al-Maarej, Vidal and their coconspirators would seek a refund by making false representations to the retailers about the status of the order. For example, Simple Refunds or Ressu Refunds would claim the item had not been delivered; was irretrievably damaged; or would have the purchaser mail a box of garbage or junk back to the company – once the package was scanned at the shipping point the refund was issued before the box arrived back and the fraud was discovered. The men recruited “insiders” at UPS and the US Postal Service who would input false scans into the order tracking history to make it appear items had been lost in shipping, stolen from the mail, or returned to the company. The end goal was for the purchaser to keep the product and get their money back. The purchaser then paid Al-Maarej or Vidal 10-15% of the purchase price as a fee, enabling Al-Maarej and Vidal to enrich themselves.
In December 2022, Vidal acquired Simple Refunds from Al-Maarej. Vidal sold Ressu Refunds and Simple Refunds to a different Telegram user in April 2023. During the time that Vidal operated Simple Refunds it was responsible for $726,414 worth of fraudulent refunds and Vidal profited $87,000.
During just 8 months from May 2022 through December 2022—Ressu Refunds facilitated more than 3,000 fraudulent refunds worth at least $5.3 million. Vidal obtained at least $640,000 from this fraud.
The total value of the fraudulent refunds through Simple Refunds and Ressu Refunds while Vidal was running them is $6,067,168. Vidal has agreed to pay restitution of that amount.
Wire fraud and money laundering are punishable by up to 20 years in prison. Prosecutors have agreed to recommend no more than 87 months in prison for Vidal. The actual sentence will be determined by Judge Lasnik after considering sentencing guidelines and other factors.
On July 15, 2024, Al-Maarej pleaded guilty to conspiracy, mail fraud and wire fraud. He too is scheduled to be sentenced on November 7, 2024.
The investigation is open and ongoing with the possibility of additional charges against other defendants.
The case is being investigated by the FBI and the United States Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
Russian Citizen Sentenced to 40 Months for Selling Stolen Financial Information on the Criminal Internet Marketplace SlilppRead the Press Release
WASHINGTON – Georgy Kavzharadze, 27, of Moscow, Russia, was sentenced today to 40 months in prison for being a prolific vendor of stolen financial information, login credentials, and other personally identifying information (PII) on a criminal internet marketplace called Slilpp, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division.
Kavzharadze pleaded guilty February 16, 2024, to conspiracy to commit bank fraud and wire fraud before U.S. District Judge Colleen Kollar-Kotelly. In addition to the prison term, Judge Kollar-Kotelly ordered Kavzharadze to pay $1,233,521.47 in restitution.
Kavzharadze is also known as “George” and went by online monikers of “TeRorPP,” “Torqovec,” and “PlutuSS.” In Cyrillic his name is ГЕОРГИЙ КАХОВИЧ КАВЖАРАДЗЕ.
According to court documents, between July 2016 and May 2021, Kavzharadze, using the name “TeRorPP,” listed over 626,100 stolen login credentials for sale on Slilpp and sold more than 297,300 of them on the illegal marketplace. Those credentials were subsequently linked to $1.2 million in fraudulent transactions. On May 27, 2021, Kavzharadze’s account on Slilpp listed 240,495 login credentials for sale that would allow the buyer to use the information to steal money from the victim’s online payment and bank accounts. The credentials included access to accounts with banks located in New York, California, Nevada, and Georgia. Kavzharadze accepted Bitcoin as payment for the credentials. An FBI analysis connected Kavzharadze to withdrawals of more $200,000 in Slilpp profits from his Bitcoin account.
In June 2021, the FBI, in a coordinated action with international law enforcement partners, disrupted Slilpp by seizing its infrastructure and domain names. The Slilpp database contained a wealth of historical information about Slilpp vendors, customers, and transactions, including subscriber and payment information for individual accounts that have been used to buy and sell login credentials over Slilpp. The database accurately reflected known Slilpp transactions and subscriber records, including FBI undercover purchases.
On August 24, 2021, Kavzharadze was charged with conspiracy to commit bank fraud and wire fraud, bank fraud, access device fraud, and aggravated identity theft. He was subsequently extradited to the United States. His initial appearance occurred May 18, 2022, in U.S. District Court. Kavzharadze has been detained since his extradition to the United States.
This case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Christine Macey and Special Assistant U.S. Attorney Joseph Misher. Valuable assistance was provided by Paralegal Specialist Lisa Abbe, former Assistant U.S. Attorney Demian S. Ahn, and former Paralegal Specialist Michon Tart.
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Rockwood Man Sentenced for Tax Evasion and Filing False Income Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A resident of Rockwood, Pennsylvania, has been sentenced in federal court to one year and one day in prison, to be followed by one year of supervised release, and ordered to pay a fine of $40,000 and restitution of $207,378 (which has already been paid) to the Internal Revenue Service on his conviction of tax evasion and filing false income tax returns, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jason R. Svonavec, 45.
According to information presented to the Court, Svonavec evaded tax liability in 2017 by illegally expensing the construction of his home in Somerset, Pennsylvania, through entities he operates called Heritage Coal and Natural Resources LLC and Banshee Crane. In 2018, he filed a tax return reporting false tax deductions for Heritage Coal.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Internal Revenue Service for the investigation leading to the successful prosecution of Svonavec.
Richmond man with previous firearms convictions sentenced for possessing a handgunRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to three years in prison for being a felon in possession of a firearm.
According to court documents, on Oct. 3, 2023, Henrico County Police (HCPD) responded to a call for service regarding a fight at an apartment complex on Henrico Arms Place. A woman who was not involved in the fight approached the officers and reported that she had just been assaulted by Jamie Louis Cook, 39, who is the father of her child. When an HCPD officer attempted to place Cook into custody for domestic assault, Cook attempted to flee from the officers.
As Cook fled, he reached into his waistband, removed a loaded 9mm handgun, and dropped it on the ground. Cook eventually stopped running and was taken into custody. The officers recovered the firearm that Cook dropped, which had been stolen in November 2021.
Cook has previous felony convictions including for robbery, use of a firearm in commission of a felony, and possession of a firearm by a convicted felon.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jason S. Miyares, Attorney General of Virginia; and Eric D. English, Chief of Henrico County Police Division, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-26.
Repeat Felon Sentenced to Eight Years in Prison for Drug TraffickingRead the Press Release
MINNEAPOLIS – A Minneapolis felon has been sentenced to 100 months in prison followed by 48 months of supervised release for possession with intent to distribute controlled substances, announced United States Attorney Andrew M. Luger.
According to court documents, on September 27, 2022, law enforcement received a tip that Keith Haywood, 52, possessed a gun and was selling narcotics. Officers obtained a warrant and conducted a search of Haywood’s residence in North Minneapolis. At his Minneapolis residence, they discovered 230 grams of heroin, over 100 grams of cocaine, a semi-automatic pistol, and $25,000 in cash. A subsequent search of Haywood’s person and vehicle revealed another firearm, approximately 29 grams of a fentanyl/heroin mixture, and 10 grams of cocaine in the console of his car.
On April 5, 2024, Haywood pleaded guilty to one count of possession with intent to distribute a controlled substance. He was sentenced today in U.S. District Court by Judge R. Tunheim. In announcing the sentence, Judge Tunheim observed that Haywood’s “crime was serious, and the fact that fentanyl was involved made it especially dangerous.”
This case was the result of an investigation conducted by the Minneapolis Police Department, Homeland Security Investigations, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorneys David Green and Lindsey E. Middlecamp prosecuted the case.
Readout of the Justice Department Quarterly Convening with National Public Defense OrganizationsRead the Press Release
The Justice Department’s Office for Access to Justice (ATJ) today hosted their quarterly convening with national public defense organizations. This quarter's convening specifically centered on youth defense issues. ATJ Director Rachel Rossi, Assistant Attorney General Kristen Clarke of the Civil Rights Division, Administrator Liz Ryan of the Office of Juvenile Justice and Delinquency Prevention, Acting Assistant Attorney General Brent Cohen of the Office of Justice Programs and Director Nancy La Vigne of the National Institute of Justice delivered remarks for the convening on the topic of youth defense. Department officials affirmed the Justice Department’s commitment to protecting the constitutional rights of our nation’s youth, strengthening and supporting youth defense systems, and advancing public safety and trust.
Today’s convening gathered public defense and youth defense organizations to discuss critical topics and trends in youth defense systems including research and data needs, the role of youth defenders in addressing racial disparities in the juvenile legal system, conditions of confinement and youth access to counsel and the need for specialized and independent youth defenders across the nation. Justice Department officials highlighted recent programs, actions and initiatives aimed at addressing the myriad of access to justice issues in juvenile legal systems.
ATJ supports indigent defense systems through its mandates to “plan, develop and coordinate the implementation of access to justice policy initiatives of high priority to the department and the executive branch,” and to “promote uniformity of Department of Justice and government-wide policies and litigation positions” relating to access to justice, “including in the area of criminal indigent defense.” See 28 C.F.R. § 0.33. ATJ serves as the principal legal advisor for the department on the constitutional right to counsel and the other rights guaranteed under the Sixth Amendment, and as the liaison and point of contact between the department and indigent defense organizations.
In furtherance of this mission, ATJ hosts quarterly convenings with the public defense community. Quarterly convenings are directed and led by the Justice Department’s senior attorney dedicated to supporting, collaborating with and engaging the state and local public defense community housed in ATJ. This quarterly convening included leaders and staff from The Gault Center, National Association of Public Defense, National Association of Criminal Defense Lawyers, National Legal Aid and Defender Association and Georgetown Law’s Juvenile Justice Clinic and Initiative.
Senior Justice Department Officials meet with Public Defense and Youth Defense Organizations.Portland Woman Sentenced to Federal Prison for Role in Local Fraud RingRead the Press Release
PORTLAND, Ore.—An Oregon City, Oregon woman was sentenced to federal prison today for her role in a fraud conspiracy that used the stolen identities of multiple victims in the Portland area to steal more than $158,000.
Mary Phoenix Nguyen, 41, was sentenced to 54 months in federal prison and three years’ supervised release. She was also ordered to pay $158,286.85 in restitution to her victims.
According to court documents, in April 2022, special agents from Homeland Security Investigations (HSI) began investigating Nguyen and others in the Portland and Vancouver, Washington areas for their roles in a coordinated fraud ring targeting individuals in the Portland Metropolitan Area, Texas, Florida, and elsewhere. Nguyen and her associates used stolen identities and personal information to obtain credit cards, unlawfully access victims’ bank accounts, apply for multiple vehicle loans, rent at least six apartments and other residences, and fraudulently produce various personal and financial documents including social security cards, driver’s licenses, vehicle titles, and vehicle bills of sale.
On October 18, 2022, Nguyen was arrested at her Oregon City residence. During a search of the residence, investigators found hundreds of stolen, altered, or counterfeit documents and identifications, equipment used to produce counterfeit items, and master U.S. Postal Service keys.
On April 18, 2023, Nguyen was charged by superseding indictment with conspiring to commit bank fraud; bank fraud; social security fraud; aggravated identity theft; and possessing fifteen or more unauthorized access devices, stolen or reproduced keys or locks, and stolen mail.
On May 15, 2024, Nguyen pleaded guilty to conspiring to commit bank fraud, aggravated identity theft, and possessing stolen or reproduced keys.
This case was investigated by HSI and the Portland Police Bureau with assistance from the U.S. Postal Inspection Service. It was prosecuted by Special Assistant U.S. Attorney Rachel Sowray.
Portland Man Sentenced to 15 Years in Prison for Sextortion of a MinorRead the Press Release
MINNEAPOLIS – A Portland man has been sentenced to 180 months in prison followed by 10 years of supervised release for producing child sexual abuse material and sextorting a minor victim, announced United States Attorney Andrew M. Luger.
According to court documents, in May 2022, Aaron Eugene Bjarnason, 25, of Portland, Oregon, used his Instagram account to message Minor Victim 1 and asked if she was “open to sugar daddies.” Bjarnason offered to pay the minor for sexually explicit images and videos and shared a screenshot of his purported bank account to prove he could provide payment. On several occasions, Bjarnason directed Minor Victim 1 to send him specific sexually explicit images and videos. Bjarnason became increasingly forceful in his demands and threatened Minor Victim 1 that he would share the images and videos with her father and her peers if she did not continue to comply with his demands.
On April 2, 2024, Bjarnason pleaded guilty to one count of production of child pornography. He was sentenced today in U.S. District Court by Judge John R. Tunheim.
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 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.projectsafechildhood.gov.
This case is the result of an investigation conducted by the Carver County Sheriff’s Office and the FBI.
Assistant U.S. Attorney Evan B. Gilead prosecuted the case.
Plainfield Man Sentenced to Eight Years in Federal Prison for Three Armed Robberies of Indy Area BusinessesRead the Press Release
INDIANAPOLIS- Larry Gibson, 65, of Plainfield, has been sentenced to eight years in federal prison, followed by three years of supervised release, after pleading guilty to three counts of interference with commerce by robbery.
According to court documents, between August 25 and September 5, 2019, Larry Gibson robbed three different Indianapolis area businesses. On August 24, he robbed an OfficeMax on East Washington Street and stole $320. On August 28, he robbed a CVS on Southeastern Avenue and stole $115. On September 5, he robbed a Wendy’s on Post Road and stole $276. In each robbery, Gibson brandished what the employees believed to be a firearm and demanded cash.
Gibson was arrested on September 6, 2019, and admitted to committing each robbery. During a search of Gibson’s residence, officers located a toy gun that resembled a real firearm.
“Every person deserves to feel safe where they live and work. This defendant terrorized and threatened innocent employees and businesses for weeks,’ said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “These frightening, senseless crimes have no place in our communities, and we are safer with this man behind federal prison bars. I am grateful to the FBI for ensuring that this criminal has been held accountable for his actions.”
The FBI and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Judge James P. Hanlon.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Pine Ridge Man Sentenced to 10 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Enticement of a Minor. The sentencing took place on August 12, 2024.
Rowland Coomes, age 37, was sentenced to 10 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Coomes was indicted for the charge by a federal grand jury in February 2023. He pleaded guilty on May 30, 2024.
In February of 2022, a 14-year-old female reported that she had been provided methamphetamine and sexually assaulted by Coomes while on the Pine Ridge Reservation. During the report, the 14-year-old female disclosed that Coomes had also solicited her for nudes photographs, constituting child pornography, in exchange for transportation. The FBI applied for and received a search warrant to search Coomes’ Facebook account. Messages revealed that Coomes had in fact received images constituting child pornography. An analysis of Coomes’ Facebook account established that he was in an illegal sexual relationship with another victim – living on the Reservation. After Coomes’ arrest, he contacted a family member and urged the family member to delete his Facebook account in order to get rid of evidence establishing his guilt. The FBI, however, had already searched and seized his account at the time Coomes’ made the request to the family member.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Coomes was immediately remanded to the custody of the U.S. Marshals Service.
Omaha Man Sentenced to 235 Months in $1 Million Dollar Bank Robbery ConspiracyRead the Press Release
United States Attorney Susan T. Lehr announced that Demitrius Alston, age 34, of Omaha, Nebraska was sentenced on August 14, 2024, in federal court in Omaha for bank robbery, attempted bank robbery, and conspiracy to commit interference with interstate commerce by way of robbery. Senior United States District Judge John M. Gerrard sentenced Alston to 235 months’ imprisonment. There is no parole in the federal system. After his release from prison, Alston will be required to complete a 3-year term of supervised release. The amount of restitution to be ordered will be determined at a future hearing.
Alston was indicted in three criminal cases in 2020. He is the last defendant to be sentenced in a conspiracy to rob federally insured banks across Nebraska, South Dakota, North Carolina, and Iowa between 2015 and 2020. The first indictment returned by the grand jury charged him with conspiracy to commit interference with commerce by robbery involving four other defendants and fifteen banks. The defendants, who wore disguises and masks, would generally initiate “takeover” style robberies, establishing control of the employees and customers in the banks by brandishing firearms, enabling them to gain access to the vaults. In the conspiracy case, the defendants robbed federally insured banks of $959,147.68 between June 1, 2015, and June 22, 2018.
Next, Alston was indicted by a grand jury in the Eastern District of North Carolina. The indictment charged him with robbing a Wells Fargo Bank on July 29, 2019, in Fayetteville, North Carolina. The North Carolina case was later transferred from the U.S. District Court for the Eastern District of North Carolina to the U.S. District Court for the District of Nebraska for disposition. During that robbery, Alston and another suspect robbed the bank of over $77,000.00 in a similar “takeover” style manner, fleeing in a 1993 Chevy Lumina. On the same day, Alston entered the Fayetteville Regional Airport and approached a TSA security checkpoint. As he was being screened, TSA agents flagged his bag for inspection. The TSA agent searching the backpack located large sums of U.S. currency. Alston snatched the bag and took off running. As he ran, he dropped a large sum of currency inside the terminal and his backpack. Investigators recovered $38,110.00 in new, crisp bills (approximately half of the amount stolen from the bank). Alston also left his Nebraska identification, cellphone, and boarding pass in the security bin. The Federal Bureau of Investigation (FBI) later searched Alston’s home in Nebraska and recovered the title to a 1993 Chevrolet that was used as the getaway car and seized by the Fayetteville Police Department.
The final indictment returned by the grand jury in the District of Nebraska charged Alston and a codefendant with attempted robbery of a Metro Credit Union and a robbery of a Wells Fargo Bank in Nebraska. On September 25, 2018, Alston and codefendant Brealon Goodwin attempted to rob a Metro Credit Union located on North 72nd Street in Omaha. Alston and Goodwin wore disguises and used a stolen red Jeep to flee. On September 28, 2018, Alston and Goodwin robbed the Wells Fargo Bank of over $16,000.00. During the Wells Fargo robbery, Alston and Goodwin wore disguises and demanded money, and one of the defendants had his hand in his pocket in a manner suggesting to the teller that he was carrying a concealed firearm.
Alston was able to avoid arrest until September 27, 2021. During an interview with investigators, he admitted he participated in nearly two dozen robberies, including those charged. All the banks were federally insured.
Among the related defendants, Brealon Goodwin was sentenced to concurrent sentences of imprisonment for 69 months on each of three counts of conviction in two of the cases involving Alston. Kevin Brown was sentenced to consecutive sentences of imprisonment on two counts of conviction, totaling 128 months, Tristen Coleman was sentenced to consecutive sentences of imprisonment on two counts of conviction, totaling 100 months. Charles Ware was sentenced to consecutive sentences of imprisonment on each of two counts of conviction, totaling 170 months. The related defendants were sentenced in 2022 and 2023.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Lincoln Police Department.
Oklahoma Man Convicted of Illegal Firearms Possession after Fleeing from Oklahoma Highway Patrol TrooperRead the Press Release
OKLAHOMA CITY – A federal jury has convicted THOMAS LAMAR BROWN, 46, of Oklahoma City, of illegal possession of firearms after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On March 5, 2024, a federal grand jury charged Brown with being a felon in possession of firearms. On August 14, 2024, a federal jury convicted Brown on the charge. According to trial testimony, on April 15, 2023, a trooper with Oklahoma Highway Patrol (OHP) stopped Brown for a traffic violation on Interstate 40. The trooper spotted a sheathed knife in the passenger seat then asked Brown, the driver, to exit the vehicle. Brown began to act erratically, and the trooper noticed a firearm holster on Brown’s hip. After the trooper drew his service pistol, Brown fled on foot.
Brown was arrested following a brief chase. Inside his vehicle, OHP located four firearms, 29 loaded magazines, and thousands of rounds of ammunition.
Public record shows Brown has multiple previous felony convictions, including three counts of infliction of corporal injury to a spouse or cohabitant in cases filed in California State Court.
At sentencing, Brown faces a mandatory minimum sentence of 15 years in federal prison and up to life under the Armed Career Criminal Act.
This conviction is the result of an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Travis Leverett and Danielle London are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of PSN and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. This case is also part of “Operation 922,” the Western District of Oklahoma’s implementation of PSN, which prioritizes prosecution of federal crimes connected to domestic violence. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Ohio Man Sentenced for Transporting Meth Through KC Aboard BusRead the Press Release
KANSAS CITY, Mo. – An Akron, Ohio, man was sentenced in federal court today for transporting more than 27 kilograms of methamphetamine through Kansas City, Mo., aboard a bus.
Rogeric Romone Clark, 40, was sentenced by U.S. District Judge Howard F. Sachs to 12 years in federal prison without parole.
On April 11, 2024, Clark pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
Members of the Missouri Western Interdiction and Narcotics Task Force (MoWIN) were conducting interdiction activities at a Kansas City, Mo., bus station on, Dec. 5, 2023. As passengers disembarked from a bus that originated in Los Angeles, California, officers used a police drug-sniffing dog, which alerted to a suitcase later identified as belonging to Clark. Investigators later identified another suitcase that belonged to Clark.
A detective contacted Clark, who confirmed a suitcase belonged to him and gave officers consent to open it. As the detective opened the suitcase, Clark fled on foot through the rear parking area. Clark fell during the chase and was taken into custody.
Officers searched both of the suitcases and found 30 one-pound bundles in each suitcase that contained a total of 27.2 kilograms of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
North Tonawanda man pleads guilty to using stolen credit card numbers to purchase tens of thousands of dollars worth of gasRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Kingsley Brown, 22, of North Tonawanda, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that between August 2022, and July 2023, Brown, along with co-defendant Cross Malik Williams, purchased approximately 570 stolen bank cards from various online marketplaces. Williams and Brown then used a card-making device to load the stolen banking card information onto blank plastic bank cards with magnetic strips, which allowed purchases to be made using the victims’ funds from the victims’ bank accounts. Williams and Brown used, or allowed others to use, the stolen bank card information to purchase gas for other individuals. The gas customers would then pay Williams and/or Brown an amount of money less than the cost of the gas. As part of his plea agreement, Brown agreed that he was responsible for $192,673 of total loss.
Cross Malik Williams was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for December 11, 2024, before Judge Sinatra.
New York Man Sentenced to 18 Years in Prison for Sex Trafficking a Minor and Forced LaborRead the Press Release
BOSTON – A New York City man was sentenced today in federal court in Boston for brutally sex trafficking a minor. Defendant trafficked the minor victim nearly every single day and forced her to work at a strip club.
Sherriff Cooper, 37, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 years in prison to be followed by five years of supervised release. Cooper was also ordered to pay $97, 200 in restitution to the minor victim. In February 2024, Cooper was convicted by a federal jury of sex trafficking of a minor by force, fraud and coercion; transportation of a minor with intent to engage in criminal sexual activity; and forced labor.
“Sherriff Cooper viciously and cruelly exploited a vulnerable minor who was half his age – taking advantage of his position of trust to abuse her into submission. When he lost his job, Mr. Cooper decided he would rather sex traffic a vulnerable child for financial gain than seek legitimate employment – all the while physically abusing and threatening her. Her bravery and courage in holding this defendant accountable is truly remarkable. Mr. Cooper’s refusal to accept any responsibility for his crimes or show remorse for the lifelong harm he inflicted underscores why he is truly deserving of this significant sentence,” said Acting United States Attorney Joshua S. Levy.
“Our thoughts today are with the victim in this case who suffered horrific abuse and courageously came forward and told investigators and the jury what Sherriff Cooper did to her. As a result, Sherriff Cooper was sent to prison for 18 years. No child should ever be subjected to sex trafficking, especially by someone in a position of trust,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence removes a dangerous threat from our community, and sends a clear message that human trafficking will not be tolerated.”
In 2017, Cooper was working as a security guard at a residential program for pregnant teens when he met the victim – a then 15-year-old pregnant minor who had run away from Massachusetts Department of Children and Families’ custody. Cooper began a sexual relationship with the victim and, after losing his job in early 2018, began sex trafficking her around Boston, posting advertisements for her on commercial sex websites and taking all the proceeds. He used violence, threats of violence and coercion to make the victim engage in commercial sex for his financial benefit, trafficking the minor victim every single day except for when she was menstruating and on her birthday.
Cooper transported the victim across state lines to sex traffic her in New York. While in New York, Cooper obtained a fake ID for the minor victim and forced her to strip at a club – keeping all the proceeds for himself. Cooper continued to use threats of violence, violence and coercion to keep the victim working at the club for his financial benefit. Cooper’s violence against the victim increased when she could not strip as often because he impregnated her.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and SAC Cohen made the announcement. Special assistance was provided by the FBI New York Field Division and the Arlington and Malden Police Departments. Assistant U.S. Attorneys Torey B. Cummings, Stephen W. Hassink and Lauren A. Graber of the Criminal Division prosecuted the case.
New Haven Resident Who Made False Statements During Citizenship Process is SentencedRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MOHAMED NAJM KAMASH, also known as Mohamed Najm Mohamed Ali Kamash, 33, of New Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to approximately two months of imprisonment, time already served, and two years of supervised release, for making false statements during his citizenship process.
According to court documents and statements made in court, Kamash is a lawful permanent resident of the U.S., having immigrated to the U.S. from Iraq in 2014. On August 17, 2021, Kamash appeared in Hartford for a U.S. Citizenship and Immigration Services (“USCIS”) interview about his pending Application of Naturalization (Form N-400), and was placed under oath. During the interview with a USCIS agent, Kamash knowingly and falsely stated that he did not know anyone involved with a terrorist organization and that no member of his family was involved with a terrorist organization.
Kamash was arrested on a criminal complaint on May 5, 2022, and was released on bond on June 30, 2022. On March 25, 2024, he pleaded guilty to making a false statement in a naturalization proceeding.
This matter was investigated by the Federal Bureau of Investigation and U.S. Citizenship and Immigration Services. The case was prosecuted by Assistant U.S. Attorneys Patrick Doherty and Konstantin Lantsman.
Moon Township Man Pleads Guilty to Filing False Tax Return, Admits to Causing $1.03 Million Tax LossRead the Press Release
PITTSBURGH, Pa. – A resident of Moon Township, Pennsylvania, pleaded guilty in federal court to a charge of willfully filing a false tax return, United States Attorney Eric G. Olshan announced today.
Albert Boyd Jr., 53, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that, for each year from 2017 to 2022, Boyd failed to report income from his company, Boyd Roll-Off Services, Inc., on the business’s tax return for the relevant tax year, causing a total tax loss of at least $1,030,000. Specifically, Boyd ensured that much of the company’s income from the sale of scrap metal went unreported by causing cash proceeds not to be deposited in the business bank account and causing checks to be deposited into accounts other than the business bank account. Boyd then failed to provide his tax return preparer with records relating to the undeposited cash and diverted checks.
Judge Schwab scheduled sentencing for December 17, 2024. The law provides for a total sentence of up to three years in prison, a fine of up to $250,000 or twice the pecuniary gain or loss of the offense, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation that led to the prosecution of Boyd.
Mexican National Sentenced for Illegal Re-entryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BALTAZAR GARCIA-MENDOZA (“GARCIA”), age 33, was sentenced on August 7, 2024 to time served after previously pleading guilty to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to court documents, GARCIA was encountered during a traffic stop on Interstate 10 in St. Tammany Parish on April 24, 2024, after being previously deported on February 3, 2014.
GARCIA was sentenced by United States District Court Judge Sarah S. Vance to time served, which was over three months. GARCIA had no previous criminal history.
Database checks indicated that GARCIA reentered the United States without permission, inspection, or parole by an immigration officer and without the express consent of the United States Attorney General or the Secretary of the Department of Homeland Security for readmission to the United States and, was encountered in the Eastern District of Louisiana by law enforcement.
U.S. Attorney Evans praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
Member of Violent New Haven Gang Sentenced to 84 Months in Federal PrisonRead the Press Release
SAMUEL DOUGLAS, also known as “Blamm,” 25, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 84 months of imprisonment, followed by three years of supervised release, for his participation in a violent New Haven street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating an ongoing gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Douglas and other members of the Exit 8 gang engaged in drug trafficking, used and shared firearms, and, from 2018 to 2023, committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
On April 22, 2024, Douglas pleaded guilty to conspiracy to engage in a pattern of racketeering activity, and specifically admitted that on June 16, 2018, he and fellow Exit 8 member Kiveon Hyman shot at and attempted to kill a member and associate of a rival gang in the area of Fountain Street, Davis Street, and Lakeview Terrace in New Haven. In the shooting, the intended victim’s associate suffered seven gunshot wounds, but survived the attack. Investigators found 15 spent ammunition casings at the scene.
Investigators subsequently recovered two handguns that fired the ammunition casings that were collected at the scene. One handgun was seized in March 2019 from a now-deceased Exit 8 member. National Integrated Ballistic Information Network (NIBIN) analysis of the second handgun, which was recovered during a New Haven Police investigation in January 2020, linked it to eight other shooting incidents in New Haven in 2018.
Douglas has been detained since November 10, 2022.
Hyman pleaded guilty and, on April 1, 2024, was sentenced to 78 months of imprisonment.
This investigation has been conducted by ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Manchester, New Hampshire Man Sentenced to Prison for Elder Fraud OffenseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that on August 12, 2024, Nicholas Melanson, 42, of Manchester, New Hampshire, was sentenced by Chief United States District Judge Christina Reiss to six months’ imprisonment to be followed by a 3-year term of supervised release. Melanson previously pleaded guilty to interstate transportation of a stolen check. Chief Judge Reiss also ordered Melanson to pay $1,500 in restitution to the victim of his offense.
According to court records, over the course of nine days in May 2022, Melanson traveled on five different occasions from New Hampshire, where he lived and worked, to the residence of an elderly woman in Windsor, Vermont. Each time Melanson traveled to her residence, he picked her up and drove her to one or more banks where she had accounts. Once at the banks, she made withdrawals and conducted other transactions, and Melanson obtained checks and/or cash from her. The attempted or completed financial transactions that Melanson facilitated or conducted for the elderly woman totaled at least $392,000, though many of the transactions were ultimately stopped or reversed. Melanson received $1,500 cash and a $3,000 “bonus” payment for his role in the victimization of the woman, and he hoped to be paid $10,000 a month to continue manipulating her financial activities. Even though Melanson had never met the woman previously and only interacted with her those five times, he quickly observed that she was confused, opined that she was “starting to have Alzheimer’s,” and believed she was not able to make informed decisions about large financial transactions without guidance and instruction from someone else. Melanson’s conduct only stopped when he was arrested by the Windsor, Vermont Police Department at one of the victim’s banks on May 19, 2022.
United States Attorney Nikolas P. Kerest commended the hard work and investigatory efforts of the United States Postal Inspection Service, the United States Secret Service, and the Windsor, Vermont Police Department, and he further thanked the Windsor Police Department for its efforts on behalf of the victim in this matter.
Melanson was represented in this matter by Assistant Federal Public Defender Mary Nerino. Assistant United States Attorneys Nicole Cate and Michael Drescher handled the case for the government.
Since the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Please visit: http://www.justice.gov/elderjustice/.
Local Restauranteur Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The former owner of two restaurants was charged yesterday in connection with filing false tax returns.
Remigijus Mikelenas, 55, of Gilford, N.H., formerly of Canton, Mass. has been charged with three counts of filing false tax returns. Mikelenas was arrested yesterday and released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, Mikelenas was the owner of a café and juice bar in Canton. It is alleged that between approximately 2012 through 2020, Mikelenas deliberately failed to report more than $3.5 million in gross receipts at his businesses to the Internal Revenue Service (IRS). As a result, Mikelenas allegedly avoided paying more than $860,000 in federal income taxes.
During the investigation, Mikelenas allegedly told an undercover agent posing as a prospective buyer for the businesses, that he regularly underreported his gross receipts to the IRS and showed the agent a copy of the “real” books that reflected the businesses’ true earnings. During the meeting, it is further alleged that Mikelenas asked the agent whether he worked for the IRS, and added, “If I get caught, I’ll be screwed.”
The charge of filing false tax returns provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lincoln Man Sentenced to 10 Years for Distribution of Methamphetamine and Gun ChargesRead the Press Release
United States Attorney Susan Lehr announced that Jimmy P. Nguyen, age 30, of Lincoln, Nebraska, was sentenced on August 13, 2024, in federal court in Lincoln for one count of distributing 5 grams or more of methamphetamine and one count of possessing a firearm during/in furtherance of drug trafficking. Senior United States District Judge Joseph F. Bataillon sentenced Nguyen to a total of 120 months’ imprisonment for both counts. There is no parole in the federal system. After Nguyen’s release from prison, he will begin a 5-year term of supervised release.
On December 16, 2021, Nguyen agreed to sell two semi-automatic handguns to a Confidential Informant (CI) in Lincoln. Nguyen then informed the CI that he had two ounces of meth that he could sell to the CI as well. Ultimately, Nguyen and the CI agreed that Nguyen would sell the two handguns and one ounce of meth. They agreed to meet at a parking lot of a grocery store in Lincoln. The purchase of the firearms and meth occurred in the CI’s vehicle. After the controlled buy, the firearms and baggie of crystalline substance were turned over to law enforcement. The firearms were a SCCY CPX-2 9mm handgun and a FN FNS-9 Compact 9mm handgun, which had a defaced serial number. The crystalline substance was lab tested and confirmed to be at least 25 grams meth actual.
This case was investigated by the Greater Omaha Safe Streets Task Force (GOSSTF). GOSSTF is a task force with law enforcement personnel from the Federal Bureau of Investigation, Omaha Police Department, Lincoln Police Department, Lancaster County Sheriff’s Office, and the Nebraska State Patrol.
Knott County Man Sentenced for Methamphetamine TraffickingRead the Press Release
PIKEVILLE, Ky. – A Vest, Ky., man, Lee Rose, 37, was sentenced on Wednesday, by Chief U.S. District Judge Danny C. Reeves, to 216 months, for distribution of 50 grams or more of methamphetamine.
According to his plea agreement, between at least September 2023 and January 2024, Rose was selling methamphetamine in Knott County. Specifically, on September 27, 2023, law enforcement made a controlled purchase of over 50 grams of methamphetamine from Rose. At the time he sold this methamphetamine, Rose was on parole, for three separate prior convictions for felony trafficking in methamphetamine. Law enforcement then engaged in additional transactions where Rose provided methamphetamine, on October 4, 2023 (for 52 grams), on October 9, 2023 (for 13 grams), and January 9, 2024 (for 56 grams).
Under federal law, Rose must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Dale Richardson, Knott County Sheriff, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and Knott County Sheriff’s Office. Assistant U.S. Attorney Drew Trimble prosecuted the case on behalf of the United States.
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Jury Finds Searcy Landlord Guilty of Sex Trafficking by Force, Fraud, or Coercion and Possession with Intent to Distribute MethamphetamineRead the Press Release
LITTLE ROCK—A Searcy man has been convicted of sex trafficking by force, fraud, or coercion and possession with intent to distribute methamphetamine at the conclusion of a two-day trial. On Tuesday, a federal jury found Thomas Ray Kelso, 74, guilty on all four counts for which he was indicted: three counts of sex trafficking and one count of possession with intent to distribute methamphetamine.
The jury returned their verdict after deliberating for approximately two and a half hours. United States District Judge James M. Moody, Jr. presided over the trial and will sentence Kelso at a later date. Kelso faces a minimum sentence of 15 years in federal prison.
“This defendant intentionally lured vulnerable victims to live in his apartments so that he could coerce sexual acts in exchange for some of life’s essentials—shelter and electricity,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Once they fell behind on their rent or utility payments, or refused to continue to perform sexual acts, he turned off their power until they performed sexual acts with him. The conduct exhibited by Kelso is reprehensible and the jury’s verdict sends a clear message that these crimes will not be tolerated.”
Kelso was indicted by a federal grand jury on August 1, 2023. Prior to that, an investigation by the Central Arkansas Drug Task Force revealed that Kelso frequently distributed methamphetamine at an apartment complex in Searcy. Kelso, who owned the apartment complex, exploited female residents in the complex and forced them into performing sex acts in order to keep the power on their apartment, satisfy their rent obligations, or obtain illegal narcotics.
The investigation also revealed that when one woman refused Kelso’s sexual advances, he pulled her electricity meter to cut her power. Kelso also employed one woman to recruit other women for him so he could exploit them to engage in performing sexual acts on him.
The statutory penalty for each sex trafficking by force, fraud, or coercion carries a mandatory minimum sentence of not less than 15 years and no more than 30 years in prison. The statutory penalty for possession with intent to distribute carries a maximum sentence of not more than 20 years in prison. Each sex trafficking count carries a potential penalty of not more than a $250,000 fine and not less than five years to life of supervised release. The possession with intent to distribute count carries a potential penalty of not more than a $1,000,000 fine and not less than three years of supervised release.
The investigation was conducted by the Searcy Police Department and Central Arkansas Drug Task Force, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Shelby Shelton.
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Jefferson County Contractor Sentenced for Financially Exploiting Elderly WomanRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a contractor from Jefferson County, Missouri to five years of probation, 90 days of house arrest and 80 hours of community service for his role in the financial exploitation of an elderly St. Louis woman.
Austin James, of Hillsboro, was also ordered to repay $94,606 to the victim’s estate.
James aided in the crimes of Gino Rives, who the 80-year-old victim hired sometime before Jan. 17, 2021, to repair her roof for $7,500. She next hired Rives, who falsely claimed to be a licensed contractor, to renovate the interior of her home. Rives told the woman to write checks to himself and others, including James, that totaled more than $550,000 for renovations on the one-bedroom, one-bath, 1,100 square-foot home.
After being contacted by concerned bank employees due to the volume of checks being written on the victims account, the St. Louis City Building Inspector’s Office determined that any work done on the house was worth at most $50,000.
James received eight checks totaling $94,606 between January 2021 and July 2021 for purportedly performing work on the victim’s, kitchen, bedroom, bathroom, basement and foundation. Photos presented during the sentencing hearing proved that he did not perform the work for which he had been paid.
James, 27, of Hillsboro, pleaded guilty to one count of identity theft.
Rives, 36, of Edmundson, in St. Louis County, was sentenced in June to 87 months in prison and ordered to repay more than $1 million to elder fraud victims.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with concerns about suspected abuse or neglect of the elderly or disabled should contact Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210.
Inmate Who Enticed Child into Sexually Explicit Video from Behind Bars Sentenced to 28+ YearsRead the Press Release
A 26-year-old inmate who used a video-visitation kiosk to entice a teenager into making sexually explicit videos from behind bars was sentenced this week to more than 28 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Obadiah Fraser was indicted in September 2022 and pleaded guilty in May 2023 to production of child pornography. He was sentenced Wednesday to 340 months in federal prison by U.S. District Judge Brantley Starr, who also ordered him to register as a sex offender.
“This defendant willfully exploited a minor by coercing the victim into producing sexually explicit material without any regard for the mental and physical anguish his offenses would cause,” said Lester R. Hayes Jr., Special Agent in Charge of HSI Dallas. “I’m grateful for the collaborative efforts between HSI and our law enforcement partners in ensuring another child predator is brought to justice.”
While incarcerated in Dallas County Jail on an unrelated charge of possession of child pornography, Mr. Fraser used the jail’s video visitation kiosk to communicate with a 17-year-old girl.
Because the video visitation platform requires users to be 18 years of age or older, the child used Mr. Fraser’s cellmate’s wife’s account to communicate with him.
During their calls – which were monitored by a third-party company – Mr. Fraser instructed the girl to make sexually explicit videos of herself. When she hesitated, he yelled and cursed at her.
When Dallas County Jail officials confronted him about the videos, Mr. Fraser admitted to making them and said he knew the child was only 17.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas County Sheriff’s Office and the full cooperation of Dallas County Jail. Assistant U.S. Attorneys Sarah Douglas and Camille Sparks (fmr.) prosecuted the case.
UPDATE: The United States Attorney's Office initially misidentified the technology Mr. Fraser used to communicate with the victim. He spoke to her via a video-visitation kiosk inside the jail, not via a jail-issued tablet.
Indictment Charges California Man for Unlawfully Procuring Aircraft Components on Behalf of IranRead the Press Release
WASHINGTON – U.S.-Iranian national Jeffrey Chance Nader, 66, of Arcadia, California, was arrested on an indictment charging him with crimes related to the procurement of U.S.-manufactured aircraft components, including components used on military aircraft, in violation of U.S. economic sanctions and other federal laws. The charges were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, FBI Assistant Director David Sundberg of the Washington Field Office, and Assistant Secretary for Export Enforcement Matthew S. Axelrod.
According to the indictment, beginning at least in 2023, Nader and others conspired to purchase and export – and attempted to export – from the United States to Iran four types of aircraft components, totaling nearly three dozen individual pieces. Some of these components are for use on military aircraft operated by Iran’s armed forces, including the F-4 fighter jet.
Nader, acting on purchase orders he received from customers in Iran, would coordinate the purchase of relevant aircraft components with business associates in Iran, by which they would reach out to U.S.-based suppliers of such components. In several instances, Nader identified himself and his company, California-based Pro Aero Capital, to these U.S.-based suppliers as the end-user of these items. Victim companies in this procurement scheme were located across the United States.
Once the aircraft components were obtained, Nader attempted to export the items on multiple separate occasions. The items were then transshipped to the ultimate customer in Iran. None of the transactions discussed in the indictment were successfully exported; they were detained on export by a Special Agent with the Department of Commerce.
“Attacks by Iran and its proxies on U.S. allies in the Middle East and its ongoing supply of Russia with drones and other technology to be used in its illegal war against Ukraine demonstrate why we must do all that we can to stop Iran from acquiring U.S. parts, services, and technology.” said U.S. Attorney Matthew M. Graves. “The charges announced today represent the latest step in our ongoing effort to hold accountable those who illegally funnel goods and services to Iran and to deter others from doing the same.”
"Today's action demonstrates the Justice Department's commitment to keeping military-grade equipment out of the hands of the Iranian regime," said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”
“Today’s indictment alleges that this defendant circumvented U.S. sanctions and illegally procured aircraft components on behalf of Iran,” said FBI Assistant Director in Charge David Sundberg, of the Washington Field Office. “These violations not only undermine the impact of U.S sanctions but can also adversely affect national security. The FBI and our law enforcement partners at the Department of Commerce will continue to identify and disrupt those who seek to violate U.S. law and steal our technology on behalf of hostile nations.”
“Iran has no business using U.S.-manufactured parts and components to keep their planes and drones in the sky,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Stopping these items before they get to our adversaries – like we did here – reflects the real-world impact we’re having through the Disruptive Technology Strike Force.”
Nader was arrested yesterday and had an initial appearance in the Central District of California.
This case is being investigated by the FBI’s Washington Field Office and the Commerce Department's Bureau of Industry and Security. Significant assistance was provided by the FBI’s Los Angeles Field Office.
The case is being prosecuted by Assistant U.S. Attorney Steven B. Wasserman for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section. Significant assistance was provided by the U.S. Attorney’s Office for the Central District of California.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Arrested for Fraud, Money Laundering, and Tax OffensesRead the Press Release
KNOXVILLE, Tenn. – On August 8, 2024, a federal grand jury in Knoxville returned a 14-count indictment against Kenneth Francis Lee, 53, and Susan Amie Lee, 54, of Knoxville, TN. Kenneth Lee was indicted on seven counts of wire fraud, one count of money laundering, and three counts of tax offenses, in violation of 18 U.S.C. §§ 1343; 1956(h), 26 U.S.C. §§ 7201 and 7203. Susan Lee was indicted on three counts of money laundering offenses, in violation of 18 U.S.C. §§ 1956/1957. Kenneth and Susan Lee appeared in court today before the Honorable Judge Debra C. Poplin, United States Magistrate Judge and entered pleas of not guilty to the charges in the indictment. Trial has been set for October 22, 2024, before the Honorable Judge Thomas A. Varlan, United States District Court Judge in United States District Court, in Knoxville, Tennessee.
The filed indictment alleges that from March 2019 through August 8, 2024, Kenneth Francis Lee executed a scheme to defraud investors and obtain funds by falsely claiming that Lee was in litigation to sell a company to a large U.S. based investment firm. Victims wired funds to Kenny Lee for “legal fees” to help procure the settlement funds. In exchange, the victims were promised a percentage of the sale proceeds. The indictment alleges that there was no settlement and Lee used the funds for personal expenses, including funding his gambling habit. It is further alleged that Kenneth Lee did not report any of this income to the Internal Revenue Service (IRS), despite being required to do so. Susan Lee, for her part, is alleged to have assisted in collecting the fraud proceeds into accounts in her name and then spending those funds.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, IRS Supervisory Special Agent Meredith Louden, and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico made the announcement.
If convicted, Kenneth Lee faces a maximum term of 20 years in prison, a fine, restitution, forfeiture, and a maximum five-year term of supervised release for the fraud and money laundering offenses, and a maximum term of five years imprisonment, a fine, a term of supervised release and restitution. Susan Lee faces a maximum of 20 years in prison, a fine, or twice the amount involved in the money laundering transactions, forfeiture, and a maximum term of supervised release of three years.
This indictment is the result of an investigation by IRS Knoxville and FBI Knoxville.
Assistant U.S. Attorney Anne-Marie Svolto will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Steven Patrick Crabtree, 35, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on March 4, 2024, law enforcement officers responded to reports of an individual shooting at others outside of a Buffington Street residence in Huntington. Officers encountered Crabtree, who matched the description of the shooting suspect. Officers recovered a loaded Smith & Wesson model SD9VE 9mm pistol from Crabtree, and later determined that the firearm had been stolen.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Crabtree knew he was prohibited from possessing a firearm because of his prior felony convictions for conspiracy to deliver not less than 10 grams nor more than 100 grams of heroin in Wayne County Circuit Court on May 30, 2018, and attempt to commit a felony in Cabell County Circuit Court on March 21, 2017.
Crabtree is scheduled to be sentenced on November 25, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-86.
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Houston resident heads to prison for decades for trafficking minorRead the Press Release
HOUSTON – A 21-year-old man has been sentenced to federal prison for sex trafficking of a 16-year-old girl for commercial sex, announced U.S. Attorney Alamdar S. Hamdani.
Antonio Dario Osorio-Avelar aka Pressure pleaded guilty April 18, 2023.
U.S. District Judge George C. Hanks Jr. has now ordered Osorio-Avelar to serve 375 months in federal prison. In handing down the prison term, the court heard additional information about his significant criminal history. He also gave a different minor victim to a criminal associate. The court also heard testimony from the victim who, with grace and strength, detailed how Osorio-Avelar’s actions destroyed her familial relationships. In imposing the sentence, Judge Hanks noted although Osorio-Avelar attempted to claim immaturity, he still knew what he was doing and manipulated people and lost. Additionally, Judge Hanks noted Osorio-Avelar was a danger to those around him, and his actions will affect every relationship the victim has and will have.
Osorio-Avelar will also serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Restitution will be determined at a later date.
“Osorio-Avelar claimed immaturity caused him to force a 16-year-old to walk the Blade, a notorious area known for prostitution. There is a difference between immaturity and evil, and Osorio-Avelar is evil,” said Hamdani. “Those like Osorio-Avelar who take what they want by means of force or intimidation will never acquiesce to societal norms. Judge Hanks' 30-year sentence protects society’s most vulnerable from predators like Osario-Avelar.”
“With today’s sentence we have removed a dangerous predator from the community who used physical and sexual abuse, threats of violence and psychological manipulation to groom and control a minor victim and force her to engage in commercial sex for his own profit,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI). “The unspeakable atrocities that he committed to break her down and control every aspect of her life are truly abhorrent, but unfortunately are all too common among human traffickers. HSI remains committed to continue to work alongside our law enforcement partners to aggressively pursue the vile human trafficking organizations preying on our most vulnerable populations and to help connect victims with the trauma-informed services that they need to recover from their nightmare.”
Osorio-Avelar trafficked a 16-year-old minor female for commercial sex during January 2023, with barely any clothes on in freezing temperatures. After recruiting her in Dallas, he brought her and another adult female he controlled to Houston to engage in commercial sex.
Osorio-Avelar manipulated the minor victim, provided her with a phone to track her and frequently brandished a firearm in her presence.
Throughout the time the minor victim was with him, Osorio-Avelar supplied her with drugs and condoms. He directed when she ate, slept and worked. He also set a daily quota of $500 for her and coerced her into walking the “track” and appearing in online ads for commercial sex.
When he was not causing her to engage in commercial sex, Osorio-Avelar was having violent sex with her himself, knowing she was just 16 years old. He also had the minor victim record videos of herself engaging in sex acts and sell them. Osorio-Avelar took all proceeds.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of Houston Police Department, Texas Juvenile Justice Department - Office of Inspector General as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
State of Washington Man Charged with Possessing Destructive Devices
Eric Stubb, 69, Aberdeen, Washington, formerly of Wisconsin, is charged with possessing destructive devices. The indictment alleges that Stubb possessed the devices in the Western District of Wisconsin from approximately January 1, 2019, to February 1, 2023.
If convicted, Stubb faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation, Marathon County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Louis Glinzak is handling the case.
Onalaska Man Charged with Drug and Gun Crimes
Efrain Estrada, 30, Onalaska, Wisconsin, is charged in a seven-count indictment, with possessing and distributing fentanyl and methamphetamine, illegally possessing firearms and ammunition, and maintaining a drug trafficking place.
The indictment alleges that on July 25, 2024, Estrada: (1) attempted to possess 400 grams or more of fentanyl intended for distribution; (2) distributed fentanyl; (3) possessed 400 grams or more of fentanyl intended for distribution; (4) possessed 500 grams or more of methamphetamine intended for distribution; (5) possessed as a felon, five rifles, two shotguns, two handguns, and multiple types of ammunition; (6) possessed a firearm in furtherance of his drug trafficking crimes; and (7) maintained a drug trafficking place.
If convicted of the drug charges involving 400 or 500 grams, Estrada faces minimum penalties of 10 years and maximum penalties of life in prison. If convicted of the felon in possession of firearms charge, he faces a maximum penalty of 15 years in prison. If convicted of the charge alleging that he possessed a firearm in furtherance of his drug trafficking crimes, he faces a minimum penalty of 5 years in prison and a maximum penalty of life, and the sentence imposed must run consecutively to any other prison term. Both the distribution charge and the maintaining a drug trafficking charge carry a maximum penalty of 20 years.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charges against Estrada are the result of an investigation by the United States Postal Inspection Service, Wisconsin Department of Justice, Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, La Crosse Sheriff’s Office, La Crosse Police Department, and the Madison Police Department. Assistant U.S. Attorneys David Reinhard and Steven Ayala are handling the case.
Madison Man Charged with Illegally Possessing Firearms, Including Machinegun
Donald R. Spivey, Jr., 22, Madison, Wisconsin, is charged with possessing firearms as a felon and possessing a machinegun. The indictment alleges that Spivey possessed a loaded Glock 19 handgun and a loaded Glock 20 handgun on July 17, 2024. The indictment further alleges that the Glock 20 handgun that Spivey possessed had a machine gun conversion device. A machine gun conversion device is an illegal after-market device that converts a semi-automatic handgun into a fully functioning machinegun.
If convicted, Spivey faces a maximum penalty of 15 years in prison on the felon in possession charge and a maximum of 10 years on the machine gun charge.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charges against Spivey are the result of an investigation by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the case.
Janesville Man Charged with Fentanyl Trafficking
D'Angelo Chenoweth, 27, Janesville, Wisconsin, is charged with distributing fentanyl. The indictment alleges that Chenoweth distributed fentanyl on February 15, 2024, and distributed 40 grams or more of fentanyl on February 29, 2024.
If convicted of distributing 40 grams or more of fentanyl, Chenoweth faces a minimum penalty of 5 years and a maximum penalty of 40 years in prison. The other distribution charge carries a maximum penalty of 20 years in prison.
The charges against Chenoweth are the result of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Wisconsin Department of Justice Division of Criminal. Assistant U.S. Attorney Louis Glinzak is handling the case.
Georgia Man Indicted for Pandemic-Related Fraud and Stolen Identity Tax Refund FraudRead the Press Release
ATLANTA - Mycheal Arnell Brady, also known as “Michael Brady,” has been indicted on federal charges of wire fraud and aggravated identity theft, for stealing COVID-19 relief funds and submitting fraudulent federal tax refunds using the stolen identities of multiple individuals. Brady has also been charged with possession of unauthorized access devices that contained dozens of the identity theft victims’ personal information, including their Social Security numbers.
“Brady’s alleged scheme defrauded programs designed to support legitimate businesses struggling during the COVID-19 relief pandemic,” said U.S. Attorney Ryan K. Buchanan. “To further perpetrate his fraud, he also allegedly used stolen personal information from unsuspecting victims to file fraudulent tax returns and obtain refunds.”
“This case demonstrates our unwavering commitment to protecting the integrity of COVID-19 relief programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Fraudulent activities undermine the purpose of these essential programs, designed to support legitimate small businesses struggling during the pandemic. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to ensuring that those who exploit federal programs are held accountable.”
“Mycheal Brady’s alleged theft of funds under the CARES Act and other criminal activity led to his indictment today,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “It is only a matter of time before IRS Criminal Investigation special agents and our law enforcement partners uncover the crimes of many others who defrauded the American people during the COVID-19 pandemic.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Mycheal Brady allegedly submitted several fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to authorized lenders and the Small Business Administration. The applications contained fraudulent information regarding gross revenues and fake employees at his various companies and sought over $1.9 million in funding. He also allegedly submitted fraudulent tax forms and bank statements to support his loan applications. Brady allegedly received more than $330,000 from the fraudulent EIDL and PPP loans, which were not used for authorized business purposes.
In connection with his fraudulent schemes, Brady also allegedly possessed dozens of Social Security numbers belonging to the stolen identity theft victims, which Brady then used to apply for federal tax refunds. The victims were not aware of Brady’s use of their personal identifying information nor did they consent to his filing of their federal tax refunds on their behalf.
Mycheal Arnell Brady, also known as “Michael Brady,” 36, of Peachtree City, Georgia was arraigned before U.S. Magistrate Judge J. Christopher C. Bly on August 5, 2024. He was indicted by a federal grand jury on July 23, 2024. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation and U.S. Small Business Administration Office of Inspector General.
Assistant U.S. Attorneys Natasha Cooper and Samir Kaushal are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Gallatin Gateway man unlawfully in the country admits illegal possession of firearmRead the Press Release
MISSOULA — A Gallatin Gateway man accused of illegally possessing firearms and ammunition because he was in the United States unlawfully admitted to a firearms charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Oscar Enrique Ruiz Rojas, 25, pleaded guilty to prohibited person in possession of firearms and ammunition. Rojas faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Dec. 18 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Rojas was detained pending further proceedings.
In court documents, the government alleged that law enforcement was investigating Rojas for cocaine distribution and observed him outside his house with a pistol on his hip on two days in April. On April 24, law enforcement served a search warrant on his residence and located several firearms and ammunition. Rojas admitted that he had been in the United States illegally for the past six years after crossing the southern border at Nogales, Arizona. Rojas further stated that he had purchased a .22-caliber firearm for $400 from an individual.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Four Flight Attendants Plead Guilty to Smuggling Drug Money to the Dominican RepublicRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that four flight attendants charged in connection with smuggling drug money to the Dominican Republic have pled guilty to operating an unlicensed money transmission business. SARAH VALERIO PUJOLS pled guilty before U.S. District Judge Naomi Reice Buchwald on July 23, 2024; CHARLIE HERNANDEZ pled guilty before U.S. District Judge Ronnie Abrams on July 25, 2024; EMMANUEL TORRES pled guilty before U.S. Magistrate Judge Sarah Cave on August 12, 2024; and JAROL FABIO pled guilty before U.S. District Judge Arun Subramanian on August 13, 2024.
U.S. Attorney Damian Williams said: “These four flight attendants abused their privileges as flight attendants to move money for drug traffickers. My Office is committed to staunching the illicit flow of narcotics proceeds in all of its forms. These guilty pleas show that the sky is not the limit when it comes to law enforcement’s reach.”
According to the allegations in the Complaints, the Informations, court filings, and statements made in Court:
During the relevant period, all of the defendants were employed as flight attendants with different international airlines that operated routes between New York City and the Dominican Republic. All of the defendants had “Known Crewmember” (“KCM”) status with the Transportation Security Administration, which allowed them to pass through a special security lane at John F. Kennedy International Airport and other airports with less scrutiny than normal passengers.
Before or in about October 2021, a cooperating witness (“CW-1”) operated a significant money laundering organization (“MLO”) in New York City, specializing in the movement of cash proceeds from narcotics sales from New York City to the Dominican Republic. One method that CW-1 used in furtherance of their MLO was corrupting flight attendants, like the defendants, who worked routes between New York City and the Dominican Republic. In exchange for a fee – which generally amounted to a small percentage of the amount of money that they would be smuggling – the defendants accepted bulk cash from CW-1 in New York City, got it past airport security via the KCM lane, and passed it off to other members of CW-1’s MLO in the Dominican Republic, including another cooperating witness (“CW-2”). After CW-1 and CW-2 began cooperating with law enforcement, Homeland Security Investigations (“HSI”) and the New York City Police Department (“NYPD”) orchestrated a number of sting operations in which CW-1 provided law enforcement funds represented to be narcotics proceeds to the defendants, who then smuggled it down to the Dominican Republic and handed it off to CW-2, who returned the funds to law enforcement.
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PUJOLS, 42, of the Bronx, New York; HERNANDEZ, 42, of West New York, New Jersey; EMMANUEL TORRES, 34, of Brooklyn, New York; and JAROL FABIO, 35, of New York, New York, each respectively pled guilty to one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison. PUJOLS will be sentenced by Judge Buchwald on November 14, 2024; HERNANDEZ will be sentenced by Judge Abrams on November 15, 2024; TORRES will be sentenced by U.S. District Judge Colleen McMahon on January 6, 2025; and FABIO will be sentenced by Judge Subramanian on November 15, 2024. As part of their guilty pleas, PUJOLS, HERNANDEZ, TORRES, and FABIO each agreed to forfeit property involved in their commission of the offense.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of HSI and the NYPD.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Jaclyn Delligatti are in charge of the prosecution.
Former Town Clerk and Town Council Member Pleads Guilty to Stealing More Than $195,000 from Town of CusickRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Luke Michael Servas, a former public official for the Town Cusick, Washington, pleaded guilty to Bank Fraud in connection with embezzling Town funds. United States District Judge Thomas O. Rice accepted Servas’s guilty plea and scheduled a sentencing hearing for November 13, 2024, in Spokane, Washington.
According to the plea agreement and other court filings, Servas embezzled more than $195,000 while employed as the Town Clerk for the town of Cusick, Washington between October 2022 and March 2023. During that time period, Servas was also an elected member of the town council.
Like many cities and towns, Cusick residents elect a town council, which selects a town clerk. The clerk is responsible for managing Cusick’s finances and financial accounts. Cusick’s account also had two credit cards issued to make expenditures on behalf of the town: one issued to Cusick’s elected mayor, and one issued to Servas as town clerk.
Servas fraudulently and without authority used the mayor’s town credit card, as well as his own town credit card, to embezzle and transfer more than $190,000 in public town funds from Cusick’s bank account to PayPal accounts owned and controlled by Servas and his spouse, and to a cryptocurrency account owned and controlled by Servas.
In March of 2023, other town officials expressed concern that funds were missing from the town’s account. Servas contacted the Pend Oreille County Sheriff’s Office to report that between $150,000 and $200,000 had been stolen from the Town of Cusick’s operating bank account. Servas indicated that these funds were stolen using the mayor’s credit card account and falsely stated that only the mayor had access to the account. After making this report, Servas wrote a fraudulent $4,961 check from Cusick’s account to himself, forged the mayor’s signature as well as that of another town official, and cashed the check on or about March 20, 2023.
“Mr. Servas not only carried out a fraudulent scheme to rob a town of its financial resources, but when his colleagues noticed the money missing, Mr. Servas filed a report with law enforcement to hide his theft.” stated U.S. Attorney Waldref. “Mr. Servas took these actions while an elected public official with a moral duty and legal obligation to protect that money. Our communities trust elected officials to serve others, rather than to look after only their own self-interest. When elected officials abuse this trust by committing theft and lining their own pockets with taxpayer money, these officials devastate our communities and undermine our democratic system of government. I commend the exceptional work done by the FBI and the Washington State Auditor’s Office to root out the fraud. We will continue to work closely with our law enforcement partners to expose and prosecute public corruption, self-dealing, and fraud.”
“I’m sure a small town like Cusick could have used the nearly $200,000 Mr. Servas embezzled,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Even more disturbing, Mr. Servas served in a position of trust as the Town Clerk when he committed his fraud. Investigating the corruption of public officials remains one the FBI’s most important priorities.”
This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency, with investigative and logistical support from the Pend Oreille County Sheriff’s Office and the Washington State Auditor’s Office. This case is being prosecuted by Assistant United States Attorney Dan Fruchter.
Former San Luis Obispo County Sheriff’s Deputy Sentenced to Seven Months in Federal Prison for Abusing Jail Inmate While on DutyRead the Press Release
LOS ANGELES – A former San Luis Obispo County sheriff’s deputy was sentenced today to seven months in federal prison for abusing a county jail inmate by dragging the victim by her hair on the ground from one cell by several feet and then throwing her into another jail cell.
Joshua Fischer, 42, of Grover Beach, was sentenced by United States District Judge André Birotte Jr.
At today’s hearing, Judge Birotte said Fischer’s actions toward the victim showed a “level of callousness” and “disdain” toward the victim and that his use of force was “unreasonable.”
Fischer pleaded guilty on April 2 to one misdemeanor count of deprivation of rights under color of law. As part of his plea agreement, Fischer agreed to not seek future employment as a sworn law enforcement officer.
Fischer was a sworn law enforcement officer and San Luis Obispo County Sheriff’s Office senior correctional deputy assigned to work at the Intake Release Center in the city of San Luis Obispo between January 2017 and December 2018.
While on duty on November 18, 2018, Fischer instructed the victim, a jail inmate, to exit her cell, which she did. Fischer then directed her to enter an adjacent cell. After arguing with Fischer, the victim, who was shirtless, turned around, crossed her arms across her chest, and started to re-enter her original cell.
Fischer forcibly grabbed the victim by her hair and pulled her to the ground. He then dragged the victim across the floor by her hair several feet. Fischer then flung the victim, again by her hair, into an adjacent cell. After Fischer closed the cell door, the victim huddled in the corner of the cell.
Fischer then authored a report about the incident and saved it as “11-18-18 [victim’s last name] what a drag” on a San Luis Obispo County Sheriff’s Office computer.
In his plea agreement, Fischer admitted that he knew his use of force during the November 2018 incident was unreasonable and unnecessary. He also admitted that he acted willfully, intending to deprive the victim of her right to be free from the use of unreasonable and unnecessary force by a law enforcement officer.
Prior to the filing of charges in this case, the San Luis Obispo County Sheriff’s Office terminated Fischer’s employment.
The FBI investigated this matter with assistance from the San Luis Obispo County Sheriff’s Office.
Assistant United States Attorneys Thomas F. Rybarczyk and Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.
Former Postal Employee Pleads Guilty to Four Counts of Workers’ Compensation FraudRead the Press Release
UTICA, NEWYORK -- Christopher Gleason, age 36, of Auburn, New York appeared before U.S. District Court Judge David N. Hurd today and pleaded guilty to four counts of false statement to obtain federal employees’ compensation, announced United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge, United States Postal Service, Office of Inspector General - Northeast Region.
Gleason was employed by the U.S. Postal Service as a letter carrier. On January 20, 2022, Gleason sprained his ankle while delivering mail. Shortly thereafter, Gleason began receiving workers’ compensation benefits administered by the U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP). To continue receiving benefits, Gleason was required to electronically complete, sign and file a Claim for Compensation Form CA-7 biweekly. On each form, Gleason was instructed to report any and all earnings from employment outside his federal job during the period claimed in the CA-7. The defendant admitted to filing multiple false claims affirming that he had not worked outside of his federal job, when the defendant was in fact working and earning income performing construction work while collecting workers’ compensation benefits. As a result of the false statements, Gleason received benefits totaling $14,858.94.
At sentencing, scheduled for December 11, 2024, Gleason faces up to 5 years in prison, a fine of up to $250,000.00 a term of supervised release of up to 3 years, and Gleason will be required to pay restitution in the amount of the fraudulently obtained benefits. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
The United States Postal Service, Office of Inspector General, and the U.S. Department of Labor investigated this case. Assistant U.S. Attorney Tamara Thomson is prosecuting the case.
Former Pennsylvania Attorney Pleads Guilty to Tax EvasionRead the Press Release
A former Luzerne County, Pennsylvania, attorney pleaded guilty today to tax evasion for calendar year 2016 in connection with substantial legal fees he earned while associated with The Powell Law Group P.C., a Luzerne County-based law firm. Powell was released on an unsecured bond while awaiting his sentencing.
According to court documents and statements made in court, Robert Powell sought to evade a substantial tax that was due and owing the IRS for 2016 by using nominee bank accounts, causing an accountant to file a request for a filing extension that falsely reported zero estimated tax liability for 2016 and making false statements during an IRS audit in 2019.
Powell’s license to practice law was suspended in 2009 and he was subsequently disbarred in 2015. As a result, in 2009, he relinquished his ownership of The Powell Law Group. He nevertheless retained the right to collect 90% of the remainder of any future fees collected by the firm after the payment of firm expenses. Specifically, The Powell Law Group represented thousands of plaintiffs in a mass tort litigation that settled for approximately $5.15 billion in 2015 and The Powell Law Group was expected to receive approximately $120 million in attorneys’ fees from that settlement.
Prior to the attorneys’ fees disbursement, The Powell Law Group and its co-counsel used those future legal fees as collateral to obtain a series of loans totaling over $125 million. Instead of depositing the loan proceeds into The Powell Law Group’s bank accounts and using them to pay firm expenses, Powell directed the loans to nominee bank accounts that were under his control. He then used the loan proceeds for his personal debts and expenses as well as his and his former law partner’s personal benefit.
In June 2016, most of the attorneys’ fees were finally disbursed and the loans were repaid. Nevertheless, Powell did not file a personal income tax return and pay taxes on the receipt of the fees in that year. After the initial disbursement and through October 2019, an additional $12 million in attorneys’ fees was distributed and The Powell Law Group’s share continued to be directed into nominee bank accounts that Powell controlled. Powell personally received an additional $3.6 million of the fees during that time.
For the full period of tax years 2010 through 2022, Powell did not file income tax returns despite receiving and spending other personal income. Rather, he willfully attempted to evade taxes due and owing by him to the United States.
In 2019, when the IRS commenced an audit of his tax liabilities, Powell made false statements to the interviewing revenue agents to conceal his income and expenditures for tax years 2014 through 2016. Namely, Powell falsely stated that his only source of funds were loan advances, that he and his spouse did not have signature authority or control over other bank accounts and that he had no ownership in any corporations.
Ultimately, as alleged by the government, Powell received millions in income over the relevant time period resulting in substantial taxes that were due but not paid to the United States.
In the plea agreement filed with the Court, Powell agreed to pay full restitution to the IRS in an amount to be determined by the Court at a later date.
“Powell engaged in a lengthy scheme to hide his income and not pay taxes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “And when audited by the IRS, rather than step up, acknowledge his illegal conduct and pay what he owed, he chose to double down and lie to the revenue agents who interviewed him.”
“For over a decade Robert Powell failed to file personal income tax returns and executed a sophisticated scheme to evade paying substantial taxes that were due and owing the IRS from massive legal fees his firm earned,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “The brazenness of his conduct included using nominee bank accounts, reporting zero estimated tax liability for the years in question and repeatedly lying to IRS auditors attempting to unravel the scheme. I want to thank all the IRS agents, prosecutors and support staff for their hard work that will allow justice to be finally served in this important case.”
“Federal income tax compliance should be equally shared among all Americans,” said Acting Special Agent in Charge Denise Leuenberger of the IRS Criminal Investigation (IRS-CI) Philadelphia Field Office. “Defrauding the government with an elaborate scheme to underreport taxable income is unlawful. Mr. Powell’s plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who evade their federal income tax responsibilities.”
IRS-CI is investigating the case.
Trial Attorney Alexandra Fleszar of the Tax Division and Senior Litigation Counsel Phillip J. Caraballo and Criminal Division Chief Bruce D. Brandler for the Middle District of Pennsylvania are prosecuting the case.
Powell SOF.pdfFormer Luzerne County Attorney Pleads Guilty to Tax EvasionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania and the Department of Justice, Tax Division announced that Robert J. Powell, age 65, of Palm Beach, Florida, appeared in federal district court today and pled guilty to a one-count criminal information charging him with tax evasion for calendar year 2016, in connection with substantial legal fees he earned while associated with The Powell Law Group, P.C., a Luzerne County-based law firm. Powell was released on an unsecured bond while awaiting his sentencing.
According to court documents and statements made in court, Powell sought to evade a substantial tax that was due and owing the IRS for 2016 by using nominee bank accounts, causing an accountant to file a request for a filing extension that falsely reported zero estimated tax liability for 2016, and making false statements during an IRS audit in 2019.
Attached hereto is a detailed statement of facts that accompanied the guilty plea. Powell’s license to practice law was suspended in 2009 and he was subsequently disbarred in 2015. As a result, in 2009 he relinquished his ownership of The Powell Law Group. He nevertheless retained the right to collect 90% of the remainder of any future fees collected by the firm after the payment of firm expenses. Specifically, The Powell Law Group represented thousands of plaintiffs in a mass tort litigation that settled for approximately $5.15 billion in 2015 and The Powell Law Group was expected to receive approximately $120 million in attorneys’ fees from that settlement.
Prior to the attorneys’ fees disbursement, The Powell Law Group and its co-counsel used those future legal fees as collateral to obtain a series of loans totaling over $125 million. Instead of depositing the loan proceeds into the Powell Law Group's bank accounts and using them to pay firm expenses, Powell instead directed the loans to nominee bank accounts that were under his control. He then used the loan proceeds for his personal debts and expenses, as well as his and his former law partner’s personal benefit.
In June 2016, most of the attorneys’ fees were finally disbursed and the loans were repaid. Nevertheless, Powell did not file a personal income tax return and pay taxes on the receipt of the fees in that year. After the initial disbursement and through October 2019, an additional $12 million in attorneys’ fees was distributed and The Powell Law Group’s share continued to be directed into nominee bank accounts that Powell controlled. Powell personally received an additional $3.6 million of the fees during that time.
Indeed for the full period of tax years 2010 through 2022, Powell did not file income tax returns for those years despite receiving and spending other personal income. Rather he willfully attempted to evade taxes due and owing by him to the United States.
In 2019, when the IRS commenced an audit of his tax liabilities, Powell made false statements to the interviewing revenue agents to conceal his income and expenditures for tax years 2014 through 2016. Namely, Powell falsely stated that his only source of funds were loan advances, that he and his spouse did not have signature authority or control over other bank accounts, and that he had no ownership in any corporations.
Ultimately, as alleged by the government, over the relevant time period Powell received millions in income resulting in substantial taxes that were due but not paid to the United States.
In the plea agreement filed with the Court, Powell agreed to pay full restitution to the IRS in an amount to be determined by the Court at a later date.
“For over a decade Robert Powell failed to file personal income tax returns and executed a sophisticated scheme to evade paying substantial taxes that were due and owing the IRS from massive legal fees his firm earned, said U.S. Attorney Karam. “The brazenness of his conduct included using nominee bank accounts, reporting zero estimated tax liability for the years in question, and repeatedly lying to IRS auditors attempting to unravel the scheme. I want to thank all the IRS agents, prosecutors, and support staff for their hard work that will allow justice to be finally served in this important case.”
“Federal income tax compliance should be equally shared among all Americans,” said Denise Leuenberger, Acting Special Agent in Charge, IRS Criminal Investigation, Philadelphia Field Office. “Defrauding the government with an elaborate scheme to underreport taxable income is unlawful. Mr. Powell’s plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who evade their federal income tax responsibilities.”
The Acting Deputy Assistant Attorney General of the Justice Department's Tax Division, Stuart M. Goldberg, said, “Powell engaged in a lengthy scheme to hide his income and not pay taxes. And when audited by the IRS, rather than step up, acknowledge his illegal conduct, and pay what he owed, he chose to double down and lie to the revenue agents who interviewed him.”
The case was investigated by the Scranton office of the Internal Revenue Service, Criminal Investigation Division. Senior Litigation Counsel Phillip J. Caraballo, Tax Division Trial Attorney Alexandra Fleszar, and Criminal Division Chief Bruce D. Brandler are prosecuting the case.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, a fine and restitution. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Statement of Facts
Defendant Robert J. Powell was an attorney, businessman, and investor. Robert J. Powell was a resident of Luzerne County, Pennsylvania, until in or about 2009, when he relocated to Palm Beach County, Florida.
Until on or about August 31, 2009, Robert J. Powell was the founder and owner of The Powell Law Group, P.C. (“Powell Law Group”), a law firm located in Luzerne County, Pennsylvania, and incorporated in the Commonwealth of Pennsylvania in or about December 2002. In or about August 2009, Robert J. Powell’s license to practice law was suspended by the Commonwealth of Pennsylvania. Robert J. Powell subsequently was disbarred from the Bar of the Commonwealth of Pennsylvania, in or about January 2015.
Prior to Robert J. Powell’s suspension from the practice of law, he owned 90% of the shares of the Powell Law Group. The remaining 10% of shares were owned by his partner, attorney Jill Moran. On or about August 31, 2009, Robert J. Powell relinquished his directorship of the Powell Law Group, and Jill Moran became the Managing Director and President of the Powell Law Group. Robert J. Powell also surrendered his shares in the Powell Law Group, leaving Jill Moran the sole shareholder.
Beginning prior to Robert J. Powell’s suspension from the practice of law and incarceration, the Powell Law Group served as counsel for approximately 4,300 plaintiffs in a mass tort litigation (the “Mass Tort Litigation”). On or about September 15, 2009, Robert J. Powell and Jill Moran entered a Memorandum of Understanding whereby they agreed that any future attorneys’ fees from the Mass Tort Litigation would first be applied to pay the Powell Law Group’s expenses, with 90% of the remaining fees disbursed to Robert J. Powell, and 10% of the remaining fees disbursed to Jill Moran. In or about April 2014, the Mass Tort Litigation settled for approximately $5.15 billion. Of that settlement, the Powell Law Group expected to receive attorneys’ fees in excess of approximately $120 million.
In or about May 2014, the Powell Law Group and two co-counsel law firms entered a loan agreement with Financing Company #1. Pursuant to that loan agreement, Financing Company #1 agreed to loan approximately $100 million to the Powell Law Group and the two co-counsel law firms. The loan was collateralized by the anticipated attorneys’ fees from the Mass Tort Litigation. As Robert J. Powell had relinquished his ownership of the Powell Law Group, he provided Jill Moran the loan agreement with Financing Company #1, to sign on behalf of the Powell Law Group.
Pursuant to the loan agreement with Financing Company #1, and after the payment of fees and expenses, the Powell Law Group and the two co-counsel law firms were each designated to receive approximately $33 million in loan proceeds. Of the $33 million in loan proceeds designated for the Powell Law Group, approximately $9 million was sent by Financing Company #1 to three financial institution creditors holding outstanding debt-related judgments against Robert J. Powell, the Powell Law Group, and Jill Moran. The remaining Powell Law Group loan proceeds of approximately $24 million were deposited into an account held in the name of Company #1.
Robert J. Powell arranged for the Powell Law Group’s loan proceeds to be held in Company #1’s bank account, instead of transferring those funds to the Powell Law Group’s bank accounts. Robert J. Powell had the ability to request distributions of the Powell Law Group loan proceeds held in Company #1’s bank account. Robert J. Powell used funds from the Powell Law Group loan proceeds held in Company #1’s bank account for his own personal expenses and investments, including to pay down personal debts accrued by Robert J. Powell.
In or about May 2015, the Powell Law Group and the two co-counsel law firms refinanced the loan agreement with Financing Company #1, by entering an agreement with Financing Company #2. Pursuant to that agreement, Financing Company #2 agreed to repay Financing Company #1, and to distribute an additional approximate $7.6 million to the Powell Law Group and the two co-counsel law firms. The funds distributed by Financing Company #2 were collateralized by the anticipated attorneys’ fees from the Mass Tort Litigation. As Robert J. Powell had relinquished his ownership of the Powell Law Group, he provided Jill Moran with the agreement with Financing Company #2, to sign on behalf of the Powell Law Group.
Financing Company #2 distributed the additional approximate $7.6 million to a bank account held in the name of Company #1. Robert J. Powell retained those funds in a bank account held in the name of Company #1, instead of transferring those funds to the Powell Law Group’s bank accounts.
On or about April 8, 2016, the Powell Law Group and the two co-counsel law firms entered a second amendment to the agreement with Financing Company #2. As Robert J. Powell had relinquished his ownership of the Powell Law Group, he provided Jill Moran with the second amendment, to sign on behalf of the Powell Law Group. Pursuant to the second amendment, Financing Company #2 distributed an additional $3 million to Company #1’s bank account. Robert J. Powell used funds from the $3 million for personal obligations and expenses.
Between in or about February and June 2016, the trustee overseeing the Mass Tort Litigation (the “Tort Trustee”) repaid Financing Company #2 in full, by distributing approximately $125,849,595.59 in attorneys’ fees due to the Powell Law Group. Following the payoff of Financing Company #2, all additional attorneys’ fees due to the Powell Law Group from the Mass Tort Litigation were distributed by the Tort Trustee to a bank account held in the name of a co-counsel law firm. Between in or about June 2016 to October 2019, the Tort Trustee distributed in excess of approximately $12 million to the co-counsel law firm’s bank account. Nearly all of those approximate $12 million were in turn transferred to Company #1’s bank account.
Of that approximate $12 million in additional attorneys’ fees distributed by the Tort Trustee, Robert J. Powell personally received in excess of approximately $3.6 million, between in or about June 2016 through August 2019. Robert J. Powell personally received those funds from Company #1’s bank account, including by requesting that Company #1 transfer funds to a bank account under Robert J. Powell’s control, but held in the name of 656 Hermitage Circle LLC. Robert J. Powell used the funds held in 656 Hermitage Circle LLC’s bank account for his own personal expenses and investments.
Robert J. Powell failed to file personal income tax returns for tax years 2010 through 2022, despite receiving and spending personal income during those years, and willfully attempted to evade taxes due and owing by him to the United States. For tax years 2015 through 2019, Robert J. Powell’s accounting professionals filed with the Internal Revenue Service (“IRS”) tax filing extensions that reported zero estimated tax liabilities, on the following dates:
- a tax filing extension for tax year 2015, filed on or about April 14, 2016;
- a tax filing extension for tax year 2016, filed on or about April 12, 2017;
- a tax filing extension for tax year 2017, filed on or about March 17, 2018;
- a tax filing extension for tax year 2018, filed on or about March 10, 2019; and
- a tax filing extension for tax year 2019, filed on or about July 9, 2020.
In or about August 2019, the IRS notified Robert J. Powell that he was the subject of an IRS audit. On or about October 22, 2019, Robert J. Powell was interviewed by IRS revenue agents in the course of the audit. During that interview, Robert J. Powell made several false statements to the IRS revenue agents, to conceal his income and expenditures during tax years 2014, 2015, and 2016. Those false statements included:
- that his only sources of funds were loan advances;
- that he and his spouse did not have signature authority or control over any other bank accounts; and
- that he had no ownership in any corporations.
Former Attorney Sentenced to 25 Years in Federal Prison on Embezzlement and Fraud Charges in Connection with Collapse of Washington Federal BankRead the Press Release
CHICAGO — A former attorney has been sentenced to 25 years in federal prison for embezzlement and fraud in connection with the failure of Washington Federal Bank for Savings in Chicago.
ROBERT M. KOWALSKI served a key role in an embezzlement scheme at Washington Federal. The bank, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that it was insolvent and had at least $66 million in nonperforming loans. Much of the money was transferred to Kowalski, who at the time was a licensed attorney, and two real estate developers without all of the required documentation and often without any documentation whatsoever. The embezzled funds were falsely identified in the bank’s records as loan disbursements, even though the bank never required Kowalski to repay the money.
After the collapse of the bank, the Federal Deposit Insurance Corp. attempted to collect the money and properties that Kowalski obtained as part of the embezzlement scheme. Kowalski responded by filing a fraudulent bankruptcy case, in which he attempted to conceal his possession of numerous assets. To substantiate numerous misrepresentations in his bankruptcy filings and avoid paying taxes, Kowalski filed false corporate and personal tax returns for several years. He also failed to file any returns at all for two years.
Kowalski, 62, of Robbins, Ill., was convicted last year of embezzlement, bankruptcy fraud, and tax fraud charges. In addition to the prison term, U.S. District Chief Judge Virginia M. Kendall on Tuesday ordered Kowalski to pay restitution of $7.2 million to the FDIC and $424,047 to the IRS.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office; Korey Brinkman, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.
The federal criminal investigation into the bank’s collapse led to charges against a total of 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees. Four defendants were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Robert Kowalski’s sister, JAN R. KOWALSKI, also formerly an attorney, pleaded guilty and is serving a two-and-a-half-year prison sentence for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Former Air Force Chief Master Sergeant Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
Wilmington, Del. – Paul Michael Wilcox, 42, formerly a Chief Master Sergeant stationed at Dover Air Force Base, pleaded guilty today to possessing child sexual abuse material (“CSAM”), announced David C. Weiss, U.S. Attorney for the District of Delaware. Chief Judge Colm F. Connolly, U.S. District Court for the District of Delaware, accepted the plea.
According to statements made in open court, the investigation into Wilcox began after law enforcement received a cyber tip from the National Center for Missing & Exploited Children reporting that a Google account holder uploaded CSAM to the Internet in May 2023. Law enforcement identified Wilcox as the owner and user of the Google account. Law enforcement also searched the account and confirmed that Wilcox had uploaded CSAM to his Google account.
U.S. Attorney Weiss stated, “Prosecuting individuals who choose to prey upon and exploit the most vulnerable members of our community remains a priority for my office. We will work tirelessly with our law enforcement partners to expose the perpetrators of these heinous crimes and bring them to justice.”
The United States Air Force Office of Special Investigations investigated this case, with the assistance of Homeland Security Investigations and Delaware Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Claudia L. Pare is prosecuting this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos. 23.63.