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Wednesday 26 June 2024
Former Newark Deputy Mayor and Director of Newark Department of Economic and Housing Development Admits Scheming with Two Newark Businessmen to Obtain BribesRead the Press Release
NEWARK, N.J. – A former city of Newark official who served as deputy mayor and director of the Newark Department Economic and Housing Development (DEHD) and served as executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) today admitted conspiring with two Newark business owners to obtain corrupt payments intended to influence and reward him for assisting the business owners with the acquisition and redevelopment of various Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.
Carmelo G. Garcia, 49, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo to three counts of an information charging him with conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization.
U.S. Attorney Philip R. Sellinger“As he admitted in court, Carmelo Garcia set up a scheme to receive cash and jewelry in exchange for using his influence in favor of private business interests, defrauding the people of Newark of their right to his honest services. In doing so, he violated the public trust in order to line his own pockets. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose independent judgment is corrupted by greed.”
“We entrust public officials to act in the best interest of the people they serve, not to abuse their position for their own personal gain,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Today, Carmelo Garcia admitted he violated the citizens of Newark’s trust when as deputy mayor he accepted bribes to advance and influence private real estate interests. FBI Newark will continue to see that corrupt public officials face the punishment they deserve in the criminal justice system.”
“Carmelo Garcia abused his position of trust to oversee HUD grant money that was intended to provide housing assistance and improve the community in which he served,” Special Agent in Charge Vicky Vazquez, U.S. Department of Housing and Urban Development, Office of Inspector General, said. “He willfully devised an egregious kickback scheme resulting in the theft of critical taxpayer dollars, placing the integrity of HUD’s programs at risk, and violating the trust of the communities who rely on them. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
According to documents filed in the case and statements made in court:
From 2017 through April 2019, while serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), Garcia sought and received significant monetary payments and other benefits from Frank Valvano Jr., Irwin Sablosky, and others in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Valvano and Sablosky. These matters included obtaining preliminary designation letters for Valvano and Sablosky and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests. In addition to cash, Garcia also received jewelry, including multiple high-end watches and chains, from Valvano and Sablosky’s pawnbroker and jewelry business.
Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant.
E-mails obtained by law enforcement further show the official actions, assistance, and influence Garcia provided in violation of his duties in exchange for the cash and other non-cash benefits he received from Valvano and Sablosky and the actions that Valvano and Sablosky were seeking from Garcia in his capacity as a Newark official and NCEDC executive for those benefits.
The honest services fraud conspiracy and honest services fraud charges in Counts One and Two each carry a maximum potential penalty of 20 years in prison. The bribery charge in Count Three carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. As part of Garcia’s guilty plea, he agreed to criminal forfeiture of the $25,000 corrupt cash payment and administrative/civil forfeiture of the jewelry that he obtained from the scheme. Sentencing is scheduled for Dec. 12, 2024.
Garcia originally was charged by indictment in October 2021 with Valvano, 56, of Florham Park, New Jersey, and Sablosky, 64, of Springfield, New Jersey. Valvano and Sablosky’s case is pending before Judge Arleo, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge James E. Dennehy; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vazquez, with the investigation leading to today’s plea.
The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.
garcia.information.pdfFormer Local 98 President Brian Burrows Sentenced to Four Years in Prison for Embezzlement of Union Funds, Filing False Government Reports, and Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Brian Burrows, 64, of Mount Laurel, NJ, was sentenced today by United States District Court Judge Jeffrey L. Schmehl to 48 months’ imprisonment, three years of supervised release, forfeiture of $135,689.11, an $1,800 special assessment, and restitution to be determined later, for crimes arising from his embezzlement of funds belonging to Local 98 of the International Brotherhood of Electrical Workers (“Local 98”).
Burrows had served as the President of Local 98 since 2008. The only person who held a higher office in the union was his codefendant, Business Manager John Dougherty. In January 2019, a federal grand jury indicted Dougherty, Burrows, and other union officers and employees with conspiracy and embezzlement arising from their theft and improper use of approximately $600,000 in Local 98 funds from April of 2010 through August of 2016. The indictment also charged Dougherty and Burrows with concealing the embezzlement of Local 98’s funds by causing false labor management reports, known as LM-2s, to be filed with the U.S. Department of Labor, and with filing false federal income tax returns by failing to report the funds they stole on their tax returns.
In December 2023, a federal jury convicted Dougherty and Burrows of conspiracy to embezzle the funds of Local 98. Burrows was also convicted of 13 counts of embezzlement of funds from Local 98, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns. The charges of which Burrows was convicted included the illegal use of approximately $391,000 in union funds to improve and repair his home, the homes of codefendants Dougherty and Michael Neill, commercial properties owned by him and his codefendants, and the homes of Dougherty’s relatives.
Dougherty was convicted of 33 counts of embezzlement of funds from Local 98, 24 counts of wire fraud by participating in a scheme to defraud Local 98 of its money, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns.
The other officers and employees of Local 98 charged in the indictment pleaded guilty in 2022 to charges related to their embezzlement of Local 98’s funds and were sentenced earlier this year. They are Michael Neill, former Director of Local 98’s Apprentice Training Fund; Marita Crawford, former Political Director of Local 98; Niko Rodriguez, an employee of the Apprentice Training Fund and Local 98; and Brian Fiocca, an employee of Local 98.
Dougherty is scheduled to be sentenced on July 11.
“The members of a union should be able to trust their leadership,” said U.S. Attorney Romero. “They have every right to expect that their officers will act in their best interests and that their dues will be used for their benefit. That wasn’t the case at Local 98, where Brian Burrows violated his duty to his members for his own benefit and allowed his codefendants to do the same. Burrows stole from the hardworking electricians whose dues paid his salary, took deliberate steps to conceal it, and is now being held appropriately accountable.”
“In serving himself over the members of Local 98, Brian Burrows abused his position as the president of the Union and breached the trust of those whom he was elected to serve. Today's sentence makes it clear that this kind of self-dealing at the expense of others will not be tolerated,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners remain unwavering in our commitment to upholding the integrity of labor unions for the members who rely on them, and bringing to justice those who exploit them.”
“Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Acting Special Agent in Charge Denise Leuenberger. “The outcome today is due to the dedicated efforts of IRS Criminal Investigation special agents and our law enforcement partners.”
"When a union official embezzles union funds, not only are they violating the law, they are also betraying the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets," said U.S. Department of Labor Office of Labor-Management Standards Acting District Director Nicole Spallino. "There are consequences for union officials who breach their fiduciary responsibilities to the members they represent. The Office of Labor-Management Standards remains committed to working with our law enforcement partners to protect the financial integrity of labor unions."
“The U.S. Department of Labor is committed to protecting employee benefits for America's workers,” said Cristina O’Brien, Philadelphia Regional Director of the U.S. Department of Labor Employee Benefits Security Administration. “EBSA appreciates the collaborative work with our law enforcement partners to hold Brian Burrows criminally accountable for violating the law.”
“Brian Burrows, the former President of IBEW Local 98, conspired with other former union officials to enrich himself at the expense of the union’s dues-paying members by embezzling union funds. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and Employee Benefits Security Administration to safeguard union assets,” said Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; the U.S. Department of Labor Employee Benefits Security Administration; the U.S. Department of Labor Office of Labor Management Standards; the U.S. Department of Labor Office of Inspector General; and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Frank Costello, Chief of the Corruption & Civil Rights Unit; Bea Witzleben, Co-Chief of Trials; Jason Grenell, and Anthony Carissimi.
Former Assistant Controller Who Embezzled over $3 Million from Pennsylvania-Based Metal Salvage Company Sentenced to 41 Months in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tammy Simpson, 51, of Pocono Lake, PA, was sentenced today by United States District Court Judge Wendy Beetlestone to 41 months’ imprisonment and three years of supervised release for wire fraud and filing false tax returns, charges stemming from the defendant’s employment with Metal Traders, Inc., d/b/a Triad Metals International (“Triad”), where she worked as the Assistant Controller for fourteen years. Simpson was also ordered to pay $3,199,192.68 in restitution, $708,643 to the Internal Revenue Service, and a $1,200 special assessment.
In June of 2022, Simpson was charged by indictment with eight counts of wire fraud and four counts of making and subscribing a false tax return. In June 2023, Simpson pleaded guilty to all charges against her.
Between 2012 and when she was terminated in October 2019, Simpson used her position at Triad to steal company money and use it to pay personal expenses charged to her credit cards and to make payments on personal loans. She did so by paying her personal credit card bills and loan payments with electronic transfers from the company’s business checking account. The defendant also kept credit cards from employees who had left the company and used them to charge personal expenses, including airfare and other entertainment expenses for her family and friends, and to pay her personal tax liabilities and those of other individuals for whom she prepared tax returns. None of these payments or transfers were for legitimate business expenses of her employer. Further, Simpson failed to report the money stolen from the company as income on her tax returns for tax years 2015 through 2018.
“Tammy Simpson was a valued employee, entrusted with significant financial responsibilities,” U.S. Attorney Romero said. “For years, she abused that trust and her access to the business’s accounts, stealing more than $3 million of Triad’s money so she could continue to live beyond her own means. This sentence holds her accountable for her crimes and sends a message loud and clear that this is not the way to go about boosting your bank account.”
“From paying personal credit cards to purchasing airfare and entertainment, Tammy Simpson stole company money to fund her lifestyle,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI alongside our partners at the IRS and the U.S. Attorney’s Office will continue to pursue criminals who orchestrate their schemes out of greed.”
“Anyone contemplating cheating on their taxes should know that our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said IRS Criminal Investigation Acting Special Agent in Charge Denise Leuenberger. “We are committed to working with our law enforcement partners and the Department of Justice to continue aggressively investigating individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney MaryTeresa Soltis.
Florida Man Sentenced to 121 Months in Prison for Receipt of Child Pornography and Enticement of MinorRead the Press Release
CAMDEN, N.J. – A Florida man was sentenced today to 121 months in prison for receiving child pornography and enticement to travel for illicit sexual conduct, announced U.S. Attorney Philip R. Sellinger.
Andrew Drechsel, 35, of Saint Cloud, Florida, pleaded guilty on June 1, 2023, before Chief U.S. District Judge Renée M. Bumb to an information charging him with one count of receiving child pornography and one count of knowingly persuading, inducing, enticing and coercing a minor to travel interstate to engage in sexual activity for which the defendant can be charged with a crime. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From 2014 to Nov. 8, 2019, Drechsel lived in Hamden, Connecticut. His victim lived in New Jersey. On Nov. 8, 2019, law enforcement agents searched one of Drechsel’s phones and found images of child sexual abuse, including photos and videos of the victim when the victim was 14 and 15 years old. Drechsel admitted that he originally met the victim in 2014 through his activities in the parkour community as an “American Ninja Warrior.” Drechsel admitted texting the victim and discussing his plans to engage in sexual activity with the victim. At Drechsel's urging, the victim traveled across state lines in July 2015 so that Drechsel could have sexual relations with the victim.
In addition to the prison term, Judge Bumb sentenced Drechsel to 15 years of supervised release and ordered him to pay $100,000 in restitution to the victim.
U.S. Attorney Sellinger credited special agents of the FBI South Jersey Resident Agency, under the direction of Special Agent in Charge of FBI Philadelphia Special Agent in Charge Wayne A. Jacobs, with the investigation leading to the sentencing. He also thanked the Camden County Prosecutor’s Office, the Burlington County Prosecutor’s Office; the Cherry Hill Police Department; the U.S. Attorney’s Office for the District of Connecticut; special agents of the FBI New Haven Resident Agency; the Connecticut State’s Attorney’s Office, Hartford Judicial District; the Connecticut State’s Attorney’s Office, New Haven Judicial District; the Windsor Police Department; the Hamden Police Department; and special agents of the FBI Tampa Resident Agency.
The government is represented by Sara A. Aliabadi, Deputy Attorney in Charge of the Camden branch office, and Assistant U.S. Attorney Alisa Shver of the Camden branch office.
Five Indicted in Feeding Our Future Jury Bribery SchemeRead the Press Release
MINNEAPOLIS – Five defendants have been indicted for their roles in a conspiracy to provide a $120,000 bribe to a juror in the Feeding Our Future trial, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 22, 2024, seven defendants went to trial before U.S. District Judge Nancy E. Brasel for their roles in the Feeding Our Future fraud scheme. During the trial, Abdiaziz Shafii Farah, 35, of Savage, Abdimajid Mohamed Nur, 23, of Shakopee, Said Shafii Farah, 42, of Minneapolis, Abdulkarim Shafii Farah, 24, of Minneapolis, and Ladan Mohamed Ali, 31, of Seattle, Washington, conspired with each other to provide a cash bribe to one of the jurors in exchange for the juror returning a not guilty verdict in the trial.
As part of the scheme, the conspirators decided to target Juror 52 because she was the youngest juror and they believed her to be the only juror of color. The conspirators conducted online research to obtain Juror 52’s personal information, including her home address and information about her background and family members. They conducted surveillance of Juror 52 to confirm her home address and obtain information about Juror 52’s daily habits. One of the conspirators followed Juror 52 home as she left the courthouse during the trial, and they purchased a GPS tracking device to covertly install on Juror 52’s car in order to track her movements.
As part of the scheme, the conspirators obtained approximately $200,000 in cash to be delivered and paid to Juror 52 as a bribe in exchange for a not guilty verdict in the trial. The conspirators drafted a list of instructions for Juror 52 that included directions for her to vote “NOT GUILTY ON ALL COUNTS FOR ALL DEFENDANTS” and to “convince all the remaining jurors to mark NOT GUILTY for all defendants and all counts.” The conspirators compiled a list of “arguments to convince other jurors,” many of which appeared designed to convince Juror 52 that the prosecution was motivated by racial animus.
According to court documents, on May 30, 2024, Ali flew from Seattle to Minneapolis to carry out the bribery scheme. On May 31, 2024, Ali attempted to follow Juror 52 home as she left a downtown Minneapolis parking ramp at the conclusion of the first day of closing arguments in the trial. On June 2, 2024, Abdiaziz Farah instructed Nur to meet him at Said Farah’s business, Bushra Wholesalers, to pick up the bribe money. Later that day, Nur met with Ali and gave her a box containing the bribe money he had received from Said Farah. Ali took the money and put it inside a Hallmark gift bag. At approximately 8:50 p.m. that evening, Abdulkarim Farah and Ali drove to Juror 52’s house. Ali approached the house and handed the gift bag containing $120,000 in bribe money to a relative of Juror 52 and explained that the money was a present in exchange for a not guilty verdict. Ali promised that there would be more money if Juror 52 voted to acquit all the defendants. Abdulkarim Farah remained in the car and took a video recording of Ali dropping off the bribe money at Juror 52’s house. Abdulkarim Farah sent the video to his co-conspirators using an encrypted messaging app.
According to court documents, on June 3, 2024, after being ordered by Judge Brasel to surrender their phones to law enforcement, Abdiaziz Farah conducted a factory reset of his iPhone in order to delete the messages, video, and other evidence of the bribe attempt. Nur and Said Farah also deleted evidence of the bribe attempt from their phones.
The indictment charges all five defendants with conspiracy to bribe a juror, bribery of a juror, and corruptly influencing a juror. Abdiaziz Farah was also charged with obstruction of justice. The defendants will begin making their initial appearances this afternoon in U.S. District Court before Magistrate Judge Douglas L. Micko.
This case is the result of an investigation conducted by the FBI with assistance from IRS – Criminal Investigations, the U.S. Postal Inspection Service, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew Ebert, Harry Jacobs, Chelsea Walcker, and Daniel Bobier are prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
farah_et_al_indictment.pdfFive Employees of Juvenile Detention Center Charged with Smuggling Contraband in Exchange for BribesRead the Press Release
Five criminal complaints were unsealed today in federal court in Brooklyn charging current New York City Administration for Children’s Services (ACS) employees Da’Vante Bolton, Roger Francis, Christopher Craig and Nigel King, and former ACS employee Octavia Napier, with conspiracy to commit Travel Act bribery. All five defendants were Youth Development Specialists at the Crossroads Juvenile Center in Brownsville, Brooklyn (Crossroads). All five were arrested this morning, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Joseph A. Marutollo.
Breon Peace, United States Attorney for the Eastern District of New York, Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI) and James Smith, Assistant Director-in-Charge, New York Field Office (FBI), announced the charges.
“As alleged, these so-called ‘Youth Development Specialists’ violated their duty to the City and the residents at Crossroads by smuggling in weapons, drugs, and other contraband in exchange for bribes, placing young people and other staff members at an alarming risk of serious harm,” stated United States Attorney Breon Peace. “Today’s arrests demonstrate that this Office remains committed to rooting out corruption and cleaning up our city’s jails and juvenile detention facilities.”
DOI Commissioner Strauber said, “As Youth Development Specialists at ACS, these defendants were trusted to ensure the safety and security of residents in the City’s youth detention facilities. They betrayed that trust when, as charged, they accepted cash payments in exchange for smuggling drugs, weapons, and other contraband, into the Crossroads Juvenile Center in Brooklyn, destabilizing the facility and increasing the risk of violence to residents and staff alike. I thank ACS for reporting information to DOI, which prompted, in part, the work that led to this investigation with our law enforcement partners in the United States Attorney’s Office for the Eastern District of New York and the FBI, and the charges we announce today.”
“These five defendants, each Youth Development Specialists at the Crossroads Juvenile Center, are alleged to have repeatedly smuggled dangerous contraband into the facility in exchange for bribes. Youth development specialists are entrusted to help troubled youth get back on the right path, instead these individuals allegedly strayed themselves, placing personal gain above the safety and rehabilitation of the juveniles under their watch. The arrests today highlight the FBI’s continued dedication to eradicating public corruption and holding those responsible accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge James Smith.
Approximately 120 residents, ranging from ages 14 to 20, are detained at Crossroads. Residents at Crossroads are prohibited from possessing narcotics, cellular telephones, cigarettes, weapons, and alcohol, among other items. ACS employees at Crossroads are trained to confiscate any contraband they find and must notify a supervisor if any contraband is discovered. Although staff members are supposed to undergo a security screening whenever they enter the facility, a significant amount of contraband has recently been recovered from Crossroads residents. Between approximately March 2022 and May 2024, at least 75 cell phones and more than 340 scalpels or blades were recovered from the facility, as well as narcotics and tobacco.
The defendants either are or were Youth Development Specialists at Crossroads, which required them to supervise residents. Their responsibilities are similar to those of a correction officer at a jail facility.
As alleged in the complaints, the defendants accepted bribes in exchange for smuggling contraband and violating their duties as staff members.
The Defendants and the Alleged Criminal Conduct
Da’Vante Bolton has been employed by ACS since March 2020. As alleged, Bolton accepted more than $20,000 from Crossroads residents or their associates and smuggled in razor blades and marijuana in exchange for those bribes.
Roger Francis has been employed by ACS since July 2018. As alleged, Francis received more than $17,000 in bribes from Crossroads residents and their associates for smuggling in contraband, including marijuana and phone accessories.
Christopher Craig has been employed by ACS since August 2018. As alleged, Craig received more than $5,000 in bribes to smuggle in contraband, including marijuana and tobacco.
Nigel King has been employed by ACS since October 2021. As alleged, King accepted more than $6,800 in bribes for smuggling in marijuana, prescription pills and alcohol.
Octavia Napier was employed by ACS from June 2022 to May 2023. As alleged, Napier received more than $2,000 in bribes to both smuggle in contraband and allow a Crossroads resident to use her Cash App account to run his contraband distribution business from within Crossroads.
* * * * *
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of five years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Andrew D. Grubin, and Special Assistant United States Attorney Cassie Perez of the Bronx District Attorney’s Office, are in charge of the prosecution with assistance from Legal Assistant Thomas Englert.
The Defendants:
DA’VANTE BOLTON
Age: 31
Queens, NYE.D.N.Y. Docket No. 24-MJ-435
ROGER FRANCIS
Age: 58
Brooklyn, NYE.D.N.Y. Docket No. 24-MJ-432
CHRISTOPHER CRAIG
Age: 37
Brooklyn, NYE.D.N.Y. Docket No. 24-MJ-433
NIGEL KING
Age: 45
Queens, NYE.D.N.Y. Docket No. 24-MJ-431
OCTAVIA NAPIER
Age: 26
Brooklyn, NYE.D.N.Y. Docket No. 24-MJ-434
Final conspirator sent to prison for stealing nearly $4M in IRS refundsRead the Press Release
HOUSTON – A 33-year-old Houston woman has been sentenced for her role in a scheme to cash stolen tax checks, announced U.S. Attorney Alamdar S. Hamdani.
Whitley Rachelle Carter pleaded guilty Oct. 2, 2023, to one count of conspiracy to commit bank fraud.
Chief U.S. District Judge Randy Crane has now ordered Carter to serve 30 months in federal prison to be immediately followed by five years of supervised release. Carter was also ordered to pay restitution in the amount of $4,483,987.89 to Regions Bank and PNC Bank.
“A stolen Lamborghini, stolen checks, fake identities, fake bank accounts and callous criminals working together. Those are the ingredients for a scheme to steal almost $4 million in IRS refunds,” said Hamdani. “Carter brazenly entered banks with counterfeit identification documents and stolen checks on multiple occasions - one check as large as $2.9 million. Thanks to law enforcement’s efforts, Carter won’t be anywhere near a bank (or a check) for years to come.”
In approximately January 2022, authorities discovered that a couple in Houston had not received their expected $2,932,446.84 IRS refund check in the mail.
An investigation revealed Kuljinder Singh Hunjan and Carter used fake IDs with the victims’ personal information to open accounts at Regions Bank in January 2022.
On Jan. 18, 2022, Hunjan and Carter deposited the victims’ refund check into the fraudulent bank account.
Bank surveillance footage helped authorities identify Hunjan and Carter, with Hunjan’s fingerprints also found on the check. The investigation linked Carter to Hunjan and co-conspirator Benjamin Thomas through phone calls and CashApp transactions.
On April 13, 2022, authorities arrested Thomas while he was driving a stolen Lamborghini. At that time, they discovered two debit cards in his possession which were linked to fraudulently created accounts used to receive the proceeds of the nearly $3 million check. The co-conspirators used stolen identities to open the accounts and launder the proceeds.
Thomas also had an ATM receipt showing a withdrawal of $800 from the Regions bank account that received the check.
Toll records from the cellphone Thomas had at the time of his arrest indicate he contacted Hunjan numerous times during the course of the conspiracy.
Co-conspirators Hunjan, 38, Spring Valley, New York, and Thomas, 39, Richmond, pleaded guilty to the same charges Feb. 16, 2023, and Oct. 2, 2023, respectively. Hunjan was sentenced to a 42-month federal prison sentence while Thomas received 90 months.
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS Criminal Investigation, Treasury Inspector General, Treasury Inspector General for Tax Administration, Secret Service, Texas Department of Public Safety, Houston Police Department and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Felon sentenced to more than 7 years in prison for illegally possessing firearmRead the Press Release
COLUMBUS, Ohio – Lamonte K. Brown, 47, of Columbus, was sentenced in U.S. District Court to 93 months in prison for illegally possessing a firearm as a previously convicted felon.
According to court documents, Brown has more than 20 prior adult convictions, many involving firearms and domestic violence.
In his current case, Brown illegally possessed a firearm while on parole and texted someone a photo of the gun along with several threatening messages. For example, he said, “When I get off parloe imm a light yo blok up.” He kept the gun in a plastic bag under his kitchen sink, along with more than nine grams of methamphetamine.
Brown was charged by a federal criminal complaint in August 2022 and pleaded guilty in September 2023. Brown later sought to withdraw his plea, and after multiple hearings, the Court denied the defendant’s motion to withdraw.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed on June 25 by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney David J. Twombly and Senior Litigation Counsel Heather A. Hill are representing the United States in this case.
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Felon Pleads Guilty to Drug and Firearm OffensesRead the Press Release
CONCORD – A Manchester man pleaded guilty in federal court in connection to his distribution of fentanyl, his possession with intent to distribute fentanyl and cocaine and his being a felon in possession of a firearm, U.S. Attorney Jane E. Young announces.
Victor Rosario, 30, pleaded guilty to one count of distribution of fentanyl, one count of felon in possession of a firearm, and one count of possession with intent to distribute controlled substances. U.S. District Court Judge Joseph Laplante scheduled sentencing for October 11, 2024.
Between December 2023 – January 2024, on four occasions Rosario sold fentanyl to an individual who was cooperating with the Manchester Police Department. During the fourth sale, Rosario also sold the cooperating individual an AK-style rifle. When law enforcement searched Rosario’s residence and vehicle on January 17, 2024, they found more drugs, including more than 300 grams of fentanyl and more than 1,000 grams of cocaine.
The charge of drug distribution and possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. The charge of felon in possession of a firearm provides for a sentence of up to 15 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorneys Matthew T. Hunter and Kasey Weiland are prosecuting the case.
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Federal jury convicts Missoula man of armed meth, fentanyl trafficking in communityRead the Press Release
MISSOULA — A federal jury on June 25 convicted a Missoula man accused of armed methamphetamine and fentanyl trafficking in the Missoula area of multiple drug and firearms crimes, U.S. Attorney Jesse Laslovich said today.
After a two-day trial that began on June 24, the jury found Keith Andre Green, 50, guilty of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of firearms and ammunition in furtherance of a drug trafficking crimes as charged in an indictment. Green faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms and ammunition charge.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 22. Green was detained pending further proceedings.
“The jury’s guilty verdicts on all three counts validate our relentless efforts to hold accountable those who are responsible for flooding our communities with methamphetamine and fentanyl. The quantities of methamphetamine and fentanyl trafficked by Green were staggering and poisoned far too many Montanans. And his use of guns as currency while trafficking his drugs means he will spend even more time in federal prison when he’s sentenced. These verdicts would not have occurred without our federal prosecutors, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Missoula High Intensity Drug Trafficking Area Task Force, Montana Division of Criminal Investigation and Missoula County Attorney's Office, for which I am grateful,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that from about May 2022 until September 2023, Green and others trafficked methamphetamine and fentanyl in Missoula and Mineral counties and possessed firearms while trafficking drugs. Law enforcement received information that Green was a major meth and fentanyl distributor and that he went to Spokane, Washington, three to five days a week and received about one pound of meth and a boat of fentanyl, which is 1,000 pills, on each trip. Green also traded drugs for firearms. Law enforcement executed search warrants in February 2023 on Green’s vehicle and residence and another search warrant on his residence in September 2023. Officers seized a total of 4,205 fentanyl pills and approximately 2,204 grams, which is approximately 4.8 pounds, of meth. Officers located approximately six firearms and ammunition at his residence.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Missoula High Intensity Drug Trafficking Area Task Force, Montana Division of Criminal Investigation and Missoula County Attorney’s Office conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Federal Inmate and Eight Co-Conspirators Indicted for International Drug TraffickingRead the Press Release
An indictment was unsealed in the District of North Dakota today charging a federal inmate and eight co-conspirators with international methamphetamine, heroin, and fentanyl trafficking.
According to court documents, since January 2022, Jesus Amurahaby Celestin-Ortega, also known as Flaco, 26, allegedly engaged in drug-related and money laundering conspiracies, and a continuing criminal enterprise, while incarcerated at a federal prison on unrelated drug and firearm charges. Celestin-Ortega allegedly operated a criminal network using a contraband cellphone from inside the federal prison to import and distribute more than 500 grams of methamphetamine, more than one kilogram of heroin, and more than 400 grams of fentanyl. Celestin-Ortega allegedly directed and coordinated the importation of the substances into the United States and their distribution within North Dakota, Minnesota, California, Colorado, Georgia, Missouri, Texas, Arizona, and elsewhere. Celestin-Ortega also allegedly conspired to launder drug proceeds from the United States to Mexico.
Celestin-Ortega’s eight co-conspirators—Trinidad Torres Meraz, 58, of Riverside, California; Edgar Hernandez, also known as Ivan Edgar Hernandez Vasquez, 43; Maria De La Cruz Estrada Moreno, 40, of El Paso, Texas; Jesse Rocha, 25, of Denver; Rafael Bueno-Nava, 49, of Fridley, Minnesota; Ryan James Stevens, 41, of Arvada, Colorado; Christian Ivan Gonzalez, 31, of Phoenix; and Martina Lucia Mendez, 26, of Gilbert, Arizona—are charged with participating in the distribution conspiracy. Five of the co-conspirators—Torres Meraz, Estrada Moreno, Bueno-Nava, Stevens, and Mendez—also allegedly conspired to import methamphetamine, heroin, and fentanyl from Mexico into the United States. Three of the conspirators—Torres Meraz, Estrada Moreno, and Bueno-Nava—are charged with additional money laundering conspiracy charges. Celestin-Ortega and six of the co-conspirators have been arrested on the indictment and have made their initial appearances in court. Hernandez and Mendez remain fugitives.
If convicted, the defendants face a maximum penalty of life in prison on the drug distribution conspiracy counts and the importation conspiracy counts, and a maximum penalty of 20 years in prison on the money laundering conspiracy counts.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Mac Schneider for the District of North Dakota; Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI); Special Agent in Charge Steven T. Bell of the Drug Enforcement Administration (DEA) Omaha Field Division; Inspector in Charge Bryan S. Musgrove of the U.S. Postal Inspection Service (USPIS) Denver Division; and Special Agent in Charge Thomas F. Murdock of IRS Criminal Investigation (IRS-CI) made the announcement.
This case is part of an Organized Crime and Drug Enforcement Task Forces operation.
HSI, DEA, USPIS, IRS-CI, Grand Forks Narcotics Task Force, North Dakota Bureau of Criminal Investigation, and Grand Forks Police Department are investigating the case, with critical support from the Federal Bureau of Prisons’ National Gang Unit. The Criminal Division’s Narcotic and Dangerous Drug Section’s Special Operations Unit and the Office of Enforcement Operations also provided essential support and coordination.
Trial Attorneys Lernik Begian and Tara Arndt of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Christopher C. Myers and Matthew P. Kopp for the District of North Dakota are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI Arrests El Paso Couple for Alleged Child AbuseRead the Press Release
EL PASO, Texas – An El Paso couple was arrested for charges in a four-count federal indictment related to their alleged child abuse.
According to court documents, Cecilia Stepaniak, 34, and Coreydon Stepaniak, 34, from April 2019 to February 2024 allegedly engaged in conduct that placed a child under the age of 15 in imminent danger of death, bodily injury, and physical or mental impairment. The indictment alleges acts including falsely reporting to a medical care provider that the minor victim was removed from school for bullying elementary school children; dangerously restricting the minor’s food intake; hitting the minor victim with a cell phone charging cable; holding a sharp kitchen knife to the minor victim’s throat; kicking the minor victim while on the ground; locking the minor victim in a dark closet; confining the minor victim to the garage of their Fort Bliss residence; and forcing the minor victim to perform calisthenics exercises multiple times a day for extended periods of time.
Both defendants are charged with one count of conspiracy to commit injury to a child, one count of injury to a child, one count of child endangerment, and one count of child abandonment.
If convicted, they each face up to five years in prison for the conspiracy charge; a minimum of 180 days up to two years for the injury to a child charge; and a minimum of two years to 20 years for the endangerment and abandonment charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI and the Department of the Army Criminal Investigation Division are investigating the case.
Assistant U.S. Attorneys Nallely Barbosa and Debra Kanof are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Ex-BLM employee sentenced to prison for stealing money by forging government checksRead the Press Release
MISSOULA — A former Bureau of Land Management employee who admitted to stealing thousands of dollars by forging a co-worker’s signature on government checks was sentenced today to two years and seven months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Adrian Anthony Aragon, 53, of Butte, pleaded guilty in February to theft of government money and aggravated identity theft.
U.S. District Judge Dana L. Christensen presided. The court also ordered $8,600 restitution.
In court documents, the government alleged that Aragon worked for the BLM in 2019 and 2020 until he was federally prosecuted for repeatedly using his employee travel card for personal expenses. After being released from custody and while on federal supervised release, Aragon forged the signature of a former co-worker on stolen BLM checks and incurred more than $10,000 in losses in the co-worker’s name. Aragon used the stolen money for personal expenses including cash withdrawals, bills, restaurants, grocery stores and Amazon purchases. The former co-worker said Aragon had access to her checks during his employment and made schedule changes that resulted in him being the first or last person to leave the office.
The U.S. Attorney’s Office prosecuted the case. The Department of Interior Office of Inspector General conducted the investigation.
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D’Iberville Man Sentenced to 10 Years in Prison for Transfer of Obscene Material to a Minor in the PhilippinesRead the Press Release
Gulfport, Miss. -- A D’Iberville, Mississippi man was sentenced to 120 months in prison, followed by three years of supervised release, for transferring obscene material to a minor in the Philippines.
Jeffery Steward a/k/a Jack Spangle, 54, was sentenced in U.S. District Court in Gulfport.
According to court documents, Steward, using the internet and a social media account of a minor in the Philippines, knowingly transferred pornography links of obscene material to the minor victim via messages knowing the minor victim was less than 16 years old.
U.S. Attorney Todd Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation with assistance from the Cyber Crime Division at the Mississippi Attorney General’s Office and the Philippine National Police.
Assistant U.S. Attorneys Andrea Jones and Lee Smith are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Department of Justice and EPA File Complaint Against Lower Yakima Valley Dairies for Failing to Control Nitrate Contamination in Drinking WaterRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the U.S. Environmental Protection Agency and the Department of Justice filed a Complaint in federal district court alleging three large dairies located north of Granger in the Lower Yakima Valley failed to adequately control nitrate contamination from their operations. This nitrate contamination may affect the drinking water wells of nearby community members. High levels of nitrate in drinking water can be harmful, especially for infants, pregnant women, and people with certain health conditions.
Dairies generate large quantities of liquid and solid animal waste, which contains nitrogen which can turn into nitrate in the soil. Nitrate can migrate into groundwater if not managed properly.
In the complaint, EPA alleges these dairies, which collectively have over 30,000 animals, have failed to comply with a legal agreement they entered into with EPA in 2013 which aimed to reduce nitrate leaching from their facilities and protect downgradient residents with nitrate contaminated well water. This agreement included requirements that the dairies provide a drinking water alternative to residents that use private drinking water wells with high levels of nitrate, control potential sources of nitrogen at the dairies, and conduct quarterly groundwater monitoring.
“Protecting access to safe drinking water for everyone in the Yakima Valley is critical for public health and a high quality of life for our region,” stated Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “Strong and fair enforcement of environmental and public health laws ensures a healthy and safe community for all families to live, learn, play, and work.”
EPA is working with state agencies to reduce high levels of nitrate found in groundwater supplies throughout the Lower Yakima Valley and has provided funding to the Department of Health to increase groundwater and air quality education and outreach in the Lower Yakima Valley, which includes free well testing and free drinking water for homes in Yakima County whose wells exceed EPA’s health-based standard for nitrate of 10 mg/L.
“I urge residents and community members who rely on wells located south and southwest of these dairies to get their wells tested for nitrate,” said U.S. Attorney Waldref. “When we protect our water, we protect our families and our entire community.”
More information from the EPA about high nitrate levels in residential drinking water wells in the Lower Yakima Valley can be found here.
If your home is located in Yakima County, and you are concerned about nitrate in your drinking water, contact the Lower Yakima Valley Groundwater Management Area Safe Drinking Water Initiative at 1-866-886-7117.
A copy of the complaint can be found below.
ComplaintDanville Man Convicted of Attempted Sexual Exploitation of a Child and Attempted Receipt of Child PornographyRead the Press Release
Peoria, Ill. – A federal jury returned a guilty verdict on June 25, 2024, against Joseph A. Carpenter, 51, of Danville, Illinois, for Attempted Sexual Exploitation of a Child and Attempted Receipt of Child Pornography. Sentencing for Carpenter has been scheduled on October 23, 2024, at 11:00 A.M. at the U.S. Courthouse in Peoria, Illinois.
Over a single day of testimony in front of Senior U.S. District Judge Michael M. Mihm, the government presented evidence that, from November 2021 and into early 2022, Carpenter communicated with an individual he believed to be the father of an eight-year-old girl, via text communication applications. In those communications, Carpenter requested various child pornography images and encouraged ongoing abuse of the alleged minor.
Carpenter remains in the custody of the United States Marshals Service where he has been since his arrest in 2022. At sentencing, Carpenter faces statutory penalties of 15 to 30 years of imprisonment for Attempted Sexual Exploitation of a Child; and 5 to 20 years of imprisonment for Attempted Receipt of Child Pornography. Carpenter will also be required to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office. Assistant United States Attorneys William J. Lynch and Timothy Bass represented the government at trial.
This case was investigated as part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Crown Point Resident Charged with Threatening President BidenRead the Press Release
ALBANY, NEW YORK – Troy Kelly, age 19, of Crown Point, New York, was arrested yesterday and charged via criminal complaint with making threats against the President of the United States.
United States Attorney Carla B. Freedman, Jeffrey Burr, Special Agent in Charge of the Buffalo Field Office of United States Secret Service and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations and Steven James, Superintendent of the New York State Police made the announcement.
Kelly was charged with one count of making threats against the President of the United States. The charge filed against Kelly carries a maximum sentence of 5 years imprisonment, a fine of up to $250,000, and a term of supervised release following any term of incarceration of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Kelly appeared yesterday in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and was detained pending a full detention hearing scheduled for Friday, June 28.
The criminal complaint alleges that on May 17, 2024, using an account on the social media platform “X,” Kelly responded to a post of President Joseph R. Biden Jr. with a post which included the sentence: “Gonna put a bullet in your head if I ever catch you.” A Secret Service investigation revealed Kelly was the likely user of the account that posted the threat and proceeded to interview him at his home. During the interview, Kelly confirmed he posted the threat and told the Secret Service agent on scene that he had done so because it was “true.” As alleged in the complaint, when asked if he still wanted to kill President Biden, Kelly told them “If I could, I would.”
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The United States Secret Service, Homeland Security Investigations, and the New York State Police are investigating the case. Assistant U.S. Attorney Joseph S. Hartunian is prosecuting the case.
Crack distributor heads to prisonRead the Press Release
GALVESTON, Texas – A 45-year-old La Marque resident has been sentenced for conspiracy to distribute cocaine and cocaine base, announced U.S. Attorney Alamdar S. Hamdani.
Ronnie LaShawn Allen pleaded guilty Feb. 24, 2022.
U.S. District Judge Jeffrey V. Brown has now ordered Allen to serve 120 months in federal prison to be immediately followed by five years of supervised release.
Between February 2017 and February 2019, Allen distributed cocaine base or “crack” for a crack distribution ring operating in the La Marque and Texas City areas. He was held responsible for 2.224 kilograms of crack cocaine.
Allen will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Safe Streets and Violent Crimes Task Force in conjunction with the La Marque Police Department conducted the investigation. Assistant U.S. Attorney Kenneth A. Cusick prosecuted the case.
Columbia Man Sentenced to Federal Prison for Gun and Drug OffensesRead the Press Release
COLUMBIA, S.C. — Kenneth Archie, 44, of Columbia, was sentenced to more than five years in federal prison after pleading guilty to possession of a firearm by a felon and possession with intent to distribute crack cocaine, methamphetamine, and marijuana.
Evidence presented to the court showed that on June 14, 2021, the Richland County Sheriff’s Department responded to an apartment complex on Old Manor Rd. in Columbia because a caller stated that Archie was trying to enter the front gate of the complex without permission. When the deputies spoke to Archie at his front window, they could smell marijuana coming from his vehicle and searched his car for further drug evidence. Deputies found a backpack containing methamphetamine, cocaine, crack cocaine, marijuana, and a firearm. Archie admitted to possession of the drugs and the firearm.
Archie is prohibited from having a firearm due to prior convictions for armed robbery, domestic violence 2nd degree, and failure to stop for a blue light.
United States District Judge Sherri A. Lydon sentenced Archie to 70 months imprisonment, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richland County Sheriff’s Department, and the Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Co-founder of Medical Charity in St. Joseph Sentenced to 17 Years in Prison for $8 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – The co-founder of a so-called Christian health care sharing ministry in St. Joseph, Mo., was sentenced in federal court today for his role in an $8 million wire fraud conspiracy that cheated hundreds of members, and to making false statements on a personal tax return.
Craig Anthony Reynolds, 62, of St. Joseph, was sentenced by U.S. District Judge Greg Kays to 17 years and six months in federal prison without parole. Reynolds was taken into custody at the conclusion of today’s hearing to immediately begin serving his sentence. The court also ordered Reynolds to pay $7,758,908 in restitution to the victims, $253,474 in restitution to the Internal Revenue Service, and $46,550 in restitution to the Missouri Department of Revenue.
The court also ordered Reynolds to forfeit to the government $462,771, which includes proceeds from the sale of a St. Joseph residence, cash representing his interest in another St. Joseph residence, the values of a Lincoln Navigator, and a Harley-Davidson motorcycle which will all be sold, and the contents of several bank accounts.
Reynolds incorporated and ran Medical Cost Sharing, a tax-exempt organization, as its president and chief executive officer from 2014 through December 2022. On Nov. 14, 2023, Reynolds pleaded guilty to one count of conspiracy to commit wire fraud and one count of making false statements on a tax return.
In a separate but related case, co-defendant James L. McGinnis, 77, of St. Joseph, pleaded guilty on April 2, 2024, to the same charges and awaits sentencing. McGinnis co-founded Medical Cost Sharing and served as its chief operating officer from 2014 through December 2022.
Reynolds and McGinnis each admitted that he and his co-conspirators used false and fraudulent promises to market Medical Cost Sharing as a “Health Care Sharing Ministry” to defraud hundreds of “ministry members.” They collected more than $8 million in member “contributions,” yet paid only 3.1 percent in health care claims so that they could personally profit and take most of the members’ contributions for themselves.
Reynolds and McGinnis pocketed at least $5,168,268 from the member contributions from December 2015 through December 2022. Thus, Reynolds and McGinnis took at least 64 percent of total member contributions for their personal profit.
Reynolds and McGinnis marketed Medical Cost Sharing as a “Christian Health Care Sharing Ministry” through insurance brokers, radio stations, social media, and its website. Medical Cost Sharing sales materials promoted its 501(c)(3) tax-exempt designation, advertising that it was different from for profit health insurance. The Medical Cost Sharing website claimed, “while we are not an insurance company, many think of us as a Christian Health Insurance, or Christian Medical Insurance because, like conventional insurance plans, we help you pay your healthcare costs. We help you protect your family. But unlike these corporate, profit based plans, we are a healthcare sharing ministry … your healthcare costs are shared with other Christians enrolled in our medical sharing plans.”
Medical Cost Sharing promised its member that if they paid monthly “contributions,” Medical Cost Sharing would pay claims after the members’ “personal responsibility” (deductible) was met.
In reality, Reynolds and McGinnis admitted, Medical Cost Sharing rarely paid members’ health care claims. Sometimes Medical Cost Sharing would pay a part of a claim if the member filed a complaint with their state attorney general and/or hired an attorney to represent them against Medical Cost Sharing.
Medical Cost Sharing paid no claims at all for almost two years, from Feb. 22, 2021, through December 2022, although it collected a total of nearly $1.2 million in dues in 2021 and 2022.
On Dec. 13, 2022, federal agents served search warrants on the Medical Cost Sharing business location and the residences of Reynolds and McGinnis and seized property generated from Medical Cost Sharing proceeds. Medical Cost Sharing continued to try to collect membership dues after the search and seizure warrants. On Dec. 27, 2022, the court entered a temporary restraining order that prohibited Medical Cost Sharing, Reynolds, and McGinnis from continuing to perpetrate a fraudulent scheme and from processing Medical Cost Sharing member payments, among other actions.
Reynolds also admitted that he filed a return that claimed he had no taxable income in 2019. Reynolds actually received at least $354,292 in taxable income in 2019. According to court documents, Reynolds filed false federal and state tax returns in 2018, 2019, 2020, and 2021.
According to court documents, Reynolds also defrauded the U.S. Treasury by applying for Covid tax credits using false information. Reynolds received a total of $42,586 in fraudulently obtained Employee Retention Credits for tax year 2021.
This case was prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney, Patrick Daly, and John Constance. It was investigated by the FBI and IRS-Criminal Investigation.
FBI Website for Victims of Medical Cost Sharing Fraud
Those who believe they are victims of this fraud and wish to receive restitution for any losses suffered as a result may provide their information through the MCS Victim Information Page that has been established by the FBI.
https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/mcs-victim-information-page
Chittenden County Man Sentenced to 46 Months in Fraud and Gun CasesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 25, 2024, Leon Delima, 35, of Burlington and South Burlington, Vermont, was sentenced by United States District Judge Christina Reiss to a term of 46 months in prison, to be followed by a 3-year term of supervised release. Delima previously pleaded guilty in two separate federal cases to wire fraud and false statements in connection with his 2021 false applications for COVID relief funds and his 2022 possession of a firearm as a convicted felon. He is also required to pay over $20,000.00 in restitution to the U.S. Small Business Administration (SBA).
According to court records, between April and July 2021, Delima devised a scheme to obtain COVID relief funds to which he was not entitled by submitting false applications seeking Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) from the SBA. Delima successfully obtained a $17,833.00 PPP loan which he spent over the course of approximately two weeks on consumer goods, life expenses, and other non-business items. Having exhausted the initial loan, he then sought an additional $350,000.00 EIDL, which was denied.
Approximately a year later, on July 2, 2022, Delima, who had previously been convicted of a felony offense and was precluded from possessing firearms under federal law, discharged a .40 caliber pistol as he walked along North Avenue in Burlington, Vermont. Delima knew the firearm had been stolen. He was also in possession of over 35 grams of cocaine at the time he fired the gun. He threw the gun aside before law enforcement could apprehend him. The gun was recovered approximately two weeks later and linked back to the shooting incident using ATF technology.
United States Attorney Nikolas P. Kerest praised the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service, Criminal Investigation (IRS-CI), and the Burlington Police Department for their collaboration and excellent work investigating Leon Delima’s many crimes. “Utilizing technology is a key part of ATF’s strategy to identify and prosecute individuals who commit violent crimes,” said Special Agent in Charge James M. Ferguson of the ATF Boston Field Division. “The combination of NIBIN and good police work has resulted in the arrest and conviction of a convicted felon who illegally possessed a firearm and crack cocaine.”
The case was prosecuted by Assistant U.S. Attorney Eugenia A. P. Cowles. Delima was represented by Assistant Federal Public Defender Sara M. Puls.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballisticinformation-network-nibin.
Addressing pandemic-related fraud is a priority of United States Attorney Nikolas P. Kerest and of the Department of Justice. For 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.
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.
Chinese National Sentenced for Possessing More than 260 Pounds of MarijuanaRead the Press Release
TULSA, Okla. – U.S. District Judge John D. Russell sentenced Jin Kai Chen, 51, to 18 months imprisonment, followed by three years of supervised release for Possession of Marijuana with Intent to Distribute.
According to court documents, in Sep. 2023, Chen was pulled over by the Bureau of Indian Affairs. Officers detected a strong odor of marijuana coming from the vehicle. Upon search of the vehicle, Chen had 244 individual packages of marijuana, totaling 268.4 pounds. Further search of the vehicle, officers found more than $100k in vacuum-sealed bags.
Chen is a Chinese national and a permanent resident of the United States. He will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Homeland Security Investigations, Oklahoma Bureau of Narcotics, Bureau of Indian Affairs, and Rogers County Sheriff’s Office investigated the case. Assistant U.S. Attorney David A. Nasar prosecuted the case.
Charlotte Man Is Sentenced to More Than Six Years for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – Damarious Sims, 24, of Charlotte, was sentenced today to 76 months in prison followed by three years of supervised release on each of two counts for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed in the case and court proceedings, on August 13, 2022, CMPD officers responded to a call for assistance at East 4th Street and South Brevard Street for gunshots fired in the area. A second call for service came regarding a shooting incident near the Omni Hotel in uptown, where a victim, later identified as Sims, had been shot and sustained an injury. The officers located Sims on the ground in front of the hotel with a gunshot wound in his lower left calf. Officers rendered Sims medical assistance and he was transported to the hospital. During the ensuing investigation, law enforcement determined that Sims had been approached by two males looking to buy marijuana. The deal was a ruse and a female, later identified as Princess Houghton, and her brother planned to assault Sims during the deal. Sims drew a pistol with an extended magazine when he detected the threat. Houghton drew her own pistol with an extended magazine and shot Sims before fleeing the scene. During the investigation, CMPD recovered the guns used by Sims and Houghton. They were each arrested on local charges.
While out on bond from his local charges, on November 30, 2022, Sims got into an altercation with a passerby near the Omni Hotel in uptown. Sims had another loaded pistol and threatened to use it on the passerby. CMPD responded and confronted Sims who fled on foot. After a brief chase, CMPD took Sims into custody and recovered the loaded firearm.
On April 26, 2023, Sims pleaded guilty to two counts of possession of a firearm by a convicted felon. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. On Tuesday, June 25, 2024, Houghton was sentenced to eight years in prison.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charlotte Man Is Sentenced to 42 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – Phillip Christopher Weise, 36, of Charlotte, was sentenced to 42 years in federal prison followed by a lifetime of supervised release for sexual exploitation of minors, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Weise was also ordered to register as a sex offender upon completion of his prison term.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, in December 2020, law enforcement received a cybertip that an individual, later identified as Weise, was using social media and messaging platforms to upload child pornography. In March 2021, law enforcement executed a search warrant at Weise’s residence and seized multiple electronic devices including Weise’s cell phone. A review of the devices revealed that Weise, posing as a minor, met minors on social media platforms such as Kik, Snapchat, Discord, and JusTalk. Weise befriended the minors and sent them child pornography. Weise also persuaded the minors to send him sexually explicit images and videos, and he sometimes directed them to involve their younger siblings and animals in the videos. On occasion, Weise extorted minors to continue to send him sexually explicit videos by threatening to post their sexually explicit videos online if the minors did not comply with his request for additional videos. Court records show that Weise targeted minors between the ages of four and 12, and he shared the sexually explicit videos with other offenders. Law enforcement officials identified more than six of Weise’s victims.
When sentencing Weise to the statutory maximum term of 42 years, U.S. District Judge Frank D. Whitney noted that Weise’s crimes will have a life-long effect on his victims.
On March 9, 2023, Weise pleaded guilty to production of child pornography, extortion, and transfer of obscene matter to minors. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King commended the FBI and CMPD for their work in the investigation.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte and Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Sentenced for Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – A California man was sentenced to 151 months in federal prison for attempting to transport over 2 kilograms of heroin by train from Bernalillo County to North Carolina.
There is no parole in the federal system.
According to court documents, on February 26, 2021, Mario A. Serna was apprehended as a passenger on a train, where he was found in possession of over 2 kilograms of heroin concealed in a false compartment of a bag. Serna admitted to knowingly possessing the heroin and intending to transport the heroin to North Carolina for distribution.
Upon his release from prison, Serna will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Towanda R. Thorne-James, Special Agent in Charge for the Drug Enforcement Administration El Paso Division, made the announcement today.
The Drug Enforcement Administration investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Joseph M. Spindle is prosecuting the case.
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CEO of Non-Profit that Provided Mentoring Services to Public School Students Arrested on COVID Jobless Benefits Fraud ChargesRead the Press Release
LOS ANGELES – A South Bay man who provided lifestyle and personal development coaching to students in public schools through a non-profit he founded was arrested today on an indictment alleging he and his accomplices fraudulently applied for millions of dollars in COVID-19 jobless benefits, including by using stolen identities.
Reginald Foster Jr., 37, of the Westchester neighborhood of Los Angeles, was arrested on a 40-count federal indictment returned on June 18 alleging a scheme to fraudulently obtain unemployment insurance benefits under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Foster was arraigned today in United States District Court in downtown Los Angeles. He pleaded not guilty to the charges against him, and an August 20 trial date was scheduled. A federal magistrate judge ordered Foster released on a $50,000 bond.
Foster allegedly exploited the Pandemic Unemployment Assistance (PUA) provision of the CARES Act, which is designed to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise have been eligible because of the COVID-19 pandemic.
The indictment alleges that Foster submitted multiple applications for benefits with false information that ensured that the applications would be approved and the debit cards through which the benefits were dispersed would be sent to a mailing address he used. Prosecutors argue that 118 fraudulent applications were submitted as part of the scheme.
Foster then allegedly used the cards to take possession of the fraudulently obtained benefits through transfers to his non-profit, Champs Up! LLC, and $1,000 withdrawals at ATMs. The indictment alleges that Foster then transferred the cards to co-conspirators, who used them to make further ATM withdrawals. Foster and his co-conspirators were able to withdraw almost $1.5 million of the benefits. The benefits were frozen as soon as the scheme was uncovered, preventing further losses of more than $4 million.
Two alleged co-conspirators are also charged in the indictment: Shelece Counts, 31, of the Westlake neighborhood of Los Angeles; and Isaiah Herbert Lawrence, 30, of Houston, Texas.
Counts was also taken into custody this morning and also was arraigned this afternoon. She pleaded not guilty to the charges against her and an August 20 trial date was scheduled. A federal magistrate judge ordered her released on $10,000 bond.
The indictment charges Foster, Counts, and Lawrence with one count of conspiracy to commit mail fraud and bank fraud, five counts of aggravated identity theft, and each face one count of use of unauthorized access devices. Foster is charged with nine counts of mail fraud and 22 counts of bank fraud. Counts is charged with 11 counts of bank fraud. Lawrence faces five bank fraud counts.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Foster, Counts, and Lawrence would each face a statutory maximum sentence of 30 years in federal prison for the conspiracy count and for each of the bank fraud counts, and 10 years in federal prison for the use of authorized access device counts. The mail fraud counts each carry a statutory maximum sentence of 20 years, and a conviction for aggravate identity theft will result in an additional mandatory two-year sentence.
This matter was investigated by the United States Department of Labor Office of Inspector General, the California Employment Development Department, and Homeland Security Investigations. Substantial assistance was provided by the Department of Homeland Security Office of Inspector General; the United States Secret Service; the FBI; U.S. Customs and Border Protection Special Response Team; and the Los Angeles Unified School District Office of Inspector General.
Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting this 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. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Businessman Sentenced to More Than a Year in Federal Prison for Scheming to Embezzle Funds from ClientRead the Press Release
CHICAGO — A businessman who operated two companies in a Chicago suburb has been sentenced to more than a year in federal prison for scheming to embezzle more than $950,000 from a client.
DONALD E. MUDD, 66, of Palm Beach Gardens, Fla., pleaded guilty earlier this year to a mail fraud charge. U.S. District Judge Elaine E. Bucklo on June 21, 2024, sentenced Mudd to 15 months in federal prison. Judge Bucklo also fined Mudd $60,000 and ordered him to pay $951,755 in restitution.
Mudd was the president of Mudd-Lyman Sales and Services and the manager of Simply Service LLC, both of which were based in Skokie, Ill. The businesses helped to market their clients’ products and facilitated the placement of goods in national hardware store chains. One of Mudd’s clients was a New York-based sealant manufacturer where co-defendant RODNEY HAWKINS worked as a vice president. Mudd admitted in a plea agreement that he schemed with Hawkins to embezzle funds from Hawkins’s employer by fraudulently inflating commissions and submitting false invoices for services that were never rendered. After receipt of the funds from the false invoices, Mudd and Hawkins split the proceeds.
Hawkins, 57, of Newton, N.C., pleaded guilty last year to a mail fraud charge and admitted his role in the scam. Hawkins is awaiting sentencing.
Mudd’s sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Michelle Petersen.
Bristow Man Sentenced for Second-Degree MurderRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Chad Alan Hudgins, 35, to 360 months imprisonment for Second Degree Murder in Indian Country. Additionally, Judge Frizzell ordered Hudgins to five years of supervised release.
According to court documents, in Dec. 2021, the Creek County Sheriff’s Office received a call requesting a well-being check of Britney Smith. Upon arrival, officers noticed blood on the exterior of the house. Upon entry of the home, the deputies found the victim, Britney Smith, deceased. According to witnesses, Hudgins was in a dating relationship with Britney Smith. Hudgins told a friend that he was arguing with Britney and shot her. Hudgins fled to Kansas, where he was arrested with a loaded 9mm pistol.
Hudgins will remain in custody pending transfer to the U.S. Bureau of Prisons. The victim, Britney Smith, was a tribal citizen.
The FBI, the Creek County Sheriff’s Office, and Muscogee Creek Nation Lighthorse Police investigated the case. Assistant U.S. Attorneys Eric O. Johnston and Julie Childress prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Box Elder man sentenced to 30 years in prison for sexually abusing two children on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man convicted by a federal jury of sexually abusing two children at a residence on the Rocky Boy’s Indian Reservation was sentenced on June 25 to 30 years in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said today.
After a two-day trial, a jury found Shawn Saddler, Sr., 57, guilty on Feb. 7 of aggravated sexual abuse and two counts of abusive sexual contact.
Chief U.S. District Judge Brian M. Morris presided.
“Saddler sexually abused little girls who were too young to understand what he was doing and too small to stop him. Saddler’s crimes inflicted serious trauma on them, and their lives will never be the same due to his abuse. I hope they find a small degree of comfort knowing he will rightfully spend the next 30 years in federal prison, where he will be unable to hurt them or any other children again,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that in 2022 in a residence in Box Elder, on the Rocky Boy’s Indian Reservation, Saddler sexually molested and abused two girls multiple times. Both victims were under the age of 12 years at the time.
The U.S. Attorney’s Office prosecuted the case. The FBI and Rocky Boy’s Police Department conducted the investigation.
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Bay St. Louis Man Sentenced to Nearly Five Years in Prison for Interstate Travel in Furtherance of Drug TraffickingRead the Press Release
Gulfport, MS –A Bay St. Louis man was sentenced to 57 months in federal prison for his role in a fentanyl trafficking conspiracy.
Kolby Zu Sims, 21, was sentenced in U.S. District Court in Gulfport.
According to court documents, on August 29, 2023, the Hancock County Sheriff’s Office and the Drug Enforcement Administration followed up on a written complaint alleging drug trafficking at the Motel 6 in Bay St. Louis, Mississippi. Agents surveilled the motel and narrowed down the suspected parties and rooms. Agents observed a red Toyota Camry arrive at the hotel to pick up two of the individuals suspected of selling drugs. Agents followed the vehicle across state lines and observed the occupants of the vehicle participate in what appeared to be a drug transaction in Louisiana. After the transaction, agents followed the Camry back into Mississippi and conducted a traffic stop. Kolby Sims was identified as one of the occupants of the vehicle who had contributed funds to buy approximately 1000 fentanyl-laced pills to bring back from Louisiana for sale in Mississippi.
Sims pled guilty on March 6, 2024, to interstate travel in furtherance of drug trafficking.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office.
Assistant U.S. Attorney Erica Rose prosecuted the case.
Attempted Carjacker on the Southern Ute Reservation Sentenced to 10 Years in PrisonRead the Press Release
DURANGO – The U.S. Attorney’s Office for the District of Colorado announces that Lionel Mario Charley, age 30, of Durango, Colorado, was sentenced to 120 months in prison for attempted carjacking resulting in serious bodily injury on the Southern Ute Indian Reservation. The prison sentence will be followed by five years of supervised release.
According to the plea agreement, on June 15, 2022, Charley accosted a woman in the parking garage of a Durango office building in which she worked at the time. Charley threatened the employee, got into her vehicle, and demanded that she take him to Red Mesa, Arizona. The victim drove Charley a short distance before pulling over on the Southern Ute Indian Reservation and demanding he leave the vehicle. In response, Charley took a rock from his pocket and struck the victim repeatedly in the head. Charley admitted his intent was to seriously hurt the victim so he could “hijack” her car. During the attack, the victim’s car rolled down an embankment. The victim was able to escape Charley and crawl back to the road to seek help. Charley fled and the next morning stole another car and drove it to Arizona.
“This random, unprovoked attack on an innocent citizen justifies this lengthy sentence,” said Acting United States Attorney Matthew Kirsch. “We remain committed to vigorously prosecuting violent crime on the Southern Ute Indian Reservation.”
“This was a violent attack on an unsuspecting victim. If not for her courage, this outcome would not have been possible,” said FBI Denver Special Agent in Charge Mark Michalek. “This incident started in Durango and ended on the Southern Ute Reservation, which required assistance from the Durango Police Department, La Plata County Sheriff’s Office and Southern Ute Police Department. We thank the survivor and these agencies for their efforts that led to a safe conclusion.”
United States District Court Judge Gordon P. Gallagher sentenced the defendant on June 18, 2024.
The Federal Bureau of Investigation office in Durango conducted the investigation in conjunction with the Southern Ute Police Department. Assistant United States Attorney Jeffrey K. Graves handled the prosecution of the case.
Assault, strangulation of partner sends Browning man to prison for more than four yearsRead the Press Release
GREAT FALLS — A Browning man who admitted to strangling and beating a dating partner, causing serious injury, was sentenced today to four years and two months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, Emerson John No Runner, Jr., 48, pleaded guilty in February to assault resulting in serious bodily injury and assault of a dating partner by strangulation and suffocation.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in March 2022 in Browning, on the Blackfeet Indian Reservation, No Runner and his then-girlfriend, identified as Jane Doe, had been drinking together and had slept at a relative’s trailer. The two were alone when No Runner started arguing with Jane Doe about perceived infidelity. No Runner straddled Jane Doe on a mattress, placed his hands around her neck and applied pressure. Jane Doe lost consciousness and woke up in a pool of blood. Jane Doe also found pieces of wood in her hair. Officers seized a piece of wood with apparent blood and hair. Jane Doe suffered a brain injury and bruising on her neck. In a Facebook message to Jane Doe in December 2023, No Runner referenced the assault, stating, “the plan was to kill you that day should of, so bye bitch.”
The U.S. Attorney’s Office prosecuted the case. The Blackfeet Law Enforcement Services and FBI conducted the investigation.
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Albuquerque Man Sentenced to 25 years for Sexual Abuse in Indian CountyRead the Press Release
ALBUQUERQUE – An Albuquerque man was sentenced to 25 years in federal prison for sexually abusing two girls in the Jicarilla Apache Nation.
There is no parole in the federal system.
According to court documents, between October 2012 and October 2013, Christian Quintana, 28, a member of the Jicarilla Apache Nation, caused sexual contact with Jane Doe 1, a child who had not yet attained the age of 12.
Then, between October 2019 and October 2020, Quintana raped Jane Doe 2, who was 17 years old at the time. Quintana drove Jane Doe 2 to a secluded location, threatened her life and the lives of her family members, and forcibly had sex with her.
Both incidents occurred within the exterior boundaries of the Jicarilla Apache Nation.
Upon his release from prison, Quintana will be subject to a lifetime term of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Albuquerque Man Charged with Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – An Albuquerque man was charged by indictment with being a felon in possession of a firearm and ammunition.
Arthur Steven Stewart, 23, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.
According to the indictment, on January 24, 2024, Stewart possessed a firearm and ammunition, knowing that he had been convicted of robbery. As a previously convicted felon, Stewart knew that he was prohibited from owning firearms or ammunition.
If convicted of the current charges, Stewart faces up to 15 years in prison followed by three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Special Assistant U.S. Attorney Peter Haynes is prosecuting this case as part of an agreement with the Second Judicial District Attorney’s Office.
Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.
The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state.
View the Press ReleaseAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Activity in the U.S. Attorney's OfficeRead the Press Release
Child Pornography
Robert Loren Blanton, 38, of Cheyenne, Wyoming, was sentenced to 40 months in federal prison for possession of child pornography. U.S. District Court Judge Alan B. Johnson imposed the sentence on June 18. The defendant pleaded guilty on Mar. 20. This crime was investigated by the FBI, and prosecuted by Assistant U.S. Attorney Christyne M. Martens.
Firearm Offenses
Donald Ray McIntosh, 39, of Mills, Wyoming, was sentenced to 41 months’ imprisonment for being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on June 16. According to court documents, on May 26, 2023, agents with the Wyoming Division of Criminal Investigation (DCI) and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) conducted a controlled purchase of a gun from McIntosh, who was at the time a convicted felon. The defendant pleaded guilty on Mar. 20. This crime was investigated by DCI and ATF, and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Richard McCloskey, 36, of Casper, Wyoming, was sentenced to 95 months’ imprisonment for being a felon in possession of a firearm. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on Jun. 26. According to court documents, in August 2023, a Federal Firearm Licensee who was travelling in Wyoming, reported someone broke into his vehicle and stole three firearms including a 9mm pistol, an MP7 machine gun, and a suppressor. In addition, he reported that $40,000 worth of gold coins were missing. In August 2023, detectives learned that some of the gold coins had been pawned in Casper. The pawn shop said the man was coming back to pawn more and showed police surveillance video, which led investigators to McCloskey. Agents waited for McCloskey to return to the pawn shop and secured a search warrant for his vehicle. They discovered the vehicle was stolen and seized the MP7 machine gun and the suppressor. The pistol was not recovered. McCloskey has a felony burglary conviction from 2016 and is not allowed to possess firearms. The defendant pleaded guilty on Apr. 4. This crime was investigated by ATF and prosecuted by Assistant U.S. Attorney Jonathan C. Coppom
Drug and Firearm Offenses
Robert Joseph Santistevan, 42, of Rock Springs, Wyoming, was sentenced to 120 months’ imprisonment for being a felon in possession of a firearm and distribution of fentanyl. In a related case, Brittany Lyn Isaacson, 35, of Rock Springs, was sentenced to 26 months’ imprisonment for being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentences. According to court documents, on Oct. 31, 2023, Santistevan and Isaacson were pulled over for a traffic violation in Riverton, Wyoming. During a subsequent search of the vehicle, the officer found two pistols and 189 fentanyl pills. Santistevan and Isaacson each admitted handling and carrying one of the firearms. Both Santistevan and Isaacson were previously convicted felons and therefore each was prohibited from possessing a firearm. By pleading guilty, Santistevan also admitted that he distributed fentanyl. These crimes were investigated by DCI and the Fremont County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist.
Brandon Overson, 31, of North Columbus, Montana, was sentenced to 120 months’ imprisonment for possession with intent to distribute methamphetamine and being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on June 25. According to court documents, in the summer of 2023, DCI was conducting a drug investigation in the Gillette area. The evidence pointed to Overson as a suspected dealer. On Sept. 15, 2023, agents learned Overton was driving from Denver to Gillette. Overson was pulled over while driving through Cheyenne. A subsequent search of the vehicle revealed 649 grams of methamphetamine, approximately 400 fentanyl pills, a loaded .45 caliber pistol and ten .45 caliber rounds. Overson is a previously convicted felon and is not allowed to legally possess a firearm. The defendant pleaded guilty on Feb. 27. This crime was investigated by the United States Drug Enforcement Administration (DEA), DCI and the Cheyenne Police Department. The case was prosecuted by Assistant U.S. Attorney Paige Hammer.
Estefan Morales, 30, of Brighton, Colorado, was sentenced to 92 months’ imprisonment for possession with intent to distribute methamphetamine and fentanyl and being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on June 26. According to court documents, on Sept. 29, 2023, a Fremont County Sheriff’s Office (FCSO) deputy noticed a suspicious vehicle at his neighbor’s house. The deputy called the vehicle into the FCSO, Lander Police Department (LPD) and Wyoming Highway Patrol (WHP). Once the vehicle was located, the WHP attempted to pull Morales over, but he fled, and a high-speed pursuit followed. The defendant drove into a felid where he got stuck and eventually surrendered. Officers seized 200 fentanyl pills, 40 grams of methamphetamine, and a .22 caliber pistol. Morales is a previously convicted felon and not allowed to possess firearms. The defendant pleaded guilty on Mar. 6. This crime was investigated by DEA, DCI, and the Lander Police Department. The case was prosecuted by Assistant U.S. Attorney Paige Hammer.
Drug Trafficking
Adrian Hernandez, 35, of Ogden, Utah, was sentenced to 84 months in federal prison for conspiracy to possess with intent to distribute fentanyl and methamphetamine. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on June 21. According to court documents, DEA and the Cheyenne Police Department’s Community Action Team (CPD-CAT) were conducting multiple drug trafficking investigations between July and August of 2023. In two cases, seized phones from individuals taken into custody led detectives to Hernandez. The defendant pleaded guilty on Mar. 7. This crime was investigated by DEA and CPD-CAT, and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Illegal Re-entry of a Previously Deported Alien
Alvaro Leon-Campos, 33, of Guanajuato, Mexico, was sentenced to time served plus 10 days to allow for deportation proceedings, for illegal entry into the United States. According to court documents, on Jan.18, Leon-Campos was arrested by WHP for possession of a controlled substance and booked into the Sweetwater County Detention Center. He claimed to be a resident of Mexico, so U.S. Immigration and Customs Enforcement (ICE) was contacted. A Deportation Officer processed the defendant and obtained fingerprints matching pre-existing fingerprints in their database indicating Mr. Leon-Campos was in the U.S. illegally. This case was prosecuted by Assistant U.S. Attorney Cameron J. Cook. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on June 26.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Armed Dark Web Drug Trafficker Sentenced to over a Decade in Federal PrisonRead the Press Release
DETROIT – Victor Hernandez, the leader of a conspiracy to sell cocaine and counterfeit pills over the dark web and launder the proceeds through cryptocurrency, was sentenced today to 130 months in federal prison, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Homeland Security Investigations (HSI) Detroit Acting Special Agent in Charge Jared Murphy, Assistant Special Agent in Charge Andrew P. Lawton, Drug Enforcement Administration, Detroit Field Division, and Angelo Horiates III, IRS Criminal Investigation (CI), Acting Special Agent in Charge, Detroit Field Office.
Victor Hernandez, 31, of Detroit, pleaded guilty in March to conspiracy to distribute illicit substances, a conspiracy to launder monetary instruments, his distribution of counterfeit pills, and the use of firearms in furtherance of the crime. He was sentenced today by U.S. District Judge Linda V. Parker. As part of the sentence, Hernandez was ordered to forfeit the proceeds from his crimes, in the form of a $3.1 million money judgment.
Hernandez’s sister, Carolyn Hernandez-Taylor, also pleaded guilty in the case and was sentenced to 60 months in federal prison by Judge Parker earlier this year.
Hernandez ran a dark web vendor site under the moniker “opiateconnect,” selling illicit scheduled drugs, including cocaine, and various counterfeit drugs. These counterfeit pills were made to look like alprazolam—the most commonly prescribed psychotropic medication in the United States (including under the brand name Xanax), used to manage panic and anxiety disorders—but were in fact uncontrolled research chemicals not scheduled for human consumption.
Federal investigators worked for months to determine the identity of “opiateconnect” and the location he was using. That investigation led to the execution of a search warrant at Hernandez’s house in Detroit, where agents discovered a clandestine drug lab capable of producing upwards of 20,000 pills per hour. They also found around three firearms, a “tub” containing approximately 600 grams of cocaine, thousands of pressed counterfeit alprazolam pills, $340,000 in cash, and more than $1 million in cryptocurrency.
“Today’s sentence reflects the seriousness of the danger posed to this community by the armed distribution of controlled substances and counterfeit pills,” U.S. Attorney Ison said. “This defendant tried to hide in the anonymity he thought the dark web and his use of cryptocurrency provided, but the tireless combined efforts of state and federal investigators pierced that shield. We will continue to pursue digital-age drug dealers and work to ensure that their crimes result in prison and the seizure of their illicit proceeds.”
“The efforts of drug traffickers and criminals have evolved over the years, but our commitment to hold them accountable remains the same,” said HSI Detroit acting Special Agent in Charge Jared Murphey. “As this case has demonstrated, we stand focused and ready to take down other illicit online marketplaces that would poison communities in Michigan.”
“Drug traffickers often believe the anonymity of the dark web can shield them from investigation and prosecution, and this sentencing clearly demonstrates that is a false notion. Along with our local, state and federal partners, DEA will employ every resource to bring drug traffickers like Mr. Hernandez to justice,” said DEA Acting Special Agent in Charge Lawton.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Angelo Horiates III, IRS Criminal Investigation (CI), Acting Special Agent in Charge, Detroit Field Office. “Without these ill-gotten gains, the traffickers cannot finance their organizations. The role of CI in narcotics investigations is to follow the money; we are highly adept at financially disrupting and dismantling drug trafficking organizations, online or in the physical world. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was conducted by the Detroit Dark Web Task Force, which consists of HSI, Postal Inspection Service Office of the Inspector General (USPIS-OIG), Secret Service (USSS), IRS-CI, Michigan State Police (MSP), and CBP. The purpose of the task force is to investigate criminal organizations, to include drug vendors, that operate within dark web marketplaces. The task force has disrupted and dismantled numerous drug trafficking organizations through criminal arrests, and the seizure of the proceeds from criminal activity.
Tuesday 25 June 2024
Zuni Couple Charged with Assault with Intent to Commit MurderRead the Press Release
ALBUQUERQUE – A Zuni couple was charged by indictment with assault with intent to commit murder, conspiracy, and assault resulting in serious bodily injury following a violent attack.
Shannon Concho, 45, an enrolled member of the Pueblo of Zuni, appeared before a federal judge last week and will remain in custody pending trial, which is currently scheduled for September 12, 2024.
LouAnn Johnson, 28, an enrolled member of the Pueblo of Zuni, previously appeared before a federal judge in May and will remain in custody pending trial, which is currently scheduled for September 12, 2024.
According to the indictment, on September 3, 2023, Concho and Johnson allegedly initiated a verbal altercation with John Doe, during which Johnson slapped John Doe multiple times. They then took John Doe's phones to prevent him from calling 911. The situation escalated when Concho began beating John Doe with a chair while stating his intent to murder him. Concho then instructed Johnson to kick John Doe in the head, and Johnson complied.
As the assault continued, a witness called the police. Subsequently, Johnson suggested that they flee the scene, which they did together. Concho and Johnson remained on the run until they were subsequently arrested in separate incidents.
If convicted of the current charges, Concho and Johnson face up to 20 years in prison.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. This case is being prosecuted by Assistant United States Attorney Jesse Pecoraro.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Williston, ND, Man Sentenced to 50 Years in Federal Prison for Sexually Exploiting Several Minor ChildrenRead the Press Release
Bismarck – United States Attorney Mac Schneider, District of North Dakota, announced that Nicholas Anfin Nesdahl, age 29, from Williston, ND, appeared in Federal court before District Court Judge Daniel M. Traynor for sentencing on seven counts of producing or attempting to produce images and videos depicting the sexual exploitation of minors charged in the District of North Dakota and two counts related to producing or attempting to produce and receiving images and videos of minors that were charged out of the Western District of Pennsylvania. Nesdahl was sentenced to 30 years in federal prison for the North Dakota charges and 20 years for the Pennsylvania charges, to run consecutive, with a lifetime supervised release.
Nesdahl’s conduct consisted of himself friending minors using various social networking platforms on the internet. Once his friend request was granted, Nesdahl would begin to groom the minors to produce images and videos of themselves nude or engaging in sexual activity. The activity was first discovered and reported to law enforcement by a parent of two victims located in Pennsylvania, which then resulted in a search of Nesdahl’s residence in Williston, North Dakota. As a result of that search, it was discovered that Nesdahl had victimized at least seven other victims that were located in North Dakota, Minnesota, Maryland, Texas, and New Jersey. The victims ages ranged from 6
to 15 years of age.“This 50-year sentence is a fitting one considering this defendant’s abhorrent and virtually unspeakable treatment of children,” Schneider said. “Protecting kids is a fundamental priority, and our state, federal, and local law enforcement partners will use cutting edge technology and old-fashioned investigative work to bring child predators offline and into a federal courtroom to face justice.”
“Nesdahl’s conduct online, while reprehensible, is similar to many predators who exploit minors through social networking platforms,” said Jamie Holt, HSI St. Paul Special Agent in Charge. “This is a significant threat to our communities. Parents, guardians, and educators should understand that online apps providing messaging, photo, or video sharing capabilities could lead their children into a world where they may be at risk. It’s very important that adults have conversations with kids and provide oversight to ensure they aren’t exposed to environments where they could potentially be vulnerable to predators.Well done to our special agents and law enforcement partners for bringing Nesdahl to justice.”This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project
Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.For additional resources for survivors or victims, help is available at the National Center for Missing & Exploited Children, 1-800-THE-LOST (1-800-843-5678) and CyberTipline URL https://report.cybertip.org.
This case was investigated by the Homeland Security Investigations and the North Dakota Bureau of Criminal Investigations Internet Crimes Against Children Task Force, and prosecuted by Assistant U.S. Attorneys Gary Delorme, District of North Dakota.
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WikiLeaks Founder Pleads Guilty and Is Sentenced for Conspiring to Obtain and Disclose Classified National Defense InformationRead the Press Release
Julian P. Assange, 52, the founder of WikiLeaks, pleaded guilty today to conspiring with Chelsea Manning, at that time a U.S. Army intelligence analyst, to unlawfully obtain and disclose classified documents relating to the national defense. After obtaining classified national defense information from Manning, and aware of the harm that dissemination of such national defense information would cause, Assange disclosed this information on WikiLeaks.
The guilty plea concludes a criminal matter that dates back to March 2018, when Assange was first indicted in the Eastern District of Virginia. There, and in superseding indictments, Assange was charged with conspiring with Manning, then a “Top Secret” U.S. security clearance holder, to further Manning’s unlawful acquisition and transmission of bulk classified information, including Manning’s use of a government computer to illegally download hundreds of thousands of classified documents and transmit them without authorization to WikiLeaks.
Assange was detained in the United Kingdom based on the U.S. charges for the last 62 months, while he contested extradition. As part of the plea agreement, Assange was transported to the U.S. District Court for the Northern Mariana Islands to enter his felony guilty plea and be sentenced on the morning of June 26 (Saipan local time) in a U.S. courtroom, with the venue reflecting Assange’s opposition to traveling to the continental United States to enter his guilty plea and the proximity of this federal U.S. District Court to Assange’s country of citizenship, Australia, to which he will return. At today’s proceeding, Assange admitted to his role in the conspiracy to violate the Espionage Act and received a court-imposed 62-month time-served sentence, reflecting the time he served in U.K. prison as a result of the U.S. charges. Following the imposition of sentence, he will depart the United States for his native Australia. Pursuant to the plea agreement, Assange is prohibited from returning to the United States without permission.
Beginning in late 2009, Assange and WikiLeaks actively solicited United States classified information, including by publishing a list of “Most Wanted Leaks” that sought, among other things, bulk classified documents. As set forth in the public charging documents, Assange actively solicited and recruited people who had access, authorized or otherwise, to classified information and were willing to provide that information to him and WikiLeaks—and also solicited hackers who could obtain unauthorized access to classified information through computer network intrusions. Assange publicly encouraged his prospective recruits to obtain the information he desired by any means necessary, including hacking and theft, and to send that information to Assange at WikiLeaks.
Between January 2010 and May 2010, in the course of the conspiracy with Assange, Manning used U.S. government computer systems to download hundreds of thousands of documents and reports, many of them classified at the SECRET level and relating to the national defense, which signified that unauthorized disclosure could cause serious damage to United States national security. In total, Manning downloaded four nearly complete U.S. government databases that contained, among other things, approximately 90,000 Afghanistan war-related significant activity reports, 400,000 Iraq war-related significant activity reports, 800 Joint Task Force Guantanamo (JTF GTMO) detainee assessment briefs, and 250,000 U.S. Department of State cables. Manning also downloaded files regarding rules of engagement in the Iraq war, most of which were classified at the SECRET level and which delineated the circumstances and limitations under which United States forces would initiate or conduct combat engagement with other forces.
After downloading digital reams of classified documents and files, Manning electronically sent them to Assange to be publicly posted on WikiLeaks’s website. During Manning’s bulk exfiltration and passage of classified materials to WikiLeaks, Manning and Assange communicated regularly via online platforms about Manning’s progress and what classified information Assange wanted. For example, after sending the classified JTF GTMO detainee assessment briefs to Assange, Manning told Assange “thats [sic] all I really have got left.” To encourage Manning to continue to take classified documents from the United States and provide them to Assange and WikiLeaks without authorization, Assange replied, “curious eyes never run dry in my experience.”
In or about 2010 and 2011, Assange publicly disclosed via the WikiLeaks website hundreds of thousands of documents that Manning had taken without authorization and given to him, including approximately 75,000 Afghanistan war-related significant activity reports, classified up to the Secret level; 400,000 Iraq war-related significant activity reports, classified up to the Secret level; 800 JTF GTMO detainee assessment briefs, classified up to the Secret level; and over 100,000 State Department cables, some of which were classified up to the Secret level.
Unlike news organizations that published redacted versions of some of the classified documents that Assange obtained from Manning and then shared with those organizations, Assange and WikiLeaks disclosed many of the raw classified documents without removing any personally identifying information. Specifically, in many instances, the classified documents Manning unlawfully provided to Assange were later released publicly by Assange and WikiLeaks in a raw or unredacted form that placed individuals who had assisted the U.S. government at great personal risk. Assange’s decision to reveal the names of human sources illegally shared with him by Manning created a grave and imminent risk to human life. For example, the State Department cables that WikiLeaks disseminated included information from journalists, religious leaders, human rights advocates, and political dissidents who had chosen to provide information to the United States in confidence at significant risk to their own safety. By publicly releasing these documents without redacting the names of human sources or other identifying information, Assange subjected these individuals to serious harm and arbitrary detention. Assange even acknowledged in public statements that he knew that publicly disclosing unredacted classified documents containing the names and other identifying information of people who had shared information with the U.S. government in confidence could put those people at risk of harm.
The FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing Assange’s arrest and in litigating Assange’s extradition. The United Kingdom’s Crown Prosecution Service, National Extradition Unit (and its predecessor in the Metropolitan Police Service), and Central Authority also provided significant assistance to the extradition proceedings over the past five years. Logistical support was also provided by the United Kingdom’s National Crime Agency’s Joint International Crime Centre, U.K. law enforcement agencies, and U.S. Department of Homeland Security, Homeland Security Investigations, and U.S. Customs and Border Protection.
The National Security Division’s Counterintelligence and Export Control Section (CES), U.S. Attorney’s Office for the District of Guam and the Northern Mariana Islands (NMI), and U.S. Attorney’s Office for the Eastern District of Virginia handled the case. U.S. Attorney Shawn N. Anderson for the District of Guam and NMI, CES Deputy Chief Matthew McKenzie, and National Security Cyber Section Trial Attorney Jacques Singer-Emery represented the United States in the NMI proceedings. CES Trial Attorneys Nicholas Hunter and Adam Small, and Trial Attorney Rachel Yasser and Legal Advisor/International Affairs Coordinator Amanda June Chadwick of the Justice Department’s Office of International Affairs also provided substantial assistance.
Link to Criminal Information
Link to Plea Agreement
Virginia Couple Sentenced for Forcing Victim to Work at Their Gas Station and Convenience Store for over Three YearsRead the Press Release
A Virginia couple was sentenced today for compelling the labor of the man’s younger cousin at their gas station and convenience store for over three years. The couple has since divorced.
Harmanpreet Singh, 31, was sentenced to 135 months in prison and Kulbir Kaur, 43, was sentenced to 87 months in prison. Additionally, the court ordered Singh and Kaur to pay the victim $225,210.76 in restitution.
“The defendants exploited their relationship with the victim to lure him to the United States with false promises that they would help enroll him in school,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants confiscated the victim’s immigration documents and subjected him to threats, physical force and mental abuse to coerce him to work long hours for minimal pay. This sentence should send a strong message that such forced labor will not be tolerated in our communities. The Justice Department is committed to fully enforcing our federal human trafficking statutes to vindicate the rights of survivors and hold human traffickers accountable for such shameful exploitation of vulnerable victims.”
“The crimes committed by these defendants are not merely violations of the law; they are an afront to humanity,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “These defendants preyed on the victim’s earnest desire to attain an education and improve his life. Instead, they deprived him of the most basic human needs and robbed him of his freedom. We remain steadfastly committed to securing justice for victims of human trafficking.”
“The defendants lured the victim to travel from India to Virginia to work at their gas station where they exploited him for over three year,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI will continue to work in all communities to stop forced labor trafficking and the psychological and physical violence that comes with it.”
Following a two-week trial in January, a federal jury in the Eastern District of Virginia convicted Singh and Kaur of conspiracy to commit forced labor, forced labor, harboring for financial gain and document servitude. The evidence presented at trial demonstrated that, in 2018, the defendants enticed the victim, Singh’s cousin and then a minor, to travel to the United States from India with false promises of helping enroll him in school. After the victim arrived in the United States, the defendants took his immigration documents and instead forced him to provide labor and services at Singh’s store for over three years, between March 2018 and May 2021.
According to the evidence presented at trial, Singh and Kaur compelled the victim to work at the store — including cleaning, cooking, stocking and handling the cash register and store records — between 12 to 17 hours a day, nearly every day, for minimal pay. Singh and Kaur used various coercive means, including confiscating the victim’s immigration documents and subjecting the victim to physical abuse, threats of force and other serious harm, and, at times, degrading living conditions to compel him to continue working.
The evidence further showed that the defendants left the victim at the store to sleep in a back office for days at a time on multiple occasions, limited his access to food, refused to provide medical care or education, used surveillance equipment to monitor the victim both at the store and in their home, refused his requests to return to India and made him overstay his visa. The defendants also forced the victim to marry Kaur and used that marriage to threaten to take the victim’s family’s properties or falsely report him to the police if he left. The evidence showed that Singh pulled the victim’s hair, slapped and kicked him when he requested his immigration documents back and tried to leave and, on three different occasions, threatened the victim with a revolver for trying to take a day off and for trying to leave.
The FBI Richmond Field Office investigated the case.
Assistant U.S. Attorneys Avi Panth and Peter S. Duffey for the Eastern District of Virginia and Trial Attorney Matthew Thiman of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
U.S. Attorney and HUD Inspector General Host Safe Housing Summit in D.C.Read the Press Release
WASHINGTON – Members of the Anacostia Coordinating Council, today, heard presentations and had discussions with U.S. Attorney Matthew M. Graves and the U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis at a panel focused on promoting the health, safety, and civil liberty of tenants living in HUD-assisted housing. The program focused on eliminating environmental hazards and combatting sexual misconduct in HUD-assisted housing. The U.S. Department of Justice’s Civil Rights Division and Office of Environmental Justice also presented on related topics, including the development of a Department-wide environmental justice strategic plan.
The panel, which took place at the monthly meeting of the Anacostia Coordinating Council at Martha’s Table in the Seventh Metropolitan Police Department District, was part of the HUD Inspector General’s initiatives promoting safe housing strategies related to environmental justice, and how to recognize and report sexual misconduct in housing.
Attendees included members and leadership of communities east of the Anacostia River who might be impacted by environmental injustices, such as lead paint in their homes, or become victims of sexual harassment in housing by their landlords, property managers, maintenance staff, or other housing personnel in positions of authority. Members of the public were encouraged to share their experiences, concerns, and expertise to build future partnerships and provide aid and assistance to beneficiaries when reporting matters related health, safety, or security in housing.
“No one should be subjected to unsafe conditions or harassment in order to have a roof over their head,” said U.S. Attorney Graves. “The residents of D.C. have a right to feel safe in their homes, to have their rights respected by their landlords, and to not have to worry that they and their families will be harmed by environmental hazards. The affirmative civil rights and environmental justice team in this Office is working, daily, to prevent, correct, and prosecute those cases that violate HUD’s housing assistance program guidelines. Today’s safe housing panel, we hope, will arm residents with the information they need to ensure their rights are protected. You have a right to feel safe in your home.”
“I am grateful for the opportunity afforded us by the Anacostia Coordinating Council to directly engage community members about HUD OIG’s initiatives in pursuit of environmental justice violations and combatting sexual misconduct in housing,” said Inspector General Oliver Davis. “We remain committed to working closely with our partners at the Department of Justice and the U.S. Attorney’s Office to raise awareness about violations of federal law in these areas and pursue bad actors who victimize vulnerable people receiving HUD assistance.”
If you have or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or you have or someone you know has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov. Individuals who believe they may have been victims of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at (202) 252-2500, [email protected] or https://www.justice.gov/usao-dc/affirmative-civil-rights-and-environmental-justice.
For more information on the U.S. Attorney’s Office for the District of Columbia, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-dc and https://www.justice.gov/usao-dc/programs/community-prosecution/community-engagements.
U.S. Attorney Brandon B. Brown Announces the Availability of Project Safe Neighborhoods Grant Funds for the Western District of LouisianaRead the Press Release
SHREVEPORT / LAFAYETTE / ALEXANDRIA / LAKE CHARLES/ MONROE, La. – United States Attorney Brandon B. Brown and the Project Safe Neighborhoods (PSN) Task Force announced the availability of approximately $152,565 in PSN grant funds for the Western District of Louisiana. The Department of Justice, Office of Justice Programs (OJP), and Bureau of Justice Assistance is seeking applications for funding of a grant under the PSN Program. At least 30% ($41,192.55) of the grant funds must be designated for grants under the PSN Program to fund new and/or current gang violence reduction strategies in the Western District.
The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions. PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“The PSN program is key in our attack on gun violence in the Western District of Louisiana,” said U.S. Attorney Brandon B. Brown. “This grant will help assist officers and others take back our neighborhoods and streets. Times are hard in terms of funding for law enforcement and non-governmental organizations that seek to assist in making our communities safer. Therefore, we are grateful for these funds and encourage those organizations that focus on crime deterrence and prevention to apply.”
Past recipients of PSN grants have been the Alexandria, Lake Charles, Monroe, Shreveport and Lafayette Police Departments as well as the Caddo Parish and Lafayette Parish Sheriff’s Offices and Lafayette City Marshal’s Office. Funds were granted for various programs to include assisting with implementation of a new computer software program, body cameras for law enforcement officers, training for officers on gang prevention and overtime hours for law enforcement officers to increase patrols in areas that saw an increase in violent crime, including narcotics, gang and gun-related violent crimes.
The Shreveport Police Department has been named as the fiscal agent for administering the funds allowed through this PSN grant. A committee comprised of community volunteers from the five major cities in the Western District of Louisiana has been appointed to be responsible for reviewing the applications received from law enforcement and non-governmental agencies who submit their grant proposals.
The Shreveport Police Department, on behalf of the DOJ’s OJP, is seeking applications for these grant funds under the PSN Program. At least 30% of the grant funds must be designated for grants under the PSN Program to fund new and/or current gang violence reduction strategies in the Western District. Various types of single of multi-grantee grant proposals are welcome, including those that address the following:
- Gang and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication and supervision programs;
- Prisoner re-entry programs; or
- Other innovative related projects.
The FY 2023 PSN Grant Announcement can be found by clicking on the "Attachments" link below. To be eligible, grant proposals must be submitted no later than 5 p.m. on Friday, July 26, 2024, to the following e-mail address: [email protected]. Interested applicants may also e-mail questions or contact Lisa Alwert at (337) 262-6618 for additional information.
An informational meeting will be held via WebEx on Monday, July 1, 2024, at 2 p.m. If you are interested in applying for these grant funds and learning more about the details required to be eligible, please send your e-mail and contact information to: [email protected] by Friday, June 28, 2024 by 5 p.m. in order to obtain the link to the WebEx meeting.
More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
Attachments:
Guidelines for FY 2023 Project Safe Neighborhoods Grant Proposals# # #
Two Men Sentenced for Orchestrating Multimillion-Dollar Cryptocurrency Securities Fraud and Wire Fraud SchemesRead the Press Release
Two men were sentenced for manipulating the price of a security and scheming to defraud investors in connection with the purchase of Hydrogen Technology’s cryptocurrency, HYDRO.
Shane Hampton, 32, of Philadelphia, was sentenced today to two years and 11 months in prison. His co-conspirator, Michael Kane, 39, of Miami Beach, Florida, was sentenced yesterday to three years and nine months in prison.
“Shane Hampton, Michael Kane, and their co-conspirators defrauded investors by using a trading bot to manipulate the price of their company’s cryptocurrency,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “In this case, for the first time, a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud. This prosecution and the sentences imposed today should serve as a warning: The Criminal Division will not hesitate to use all tools at its disposal—including the federal securities laws—to protect the integrity of cryptocurrency markets.”
According to court documents and evidence presented at trial, Kane was the co-founder and CEO of Hydrogen Technology, and Hampton was the Head of Financial Engineering at the company. Kane and Hampton hired an outside firm, Moonwalkers Trading Limited of South Africa, to manipulate the price of HYDRO on a cryptocurrency exchange headquartered in the United States by using an automated trading application or “bot” to flood the market with fake and fraudulent orders from October 2018 to April 2019. Kane, Hampton, and their co-conspirators executed approximately $7 million in “wash trades” and placed over $300 million in “spoof trades” for HYDRO through the bot. These manipulative trades were designed to, and did, fraudulently induce retail investors to purchase HYDRO. Through the artificially inflated prices that resulted from their manipulation efforts, Kane, Hampton, and their co-conspirators made approximately $2 million in profits from selling HYDRO over roughly 10 months.
Kane pleaded guilty in November 2023 to one count of conspiracy to commit securities price manipulation, one count of conspiracy to commit wire fraud, and two counts of wire fraud. Hampton was convicted by a federal jury on Feb. 7 of one count of conspiracy to commit securities price manipulation and one count of conspiracy to commit wire fraud. The jury unanimously found that the defendants’ sales of HYDRO constituted investment contracts, making the token a security under federal securities law. Hampton’s case was the first criminal jury trial in which a cryptocurrency was found to be a security.
Two other co-conspirators, Andrew Chorlian and Tyler Ostern, pleaded guilty in May 2023 to one count of conspiracy to commit securities price manipulation and wire fraud, and both were previously sentenced.
The FBI Miami Field Office investigated the case.
Assistant Chief Scott Armstrong and Trial Attorney Andrew Jaco of the Criminal Division’s Fraud Section prosecuted the case.
Two Members of Infamous Ryders Motorcycle Club Convicted of Robbery and Firearm OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven Wong, a/k/a “Chino,” age 43, of Shallotte, North Carolina, and Solomon Rodriguez, a/k/a “Solo,” age 34, of Reading, Pennsylvania, were convicted on June 21, 2024, for conspiracy to commit Hobbs Act Robbery, firearms conspiracy, attempted Hobbs Act Robbery, Hobbs Act Robbery, and two counts of use of firearms in furtherance of a crime of violence following a two-week trial before United States District Court Judge Robert D. Mariani
According to United States Attorney Gerard M. Karam, Wong was the president of the Schuylkill County chapter of the Infamous Ryders Motorcycle Club, of which Solomon Rodriguez was a member. Wong used his position to recruit members of the motorcycle club to participate in a series of brutal home-invasion armed robberies in Schuylkill and Berks County in the summer and fall of 2020. Wong rewarded loyal members involved in the conspiracy with money and free drugs. During these home invasion robberies, two or three members of the conspiracy would enter the homes of local street-level drug dealers while wearing masks and armed with firearms and knives and rob the victims of drugs and drug proceeds. One of the firearms used was a fully automatic homemade AR-15 style assault rifle.
During the seven-day trial, prosecutors from the U.S. Attorney’s Office presented the testimony from approximately 19 witnesses, including expert witness testimony from an ATF Firearms expert, and an expert in historic cell-site location data analysis. Both defendants testified on their own behalf.
“This group acted with extreme violence, invading people’s homes with machine guns drawn, and committing crimes that brutalized their victims,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Though our cooperative efforts with the Pennsylvania State police and local police departments, we successfully brought these criminals to justice and ended their trail of crimes, making our communities safer again.”
The charges stem from an investigation involving the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Pennsylvania State Police, the Mahanoy City Police Department, the Schuylkill Haven Police Department, the Pottsville Police Department, the Shillington Police Department, the Reading Police Department, and the Lehigh County District Attorney’s Office. Assistant United States Attorneys James Buchanan, Jenny Roberts, and Sarah Lloyd prosecuted the case.
This case is also 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.
In this case, the maximum penalty is life imprisonment. 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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Tampa Man Sentenced to 24 Years in Federal Prison for Committing Three Armed RobberiesRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Donald Robert Smith (29, Tampa) to 24 years in federal prison for three separate Hobbs Act robberies, brandishing a firearm during and in relation to one of the robberies, and discharging a firearm during and in relation to another of the robberies. As part of his plea agreement, Smith has agreed to forfeit the firearm used in the offenses.
According to court documents, on August 1, 2022, Smith robbed a Tampa business pointing a firearm at business employees. Two days later, Smith robbed another Tampa business by pointing a firearm at the cashier and demanding money. During the investigation into the first two robberies, a search warrant for Smith’s vehicle was executed. Inside the vehicle, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives located a Taurus 9mm handgun. This firearm was then linked by a shell casing to another robbery on August 1, 2022. During this robbery, Smith approached an individual as he was turning in his work truck for the night. Smith approached the victim and demanded his wallet. As Smith walked away, he discharged the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture is being handled by Assistant United States Attorney James Muench.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Stilwell Resident Pleads Guilty to Possessing Material Involving the Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Geoff Edward Luethje, age 46, of Stilwell, Oklahoma, entered a plea of guilty to one-count of Possession of Certain Material Involving the Sexual Exploitation of a Minor.
The Indictment alleged that between April and August of 2023, Luethje knowingly possessed, and accessed with an intent to view, visual depictions of minors engaging in sexually explicit conduct, including depictions of children under the age of twelve.
The charges arose from an investigation by the Federal Bureau of Investigation’s Residence Agencies in Atlanta, Georgia, and Muskogee, Oklahoma.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Luethje will remain in the custody of the U.S. Marshal Service pending sentencing.
Assistant United States Attorney Caila M. Cleary represented the United States.
Springfield Man Pleads Guilty to Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Springfield man pleaded guilty today to unlawfully possessing a firearm and ammunition.
Robbie Delgado, 25, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 2, 2024. Delgado was indicted by a federal grand jury in March 2024.
On Feb. 8, 2024, Delgado was found in possession of a Baretta .380 caliber semi-automatic handgun. Delgado is prohibited from possessing firearms and ammunition following a 2019 state conviction in Hampden County of armed robbery and armed assault with intent to rob, for which he was sentenced to 18 months in prison, followed by four years’ probation.
The charge of possession of the firearm by a previously convicted felon provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian A. Kyes, United States Marshal for the District of Massachusetts; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Springfield Police Superintendent Lawrence Akers made the announcement. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.
South Texan imprisoned in cryptocurrency purchase and child pornography downloadRead the Press Release
McALLEN, Texas – A 32-year-old Edcouch resident has been sentenced for receiving child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Servando Diaz pleaded guilty March 19.
U.S. District Judge Drew Tipton has now sentenced Diaz to 144 months. At the hearing, the court also heard additional information including that Diaz admitted to downloading child pornography to numerus personal devices for his own use online and offline. In addition, the court heard that his collection of child pornography included a wide range of content including videos that ranged in length, sadistic and masochistic files and bestiality. Diaz was further ordered to pay a $5,000 special assessment and will serve 10 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.
From approximately Nov. 30, 2022, to approximately Dec. 7, 2022, Diaz downloaded child pornography from links he purchased by utilizing cryptocurrency.
Law enforcement conducted an ongoing investigation of offenders engaging in a commercial sexual exploitation ring where child pornography was sold and paid for through cryptocurrency. In return, links were provided to the purchaser via MEGA, a file hosting service.
Authorities identified an individual who purchased child pornography directly from the commercial sexual exploitation ring through their transaction information. An open-source database check confirmed the deposit address in Edcouch belonged to Diaz.
On Aug. 15, 2023, Diaz agreed to an interview with law enforcement and admitted to viewing, purchasing and downloading child pornography for approximately 10 years.
Diaz utilized various platforms including Telegram and MEGA to purchase the links with cryptocurrency. Additionally, Diaz paid approximately $50-150 via PayPal to gain access to a private group known to distribute child pornography on either Discord or Telegram.
Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of 360 videos and 178 image files depicting child pornography including prepubescent children engaging in sexually explicit conduct.
Diaz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Slovakian Man Admits $730,000 Pandemic Loan FraudRead the Press Release
ST. LOUIS –A man from the Slovak Republic pleaded guilty in U.S. District Court in St. Louis Tuesday and admitted fraudulently obtaining pandemic relief loans totaling $730,550.
Mark Ethan Jermain, 41, pleaded guilty to three counts of wire fraud. He admitted submitting three fraudulent Paycheck Protection Program (PPP) loan applications from April 26, 2020, to July 16, 2021, using his prior legal name, Arsene Millogo. The PPP loans were intended to help struggling American businesses and jobs during the COVID-19 pandemic. The money was supposed to be spent on payroll and other business expenses.
On April 26, 2020, Jermain submitted a fraudulent $80,000 loan application for Crazyeats LLC, a company he’d established in Missouri in 2017. He falsely and fraudulently inflated the average monthly payroll he’d listed for Crazyeats. After the loan was approved, Jermain transferred the money to a Slovakian bank account.
On May 13, 2020, Jermain submitted another fraudulent PPP loan application, this time for a company he’d set up called Unimentors LLC, in the amount of $325,275. The application contained similar false information, and the resulting loan money was also transferred to Slovakia. On Feb. 5, 2021, Jermain submitted a Second Draw PPP loan application for $325,275. After the application was approved, the money was also transferred to Slovakia.
The loans were later forgiven because Jermain falsely claimed that he’d used all the money for payroll purposes. He actually used the money for personal purchases and other unapproved purposes.
Jermain was in the Slovak Republic when he committed his crimes. Jermain returned to the U.S. on August 17, 2023, and was arrested by FBI agents on September 7, the day he was scheduled to leave the country.
Jermain is scheduled to be sentenced January 8. Wire fraud is punishable by up to 20 years in prison, a fine of $250,000, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Gwen Carroll is prosecuting the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Salvadoran Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Salvadoran man living in Somerville pleaded guilty today in federal court in Boston to unlawfully reentering the United States after deportation.
Tony Joel Salvador Umanzor, 36, pleaded guilty to one count of unlawful reentry of deported alien. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 9, 2024. In May 2024, Salvador Umanzor was indicted by a federal grand jury. He has been in federal custody since his initial appearance in federal court on May 9, 2024.
Salvador Umanzor was removed from the United States on Oct. 10, 2018 following a state conviction in 2013 for trafficking oxycodone, for which he was sentenced to five years and one day in prison. Sometime after his removal, Salvador Umanzor unlawfully reentered the United States, and was located in April 2024 following a state arrest for unrelated conduct.
The charge of illegal reentry subsequent to conviction of an aggravated felony provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. If convicted, the defendant will be subject to deportation upon completion of an imposed sentence. 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; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.