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Tuesday 25 June 2024
Repeat Gastonia Drug Trafficker Is Sentenced to 15 Years for Drug DistributionRead the Press Release
CHARLOTTE, N.C. –Kenter O’Neal Ruff, 45, of Gastonia, N.C., was sentenced to 180 months in prison followed by six years of supervised release for drug distribution, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Trent Conard of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at Ruff’s trial, and witness testimony, over the course of an investigation into drug trafficking in Gaston County law enforcement identified Ruff as a local drug distributor. Trial evidence established that, on multiple occasions between October 2020 and April 2021, Ruff sold cocaine base to an individual cooperating with law enforcement. At the time, Ruff was on supervised release stemming from a prior federal drug conviction and had additional state convictions related to drug trafficking and drug possession.
On January 5, 2023, a federal jury convicted Ruff of four counts of distribution of cocaine base. Ruff will remain in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
U.S. Attorney King thanked the FBI and the Gastonia Police Department for their investigation of the case.
Assistant United States Attorneys Thomas Kent and Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte and Special Assistant United States Attorney (SAUSA) William Wiseman prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Reno Man Sentenced to Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
RENO – A Reno resident was sentenced Monday by United States District Judge Anne R. Traum to 36 months in prison to be followed by lifetime supervised release for possessing over 600 images of child sexual abuse material (CSAM).
According to court documents, between December 11, 2022 and February 14, 2023, Carl Baker (78) possessed and accessed computers and hard drives that contained CSAM. He admitted that he possessed more than 600 images of minors younger than 12 years of age.
In January 2024, Baker pleaded guilty to one count of possession of child pornography. In addition to imprisonment, under the Sex Offender Registration and Notification Act (SORNA), Baker must register as a sex offender and keep the registration current.
United States Attorney Jason M. Frierson and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the Internet Crimes Against Children (ICAC) Task Force investigated the case. Assistant United States Attorney Penelope Brady and former Assistant United States Attorney Richard Casper 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 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 Justice.gov/PSC.
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Previously Convicted Felon from Donora Indicted on Drug Trafficking and Firearm ChargesRead the Press Release
PITTSBURGH, Pa. – A resident of Donora, Pennsylvania, has been indicted by a federal grand jury on charges of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
The three-count Indictment named Tre Robert Goins, 30, as the sole defendant.
According to the Indictment, on or about May 24, 2024, Goins was found to be in possession of a quantity of fentanyl and a quantity of cocaine, which he intended to distribute. A previously convicted felon, Goins also knowingly and unlawfully possessed a firearm in furtherance of his drug trafficking crime. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
The law provides for a maximum total sentence of not less than five years and up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Kelly M. Locher is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
PetroChina International America to pay fine, forfeiture for export violationsRead the Press Release
HOUSTON – PetroChina International America Inc. (PCIA) has entered into an agreement to pay a fine and monetary forfeiture totaling $14.5 million for violations of U.S. export law, announced U.S. Attorney Alamdar S. Hamdani along with Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) - Houston, and Special Agent in Charge Trey McClish, Department of Commerce Bureau of Industry and Security (BIS) Office of Export Enforcement (OEE) - Dallas.
PCIA is a subsidiary of PetroChina International Co. Ltd., one of the largest oil and gas companies in the world. It was incorporated in New Jersey in 2003 and is principally located in Houston.
PCIA agreed to pay the fine and forfeiture after authorities discovered evidence they had reported inaccurate information in the Automated Export System (AES), an electronic database that exporters use to declare international exports from the United States. Specifically, PCIA misclassified more than $32 million of ultra-low-sulfur diesel fuel as mineral oil mix for certain export transactions to Mexico that took place in 2019 and 2020.
“From its bustling port to its proximity to Central and South America, Houston is a lucrative hub for international commerce. The city’s continued growth depends on companies playing by the rules, in this case export and import regulations,” said Hamdani. “The potentially false or misleading valuations PetroChina International America input into a government database gave it an unfair competitive advantage while also harming the integrity of global trade with nations like Mexico. The $14.5 million forfeiture and fine assessed against PCIA should send a message to all those companies still not playing by the rules – The Southern District of Texas will hold you to account.”
The investigation that led to fine and forfeiture began in December 2019 after Mexican authorities discovered discrepancies between importation documents for a Panamanian oil tanker after it made entry in Port Veracruz, Mexico. Mexican authorities contacted U.S. trade officials for assistance in clarifying the discrepancies.
Authorities conducted a historical analysis of export data PCIA provided, which revealed additional exports that were misclassified and/or undervalued at the time of export and then entered into AES.
“PCIA misclassified or undervalued millions of dollars in petroleum exports using the U.S. electronic database that is trusted throughout the global marketplace for timely, accurate and reliable data and information,” said Dawson. “These actions helped facilitate illegal activity abroad and damaged America’s reputation as a leader in global trade. The entry of false or misleading information into export systems is a serious law violation. Working in conjunction with our domestic and international partners, we were able to uncover these violations of U.S. export law and levy a fine and forfeiture totaling $14.5 million to level the playing field for competitors and deter similar unlawful conduct in the future.”
“Today’s forfeiture is a prime example of the U.S. government’s strong interagency partnerships working together to effectively target entities engaging in illicit activities abroad, especially those attempting to use the country’s own systems to facilitate that activity,” said McClish. “BIS will continue to identify and disrupt those who attempt to profit from and circumvent U.S. export controls and regulations.”
PCIA has fully cooperated with the investigation into the export violations and has enhanced its compliance program. It has agreed to provide the U.S. Attorney’s Office with details of its efforts in a yearly report for the three-year-term.
HSI, BIS and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is handling the matter along with HSI’s embedded counsel.
The U.S. Attorney’s Office and HSI Houston actively encourage the submission of voluntary self-disclosures (VSDs) from parties who suspect they may have violated U.S export law. VSDs serve as a strong indication of a party's commitment to complying with U.S. export law and regulatory controls. To prevent unfair trade and ensure a level playing field, HSI also encourages the reporting of suspected or known third-party violations of U.S. export law. To self-disclose a potential violation or report a suspected third-party violation, please contact HSI.
Personal Assistant Sentenced after Embezzling more than $2.1 Million from Long-time Employer and FriendRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Sara E. Hill sentenced Christine Fletcher, 62, for Bank Fraud and Tax Evasion. Judge Hill ordered Fletcher to serve 36 months imprisonment, followed by three years of supervised release. She is further ordered to pay $2,188,870 to the victim and $549,964 to the IRS in restitution.
According to court documents, Fletcher was a trusted assistant for over 38 years and worked directly for the business owner. Fletcher had access to several bank accounts and was often included in family affairs. She took advantage of her deeply trusted position by repeatedly embezzling funds for nearly ten years. Fletcher deposited funds into her personal accounts and paid personal credit card bills by forging the owner's deceased spouse's signature on hundreds of checks. Fletcher admitted that her motives were based solely on greed. She further admitted to agents that until she was confronted by the owner and fired, she had no idea how much she had stolen.
Fletcher pled guilty in March 2023 and agreed that the restitution may not be discharged in any bankruptcy proceeding.
Fletcher was permitted to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons.
The IRS Criminal Investigations and the U.S. Secret Service investigated the case. Assistant U.S. Attorney David D. Whipple and Thomas E. Buscemi prosecuted the case.
Palmetto Man Sentenced to 60 Years for Producing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Christopher Lee Thompson (46, Palmetto) to 60 years in federal prison for production of child sexual abuse material. The court also ordered Thompson to forfeit two cellphones, an external hard drive, a box of DVDs, and a 128GB Micro SD Card, which are traceable to proceeds of the offense. Thompson entered a guilty plea on March 6, 2024.
According to court documents, law enforcement investigated Thompson based on allegations made against him for sexual battery of a five-year-old child. After securing and executing a residential search warrant, law enforcement discovered Thompson possessed nearly 20,000 images of child sexual abuse material and produced his own child sexual abuse material with several different victims, all 13 years of age or younger.
“While it's heartbreaking to learn of yet another case of innocence lost because of a sexual predator, it's reassuring to learn of the continued dedication of special agents and our law enforcement partners in making sure this predator spends a long time in prison for his despicable crime,” said FBI Tampa Division Acting Special Agent in Charge Rodney Crawford.
This case was investigated by Manatee County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Abigail K. King.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Man Sentenced to 120 Months Prison for Attempted Access with Intent to View Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Angel Garcia, of Omaha, Nebraska, was sentenced on June 24, 2024, in federal court in Lincoln, Nebraska for attempting to access with intent to view child pornography after having previously been convicted of a child pornography offense. Senior United States District Judge John M. Gerrard sentenced Garcia to 120 months’ imprisonment. There is no parole in the federal system. After Garcia is released from prison, he will begin a 7-year term of supervised release.
In 2023, Garcia was on supervised release, following a federal conviction for receiving and distributing child pornography. Concerned about how Garcia was doing on supervised release, probation conducted a search of his residence, which located internet capable devices Garcia was not allowed to possess per the terms of his supervision.
A forensic review of those devices located evidence that Garcia was attempting to access child pornography online. Several keywords, associated with child pornography, were located on websites Garcia had accessed, as well as specific websites dedicated to conversations about child sexual abuse. The forensic review also found that a media player application on the device had played videos with names indicative of child pornography.
This case was investigated by the Douglas County Sheriff’s Office and the U.S. Probation Office.
Omaha Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Calvin Dugan, 35, of Omaha, Nebraska, was sentenced June 25, 2024, in federal court in Lincoln, Nebraska for possession of child pornography with a prior conviction. Senior United States District Judge John M. Gerrard sentenced Dugan to 132 months’ imprisonment. There is no parole in the federal system. After Dugan’s release from prison, he will begin a 15-year term of supervised release. Dugan will also continue to be required to register as a sex offender.
Dugan was previously convicted in October 2018 in the United States District Court for the District of Nebraska for possession of child pornography and was on supervised release after serving his prison sentence. During a polygraph exam which was a required condition of his supervised release, Dugan admitted to being in possession of multiple unapproved electronic and internet capable devices. The following day, in August 2023, probation arrived at Dugan’s residence, where he advised probation officers he had the devices ready to be turned over and handed over an Xbox console and a Samsung Galaxy S9 phone. Previously, Dugan had also told his supervised release officer that he had SD cards. When asked about those, Dugan initially advised they must have fallen out of his bag, but when pressed, ultimately turned over three SD cards hidden inside a deck of playing cards. Three additional thumb drives were observed in plain view and seized by probation. Dugan admitted there would be “pictures of teens” on one of the SD cards.
The electronics were turned over to law enforcement for forensic evaluation. That evaluation revealed over 650 images that constituted child pornography.
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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Douglas County Sheriff’s Office.
Olympia man sentenced for racially motivated threats against federal workerRead the Press Release
Tacoma – A 42-year-old Thurston County resident was sentenced today in U.S. District Court in Tacoma to 30 months in prison for making a threat against a Black federal employee at the Social Security office in Olympia, Washington, announced U.S. Attorney Tessa M. Gorman. Steven L. Veres was initially charged in July 2023. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “Your criminal history shows a disrespect for the law.”
“This defendant not only used racial slurs in this case, investigators discovered his use of racial slurs in social media messages back in 2020 when he was threatening to find and assault or kill a different Black victim,” said U.S. Attorney Gorman. “Such conduct is a window into his hate-filled mindset that leads to this prison sentence today.”
According to records filed in the case, on February 16, 2023, Veres and a companion went to the Olympia Social Security Administration office seeking a replacement Social Security card. When a Black Social Security Administration employee told Veres that Veres lacked the proper paperwork to obtain a new Social Security card, Veres became irate, threatening to assault and, per some witnesses, kill the worker. Veres also repeatedly yelled racial slurs at the employee.
Veres pleaded guilty in April 2024 to Influencing a Federal Official by Threat. The Court also imposed a hate-crimes sentencing enhancement, finding that Veres targeted the victim because of the victim’s perceived race or color.
Under the terms of the plea agreement, both sides asked for a sentence of 30 months in prison.
In asking for the 30-month sentence, prosecutors noted that Veres has a history with numerous criminal convictions. “Mr. Veres has an extensive criminal history, including convictions for taking a motor vehicle, possession of stolen property and vehicles, forgery, harassment (domestic violence), malicious mischief, methamphetamine possession with intent to distribute, obstruction, and identity theft. He also has a poor record on supervision, having “made himself unavailable for supervision on five occasions” and having been “returned to custody seven times” in his first stint on supervision in the mid-2000s, and then having made himself unavailable for supervision on 17 occasions and having been returned to custody 19 times on his lengthy period on supervision between 2007 and the present,” prosecutors wrote in their sentencing memo.
Veres will be on federal supervision for three years following his prison term.
As part of the plea agreement, Grays Harbor County will dismiss an unrelated prosecution against Veres for attempting to elude a police officer.
The case was investigated by the Federal Protective Service.
The case is being prosecuted by Assistant United States Attorneys Will Dreher and Elyne Vaught in coordination with the Criminal Section of the U.S. Department of Justice’s Civil Rights Division.
Ocala Man Arrested for Possessing A Firearm as A Convicted FelonRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Lewis Tinson, Jr. (29, Ocala) on an indictment charging him with two counts of possession of a firearm by a convicted felon. He faces a maximum penalty of 10 years in federal prison on each count. A federal grand jury returned the indictment on May 22, 2024.
According to the indictment, Tinson is a four-time convicted felon. Each of his prior felony convictions involves firearms. Specifically, he has been convicted of carjacking with a firearm (2012), possession of a firearm by a delinquent (2012), possession of a firearm by a convicted felon (2018), and shooting at, within, or into a vehicle (2018). As a convicted felon, Tinson is prohibited from possessing firearms or ammunition under federal law. On August 27, 2021, Tinson was in possession of three firearms and multiple types of ammunition. On September 6, 2021, he was again in possession of another firearm and ammunition.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion County Sheriff’s Office, and the Ocala Police Department. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Newburgh Man Sentenced to Life in Prison for Coercion and Enticement of A Minor, Aggravated Sexual Assault, and Traveling with Intent to Engage in Sexual Activity with A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VERNON E. COPELAND III was sentenced to life in prison by U.S. District Judge Kenneth M. Karas for his years-long aggravated sexual assault, enticement, and transportation of a minor. COPELAND was convicted of coercion and enticement of a minor, aggravated sexual abuse, and transportation of a minor with intent to engage in sexual activity following a week-long jury trial in July 2023.
U.S. Attorney Damian Williams said: “For years, Vernon E. Copeland III preyed on some of the most defenseless members of our community. Four of his victims, one of whom was just nine years old when Copeland began abusing her, faced him at trial and courageously told their harrowing stories. This lengthy prison sentence finally holds Copeland accountable for his horrific crimes and the devastating harm and trauma he caused to minor victims and their families.”
According to court documents and the evidence presented at trial:
In a motel on Thanksgiving Day in 2004, COPELAND raped two minors, one of whom was 17 at the time and another of whom was 15 at the time. In 2010, COPELAND raped another minor who was 16 at the time in an apartment in Newburgh, New York. From 2016 to 2020, COPELAND repeatedly raped and sexually abused a girl when she was between the ages of 9 and 13 years old. In 2020, COPELAND fled the State of New York when he suspected that law enforcement might be closing in on him. In 2021, he was arrested in Florida and brought back to the Southern District of New York to be prosecuted.
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In addition to the prison term, COPELAND, 39, of Newburgh, New York, was sentenced to lifetime supervised release.
Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation, Hudson Valley Safe Streets Task Force, the Town of Newburgh Police Department, and the Tampa Police Department in Tampa, Florida, in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Danielle Sassoon and Timothy Ly, with assistance from former U.S. Attorney Lindsey Keenan, are in charge of the prosecution.
New York Man Sentenced to 360 Months’ Imprisonment for Production of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Alkayan Khan, age 37, of Ozone Park, New York, was sentenced today to 360 months’ imprisonment by United States District Court Judge Julia K. Munley for one count of production of a visual depiction of a minor engaging in sexually explicit conduct.
According to United States Attorney Gerard M. Karam, Khan previously pleaded guilty to one count of production of visual depiction of a minor engaging in sexually explicit conduct. Khan admitted that on September 28, 2021, he coerced a minor victim to create and then send him photographs of herself engaging in sexually explicit conduct. Khan, a family friend of the minor victim’s family, had used his position of trust within the family to engage in a years’ long pattern of abuse against the minor victim. Ultimately, the minor victim became pregnant with Khan’s child and Khan coerced the minor victim to falsely report that she had been raped in her middle school’s bathroom by an unknown assailant. The victim, upon being interviewed by detectives from the Pocono Mountain Regional Police, admitted that Khan was her child’s father and that he had coerced her to concoct the story.
The charges stem from an investigation by the Department of Homeland Security, Homeland Security Investigations, the Pocono Mountain Regional Police Department, and the Monroe County District Attorney’s Office. Assistant United States Attorney James M. Buchanan prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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New York Man Charged in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
NEWARK, N.J. – A New York man is alleged to have acted as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.
Victor Anthony Valdez, 39, of the Bronx, New York, was charged by a federal grand jury with one count of wire fraud conspiracy for his role in the scam. According to the indictment, unsealed today in Newark, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim’s grandchild, an attorney representing the grandchild in criminal proceedings, court personnel or other persons associated with the legal system. Conspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims’ homes to pick up the money.
While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey.
U.S. Attorney Philip R. Sellinger“The alleged perpetrators in these scams – including this defendant – target our vulnerable senior population. They count on the grandparents’ love and devotion to their families in order to convince them to put up money. As alleged in this indictment, the defendant today worked as a courier, traveling to the homes of the scam victims to pick up the money. My office will protect the rights of all victims, and we will relentlessly prosecute those who allegedly target the vulnerable to cheat them out of their savings.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“Mr. Valdez knowingly preyed upon the elderly for his own gain,” Inspector General Gail S. Ennis for the Social Security Administration (SSA) said. “We appreciate our law enforcement partners joining us in investigating and prosecuting these complex, international scams aimed at defrauding elderly Americans, many of whom rely on SSA benefits to make ends meet.”
If convicted of the offense in the indictment, Valdez faces a maximum of 20 years in prison and a maximum fine of $250,000.
Social Security Administration’s Office of the Inspector General and the Department of Homeland Security’s Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Carolyn Silane for the District of Jersey and Trial Attorney Joshua Ferrentino of the Civil Division's Consumer Protection Branch and are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime (OVC), can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through OVC, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Charged in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
A federal grand jury charged a New York man for having acted as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.
Victor Anthony Valdez, 39, of the Bronx, was charged with one count of wire fraud conspiracy for his role in the scam. According to the indictment, unsealed today in Newark, New Jersey, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim’s grandchild, an attorney representing the grandchild in criminal proceedings, court personnel or other persons associated with the legal system. Coconspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims’ homes to pick up the money.
While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“The alleged perpetrators in these scams — including this defendant — target our vulnerable senior population,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “They count on the grandparents’ love and devotion to their families in order to convince them to put up money. As alleged in this indictment, the defendant today worked as a courier, traveling to the homes of the scam victims to pick up the money. My office will protect the rights of all victims, and we will relentlessly prosecute those who allegedly target the vulnerable to cheat them out of their savings.”
“Mr. Valdez knowingly preyed upon the elderly for his own gain,” said Inspector General Gail S. Ennis for the Social Security Administration (SSA). “We appreciate our law enforcement partners joining us in investigating and prosecuting these complex, international scams aimed at defrauding elderly Americans, many of whom rely on SSA benefits to make ends meet.”
If convicted, Valdez faces a maximum penalty of 20 years in prison and a maximum fine of $250,000.
SSA’s Office of the Inspector General and Homeland Security Investigations investigated the case.
Trial Attorney Joshua Ferrentino of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime (OVC), can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through OVC, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York and Florida Women Arrested for Defrauding over A Dozen Victims of More Than $7 Million in Connection with Romance ScamsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging ROSANNA LISA STANLEY and GINA GUY for their roles in a series of romance schemes and for laundering the proceeds of those schemes. STANLEY was arrested in North Miami Beach, Florida, and will be presented in federal court in the Southern District of Florida later today. GUY was arrested in New York, New York, and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Robyn F. Tarnofsky.
U.S. Attorney Damian Williams said: “As alleged, Rosanna Lisa Stanley and Gina Guy callously defrauded elderly victims who were simply looking for companionship. They allegedly used the millions of dollars in fraud proceeds to lead lives of luxury at their victims’ expense. As today’s arrests demonstrate, perpetrators of romance scams will be held to account for their crimes.”
FBI Assistant District in Charge James Smith said: “Gina Guy and Rosanna Lisa Stanley allegedly took advantage of innocent individuals seeking companionship and exploited them for their own benefit. Collecting millions of dollars from their victims, the perpetrators allegedly gained and betrayed the trust of primarily elderly individuals to fund their luxury purchases. The FBI is committed to ensuring those who capitalize on personal connections for selfish reasons are brought to justice and prevented from repeating their crimes.”
According to the allegations contained in the Complaint:[1]
STANLEY, from about 2009 to about 2024, and GUY, from about 2020 to about 2024, defrauded at least 16 victims (the “Victims”) of more than $7 million. As part of that scheme, STANLEY and GUY lured the Victims, who were nearly all elderly individuals, into purported romantic or close personal relationships through in-person meetings, phone calls, text messages, and an online dating platform. After earning the Victims’ trust, STANLEY and GUY convinced the Victims to transfer money to STANLEY and GUY under false pretenses, including by, among other things, falsely representing that STANLEY and GUY needed money for fake businesses and organ transplants. Once STANLEY and GUY received the Victims’ money, they moved the money through shell company bank accounts to avoid detection by law enforcement. Ultimately, STANLEY and GUY used the money for their personal benefit, including, for example, for luxury vehicles, a boat, high-end jewelry, and other luxury products.
* * *
STANLEY, 48, of North Miami Beach, Florida, and GUY, 37, of New York, New York, are each charged with one count of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Diarra M. Guthrie and Lauren Phillips are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
New Hampshire Man Sentenced for Northeast Kingdom Drug ConspiracyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 24, 2024, Jeremy Allin, 54, of Lancaster, New Hampshire was sentenced by United States District Judge Christina Reiss to a term of 14 months’ imprisonment to be followed by a 3-year term of supervised release. Allin previously pleaded guilty to conspiring with others to distribute fentanyl and cocaine base pursuant to a plea agreement with the United States.
According to court records, Allin became associated with his codefendant Juan Carlos “JC” Ortiz in late 2021 while Ortiz was staying at multiple residences in and around Orleans County, Vermont, for the purpose of distributing drugs. Allin initially purchased controlled substances from Ortiz for his own consumption, but he eventually began working with Ortiz to complete drug transactions and to provide transportation for the drug activities. Following the execution of a search warrant at a residence in Westfield, Vermont in February 2022, Ortiz began staying with other conspirators at their residences throughout the Northeast Kingdom, including with Allin. At the time, Allin was living in Lunenburg, Vermont. Allin continued his drug interactions with Ortiz until Ortiz was arrested in August 2022. Earlier in this case, Judge Reiss sentenced Ortiz to 95 months’ imprisonment for his role in the conspiracy.
The sentencing hearing followed a long-term investigation conducted by multiple local, county, state and federal agencies that was led by the Northeastern Vermont Drug Task Force (NEVDTF) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). NEVDTF and ATF were assisted in this investigation by agents with Homeland Security Investigations, detectives and troopers from the Vermont State Police; members of the Orleans and Essex County Sheriff’s Departments, the Newport Police Department; aviators with the Air & Marine Operations component of United States Customs & Border Protection; and the Federal Bureau of Investigation (FBI). United States Attorney Nikolas P. Kerest commended the collaboration of federal, state, county and local law enforcement agencies during the investigation and prosecution of the case.
The United States is represented in this matter by Assistant U.S. Attorney Matthew Lasher. Kevin Henry, Esq. represented Jeremy Allin.
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.
Natick Man Sentenced to Six Years in Prison for Possession with Intent to Distribute FentanylRead the Press Release
BOSTON – A Natick man was sentenced yesterday in connection with fentanyl trafficking. During a search of the defendant’s apartment the body of a missing 24-year-old woman who had died of a drug overdose was discovered.
Rafael Ashworth, 29, was sentenced by U.S. Senior District Court Judge William G. Young to six years in prison, to be followed by five years of supervised release. The government recommended a sentence of 10 – 12 years in prison. In February 2024, Ashworth was convicted following a six-day jury trial of one count of possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute fentanyl.
“This case serves as a stark reminder of the devastating impact of drug trafficking on our communities. Mr. Ashworth’s conduct not only exposed our communities to dangerous drugs, it contributed to the tragic loss of a vibrant young woman,” said Acting United States Attorney Joshua S. Levy. “We will continue to work tirelessly with our law enforcement partners to combat drug trafficking and keep our neighborhoods safe.”
“Fentanyl is causing deaths in record numbers in Massachusetts and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This sentence not only holds Mr. Ashworth accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
Police found a deceased woman in Ashworth’s apartment after receiving a report of an overdose death. Approximately 100 grams of a substance containing fentanyl, methamphetamine and heroin, counterfeit Xanax pills containing etizolam, an illegal benzodiazepine, a large metal press used for pressing counterfeit narcotic pills, kilograms of pill-making material and other paraphernalia associated with drug packaging and distribution were also located in the apartment. When police found the deceased woman, she had been dead for several days. Ashworth made no effort to contact police or paramedics. When police first entered Ashworth’s apartment, he told police officers that he had not seen the deceased woman in weeks.
Acting U.S. Attorney Levy and DEA Acting SAC Belleau made the announcement. Special assistance was provided by the Natick Police Department and the Massachusetts State Police. Assistant U.S. Attorneys Leah Foley and Stephen Hassink of the Narcotics & Money Laundering Unit prosecuted the case.Multi-Convicted Felon Is Sentenced to Eight Years in Prison for Illegal Firearms PossessionRead the Press Release
CHARLOTTE, N.C. – Princess Houghton, 34, of Salisbury, N.C., was sentenced today to 96 months in prison followed by three years of supervised release for possession of a firearm by a convicted 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, at approximately 3:52 p.m., CMPD Officers were dispatched to East 4th Street and South Brevard Street in reference to a service call for shots fired in the area, which is a short distance from the Transit Center in Uptown Charlotte. While enroute, another call for service came in for the Omni Hotel at 132 East Trade Street, for a victim that had been shot and sustained a gunshot wound. The officers located the victim and began rendering medical assistance. The victim was then transported to the hospital.
According to court documents, law enforcement reviewed surveillance footage from cameras in the area and were able to identify Houghton’s vehicle as it fled the area as well as the address where the vehicle was registered. On August 23, 2022, law enforcement executed a search warrant at Houghton’s residence. Law enforcement searched a safe inside the residence, where they found Houghton’s semi-automatic pistol, loaded with 18 rounds of ammunition plus one additional round in the chamber. Law enforcement also recovered a separate extended magazine loaded with additional ammunition. Court records show that Houghton had used the illegal firearm to shoot the victim.
On October 25, 2023, Houghton pleaded guilty to possession of a firearm by a convicted felon. Houghton has multiple prior convictions, to include assault with a deadly weapon with intent to kill, accessory after the fact – robbery with a dangerous weapon, and charges related to breaking and entering. As a result of the criminal conviction, she is prohibited from possessing a firearm or ammunition.
Houghton is in federal custody. She will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
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.
Monroe Woman Is Sentenced to Prison for Embezzling Nearly $2.3 Million from EmployerRead the Press Release
CHARLOTTE, N.C. – Kristy Lawrence, 45, of Monroe, N.C., was sentenced today to 36 months in prison followed by three years of supervised release for embezzling nearly $2.3 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney also ordered Lawrence to pay $$2,224,086 in restitution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Eddie Cathey of the Union County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, from 2016 to April 2022, Lawrence was employed by a small family business located in Monroe. Over the course of her employment, Lawrence worked in a purchasing and accounting function for the business and handled the company’s books and records. Court records show that Lawrence misused her position to embezzle millions of dollars from the company. Lawrence carried out the scheme by making multiple unauthorized electronic transfers from the company’s bank account to pay outstanding balances on her credit card and to make other payments for her personal benefit. Lawrence covered up the fraud by using her position and access to falsify documents and make fraudulent accounting entries in the company’s books and records. Lawrence’s embezzlement scheme was uncovered after the defendant was on extended leave and another employee took over her responsibilities.
In reaching its sentence, the Court highlighted, among other things, the long-running nature of the scheme and the significant economic and emotional harm that Lawrence caused to her employer and her coworkers.
On December 19, 2023, Lawrence pleaded guilty to wire fraud. She remains free on bond and will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte and the Union County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Mobile Man Sentenced to 77 Months in Prison for Illegally Possessing a FirearmRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 77 months in prison for possessing a firearm as a previously convicted felon.
According to court documents, Randy Fisher Crandle, 26, was arrested by Mobile police on November 22, 2022 following a traffic stop where he was found to be in possession of a firearm. Crandle has multiple prior felony convictions, including convictions for robbery, arson, and assault. As a convicted felon, Crandle is prohibited from possessing a firearm.
Crandle was indicted for being a felon in possession of a firearm and pled guilty to the charge. United States District Court Judge Kristi K. DuBose sentenced Crandle to 77 months in prison followed by a 3-year term of supervised release for illegally possessing the firearm.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated 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.
Assistant U.S. Attorney Jessica S. Terrill and Justin D. Kopf prosecuted the case on behalf of the United States.
Michigan Man Sentenced to 10 Years for Methamphetamine ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bacarre H. Curtis, age 23, of Eastpointe, Michigan, was sentenced today to 120 months in federal prison for possession with intent to distribute fifty grams or more of methamphetamine.
According to court documents and statements made in court, Curtis, also known as “TJ,” was transporting methamphetamine from Michigan to Harrison County, West Virginia, and selling it with a network of others. A search of his vehicle yielded methamphetamine and a firearm. The investigation connected 1.2 kilograms of methamphetamine to Curtis.
Curtis will serve five years of supervised release following his prison sentence.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government.
The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Greater Harrison Drug Task Force, a HIDTA-funded initiative; and the Harrison County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Miami-Dade County Woman Arrested for Providing Contraband to A Coleman PrisonerRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Janai Chanel Stephens (38, Opa Locka) on a two-count indictment charging her with making a materially false statement or representation to a federal agency and providing contraband to a federal prisoner. If convicted, Stephens faces up to five years in federal prison. A federal grand jury indicted Stephens on May 28, 2024.
According to the indictment, on March 10, 2024, Stephens made a materially false statement to a Federal Bureau of Prisons Correctional Officer regarding whether she was in possession of tobacco, which is a prohibited item, when she entered the Coleman Federal Correctional Complex. Afterwards, she provided the tobacco to an inmate at that prison facility.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being prosecuted as part of a U.S. Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons (BOP). The task force was led by the BOP and the DOJ Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida.
This case is being investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Memphis Man Sentenced to Ten Years for Drug TraffickingRead the Press Release
OXFORD, Miss. – A Memphis man was sentenced today to ten years in prison for distributing methamphetamine and fentanyl.
According to court records, Christopher Brittenum, 39, previously pled guilty to participating in a drug conspiracy. The Drug Enforcement Administration began investigating Brittenum after Brittenum sold fentanyl resulting in the overdose death of an Olive Branch man. In addition, DEA gathered evidence showing Brittenum distributed narcotics to two individuals, who subsequently overdosed but survived. DEA ultimately determined that Brittenum was responsible for distributing 1.5 to 5 kilograms of methamphetamine during the conspiracy.
At a sentencing hearing on Tuesday, U.S. District Court Judge Sharion Aycock sentenced Brittenum to 120 months imprisonment followed by a three-year term of supervised release.
“Fentanyl has impacted every community in Mississippi and our nation, and those who distribute this poison in our communities need to expect to go to prison without exception,” said U.S. Attorney Clay Joyner. “We will continue to work with our partners at DEA and outstanding local partners like the Olive Branch Police Department to remove both fentanyl and those who distribute it from our streets.”
“This sentence sends a clear message to those who deal fentanyl and methamphetamine – you will be held accountable for the devastation you cause. One life lost is one too many, and this defendant is responsible for the death of a resident in Olive Branch,” said Drug Enforcement Administration Special Agent in Charge, Steven Hofer of the New Orleans Division. “The DEA will continue to pursue those who bring these dangerous drugs into our neighborhoods.”
“Our department is grateful for the partnership we have with the Mississippi Bureau of Narcotics, the Drug Enforcement Administration and the US Attorney’s Office,” said Olive Branch Police Chief William Cox. “This sentencing is the culmination of many hours of dedicated service by the detectives and agents of each department and our community is safer as a result. The Olive Branch Police Department will continue to work with these agencies and the US Attorney’s Office to ensure the safety and wellbeing of our community.”
The Mississippi Bureau of Narcotics and the Drug Enforcement Administration investigated the case in partnership with the Olive Branch Police Department. Assistant U.S. Attorney Sam Stringfellow prosecuted the case.
Man Pleads Guilty to Conspiracy to Commit Sex TraffickingRead the Press Release
A Tennessee man pleaded guilty today to conspiracy to commit sex trafficking of a minor and sex trafficking by force, fraud, or coercion.
According to court documents, from December 2021 through March 2022, Charles Cunigan, 31, and his girlfriend, Latesha Gardner, transported the victim, who was a minor throughout the timeframe of the conspiracy, across state lines from Tennessee to Illinois, Louisiana, and Texas for the purpose of causing her to engage in commercial sex acts. Cunigan advertised the victim for commercial sex on websites, kept the money the victim made from commercial sex transactions, required the victim to earn a daily quotas from commercial sex, and restricted the victim’s access to food. Cunigan also tracked the victim’s location using a cell phone application and told her that he would find and kill the victim if she ever tried to leave.
Cunigan used violence to accomplish the scheme. For example, if the victim did not comply with Cunigan’s demands, he would beat the victim, which Cunigan did when he punched and kicked the victim during an altercation in February 2022. On occasion, Cunigan also directed Gardner to use physical force against the victim.
Cunigan is scheduled to be sentenced on Sept. 24. If the court accepts the guilty plea, the government and Cunigan have agreed that Cunigan will be sentenced to 22 years and six months’ imprisonment. Cunigan has also agreed to pay $48,750 in restitution to the victim. As a result of his conviction, Cunigan must participate in the sex offender registration and notification program upon his release from custody.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Deputy Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) New Orleans made the announcement.
HSI New Orleans investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana are prosecuting the case.
Man Convicted of Violent Home Invasion Robberies to Steal CryptocurrencyRead the Press Release
WASHINGTON – A federal jury in Greensboro, North Carolina, convicted a Florida man today for his lead role in an international conspiracy to break into U.S. citizens’ homes, violently kidnap and assault them, and steal their Bitcoin and other cryptocurrency.
According to court documents and evidence presented at trial, Remy St Felix, 24, of West Palm Beach, was a leader of a robbery crew that targeted cryptocurrency owners through violent home invasions. Between September 2022 and July 2023, St Felix helped to plan and orchestrate a series of robberies in Durham, North Carolina; Florida; Texas; and New York. Victims from St Felix’s home invasions were kidnapped in their own homes and told to access and drain their cryptocurrency accounts.
“St Felix and his co-conspirators targeted victims across the United States for brutal home invasions, kidnappings, and robberies in order to steal cryptocurrency,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although the members of this violent conspiracy tried to cover their tracks through encrypted communication and anonymous financial transactions, they were not beyond the reach of our dedicated investigators and prosecutors. The jury’s verdict today—the latest in more than a dozen convictions in this case—should serve as yet another reminder that the Criminal Division and its partners are committed to bringing violent offenders to justice, no matter how technically sophisticated their crimes may be.”
“The victims in this case suffered a horrible, painful experience that no citizen should have to endure,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The defendant and his co-conspirators acted purely out of greed and callously terrorized those they targeted. The jury’s verdict in this case represents a vital step in securing justice for these victims.”
According to trial evidence, in April 2023, St Felix and a co-conspirator forced their way into a victim’s home. There, St Felix and his co-conspirator assaulted, zip-tied, and held the victim at gunpoint, and threatened more violence against the victim and the victim’s spouse, while other co-conspirators transferred more than $150,000 in cryptocurrency from the victim’s account.
Evidence introduced at trial revealed that St Felix and his co-conspirators gained unauthorized access to their targets’ email accounts and conducted physical surveillance prior to attempting the home invasion robberies. They laundered the funds they stole through anonymity-enhanced cryptocurrencies such as Monero, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks. St Felix and his co-conspirators in the United States and abroad used encrypted messaging applications to communicate about their targets and their money laundering efforts.
“Engaging in violence in the furtherance of stealing cryptocurrency, as Remy St Felix did, will not be tolerated by the FBI and its partners,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “We are proud of the work that led to today’s conviction, which should act as a warning to others looking to participate in similar activity that we will not stop until you face the consequences of your actions.”
“The crimes committed by this ring of violent cryptocurrency thieves are shocking. They held victims hostage in their own homes and stole hundreds of millions of dollars from their crypto accounts,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “This investigation is an outstanding example of what a local FBI field office can accomplish. We hope the tireless work of our criminal and cyber squads can provide some sense of justice to the victims terrorized by this group.”
St Felix was arrested by the FBI in July 2023 on his way to commit a home invasion in New York. Thirteen of St Felix’s co-conspirators, including members of his home invasion robbery crew, also were arrested and later pleaded guilty to their roles in the scheme.
The jury convicted St Felix of nine counts relating to conspiracy, kidnapping, Hobbs Act robbery, wire fraud, and brandishing a firearm in furtherance of crimes of violence. He is scheduled to be sentenced on Sept. 11 and faces a mandatory minimum of seven years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices. The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case.
The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
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Man Convicted of Violent Home Invasion Robberies to Steal CryptocurrencyRead the Press Release
A federal jury in Greensboro, North Carolina, convicted a Florida man today for his lead role in an international conspiracy to break into U.S. citizens’ homes, violently kidnap and assault them, and steal their Bitcoin and other cryptocurrency.
According to court documents and evidence presented at trial, Remy St Felix, 24, of West Palm Beach, was a leader of a robbery crew that targeted cryptocurrency owners through violent home invasions. Between September 2022 and July 2023, St Felix helped to plan and orchestrate a series of robberies in Durham, North Carolina; Florida; Texas; and New York. Victims from St Felix’s home invasions were kidnapped in their own homes and told to access and drain their cryptocurrency accounts.
“St Felix and his co-conspirators targeted victims across the United States for brutal home invasions, kidnappings, and robberies in order to steal cryptocurrency,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although the members of this violent conspiracy tried to cover their tracks through encrypted communication and anonymous financial transactions, they were not beyond the reach of our dedicated investigators and prosecutors. The jury’s verdict today—the latest in more than a dozen convictions in this case—should serve as yet another reminder that the Criminal Division and its partners are committed to bringing violent offenders to justice, no matter how technically sophisticated their crimes may be.”
“The victims in this case suffered a horrible, painful experience that no citizen should have to endure,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The defendant and his co-conspirators acted purely out of greed and callously terrorized those they targeted. The jury’s verdict in this case represents a vital step in securing justice for these victims.”
According to trial evidence, in April 2023, St Felix and a co-conspirator forced their way into a victim’s home. There, St Felix and his co-conspirator assaulted, zip-tied, and held the victim at gunpoint, and threatened more violence against the victim and the victim’s spouse, while other co-conspirators transferred more than $150,000 in cryptocurrency from the victim’s account.
Evidence introduced at trial revealed that St Felix and his co-conspirators gained unauthorized access to their targets’ email accounts and conducted physical surveillance prior to attempting the home invasion robberies. They laundered the funds they stole through anonymity-enhanced cryptocurrencies such as Monero, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks. St Felix and his co-conspirators in the United States and abroad used encrypted messaging applications to communicate about their targets and their money laundering efforts.
“Engaging in violence in the furtherance of stealing cryptocurrency, as Remy St Felix did, will not be tolerated by the FBI and its partners,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “We are proud of the work that led to today’s conviction, which should act as a warning to others looking to participate in similar activity that we will not stop until you face the consequences of your actions.”
“The crimes committed by this ring of violent cryptocurrency thieves are shocking. They held victims hostage in their own homes and stole hundreds of thousands of dollars from their crypto accounts,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “This investigation is an outstanding example of what a local FBI field office can accomplish. We hope the tireless work of our criminal and cyber squads can provide some sense of justice to the victims terrorized by this group.”
St Felix was arrested by the FBI in July 2023 on his way to commit a home invasion in New York. Thirteen of St Felix’s co-conspirators, including members of his home invasion robbery crew, also were arrested and later pleaded guilty to their roles in the scheme.
The jury convicted St Felix of nine counts relating to conspiracy, kidnapping, Hobbs Act robbery, wire fraud, and brandishing a firearm in furtherance of crimes of violence. He is scheduled to be sentenced on Sept. 11 and faces a mandatory minimum of seven years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices. The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case.
The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
Local narcotics supplier gets hefty sentenceRead the Press Release
HOUSTON – A 21-year-old Houston resident has been handed a significant sentence for his role in a poly-drug distribution conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Dhevani Mitchell pleaded guilty Dec. 4, 2023.
U.S. District Judge George C. Hanks Jr. has now sentenced Mitchell to 324 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted that Mitchell’s conduct had destroyed lives and families and was a threat to the community. The court also found Mitchell continued to deal drugs and “do harm” after having multiple chances and would continue to do so if given the opportunity.
At the time of his plea, Mitchell admitted to supplying large quantities of meth, cocaine and fentanyl from his residence in February and March 2021.
During a search of the residence March 31, 2021, authorities seized a total of approximately 10.9 kilograms of meth, 1.267 kilograms of China white heroin/gray death heroin, 260 grams suspected fentanyl, large quantities of various pressed pills and five firearms. While securing the location, they found Mitchell in a back bedroom along with a black Stoeger Cougar 9-millimeter handgun under a pillow next to him. They also discovered a Remington 5501 .22 caliber rifle and ammunition.
Mitchell will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative with the assistance of Houston Police Department and the Texas Department of Public Safety. These such cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Michael Day and Christine Lu are prosecuting the case.
Lehigh County Father and Son Sentenced for Unlawful Possession of Machine GunsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph Raymond Berger, 69, and his son, Joseph Paul Berger, 35, both of Bethlehem, PA, were sentenced by United States District Court Judge Joseph F. Leeson, Jr., to 36 months of supervised release and 37 months’ imprisonment, respectively, for illegal weapons possession.
Joseph Raymond Berger’s sentencing hearing was June 24, 2024; Joseph Paul Berger was sentenced on June 12, 2024.
In February of 2022, the men were charged by indictment with possession of a machine gun and possession of non-registered firearms. The charges stemmed from the defendants’ illegal possession of 13 fully automatic machine guns and 12 firearms silencers. The Bergers entered guilty pleas on February 28, 2024.
According to court documents, law enforcement agents with Customs and Border Protection intercepted three firearms silencers that were illegally imported into the United States in packages addressed to the defendants at their shared residence. Investigators then obtained a search warrant for the home and recovered from the basement the 13 fully automatic machine guns and the 12 firearms suppressors/silencers listed in the indictment. The machine guns included 11 rifles and 2 submachine guns.
Investigators also uncovered evidence that the firearms found in the Berger home were originally sold and purchased as semi-automatic firearms, which were then manually converted into unregistered, fully automatic machine guns.
“Our nation’s firearms laws exist to protect public safety,” said U.S. Attorney Romero. “Abide by those regulations and you’re good to go. But if, like the Bergers, you brazenly flout them by illegally possessing dangerous items like fully automatic machine guns and silencers, expect to be held accountable for your actions.”
“The importation of illegal firearms suppressors is a serious crime that poses a serious threat to the American public,” said Acting Special Agent in Charge of HSI Philadelphia Sara Bay. “HSI, along with its partner agencies, is committed to keeping dangerous, illegal weapons off of the streets and out of the hands of criminals.”
“This sentencing validates the tireless efforts of U.S. Customs and Border Protection officers to intercept illicit and dangerous products at our nation’s borders before they can harm America citizens, including fully automatic weapons that could be used on unsuspecting victims or on law enforcement officers,” said Adam Streetman, CBP’s Area Port Director for the Area Port of Philadelphia. “CBP remains committed to ensuring that imports comply with our nation’s laws, and to working with our law enforcement partners to keep our communities safe and hold nefarious actors accountable.”
“The combination of machine guns and silencers that these individuals illegally imported created a serious threat to our communities,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Getting illegal firearms like these, and the people who traffic them, off our street is core to the ATF mission of protecting our communities from violent crime.”
The case was investigated by Homeland Security Investigations, with assistance from Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Anthony Carissimi.
Leader of Money Laundering and Bank Fraud Ring Sentenced to Seven Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ADEDAYO JOHN was sentenced today by U.S. District Judge Loretta A. Preska to seven years in prison for his role as a leader of a money laundering and bank fraud ring that laundered millions of dollars in proceeds derived from business email compromises and romance fraud schemes impacting more than 50 victims. JOHN previously pled guilty to one count of conspiracy to commit money laundering and one count of conspiracy to commit bank fraud on January 4, 2024. In total, 11 defendants have pled guilty for their roles in the money laundering and bank fraud schemes.
U.S. Attorney Damian Williams said: “The defendants in this case have acknowledged their roles as part of a criminal enterprise that not only defrauded businesses by assuming the online identities of legitimate entities, but also preyed on elderly people, deceiving victims into sending money in phony romance scams. As a leader of the scheme, Adedayo John played a particularly important role in the enterprise and victimization of individuals and companies across the country. Today’s sentence ensures that he will be held accountable for his actions.”
According to the Indictment and other court documents:
JOHN, OLUWADAMILOLA AKINPELU, KAZEEM RAHEEM, MORAKINYO GBEYIDE, WARRIS ADENUGA, a/k/a “Blue,” SMART AGUNBIADE, LATEEF GOLOBA, SAMSONDEEN GOLOBA, OLAWOYIN PETER OLAREWAJU, EMMANUEL ORONSAYE-AJAYI, and ARAMIWALE SHITTU (collectively, the “defendants”) participated in either a money laundering conspiracy, a bank fraud conspiracy, or both, which received funds stolen from victims.
Victims were typically defrauded in one of two ways. In some instances, business email compromise fraud schemes were used to trick businesses into transferring funds to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of the defendants or their co-conspirators. In other instances, romance scams were used, primarily through electronic messages sent via email, text messaging, social media, or online dating websites, to deceive victims – many of whom were older men and women – into believing they were in romantic relationships with fake identities, and then using false pretenses to cause the victims to transfer funds to bank accounts controlled by the defendants or their co-conspirators.
As a result of these frauds, law enforcement officers have identified transfers of more than $19 million into bank accounts under the control of the defendants.
JOHN was a leader of the U.S.-based members of the business email compromises and romance fraud schemes. JOHN directed other members of the conspiracy to open new bank accounts and/or to be ready to receive money that was going to be sent from others, and he assisted members with procuring fake passports and other identification documents in order to open fraudulent bank accounts. JOHN also attempted to facilitate the delivery of flowers to a victim of one of the the romance scams. As part of the scheme, approximately $4.5 million in fraud proceeds passed through bank accounts opened and/or controlled by JOHN, and JOHN led a group of individuals based in the U.S. for whom approximately $19 million in fraud proceeds passed through their bank accounts.
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In addition to the prison term, JOHN, 35, of Katy, Texas, was sentenced to three years of supervised release and ordered to forfeit $4,513,438.23 and two vehicles. He was also ordered to pay restitution in the amount of $1,561,562.95. In total, the defendants in this case were ordered to forfeit over $25 million in fraud proceeds and pay over $8 million in restitution.
Mr. Williams praised the outstanding investigative work of the U.S. Secret Service.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Connie Dang, Kaylan Lasky and Matthew Weinberg are in charge of the prosecution.
Last of Five Defendants with Ties to White Supremacy and Who Were Charged with Targeting Idaho Energy Facilities Enters Guilty PleaRead the Press Release
BOISE – Yesterday, in Wilmington, North Carolina, a Boise man with white supremacist ties pleaded guilty to a federal firearms charge stemming from his participation in a group that had discussed targeting the power grid in Idaho and had conducted live-fire training near Boise.
Jordan Duncan, 29, of Boise, pleaded guilty to aiding and abetting the manufacturing of a firearm as charged in a superseding criminal information filed in the Eastern District of North Carolina. This crime carries a maximum punishment of 10 years in federal prison. Duncan is a former Marine assigned previously to Camp Lejeune in Jacksonville, North Carolina.
According to court documents, Duncan, with co-defendants Paul James Kryscuk, 38, Liam Collins, 25, Justin Wade Hermanson, 25, and Joseph Maurino, 25, researched, discussed, and reviewed at length a previous attack on the power grid by an unknown group. The group depicted in the attack used assault-style rifles in an attempt to explode a power substation. Between 2017 and 2020, Kryscuk manufactured firearms while Collins stole military gear, including magazines for assault-style rifles, and had them delivered to the other defendants. During that time, Duncan gathered a library of information, some military-owned, regarding firearms, explosives, and nerve toxins and shared that information with Kryscuk and Collins. In October 2020, a handwritten list of approximately one dozen intersections and places in Idaho and surrounding states was discovered in Kryscuk’s possession, including intersections and/or places containing a transformer, substation, or other component of the power grid for the northwest United States.
Previously filed charges allege that Collins and Kryscuk were members of and made multiple posts on the “Iron March” forum, a gathering point for young neo-Nazis to organize and recruit for extremist organizations, until the forum was closed in late 2017. Collins and Kryscuk met through the forum and expanded their group using an encrypted messaging application as an alternate means of communication outside of the forum. Collins and Kryscuk recruited additional members, including Duncan, Hermanson, and Maurino, and conducted training, including a live-fire training in the desert near Boise. From video footage recorded by the members during the training, Kryscuk, Duncan, and others produced a montage video of their training. In the video, the participants are seen firing short barrel rifles and other assault-type rifles, and the end of the propaganda video shows the four participants outfitted in AtomWaffen masks giving the “Heil Hitler” sign, beneath the image of a black sun, a Nazi symbol. The last frame bears the phrase, “Come home white man.” Prior to their arrests, Collins and Duncan had recently relocated to Boise from North Carolina and Texas, respectively, to be near Kryscuk.
Kryscuk, Collins, Maurino, and Hermanson each earlier entered pleas of guilty to various crimes: on February 15, 2022, Kryscuk entered a plea of guilty to conspiracy to destroy an energy facility, which carries a maximum sentence of 20 years in federal prison; on October 24, 2023, Collins pleaded guilty to aiding and abetting the interstate transportation of unregistered firearms, which carries a maximum of 10 years in federal prison; and on March 8, 2023 and April 11, 2023, respectively, Hermanson and Maurino pleaded guilty to conspiracy to manufacture firearms and ship interstate, which carries a maximum sentence of five years in federal prison.
All five defendants now await sentencing before Chief United States District Judge Richard E. Myers II.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Naval Criminal Investigative Service, the FBI field offices in Salt Lake City and Charlotte with assistance from field offices in Boston, New York, and Newark, the Boise Police Department, the United States Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are investigating the case.
Assistant U.S. Attorneys from the Eastern District of North Carolina are prosecuting the case for the government with assistance from Assistant U.S. Attorneys for the District of Idaho, District of New Jersey, Eastern District of New York, the District of Rhode Island, and attorneys from the Justice Department’s National Security Division.
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Lake County Woman Pleads Guilty to COVID FraudRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Nicole Harding (38, Clermont) has pleaded guilty to one count of wire fraud. Harding faces up to 20 years in federal prison. A sentencing date has not yet been set.
According to court records, between March 28 and April 14, 2021, Harding devised a scheme to defraud the Small Business Association by submitting a false Paycheck Protection Program (“PPP”) loan application. PPP loans were one of the sources of economic relief provided for by the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. Harding provided false representations in her PPP application to secure the loan. The loan proceeds ($19,965) were later electronically transferred into her bank account. Harding then used the money for personal expenses, including a tattoo.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
This case was investigated by the United States Postal Service Office of Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Kentucky Man Pleads Guilty and Is Sentenced for Federal Hate Crime Targeting Children OnlineRead the Press Release
WASHINGTON – A Kentucky man pleaded guilty and was sentenced last week to one year and one day in prison and one year of supervised release in the District of Eastern Louisiana for committing a federal hate crime.
According to court documents, Brian Adams, 24, of Paintsville, Kentucky, transmitted a threat to a fifth-grade class at the Laureate Academy Charter School on or about Oct. 14, 2020. At the time, the school was conducting class virtually over Zoom due to the COVID-19 pandemic. Specifically, Adams used racial epithets against the students and teachers and threatened to “hang them by a tree.” Adams pleaded guilty to one count of transmitting threatening communications. The court found that Adams’ actions were motivated by hate.
“This prosecution should make clear that perpetrators of hate crimes hiding behind computer screens, hacking into teleconferences and disrupting virtual meetings will be held accountable. The defendant used racial epithets and threats against innocent children who were simply trying to get an education,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No child should ever have to endure racially motivated hatred like this in a classroom, a school or anywhere else. The Justice Department is committed to protecting children from such hate-filled assaults and to safeguarding their right to a safe and secure education.”
“Citizens should not fear threats based on their race at any time and especially for students while pursuing their education,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to working closely with federal, state and local law enforcement to ensure hate crimes are investigated, prosecuted and to ultimately hold perpetrators responsible for their actions.”
“Hate has no place in our country, especially in a fifth-grade classroom,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office. “Protecting the rights of all Americans under the Constitution is the heart of the FBI's mission.”
The FBI New Orleans Field Office investigated the case.
Assistant U.S. Attorney Tracey N. Knight for the Eastern District of Louisiana prosecuted the case, with assistance from Trial Attorney Mary Hahn of the Civil Rights Division’s Criminal Section.
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Carlito Harris Carter, 44, of St. Albans, pleaded guilty today to possession with intent to distribute methamphetamine and fentanyl.
According to court documents and statements made in court, on January 22, 2024, Carter sold a quantity of fentanyl to a confidential informant for $50. The transaction took place at Carter’s St. Albans residence.
On January 26, 2024, law enforcement officers executed a search warrant at Carter’s residence and found approximately 300 grams of methamphetamine, 200 grams of fentanyl, 300 grams of marijuana, various firearm components, ammunition, and $1,695. Carter admitted to possessing and intending to distribute the methamphetamine and fentanyl.
Carter is scheduled to be sentenced on October 3, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the St. Albans Police Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-46.
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KC Man Sentenced to 16 Years in Prison for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for using a 9-year-old victim to produce child pornography.
Jackie M. Hill, 39, was sentenced by U.S. District Judge Howard F. Sachs to 16 years and eight months in federal prison without parole. The court also sentenced Hill to spend the rest of his life on supervised release following incarceration. Hill will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Jan. 31, 2024, Hill pleaded guilty to producing child pornography. Hill admitted that he used a 9-year-old victim to produce 21 images of child pornography on Feb. 3, 2023. Hill posted three images of child pornography, including two images of the child victim, on a website dedicated to the discussion of child sexual abuse and the advertisement and sharing of child pornography.
On April 12, 2023, FBI agents executed a search warrant at Hill’s residence. Agents seized a desktop computer, a thumb drive, and a cell phone. A forensic analysis of the devices determined that thousands of images and videos depicting the sexual exploitation of minors were located on them, including pornographic images and videos of infants, toddlers, and prepubescent children.
Hill admitted that he had been involved in trafficking child pornography for at least eight years prior to his arrest.
This case was prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston dental clinic operator heads to prison for role in $6M pediatric fraud schemeRead the Press Release
HOUSTON - A 68-year-old man has been sentenced for orchestrating a $6 million Medicaid fraud and kickbacks scheme, announced U.S. Attorney Alamdar S. Hamdani.
Rene Fernandez Gaviola pleaded guilty Jan. 26.
Chief U.S. District Judge Randy Crane has now ordered Gaviola to serve 120 months in federal prison to be immediately followed by three years of supervised release. In addition, Judge Crane ordered Gaviola to pay $4,908,957.89 in restitution to Medicaid and a personal money judgement of $2,996,092. In handing down the sentence, the court noted Gaviola involved his own son in his “crooked” fraud scheme. Judge Crane also emphasized that Gaviola had failed to make any attempt to pay back restitution even though he has $2 million in assets stashed away in the Philippines.
Gaviola was the operator of Floss Family Dental Care clinic in Houston. From 2018 until April 2021, Gaviola submitted fraudulent claims to Medicaid for pediatric dental services, including numerous cavity fillings which Floss did not provide or unlicensed individuals provided.
Gaviola illegally employed his son, who was not a licensed dentist, to provide dental services to Medicaid-insured children and occasionally operated Floss without any licensed dentists present. Floss then fraudulently billed Medicaid for these services.
Gaviola also paid kickbacks to marketers and caregivers of Medicaid-insured children to bring them to Floss for dental services. Ultimately, he admitted to laundering Medicaid monies from the Floss business bank account to his personal bank account in several transactions exceeding $100,000.
From 2019 to 2021, the dental clinic billed Medicaid nearly $6.9 million in claims for pediatric dental services. Medicaid paid approximately $4.9 million on those claims.
Gaviola’s co-conspirator, Mia Diaz, 48, Cleveland, a manager at Floss, was previously sentenced to 21 months imprisonment followed by three years of supervised release April 16.
Previously released on bond, Gaviola was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kathryn Olson and Lauren Valenti prosecuted the case.
Hampton cocaine trafficker pleads guilty to federal drug and firearm crimesRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pled guilty today to cocaine trafficking and illegally possessing firearms.
According to court documents, on Jan. 15, 2024, an officer with the Newport News Police Department (NNPD) observed Erick Allen Osby, 29, showing a firearm to another individual in a parking lot on Warwick Boulevard. Osby then walked back to his vehicle and placed the firearm on the front passenger seat, then walked across Warwick. The officer confirmed that the firearm was in the vehicle and notified uniformed officers, who were on the other side of Warwick for an unrelated matter.
As officers observed Osby interacting with another individual, they noticed a partially concealed handgun in Osby’s pants pocket. An officer approached Osby, but before contact could be made, Osby ran back across Warwick toward his vehicle. During the short foot pursuit, Osby threw a cellphone and a loaded .40 caliber semiautomatic handgun into the median before being apprehended.
Investigators recovered a 9mm semiautomatic handgun from the vehicle, as well as a shotgun cartridge, two digital scales, and assorted drug paraphernalia. They also recovered 20.72 grams of cocaine from Osby’s pocket. As a previously convicted felon, Osby cannot legally possess a firearm or ammunition.
Osby pleaded guilty to possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced on Feb. 13, 2025, and faces up to 20 years in prison for the drug charge and a consecutive sentence of a mandatory minimum of five years and up to life in prison for the firearm charge. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney Peter G. Osyf is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 24-cr-26.
Gang Member Sentenced to Seven Years in Prison for Racketeering and Firearms ChargesRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 84 months in prison for his role in a racketeering conspiracy and for possessing firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Amir Warden, aka “Stamps,” aka “Killa,” 31, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding information that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and possession of firearms and ammunition by a convicted felon. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Warden was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. Warden held a leadership role within the enterprise and conspired with other members and associates to distribute controlled substances. On Aug. 19, 2019, he distributed heroin. On Sept. 29, 2022, Warden, a convicted felon, knowingly possessed three loaded firearms, three high-capacity drum magazines, and approximately 1,300 rounds of assorted ammunition.
In addition to the prison term, Judge Wigenton sentenced Warden to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti; investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, with the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake Nasar of the Organized Crime/Gangs Unit.
Franklin County Man Charged with Threatening State SenatorRead the Press Release
HARRISBURG– The United States Attorney’s Office for the Middle District of Pennsylvania announced that Richard Little, age 49, of Franklin County, Pennsylvania, was charged in a criminal complaint with threatening a Pennsylvania State Senator and unlawfully possessing a firearm while being an unlawful user of a controlled substance. A preliminary hearing was held today, and Magistrate Judge Daryl F. Bloom found probably cause for both charges.
According to United States Attorney Gerard M. Karam, on or about June 10, 2024, Little was served with an eviction notice and began posting threatening videos on Facebook, including against a County Commissioner. Among other things, in the videos, Little spoke of a “war” and described “kill zones” while displaying multiple firearms and ammunition in his residence. Little also showed marijuana in one video and admitted to using the controlled substance. Thereafter, on or about June 21, 2024, Little posted on his Facebook threatening remarks against a State Senator.
That same date, law enforcement arrested Little and searched his residence. Inside, law enforcement seized several items, including approximately 17 firearms, ammunition, marijuana, illegal mushrooms, and drug paraphernalia.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pennsylvania State Police. Assistant U.S. Attorney K. Wesley (Wes) Mishoe is prosecuting the case.
The maximum penalty under federal law for the charges against Little is 20 years imprisonment, a term of supervised release following imprisonment, a fine, and special assessment. A sentence following a finding of guilt is imposed by the judge after consideration of the applicable federal sentencing statutes and Federal Sentencing Guidelines.
Charges are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Former St. Louis School Principal Sentenced to Two Consecutive Life Terms in Prison for Teacher’s MurderRead the Press Release
ST. LOUIS – U.S. District Ronnie L. White on Tuesday sentenced a former St. Louis middle school principal to two consecutive life terms in prison for hiring a friend to kill his pregnant schoolteacher girlfriend.
Cornelius M. Green, 42, pleaded guilty in February to one count of conspiracy to commit murder-for-hire and one count of murder-for-hire in the deaths of 30-year-old Jocelyn Peters and her unborn child, Micah Leigh, in 2016.
A jury in U.S. District Court in St. Louis in March found Phillip J. Cutler, 46, of Muskogee, Oklahoma, guilty of the same charges. Judge White sentenced Cutler last week to two consecutive life terms in prison.
During Tuesday’s hearing, Peters’ mother, Lacey Peters, said Green was supposed to be Peters’ protector but became her executioner. “All she ever did was love him,” Lacey Peters said, adding “and she loved that baby so much.”
Peters’ cousin, Dedra Peters, said “Jocelyn had a light around her at all times,” and “touched the heart of anyone she came in contact with.” Peters’ death has left the “family empty and heartbroken,” she said.
Peters had miscarried before and terminated one pregnancy at Green’s urging, but was determined to keep Micah Leigh, according to a sentencing memo filed by prosecutors. But she mistakenly believed she was the only woman in Green’s life, and that Green was divorcing his wife. Peters did not know about the multiple other women, including at least one who was also being duped by Green into believing they were building a life together. She also did not know that Green was researching ways to secretly poison Micah Lee by crushing pills and hiding them in oatmeal or yogurt. When that plan failed, Green contacted his longtime friend, Cutler, and stole money from the dance team’s fundraiser at the school where he worked, Carr Lane Visual and Performing Arts Middle School, to pay Cutler.
“He literally stole from children to pay for killing his own child,” said Dr. Nicole Conaway, the principal of Mann Elementary when Peters worked there. Dr. Conaway said she had to tell Peters’ class about her murder. “I will never forget the pain in their eyes,” she said. “This trauma will follow them for the rest of their lives.”
Green and Cutler planned the murder in a series of phone calls and Green sent Cutler a UPS package containing $2,500 cash on March 7, 2016. On March 21, Cutler arrived in St. Louis.
Green took a train trip to Chicago to establish his alibi for the murder, giving Cutler the keys to his Kia Optima and Peters’ apartment.
On March 24, Cutler drove Green’s car to Peters’ apartment in the 4200 block of West Pine in St. Louis, let himself in using Green’s keys, and shot Peters in the eye using a potato as a silencer. Peters was working on baby shower invitations at the time she was killed. Green had Peters buy potatoes days before her own murder.
Court exhibitAfter Cutler confirmed that Jocelyn and the baby had been killed, Green bought a return train ticket.
When Green got back to St. Louis, he first tried to get Peters’ mother to “check on her,” knowing what she would find, the memo says.
“The depravity of asking a mother to go find Jocelyn’s body, knowing she was dead, can’t be matched,” Assistant U.S. Attorney Tiffany Becker said during Tuesday’s hearing.
Only after he learned that she was unavailable did he go to Peters’ apartment and call 911 to report her death. He pretended he had no knowledge of the circumstances leading to the deaths, lying to police and getting Cutler and others to conceal evidence. Cutler was detained for questioning that same night, after he attempted to retrieve the Kia Optima from the crime scene at Green’s direction.
When told he was being detained, Cutler ate two pieces of paper from a notebook in his pocket.
“The devastating actions of one depraved individual continue to impact the victims’ family, colleagues, friends and young students,” said St. Louis Circuit Attorney Gabe Gore. “We are grateful for the resources provided by the U.S. Attorney’s office to help bring closure to this heartbreaking case.”
The St. Louis Metropolitan Police Department (SLMPD) and the FBI investigated the case, which is being prosecuted in cooperation with the St. Louis Circuit Attorney’s Office. Assistant U.S. Attorneys Tiffany Becker and Zachary Bluestone are prosecuting the case. Former SLMPD Homicide Detective Mark Biondolino was the case agent. The case against Green was initially prosecuted by Chief Trial Attorney Marvin O. Teer, Jr. and Assistant Circuit Attorney Rob Huq in the St. Louis Circuit Attorney’s Office.
Victims of domestic and family violence seeking help can call the National Domestic Violence Hotline at 1-800-799-7233, or contact one of the agencies listed here: https://www.stlouis-mo.gov/live-work/community/help/domestic-violence.cfm.
Former Panama City Doctor Agrees to $550,000 Consent Judgment to Resolve FCA and CSA LawsuitRead the Press Release
PENSACOLA, FLORIDA – Dr. Mustafa A. Hammad, M.D., a neurologist and pain management physician who formerly practiced medicine at the NeuroMedical Institute (“NMI”) in Panama City, Florida, entered into a consent judgment and settlement agreement to resolve a pending lawsuit filed by the United States pursuant to the False Claims Act and the Controlled Substances Act. The judgment and settlement were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This lawsuit and resolution demonstrate our resolve to hold physicians accountable for the blatant fraudulent billing of our federal health care programs,” said U.S. Attorney Coody. “Together, with our law enforcement partners, we will continue to defend the fiscal integrity of federal healthcare programs. This agreement results in the return of fraud proceeds to the American taxpayers and through the surrender of his DEA registration, ensures the defendant’s fraudulent billing practices have come to an end.”
In March 2023, the United States filed a lawsuit in the United States District Court for the Northern District of Florida alleging numerous violations under the FCA and CSA. See United States v. Mustafa A. Hammad, M.D., Case No. 5:23-cv-00063-TKW-MJF. The lawsuit alleged that Hammad established medical centers in Palestine and Israel in approximately 2017 and has resided outside the United States since approximately September 2019. The United States alleged that Hammad conducted and interpreted approximately 582 sleep studies while he was physically located outside the United States and thereafter billed the Medicare and Medicaid programs for such services in violation of the FCA. The United States also alleged that Hammad issued multiple prescriptions on dates he was physically outside the United States in violation of the CSA. Finally, the United States alleged that Hammad also billed the Government for approximately 4,787 additional services allegedly performed at NMI while he was physically outside the United States in violation of the FCA.
To resolve the pending litigation, Hammad agreed to the following, among others: (1) a consent judgment in the amount of $550,000; (2) the United States’ sale of Hammad’s real property in Panama City; (3) not contest a forfeiture judgment entered against Hammad in the amount of $506,017.40 in United States v. $42,924.20, et al., Case. No. 5:22-cv-00065-TKW-MJF; and (4) to not reapply for a DEA registration.
“Doctors, like Hammad, who falsify prescriptions and medical records increase the likelihood of prescription misuse and abuse,” said Drug Enforcement Administration Miami Field Division Special Agent in Charge Deanne L. Reuter. “This consent judgement demonstrates our resolve to hold those accountable who misuse their DEA Registration.”
“Physicians who participate in federal health care programs must follow the law when billing federally funded health care programs such as Medicare and Medicaid,” said Stephen Mahmood, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to protecting the integrity of these taxpayer-funded programs and the people they serve. Working closely with the United States Attorney’s Office and our other law enforcement partners, we will continue to thoroughly investigate such fraudulent billing schemes.”
This civil settlement agreement is not an admission of any liability by Dr. Hammad, nor a concession by the United States that its claims were not well-founded.
Assistant United States Attorneys Mary Ann Couch, Marie Moyle, Katherine Kerwin, Kaitlin Weiss, and Andrew Grogan represented the United States in this matter and related forfeiture action, which was investigated by the Drug Enforcement Administration (Diversion Control Program), Bay County Sherriff’s Department, Federal Bureau of Investigation, and United States Department of Health and Human Services.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Nonprofit Finance Director Pleads Guilty to Theft of Government FundsRead the Press Release
COLUMBIA, S.C. —Ashley Clark Ingram, 34, of Columbia, has pleaded guilty to one count of theft of government funds for misappropriating funds from Habitat for Humanity of Central South Carolina.
Evidence obtained in the investigation revealed that while employed as the director of finance and operations for Habitat for Humanity, Ingram applied for an employee retention tax credit for retaining employees during the COVID-19 pandemic from the IRS on behalf of Habitat for Humanity, but without the knowledge of the nonprofit. Ingram then received checks totaling $388,550.75 from the United States Treasury and deposited the funds into a Habitat for Humanity account that she controlled. Ingram transferred the money from the Habitat for Humanity account into multiple personal bank accounts and appropriated it to her own use. In total, Ingram misappropriated approximately $514,672.37 from Habitat for Humanity and the United States Government.
Ingram faces a maximum penalty of 10 years in federal prison. She also faces a fine of up to $250,000, restitution, and a total of three years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Ingram at a future date after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Scott Matthews is prosecuting the case.
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Former Florida Keys Resident Sentenced to 20 Years in Prison for Distributing Child PornographyRead the Press Release
MIAMI –Yesterday, Eric Edward Cadogan, a/k/a “livelife4fun69,” 39, of La Crosse, Wis., formerly of Marathon, Fla., was sentenced by U.S. District Judge K. Michael Moore to 240 months in federal prison, to be followed by a lifetime of supervised release, after previously pleading guilty to distributing child pornography.
According to the factual proffer in support of the plea and information presented in court, Cadogan uploaded and distributed child pornography using a social media messaging platform. Cadogan also offered to sell child pornography and said he had “100 of videos n pictures.” In messages with an online undercover agent, Cadogan indicated he had engaged in sexually explicit conduct with minor children.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence.
FBI Miami Key West Resident Agency investigated the case. Assistant U.S. Attorney Katherine W. Guthrie prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Anyone with information regarding suspected child abuse (to include physical and sexual abuse) is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-10017.
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Former Alabama Sheriff’s Deputy Sentenced for Federal Civil Rights Offense of Excessive ForceRead the Press Release
MONTGOMERY, ALABAMA – Former Elmore County, Alabama, Sheriff’s Deputy Blake Hicks, 33, was sentenced today to 29 months in prison and three years of supervised release for depriving an arrestee of his civil rights under color of law.
According to documents and statements made in court, Hicks willfully used unreasonable force against an arrestee. Specifically, without legal justification, Hicks punched and kicked the arrestee in or around the head while the arrestee was handcuffed and incapacitated on the ground. The arrestee suffered a broken cheekbone, concussion and lacerations from Hicks’ assault.
“This defendant had a duty to respect the rights of people in his custody and to keep them safe,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, he violently assaulted a person under arrest who was not resisting or threatening harm to the defendant or the public. The Justice Department remains firmly committed to holding accountable law enforcement officials who abuse their powers and use excessive force against people in custody.”
“We expect law enforcement officers to maintain order and ensure public safety,” said United States Attorney Jonathan S. Ross for the Middle District of Alabama. “These are tremendous responsibilities. Fortunately, the vast majority of officers serve honorably. Hicks fell short of his obligation to protect and serve. The sentence imposed today ensures that he is held responsible for his actions. Failure to hold Hicks accountable would discredit the noble service of other officers and weaken the public’s trust in law enforcement.”
The FBI Mobile Field Office investigated the case, with assistance from the Alabama Law Enforcement Agency.
Trial Attorney Laura-Kate Bernstein and Special Litigation Counsel Michael J. Songer of the Civil Rights Division and Assistant U.S. Attorney Eric Counts for the Middle District of Alabama are prosecuting the case.
Foreign National Sentenced to 7 Years and 3 Months for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Francisco Ramirez-Vasquez, 22, of Guatemala, was sentenced on June 25, 2024, in federal court in Lincoln, Nebraska for one count of possession of meth with the intent to distribute. Senior United States District Judge Joseph F. Bataillon sentenced Ramirez-Vasquez to a total of 87 months’ imprisonment for both counts. There is no parole in the federal system. After Ramirez-Vasquez’s release from prison, he will begin a 2-year term of supervised release.
On March 15, 2023, the United States Postal Service (USPS) discovered a suspicious package in the mail. A drug dog alerted to the presence of narcotics in the package and inside the package, investigators found three bundles of suspected meth that weighed approximately seven pounds. Investigators obtained a search warrant for the residence in Hastings and completed a controlled delivery of the package on March 16, 2023. While searching the residence, investigators located the package used during the controlled delivery, a second USPS box containing meth, additional meth in other locations in the residence, cocaine, a suspected drug ledger, $8,026 in U.S. currency, a digital scale, unused sandwich baggies consistent with packaging narcotics, and drug paraphernalia. Ramirez-Vasquez’s phone was seized and searched. The phone contained messages related to drug distribution.
The State Patrol Crime Lab confirmed the substance seized in the USPS boxes was meth, with a total weight over 2665 grams. A sample weighing 443 grams was tested for purity. The lab confirmed that the sample contained at least 420 grams of meth actual.
This case was investigated by the Tri-City Drug Enforcement Team (TRIDENT). TRIDENT is a task force with law enforcement personnel from the Adams County Sheriff’s Office, Buffalo County Sheriff’s Office, Federal Bureau of Investigation, Grand Island Police Department, Hall County Sheriff’s Office, Hastings Police Department, Homeland Security Investigations, Kearney Police Department, and the Nebraska State Patrol.
Family Members Sentenced in Methamphetamine Trafficking Investigation in Walton CountyRead the Press Release
PENSACOLA, FLORIDA – A federal judge sentenced a husband, wife, and their son after previously having been found guilty by a federal jury for trafficking methamphetamine in Walton County. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The defendants and their sentences were:
- Philip Beck, 48, of DeFuniak Springs, Florida, 262 months in prison
- Florence Beck, 47, of DeFuniak Springs, Florida, 120 months in prison
- Joshua Martinez, 28, of DeFuniak Springs, Florida, 258 months in prison
All will be on supervised release once they are released from custody.
“Our local, state, and federal law enforcement partners work tirelessly to keep us safe by removing addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “We remain committed to support their efforts through the investigation and vigorous prosecution of criminals bringing drugs into North Florida. The imposed sentences illustrate the significant consequences of harming our citizens through illicit drug trafficking activities.”
The investigation revealed that on January 16, 2023, the DeFuniak Springs Police Department stopped a Ram truck operated by Philip Beck and discovered approximately 28 grams of methamphetamine. On March 10, 2023, the U.S. Postal Inspection service intercepted two packages mailed from California to addresses in Niceville and Mossy Head, each containing approximately five pounds of methamphetamine. Subsequent investigation revealed that Philip Beck and Joshua Martinez were the intended recipients of the drug parcels and Florence Beck was assisting them.
"The partnership between the Postal Service and our VICE/Narcotics Unit was critical in getting deadly drugs off our streets," said Sheriff Adkinson. "We are grateful our federal partners were able to achieve significant sentences in this case, keeping these dealers out of our communities for the next two decades."
“The U.S. Postal Inspection Service objectives are to preserve the integrity of the nation’s mail system from criminal misuse, rid the mail of illicit drugs, and to keep our communities throughout Florida, safe,” said Juan A. Vargas, Inspector in Charge of the Miami Division. “The sentencings should be a reminder to criminals that we will aggressively pursue those that aim to misuse the mail system.”
This case resulted from a joint investigation by the U.S. Postal Inspection Service, Walton County Sheriff’s Office, the DeFuniak Springs Police Department, and the Drug Enforcement Administration. Assistant United States Attorney Walter Narramore prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fact Sheet: Two Years of the Bipartisan Safer Communities ActRead the Press Release
June 25 marks the second anniversary of the enactment of the Bipartisan Safer Communities Act (BSCA) – a landmark law focused on reducing and protecting communities from gun violence. The Justice Department has pursued a cross-department approach with the new tools provided in BSCA, from enhanced background checks to grantmaking. Some of the Department’s most significant accomplishments made possible by BSCA follow below.
Publishing an Interim Final Rule (IFR) to Prevent Stolen Firearm from Being Resold
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On June 25, the Department published an IFR that, for the first time, will enable federal firearm licensees (FFLs) to voluntarily check the FBI’s National Crime Information Center records to see if a firearm offered for sale was stolen.
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This IFR will help keep stolen firearms out of FFL inventories, and increase reporting of stolen firearms, helping law enforcement develop leads into firearm theft and trafficking.
Enhanced Checks for Purchasers Under 21
BSCA mandates enhanced background checks for firearm purchasers under the age of 21 (“U21 enhanced checks”), specifically requiring checks of juvenile criminal history and mental health records.
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Since BSCA’s passage:
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Over 260,000 U21 enhanced checks have been completed;
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800 firearm purchases were prevented solely because the enhanced U21 checks revealed that the purchasers were prohibited by law from purchasing or possessing firearms.
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Fighting Illegal Trafficking in Firearms
BSCA created new criminal offenses for unlawfully trafficking in firearms and for straw-purchasing a firearm on behalf of a prohibited person.
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To date, 525 defendants, in 280 cases, have been charged under these new trafficking and straw purchasing provisions. These cases include significant prosecutions of firearms trafficking linked to transnational cartels and narcotics distribution.
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Coordination is ongoing with non-Justice Department federal law enforcement to identify criminal investigations eligible for application of new criminal provisions.
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ATF’s anti-straw-purchasing campaign “Don’t Lie for the Other Guy” was expanded, with new events in St. Louis, Atlanta, Las Vegas, Fort Worth, Texas, Jackson, Mississippi, and Chantilly, Virginia.
Narrowing the Boyfriend Loophole
BSCA narrowed the “boyfriend loophole” by prohibiting those convicted of misdemeanor crimes of domestic violence (MCDVs) from possessing firearms when those crimes occurred in the context of a dating relationship.
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Nearly 3,000 firearm purchases in 2024 and over 10,000 since 2023 have been denied because of an MCDV conviction (including but not limited to crimes that took place in a dating relationship).
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More than 2,000 entries have been submitted into the FBI’s background check system (NICS), recording an MCDV conviction involving a dating relationship.
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Efforts are ongoing to educate local law enforcement and prosecutors on this new prohibition, including:
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Webinars in 27 states, with 13 more planned;
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NICS trainings attended by over 500 law enforcement agencies;
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A BSCA webinar hosted by EOUSA and attended by nearly 1,000 prosecutors and agents; and
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The Department’s multi-component Domestic Violence Community of Interest (DV-COI) issuing an updated MCDV Reference Card, including guidance on the dating-relationship provision of BSCA.
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Funding Violence Prevention and Intervention Programs
BSCA authorized a total of $1.4 billion in funding for new and existing violence-prevention and intervention programs between 2022 and 2026. Thus far, the Department has provided:
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Over $238 million in Byrne State Crisis Intervention Program grants for state crisis intervention court proceedings.
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Over $73 million in supplemental OJP STOP School Violence grants to enhance school security.
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In part through BSCA funding:
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more than 3,500 schools enhanced intervention teams;
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more than 2,300 schools formed intervention teams; and
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141 schools implemented school safety plans.
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Schools receiving grant funding had licensed professionals assess 95% of those who received clinical threat assessments.
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$40 million in supplemental COPS School Violence Prevention Program grants.
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Over $94 million in supplemental Community Violence Intervention and Prevention Initiative (CVIPI) grants.
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Nearly $75 million in National Criminal History Improvement Program (NCHIP) Supplemental Funding.
Engaged in the Business of Dealing in Firearms
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From FY21 to FY23, there was a 60% increase in the number of defendants charged with engaging in the business of importing, manufacturing, or dealing in firearms without a license.
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In April 2024, the Department issued a Final Rule (EIB Rule) implementing the BSCA statutory definition clarifying when a person is “engaged in the business” of dealing in firearms, and thus required to obtain a federal firearms license.
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The EIB Rule will promote increased compliance with federal gun laws, thereby increasing the number of background checks performed, and expanding the availability of records for the tracing of crime guns by law enforcement.
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Federal Jury Convicts Brothers on Felons in Possessions of Firearms ChargesRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that a federal jury convicted Romeo Walter, 42, and Kenan Thomas, 37, of St. Thomas, of federal and local firearms charges following a six-day trial. Federally, Walter and Thomas were convicted on felon in possession of firearms, and locally, the brothers were convicted on unauthorized possession of firearms. Chief District Judge Robert A. Molloy scheduled the defendants’ sentencings for October 25, 2024.
According to evidence admitted at trial, on April 8, 2020, Virgin Islands Police Department officers were patrolling the Hospital Ground neighborhood in St. Thomas due to recent shootings, including a homicide earlier the same day. The officers entered the “Jah Yard” area of Hospital Ground and pursued a group of individuals, including Walter and Thomas, after the group fled on foot. Surveillance video captured Walter, Thomas, Akeem Julien and Nijontea Walker climbing over a railing and onto the patio of a neighborhood home with two black bags. The surveillance video showed Thomas passing a handgun from his waist to Julien who then placed the gun into a black duffle bag. The footage further showed Thomas leave the patio with two bags heading in one direction, while Julien and Walter traveled in the opposite direction and Walker followed. The officers chased Thomas to a small house in Jah Yard and placed him under arrest. In Thomas’ possession were two bags containing an AK-47 firearm with an obliterated serial number, a Glock 20, 10 mm handgun, a Glock 21, .45 caliber handgun, and an AR-15 firearm all loaded with numerous rounds of ammunition.
Walter, Julien, and Walker were later identified by the video surveillance. On April 19, 2020, Julien was arrested at the Cyril E. King airport in St. Thomas attempting to board a flight to Los Angeles. He later pleaded guilty to possession of a firearm with an obliterated serial number and was sentenced on November 21, 2023, to 30 months imprisonment. A reward for information led to the arrest of Walker on May 22, 2020. Walker pleaded guilty to possession of a firearm with an obliterated serial number and was sentenced to 30 months imprisonment on September 9, 2023. During the investigation, law enforcement provided a known DNA profile of Walter to compare to DNA found on the firearms which led to his arrest on September 3, 2020, in Oklahoma.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The case was investigated by the Virgin Islands Police
Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations and prosecuted by Assistant United States Attorneys Natasha Baker and Kyle PayneElkhart Woman Sentenced to 48 Months in PrisonRead the Press Release
SOUTH BEND – Beatris Loredo, 44 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to conspiracy to distribute and possess with intent to distribute controlled substances, announced United States Attorney Clifford D. Johnson.
Loredo was sentenced to 48 months in prison followed by 3 years of supervised release.
According to documents in the case, Loredo conspired to receive through the United States mail two packages containing methamphetamine and heroin for distribution. In October 2022, law enforcement intercepted a package bound for Loredo that contained nearly 2 kilograms of pure methamphetamine. In January 2023, law enforcement intercepted a second package bound for Loredo which contained 77 grams of heroin. Both packages originated from Mexico, and Loredo admitted she intended to deliver the packages, but was unable to do so because they never arrived.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and the U.S. Customs and Border Protection Agency with assistance from the Drug Enforcement Administration North Central Laboratory. The case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
El Aero Services LLC Agrees to Pay over $2.1 Million for Response to Sheep Creek FireRead the Press Release
LAS VEGAS – El Aero Services, LLC has entered into a civil settlement agreement pursuant to which it has agreed to pay over $2.1 million dollars for fire response and suppression costs arising out of the Sheep Creek Fire in 2018.
The U.S. Department of the Interior’s Bureau of Land Management (BLM) incurred $2,173,872.44 in costs and damages to suppress the Sheep Creek Fire, which started on August 18, 2018, after a helicopter crashed in the Sheep Creek Range, North of Battle Mountain, Nevada. The BLM investigated the fire and determined that El Aero Services, LLC was responsible.
“Thanks to the diligence of Assistant United States Attorneys and professional staff in the Civil Division, we have recovered over $2.1 million spent in response to the Sheep Creek Fire, which was sparked by a helicopter accident,” said United States Attorney Jason M. Frierson for the District of Nevada. “This settlement reflects our office’s commitment to ensuring full recovery of wildfire suppression costs.”
Assistant United States Attorney Skyler Pearson handled this matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Court Sentences Two California Men Caught with Approximately Five Kilograms of Fentanyl to 70 Months ImprisonmentRead the Press Release
MOBILE, AL – On June 17, 2024, United States District Court Judge, Jeffrey U. Beaverstock sentenced Zeshan Malik Fayyaz and Lener Daneski Jairon-Solis, each to 70 months imprisonment each for Conspiracy to Possess with the Intent to Distribute Fentanyl.
Documents filed with the Court established that on October 8, 2022 a cooperating source, along with a Mobile County Sheriff's Deputy, acting in an undercover capacity, agreed to meet the two defendants in Mobile County to purchase 2 kilograms of fentanyl for $38,000 per kilogram. When the men arrived at the meet location, Jairon-Solis got out of the vehicle and went into the back seat of the vehicle and opened a suitcase and removed two kilograms of fentanyl in exchange for the cash. Law enforcement had arranged the cash to appear to contain $76,000 by putting $100 bills on the outside and mostly $1 bills on the inside, but in fact it was less than $10,000.
During the operation law enforcement observed what appeared to be more drugs in the suitcase. The vehicle was followed from the location and later stopped by law enforcement and officers recovered an additional three kilograms of fentanyl from the vehicle as well as the undercover buy money. The defendants were planning to deliver the additional three kilograms to Pensacola, Florida.
United States Attorney Sean P. Costello commended the investigators for their hard work and dedication in removing 5 kilograms of the deadly drug fentanyl from the community. Costello added that 2 milligrams of fentanyl is considered a lethal dose and thus this seizure surely saved many lives given the fentanyl overdose epidemic facing the nation. The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Mobile County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney George F. May.