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2 August 2024
Six Members of Transnational Fraud Network Indicted for Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
A federal grand jury in Los Angeles has returned an indictment charging six defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts.
According to court documents, Henry LoConti, 63, of Chardon, Ohio; John Flynn, 43, of Canada; Shoaib Ahmad, 64, of Canada; Timothy Munoz, 57, of Wilmington, California; Eric Crespin, 61, of Canada; and Lezli St. Hill, 53, of Canada, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims.
Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
Combined with a prior indictment, 19 conspirators are currently charged in the Central District of California for their participation in the scheme. Three other defendants have been convicted and/or sentenced in the District of Nevada, Southern District of California and District of Maryland.
“The scheme alleged in the indictment involved an elaborate plot to steal consumers’ hard-earned savings directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to prosecute such schemes.”
“Criminals are utilizing technology to devise increasingly sophisticated methods to steal from victims,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to use all available tools to prosecute and apprehend these fraud networks, but I also urge everyone to regularly check your accounts for any unauthorized activity – no matter how small. Prevention is key.”
“The U.S. Postal Inspection Service (USPIS), along with our partners, remain committed to shutting down these types of scammers,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “Dismantling this syndicate, and the arrests and prosecutions of those involved, should send a clear message that fraudulent schemes that exploit innocent victims, many of whom have suffered not only financial losses but also emotional distress and a breach of trust, will not be tolerated. The Postal Inspection Service will make sure that justice is served and that those responsible for these types of crimes feel the full weight of justice.”
All six defendants are charged with racketeering conspiracy and wire fraud. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ahmad was separately charged in a second indictment with conspiracy to commit bank and wire fraud related to his participation in a similarly-structured conspiracy that also stole money from U.S. consumer-victims.
The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at www.reportfraud.ftc.gov or at 877-FTC-HELP.
USPIS is investigating the case.
Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait for the Central District of California are prosecuting the case.
The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams and subscription traps.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Members of Transnational Fraud Network Indicted for Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
LOS ANGELES – A federal grand jury has returned an indictment charging six defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today.
According to court documents, Henry LoConti, 63, of Chardon, Ohio; John Flynn, 43, of Canada; Shoaib Ahmad, 64, of Canada; Timothy Munoz, 57, of Wilmington, California; Eric Crespin, 61, of Canada; and Lezli St. Hill, 53, of Canada, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims.
“Criminals are utilizing technology to devise increasingly sophisticated methods to steal from victims,” said United States Attorney Martin Estrada. “My office will continue to use all available tools to prosecute and apprehend these fraud networks, but I also urge everyone to regularly check your accounts for any unauthorized activity – no matter how small. Prevention is key.”
“The scheme alleged in the indictment involved an elaborate plot to steal consumers’ hard-earned savings directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to prosecute such schemes.”
Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
Combined with a prior indictment, 19 conspirators are currently charged in the Central District of California for their participation in the scheme. Three other defendants have been convicted and/or sentenced in the District of Nevada, Southern District of California, and District of Maryland.
“The U.S. Postal Inspection Service (USPIS), along with our partners, remain committed to shutting down these types of scammers,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “Dismantling this syndicate, and the arrests and prosecutions of those involved, should send a clear message that fraudulent schemes that exploit innocent victims, many of whom have suffered not only financial losses but also emotional distress and a breach of trust, will not be tolerated. The Postal Inspection Service will make sure that justice is served and that those responsible for these types of crimes feel the full weight of justice.”
All six defendants are charged with racketeering conspiracy and wire fraud. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ahmad was separately charged in a second indictment with conspiracy to commit bank and wire fraud related to his participation in a similarly-structured conspiracy that also stole money from U.S. consumer-victims.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at www.reportfraud.ftc.gov or at 877-FTC-HELP.
USPIS is investigating the case.
Assistant United States Attorney Monica Tait of the Major Frauds Section and Justice Department Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams and subscription traps.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
Six Indicted in Scheme to Defraud D.C. Medicaid ProgramRead the Press Release
WASHINGTON – Omolere Omomowo, 43, a resident of Laurel, Maryland and Fort Lauderdale, Florida, who led several companies that claimed to provide mental health rehabilitative services to some of the District’s most vulnerable citizens, was indicted on August 1, 2024, along with five “community support workers” (CSWs) employed by his company, on charges that they conspired to and did defraud the D.C. Medicaid program of over $10 million by engaging in a scheme to submit bills for mental-health related services that were not medically necessary, not reimbursable, and did not occur.
The indictment was announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Law enforcement arrested Omomowo earlier today in Fort Lauderdale. He made his initial appearance earlier today in the U.S. District Court for the Southern District of Florida. Co-defendant Zilah Bessem, 36, a resident of Frisco, Texas, who previously lived in Maryland, was charged in the same indictment and arrested Thursday evening at Dallas-Fort Worth International Airport. She made her initial appearance earlier today in the U.S. District for the Northern District of Texas and was detained pending trial.
The remaining four co-defendants – Gregory Clark of Washington, D.C., Ernest Ikomi of Beltsville, Maryland, Diane Mochi of Adelphi, Maryland, and Seraphine Nwufor of Bowie, Maryland – are expected to make their initial appearances in the U.S. District Court for the District of Columbia in the next week.
According to the indictment, Omomowo hatched the conspiracy in early 2020, while serving as the chief financial officer of a D.C.-based mental health provider, Prestige Healthcare Resources. After Prestige obtained certification from D.C.’s Department of Behavioral Health to start an Assertive Community Treatment (ACT) program, Omomowo took the lead in implementing the program. In the District, the ACT program provides intensive, integrated services to the most at-risk adults, individuals with an “intractable, serious, and persistent mental illness.” Under Medicaid rules, ACT providers were authorized to submit bills for a greater number of hours and at a higher rate given the seriousness of the mental-health and substance-abuse issues faced by program participants.
The indictment alleges that, shortly after Prestige obtained its ACT authorization, Omomowo orchestrated a scheme by which most, if not all, of the consumers on certain CSWs’ caseloads were stepped up from receiving standard mental health services into receiving services as part of the ACT Program. Omomowo and his co-conspirators allegedly implemented this scheme by directing the submission of false and fraudulent assessments despite knowing that ACT services were not medically necessary for the consumers. Omomowo and his co-defendants then allegedly billed Medicaid for ACT services that were not medically necessary as well as for services that did not occur.
According to the indictment, in April 2021, following an employment dispute with the CEO of Prestige, Omomowo resigned and started a new company, The Marcaulay Group, to continue the fraudulent billing scheme. At Omomowo’s direction, the co-defendant CSWs also left Prestige and joined The Marcaulay Group. The Marcaulay Group, however, was not certified with the Department of Behavioral Health, so Omomowo partnered with D.C.-based mental health service providers Affordable Home Healthcare LLC and later Goshen Healthcare Management Services LLC.
Because Affordable did not have an ACT Program, the Medicaid beneficiaries Omomowo and his CSWs sought to transfer from Prestige required medical assessments to determine whether they continued to need ACT services. The indictment alleges that Omomowo and an unnamed co-conspirator directed the CSW co-defendants to initiate a blanket ACT step-down process without regard to medical necessity and on the basis of false and fraudulent assessments. Omomowo and his co-defendants then conspired to and did submit false and fraudulent encounter notes for standard mental health services to Medicaid that (1) grossly inflated the amount of time spent conducting the mental health services; (2) were based on activities not authorized to be reimbursed by Medicaid; and (3) for mental health service encounters that did not occur.
For this conduct, the indictment charges all six defendants with conspiracy to commit health care fraud. It also charges Omomowo with an additional 10 counts of substantive health care fraud, and each of the five co-defendants with an additional two counts of health care fraud. In addition, Omomowo is charged with four counts of expenditure money laundering for making large purchases with the proceeds of the fraud scheme.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison for the conspiracy charge and lesser penalties for the other offenses. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the Federal Bureau of Investigation and the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit. Valuable assistance was provided by the Department of Health and Human Services and Internal Revenue Service Criminal Investigation.
It is being prosecuted by Assistant U.S. Attorney Christopher Howland of the U.S. Attorney’s Office for the District of Columbia and Special Assistant United States Attorney Jason Facci, on detail from the D.C. Office of the Inspector General.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Serial Bank Robber Sentenced to over Six Years in Prison for Robbing Four BusinessesRead the Press Release
BOSTON – A Boston man was sentenced on July 31, 2024 in federal court in Boston for robbing four businesses, during which he brandished two large knives, while on federal supervised release for robbery charges out of New York.
Akeem Lahens, 34, was sentenced by U.S. District Court Judge Allison D. Burroughs to 77 months in prison, followed by three years of supervised release. Lahens also was ordered to pay $1,998 in restitution to the four businesses he robbed. In April 2024, Lahens plead guilty to four counts of affecting commerce by armed robbery.
A series of commercial armed robberies occurred in Boston in late April and early May 2023: the armed robbery of Metro PCS in Roxbury on April 21, 2023; the armed robbery of Boost Mobile in Jamaica Plain on April 26, 2023; the armed robbery of Cricket Wireless in Jamaica Plain on April 27, 2023; and the armed robbery of Dunkin Donuts in Dorchester on May 4, 2023. Law enforcement believed that the robberies were connected and the perpetrator was likely the same person, as the suspect’s appearance in surveillance footage and witnesses descriptions was the same. Additionally, in each of the robberies, the suspect brandished two large knives, made a verbal demand for money, forcibly took money from the store and forced or attempted to force the victims into a rear room or bathroom of the store.
On May 5, 2023 Lahens was arrested on state charges related to the armed robberies. During a search of Lahens’ residence in Dorchester on May 6, 2023 two knives and sandals worn by the robber in the April 26, 2023 robbery were recovered.
At the time of the armed robberies, Lahens was on federal supervised release for a 2021 conviction in the Southern District of New York of five counts of robbery, for which he was sentenced to 30 months in prison.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Michael A. Davis, Vice President Campus Safety and Chief of Police at Northeastern University made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case.
Sedgwick Man Faces up to 60 Years in Prison for Producing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Sedgwick man pleaded guilty today in U.S. District Court in Bangor to producing child sexual abuse material.
According to court records, in May 2021, Travis Bessey, 29, participated in a Kik chat room dedicated to the distribution of child sexual abuse material. A Homeland Security Investigations (HSI) special agent monitoring the chat observed a user, later identified as Bessey, share images of an adult man sexually abusing young children. The U.S. Attorney’s Office does not identify victims of crime and is limiting identifying information, including gender, age and location, to protect the minor victims’ privacy. The Maine State Police and HSI executed a search warrant at Bessey’s residence. During the investigation, Bessey admitted to sending and receiving child sexual abuse material in the Kik group, and images of Bessey sexually abusing children were recovered from his phone.
Bessey faces 15-30 years in prison on each of the two counts, a fine up to $250,000 and mandatory restitution to the victims. Any sentence would be followed by a minimum of five years of supervised release.
HSI investigated the case with assistance from the Maine State Police.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal term as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Rochester businessman pleads guilty to tax chargeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Jeffrey Tome, 62, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to filing a false tax return, which carries a maximum penalty of three years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Tome owns Tome Enterprises Inc., which provides gutter repair and installation services in Rochester. For the tax years 2017 through 2021, Tome failed to deposit approximately 1,679 customer checks totaling $1,719,283.45 into Tome Enterprises Inc.’s business bank account, instead, cashing the checks at a local check cashing business. Tome then intentionally failed to advise the business’s tax return preparer of the money that was received from cashing the business checks, resulting in the $1,719,283.45 not being reported on the business’s corporate income tax returns. In addition, Tome failed to include the net profits from the corporation as income on his personal federal income tax returns, which resulted in Tome failing to pay personal income taxes totaling $330,137. Also, Tome paid his employees $407,573.60 in cash, which represented wages for which payroll taxes should have been paid. The payroll taxes that Tome failed to pay totaled $62,358.76.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso.
Sentencing is scheduled for December 11, 2024, at 2:00 p.m. before Judge Geraci.
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Pullman, Washington Father, Who Allegedly Took Child from Washington to Mexico, Indicted on Federal Kidnapping ChargesRead the Press Release
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Aaron Aung was charged by criminal complaint on one count of International Parental Kidnapping. Aung was arraigned in federal court on August 2, 2024.
According to the complaint, on June 3, 2024, Aung was supposed to travel to the Pullman Police Department for a custody exchange of the victim with the victim’s mother. Aung and the victim never arrived for the custody exchange. Instead, agents with the FBI and U.S Customs and Border Protection (CBP) obtained photos of a vehicle Aung was allegedly driving, which had crossed into Mexico on June 1, 2024, at the Andrade, California, Port of Entry.
The complaint further alleges that on July 4, 2024, Aung, the victim, and Aung’s fiancé, Nadia Cole, were contacted by Mexican officials in Mexico. Cole later was deported from Mexico to the United States, while Aung and the victim remained in Mexico at that time. Three days later, on July 7, 2024, Aung and the victim were encountered by Mexican officials near the United States-Mexico border in Nogales, Mexico. Aung and the victim were then deported by Mexican officials to the port of entry near Nogales, Arizona, where they were presented to CBP officials. CBP then took custody of both Aung and the victim. CBP also detained Aung on an outstanding felony warrant issued out of Whitman County, Washington for custodial interference first degree.
“Children deserve to live in a world where they are safe, surrounded by adults who love and care for them,” stated U.S. Attorney Waldref. “Our office prioritizes offenses against our community’s youngest and most vulnerable victims and will continue to aggressively prosecute those who harm children.”
This case is being investigated by the FBI. This case is being prosecuted by Assistant United States Attorneys Rebecca Perez and Michael J. Ellis.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Phoenix Man Charged for Role as Recruiter and Coordinator of Alien SmugglersRead the Press Release
TUCSON, Ariz. – Nathan Espinoza Jr., 22, of Surprise, was arrested last week for his role in recruiting a driver and coordinating the transportation of two undocumented noncitizens in March 2024, one of whom suffered fatal injuries after jumping out of the driver’s vehicle while it was moving. Espinoza was charged by criminal complaint with one count of Conspiracy to Transport Illegal Aliens for Profit.
The complaint alleges that, since at least March 2024, Espinoza has conspired with others to recruit drivers to transport undocumented noncitizens, in exchange for which he received approximately $1,000 per person transported into the United States. The complaint further alleges that Espinoza has acted as a middleman for other smuggling coordinators and has helped coordinate numerous smuggling loads, including the March 2024 smuggling event that resulted in the death of one of the noncitizen passengers.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This arrest is a result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. This work was recently expanded to Panama and Colombia. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 24-MJ-03713-TUC-N/A (EJM)
RELEASE NUMBER: 2024-107_Espinoza# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Pennsylvania Man Sentenced to Life Imprisonment for Kidnapping and Death of Woman Whose Body Was Found in Nevada DesertRead the Press Release
LAS VEGAS – A Pennsylvania man who was convicted by a federal jury was sentenced to life imprisonment for kidnapping a woman in Pennsylvania then driving her to Nevada and killing her in the desert.
Following an eight-day jury trial in May 2024, John Matthew Chapman, was found guilty of one count of kidnapping resulting in death. United States District Judge James C. Mahan presided over the trial and sentenced Chapman to the maximum penalty.
“The defendant violated the victim’s trust by luring her away from her family and friends in Pennsylvania and out into the Nevada desert where he viciously killed her,” said United States Attorney Jason M. Frierson for the District of Nevada. “This sentence should send a clear message to others that kidnapping and killing another person will result in a substantial prison sentence. Thank you to our federal and local law enforcement partners for their hard work in bringing justice for the victim’s family.”
“Today’s sentencing holds the defendant accountable for the callous and brutal murder of an innocent young woman,” said Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Field Office. “We hope it will bring a sense of closure to the victim’s family, while affirming the FBI and our law enforcement partners' commitment to pursuing justice for those affected by violence.”
According to court documents and evidence presented during trial, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim in approximately two months, but they had observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found identification cards with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.
On November 15, 2019, Bethel Park Police Department detectives arrested and interviewed Chapman. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania, to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim before their departure to Nevada. Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a bondage photo shoot, Chapman bound the victim’s hands and feet with plastic zip ties and affixed her to a signpost. Then he applied duct tape to her mouth and nose and watched her die from asphyxiation.
The joint investigation revealed that Chapman returned to Pennsylvania. He pretended to be the victim, including using the victim’s Facebook messenger account, and he continuously used the victim’s residence and money following her death.
The FBI, the Lincoln County Sheriff’s Office in Nevada, and the Bethel Park Police Department in Pennsylvania investigated the case. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Steven Rose prosecuted the case.
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Owner of Great Falls firearms business charged with filing false income tax returnsRead the Press Release
GREAT FALLS — The owner of firearms business in Great Falls was charged with filing false income tax returns after an undercover investigation determined the owner did not report 20 percent, or approximately $1.4 million, of his gross receipts, resulting in a tax loss of almost $500,000, U.S. Attorney Jesse Laslovich said today.
A grand jury indictment filed on Aug. 1 in U.S. District Court charges the defendant, Tommy Michael VanHoose, 66, with five counts of submitting a false tax return. If convicted, VanHoose faces a maximum of three years in prison, a $250,000 fine, and one year of supervised release on each count.
A summons was issued for VanHoose to appear for arraignment on Sept. 10 before U.S. Magistrate Judge John T. Johnston in Great Falls.
An indictment is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
“The indictment alleges VanHoose, by his own claims, skimmed cash from his firearms business and did not report 20 percent of his gross receipts to the IRS, which resulted in a substantial underpayment of income taxes to the United States. After a thorough investigation conducted by the IRS, we allege VanHoose’s own statements to an undercover agent were accurate, which is why he is charged with multiple counts of submitting a false federal tax return,” U.S. Attorney Laslovich said.
The indictment alleges that VanHoose owned and operated Highwood Creek Outfitters LLC, a firearms distributor and shooting range in Great Falls. VanHoose, through a real estate agent, listed the business for sale for $1,750,000. An IRS undercover agent, posing as a potential buyer, inquired about the list price by calling the real estate agent in February 2023. The real estate agent told the undercover that, “[N]ot everything flows to the tax returns.” In a later conversation, the real estate agent told the undercover that they would not identify in writing any “off the books” income but the actual amount of income was “substantial.”
As further alleged, the undercover toured Highwood Creek Outfitters with VanHoose in May 2023. During the tour, VanHoose stated that he skimmed approximately $450,000 in cash and repeatedly stated he did not report 20 percent of the gross receipts to the IRS. Based on his own claims and on records obtained through a search warrant, VanHoose underreported approximately 20 percent, or about $1,486,404, of his income for tax years 2018 through 2022, resulting in him owing the IRS approximately $492,254.
In addition, the indictment alleges that when individuals purchase firearms from Highwood Creek Outfitters, they are required to complete a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473, which identifies the firearm purchased. The undercover asked VanHoose how underreporting of income was possible when ATF tracked gun sales by serial number through ATF Form 4473s. VanHoose responded, “It’s easy.” VanHoose further stated, “they don’t know what I’m paying for or I’m getting in income off those guns.” VanHoose therefore confirmed to the undercover that he accurately detailed sales through the ATF Form 4473 but underreported his income to the IRS. IRS agents executed a search warrant on June 14, 2023, at Highwood Creek Outfitters to obtain, among other items, the ATF Form 4473s to determine the amount of unreported income. The actual gun prices were attached to the ATF Form 4473s and confirmed that VanHoose skimmed cash and underreported his gross receipts to the IRS.
The indictment also alleges that VanHoose sold firearms for a higher price than what he entered into a point of sales system for the business; gave or sold firearms to others in which he did not record the transaction; and lied to his accountant by providing incomplete records to underreport income to the IRS.
The U.S. Attorney’s Office is prosecuting the case. IRS Criminal Investigation conducted the investigation.
PACER case reference. 24-60.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Orlando Man Sentenced to 60 Years in Federal Prison for Producing Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Muhamad Almufada Adi (49, Orlando) to 60 years in federal prison for producing child sexual abuse material. The court also ordered Adi to forfeit the electronic devices used in the commission of the offense. Adi entered a guilty plea on May 14, 2024.
According to court documents, between 2018 and 2022, Adi sexually abused a minor victim and produced child sexual abuse material of the child. Adi then uploaded the child sexual abuse material to online cloud and social media accounts. Adi also sexually abused a second minor victim and forced the second child to look at the child sexual abuse material that had been produced of the first child.
This case was investigated by Homeland Security Investigations and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Diane Hu.
“Protecting our children from sexual exploitation is a moral obligation for Homeland Security Investigations and our partners at the Orange County Sheriff’s Office,” said Homeland Security Investigation Tampa Special Agent in Charge John Condon. “Our mutual steadfast commitment comes with an unwavering vigilance and compassion for victims.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.justice.gov/psc.
Nicaraguan National Indicted for Making False Statements in a Passport ApplicationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on August 1, 2024, SILVIO MARTIN MENDOZA SANCHEZ (“MENDOZA SANCHEZ”), age 44, a citizen of Nicaragua, was indicted on August 1, 2024, for making false statements in an application for a United States passport, in violation of 18 U.S.C. § 1542.
According to court documents, on or about May 25, 2024, MENDOZA SANCHEZ used the identity information of a Puerto Rican citizen to apply for a United States passport. If convicted, ALVARO faces up to 10 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Department of State, Diplomatic Security Service. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Niagara Falls man arrested on fentanyl chargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Levester Rose, 46, of Niagara Falls, NY, was arrested and charged by criminal complaint with possession with intent to distribute 40 grams or more of fentanyl, which carries a minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, during an ongoing narcotics trafficking investigation in Niagara Falls, Rose was identified as an individual engaged in narcotics trafficking. Rose has a history of narcotics trafficking, with drug convictions in 1995, 2014, and 2020. On July 31, 2024, investigators executed a search warrant at a 26th Street residence in Niagara Falls, a premises known to be utilized by Rose. During the search, law enforcement recovered packages of suspected fentanyl.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the North Tonawanda Police Department, under the direction of Chief Keith Glass, the Niagara Falls Police Department, under the direction of Superintendent Nick Ligammari, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michal Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Newington Man Charged with Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in Hartford has returned an indictment charging MARTIN DELGADO, 29, of Newington, with narcotics distribution and firearm possession offenses.
The indictment was returned on July 31, 2024, and Delgado was arrested this morning. He appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.
As alleged in statements made in court, on May 13, 2024, members of the FBI’s Northern Connecticut Gang Task Force conducted a court-authorized search of Delgado’s Newington residence and seized approximately 2,500 wax paper sleeves containing fentanyl, a quantity of cocaine, and narcotics packaging materials. Delgado, who fled on foot when officers arrived at his residence, was apprehended a short time later in West Hartford. Officers located a 9mm handgun near Delgado’s residence that he appeared to have discarded as he fled. Delgado was charged with state offenses and released on bond.
It is alleged that Delgado’s criminal history includes state felony convictions for drug distribution offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Delgado with possession with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and unlawful possession of a firearm and ammunition by a felon, an offense that carries a maximum term of imprisonment of 15 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Northern Connecticut Gang Task Force, the Connecticut State Police, and the West Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police, and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Christopher Lembo and Reed Durham.
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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
New Orleans Man Pleads Guilty to Making False Statements to Small Business AdministrationRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that RENIC PALMER, JR. (“PALMER”), age 24, of New Orleans, pled guilty on August 1, 2024, before United States District Judge Carl J. Barbier to making or using false writings or documents to the United States Small Business Administration (SBA), in violation of Title 18, United States Code, Section 1001(a)(3).
According to court documents, PALMER, to obtain a Payroll Protection Program (“PPP”) Loan, submitted false writings and documents to the SBA. In his application, among other things, PALMER falsely represented that he was the owner of a merchant wholesale hair supply company formed in 2017 and that he was eligible for PPP funds. As a result of these false representations, PALMER obtained $20,832.00 from the SBA.
PALMER faces up to five years in prison, up to three years of supervised release, up to a $250,000 fine, a $100 mandatory special assessment fee, and restitution to the SBA for his conduct. Sentencing has been scheduled before Judge Barbier on November 7, 2024.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
U.S. Attorney Evans commended the Special Agents of the Coast Guard Investigative Service for their work on this case. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Mt. Juliet Man Arrested for Assaulting Law Enforcement and Other Charges During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON -- A Mt. Juliet, Tennessee, man has been arrested for allegedly assaulting law enforcement and other charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Nicholas Waldon Smotherman, 41, of Mt. Juliet is charged in a criminal complaint filed in the District of Columbia with felony offenses of obstruction of law enforcement during a civil disorder and assaulting, resisting, or impeding certain officers.
In addition to the felonies, Smotherman is charged with several misdemeanor offenses, including entering and remaining in restricted grounds or buildings, disorderly and disruptive conduct in restricted grounds or buildings, engaging in physical violence in restricted grounds or buildings, disorderly conduct in a Capitol building or grounds, and act of physical violence in the Capitol grounds or buildings.
The FBI arrested Smotherman today in Hermitage, Tennessee, and he will make his initial appearance in the Middle District of Tennessee.
According to court documents, it is alleged that Smotherman was identified among a crowd of rioters on Jan. 6, 2021, amassed on the Upper West Plaza of the U.S. Capitol grounds. At approximately 2:28 p.m., a Metropolitan Police Department (MPD) officer's body-worn camera captured Smotherman standing in front of the bike racks and a police line on the southwest side of the Upper West Plaza.
Here, a group of rioters had begun pulling on the bike racks. Smotherman was seen on body-worn camera next to the group, appearing to advance toward at an MPD officer. Police then commanded the rioters to move back. Instead, the rioters pulled the bike rack barricades to the ground, and Smotherman moved forward toward the police line. It is alleged that Smotherman then approached an MPD officer and pushed the officer with both hands.
The officer then attempted to push Smotherman back using a baton, but Smotherman stood upright and yelled, "Hit me with it again." When the officer again attempted to push Smotherman back, Smotherman allegedly grabbed the officer's baton and attempted to pull it away. As Smotherman acted, he yelled, "I'll f— take this" and "Come out here b—." The officer managed to prevent Smotherman from taking the baton while another officer deployed pepper spray, and Smotherman retreated.
Soon after this, rioters overran the police line on the Upper West Plaza, and officers retreated to the Lower West Terrace. A large crowd of rioters then gathered in and around the entrance to the Lower West Terrace Door, referred to as the "Tunnel," the site of some of the most violent attacks against law enforcement on January 6th. Smotherman was later identified in and around the Tunnel.
This case is being prosecuted by the U.S. Attorney's Office for the District of Columbia and the Department of Justice National Security Division's Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney's Office for the Middle District of Tennessee.
The case is being investigated by the FBI's Memphis and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department. Smotherman was identified as Assault on Federal Officer (AFO) #364.
In the 42 months since Jan. 6, 2021, more than 1,470 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 530 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mount Airy Man Pleads Guilty to Conspiracy Charge for $1 Million Cattle Theft SchemeRead the Press Release
CHARLOTTE, N.C. – William Dalton Edwards, 25, of Mount Airy, N.C., pleaded guilty today to a conspiracy charge for his role in a $1 million scheme involving the theft of livestock, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Miles B. Davis, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG), Southeast Region, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Sheriff Alan Norman of the Cleveland County Sheriff’s Office
and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to plea documents and the plea hearing, from April 2018 to October 2022, Edwards conspired with another person to defraud livestock markets, also known as sales barns, in Iredell and Cleveland Counties, North Carolina, and in Texas, Oklahoma, and Virginia. The investigation determined that, on multiple occasions during the relevant time frame, Edwards and his coconspirator purchased cattle from sales barns in North Carolina and wrote checks to pay for the cattle. Edwards and his coconspirator wrote such checks knowing they were worthless, since there were insufficient funds to cover the checks and pay for the cattle.
According to court records, Edwards and his coconspirator arranged to transport the cattle out-of-state before the defrauded sales barns and financial institutions could determine their checks were worthless. The stolen cattle were then resold in Texas and Oklahoma. Over the course of the scheme, Edwards and his co-conspirator fraudulently obtained more than 3,000 head of cattle and caused over $1 million in losses to sales barns in North Carolina, Virginia and Texas. The sales barns—which are family-owned in North Carolina—incurred these losses because they are required to pay farmers and ranchers immediately after the sale of their livestock.
Edwards pleaded guilty to conspiring to defraud the United States and to violate the laws of the United States. One of the objects of the charged conspiracy was to hamper and impede the Packers and Stockyard Division of the U.S. Department of Agriculture in its regulation of fair livestock markets. Other objects of the conspiracy included a scheme to obtain funds under the custody and control of federally insured financial institutions through false statements and representations; to steal livestock valued at more than $10,000; and to transport stolen livestock in interstate commerce.
The statutory maximum for the charged offense is five years in prison, and any restitution or fines ordered by the Court at sentencing. Edwards is released on bond. A sentencing date has not been sent.
In making today’s announcement, U.S. Attorney King commended the USDA-OIG, the U.S. Secret Service, IRS-CI, and the Cleveland and Iredell County Sheriff’s Offices for their investigation of the case. U.S. Attorney King also thanked the Stanly County District Attorney’s Office for its assistance.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Morgantown Sex Offender Convicted After Traveling to Mexico to Purchase ChildRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scott David Bixler, 43, of Morgantown, West Virginia, has admitted to failing to update his sex offender registration.
United States Attorney William Ihlenfeld announced that Bixler, a convicted sex offender, traveled outside of the country last August without notifying the West Virginia State Police as required by his sex offender status. Bixler was arrested in Mexico, where investigators determined that he attempted to purchase a 7-year-old girl. According to court documents and statements made in court, Bixler was in possession of two tranquilizer air guns, methamphetamine, a cell phone jammer, and $5,000 in cash with which to purchase the child.
“It should be a relief to everyone, especially to parents of young children, knowing that someone as dangerous as Scott Bixler has been convicted and will be locked up for a long time,” said U.S. Attorney Ihlenfeld. “I’m grateful for the work of law enforcement to apprehend Bixler and bring him to justice.”
As a result of his guilty plea, Bixler faces up to 10 years in federal prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government, along with former Assistant U.S. Attorney Sarah Wagner.
This case was investigated by the FBI, the U.S. Marshals Services, and the West Virginia State Police.
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.
U.S. Magistrate Judge Michael John Aloi presided.
Monona County, Iowa Kidnapper and Gunman Sent to Federal PrisonRead the Press Release
A Monona County, Iowa man was sentenced today, August 2, 2024, to 16 years in federal prison.
Allen Jones, age 35, from Ute, Iowa received the prison term after a March 19, 2024, guilty plea to kidnapping.
Evidence in the case revealed on July 7, 2023, Jones called his employer and stated his car would not start and that he needed a ride to work. Jones supervisor instructed a co-worker to pick up Jones at his residence. When the co-worker pulled into the driveway, Jones lured the co-worker into the garage, pointed a loaded shotgun at him, and said we are “going for a ride.” Jones held his victim at gunpoint, forced him into his (Jones’s) car, and ordered him to drive to a near-by casino. Jones told his victim that he planned “to shoot up the casino” and use the victim as a human shield.
On the way to the casino, Jones instructed the victim to change course, because he wanted to confront a former girlfriend before he committed the mass-shooting. Near Mapleton, Iowa, Jones further directed his victim to stop at a gas station, go into the store, and buy him food and beer. Jones warned his victim not to try to escape. The victim entered the store, selected some items, held them up to the window for Jones to see, but then set the items down and fled out of the back of the store. The victim ran alongside a storage unit, across a field, struggled across the Maple River, crossed another field, and ran onto an airfield where the victim found help.
When law enforcement arrived, they learned Jones had left the gas station on foot. Jones was located and arrested. On his person Monona County Sherriff’s Deputies located methamphetamine and in the truck they located the loaded shotgun. A subsequent search of Jones’ home revealed additional firearms, ammunition, various prescription pills, methamphetamine, and other items of contraband.
Jones has a lengthy criminal history including a 2013 federal conviction for illegally possessing a firearm as a felon and a history of marijuana, cocaine, and methamphetamine use.
Jones was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Jones was sentenced to 192 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Iowa Department of Public Safety-Iowa State Patrol, Monona County Sherriff’s Office, and the United States Department of Justice-Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4048.
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Missouri Woman Sentenced to 41 Months in Prison for Pandemic Loan FraudRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Thursday sentenced a woman who fraudulently obtained $135,622 in pandemic loans for herself and helped others get hundreds of thousands more to 41 months in prison and ordered her to repay the money.
Edna E. McGowan-Baker engaged in a scheme between May 2020 and September 2021 to fraudulently obtain Paycheck Protection Program (PPP) loans, which were intended to aid small businesses in paying and retaining employees during the COVID-19 pandemic.
McGowan-Baker applied for seven PPP loans for five different companies in her name, only two of which were in operation. On the loan applications, McGowan-Baker falsified the companies’ payroll, number of employees and annual income to inflate the amount of PPP loan money she could receive. She also submitted fraudulent tax forms with the applications. McGowan-Baker certified on the applications that she would use the loans for payroll and other authorized expenses but used the money for her own bills and to make personal purchases and payments to others. She also submitted fraudulent applications for PPP loan forgiveness, falsely stating that she used the loans for authorized expenses.
During Thursday’s sentencing hearing, Assistant U.S. Attorney Jonathan Clow an an FBI special agent said McGowan-Baker also prepared and submitted fraudulent PPP loan applications for others in exchange for a cut of the loans that they received, taking “advantage of this once-in-a-generation crisis,” Clow said in a sentencing memo.
McGowan-Baker, 48, pleaded guilty in March in U.S. District Court in St. Louis to one count of wire fraud and two counts of bank fraud. She was ordered Thursday to repay $149,194, representing the fraudulent loans she received, interest and loan processing fees.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mexican National Sentenced to 11 years in Federal Prison for Drug Trafficking and Illegal Reentry After DeportationRead the Press Release
COLUMBIA, S.C. — Pedro Huerta Ramon, 39, of Mexico, was sentenced to more than 11 years in federal prison after pleading guilty to distributing 50 grams or more of methamphetamine and unlawfully reentering the United States after prior deportation.
Evidence presented in court revealed that the Drug Enforcement Administration (DEA) became aware of Pedro Huerta Ramon in 2018, after receiving information that Ramon was a high-level cocaine distributor operating in Lexington County. As a result of this investigation, Ramon was arrested and convicted for trafficking cocaine in 2019. Ramon was unlawfully present in the United States and after his conviction, he was deported to Mexico in November 2019.
In 2023, DEA agents received information that Ramon was back in the United States and trafficking kilogram quantities of methamphetamine and cocaine imported from Mexico. The investigation revealed Ramon unlawfully returned to the United States in December 2020. Law enforcement developed and used a confidential informant to conduct a series of controlled purchases from Ramon. Ramon sold over a kilogram of pure methamphetamine to the confidential informant and a search of his residence resulted in the seizure of one kilogram of cocaine.
Senior United States District Judge Joseph F. Anderson sentenced Ramon to 135 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Drug Enforcement Administration, Department of Homeland Security, and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Ariyana Gore is prosecuting the case.
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Lynn Man Convicted of Drug and Firearm ChargesRead the Press Release
BOSTON – A Lynn man was convicted today following a five-day jury trial in federal court in Boston in connection with drug and firearm charges.
Jose Perez, 27, was convicted of one count of conspiracy to distribute and to possess with intent to distribute controlled substances and one count of felon in possession of a firearm. Chief U.S. District Court Judge F. Dennis Saylor scheduled sentencing for Nov. 1, 2024. In January 2023, Perez was arrested and charged along with co-defendant Henry Del Rio.
“Mr. Perez put the community at risk with dangerous controlled substances and an illegal firearm. With drugs and guns threatening many civilians’ livelihoods, this case demonstrates our commitment to protecting our communities from any and all threats they may face,” said Acting United States Joshua S. Levy. “Keeping our neighborhoods safe is the very essence of the work of our office, and we will not rest in pursuit of that mission.”
“Illegally possessing a firearm while trafficking in illegal drugs fuels the violence in our communities,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “I commend the Lexington Police Department and the United States Attorney's Office for holding Mr. Perez accountable.”
In December 2022, local police officers attempted to stop a vehicle for traffic violations that Perez was driving. Instead of pulling over, Perez accelerated and engaged in a high-speed escape attempt, traveling more than 85 miles per hour on residential streets. Eventually, Perez’s car lost control and collided with another vehicle, stopping Perez. When Perez exited the vehicle, a Glock 34X 9mm semi-automatic handgun dropped to the ground. Perez subsequently tried to escape on foot. After Perez and Del Rio ran from authorities and were apprehended, Perez was found with $2,000 cash in his pockets; two bags that were determined to contain cocaine and 44 smaller, individually wrapped bags of fentanyl were found in Del Rio’s flight path. A search of the vehicle yielded a third bag of cocaine.
Given Perez’s status as a felon, he is barred from possessing a firearm.
Del Rio pleaded guilty in April 2024 and is scheduled to be sentenced on Oct. 3, 2024.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substance provides for a sentence of up to 20 years in prison, at least three years, up to life, of supervised release and a fine of up to $1,000,000. The charge of felon in possession of a firearm provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy and ATF SAC Ferguson made the announcement today. Valuable assistance was provided by the Lexington, Chelsea and MBTA Police Departments and Customs and Border Protection. Assistant U.S. Attorneys Mike Crowley, Deputy Chief of the Organized Crime and Gang Unit, and Sarah Hoefle of the Organized Crime and Gang Unit are prosecuting the case.
Lodge Grass man sentenced to four years in prison for trafficking meth in large-scale investigation centered on Crow Indian ReservationRead the Press Release
BILLINGS — A Lodge Grass man who trafficked methamphetamine as part of large-scale, multi-state operation that was centered on the Crow Indian Reservation was sentenced today to four years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Morgan Luke Hugs, 34, pleaded guilty in April to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that federal law enforcement, in collaborative effort with local and tribal law enforcement, engaged in a large-scale, multiple-state narcotics trafficking investigation centered on multiple properties on the Crow Indian Reservation. The properties, including one referred to as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne reservations. Hugs was one of the individuals affiliated with the investigation and was considered a mid-level dealer.
The government further alleged that from about January 2022 until March 2023, Hugs was receiving meth from Spear Siding and distributing it to others on the Crow Reservation. Hugs received meth from two main co-conspirators involved with the investigation, sold ounce quantities and used other people to help him conduct sales. Hugs also acted as a protector/enforcer for another co-conspirator and would use stolen guns to help pay off his drug debt to others at Spear Siding. In addition, law enforcement obtained meth from Hugs in a controlled purchase in Hardin in November 2022.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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Lander man arraigned on drug trafficking and firearm offensesRead the Press Release
Jason Trimmer, 47, of Lander, Wyoming, was arraigned on August 1, for possession with intent to distribute methamphetamine and fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and unlawful user of a controlled substance in possession of a firearm. Trimmer pleaded not guilty. A trial has been set for Oct. 7, before U.S. District Court Judge Alan B. Johnson.
The Safe Trails Task Force, led by the FBI, executed a search warrant on Trimmer’s residence and seized more than 500 grams of methamphetamine, over 32 grams of fentanyl, and 14 firearms. This task force investigates drug trafficking on the Wind River Indian Reservation, and in surrounding communities, with an emphasis on stopping the distribution of fentanyl. In addition to the FBI, task force members include the United States Drug Enforcement Administration, the Wyoming Division of Criminal Investigation, the Wyoming Highway Patrol, the Fremont County Sheriff’s Office, the Riverton Police Department, and the Lander Police Department.
If convicted, Trimmer faces 10 years to life imprisonment plus five years of consecutive imprisonment if found guilty of being in possession of a firearm in furtherance of a drug trafficking crime. If convicted, he will serve no less than five years to life of supervised release and may be fined up to $11.5 million on top of the $400 assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being prosecuted by Assistant U.S. Attorney Timothy W. Gist.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 24-CR-00118
KC Man Pleads Guilty to Illegal Purchase of Firearm Found After Mass Shooting at Super Bowl RallyRead the Press Release
KANSAS CITY, Mo. – A second Kansas City, Mo., man pleaded guilty in federal court today to the illegal straw purchase of a firearm recovered at the scene of the mass shooting at Union Station during the celebration of the Kansas City Chiefs Super Bowl victory on Feb. 14, 2024.
Chaelyn Hendrick Groves, 20, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of conspiracy to make false statements in the acquisition of a firearm. Co-defendant Ronnel Dewayne Williams, Jr., 22, pleaded guilty to the same charge on Wednesday, July 31.
Both Groves and Williams admitted they participated in the criminal conspiracy from Nov. 25, 2023, to Feb. 21, 2024. Williams made false statements to a licensed firearms dealer on Nov. 25, 2023, claiming he was the actual buyer of a Stag Arms lower receiver, which was intended to deceive the dealer into making the sale to Williams. Firearm receivers, or frames, house the firing mechanism and other internal parts of a firearm. The receiver can be loaded and fired, or built into a complete firearm by adding components. By federal definition, a receiver is a firearm and is the only controlled component of a firearm.
Groves and Williams admitted that Williams was not the true buyer of the firearm, but was purchasing the firearm for Groves, who was not of lawful age to purchase the firearm himself. Williams provided the firearm to Groves on the same day of the purchase. Groves then obtained a 300-blackout barrel and affixed it to the Stag Arms lower receiver.
Law enforcement officers recovered the firearm on Feb. 14, 2024, in the area of 30 West Pershing Road, Kansas City, Mo., following the mass shooting incident.
Groves and Williams also admitted that, between Feb. 16 and Feb. 21, 2024, they provided materially false statements to federal law enforcement officers regarding the acquisition and disposition of the Stag Arms lower receiver.
Under federal statutes, Groves and Williams each is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
This case is being prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Sues TikTok and Parent Company ByteDance for Widespread Violations of Children’s Privacy LawsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today filed a civil lawsuit in the U.S. District Court for the Central District of California against TikTok Inc., ByteDance Ltd., and their affiliates (together, TikTok) for violations of the Children’s Online Privacy Protection Act and its implementing regulations (COPPA) in connection with the popular TikTok app.
COPPA prohibits website operators from knowingly collecting, using, or disclosing personal information from children under the age of 13, unless they provide notice to and obtain consent from those children’s parents. It also requires website operators to delete personal information collected from children at their parents’ request. In 2019, the government sued TikTok’s predecessor, Musical.ly, for COPPA violations, and since then the defendants have been subject to a court order requiring them to undertake specific measures to comply with COPPA.
According to the complaint, from 2019 to the present, TikTok knowingly permitted children to create regular TikTok accounts and to create, view, and share short-form videos and messages with adults and others on the regular TikTok platform. The defendants collected and retained a wide variety of personal information from these children without notifying or obtaining consent from their parents. Even for accounts that were created in “Kids Mode” (a pared-back version of TikTok intended for children under 13), the defendants unlawfully collected and retained children’s email addresses and other types of personal information. Further, when parents discovered their children’s accounts and asked the defendants to delete the accounts and information in them, the defendants frequently failed to honor those requests. The defendants also had deficient and ineffectual internal policies and processes for identifying and deleting TikTok accounts created by children.
The defendants engaged in the above-described conduct despite being subject to a court order barring them from violating COPPA and imposing measures designed to ensure their compliance. TikTok is one of the most popular social media platforms in the world. The defendants’ COPPA violations have resulted in millions of children under 13 using the regular TikTok app, subjecting them to extensive data collection and allowing them to interact with adult users and access adult content. The complaint seeks civil penalties and injunctive relief.
“The Department is deeply concerned that TikTok has continued to collect and retain children’s personal information despite a court order barring such conduct,” said Acting Associate Attorney General Benjamin C. Mizer. “With this action, the Department seeks to ensure that TikTok honors its obligation to protect children’s privacy rights and parents’ efforts to protect their children.”
“The Justice Department is committed to upholding parents’ ability to protect their children’s privacy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This action is necessary to prevent the defendants, who are repeat offenders and operate on a massive scale, from collecting and using young children’s private information without any parental consent or control.”
“TikTok knowingly and repeatedly violated kids’ privacy, threatening the safety of millions of children across the country,” said FTC Chair Lina M. Khan. “The FTC will continue to use the full scope of its authorities to protect children online — especially as firms deploy increasingly sophisticated digital tools to surveil kids and profit from their data.”
The United States is represented in this action by Assistant Directors Rachael L. Doud and Zachary A. Dietert, and Trial Attorneys Ben Cornfeld and Marcus P. Smith, of the Civil Division’s Consumer Protection Branch. Jonathan W. Ware, Iris Micklavzina, Sarah Choi, and Michael Sherling represent the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
The claims made in a complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence. Certain allegations in the complaint linked to below are redacted due to defendants’ request that the government file these allegations under seal while the Court considers defendants’ intended motion to seal. The court’s ruling on defendants’ motion will determine whether and to what extent these allegations in the complaint become public.
ComplaintJury Convicts Two for Conspiring to Traffic Counterfeit Levi’sRead the Press Release
NEWS RELEASE SUMMARY – August 2, 2024
SAN DIEGO – After a three-day trial, a federal jury has convicted Marin Morales-Espinoza and Francisco Alvarado-Ramirez of conspiracy to traffic counterfeit Levi’s jeans labels, tags, rivets and buttons to make counterfeit Levi’s jeans.
According to the evidence presented at trial, Morales paid people to smuggle counterfeit Levi’s pieces and parts into the United States from Mexico at the Calexico Port of Entry. Another co-conspirator paid Morales to drive the pieces to his home in Los Angeles. That co-conspirator brought the pieces to Alvarado at his factory in the Garment District to make the counterfeit Levi’s jeans.
Tens of thousands of counterfeit Levi’s tags, buttons and rivets were seized at the Port of Entry. Over 2,000 completed counterfeit Levi’s jeans were seized from Alvarado’s factory. These fake Levi’s were sold at local swap meets by other co-conspirators. These are photos of the counterfeit parts:
The Senior Director of Global Brand Protection for Levi Strauss & Co. testified that none of the co-conspirators worked for Levi’s. He walked the jury through the seized merchandise to explain how they were not genuine Levi’s products.
“Counterfeit goods fool consumers and hurt retailers by diluting the value of a product and its trademark,” said U.S. Attorney Tara McGrath. “This case demonstrates the Department of Justice’s commitment to protecting consumers and retailers from fraud.”
The defendants are scheduled to be sentenced November 1, 2024, at 9:30 a.m. before U.S. District Judge Jinsook Ohta.
This case is being prosecuted by Assistant U.S. Attorneys Melanie Pierson and Sarah Akhtar, and Special Assistant U.S. Attorney Lisa Sanniti.
DEFENDANTS Case Number 23cr1356-JO
Marin Morales-Espinoza Age: 63 Calexico, CA
Francisco Alvarado-Ramirez Age: 50 Los Angeles, CA
SUMMARY OF CHARGES
Conspiracy to Traffic in Counterfeit Goods and Labels – Title 18, U.S.C., Section 2320
Trafficking in Counterfeit Labels – Title 18, U.S.C., Section 2320(a)(2)
Trafficking in Counterfeit Goods - Title 18, U.S.C., Section 2320(a)(1)
Maximum penalty: Ten years in prison and $2 million fine
INVESTIGATING AGENCY
Homeland Security Investigations
Jefferson Parish Man Indicted for Receipt of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that HENRY MICHAEL ROBIN (“ROBIN”), age 29, a resident of Jefferson Parish, Louisiana, was indicted today for Receipt of Materials Involving the Sexual Exploitation of Minors, in violation of 18 U.S.C. §§ 2252(a)(2) and (b)(1). ROBIN faces a mandatory minimum term of imprisonment of 5 years up to 20 years imprisonment, a fine of up to $250,000, a term of supervised release of up to three years and a $100 mandatory special assessment fee.
According to a criminal complaint filed in the case, on July 16, 2024, Homeland Security Special Agents executed a search warrant at ROBIN’S residence and found that ROBIN had electronically received and possessed images of a minors engaging in sexually explicit conduct.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Jefferson Parish Sheriff’s Office and the Apache Junction Arizona Police Department. Assistant United States Attorney Mark A. Miller of the Narcotics Unit is in charge of the prosecution.
Illinois Man Sentenced to Ten Years in Federal Prison for Attempting to Transfer Obscene Material to a MinorRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 1, 2024, Terrence E. Fabino (Age: 61) of Lake County, Illinois, was sentenced to serve 120 months in federal prison following his guilty plea to a charge of attempting to transfer obscene material to a minor, in violation of Title 18, United States Code, Section 1470.
According to the court documents, Fabino engaged in online communications with an individual he believed to be a minor located in Northeast Wisconsin. Fabino requested sexually explicit images from the minor and also sent an obscene image of himself taken in a commuter train bathroom to the minor, who was actually an undercover law enforcement officer.
At sentencing, Senior United States District Court Judge William C. Griesbach noted the serious nature of the offense and the need to protect the community, particularly minors, from Fabino’s actions. After serving his prison sentence, Fabino will spend three years on supervised release and will be required to register as a sexual offender under state and federal law.
This case was investigated by the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Human Smuggling Coordinator Sentenced to Six Years in PrisonRead the Press Release
PHOENIX, Ariz. – Jesus Alexandro Sanchez-Armenta, 23, of Phoenix, was sentenced last month by United States District Judge Diane J. Humetewa to 72 months in prison, followed by five years of supervised released. Sanchez-Armenta pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit on February 22, 2024.
Sanchez-Armenta coordinated and/or recruited his co-conspirators, through social media sites, including Snapchat, to pick up undocumented noncitizens (UNCs) in Southern Arizona and to transport them further into the United States for profit. Sanchez-Armenta provided his co-conspirators with instructions on how and where to pick up the UNCs. Either he or another member of the conspiracy would provide the co-conspirators with GPS coordinates for where to pick up the UNCs, and then provided them with transportation routes designed to circumvent detection by law enforcement.
Homeland Security Investigations–Casa Grande and Customs and Border Protection’s United States Border Patrol–Tucson Sector conducted the investigation. Assistant U.S. Attorney Stuart Zander, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-0259-PHX-DJH
RELEASE NUMBER: 2024-106_Sanchez-Armenta# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Houston custom home builder charged with misusing construction fundsRead the Press Release
HOUSTON – A criminal information has been filed against a 39-year-old Houstonian on a charge of wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Brett Michael Detamore is set to make his initial appearance in federal court Aug. 12 at 2 p.m.
According to the information, Detamore operated as a custom home builder under Detamore Development LLC. The charges allege he fraudulently obtained at least $1.5 million for his personal use by misusing funds intended for the construction of private residences.
Detamore allegedly submitted false and fraudulent invoices to banks holding construction loans for single-family residences he had been contracted to build. The false invoices caused the banks to send funds to bank accounts Detamore controlled, according to the allegations. Detamore then allegedly used the funds for his personal benefit.
The charges include a notice of forfeiture for any funds or property obtained as a result of the scheme.
If convicted, Detamore faces up to 20 years in federal prison and a possible $250,000 maximum fine as well as full restitution to the victim home owners.
The FBI conducted the investigation with the assistance of the West University Police Department. Assistant U.S. Attorneys Karen Lansden and Suzanne Elmilady are prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hot Springs Man Sentenced to 20 Years in Federal Prison for Drug TraffickingRead the Press Release
HOT SPRINGS - A Hot Springs man was sentenced yesterday to 240 months in prison followed by five years of supervised release on one count of Possession with the Intent to Distribute of More Than Fifty Grams of Actual Methamphetamine. The Honorable Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court documents, on March 15, 2023, Special Agents with the Drug Enforcement Administration (DEA) and the Hot Springs Police Department, Special Investigations Division, conducted a traffic stop on a vehicle being operated by Stacy Childs, age 33, after Childs delivered fentanyl to another individual. A search of the vehicle yielded a total of 3,416.15 grams, or approximately 7.53 pounds, of pure methamphetamine, the bulk of which was concealed in a compartment underneath the center console of the vehicle. Childs was arrested on a Federal Complaint and later indicted by a Grand Jury seated in the Western District of Arkansas.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration and the Hot Springs Police Department, Special Investigations Division, investigated the case.
Assistant U.S. Attorney Bryan Achorn prosecuted the case.
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.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – WILLIAM LEONELL LOPEZ (“LOPEZ”), age 37, a native of Honduras, was sentenced on August 1, 2024, after previously pleading guilty to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans. He was sentenced to time served. He had been incarcerated since September of 2023.
According to court documents, Jefferson Parish Sheriff’s Office (“JPSO”) detectives provided biographical information for LOPEZ to Immigration and Customs Enforcement (ICE). Specifically, JPSO detectives provided the name, date of birth, and a picture of LOPEZ, enabling ICE to verify that he is Honduran, who had been previously removed from the United States to Honduras on June 19, 2009. On September 5, 2023, LOPEZ was arrested in River Ridge, LA.
Extensive database checks indicated that LOPEZ re-entered the United States without permission, inspection, or parole by an immigration officer and without the express consent of the United States Attorney General or the Secretary of the Department of Homeland Security for readmission to the United States and was encountered in the Eastern District of Louisiana by law enforcement.
U.S. Attorney Evans praised the work of the Jefferson Parish Sheriff’s Office and the Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Great Falls woman sentenced to prison for embezzling from employerRead the Press Release
MISSOULA — A woman who admitted embezzling money from her employer, a tire and service center in Vaughn, was sentenced on Thursday to 10 months in federal prison and ordered to pay $95,001 restitution, U.S. Attorney Jesse Laslovich said today.
The defendant, Jennifer Sue Whiteford, 48, pleaded guilty in March to wire fraud.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that Whiteford worked as a bookkeeper for Darryl’s Tire and Service Center, located near Vaughn. From about 2017 and continuing through June 2022, Whiteford stole money from the business to pay for personal expenses without DTSC’s authorization. Whiteford wrote checks to herself from the business accounts and then changed the names of the payees in the accounting software to make it look like the embezzled funds were going to pay legitimate business expenses. In addition, Whiteford skimmed cash deposits from the company by taking cash that was supposed to be deposited into DTSC’s bank account and instead deposited the cash into her personal account. In total, Whiteford embezzled between $88,000 and $139,000 from the company.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Former nurse practitioner in Butte admits health care fraud; received nearly $600,000 in false claimsRead the Press Release
MISSOULA — A former nurse practitioner in Butte admitted on Thursday to prescribing controlled substances despite having a suspended license and to falsely billing an insurance company approximately $61 million for vitamin B-12 injections in which she received nearly $600,000 for the false claims, U.S. Attorney Jesse Laslovich said today.
The defendant, Tristan Ashley Svejkovsky, 40, pleaded guilty to health care fraud and to use of a registration number issued to another person. Svejkovsky faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the health care fraud charge and a maximum of four years in prison, a $250,000 fine and one year of supervised release on the charge of using the registration of another person.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Dec. 12 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Svejkovsky was released pending further proceedings.
The government alleged in court documents that Svejkovsky was a nurse practitioner whose license was suspended by the Montana Board of Nursing on April 1, 2022. Svejkovsky continued to prescribe controlled substances using her own name and Drug Enforcement Administration registration number until June 8, 2022. The DEA contacted Svejkovsky through her attorney, and she agreed to voluntarily surrender her DEA registration. However, Svejkovsky continued to prescribe controlled substances using the name and DEA registration number of a friend who also was nurse practitioner. Svejkovsky misrepresented to her friend that her nursing license was on probation, not suspended, and that she would not use her friend’s information to prescribe drugs. In fact, Svejkovsky used her friend’s name and DEA registration number for at least 12 prescriptions of controlled substances.
The government further alleged that Svejkovsky billed Blue Cross Blue Shield of Montana for vitamin B-12 injections that did not occur. In August 2021, Svejkovsky started falsely increasing the number of units of a standard vitamin B-12 injection from one unit to 1,000 units. This increased the corresponding payment from the insurance company for each injection from roughly $4.88 to $4,880. After her license was suspended, Svejkovsky started submitting numerous such claims each month to Blue Cross Blue Shield of Montana by backdating claims to supposedly before her license was suspended. This conduct continued through May 2022, when Svejkovsky submitted four claims, this time claiming $15 million per vitamin B-12 injection to a new patient. Svejkovsky never gave that patient any vitamin injections, and Blue Cross Blue Shield of Montana did not pay those claims. In total, Svejkovsky billed the insurance company at least $61,995,000 for false vitamin B-12 injections and received at least $593,583 from those false claims.
The U.S. Attorney’s Office is prosecuting the case. The DEA and FBI conducted the investigation.
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Former Union President Sent to Federal Prison for EmbezzlementRead the Press Release
A former union president who misspent over $30,000 in union funds was sentenced on July 25, 2024, to eight months in federal prison. Brock A. Willson, also known as Brock A. Cligrow, age 43, received the prison term after a January 25, 2024, guilty plea to one count of bank fraud.
In a plea agreement and at hearings in the case, it was established that, from no later than about March 2020, and continuing through at least October 2021, Willson served in various capacities as a local labor union’s president, business manager/financial secretary, and coordinator of its joint apprenticeship training committee. By virtue of his high-level positions within the union, Willson had access to its bank accounts. From the bank accounts, the labor organization entrusted defendant with making authorized payments for certain authorized expenses, including its training committee. Willson abused his position of trust at the union to cause the local bank to make payments for his own personal expenses, including but not limited to payments on his personal vehicle loan and purchases at department stores. Willson ultimately agreed to repay over $30,000 in misspent union funds.
Willson has a criminal history, including a prior felony conviction for serious injury by vehicle and reckless driving. While on pretrial release, federal probation officers found a firearm and ammunition in the residence in which Willson was residing at the time. Willson was jailed for over a month because of that incident in late 2023.
Willson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Willson was sentenced to 8 months’ imprisonment. He was ordered to make $30,280.98 in restitution to the labor union and its insurer.
Willson must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
“While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur. When they do, it is the union and its members that are the victims. Brock Willson embezzled funds from a local union that should have been used for its members’ benefit,” said Christiane Abendroth, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”
United States Attorney Timothy Duax stated, “We appreciate the hard work done by OLMS in helping hold Mr. Willson accountable for his crime. Willson took advantage of the people he was supposed to serve. There is a price to be paid for such conduct, and Mr. Willson will pay that price while in prison.”
Willson was released on the bond previously set and is to surrender to the Bureau of Prisons at a date yet to be set. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the U.S. Department of Labor, Office of Labor-Management Standards. The Mount Vernon-Lisbon Police Department also assisted in the investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-67.
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Former Gladwyne Entrepreneur Charged with Bilking Investors Out of Millions of Dollars, Forging Documents, and Obstructing JusticeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that an indictment was unsealed against Josh S. Verne, 47, formerly of Gladwyne, PA, now a resident of Fort Lauderdale, FL, charging him with 28 separate federal crimes, including securities fraud, wire fraud, aggravated identity theft, witness retaliation, and witness intimidation.
According to the indictment, Verne carried out a series of schemes from at least in or about 2017 to 2020, through which he defrauded dozens of investors, prospective investors, employees, and business partners out of millions of dollars, forged documents, and obstructed justice by threatening, intimidating, and retaliating against others in connection with the federal criminal investigation.
The indictment alleges that Verne held himself out as a wealthy and successful businessman, entrepreneur, and investor, and that he carried out his fraudulent activities through a series of limited liability companies, of which he was the chief executive and over which he maintained control. It is alleged that, among other things, Verne falsely represented his prior business successes, falsely represented his personal net worth, falsely represented his own investments, and falsely represented the financial health of his companies and investments, in order to induce others to invest in or provide loans to him or his companies. For instance, according to the indictment, Verne provided an investor with a forged Goldman Sachs statement that showed family investment holdings for Verne of more than $50 million, when, in fact, Verne did not have an investment account at Goldman Sachs in his own name or in his family’s names, much less an account with a market value of more than $50 million.
It is further alleged that Verne misused business and investor funds to repay prior debts and to finance an affluent lifestyle he could not afford, such as personal expenses related to renovations to his showcase vacation property on the Jersey shore, travel on private jets, contributions to political candidates, personal charitable contributions, and country club payments. According to the indictment, in order to delay and prevent discovery by law enforcement of his own misconduct, Verne later sent bank and FedEx confirmations purporting to confirm delivery of funds to investors to whom he had promised repayment; the bank and FedEx confirmations were false and fraudulent.
The indictment further alleges that Verne stole the identity of a former employee from his company, forging the employee’s signature on a sales agreement to disguise an unauthorized sale of the employee’s shares of stock. According to the indictment, Verne obtained $150,000 from the unauthorized sale and used those funds to make payments to himself and to a prior investor.
Finally, the indictment alleges that, after Verne met with the Federal Bureau of Investigation and learned details about the investigation, Verne obstructed justice by contacting the former employee and threatening to divulge false, embarrassing information about him because the employee provided information to law enforcement.
Verne was arrested today in Fort Lauderdale. He is expected to appear in federal court in Philadelphia next week for an arraignment.
If convicted, the defendant faces a maximum possible sentence of 532 years in prison (including a mandatory minimum of two years in prison to run consecutively to any other term of imprisonment), three years of supervised release, a $21,250,000 fine, and a $2,800 special assessment.
If you, your family member, or anyone that you know believes they may have been a victim of these crimes and would like to report the information, please contact the Federal Bureau of Investigation at 215-418-4000 and reference “Josh S. Verne.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Jerome M. Maiatico. The Securities and Exchange Commission’s Philadelphia Regional Office investigated civil securities fraud charges against Verne, which are pending.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Des Peres Alderman Sentenced to 5 Years of Probation, Ordered to Repay $292,000 for EmbezzlementRead the Press Release
ST. LOUIS – A former alderman in Des Peres, Missouri was sentenced on Thursday to five years of probation and ordered to repay $292,305 that he embezzled from clients.
John Pound, 81, pleaded guilty in March in U.S. District Court in St. Louis to three counts of wire fraud. Pound admitted that from 2010 through June 30, 2020, he embezzled from two clients of his real estate management company, Commercial Realty Management Inc.
Pound’s company provided real estate management services to the owners of a commercial property on North Euclid Avenue in the Central West End neighborhood of St. Louis, Missouri. Pound maintained bank accounts and paid bills on behalf of the owners. But he took significantly larger management fees, kept larger commissions and charged higher hourly rates than he was authorized to take. Pound prepared annual budgets which misrepresented the monthly management fee and concealed the inflated fees he was collecting. From 2006 through June 30, 2020, Pound paid himself $220,000 in commission payments that he had not legitimately earned. From Jan. 1, 2015, through Dec. 31, 2019, Pound made about 132 entries in QuickBooks falsely identifying a third-party payee when the money went to Pound.
Pound resigned from his elected position as an alderman in Des Peres, Missouri after his guilty plea.
The FBI investigated the case. Assistant U.S. Attorney Gwen Carroll prosecuted the case.
Former Boston Police Sergeant Sentenced for Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police Sergeant was sentenced yesterday in federal court in Boston in connection with an investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Gerard O’Brien, 66, of Braintree, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years of supervised release with six months to be served in home detention. O’Brien was also ordered to pay $25,930 in restitution and a $5,000 fine. In June 2021, O’Brien pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds.
From at least December 2016 through February 2019, O’Brien submitted false and fraudulent overtime slips for overtime shifts that he did not work at the evidence warehouse. The “purge” overtime was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. “Kiosk” overtime involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, O’Brien claimed to have worked from 4 – 8 p.m., but he and other members of the unit, routinely left at 6 p.m., or earlier. For the “kiosk” shift, O’Brien submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and other members of the unit, only worked three-to-four hours of those shifts. As a supervisor, O’Brien endorsed fraudulent overtime slips submitted by the officers at the warehouse for those shifts.
Between December 2016 and February 2019, O’Brien personally collected approximately $25,930 for overtime hours he did not work.
To date, over a dozen Boston Police officers have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. O’Brien is the seventh officer to be sentenced.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
Acting United States Attorney Joshua S. Levy; Jodi Cohan, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Russell W. Cunningham Special Agent in Charge of the Department of Justice Office of the Inspector General Mid-Atlantic Region made the announcement today. Assistant U.S. Attorney Mark Grady of the Criminal Division prosecuted the case.
Foreign national sentenced for transporting over 15 kilograms of cocaine from Texas to VirginiaRead the Press Release
RICHMOND, Va. – A Mexican national was sentenced today to four years and four months in prison for possession with intent to distribute cocaine.
According to court documents, on Nov. 15, 2023, Jesus Alejandro Ibarra-Morales, 30, had crossed into the United States at the Veteran's International Bridge-Los Tomates Port of Entry at Matamoros, Tamaulipas, and Brownsville, Texas, using his border crossing card, and driving a Chevrolet Suburban with Mexico license plates. Ibarra-Morales then picked up two car dollies, the axles of which were packed with 15 bricks of cocaine, with a total weight of over 15 kilograms.
Law enforcement agents received information that a shipment of narcotics was being transported from Texas to Richmond, Virginia, and on Nov. 27, 2023, agents learned that the Suburban was near the drop location in Richmond. Agents stopped the vehicle and identified Ibarra-Morales as the driver. A drug detection canine alerted to the presence of illegal controlled substances on the car dollies and a search of the axles resulted in the recovery of the cocaine.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-24.
Florida Man Sentenced to More Than Three Years in Prison for Defrauding Biochemical Company and Diverting Products to China Using Falsified Export DocumentsRead the Press Release
A Taiwanese national, Pen Yu, 51, was sentenced today to three years and eight months in prison, followed by three years of supervised release, for conspiracy to commit wire fraud. As part of his sentence, the court also entered an order of forfeiture in the amount of $100,000, the proceeds of the wire fraud.
Yu pleaded guilty on May 2. Co-conspirator Gregory Muñoz pleaded guilty on May 9, and co-conspirator Jonathan Thyng pleaded guilty on July 23.
According to court documents, beginning in at least July 2016 and continuing through at least May 2023, Yu ordered biochemical products from MilliporeSigma, a subsidiary of multinational science and technology company Merck KGaA, Darmstadt, Germany, with help from Muñoz, a MilliporeSigma salesperson, by falsely representing that Yu was affiliated with a biology research lab at a large Florida university. This fictitious affiliation led MilliporeSigma to provide Yu over $4.9 million worth of discounts and other benefits, such as free overnight shipping, not available to the public. Yu gave Muñoz thousands of dollars in gift cards for facilitating these fraudulent discounted orders. When the products arrived at the university stockroom, a stockroom employee diverted the products to Yu, who repackaged them and shipped them to China. To avoid scrutiny, Yu made false statements about the value and contents of these shipments in export documents.
This scheme continued until MilliporeSigma compliance personnel identified certain orders as suspicious, prompting the company to retain outside counsel who voluntarily disclosed the misconduct to the Department of Justice’s National Security Division only a week later. MilliporeSigma made the disclosure well before its counsel had completed their investigation and understood the full nature and extent of the scheme. MilliporeSigma offered exceptional cooperation to the prosecution team, including by proactively identifying and producing documents to the Department that established probable cause to search residences and electronic devices of culpable individuals. MilliporeSigma’s cooperation allowed investigators to quickly identify the individuals responsible for the scheme, including Yu, Muñoz and Thyng, and secure their felony guilty pleas.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Special Agent in Charge John Johnson for the Department of Commerce Bureau of Industry Security (BIS) Miami Field Office and Colonel Kelly Frushour of the Marine Corps Embassy Security Group.
The Defense Criminal Investigative Service, BIS and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida and Trial Attorney Garrett Coyle of the National Security Division's Counterintelligence and Export Control Section are prosecuting the cases.
Five-Year Sentence for District Man Who Used a Firearm During a Drug Crime While He Was Under Investigation for a StabbingRead the Press Release
WASHINGTON – Darnell Lamont Savoy, 25, of Washington, D.C., was sentenced today today to 60 months in prison for possessing a firearm in furtherance of a drug trafficking offense, which was revealed during the investigation into an October 2022 stabbing. The stabbing occurred while Savoy was on pre-trial release -- over the federal government’s written and oral objections -- in connection with the December 2018 shooting of a 14-year-old boy in Northeast.
The sentence was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Savoy pleaded guilty on April 17, 2024, to use of a firearm in furtherance of a drug trafficking offense before U.S. District Court Judge Timothy J. Kelly. In addition to the five-year prison sentence, Judge Kelly today ordered Savoy to serve four years of supervised release.
Despite the federal government’s written and oral objections, in 2021, Savoy was released from custody while awaiting trial in Superior Court on charges of assault with intent to kill while armed and related offenses stemming from the 2018 shooting.
According to court documents, months later, on October 11, 2022, Savoy allegedly stabbed a person during an argument and fled the scene. Investigators tracked Savoy to the 3900 block of Southern Avenue, SE. On the morning of October 21, 2022, MPD officers and FBI agents executed a search warrant at an apartment unit where Savoy was staying with a woman and a 3-year-old child. During the search, law enforcement found a plastic bag containing 4.55 grams of an off-white powder, a digital scale with white powder residue, a red cut straw with white powder residue, and a two-pack of naloxone. The powder and the residues tested positive for fentanyl.
In a blue jacket that contained Savoy’s ID and credit card, investigators discovered 27 zip baggies with an off-white powder weighing a total of 7.3 grams, 29 blue pills stamped M30, 16 red zip baggies containing an off-white powder weighing nearly 5 grams, and $473 in U.S. currency. The powders tested positive for fentanyl.
In a hall closet, on top of a dryer, officers discovered a loaded, unregistered, semi-automatic Glock 30, loaded with 24 rounds of .45 caliber ammunition. DNA testing linked Savoy to the firearm. The fentanyl recovered during the search warrant was found in a common area of the apartment that the three-year-old had access to, which could have led to the death or serious injury of the child.
On March 29, 2024, Savoy and two co-defendants -- Jamal Matthews and Stefon Freshley -- pleaded guilty in Superior Court to their roles in the December 28, 2018, shooting of a father and son in the Clay Terrace neighborhood. Savoy was driving as Matthews fired 30 shots into an SUV in which the father and son were sitting. The boy was shot nine times, including in the head, abdomen, chest, and back. The father sustained gunshot wounds to his leg and hand. The three men are scheduled to be sentenced for those offenses on August 30.
The federal case is being investigated by the FBI Washington Field Office and the Metropolitan Police Department and is being prosecuted by Assistant U.S. Attorney Alicia Long and Special Assistant U.S. Attorney Adam Stempel. Valuable assistance was provided by Assistant U.S. Attorney William G. Hart and former Special Assistant U.S. Attorney Sarah J. Rasalam.
The shooting of the boy and his father was investigated by the Metropolitan Police Department, FBI and the U.S. Attorney’s Office. It is being prosecuted by Assistant U.S. Attorneys Kimberley Nielsen and Sharon Donovan.
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Five U.S.-Based Defendants Charged with Money-Laundering Conspiracy That Facilitated Foreign Sextortion SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the unsealing of a federal indictment charging five U.S.-based defendants with conspiring to commit money laundering that facilitated the previously announced foreign sextortion scheme resulting in the death of Jordan DeMay, a 17-year-old high school student from Marquette, Michigan.
“Every day Americans fall victim to financial scams, including sextortion, romance scams, and consumer fraud,” said U.S. Attorney Mark Totten. “Senior citizens, children, and teenagers are especially vulnerable. The result of these crimes can be devastating, as the death of Jordan DeMay makes painfully clear. Today’s charges send a loud and clear message that we will chase down everyone who enables these crimes, including the U.S.-based money launderers.”
In November 2022, the U.S. Attorney’s Office for the Western District of Michigan charged three Nigerian nationals in a sextortion scheme that resulted in the death of Jordan DeMay, a 17-year-old high school student from Marquette, Michigan, and targeted more than 100 other victims. Two of the three defendants in that case were extradited to the United States in August 2023 and pled guilty in April 2024.
The indictment announced today is a separate-but-related case that charges the following five U.S.-based defendants with a single count of Conspiracy to Commit Money Laundering:
- Johnathan Demetrius Green, 32, Stone Mountain, Georgia
- Jarell Daivon Williams, 31, McDonough, Georgia
- Dinsimore Guyton Robinson, 30, Huntsville, Alabama
- Kendall Ormond London, Jr., 32, Lithonia, Georgia
- Brian Keith Coldmon, Jr., 30, Stone Mountain, Georgia.
Money laundering is a federal crime that covers financial transactions involving the proceeds of criminal activity, where the goal is often to conceal the criminal nature of those proceeds. The government alleges that the defendants knowingly agreed to conduct, or attempt to conduct, financial transactions involving the proceeds of a crime, knowing that the transactions were designed to conceal some aspect of the underlying crime. The charge in this case carries a maximum sentence of 20 years.
As Samuel and Samson Ogoshi have admitted in their plea agreements, the Nigerian-based sextortionists devised a fraudulent scheme where they pretended to be a young woman in social media accounts and encouraged teenage boys and young men to engage in sexually explicit conduct and produce images of that conduct. Once the victims produced and sent those images, the sextortionists used those images to blackmail their victims for money, threatening to send the images to others, including families, friends, and classmates of the victims. The sextortionists instructed their victims to send money to designated financial accounts through various cash applications.
The indictment in today’s related case alleges that the defendants – the U.S.-based money launderers – controlled these designated financial accounts. They would keep a portion of the victims’ funds – typically 20% – and then convert the rest into bitcoin. The defendants would then send the bitcoin to an unindicted Nigerian co-conspirator, whom they referred to as “The Plug.” The Plug would keep a portion of the bitcoin funds, and send the remainder to Samuel Ogoshi, Samson Ogoshi, Ezekiel Robert, and other sextortionists. The indictment alleges that the U.S.-based defendants laundered at least $178,658 in funds representing the proceeds of the sextortion scheme.
Among these alleged financial transactions conducted by the U.S-based defendants was a transaction that involved an individual identified as “Victim 1” in the indictment. With the permission of his parents, the U.S. Attorney’s Office is sharing that Victim 1 was Jordan DeMay. On March 25, 2022, Jordan DeMay sent $300 through a cash application to Defendant Johnathan Green. Green transferred a portion of those funds into another cash application and purchased bitcoin, which he sent to the Plug. The Plug kept a portion of those funds and sent the remainder to the sextortionists.
FBI arrested the defendants on Thursday, August 1, 2024 and each defendant appeared in federal court yesterday for their initial appearance. We anticipate these defendants will be scheduled for an arraignment in Grand Rapids before Judge Jonker in the coming weeks.
“The five defendants who allegedly conspired to aid Nigerian sextortionists through money laundering participated in the financial manipulation of vulnerable and young victims,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI continues to spread awareness about financial sextortion and will continue to work with our partners at the Economic and Financial Crimes Commission of Nigeria and the U.S. Attorney's Office.”
In the related case, United States v. Samuel Ogoshi et al., the Court is scheduled to sentence Samuel Ogoshi, 22, and Samson Ogoshi, 20, of Lagos, Nigeria at the federal courthouse in Marquette, Michigan, on September 5, 2024. The details of the sentencing, including live access to the audio by Zoom or a video of the proceeding at the federal courthouse in Grand Rapids, are provided in the attached Notice filed by the Court.
The FBI is investigating this case and AUSA Davin Reust is prosecuting it.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Green Et Al. - IndictmentFinal defendant arrested in 41-person drug trafficking scheme enters guilty pleaRead the Press Release
Seattle – The final defendant of 41 arrested in an extensive drug trafficking investigation, pleaded guilty today in U.S. District Court in Seattle to possession of fentanyl with intent to distribute and unlawfully possessing a firearm, announced U.S. Attorney Tessa M. Gorman. Kendle Rashen Hawkins, 34, of Goodyear, Arizona, will be sentenced by U.S. District Judge Ricardo S. Martinez on November 8, 2024. Because of the quantity of drugs involved, Hawkins faces a mandatory minimum sentence of 10 years in prison.
According to records filed in the case, Hawkins was identified as a participant in the drug trafficking ring who brought large quantities of controlled substances—which he concealed in compartments in rental vehicles—from Phoenix to Seattle. Law enforcement obtained a search warrant to track his cell phone and saw the phone traveling from Phoenix to Sacramento and then up Interstate 5 towards Seattle. Using the location data, investigators were able to locate Hawkins as he came into Washington State as a passenger in a car he rented. Agents had the car stopped for speeding in Lewis County. After a drug detection dog alerted to the presence of drugs in the car, agents obtained a warrant to search it. Inside the vehicle, they found about 50,000 fentanyl pills weighing more than 4.8 kilograms, five firearms, two silencers, and a high-capacity drum magazine. Each of the firearms was purchased in Arizona within the previous two weeks by a man later prosecuted in Arizona for dealing firearms without a license.
The arrest of Hawkins came midway through a larger investigation into drug trafficking in the Seattle region. This joint investigation by the FBI and the Seattle Police Department resulted in charges against 41 individuals, most of whom were arrested in a takedown in April 2021 or another in June 2021.
Over more than two years of the investigation, law enforcement seized 121 firearms, including stolen firearms and ghost guns; more than 16 kilograms of cocaine; more than 5.5 kilograms of fentanyl; nearly 1.5 kilograms of methamphetamine; and smaller quantities of heroin, MDMA, oxycodone, and other pills. Investigators also seized hundreds of marijuana plants from an illegal grow operation and hundreds of kilograms of marijuana that were being illegally processed and distributed.
In addition to the drugs, investigators seized nearly $1 million in cash that was proceeds from drug trafficking, a pill press used for manufacturing counterfeit pills, dozens of firearm magazines, and innumerable rounds of ammunition, and six sets of body armor.
The sentences for those indicted in this case range from time served to more than eight years in prison.
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 www.justice.gov/OCDETF.
The investigation was led by the FBI Safe Streets Task Force with key participation by the Drug Enforcement Administration (DEA), Seattle Police Gang and Narcotics Units, Homeland Security Investigations (HSI), and Internal Revenue Service Criminal Investigations (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Lyndsie Schmalz.
Felon Sentenced to 63 Months for Illegally Possessing AmmunitionRead the Press Release
ALBANY, NEW YORK – Derbie Michel, age 33, formerly of Troy, New York, was sentenced today to 63 months in prison for illegally possessing ammunition as a convicted felon.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
In previously pleading guilty, Michel, who has three prior felony convictions, admitted that he possessed five rounds of ammunition on October 15, 2022. According to court documents filed by the Government, Michel threw these rounds of ammunition from a car while fleeing from members of the Troy Police Department on October 15, 2022. He also threw a privately made firearm, or “ghost gun,” from the car during the same pursuit.
In imposing the sentence, Senior United States District Judge Frederick J. Scullin, Jr. found that Michel recklessly endangered others by instructing the driver of the car to engage in the car chase and later obstructed justice by making materially false statements about that conduct in connection with his sentencing. Judge Scullin also ordered Michel to serve a 3-year term of supervised release upon Michel’s release from prison.
The FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of state and local law enforcement agencies, including the Troy Police Department, investigated the case. The U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) assisted in the investigation. Assistant U.S. Attorneys Joshua R. Rosenthal and Allen J. Vickey prosecuted the case.
Federal Court Permanently Prohibits Ohio Physician from Prescribing Opioids and Imposes $4.7M Judgment for Alleged Unlawful Opioid DistributionRead the Press Release
A federal court prohibited a Sandusky, Ohio-area physician from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act (CSA) and the False Claims Act (FCA).
In a civil complaint filed in August 2018, the United States alleged that Dr. Gregory Gerber, MD, who operated an office in Sandusky, unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances in violation of the CSA and the FCA. The complaint alleged that one patient died from an overdose of fentanyl patches prescribed by Gerber. The complaint further alleged that Gerber received kickback payments from a drug manufacturer as part of a scheme to unlawfully prescribe Subsys, a powerful opioid drug containing fentanyl, in violation of the FCA.
“Medical professionals who knowingly facilitate the abuse of opioids violate their legal obligations,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will pursue justice against anyone who seeks to profit from unlawfully prescribing opioids.”
“All doctors must follow the law when prescribing opioids — their patients, and the public more generally, rely on such compliance,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Gerber’s patients trusted him. But instead of safeguarding that trust, Gerber accepted payments from a drug company in exchange for prescribing dangerous, addictive drugs and wrote thousands of prescriptions that were not for a legitimate medical purpose. Our office will use all available tools — civil and criminal — to fight the opioid epidemic and protect patients and their families so that doctors like Gerber do not profit from abusing our healthcare system.”
“Dr. Gerber betrayed the trust placed in him and willfully violated his oath to protect the public and the provisions of the Controlled Substance Act,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA)'s Detroit Field Division. “His reckless behavior contributed to the opioid crisis gripping the nation and brought suffering to many communities in northern Ohio. This ruling will hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.”
“Health care professionals who exploit opioid addiction for financial gain do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic,” said Deputy Inspector General Christian J. Schrank of Investigations of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to work to ensure that bad actors are held accountable for such schemes in order to protect both patients and taxpayers.”
“Ignoring the law by distributing prescriptions to opioids for illicit profit harms the communities that physicians are meant to help,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI is glad that Gerber will not be able to prescribe controlled substances ever again.”
Gerber agreed to a consent judgment to settle the allegations in the complaint. The order entered by the court permanently prohibits Gerber from prescribing opioids or other controlled substances, permanently prohibits him from managing, owning or controlling any entity that dispenses controlled substances and requires Gerber to pay approximately $4.7 million under the FCA. Gerber was also sentenced in March to 42 months in prison and one year of home confinement in a related criminal case brought by the United States Attorney’s Office.
U.S. District Judge Jeffrey J. Helmick entered the judgment and permanent injunction in U.S. District Court for the Northern District of Ohio. In August 2018, Judge Helmick issued a temporary restraining order and preliminary injunction prohibiting Gerber from prescribing opioids or other controlled substances.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy and State Medical Board of Ohio investigated the case.
Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch handled the case.
The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial.
Consent DecreeFederal Court Permanently Prohibits Ohio Physician from Prescribing Opioids and Imposes $4.7M Judgment for Alleged Unlawful Opioid DistributionRead the Press Release
CLEVELAND – A federal court prohibited a Sandusky, Ohio-area physician from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act (CSA) and the False Claims Act (FCA).
In a civil complaint filed in August 2018, the United States alleged that Gregory Gerber, MD, age 59, of Port Clinton, Ohio, who operated an office in Sandusky, unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances in violation of the CSA and the FCA. The complaint alleged that one patient died from an overdose of fentanyl patches prescribed by Gerber. The complaint further alleged that Gerber received kickback payments from a drug manufacturer as part of a scheme to unlawfully prescribe Subsys, a powerful opioid drug containing fentanyl, in violation of the FCA.
“Medical professionals who knowingly facilitate the abuse of opioids violate their legal obligations,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will pursue justice against anyone who seeks to profit from unlawfully prescribing opioids.”
“All doctors must follow the law when prescribing opioids — their patients, and the public more generally, rely on such compliance,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Gerber’s patients trusted him. But instead of safeguarding that trust, Gerber accepted payments from a drug company in exchange for prescribing dangerous, addictive drugs and wrote thousands of prescriptions that were not for a legitimate medical purpose. Our office will use all available tools — civil and criminal — to fight the opioid epidemic and protect patients and their families so that doctors like Gerber do not profit from abusing our healthcare system.”
“Dr. Gerber betrayed the trust placed in him and willfully violated his oath to protect the public and the provisions of the Controlled Substance Act,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA)’s Detroit Field Division. “His reckless behavior contributed to the opioid crisis gripping the nation and brought suffering to many communities in northern Ohio. This ruling will hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.”
“Health care professionals who exploit opioid addiction for financial gain do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic,” said Deputy Inspector General Christian J. Schrank of Investigations of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to work to ensure that bad actors are held accountable for such schemes in order to protect both patients and taxpayers.”
“Ignoring the law by distributing prescriptions to opioids for illicit profit harms the communities that physicians are meant to help,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI is glad that Gerber will not be able to prescribe controlled substances ever again.”
Gerber agreed to a consent judgment to settle the allegations in the complaint. The order entered by the court permanently prohibits Gerber from prescribing opioids or other controlled substances, permanently prohibits him from managing, owning or controlling any entity that dispenses controlled substances and requires Gerber to pay approximately $4.7 million under the FCA. Gerber was also sentenced in March to 42 months in prison and one year of home confinement in a related criminal case brought by the United States Attorney’s Office for the Northern District of Ohio.
U.S. District Judge Jeffrey J. Helmick entered the judgment and permanent injunction in U.S. District Court for the Northern District of Ohio. In August 2018, Judge Helmick issued a temporary restraining order and preliminary injunction prohibiting Gerber from prescribing opioids or other controlled substances.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy and State Medical Board of Ohio investigated the case.
Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch handled the case.
The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial.
View Consent Decree
Fayetteville Crip Gangster Sentenced to Prison for Illegal Firearm PossessionRead the Press Release
RALEIGH, N.C. – A Fayetteville Crip gang member was sentenced to 77 months in prison for possession of a firearm by a felon after being found with several guns. On November 29, 2023, Demarco McLucas, age 22, pled guilty to the charge.
According to court documents and other information presented in court, on February 22, 2023, detectives with the Fayetteville Police Department (FPD) located McLucas at a Fayetteville residence to serve an outstanding warrant. When they arrived, they found McLucas in the residence and a subsequent search of the property resulted in the seizure of a stolen, loaded, .40 caliber handgun with a high-capacity magazine, two other loaded, high-capacity magazines, additional ammunition, marijuana, cocaine, and drug packaging material. They also found photos and videos of McLucas holding several guns, including an AR-15 style rifle with a high-capacity magazine and other firearms with suspected machine gun conversion devices. A handgun in his possession was linked by NIBIN testing to shell casings found at several shooting crime scenes in the Fayetteville area.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorneys Bryan Stephany and Jermaine Sellers prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-206-BO-RJ-1.
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Dothan Man Sentenced to 120 Months in Federal Prison Following Federal Gun ConvictionRead the Press Release
Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced that Tarrence Lee Wright, 33, from Dothan, Alabama, received a sentence of 120 months in prison after pleading guilty to being a felon in possession of a firearm. There is no parole in the federal system. The sentencing occurred on July 31, 2024.
According to the federal indictment and other court records, on July 24, 2023, law enforcement conducted a welfare check at a Dothan residence. No one responded when the officers initially knocked on the door. Eventually, law enforcement found Wright inside the home. Wright had a handgun with him. Wright has a previous felony conviction and is prohibited by federal law from possessing a firearm or ammunition. Officers also witnessed signs of potential domestic violence against a female victim.
The Dothan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case, which Assistant United States Attorneys Joel H. Feil and Justin L. Jones prosecuted.
Deputy Assistant Attorney General Michael Kades Statement After Airline Group IAG Abandons Acquisition of Air EuropaRead the Press Release
The Justice Department issued the following statement from Deputy Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division after International Consolidated Airlines Group S.A. (IAG) announced that it would abandon its proposed acquisition of sole control of Air Europa Holding S.L. (Air Europa):
“The Antitrust Division is committed to protecting competition in the airlines industry. As a result of this abandonment, travelers between the United States and Europe will benefit from an industry rivalry that lowers prices, boosts quality and promotes choice. I am grateful to our enforcement partner, the European Commission, for its close and constructive collaboration with our staff on this important matter to safeguard competition.”
IAG, headquartered in the United Kingdom, is the parent company of Iberian, Vueling and British Airways, among other air carriers. Air Europa is headquartered in Spain.