Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 31 May 2024
Justice Department Expands Efforts to Dismantle Human Smuggling Operations and Support Immigration ProsecutionsRead the Press Release
Ahead of the third anniversary of the establishment of Joint Task Force Alpha (JTFA), the Justice Department today announced additional efforts to dismantle human smuggling operations and increase accountability for those who violate our immigration laws. Launched in June 2021 by Attorney General Merrick B. Garland and Secretary of Homeland Security Alejandro N. Mayorkas, JTFA represents a partnership between the Justice Department and the Department of Homeland Security (DHS) with a mandate to disrupt and dismantle human smuggling and trafficking organizations operating in and through Guatemala, Honduras, El Salvador, and Mexico. To build on the success of JTFA, including an increase of more than 25% in defendants charged with alien smuggling since 2020, the Justice Department is realigning resources, providing financial incentives, and proposing increased penalties for human smuggling offenses.
The Justice Department also is coordinating with border U.S. Attorneys and their districts, as well as with the Department of Homeland Security (DHS) and other law enforcement agencies, to evaluate current needs and resource allocations, and to identify available and potentially new opportunities to address immigration issues.
Prioritizing Prosecutions Involving Smugglers
The Justice Department will continue to prioritize the prosecution of cases involving human smuggling, working through JTFA — which is led by the Criminal Division’s Human Rights and Special Prosecutions Section — and the efforts of individual U.S. Attorneys’ Offices and their law enforcement partners.
Felony prosecutions for smuggling have been on an upward trajectory, increasing by 27% since 2020. These cases are significant. -They include human smuggling of both vulnerable populations and individuals who pose security concerns, as well as unlawful transportation of assets and contraband, high-speed flight from law enforcement and possession of firearms by smuggling defendants. Focusing on felony smuggling prosecutions creates a deterrent effect, not only impacting the defendant but creating a ripple effect that discourages future smuggling. Additional smuggling prosecutions will target known routes utilized and controlled by cartels and other organized criminal groups.
JTFA will continue to focus on the highest-level human smugglers — the worst of the worst. Since its creation in June 2021, JTFA has achieved significant tangible results, including:
- Over 300 arrests, including of leaders, organizers, and significant facilitators;
- Over 240 U.S. convictions;
- Over 170 U.S. defendants sentenced, with significant sentences of 30 years or more in prison;
- Substantial seizures and forfeiture of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs; and
- Multiple indictments and successful extradition requests against foreign leadership targets located in Guatemala, Mexico, and Honduras.
Just this week, the leader of a migrant smuggling organization was sentenced to 10 years in prison for her role in smuggling over 100 migrants from Honduras to the United States for profit.
Using Financial Rewards to Dismantle the Leadership of Transnational Human Smuggling Networks
The Justice Department and Department of State are launching an Anti-Smuggling Rewards (ASR) Initiative designed to dismantle the leadership of human smuggling organizations that bring migrants through Central America and across the southern U.S. border. The ASR Initiative will use existing statutory authority — through the State Department’s Transnational Organized Crime Rewards Program — to offer financial rewards for information leading to the identification, location, arrest, or conviction of those most responsible for significant human smuggling activities in the region.
The ASR Initiative will target categories of high-priority human smuggling targets, such as:
- Leaders of certain identified cartels and other transnational organizations responsible for human smuggling through the Western Hemisphere and across the southern U.S. border;
- Leaders and organizers of human smuggling networks responsible for certain identified mass casualty events; and
- Certain identified high-priority international fugitives wanted for human smuggling offenses.
In addition, the Justice Department will offer the possibility of additional rewards to tipsters whose information results in the forfeiture of criminal proceeds of human smuggling activities. The Department of the Treasury, in coordination with the ASR Initiative, will continue to employ its authorities to disrupt high priority human smuggling operations.
Increasing Penalties for the Most Prolific and Dangerous Human Smugglers
Since at least 2016, the Justice Department and DHS have urged the U.S. Sentencing Commission to consider stiffening penalties for those who commit human smuggling offenses. The current sentencing guidelines fail to fully account for the severity or extent of defendants’ misconduct in human smuggling cases — resulting in perverse incentives and reduced ability for prosecutors to go after leaders of smuggling organizations. Despite renewed requests from the Justice Department and DHS as recently as last year the Commission has not significantly bolstered penalties for the most dangerous human smugglers.
Thus, the Justice Department and DHS are supporting prosecutors in their efforts to hold accountable individuals charged with dangerous human smuggling, and the Justice Department intends to seek new and increased penalties against human smugglers to properly account for the severity of their criminal conduct and the human misery that it causes. The proposal would make three important changes to U.S. Sentencing Guideline §2L1.1, which governs human smuggling offenses:
- Creating steeper penalty tiers based on the number of people smuggled by the defendant;
- Increasing penalties when the defendant’s conduct results in injury or death to more than one person; and
- Ensuring defendants are subject to sentencing enhancements for sexual assault and other types of prohibited sexual conduct committed during the smuggling offense, even if that conduct occurred outside U.S. jurisdiction.
Deploying Justice Department and DHS Resources for Targeted Enforcement Efforts
The Justice Department is partnering with DHS to direct additional prosecutors and support staff to increase federal immigration-related prosecutions in crucial border U.S. Attorneys’ Offices. This critical operational partnership is being done in spite of a fiscal year 2024 enacted budget that included the largest year-over-year funding decrease to U.S. Attorneys’ Offices in Justice Department history. Efforts include deploying additional DHS Special Assistant U.S. Attorneys to border U.S. Attorneys’ Offices, assigning support staff detailees to critical U.S. Attorneys’ Offices, seeking Justice Department attorneys to serve details in U.S. Attorneys’ Offices in border districts, and partnering with federal agencies to identify additional resources to target these crimes.
In addition to surging new resources to border districts, U.S. Attorneys’ Offices continue to deploy existing resources and strategies to target immigration crimes.
About Joint Task Force Alpha
The Criminal Division’s Human Rights and Special Prosecutions Section leads JTFA in partnership with the U.S. Attorneys’ Offices and with dedicated support from the Office of International Affairs; Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from the DHS, FBI, Drug Enforcement Administration, and other partners. JTFA coordinates closely with foreign law enforcement partners on cross-border investigations, arrests of foreign targets, and extraditions.
Jersey City Man Convicted of Possession with Intent to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Jersey City man was convicted today on a charge of possession with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.
Jamil King, 32, of Jersey City, was convicted after a two-day trial before U.S. District Court Judge Esther Salas in Newark federal court. The jury deliberated two hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
King is a high-ranking member of the Jersey City neighborhood street gang known as Parkside. Law enforcement officials obtained a search warrant for King’s residence, and during the evening of July 8, 2022, officers executed that warrant. When the police arrived, King fled, but law enforcement recovered approximately 50 grams of cocaine from a pair of sweatpants inside the apartment. Those sweatpants contained the defendant’s DNA and matched the sweatshirt that the defendant was wearing that night.
The count on which King was convicted is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 23, 2024.
U.S. Attorney Philip Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the conviction. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorney Joseph Stern of the Office’s General Crimes Unit in Newark.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 28 was:
Jordan Charles Kirsch, 34, of Bozeman, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Kirsch faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Kirsch was detained pending further proceedings. The Missouri River Drug Task Force conducted the investigation. PACER case reference. 24-14.
Oscar Enrique Ruiz Rojas, 25, of Gallatin Gateway, on charges of alien in possession of a firearm. If convicted of the most serious crime, Rojas faces maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Rojas was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration conducted the investigation. PACER case reference. 24-17.
Cameron Lee Richard Carr, 34, of Kalispell, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of firearm. If convicted of the most serious crime, Carr faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possessing a firearm in furtherance of drug trafficking. Carr was detained pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Glacier County Sheriff’s Office conducted the investigation. PACER case reference. 24-23.
Nicole Elice Anderson, 39, of Post Falls, Idaho, on charges of unlawfully obtaining controlled substances. If convicted of the most serious crime, Anderson faces a maximum of four years in prison, a $250,000 fine and one year of supervised release. Anderson was released pending further proceedings. The Drug Enforcement Administration conducted the investigation. PACER case reference. 24-24.
Jeri Angeline Phillips, 36, of Butte, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Phillips faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Phillips was detained pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation and Montana Highway Patrol conducted the investigation. PACER case reference. 24-16.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 31 was:
Darrien Christian Snow, 23, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Snow faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Snow was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Highway Patrol conducted the investigation. PACER case reference. 24-75.
Appearing on May 30 was:
Juan Ortiz, 47, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Ortiz faces a maximum of 15 years prison, a $250,000 fine and three years of supervised release. Ortiz was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 24-42.
Appearing on May 28 was:
Richard Dale Wright, 46, of Big Fork, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Wright faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Wright was detained pending further proceedings. The Montana Highway Patrol, Golden Valley Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
PACER case reference. 23-127.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston for an initial appearance on a criminal complaint on May 28 was:
Melody Rose Bernard, 51, of Box Elder, and Ashley Jocelyn Cortez, 23, of California, on a criminal complaint charging conspiracy to possess with intent to distribute meth and fentanyl and possession with intent to distribute meth and fentanyl. If convicted of the most serious crime, Bernard and Cortez face a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bernard and Cortez were detained pending further proceedings. The FBI, Montana Division of Criminal Investigation, Tri Agency Task Force and Fort Belknap Police Department conducted the investigation. PACER case reference. 24-46.
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.
XXX
Idaho Falls Couple Sentenced for Distributing Fentanyl and Methamphetamine in Eastern IdahoRead the Press Release
POCATELLO – Richard Corey Fox, 54, and Angelina Larae Norton, 61, a couple living in Idaho Falls, were sentenced to over ten years combined for distributing fentanyl and methamphetamine in eastern Idaho, U.S. Attorney Josh Hurwit announced today.
According to court records, detectives with the BADGES Task Force initiated an investigation in the summer of 2022 in which they identified Fox and Norton as the source of supply for fentanyl, along with other controlled substances, for other individuals in the region. The Bonneville County Sheriff’s Office conducted a traffic stop on Fox’s vehicle on July 19, 2022. During the stop, law enforcement seized an ounce of methamphetamine and a large amount of U.S. currency. Shortly thereafter, a separate vehicle in which Norton was a passenger was stopped and three-quarters of a pound of methamphetamine was seized. Further investigation uncovered cell phone communications showing that Norton and Fox actively engaged in distributing fentanyl and methamphetamine and were in possession of firearms.
On May 28, 2024, Chief U.S. District Judge David C. Nye sentenced Fox to 92 months in federal prison to be followed by three years of supervised release. On December 22, 2023, Judge Nye sentenced Norton to 37 months, almost three years, in federal prison to be followed by three years of supervised release.
“This case exemplifies the strong partnerships between our office and law enforcement in rooting out drug distribution in Eastern Idaho,” said U.S. Attorney Hurwit. “We will spare no effort in removing dangerous drugs from our streets and holding dealers accountable.”
“We appreciate the hard work from all of the agencies that worked in conjunction on this investigation,” said Pocatello Police Chief Roger Schei. “This is a testimony of the power of relationships within law enforcement agencies and what can happen when we all work together towards one common goal.”
U.S. Attorney Hurwit commended the investigation by the Drug Enforcement Administration, the Idaho State Police, the Bannock County Sheriff’s Office, the Pocatello Police Department, and the Chubbuck Police Department, which participated as part of the HIDTA BADGES Task Force. The Bonneville County Sheriff’s Office also participated in the investigation. Assistant U.S. Attorney Blythe H. McLane prosecuted the case.
This case was investigated through the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. HIDTA is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug gran program that coordinates with and provides funding resources to multiagency drug enforcement initiates, including the BADGE Task Force.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
###
Henderson Man Sentenced to 23 Years in Federal Prison for Causing Two Overdose DeathsRead the Press Release
Owensboro, KY – Yesterday, a Henderson, Kentucky, man was sentenced to 23 years in federal prison for two counts of distributing fentanyl resulting in death.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Sean L. McKinney of the Henderson Police Department, and Sheriff David Crafton of the Henderson County Sheriff’s Office made the announcement.
According to court documents, Elijah Lovell, 20, was sentenced to 23 years in prison, followed by 5 years of supervised release, for two counts of distributing fentanyl resulting in death. Between December 27, 2021, and January 31, 2022, Lovell distributed fentanyl that resulted in the death of another person, “J.H.” Additionally, on or about May 5, 2022, Lovell distributed fentanyl that resulted in the death of another person, “C.G.”
“Let this sentence serve notice to those who traffic drugs in the Western District that this office, together with our law enforcement partners, will aggressively investigate and prosecute individuals who cause the tragic loss of life through the distribution of their poison,” said U.S. Attorney Bennett. “I commend the Henderson Police Department and the Henderson County Sheriff’s Office for their excellent work and partnership during the investigation and prosecution of this case.”
There is no parole in the federal system.
The Henderson Police Department and Henderson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Frank Dahl prosecuted the case.
###
Fort Dodge Sex Offender Sent to Federal Prison for 13 Years for Possession of a FirearmRead the Press Release
A man who shot into a residence and threatened people was sentenced on May 28, 2024, to 13 years in federal prison. Archester Rodgers, age 42, from Fort Dodge, Iowa, received the prison term after a January 23, 2024, guilty plea to one count of possession of a firearm by a prohibited person.
Evidence in the case revealed that on September 20, 2022, in Fort Dodge, police officers responded to a call from a woman being threatened by Rodgers, who was outside her apartment with an assault rifle. During the call, the victim heard Rodgers fire the gun and other people began calling 911 to report hearing shots. Rodgers fled from police when they arrived, eventually crashing his car. In Rodgers’ crashed car, officers found spent shell casings which were determined to be fired from Rodgers’ assault rifle, which was later recovered by police. It was later determined that earlier the same night, Rodgers shot his assault rifle into another residence in Fort Dodge at least three times. Rodgers was also in violation of his duty to register as a sex offender. Rodgers has a lengthy criminal history, including convictions for: Rape, Sexual Battery, Domestic Assault—Bodily Harm (twice), Failure to Register as a Sex Offender (four times), Assault, Terroristic Threats, Criminal Sexual Conduct—Fifth Degree—Nonconsensual Sexual Contact, Domestic Assault—Commits Act to Cause Fear or Immediate Bodily Harm or Death, Possession of a Controlled Substance (twice), and Eluding (twice).
Rodgers was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 156 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Rodgers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Fort Dodge Police Department and the United States Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3027.
Follow us on Twitter @USAO_NDIA.
Former Southern Pine Credit Union President Sentenced to Prison and Ordered to Pay Nearly $4.5 Million RestitutionRead the Press Release
VALDOSTA, Ga. – The former President of Southern Pine Credit Union in Valdosta was sentenced to serve four years in prison and pay back nearly $4.5 million in restitution after she admitted to a long-running multimillion-dollar bank loan and aggravated identity theft scheme.
Leah Lehman, 63, of Valdosta, was sentenced to serve 24 months imprisonment for aggravated identity theft and 48 months imprisonment for bank fraud, for a total of 72 months in prison, on May 30. In addition, Lehman was ordered to pay $4,491,253.97 in restitution to Southern Pine Credit Union. Lehman pleaded guilty to these charges on Oct. 26, 2023.
Co-defendant Teresa Paulo, of Valdosta, pleaded guilty to one count of bank fraud and one count of aggravated identity theft on Nov. 2, 2023. Paulo faces a maximum of 30 years in prison for bank fraud, and a mandatory two years in prison in addition to any other prison term imposed for aggravated identity theft, to be followed by a maximum of five years of supervised release and a $1,000,000 fine. Sentencing is scheduled for July 11.
U.S. District Judge W. Louis Sands is presiding over this case. The defendants are not eligible for parole.
“Lehman chose greed and deception, abusing her trusted leadership role to steal millions of dollars at this credit union over the course of many years,” said U.S. Attorney Peter D. Leary. “Our office, alongside our law enforcement partners, take financial crimes seriously, and we will work to hold fraudsters accountable.”
“This sentencing is the direct result of a diligent investigation by hardworking FBI employees and our partners at the Federal Deposit Insurance Corporation, Office of Inspector General,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Valdosta office. “Lehman’s greed driven scheme stole hundreds of thousands of dollars and damaged the financial security of innocent victims. They will now be held accountable for their blatant misuse of the power of their positions.”
“The criminal behavior in this case represents the most egregious betrayal of trust by two of this institution’s leaders, resulting in years of ill-gotten gains for the defendants, all while violating the faith that SPCU’s members placed in them,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “We are grateful to our regulatory and law enforcement partners in this case and will continue to vigorously investigate allegations of financial crime at FDIC-supervised institutions and in support of our fellow financial regulators.”
According to court documents, Lehman served as President of Southern Pine Credit Union (SPCU) in Valdosta from 1990 to 2020. Paolo was SPCU’s controller from Oct. 2011 to June 2020. The Credit Union’s members are employees of the local paper mill and their families. Lehman and Paolo were both authorized to originate all types of loans, were responsible for filing quarterly reports to the National Credit Union Administration (NCUA) and had access to all SPCU employees’ usernames and passwords for all SPCU computers and software.
Lehman began her fraud in June 2003, when she created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Feb. 2012 to May 31, 2020, Lehman paid off the loan and rebooked it multiple times with additional advances. She would take the proceeds and put them in a joint share draft account she had with the individual, using the proceeds to pay for a boat, a hunting club share, personal expenses and gifts to family members. This loan was repaid in full. However, Lehman created another share secured loan in another individual’s name without their knowledge and would also pay off the loan and rebook it multiple times for personal spending. To conceal these activities, Lehman created false credit transactions using the names and passwords of SPCU employees. These transactions would advance the due date on the loans, which prevented these loans from appearing on quarterly call reports to the NCUA and allowed Lehman to defer or not make payment on these loans. Following these transactions, Lehman created debit entries to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. She made additional fraudulent loan advances simultaneously with those entries to advance the loan dates. She reflected the loans as being paid off at the end of the quarter to prevent possible detection of artificial growth in the SPCU loan portfolio. In total, the drafts needed to pay off the loan balances at each quarter grew to $4,112,870.63, excluding payments and interest, as of May 31, 2020.
Paulo committed a similar fraud scheme to Lehman. In Oct. 2011, Paulo created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Nov. 2011 until May 29, 2020, Paulo took out additional advances on the loan as well as additional loans from the account. Paulo would transfer the loan proceeds into a joint account for personal spending purposes. She created another share secured account using the personal identity of another individual and would pay off the loan and rebook it multiple times with additional advances, using the proceeds for her own personal expenses or electronically transfer money into her family’s accounts. Paulo concealed her schemes as Lehman concealed hers: creating false credit transactions using the usernames and passwords of SPCU employees to simulate the payoff of the loans, which would advance the due date on the loans. Paulo also created debit entries using other people’s usernames and passwords to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. The drafts needed to pay off the loan balances at each quarter grew to $1,233,201.77, excluding payments and interest, as of May 31, 2020. Paulo made $7,736.16 in legitimate payments to the loan balances.
The case was investigated by the FBI and the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG).
Assistant U.S. Attorney Hannah Couch is prosecuting this case for the Government.
Former Senior Executive and Former Sales Manager Convicted of Selling Data on Millions of U.S. Consumers to Perpetrators of Mail Fraud SchemesRead the Press Release
The Justice Department announced today that a jury found a former senior executive and a former sales manager of Epsilon Data Management LLC (Epsilon) guilty of federal criminal charges related to the targeting of millions of U.S. consumers for mass-mailing fraud schemes.
Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, were found guilty today of conspiracy to commit mail and wire fraud and numerous counts of substantive mail and wire fraud.
According to evidence presented at the two-week trial, the defendants were key participants in a scheme that knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers over the course of 10years. The defendants committed the crimes while working at data broker Epsilon which used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households. The jury found the defendants knew that their scheme was providing data to fraudster clients. Evidence at trial showed that the defendants used Epsilon’s algorithms to predict new lists of consumers most likely to respond to the frauds and that the defendants’ business unit worked with dozens of clients with scam letters promising large prizes or falsely personalized astrological mailings promising wealth.
As part of the scheme, the conspirators sold the names and address of millions of U.S. consumers to perpetrators of schemes engaged in fraud, knowing that their fraudster clients were targeting elderly and vulnerable people. Evidence at trial showed that the defendants sold nearly 100 lists to just one fraudster client, and that the defendants had many other fraudster clients with scam letters. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes. Evidence showed that each of these victims were targeted for fraud by members of the conspiracy. A number of current and former Epsilon employees also testified, along with three witnesses who previously pleaded guilty to conspiracy to commit mail fraud: a list broker and two Epsilon clients who operated mail fraud schemes.
“This case serves as a warning that the Justice Department Consumer Branch and its law enforcement partners will hold corporate executives accountable for fraudulent use of consumer data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will investigate and prosecute individuals who use sophisticated technology to defraud consumers.”
“Defrauding elderly and vulnerable consumers will not be tolerated in the State of Colorado,” said U.S. Attorney Cole Finegan for the District of Colorado. “This case is an example of the responsibility both executives and companies hold when it comes to gathering and selling personal data, and I hope other companies take note of the serious outcomes of this case.”
“The U.S. Postal Inspection Service (USPIS) sees the conviction of these individuals as a significant victory in our ongoing efforts to protect older adults from fraud and exploitation,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “These criminals preyed on some of the most vulnerable members of our community, and today's verdict sends a clear message that such predatory behavior will not be tolerated. We will continue to work tirelessly to ensure justice is served and to prevent these crimes from happening in the future.”
Evidence at trial showed that Robert Reger worked at Epsilon from 2005 to 2017, where he led sales teams after building and leading the sales unit engaged in fraud, the Direct to Consumer Unit. When Reger left Epsilon, he was senior vice president overseeing the Direct to Consumer Unit. In convicting Reger, the jury found he intentionally joined in the conspiracy and had specific intent to defraud victims of the schemes.
David Lytle worked at Epsilon from 2012 to 2018 as a business development manager recruiting clients for the Direct to Consumer Unit and was responsible for signing up many of the clients engaged in fraud.
The jury found that Reger and Lytle were guilty of conspiracy to commit mail or wire fraud based on evidence that members of the conspiracy knew they were routinely selling consumer data to fraudsters.
The jury found both Reger and Lytle guilty of seven counts of mail fraud. Evidence at trial showed that the conspirators sold lists of consumers to fraudsters, which caused victims to send checks in response to letters promising large cash prizes. The jury found also Reger guilty of six counts of wire fraud and Lytle guilty of 12 counts of wire fraud in connection with electronic shipments of names and addresses and other emails that carried out the objectives of the scheme to defraud.
A sentencing hearing is scheduled on Sept. 30. Reger and Lytle both face a maximum penalty of 20 years in prison for each count.
In 2018, former Epsilon Vice President Steven Fritz Kessler pleaded guilty to conspiracy to commit mail fraud for his participation in the fraudulent scheme.
The defendants’ former employer, Epsilon resolved its criminal liability via a deferred prosecution agreement in 2021, paying $150 million in penalties and victim compensation. That victim compensation effort has returned $122 million to more than 200,000 victims of fraud schemes for which Epsilon provided data.
USPIS’ Transnational Elder Fraud Strike Force investigated this matter.
Senior Trial Attorney Alistair Reader and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rebecca Weber for the District of Colorado prosecuted the case. Senior Trial Attorney Ehren Reynolds and former Assistant U.S. Attorney Hetal Doshi for the District of Colorado also assisted in the case, along with outstanding support staff from the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Former Senior Executive and Former Sales Manager Convicted of Selling Data on Millions of U.S. Consumers to Perpetrators of Mail Fraud SchemesRead the Press Release
DENVER – The Justice Department announced today that a jury found a former senior executive and a former sales manager of Epsilon Data Management LLC (Epsilon) guilty of federal criminal charges related to the targeting of millions of U.S. consumers for mass-mailing fraud schemes.
Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, were found guilty today of conspiracy to commit mail and wire fraud and numerous counts of substantive mail and wire fraud.
According to evidence presented at the two-week trial, the defendants were key participants in a scheme that knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers over the course of 10years. The defendants committed the crimes while working at data broker Epsilon which used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households. The jury found the defendants knew that their scheme was providing data to fraudster clients. Evidence at trial showed that the defendants used Epsilon’s algorithms to predict new lists of consumers most likely to respond to the frauds and that the defendants’ business unit worked with dozens of clients with scam letters promising large prizes or falsely personalized astrological mailings promising wealth.
As part of the scheme, the conspirators sold the names and address of millions of U.S. consumers to perpetrators of schemes engaged in fraud, knowing that their fraudster clients were targeting elderly and vulnerable people. Evidence at trial showed that the defendants sold nearly 100 lists to just one fraudster client, and that the defendants had many other fraudster clients with scam letters. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes. Evidence showed that each of these victims were targeted for fraud by members of the conspiracy. A number of current and former Epsilon employees also testified, along with three witnesses who previously pleaded guilty to conspiracy to commit mail fraud: a list broker and two Epsilon clients who operated mail fraud schemes.
“This case serves as a warning that the Justice Department Consumer Branch and its law enforcement partners will hold corporate executives accountable for fraudulent use of consumer data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will investigate and prosecute individuals who use sophisticated technology to defraud consumers.”
“Defrauding elderly and vulnerable consumers will not be tolerated in the State of Colorado,” said U.S. Attorney Cole Finegan for the District of Colorado. “This case is an example of the responsibility both executives and companies hold when it comes to gathering and selling personal data, and I hope other companies take note of the serious outcomes of this case.”
“The U.S. Postal Inspection Service (USPIS) sees the conviction of these individuals as a significant victory in our ongoing efforts to protect older adults from fraud and exploitation,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “These criminals preyed on some of the most vulnerable members of our community, and today's verdict sends a clear message that such predatory behavior will not be tolerated. We will continue to work tirelessly to ensure justice is served and to prevent these crimes from happening in the future.”
Evidence at trial showed that Robert Reger worked at Epsilon from 2005 to 2017, where he led sales teams after building and leading the sales unit engaged in fraud, the Direct to Consumer Unit. When Reger left Epsilon, he was senior vice president overseeing the Direct to Consumer Unit. In convicting Reger, the jury found he intentionally joined in the conspiracy and had specific intent to defraud victims of the schemes.
David Lytle worked at Epsilon from 2012 to 2018 as a business development manager recruiting clients for the Direct to Consumer Unit and was responsible for signing up many of the clients engaged in fraud.
The jury found that Reger and Lytle were guilty of conspiracy to commit mail or wire fraud based on evidence that members of the conspiracy knew they were routinely selling consumer data to fraudsters.
The jury found both Reger and Lytle guilty of seven counts of mail fraud. Evidence at trial showed that the conspirators sold lists of consumers to fraudsters, which caused victims to send checks in response to letters promising large cash prizes. The jury found also Reger guilty of six counts of wire fraud and Lytle guilty of 12 counts of wire fraud in connection with electronic shipments of names and addresses and other emails that carried out the objectives of the scheme to defraud.
A sentencing hearing is scheduled on Sept. 30. Reger and Lytle both face a maximum penalty of 20 years in prison for each count.
In 2018, former Epsilon Vice President Steven Fritz Kessler pleaded guilty to conspiracy to commit mail fraud for his participation in the fraudulent scheme.
The defendants’ former employer, Epsilon resolved its criminal liability via a deferred prosecution agreement in 2021, paying $150 million in penalties and victim compensation. That victim compensation effort has returned $122 million to more than 200,000 victims of fraud schemes for which Epsilon provided data.
USPIS’ Transnational Elder Fraud Strike Force investigated this matter.
Senior Trial Attorney Alistair Reader and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rebecca Weber for the District of Colorado prosecuted the case. Senior Trial Attorney Ehren Reynolds and former Assistant U.S. Attorney Hetal Doshi for the District of Colorado also assisted in the case, along with outstanding support staff from the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Former Executive Director of Tribal non-profit sentenced for embezzling federal fundsRead the Press Release
Tacoma – The former Executive Director of the Western Washington Indian Employment Training Program (WWIETP) was sentenced yesterday in U.S. District Court in Tacoma to five months in custody for embezzling from a program receiving federal funds, announced U.S. Attorney Tessa M. Gorman. Debbie Rawle, 69, formerly of Tacoma, served as Executive Director of the tribally owned non-profit job training program for several years until October 2019. The non-profit is now defunct and no longer receiving any federal funds. At the sentencing hearing, Chief U.S. District Judge David G. Estudillo said that a custodial sentence was appropriate given the seriousness of the offense, which hurt so many who were looking for assistance from the program.
“As the Chairman of the Squaxin Island Tribe noted for the court, this non-profit was supposed to provide services to twenty-one member tribes, whose members “are among those in the greatest need,”’ said U.S. Attorney Gorman. “While eligible tribal members’ needs went unmet, Ms. Rawle spent lavishly on herself – installing an above ground pool, buying electronics and accessories for motorcycles.”
According to records in the case, the job training non-profit received $698,153 in 2018 and $703,388 in 2019 to provide employment and training services for eligible tribal members. The U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs administers the funds.
In September 2019, the Division of Indian and Native American Programs began investigating questionable expenditures using the debit card of the non-profit training organization at a Macy’s store. Rawle provided false and misleading information about the purchases, claiming they were work related. In fact, there were multiple purchases of items for Rawle’s own use including a new mattress, sunglasses, and clothing.
Further investigation revealed Rawle used the organization debit card for purchases at Best Buy, Amazon, and Costco. At Costco she purchased a cedar pavilion and above ground swimming pool, while on Amazon she ordered a pool maintenance kit, and motorcycle accessories costing more than $1,000. In all, the embezzled funds amount to $99,990, which Rawle has agreed to pay in restitution.
Vicki Kruger, a Squaxin Island tribal elder and former WWIETP board member, spoke at the sentencing hearing about the substantial harm caused by Rawle’s mismanagement and theft of Program funds, money that would have been used by tribal members to better their lives. According to Kruger, Rawle destroyed the program and harmed the well-being of tribal members for generations to come.
“Debbie Rawle embezzled federal grant funds that were intended to provide education, job training, and employment services to Native Americans in western Washington under the Western Washington Indian Employment and Training Program (WWIETP). As the former executive director of the program, Rawle violated the trust of those she served by personally enriching herself with those funds. We will continue to work with our law enforcement partners to aggressively identify those who misuse U.S. Department of Labor grant funds and bring them to justice,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General.
The case was investigated by the U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs (“DINAP”), the U.S Department of Labor Office of Inspector General (DOL-OIG) and the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
Former Commercial Airline Pilot Convicted by Federal Jury of Tax CrimesRead the Press Release
MINNEAPOLIS – A federal jury found a former commercial airline pilot guilty of tax evasion, filing false tax returns, failing to file tax returns, and making false claims, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, Charles Randall Sorensen, 72, of Minnetonka, was a commercial airline pilot who retired in 2016. In January 2017, Sorensen filed a fraudulent tax return for the 2015 tax year, falsely claiming that he was entitled to a $55,365 tax refund. In reality, Sorensen owed more than $49,000 in income taxes that year. In March 2017, Sorensen filed a fraudulent tax return for the 2016 tax year, falsely claiming that he was entitled to a $123,370 tax refund. In reality, he owed more than $175,000 in taxes that year. The IRS conducted an audit of Sorensen’s 2015 and 2016 tax returns and found that Sorensen fraudulently received more than $150,000 in tax refunds to which he was not entitled and owed more than $290,000 in taxes, interest, and penalties for those tax years.
According to the evidence presented at trial, Sorensen refused to pay his tax debt and took steps to actively evade the IRS’s collection efforts by hiding his income and assets in bank accounts in the name of shell religious non-profits and by liquidating his retirement accounts and converting the funds into cryptocurrency. Sorensen also failed to file federal income tax returns for 2017, 2018, and 2019. Sorensen owes the United States more than $300,000.
Following a four-day trial before Chief Judge Patrick J. Schiltz in U.S. District Court, Sorensen was found guilty today on two counts of filing a false tax return, one count of tax evasion, three counts of failing to file a tax return, and one count of making a false claim. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by IRS – Criminal Investigations.
Assistant U.S. Attorneys Michael P. McBride and Campbell Warner tried the case.
Former Clutier City Clerk Sentenced to Nearly Two Years in Federal Prison for Stealing from the CityRead the Press Release
A woman who formerly worked as the city clerk for the City of Clutier, Iowa, and who committed wire fraud to steal from the city was sentenced today to nearly two years in federal prison.
Keri Kopriva, age 44, from Elberon, Iowa, received the prison term after an October 26, 2023, guilty plea to one count of wire fraud.
Information from a plea agreement and at sentencing showed that Kopriva was working as the city clerk for the City of Clutier between January 2016 and December 2018. During this time, Kopriva stole money from the city in various ways, including writing checks to herself and to family members, using city credit cards for personal expenses, and pocketing money meant for utility payments from citizens of the city. Information at sentencing showed that over the nearly three years, Kopriva stole more than $107,000 from the city.
Kopriva was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Kopriva was sentenced to 21 months’ imprisonment. She was ordered to make more than $108,000 in restitution to the City of Clutier. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Kopriva is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-cr-13.
Follow us on Twitter @USAO_NDIA.
Florida Man Sentenced to 96 Months in Prison for Role in Multimillion-Dollar Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A Florida man was sentenced to 96 months in prison for his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced today.
Kareem Memon, 34, of Coral Springs, Florida, previously pleaded guilty before U.S. District Court Judge Raag Singhal to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute. Judge Singhal imposed the sentence on May 29, 2024, in the Southern District of Florida.
According to documents filed in the case and statements made in court:
Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.
On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal. Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition.
In addition to the prison term, Judge Singhal sentenced Memon to three years of supervised release.
Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida. Assistant U.S. Attorney Mitchell Hyman for the Southern District of Florida is handling asset forfeiture.
Five Rochester Residents Plead Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
CONCORD – Five Rochester residents pleaded guilty this week in federal court to drug offenses, U.S. Attorney Jane E. Young announces.
The following defendants pleaded guilty to drug offenses:
- Monty Granger, age 43, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and three counts of distribution of methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for September 9, 2024.
- Michelle Fredette-Chatman, age 38, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and one count of distribution of methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for September 13, 2024.
- Edward Deal III, age 38, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for September 18, 2024.
Charged in a separate indictment, the following defendants also pleaded guilty to drug offenses:
- Felix Urrutia, age 51, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine and four counts of distribution of methamphetamine. U.S. District Court Judge Joseph Laplante scheduled sentencing for July 15, 2024.
- Hailey Cahill, age 28, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. U.S. District Court Judge Paul Barbadoro scheduled sentencing for September 10, 2024.
Between October 3 and October 12, 2023, Mr. Granger sold methamphetamine to a confidential source on three occasions. On October 23, 2023, the confidential source paid Mr. Granger for another methamphetamine purchase. Therefore, Mr. Deal organized the drug transaction and Ms. Fredette-Chatman ultimately sold the methamphetamine to the confidential source.
Between July 27, 2023 and October 2023, Ms. Cahill sold methamphetamine to Mr. Urrutia on several occasions. Thereafter, Urrutia sold the methamphetamine to a confidential source. Investigators uncovered the conspiracy through surveillance of Ms. Cahill, who left her home and met with Mr. Urrutia prior to each drug transaction between Mr. Urrutia and the confidential source.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances and the distribution of controlled substances provides for a sentence up to 20 years in prison, at least a three-year term of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation’s Major Offender Task Force led the investigation. The Major Offender Task Force is comprised of federal agents partnered with law enforcement officers from police departments state-wide. Valuable assistance was provided by the Dover and Rochester Police Departments, the Strafford County Sheriff’s Office, and the United States Marshals Service. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case.
###
Final Defendant Sentenced for Federal Conspiracy Against Rights and Freedom of Access to Clinic Entrances (FACE) Act Convictions Related to 2020 D.C. Clinic Invasion and BlockadeRead the Press Release
Paulette Harlow was sentenced today to 24 months in prison following her convictions for federal conspiracy against rights and Freedom of Access to Clinic Entrances (FACE) Act offenses in connection with the blockade of a Washington, D.C., area reproductive health clinic on Oct. 22, 2020.
Previously, Lauren Handy was sentenced to 57 months in prison, John Hinshaw was sentenced to 21 months in prison, William Goodman was sentenced to 27 months in prison, Jonathan Darnel was sentenced to 34 months in prison, Herb Geraghty was sentenced to 27 months in prison, Jean Marshall was sentenced to 24 months in prison, Joan Bell was sentenced to 27 months in prison and Heather Idoni was sentenced to 24 months in prison. A 10th defendant, Jay Smith, was sentenced to prison following his guilty plea to a felony FACE Act offense on March 1, 2023.
“These 10 defendants have been held accountable for using force, threatening to use force and physically obstructing access to reproductive health care in the District of Columbia,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect both patients seeking reproductive health services and providers of those services. We will hold accountable anyone who seeks to unlawfully obstruct or block access to reproductive health services in our country.”
“Today, the final defendant was sentenced in an elaborate conspiracy by 10 people to intentionally and forcibly block patients and workers from accessing a reproductive health clinic while streaming it live online,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The FBI will not stand for anyone who violates federal laws causing destruction, injury and violent attacks like this one. We are dedicated to protecting the rights of all Americans to safely access medical services and ensuring providers can perform their duties freely.”
These defendants were convicted following three separate trials in 2023. Idoni is scheduled to be sentenced in a separate matter on July 30, following conspiracy and FACE Act convictions in an unrelated clinic blockade from Tennessee.
Evidence presented at trial established that the defendants used force and physical obstruction to execute a clinic blockade that was organized by the group’s leaders, Handy and Darnel. The defendants planned and organized the clinic invasion using social media, text messages and telephone calls, and several co-conspirators, including defendants Hinshaw, Goodman, Geraghty, Marshall, Bell, Harlow, Idoni and Smith traveled from northeast and midwestern states to participate in the blockade. Prior to the clinic incursion, the defendants met with other co-conspirators to plan their crime, which included making a fake patient appointment to ensure the group’s entry into the clinic, using chains and locks to barricade the facility and passively resisting their anticipated arrests to prolong the blockade. The clinic invasion was advertised on social media as a “historic” event that was live-streamed on Facebook. The defendants’ forced entry into the clinic at the outset of the invasion resulted in injury to a clinic nurse. During the blockade, one patient had to climb through a receptionist window to access the clinic, while another laid in the hallway outside of the clinic in physical distress, unable to gain access to the clinic.
The FBI Washington Field Office investigated the case.
Prosecutors from the Civil Rights Division and U.S. Attorney’s Office for the District of Columbia prosecuted the case.
Final Defendant Sentenced for Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances OffensesRead the Press Release
WASHINGTON – Paula Paulette Harlow, 75, of Kingston, Massachusetts, was sentenced in U.S. District Court today to 24 months incarceration for her role in a conspiracy that created a blockade at a Washington, D.C. reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services.
The announcement was made by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, and FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division.
Harlow is the 10th member of the conspiracy to be sentenced on charges of civil rights conspiracy and Freedom of Access to Clinic Entrances (FACE) Act violations. Earlier this month, U.S. District Judge Colleen Kollar-Kotelly sentenced eight other members of the conspiracy.
Another of the defendants, the only one to plead guilty, Jay Smith, 34, of Freeport, New York, was sentenced to 10 months in prison and three years of supervised release in March 2023.
As the evidence at trial showed, the defendants engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. As part of the conspiracy, many of the defendants traveled to Washington, D.C. from various northeast and midwestern states, to meet with Lauren Handy and participate in a clinic blockade that was directed by Handy and was broadcast on Facebook.
According to the evidence, on October 22, 2020, Handy – along with her co-conspirators Jonathan Darnel, John Hinshaw, William Goodman, Jean Marshall, Joan Bell, Herb Geraghty, Heather Idoni, and Paula Harlow, among others – forcefully entered the clinic and set about blockading two clinic doors using their bodies, furniture, chains, and ropes. Once the blockade was established, they live-streamed their activities. The evidence also showed that the defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient, because they were providing or obtaining reproductive health services.
DEFENDANTS
NAME
AGE
GUILTY OF
SENTENCE
Lauren Handy
Alexandria, VA
30
Found Guilty on August 29, 2023, of Felony Conspiracy Against Civil Rights and Violation of the Freedom of Access to Clinic Entrances (FACE) Act
Sentenced
May 14, 2024, to 57 Months Incarceration and Three Years of Supervised ReleaseJohn Hinshaw
Levittown, NY
69
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 14, 2024, to 21 Months Incarceration and Three Years of Supervised ReleaseWilliam Goodman Bronx, NY
54
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 14, 2024, to 27 Months Incarceration and Three Years of Supervised ReleaseJay Smith
Freeport, NY
34
Pleaded Guilty March 1, 2023, to Violating the FACE Act
Sentenced
Aug. 17, 2023, to 10 Months Incarceration and Three Years of Supervised ReleaseJonathan Darnel Arlington, VA
42
Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 34 Months Incarceration and Three Years of Supervised Release
Jean Marshall Kingston, MA
74
Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 24 Months Incarceration and Three Years of Supervised Release
Joan Bell
Montague, NJ
76
Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 27 Months Incarceration and Three Years of Supervised Release
Herb Geraghty Pittsburgh, PA
27
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 15, 2024, to 27 Months Incarceration and Three Years of Supervised Release
Heather Idoni Linden, MI
59
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 22, 2024 to 24 Months Incarceration and Three Years of Supervised ReleasePaula Harlow
Kingston, MA
75
Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act
Sentenced
May 31, 2024 to 24 Months IncarcerationThis case was investigated by the FBI’s Washington Field Office, with valuable assistance from the Metropolitan Police Department and the FBI Field Offices in Newark, New York City, Boston, Pittsburgh and Detroit provided valuable assistance. It was prosecuted by the Justice Department’s Civil Rights Division and the Fraud, Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, and Detroit provided valuable assistance.
22cr96
Federal Jury Finds Belizean National Guilty of Illegal Re-Entry in Del RioRead the Press Release
DEL RIO, Texas – A federal jury convicted a Belizean national in a federal court in Del Rio for illegal re-entry into the United States.
According to court documents and evidence presented at trial, Francis Kerr aka Francis Deon Flowers, 51, of Belmopan, Belize, was arrested Aug. 22, 2023, near Eagle Pass. He was found to have been in the U.S. illegally, after being formally deported through Houston on or about Oct. 1, 2009.
Kerr had previously served a prison sentence of 17 years and four months after being convicted by a jury in Los Angeles, California for two counts of 2nd degree robbery, four counts of assault with a firearm, and one count of conspiracy to commit robbery.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
U.S. Customs and Immigration Services and the U.S. Border Patrol are investigating the case.
Assistant U.S. Attorneys Paul Markovits and Joshua Garland are prosecuting the case.
###
Essex County Man Sentenced to 65 Months in Prison for Role in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 65 months in prison for his role in a conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl, heroin, and cocaine; and possessing with intent to distribute various narcotics, U.S. Attorney Philip R. Sellinger announced.
Ali Carney, 46, of Newark, pleaded guilty on Jan. 17, 2024, before U.S. District Judge Susan D. Wigenton to a superseding information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine; and possession with intent to distribute fentanyl. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
From April 2021 through October 2022, Carney and others – members and associates of the Grape Street Crips gang – participated in a drug trafficking organization that controlled the drug trade in and around the Oscar Miles Village housing complex in Newark. Carney admitted his role in the conspiracy and that he sold controlled substances on a near daily basis during the conspiracy.
In addition to the prison term, Judge Wigenton sentenced Carney to three years of supervised release.
All 11 of Carney’s co-defendants – Thomas Barney, Najuwan Blake-Williams, Altray Brown, Najee Carney, Tyrone Cradle, Jaquan McAllister, Ikaim McSwain, Latif Terry, Shaquan Ward, Taji Williams, and Zaid Williams – previously pleaded guilty in connection with their respective roles in the conspiracy.
A year-long investigation revealed that the drug trafficking organization distributed over a kilogram of fentanyl-laced heroin and over 280 grams of crack cocaine. Law enforcement also seized multiple firearms, which were used in furtherance of the narcotics trade, from the members of the conspiracy.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; investigators of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; investigators from the U.S. Marshal Service, under the direction of Marshal Juan Mattos Jr.; investigators of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Police Department, under the direction of Director of Public Safety Fritz G. Fragé, with the investigation leading to the guilty pleas.
The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Olta Bejleri of the Criminal Division in Newark.
Essex County Convicted Felon Sentenced to 12 Years in Prison for Involvement in Two Shootings, Possessing Firearm with Extended Magazine, and Possessing Heroin with Intent to DistributeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 144 months in prison for his involvement in two shootings, as well as illegally possessing a handgun and possessing heroin he intended to distribute, U.S. Attorney Philip R. Sellinger announced today.
Antoine Hawkins, 31, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Aug. 18, 2020, video surveillance footage depicted Hawkins as he fired a gun on a Newark street, striking a victim, who survived the shooting. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings were a ballistics match.
On Sept. 16, 2020, law enforcement encountered Hawkins and observed what appeared to be a firearm in Hawkins’s jacket. A subsequent search of Hawkins revealed a 9-millimeter pistol, which was loaded in an extended magazine containing 19 rounds of ammunition.
A search warrant executed at Hawkins’s residence revealed, among other items, 626 glassine envelopes containing heroin and three 9-millimeter magazines.
In addition to the prison term, Judge Hayden sentenced Hawkins to three years of supervised release.
U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the charges.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Erie Resident Charged with Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named James Michael Hendricks, 44, as the sole defendant.
According to the Indictment, from on or about May 8, 2021, to on or about May 16, 2022, Hendricks received images depicting minors engaging in sexually explicit conduct. Hendricks also possessed and accessed with intent to view child sexual abuse material in and around June 2022.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation leading to the Indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware Man Admits Coercing New Jersey 11-Year-Old to Travel to Delaware for Sexual ActivityRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Bear, Delaware man pled guilty in federal court today to one count of Coercion and Enticement of a Minor. The Honorable Jennifer L. Hall, U.S. District Judge for the District of Delaware, accepted the plea.
According to court documents, Darius Matylewich, 27, was arrested by the FBI after he removed an 11-year-old from her New Jersey home and travelled with her to his Bear, Delaware home to engage in sexual activity. On September 10, 2023, the Wayne Township New Jersey Police Department (“WTPD”) received a report of a missing 11-year-old victim. Through investigative measures, WTPD determined that Matylewich took the 11-year-old victim from New Jersey to his home in Bear, Delaware. In assisting WTPD, the New Castle County Police Department safely recovered the 11-year-old victim and arrested Matylewich.
A subsequent investigation revealed that Matylewich met the 11-year-old victim on the internet and communicated with the victim via the online video games and social media platforms. A forensic analysis of Matylewich’s cellphone and social media uncovered message threads in which Matylewich coerced the 11-year-old victim to perform sexual acts, and, in turn, produce child pornography, for him. Investigators also recovered messages in which Matylewich described covertly watching and following the victim near her New Jersey home.
Matylewich also used an application on his iPhone to covertly record conversations, videos, and images of the 11-year-old performing sexual acts that Matylewich solicited from the victim. Matylewich stored hundreds of videos and images of the victim within the “hidden” folder of his Apple Photos application, which could only be accessed via facial recognition.
U.S. Attorney Weiss stated, “My office is dedicated to protecting children from those, like the defendant, who prey on the innocent and vulnerable on the internet. I urge families to be wary of sharing information with online strangers to avoid individuals like the defendant. I commend the diligent work of the FBI, New Castle County Police, and Wayne Township Police for their swift work in bring the defendant to justice.”
“Darius Matylewich is a child predator whose sick and abhorrent behavior took advantage of an innocent girl, who now has significant healing ahead of her,” said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “Unequivocally, our community is safer with Matylewich behind bars, locked away where he can no longer victimize anyone else’s child.”
The case was prosecuted by Assistant U.S. Attorneys Michelle Thurstlic-O’Neill and Kevin P. Pierce. The case was investigated by the FBI’s Delaware Violent Crime and Safe Streets Taskforce with assistance from the Passaic County Prosecutor’s Office, Wayne Township New Jersey Police Department, New Castle County Police Department, and the U.S. Marshals Service.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:23-CR-102.
Danville Man Sentenced for Trafficking Fentanyl Resulting in Overdose DeathRead the Press Release
LEXINGTON, Ky. – A Danville, Ky., man, Akili O. Simpson, 23, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 26 years in prison, for conspiracy to distribute 40 grams or more of fentanyl and distribution of fentanyl that resulted in death.
According to his plea agreement, from March 2022 until July 2023, Simpson conspired with others to distribute quantities of fentanyl in Danville. Simpson also admitted the quantity of the drugs involved in the conspiracy was at least 40 grams of fentanyl. Following a distribution of drugs by Simpson, on November 3, 2022, a victim in Danville overdosed and died, due to the ingestion of fentanyl. The fentanyl distributed by Simpson was in a counterfeit pill, which was marked to resemble an oxycodone pill. During the investigation, law enforcement discovered Instagram messages on the victim’s phone that showed Simpson was the source of the fentanyl that caused the overdose death.
After Simpson’s federal indictment, multiple search warrants were executed and law enforcement located two firearms, ammunition, marijuana, drug trafficking paraphernalia, a drug ledger, and a money counting machine. Simpson admitted to law enforcement agents that he obtained approximately 300 to 500 of the counterfeit pills per month for distribution in Danville. Simpson further admitted that he knew that the pills contained fentanyl.
“This case is a stark reminder of the dangers of illicit fentanyl, its prevalence in our communities, and the devious methods of those selling it,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “These drugs are extremely dangerous and there is little way to know for certain what a drug dealer may be selling. Dealers often distribute fentanyl in the form of counterfeit pills; but while they may look like legitimate pharmaceuticals, the pills contain fentanyl – about 100 times stronger than oxycodone. Any disruption of this illicit fentanyl trade will surely spare others from tragic results, and this prosecution would not have been possible without the outstanding work of the Danville Police and the DEA. Their efforts will energize the committed pursuit of those placing so many people in grave danger.”
“Illicit Fentanyl is the greatest drug threat facing America today, and people like Mr. Simpson, who sow misery and death in our communities, should expect to meet the full weight of the justice system for their actions,” said Erek Davodowich, Acting Special Agent in Charge of the Drug Enforcement Administration’s Louisville Division.
Under federal law, Simpson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
United States Attorney Shier; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; and Chief Tony Gray, Danville Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Danville Police Department. Assistant U.S. Attorney Todd Bradbury prosecuted the case on behalf of the United States.
— END —
Columbus man sentenced to 10 years in prison for dealing methRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 120 months in prison for trafficking methamphetamine.
Jerrell E. Harrison, 23, of Columbus, was arrested in September 2023 and pleaded guilty in December 2023 to two counts of distributing 50 grams or more of methamphetamine. Harrison is also known as “T” and “Chubbs.”
According to court documents, in January and February 2023, Harrison sold hundreds of grams of methamphetamine to undercover agents. The drugs field tested at 99 percent and 100 percent purity.
In recordings of Harrison, he discussed owning more than 20 firearms and offered to sell them. He also produced a loaded handgun and stated that he carried his “baby” because one his “trap houses” in the Bottoms was recently shot up, and he had to return fire.
Harrison also offered to sell Glock switches – devices that turn a semi-automatic weapon into a fully automatic machineguns – to the undercover agents.
Additionally, Harrison told the undercover agents he could sell them fentanyl for $1,000 an ounce and said it was the “best price in the city.”
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
# # #
College Place Man Sentenced to More Than 16 Years in Federal Prison for Drug Trafficking and Illegally Possessing FirearmsRead the Press Release
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Rex Michael Kern Jr., 39, of College Place, Washington, was sentenced after pleading guilty to two counts of Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine and two counts of being a Felon in Possession of Firearms. United States District Judge Mary K. Dimke imposed a sentence of 198 months imprisonment to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, early in the morning of February 11, 2022, the Walla Walla Police Department (WWPD) conducted a traffic stop of a white Hyundai hatchback. The Hyundai had been reported stolen out of Spokane a couple weeks earlier. Kern was driving and was the only occupant in the vehicle.
Officers arrested Kern and obtained search warrants for the Hyundai. Officers recovered a .22 caliber rifle, a 9mm caliber pistol, a small amount of cocaine, a half-pound of marijuana, nearly a pound of methamphetamine, two digital scales with drug residue, and $2,700 in cash from inside the vehicle.
In July of 2022, WWPD officers saw Kern going in and out of vehicles in the driveway of a residence in Walla Walla. Officers arrested Kern on an unrelated felony warrant from Walla Walla Superior Court and conducted a search. Officers located a cell phone, marijuana, methamphetamine, and brass knuckles.
Officers obtained and executed a search warrant for one of the vehicles Kern was accessing before his arrest. Inside the vehicle, WWPD located a cell phone, two 9mm pistols – one of which had no serial number, ammunition, firearm magazines, $3,927 in cash, a half-pound of methamphetamine, 638 fentanyl pills and a small amount of marijuana. One of the cell phones recovered contained messages detailing drug transactions and photographs of fentanyl pills.
“Drug traffickers like Mr. Kern perpetuate the cycle of substance abuse disorders and fatal overdoses by trafficking dangerous drugs into our neighborhoods,” stated U.S. Attorney Waldref. “I am thankful to all the members of our law enforcement team who work hand in hand with my office to keep our communities safe and fight the spread of illicit narcotics.”
“Felons know they’re not supposed to possess firearms,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Not only didn’t Mr. Kern learn a lesson from his previous conviction, he exacerbated it by dealing in narcotics while possessing firearms. Hopefully this sentence will finally send a message to him that he needs to change his actions.”
This case was investigated by the ATF and the Walla Walla Police Department. It was prosecuted by Assistant United States Attorney Brandon Pang.
Clearwater Man Sentenced to Seven Years in Federal Prison for Multiple Child Sexual Abuse Material OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Robert Boyan Carra (44, Clearwater) to 7 years and 3 months in federal prison for receiving, distributing, and possessing child sexual abuse material. The court also ordered Carra to pay $15,000 in restitution to the victims of the offense. Carra entered a guilty plea on January 12, 2024.
According to court documents, in April 2023, agents from Homeland Security Investigations (HSI) executed a federal search warrant at Carra’s residence and discovered more than 300 videos and images of child sexual abuse material on several electronic devices belonging to Carra. Federal agents arrested Carra in June 2023 at Tampa International Airport and seized his cellphone. A forensic search revealed more than 700 images and videos of child sexual abuse material.
“This sentencing for the receipt, distribution, and possession of child sexual abuse material reaffirms HSI’s unwavering commitment to collaborate with our law enforcement partners to seek out those who exploit our children’s innocence,” said HSI Tampa Assistant Special Agent in Charge Kristopher Pagitt.
This case was investigated by Homeland Security Investigations – Tampa, with substantial assistance from the Pinellas Park Police Department. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chinese Nationals Arrested for Alleged $12.3 Million Fraud Involving Fraudulent Return of Counterfeit Apple iPhones and Other DevicesRead the Press Release
LOS ANGELES – Five Chinese nationals are scheduled to be arraigned today after their arrest on federal charges alleging they operated a large-scale, trans-Pacific counterfeit Apple Inc. device scheme that included the fraudulent returns of thousands of iPhones, iPads, and other Apple goods and caused the Cupertino-based technology company at least $12.3 million in losses.
A federal grand jury charged the following defendants in a 22-count indictment that was returned on May 23 and was unsealed today:
- Yang Song, 40, of Corona, the alleged ringleader;
- Junwei Jiang, 37, of East Los Angeles;
- Zhengxuan Hu, 26, of Alhambra;
- Yushan Lin, 30, of Corona; and
- Shuyi Xing, 34, of Corona.
All of the defendants are charged with one count of conspiracy to commit wire fraud and mail fraud, one count of aggravated identity theft, seven counts of wire fraud, 12 counts of mail fraud, and one count of conspiracy to traffic in counterfeit goods.
They were arrested on Thursday and are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
“The defendants are accused of taking advantage of Apple’s customer-service policies to steal more than $12 million in merchandise,” said United States Attorney Martin Estrada. “Companies should not be victimized and defrauded for being responsive to customer needs, and these federal charges send a message that our office will take decisive action to uncover and prosecute those who perpetrate fraud.”
“Protecting American ingenuity, ensuring economic security, and shielding the consumers across the nation is a top priority for Homeland Security Investigations,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Due to the outstanding work of HSI Los Angeles with our law enforcement and private sector partners targeting this large-scale fraud operation, we have prevented millions of dollars from lining the pockets of this transnational criminal organization.”
“The defendants allegedly sought to introduce more than 16,000 fraudulent devices into Apple’s product line with the purpose of exchanging them for genuine devices to be sold for profit,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI follows the money, and our expertise helps us safeguard U.S. businesses when faced with fraud. We are committed to our partnerships with fellow law enforcement agencies like Homeland Security Investigations to protect our country’s commerce ecosystem by investigating those who seek to take advantage of businesses’ consumer protection programs.”
According to the indictment, from at least December 2015 to March 2024, Song and Jiang coordinated with co-conspirators in China to ship counterfeit Apple iPhones, iPads, and other devices to them and other U.S.-based co-conspirators. The counterfeit Apple devices shipped to Song, Jiang, and others in the U.S. were designed to look like genuine Apple devices and included identification numbers matching the numbers on real Apple products that had been sold in North America, were owned by real people, and were under warranty through Apple’s manufacturer warranty and AppleCare+, Apple’s extended warranty program.
The defendants allegedly then fraudulently returned the counterfeit iPhones, iPads, and other devices to Apple as if they were genuine and had been legitimately purchased, were eligible for Apple’s warranty programs, and as if they were the lawful possessor of the Apple devices. The real identification numbers and serial numbers on the counterfeit devices that defendants allegedly retuned were designed to essentially impersonate the real Apple devices owned by real people throughout the United States, which defrauded Apple’s warranty programs and potentially deprived the Apple devices’ lawful owners of the warranty benefits to which they were entitled.
The defendants allegedly knowingly and fraudulently represented that the counterfeit Apple devices they returned were genuine but were broken or non-operational and were covered by the company’s warranty programs. Some of the false reasons given to Apple store employees were because the devices purportedly would not power on, were physically damaged, or had other defects. But the defendants allegedly knew that the Apple devices they were returning were counterfeit and fraudulently used the identification numbers and serial numbers of real people’s Apple devices to victimize both Apple and the device owners.
As part of the scheme, the defendants allegedly visited multiple Apple stores throughout Southern California, including Apple stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos and at shopping malls such as The Grove in Los Angeles, South Coast Plaza in Costa Mesa, Fashion Island in Newport Beach, and The Americana at Brand in Glendale. In many cases, they would drive all over Southern California in a single day and visit as many as 10 different Apple stores where they would allegedly return counterfeit devices.
Once at the Apple stores, Apple employees then either replaced or repaired the counterfeit Apple device with a genuine Apple device in the same visit or, on other occasions, took the defendants’ counterfeit devices and ship them to a repair center. Apple then shipped to the defendants a genuine replacement Apple device or a repaired device to either an Apple store, where the defendants returned to pick up the new device or at the dozens of mailboxes that the defendants allegedly rented across Southern California.
As part of the scheme, the defendants allegedly took multiple steps to disguise their identities and hide their fraud over the years. For example, they allegedly rented dozens of mailboxes at UPS stores across Southern California for use in the scheme, including to receive counterfeit devices from China and receive genuine replacement devices from Apple. They allegedly also misspelled the mailing addresses they provided to Apple and added or removed extra characters to the mailing addresses, to disguise the fact that they were processing numerous fraudulent returns of Apple devices. Other times, they allegedly used aliases to make appointments at Apple stores to process their fraudulent returns of devices.
After successfully returning the counterfeit Apple devices for genuine ones, the defendants allegedly shipped the genuine devices to co-conspirators both in the United States and abroad, primarily in China, where the genuine Apple devices were resold at a substantial profit.
In total, the defendants fraudulently returned and attempted to return more than 16,000 counterfeit Apple devices, causing Apple at least $12.3 million in losses.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would face a statutory maximum sentence of 20 years’ imprisonment on each of the conspiracy to commit mail and wire fraud, wire fraud, and mail fraud charges, a statutory mandatory minimum sentence of two years’ imprisonment for the aggravated identity theft charge, and a statutory maximum sentence of 10 years’ imprisonment on the conspiracy to traffic counterfeit goods charge.
Homeland Security Investigations and IRS Criminal Investigation are investigating this matter. The United States Postal Inspection Service and the Los Angeles Police Department provided substantial assistance.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Charlotte Man Sentenced to Federal Prison for Fraudulent Real Estate SchemeRead the Press Release
GREENVILLE, S.C. —Dennis S. Lepka, Jr., 42, of Charlotte, North Carolina, was sentenced to six and a half years in federal prison for his role in a real estate fraud scheme.
The Federal Bureau of Investigation (FBI) began an investigation after they received multiple complaints that Lepka was engaging in fraudulent real estate transactions. Lepka’s business model was built upon misleading both sellers and buyers of residential properties. He promised the sellers that he would purchase their home and take over their outstanding mortgage. In some instances, Lepka told them they would stay on the mortgage as a credit repair service. He assured the buyers that they were in a rent-to-own agreement with Lepka. In truth, Lepka did not own the properties he was selling. He concealed information about existing mortgages from the buyers and did not disclose to the banks holding mortgages that real estate transactions were taking place. He required the buyers to provide substantial down payments and then make monthly payments to him. Lepka did not make the mortgage payments to the original lenders and multiple properties went into foreclosure. Some victims became homeless as a result.
Evidence showed that Lepka targeted members of the Hispanic community because of their immigration status. Lepka believed that victims without legal status would be reluctant to report fraud to the authorities. Lepka also expressed to his victims that they should trust him because he was a practicing Christian. Victims who spoke at the sentencing expressed hurt that Lepka appealed to their faith to lure them into transactions.
United States District Judge Timothy M. Cain sentenced Lepka to 78 months imprisonment. He also ordered him to pay $2,020,213.50 in restitution. There is no parole in the federal system.
This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Bill Watkins prosecuted the case.
###
Cedar Rapids Man Sentenced to Federal Prison for Methamphetamine Distribution and Money Laundering CrimesRead the Press Release
A man who conspired with others to distribute methamphetamine and launder proceeds from trafficking drugs was sentenced May 30 to 30 years in federal prison.
Albert McReynolds, age 35, from Cedar Rapids, Iowa, received the prison term after a November 2, 2023, jury verdict finding him guilty of one count of conspiracy to distribute methamphetamine, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction involving property derived from unlawful activity.
The evidence at trial showed that McReynolds was a methamphetamine dealer in the Cedar Rapids area. Between September 2020 and November 2021, McReynolds worked with others to distribute methamphetamine. The evidence at trial showed that McReynolds and one of his coconspirators, Calvin Williams, traveled to California to meet with another person to get methamphetamine. Following the meeting, the source of supply in California sent packages containing methamphetamine through the United States Postal Service to several addresses in Cedar Rapids. McReynolds had the packages sent to other individuals’ addresses to avoid having the methamphetamine delivered directly to him. Investigators intercepted and searched three packages that were mailed from California to addresses associated with McReynolds in Cedar Rapids. In each of those packages, investigators located multiple pounds of methamphetamine. In total, investigators identified 46 packages mailed from California to the Cedar Rapids area between September 2020 and November 2021 that all shared similar characteristics to the packages that investigators intercepted and searched. These 46 packages had a combined total mailing weight of over 700 pounds.
The evidence at trial showed that, between October 2020 and November 2021, McReynolds also conspired with others to commit money laundering. McReynolds and others distributed the methamphetamine McReynolds received from California. McReynolds vacuum-sealed the money that he made from selling methamphetamine, and McReynolds and Williams sent packages containing cash through the United States Postal Service to multiple different addresses associated with the methamphetamine source in California. McReynolds and Williams placed fake names and addresses on the return labels of the packages containing the cash so law enforcement would not be able to link McReynolds and others to those packages. On July 28, 2021, McReynolds mailed a package from Cedar Rapids to an address associated with his source in California. Investigators intercepted and searched that package and located $56,470 in cash.
McReynolds was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. McReynolds was sentenced to 360 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
McReynolds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Adam J. Vander Stoep and Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the United States Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA) Task Force. The DEA Task Force consists of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-91-CJW.
Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of FirearmsRead the Press Release
A prohibited person who possessed firearms pled guilty today in federal court in Cedar Rapids, Iowa.
Kyler Goettsch, age 26, of Cedar Rapids, was convicted of one count of being a prohibited person in possession of firearms. At the plea hearing, Goettsch admitted that, in November 2023, he possessed a Springfield pistol and a Sig Sauer pistol after having been convicted of four felonies and a misdemeanor crime of domestic violence.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Goettsch remains in custody of the United States Marshal pending sentencing. Goettsch faces a possible maximum sentence of fifteen years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 24-16.
Follow us on Twitter @USAO_NDIA.
California Resident Sentenced for Federal Drug ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Marco Antonio Naranjo-Aguilar, age 30, of Sacramento, California, was sentenced to 235 months for one count of Possession with Intent to Distribute Methamphetamine.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
On January 9, 2023, Naranjo-Aguilar pleaded guilty to the charge. According to investigators, on January 20, 2022, Naranjo-Aguilar led officers on a high-speed pursuit on Oklahoma Interstate Highway 40 in Sequoyah County, Oklahoma. Upon apprehending and arresting Naranjo-Aguilar, law enforcement seized approximately 22.3 kilograms of methamphetamine from his vehicle.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Naranjo-Aguilar was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Brooklyn Man Charged with Gunpoint Robbery of Postal WorkerRead the Press Release
Earlier today, a ten-count indictment was unsealed charging the defendant Alfonso Forney with robbery of a postal worker, a related firearms offense, mail theft related offenses, wire fraud, bank fraud, access device fraud and aggravated identity theft. The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Joseph A. Marutollo at the federal courthouse in Brooklyn.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS) announced the charges.
“The safety of our mail carriers is essential to assuring the unobstructed flow of goods, checks and information through the United States Postal Service,” stated United States Attorney Breon Peace. “The defendant’s pattern of violent behavior endeavored to turn this vital system into his own personal pipeline for theft and fraud.”
USPIS Inspector-in-Charge Daniel B. Brubaker said, “Our highest priority as postal inspectors is the safety of our employees, especially our letter carriers who are out on the streets every day delivering for the American public. They deserve to be protected from violent criminals who prey on these hardworking public servants that serve our communities. Today’s arrest of this alleged armed robber and mail thief is proof of this fact: postal inspectors working alongside our law enforcement partners in the NYPD, and the U.S. Attorney’s Office, Eastern District of New York, will relentlessly pursue violent criminals wherever they lurk. No matter how long it takes, no matter where they hide, we will find them and bring them to justice for their alleged crimes.”
As alleged in the indictment and other court papers, the defendant engaged in both a robbery and mail theft scheme as well as an identity theft scheme.
With respect to the robbery and mail theft scheme, between January 2023 and December 2023, the defendant and others committed gunpoint robberies of United States Postal Service mail carriers to obtain arrow keys, which are universal keys that allow mail carriers to access various postal boxes within a certain geographic area. The defendant and others used the keys to steal mail, including checks from the mail, which were subsequently deposited into the defendant’s bank accounts or otherwise cashed.
With respect to the identity theft scheme, between January 2024 and March 2024, the defendant misrepresented himself as another individual (the “Victim”) to fraudulently gain access to the Victim’s bank accounts. He did so by changing the address on the Victim’s driver’s license to his own address, and then ordering a duplicate of that driver’s license to his residence. After gaining access to the Victim’s bank accounts, the defendant withdrew at least $245,000 and deposited a portion of the funds into his own bank accounts. The defendant also used the Victim’s identity to obtain an automobile loan for approximately $25,000, which the defendant used to purchase a vehicle in the Victim’s name.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 39 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution, with the assistance of Paralegal Specialist Stephanie Heyward.
The Defendant:
ALFONSO FORNEY
Age: 45
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-220 (KAM)
# # #
Boston Man Sentenced to over Two Years in Prison for Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Boston man was sentenced today for unlawfully possessing a firearm and ammunition.
Victor Florentino, 29, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison to be followed by three years of supervised release. In December 2023, Florentino pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking. Florentino had completed federal supervised release two months prior to being arrested in April 2022.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Binghamton Man Sentenced on Federal Gun and Drug ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Dupray Jordan, 34, of Binghamton, was sentenced yesterday to serve 97 months in federal prison for possessing fentanyl and methamphetamine with intent to distribute, possessing a firearm in furtherance of drug trafficking, and possessing a firearm and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, Bryan Miller, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Sergeant Daniel VanWie of the Broome County Special Investigations Unit Task Force (BCSIUTF).
In pleading guilty previously, Jordan admitted that he possessed for distribution methamphetamine and fentanyl, as well as a loaded .38 caliber revolver in a Binghamton apartment on November 12, 2021. Jordan threw the gun to the ground as police entered to execute a search warrant at the apartment on that date. The defendant was at that time a convicted felon, having previously been convicted in New York state court of Assault in the Second Degree.
Dupray Jordan was also sentenced yesterday to serve a post-incarceration term of supervised release of 3 years following his release from federal prison.
This case was investigated by the Broome County Special Investigations Unit Task Force, (consisting of members of the City of Binghamton Police Department, the Broome County Sheriff’s Department, and the Johnson City Police Department), the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the United States Postal Inspection Service. The Broome County Metro SWAT Team assisted in the execution of the search warrant.
Assistant U.S. Attorney Richard Southwick prosecuted this case as 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.
Atchison man charged with sex traffickingRead the Press Release
KANSAS CITY, KAN. – A Kansas man made his initial appearance after a federal grand jury in Kansas City, Kansas, indicted him on multiple charges related to sex trafficking multiple victims, including children.
According to court documents, Elijah Z. Haley, 21, of Atchison was indicted on two counts of sex trafficking of a child, two counts of sex trafficking accomplished by force, fraud, or coercion, two counts of transportation with intent to engage in criminal sexual activity, and two counts of transportation for illegal sexual activity.
The defendant made his initial court appearance before U.S. Magistrate Judge Angel D. Mitchell of the U.S. District Court for the District of Kansas.
The Federal Bureau of Investigation (FBI), Kansas Highway Patrol, Atchison, Kansas Police Department, and the Boone County, Missouri Sheriff’s Office investigated the case.
Assistant U.S. Attorney Audrey McCormick is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###As MMIP Awareness Month Draws to a Close, U.S. Attorney's Office Reaffirms Its Commitment to Public Safety in Indian CountryRead the Press Release
SIOUX FALLS - It has long been a priority of the U.S. Attorney’s Office to address the disproportionately high rates of violence experienced by Native Americans living in reservations in our state, and relatedly, the high rates of indigenous persons reported missing. As Missing and Murdered Indigenous Persons (MMIP) Awareness Month draws to a close, the U.S. Attorney’s Office renews its commitment to work with federal, tribal, state, and local law enforcement partners to respond to the crisis of violence and abuse in our tribal communities with the urgency these matters demand.
In the last year, the U.S. Attorney’s Office has demonstrated its commitment by securing additional resources for Indian country prosecutors, including an MMIP AUSA that is now located in Pierre and serving the Great Plains Region. We have resolved previously unsolved cases, including the 1992 murder of a minor victim in Roberts County. First Assistant U.S. Attorney Gregg Peterman served as a Department of Justice representative on the Not Invisible Act Commission, which held seven in-person hearings and one national virtual hearing. In all, the Commission heard from 260 witnesses who shared their suffering and hope, expertise, experiences, and recommendations. In November of 2023, the Commission published “Not One More: Findings & Recommendations of the Not Invisible Act Commission,” which detailed their findings and included hundreds of recommendations to the Departments of Justice and Interior. As Chair of the AGAC’s Native American Issues Subcommittee, U.S. Attorney Ramsdell participated in and led national conversations about the Department of Justice’s response to this report, including at the White House Tribal Nations Summit in December 2023.
And throughout the year, the U.S. Attorney’s Office engaged in regular outreach to tribal communities to address MMIP issues and other public safety concerns, including at tribal council meetings, school assemblies, tribal law enforcement trainings, tribally organized conferences, and community forums. Lastly, federal prosecutors and victim witness specialists engaged in monthly multi-disciplinary team (MDT) meetings in each reservation, and the District’s Law Enforcement Coordinator joined with federal prosecutors and investigators to conduct in-person opioid training for federal, tribal, state, and local law enforcement in Rosebud, Eagle Butte, Pine Ridge, Yankton, and Mobridge.
Most recently, on May 14, 2024, the U.S. Attorney’s Office hosted a Tribal MMIP Summit in Pierre, SD, to introduce tribal leaders to the concept of Tribal Community Response Plans (TCRP), which are guides for how tribal communities will respond to reports of missing persons. Importantly, the development of these plans is led by Tribes, allowing each Tribe to incorporate culturally appropriate protocols into every aspect of the TCRP. Leadership from all nine South Dakota Tribes were invited to the Summit, where participants heard presentations from federal and state law enforcement partners, including the FBI, U.S. Marshal’s Service, Social Security Administration, and the South Dakota Division of Criminal Investigation, as well as prosecutors and personnel from within the U.S. Attorney’s Office and the South Dakota Attorney General’s Office.
Participants also heard from members of the Fort Peck Tribes, including Fort Peck’s chief tribal judge, lead criminal investigator, and Chief of Police, who jointly discussed the challenges and advantages to developing a TCRP and other opportunities for cross-jurisdictional collaboration with state and federal partners. Lastly, representatives from the National Criminal Justice Training Center of Fox Valley Technical College were in attendance to discuss training and technical assistance available to Tribes, including resources to assist with the development of TCRPs. Representatives also discussed the availability of AMBER Alert training to improve the investigative response of local law enforcement to high-risk victims and children in crisis. As part of this outreach, each Tribe received AMBER Alert in Indian Country Toolkits, which will assist officers in quickly gathering necessary information to ensure AMBER Alerts and NCIC entries include as much information as possible. Items included tools such as mobile printers, scanners, and hotspots.
This engagement follows on decades of work by the U.S. Attorney’s Office for the District of South Dakota to develop meaningful relationships with tribal leaders and their communities. “The U.S. Attorney’s Office has been unwavering in its commitment to improving public safety in Indian country,” said U.S. Attorney Alison J. Ramsdell. “We remain committed to listening closely to tribal communities and working collaboratively with our federal, state, local, and tribal law enforcement partners to address public safety concerns throughout Indian country.”
Art Dealer Found Guilty of Embezzling More Than $260,000 from the Bankruptcy Estate of Miracle Mile and Beverly Hills Art GalleryRead the Press Release
LOS ANGELES – An internationally-known art dealer was found guilty by a jury today of embezzling more than $260,000 from the bankruptcy estate of Ace Gallery Los Angeles, an art gallery located in Beverly Hills and Los Angeles, while acting as the estate’s trustee and custodian.
Douglas J. Chrismas, 80, of the Mid-Wilshire area of Los Angeles, was found guilty of three counts of embezzlement against a bankruptcy estate.
Chrismas was the president and CEO of Art and Architecture Books of the 21st Century, which did business as Ace Gallery and had offices located in the Miracle Mile area of Los Angeles as well as in Beverly Hills.
According to evidence presented at a four-day trial, in February 2013, Ace Gallery filed a Chapter 11 bankruptcy petition in Los Angeles and continued to operate while in bankruptcy with Chrismas acting as its fiduciary and trustee. Chrismas remained in control over Ace Gallery until April 2016, when the bankrutpcy court appointed an independent trustee to run Ace Gallery’s bankruptcy estate and Chrismas was removed.
In late March and early April of 2016, Chrismas embezzled approximately $264,595 that belonged to the Ace Gallery bankruptcy estate, including a $50,000 check that Chrismas signed, was drawn against the estate, and was paid to Ace Museum, a separate non-profit corporation that Chrismas owned and controlled.
Chrismas also embezzled $100,000 owed to Ace Gallery by a third party for the purchase of artwork. Instead, the funds were paid – at his direction – to Ace Museum. Finally, Chrismas embezzled approximately $114,595 owed to the gallery by a third party that purchased artwork, but which Chrismas instead had paid to Ace Museum’s landlord to keep current with its $225,000 monthly rent.
United States District Judge Mark C. Scarsi scheduled a September 9 sentencing hearing, at which time Chrismas will face a statutory maximum sentence of five years in federal prison for each count.
The FBI’s Art Crime Team investigated this matter.
Assistant United States Attorneys Valerie L. Makarewicz of the Major Frauds Section and David W. Williams of the Criminal Appeals Section are prosecuting this case.
Arcadia Man and Eight Co-Conspirators Sentenced for Committing Multiple Armed Robberies, Home Invasions, Shootings While Dressed as Police OfficersRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle today sentenced Darius Hudson (44, Arcadia) to 39 years and 2 months in federal prison for conspiracy to commit Hobbs Act robbery, three separate Hobbs Act robberies, and brandishing and discharging a firearm during the commission of those robberies. On January 22, 2024, a federal found Hudson guilty as charged. He is the last of his co-conspirators to be sentenced in the conspiracy.
Name
(Age, City of residence)
Sentence Imposed
Reginald Roberts, Jr.
a/k/a “Rudy”
(24, Lakeland)
41 years
Darius Hudson
a/k/a “Toot”
(44, Arcadia)
39 years, 2 months
Nathaniel Keith Carr
a/k/a “Nate”
(24, Avon Park)
26 years, 6 months
Daniel Jackson
a/k/a “D-Jack”
(31, Winter Haven)
22 years, 11 months
Chrishawn Butler
a/k/a “Baby”
(24, Bartow)
20 years, 6 months
Jeremy Bernard Hazelton
“Presto”
(28, Bartow)
15 years, 8 months
O’Marie Danyell Hudson
a/k/a “Mari”
(26, Orlando)
11 years, 3 months
Jasmine Weber
(30, Deltona)
5 years
Elyana Bazail
a/k/a Cuban
(25, Lakeland)
5 years
According to evidence introduced during the trial, between December 2020 and April 2021, a group of individuals conspired with each other to commit armed robberies throughout Pasco, Polk, Lee, and Hillsborough counties, as well as Georgia and Arizona. Members of this conspiracy, including Hudson, impersonated law enforcement officers by wearing black clothing, gloves, and masks, often with law enforcement insignia, or vests with “Sheriff” affixed. They drove a black SUV equipped with lights, and often handcuffed their victims. During these robberies, victims and their family members were awoken in the middle of the night at home, beaten, pistol whipped, threatened, and, on several occasions, shot. Hudson was identified as the individual who brought a white backpack to his robberies, which he used to store zip ties that he would later use on his victims.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Hillsborough County Sheriff’s Office, the Bartow Police Department, the Lakeland Police Department, the Dade City Police Department, the Cape Coral Police Department, the Pasco Sheriff’s Office, the Hernando County Sheriff’s Office, the Arcadia Police Department, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Amherst man convicted of multiple charges by a federal jury going to prison for more than 25 yearsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Tyrone Pennick, 48, of Amherst, NY, who was convicted by a federal jury of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, possession with intent to distribute, and to distribute, 500 grams or more of cocaine, maintaining a drug premises for the purpose of manufacturing and distributing cocaine, and for committing drug felonies while on conditions of pre-trial release, was sentenced to serve 310 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joel L. Violanti, who handled the prosecution of the case at trial, stated that on November 17, 2016, the Erie County Sheriff’s Office conducted surveillance in the area of Pennick’s residence at 489 Emerson Drive in Amherst. Investigators observed a female leaving the residence carrying an open-top, tote style bag and entering a maroon colored Ford Flex. Investigators continued to monitor the vehicle and noted that Smith began watching the surveillance vehicle closely in the rearview mirror. Smith subsequently began driving in an erratic manor at which point the defendant was observed reaching to the backseat area and moving the tote bag to the front seat. Investigators activated their emergency lights and conducted a traffic stop of the vehicle. Smith was detained and investigators removed what appeared to be two containers containing suspected cocaine from the tote bag.
A search warrant was then executed at Pennick’s residence at 489 Emerson Drive. Investigators recovered a metal press, digital scale, packaging material, a box of rubber gloves, a plastic bag containing disposable dust masks, a vacuum sealer, and a vacuum sealed bag containing $49,990 in U.S. currency concealed in the dishwasher.
The sentencing is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; and the United States Probation Department, under the direction of Chief Probation Officer Timothy Englert.
# # # #
Akron Man Sentenced to 30 Years in Federal Prison for Second Meth Conspiracy ConvictionRead the Press Release
A man who conspired to distribute methamphetamine was sentenced in federal court in Sioux City on May 30, 2024, to 30 years’ imprisonment.
Britt Lander, 42, from Akron, Iowa, was convicted by a jury on December 6, 2023, of conspiring to distribute more than 50 grams of pure methamphetamine. In 2012, Lander was previously convicted of conspiracy to distribute methamphetamine in the United States District Court for the Northern District of Iowa.
The evidence at trial and sentencing showed that Lander, along with others, conspired to receive at least 88 pounds of methamphetamine by mail and vehicle transport from California and Mexico to distribute in the Sioux City and Akron, Iowa areas. Evidence also showed Lander assisted in unloading 5 to 15 pound loads of methamphetamine, and audio/video recordings showed Lander and another using cutting tools to remove 7 kilograms (roughly 15 pounds) of methamphetamine from inside a spare tire that was used to transport the methamphetamine from Mexico.
Sentencing was held before United States District Court Judge Leonard T. Strand. Lander was sentenced to 30 years’ imprisonment and must serve term of 10 years supervised release following imprisonment. There is no parole in the federal system. Lander remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the South Dakota Division of Criminal Investigation, and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4071. Follow us on Twitter @USAO_NDIA.
Adair County Resident Sentenced for Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bradley Jordan Eagle-Tate, age 31, of Stilwell, Oklahoma, was sentenced to 36 months imprisonment for one count of Involuntary Manslaughter in Indian Country.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Federal Bureau of Investigation.
On September 22, 2023, Eagle-Tate pleaded guilty to the crime.
According to investigators, on June 27, 2022, Eagle-Tate crossed into the oncoming lane of Oklahoma Highway 100 in a no-passing zone, clipping one vehicle before colliding head-on with a second vehicle. The driver of the second vehicle died at the scene, and a passenger in the first vehicle was left seriously injured. Eagle-Tate admitted during the plea hearing that he had multiple drugs in his system at the time of the collision and failed to devote full time and attention while driving his motor vehicle. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Eagle-Tate will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
Thursday 30 May 2024
Yazoo City Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Yazoo City man pled guilty today to possessing a firearm as a convicted felon.
According to court documents, Desmond Robinson, 28, was found in possession of a firearm during a traffic stop conducted by the Yazoo City Police Department.
Robinson is scheduled to be sentenced on September 4, 2024, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Samuel Goff is prosecuting the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Woodbridge man pleads guilty to fraudulent check schemeRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pled guilty today to conspiracy to commit bank fraud.
According to court documents, from August 2021 to July 2022, Jason Banks, 27, participated in a scheme to defraud banks by cashing or depositing fraudulent checks. At least one conspirator had obtained a U.S. Postal Service (USPS) arrow key, used by mail carriers to unlock USPS collection boxes, apartment panels, or parcel lockers. The conspirators used the key to steal mail, much of which included checks.
The conspirators created fraudulent checks, either by altering stolen checks or using information from stolen checks to create new fraudulent checks. Banks recruited accountholders who would share their bank account, PIN, and personally identifying information with him, which he would then provide to another conspirator. That conspirator supplied at least one fraudulent paper check to Banks or the other accountholders, who would deposit the fraudulent checks into their accounts. At other times, a conspirator would electronically deposit the fraudulent checks into the accounts of one of the other accountholders.
After the fraud proceeds were deposited, Banks coordinated the transfer of the funds to himself, from which he generally took a percentage and forwarded the rest of the funds to other conspirators.
The overall bank fraud conspiracy caused an actual loss of at least $501,096.15. Banks recruited at least four people to provide their bank account and personally identifying information to the conspirators and shared the personal identifying information of at least 25 individuals, some of whom were victims of identity theft.
Banks is scheduled to be sentenced on Aug. 28 and faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; Kevin Davis, Fairfax County Chief of Police; Ajay Lall, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Kimberly Shartar and Kathleen Robeson are prosecuting 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. 1:24-cr-91.
Weber County Man Behind Bars Following Death Allegedly Caused by FentanylRead the Press Release
Salt Lake City, Utah – A United States Magistrate Judge ordered a Weber County resident to remain in custody following the alleged sell of fentanyl laced pills that led to the death of another person. On May 8, 2024, a federal grand jury returned an indictment charging the defendant.
According to court documents, Cullin Anthony Bullen, 37, of Roy, Utah, was contacted on December 19, 2023, by the victim in a death resulting drug case. As alleged, the victim was purchased “roxies,” which is slang for Roxicodone prescription pills. Bullen purchased 25-30 pills from a third individual for $20 each. Bullen then sold the “roxies” to the victim for $25 per pill. On December 20, 2023, the victim was found dead. The medical examiner’s preliminary report determined the cause of the victim’s death was fentanyl intoxication.
Bullen is charged with distribution of fentanyl resulting in death. His initial court appearance on the indictment was May 29, 2024, at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the United States Drug Enforcement Agency (DEA) and the Tremonton City Police Department.
Special Assistant United States Attorney Ryan N. Holtan of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Vallejo Man Sentenced to over 16 Years in Prison for Selling Methamphetamine and Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — Clarence Courtney, 58, of Vallejo, was sentenced today to 16 years and three months in prison for distribution of methamphetamine and possession of a firearm by a felon, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on three occasions in late 2020, Courtney sourced 100% pure methamphetamine to co-defendant Michael Renay Williams, 62, of Vallejo, who then sold the methamphetamine to an undercover agent. Courtney and Williams possessed more than 3 pounds of methamphetamine upon their arrest. Inside Courtney’s residence, law enforcement seized 200 rounds of ammunition, a Remington 12-gauge shotgun, and an AR-style sniper rifle with no serial number. Courtney, who has four prior felony convictions, was not permitted to possess firearms.
This case was the product of an investigation by the Drug Enforcement Administration, the Vallejo Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations. Assistant U.S. Attorney Cameron Desmond prosecuted the case.
On March 30, 2023, co-defendant Williams pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine. He is scheduled to be sentenced on June 20, 2024.
This case was the result of Operation PEACE, an initiative launched in Vallejo in August 2020 in response to the increased number of homicides, nonfatal shootings, and other violent crimes. Operation PEACE leverages the strength of the federal and local law enforcement agencies by focusing enforcement operations on violent criminals, including those responsible for murders and shootings, and targets those involved in drug trafficking and firearms trafficking.
Utica Man Pleads Guilty to Drug and Money Laundering ChargesRead the Press Release
SYRACUSE, NEW YORK – Willie Alvarado, Jr., age 33, of Utica, New York, pled guilty yesterday to attempted possession with intent to distribute over 500 grams of cocaine, and money laundering.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division made the announcement.
In pleading guilty, Alvarado admitted that, as early as October 2022, he began using the United States Postal Service to receive drug parcels from Puerto Rico. In May of 2023, law enforcement intercepted a package shipped from Puerto Rico and intended for Alvarado which contained two kilograms of cocaine. Alvarado intended to distribute the cocaine upon receipt of the package. Alvarado further admitted that, in September of 2023, he used another individual to launder at least $9,940 of his drug proceeds in an attempt to hide the true source of that money.
At sentencing, Alvarado will face a mandatory minimum of 5 years and a maximum of 40 years in federal prison, a fine of up to $5,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The U.S. Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), and United States Postal Inspection Service are investigating the case with assistance from the New York State Police, Utica Police Department, Oneida County Sheriff’s Office, Onondaga County Sheriff’s Office, Syracuse Police Department, U.S. Immigration and Customs and Enforcement, and Onondaga County District Attorney’s Office. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
U.S. Attorney’s Office and Fulton County District Attorney Office Launch Summer Youth Mentorship ProgramRead the Press Release
ATLANTA – The U.S. Attorney’s Office for the Northern District of Georgia in partnership with the Fulton County District Attorney’s Office will launch the fourth annual Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention Program (“Summer Mentorship Program”). The kick-off for this year’s program will be held on May 31, 2024, at the Atlanta Technical College Preparatory Academy.
“This intensive mentoring program is an investment in our youth that will offer a solid foothold on a path to economic, social, and educational opportunities, while keeping them engaged over the summer,” said U.S. Attorney Ryan K. Buchanan. “Our continued partnerships with community leaders, law enforcement, and families are all vital to successfully reducing recidivism and improving community safety.”
“Every summer during my time as District Attorney, our team has joined with U.S. Attorney Ryan Buchanan and his team to bring the Credible Messenger Program to at-risk youth in Fulton County,” said Fulton County District Attorney Fani Willis. “Our cooperative efforts have made a real difference in getting kids back on track, and we look forward to another summer of working with kids and making Fulton County a safer, more just place for everyone.”
“Community involvement remains the key to maintaining an environment of structure and accountability for our at-risk youth,” said Shawanda Reynolds-Cobb, Commissioner of the Department of Juvenile Justice. “Over the past several years, Project Safe Neighborhood has become an invaluable tool in promoting positive outcomes through reduced recidivism.”
The Summer Mentorship Program will engage youth between the ages of 15 and 19 who are on felony probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement, and an evidence-based, cognitive-behavioral, life-skills session utilizing the Forward Thinking and Project EGRESS curriculum. This year, participants will also be encouraged to simultaneously enroll in Atlanta Technical College’s Dual Achievement Program to earn a high school diploma while also obtaining a technical certificate in a specific career pathway. Youth who actively participate each day will also receive a weekly stipend for their work.
This initiative is being implemented by the Southeast Credible Messengers and the PSN Prevention and Reentry program of the U.S. Attorney’s Office. Southeast Credible Messengers is a community-based collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative is led by the Offender Alumni Association (OAA), Inc.
We would also like to thank leadership from the Georgia Department of Juvenile Justice Office of Reentry Services, Fulton County Juvenile Court, the City of Atlanta Cure Violence Initiative, the Credible Messenger Mentoring Movement (CM3), Emerging 100 of Atlanta, the Rocket Foundation, and the local business community for their continued partnership and support of the summer program.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Will Thompson to Announce Guilty Plea by Former Williamson Mayor and Hospital CEORead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will join with law enforcement officials on Thursday, May 30, 2024, at 4 p.m. for a press conference to discuss the guilty plea scheduled earlier in the afternoon in U.S. vs. Charles Hatfield.
WHAT: Press Conference for U.S. vs. Charles Hatfield
WHEN: Thursday, May 30, 2024, at 4 p.m.
WHERE: Front Plaza, Robert C. Byrd U.S. Courthouse, Charleston
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
###
Two Plead Guilty to Making False Statements to Government InvestigatorsRead the Press Release
CONCORD – An Amherst man and a Bedford woman pleaded guilty in federal court to charges arising out of their making false statements to the Veterans Administration (VA) during its investigation into StoneMakers Academy, U.S. Attorney Jane E. Young announces.
David Montoya, 64, and Rhonda Simpson, 55, pleaded guilty to conspiracy to make false statements to a government agency. U.S. District Court Judge Paul Barbadoro scheduled sentencing for Simpson on September 11, 2024 and for Montoya on September 24, 2024.
Montoya was the owner and president of StoneMakers Corporation, while Simpson served as its registered agent, vice president, and in-house counsel. From its inception, a portion of StoneMakers Corporation’s business involved marketing and selling training in its concrete landscape methods under the name StoneMakers Academy. StoneMakers Academy was enrolled with the VA such that the VA would pay tuition and fee payments for eligible veterans under the Post 9/11 GI Bill. A school is ordinarily eligible to receive tuition payments for veteran students in a particular course only if the students receiving benefits total no more than 85% of the total amount of students who are enrolled in that course. That is, a school is not eligible to receive tuition payments unless at least 15% of the students who are enrolled in the course are non-veterans who are not receiving discounts to their tuition. This is commonly known as the “85-15 Rule.” In addition, a school may not charge more for veterans to attend a course than it charges civilians to attend the same course. Any school that violates “the same tuition rule” is subject to suspension or dismissal from the program.
In or about January 2018, the VA Office of Inspector General (VA-OIG) commenced an investigation into StoneMakers Academy’s receipt of VA tuition assistance funds for the purpose of providing education and training to eligible veterans. The defendants took steps to conceal StoneMakers Academy’s past violations of the 85/15 Rule and same tuition rule from the VA-OIG, including through the creation of false and misleading documents to conceal the fact that past educational programs offered by StoneMakers Academy had been in violation of the 85-15 Rule.
The charging statute provides a sentence of no greater than 5 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The VA-OIG led the investigation. Assistant U.S. Attorneys Charles L. Rombeau and Raphael Katz are prosecuting the case.
###
Two Estonian defendants indicted in massive cryptocurrency Ponzi scheme extradited to U.S.Read the Press Release
Seattle –Two Estonian citizens will appear in U.S. District Court in Seattle at 2:00 PM today following their extradition from Estonia, announced U.S. Attorney Tessa M. Gorman.
Sergei Potapenko and Ivan Turõgin, both 39, were arrested in Tallinn, Estonia on November 20, 2022, on an 18-count indictment from the Western District of Washington charging conspiracy, wire fraud, and conspiracy to commit money laundering. The Estonian government authorized extradition. Late last week the Estonian Supreme Court declined to intervene in the extradition proceeding, clearing the way for the defendants’ removal to the United States. The FBI escorted the defendants to the United States.
According to the indictment, Potapenko and Turõgin, are alleged to have induced hundreds of thousands of victims to purchase contracts in a cryptocurrency mining service called HashFlare. Victims paid more than $575 million to the defendants’ companies. The defendants then used shell companies to launder the fraud proceeds and to purchase real estate and luxury cars.
According to the indictment, Potapenko and Turõgin claimed that their business, HashFlare, operated a massive cryptocurrency mining operation. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit. The defendants offered contracts under which customers could pay a fee to rent a percentage of HashFlare’s mining operations in exchange for the virtual currency produced by their portion of the operation. Customers from around the world, including from western Washington, bought more than $550 million worth of HashFlare contracts between 2015 and 2019.
HashFlare allegedly did not have the virtual currency mining equipment it claimed to have. In fact, according to the indictment, HashFlare’s equipment performed Bitcoin mining at a rate of less than one percent of the computing power it purported to have. When investors asked to withdraw their mining proceeds, the defendants were not able to pay with the mined currency as promised. Instead, the defendants either resisted making the payments, or paid off the investors using virtual currency the defendants had purchased on the open market—not currency they had mined. HashFlare closed its operations in 2019.
In May 2017, Potapenko and Turõgin offered investments in a company called Polybius, which they said would form a bank specializing in virtual currency. The defendants promised to pay investors dividends from Polybius’ profits. The men raised at least $25 million in this scheme and transferred most of the money to other bank accounts and virtual currency wallets they controlled. Polybius never formed a bank or paid any dividends.
The indictment also charges the defendants with conspiring to launder their criminal proceeds by using shell companies and phony contracts and invoices. The indictment alleges that the money laundering conspiracy involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.
The men are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering. Each of these crimes is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating the case.
The United States thanks the Cybercrime Bureau of the National Criminal Police of the Estonian Police and Border Guard for its support with this investigation. The U.S. Department of Justice’s Office of International Affairs (OIA) provided extensive assistance to the investigation and in securing the arrests and extraditions. U.S. Customs and Border Protection (CBP) assisted in facilitating the defendants’ entrance to the United States.
This investigation and arrests demonstrate the great cooperation between U.S. and Estonian law enforcement. Estonia has been a crucial ally to disrupt this cyber-enabled crime, and the United States thanks the Estonians for their continued assistance.
Assistant United States Attorneys Seth Wilkinson and Sok Jiang of the Western District of Washington, and Trial Attorneys Adrienne E. Rosen and David Ginensky of DOJ’s Money Laundering and Asset Recovery Section are prosecuting the case. Assistant United States Attorney Jehiel Baer of the Western District of Washington is handling asset forfeiture aspects of the case.
Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare for more information.
Two Estonian Nationals Extradited from Estonia to the United States for $575M Cryptocurrency Fraud and Money Laundering SchemeRead the Press Release
Two Estonian nationals will make their initial appearance in the U.S. District Court in Seattle at 5:00 p.m. EDT today following their extradition from Estonia to the United States to face criminal charges related to their roles in a massive multi-faceted cryptocurrency Ponzi scheme.
Sergei Potapenko and Ivan Turõgin, both 39, were arrested on Nov. 20, 2022, in Tallinn, Estonia, on an 18-count indictment filed in the Western District of Washington.
According to the indictment, Potapenko and Turõgin allegedly induced hundreds of thousands of victims to purchase contracts entitling them to a share of virtual currency mined by the defendants’ purported cryptocurrency mining service, HashFlare. Potapenko and Turõgin allegedly claimed HashFlare operated a massive cryptocurrency mining operation. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit. Potapenko and Turõgin allegedly offered contracts which, for a fee, allowed customers to rent a percentage of HashFlare’s purported mining capacity. In exchange, HashFlare agreed to pay out the virtual currency produced by the contract holders’ portion of the operation. Between 2015 and 2019, customers from around the world allegedly entered into more than $550 million worth of HashFlare contracts.
However, HashFlare allegedly did not have the virtual currency mining equipment it professed to have and engaged in less than one percent of the Bitcoin mining activity it claimed. According to the indictment, when investors asked to withdraw their mining proceeds, Potapenko and Turõgin could not pay the investors with the mined currency they had promised. Instead, Potapenko and Turõgin either resisted making the payments or paid off the investors using virtual currency they purchased on the open market—not currency they had mined. According to the indictment, Hashflare continued offering contracts for virtual currency mining through August 2019.
In May 2017, Potapenko and Turõgin offered investments in a company called Polybius, which they said would form a bank specializing in virtual currency. Potapenko and Turõgin allegedly promised to pay investors dividends from Polybius’ profits. Potapenko and Turõgin raised at least $25 million and used approximately $7 million of HashFlare proceeds in this scheme and allegedly transferred most of the money to other bank accounts and virtual currency wallets they and their co-conspirators controlled. Polybius never formed a bank or paid any dividends.
Victims of the defendants’ schemes paid more than $575 million to the Potapenko and Turõgin companies. Potapenko and Turõgin allegedly used shell companies and phony contracts and invoices to launder the fraud proceeds and to purchase real estate and luxury cars. The indictment alleges that the money laundering conspiracy involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.
Potapenko and Turõgin are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Tessa M. Gorman for the Western District of Washington; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office made the announcement.
The FBI is investigating the case.
The United States thanks the Cybercrime Bureau of the National Criminal Police of the Estonian Police and Border Guard for its support with the investigation. The Justice Department’s Office of International Affairs provided significant investigative assistance and in securing the arrest and extradition of Potapenko and Turõgin. U.S. Customs and Border Protection also assisted in facilitating the defendants’ entrance to the United States.
Trial Attorneys Adrienne E. Rosen and David Ginensky of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Seth Wilkinson and Sok Jiang for the Western District of Washington are prosecuting the case. Assistant U.S. Attorney Jehiel Baer for the Western District of Washington is handling asset forfeiture aspects of the case.
Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.