Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 29 May 2024
International Gun Traffickers Who Acquired Guns in South Carolina Sentenced to Federal PrisonRead the Press Release
GREENVILLE, S.C. — Marlon Michael Bruff, of Fairburn, Georgia, Ramaro Alsworth Higgins, of Los Angeles, California, and Reuben Dunn, of Anderson, South Carolina, were sentenced to federal prison for helping to run a gun trafficking operation, which bought guns in multiple southern states and smuggled them into Canada. Bruff and Higgins were also convicted of conspiracy to distribute marijuana. Four other defendants have also been convicted and sentenced in connection with the case.
Evidence presented to the court showed that in June of 2021, an officer with the Duncan Police Department stopped a Sprinter van traveling north on Interstate 85. A search of the van revealed suitcases containing 73 pistols, including 39 guns with obliterated serial numbers. The driver of the vehicle claimed that she was transporting personal protective equipment (PPE) for APA Logistics, a company owned by Bruff, which was used as a front for criminal activities. Investigators also discovered hidden compartments in the van, which contained marijuana. Bruff was driving alongside the van in a separate vehicle and was not initially arrested.
Over the course of a multi-year investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), law enforcement learned that Bruff, Higgins, Dunn, and several others were involved in a scheme to buy guns in Georgia, Florida, and South Carolina and to smuggle them across the border into Canada, where several of the guns have been recovered in connection with violent crimes. Members of the conspiracy also obtained marijuana from Canada, which was sold in the United States and used to fund the purchase of additional guns. Bruff and Higgins recruited straw purchasers and traveled throughout the United States to transport the guns and traffic marijuana. In May of 2021, they were stopped in North Carolina with over 20 pounds of marijuana and over $37,000.00 in cash. Dunn assisted the organization by acquiring guns, which the smugglers picked up from his home in Anderson, South Carolina.
“South Carolina will play no part in illegal gun trafficking,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Our office will continue to work to ensure the safety of our community and our neighbors.”
“Illegal firearms trafficking is a serious threat to communities everywhere,” said ATF Special Agent in Charge Bennie Mims. “ATF and our law enforcement partners continue to make the prevention of illegal firearms sales a top priority. Stopping illegal firearms sales and disrupting gun trafficking networks plays a critical role in preventing violent gun crime and keeping neighborhoods safe.”
United States District Judge Donald C. Coggins sentenced Bruff to 120 months in prison, Higgins to 48 months in prison, and Dunn to 27 months in prison, with all of the sentences to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Department of Commerce’s Bureau of Industry and Security, Homeland Security Investigations (HSI), Customs and Border Protection (CBP), the Duncan Police Department, and several Canadian law enforcement agencies. Assistant U.S. Attorney Chris Schoen is prosecuting the case.
*Note: an earlier version of this release included reference to the Bipartisan Safer Communities Act in error. It has been removed.
Houston Man Appears in New Mexico Federal CourtRead the Press Release
ALBUQUERQUE – Alek Isaiah Collins, 26, appeared before a federal judge in Albuquerque this morning for arraignment on an indictment charging him with kidnapping of a minor and discharging a firearm in furtherance of a crime of violence in connection with the double homicide of two female victims in Clovis, New Mexico. Collins was detained pending trial, which has not yet been scheduled.
According to publicly available court documents, on May 3, 2024, two women were found dead, and a child wounded at a park in Clovis, New Mexico, with a 10-month-old baby missing. One of the homicide victims was the mother of the two young children.
Evidence linked a maroon Honda rented by Collins to the scene. Collins was tracked to Abilene, Texas, where he carjacked an Uber driver. Police pursued and arrested Collins, safely recovering the child.
Collins has no relation to the child and does not have legal custody of the child.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office investigated this case with assistance from the New Mexico State Police, Clovis Police Department, Abilene Texas Police Department Narcotics Unit, Curry County Sheriff’s Office, Roosevelt County Sheriff’s Office, Roswell Police Department, Portales Police Department, the Ninth Judicial District Attorney’s Office, FBI Dallas Field Office, FBI Amarillo Resident Agency and FBI Abilene Resident Agency. Assistant United States Attorneys Jaymie L. Roybal and Joseph Spindle are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
Houma Man Pleads Guilty to Making False Statements to Federal AgentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DONDRE MORGAN, (“MORGAN”), age 32, of Houma, LA, pled guilty on May 28, 2024 to Making False Statements to Federal Agents, in violation of Title 18, United States Code, Section 1001(a)(2). MORGAN faces a maximum penalty of five (5) years, followed by a term of supervised release for up to three (3) years, a fine up to $250,000.00, or twice the gross gain to the defendant, or twice the gross loss to any victim, and a $100.00 mandatory special assessment fee.
According to court documents, on April 7, 2022, MORGAN made materially false statements to special agents with the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division. Specifically, MORGAN lied about his involvement and participation in a Paycheck Protection Program (PPP) loan fraud scheme.
Sentencing for MORGAN is scheduled for September 10, 2024 before United States District Judge Darrel James Papillion.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. The Department of Veterans Affairs, Office of the Inspector General, is an active member of the PRAC Fraud Task Force.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The United States Attorney’s Office would also like to acknowledge the assistance of the Department of Veteran Affairs, Office of the Inspector General; United States Department of Labor, Office of the Inspector General; United States Department of Homeland Security, Homeland Security Investigations; and the United States Secret Service’s Cyber Fraud Task Force, consisting of the Jefferson Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Thibodeaux Police Department, and the Louisiana Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant United States Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant United States Attorney Edward Rivera, COVID-19 Fraud Coordinator of the Financial Crimes Unit; and Assistant United States Attorney Mary Katherine Kaufman, of the General Crimes Unit.
Heavily Armed Carrollton Fentanyl Supplier Sentenced to 15 YearsRead the Press Release
A major source of supply in the Carrollton juvenile fentanyl overdose case, which has claimed the lives of four children to date, was sentenced today to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Julio Gonzales, Jr., a 19-year-old who called himself “J-Money,” was charged via criminal complaint in July 2023. He pleaded guilty in October 2023 to conspiracy to possess with intent to distribute a Schedule II controlled substance (fentanyl) and was sentenced Wednesday by U.S. District Judge Ed Kinkeade.
“This defendant – a heavily-armed, prolific drug trafficker – was involved in providing pills that caused 14 Carrollton kids to overdose, and four of them to die,” said U.S. Attorney Leigha Simonton. “I want to implore our community: Please, educate your children on the dangers of fentanyl. Drug traffickers are not your friends. They know one pill can kill, and they hand them over anyway.”
“Julio Gonzalez will spend the next 15 years in federal prison because of his involvement in supplying and distributing poison in the form of one deadly pill. Because of that same pill, illicit fentanyl, lives have been lost and families have been forever changed,” said DEA Dallas Special Agent in Charge Eduardo A. Chávez. “The women and men of DEA Dallas will never stop investigating overdose and poisoning deaths and bring those responsible to justice. We all must do our part to prevent and educate others that truly One Pill Can Kill.”According to evidence presented at Wednesday’s hearing, Mr. Gonzales was one of three main sources of supply for Luis Eduardo Navarrete, the 22-year-old dealer who supplied fentanyl to students at R.L. Turner High School, Dewitt Perry Middle School, and Dan Long Middle School.
(Mr. Navarrete was sentenced last week to 20 years in federal prison after prosecutors introduced evidence showing that he blatantly ignored a text message, “another youngin dead bro,” alerting him to multiple child overdoses. One of Mr. Navarrete’s other main sources of supply, Jason Xavier Villanueva, pleaded guilty to conspiracy to distribute fentanyl and distribution of fentanyl to a person under 21 and was sentenced to 15 years in prison; his third source, Jessie Alexander Perez Martinez, is awaiting trial.)
In plea papers, Mr. Gonzales admitted he trafficked blue M-30 pills laced with fentanyl to Mr. Navarrete, Navarrete’s drug runner Robert Gaitan, and at least one juvenile dealer. He stipulated that he trafficked approximately 120,000 pills over the course of the conspiracy, often selling them in “K Packs,” which consisted of 1,000 pills at a time.
When he was arrested on July 20, agents searched his Dallas home and seized from 16,000 counterfeit M-30 pills from his microwave, $74,294 in drug proceeds from shoe boxes in his bedroom, and at least nine firearms, including a Romanian Draco AK-47 style handgun, a Kel-Tec long-range pistol, and a Glock equipped with a machinegun conversion device. They also recovered numerous high-capacity magazines, body armor, a vacuum sealer, digital scales, a money counter, and multiple cell phones.
Mr. Gonzales, Jr. is one of 11 defendants charged federally in connection with the case, which has resulted in 14 juvenile overdoses, four of them fatal, of children as young as 13.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.Greene County Man Pleads Guilty to Receiving, Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Drew Caswell, age 26, of Cairo, New York, pled guilty today to receipt, distribution, and possession of child pornography. United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Steven G. James, made the announcement.
Caswell admitted that he used file-hosting service Mega to download child pornography and then distributed multiple image and video files of child pornography by publicly posting them on Twitter (now known as X). Caswell also admitted that, on August 7, 2023, he possessed child pornography on his cell phone, including nearly 300 images and videos of toddlers and infants being sexually abused.
Caswell will be sentenced on September 24, 2024, by United States District Judge Anne M. Nardacci. Caswell faces at least 5 years and up to 20 years in prison, a post-imprisonment term of supervised release of between 5 years and life, a fine of up to $250,000, restitution to the victims, and forfeiture of the phone Caswell used to commit these offenses. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the United States Sentencing Guidelines, and other factors. Caswell will also be required to register as a sex offender upon his release from prison.
The FBI and its Child Exploitation Task Force—which includes members of federal, state, and local law enforcement agencies, including Troop F of the New York State Police and its Computer Crimes Unit—investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Georgia Woman Sentenced to 39 Months’ Imprisonment for Wire and Securities Fraud After Cheating Victims Out of $904,650Read the Press Release
St. George, Utah – Stephanie Nicole Summers, 54, of Duluth, Georgia, was sentenced today to over three years’ imprisonment, three years’ supervised release and ordered by the court to pay $904,650 in restitution. The sentence, imposed by U.S. Senior District Court Judge David Nuffer, comes after Summers admitted to scamming victims in Southern Utah and across the United States.
According to court documents and statements made at the change of plea hearing, from May 2016 to February 2022, Summers fraudulently obtained $904,650 from over a dozen victims. Summers, acting on behalf of Diversified Trade Company, LLC and Summers Companies, Inc., along with other entities, promised customers she could help obtain financing for their business ventures, when in fact she could not. Summers instructed victims to send money to bank accounts she controlled and then spent the money on personal expenses by withdrawing it in cash, making transfers to other entities she controlled, and diverted it for other unrelated business expenses. Summers did not use the victims’ money for agreed-upon purposes.
Summers also persuaded victims to invest in her companies by promising high returns, misrepresenting her credentials and how she intended to use investors’ money. For example, Summers claimed she was a successful international businesswoman who controlled over 20 entities in the United States, the Bahamas, Canada, Mexico, and Panama, which she did not. Summers told victims her business, Summers Companies, Inc., successfully managed businesses in various industries, including real estate, hospitality, mining, oil and gas, technology, and mortgage finance. Summers also fraudulently claimed she could help secure financing for victims’ business ventures and represented she would use the victims’ money on their business ventures, when she did not. Summers told victims their investments were secure and were earning returns, when in fact they were not. In 2016, Summers defrauded victims in Southern Utah by falsely representing that she was an experienced and successful business owner who could secure millions of dollars in financing for their business adventure.
“Ms. Summers defrauded Utah citizens and people across the country of nearly $1 million for her own personal benefit. She lied to the victims and abused their trust to take their hard-earned money,” said U.S. Attorney Trina A. Higgins of the District of Utah. “Summers repeated criminal behavior shows a complete disrespect for the law and the people she victimized. My office will continue to prosecute these types of crimes to seek justice for victims and to protect Utah citizens from future financial fraud.”
“Fraudsters like Summers are expert manipulators motivated by greed,” said Special Agent in Charge Shohini Sinha. “The FBI will investigate those who defraud others for personal gain. We also remind the public that when presented with an investment opportunity or guaranteed a high rate of return, due diligence is key.”
The case was investigated by the FBI Salt Lake City Field Office.
Assistant United States Attorney Stephen P. Dent and Christopher Burton of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Georgia Man Sentenced to Federal Prison for Distributing FentanylRead the Press Release
Jacksonville, Florida –United States District Judge Marcia Morales Howard has sentenced Leonel Bautista Solis (29, Georgia) to seven years and eight months in federal prison for distributing 40 grams or more of fentanyl. Bautista entered a guilty plea on February 28, 2024.
According to the court documents, on March 23, 2023, Solis traveled from Georgia to Jacksonville to sell fentanyl. When Bautista was arrested by federal agents, they recovered 1,600 pressed fentanyl pills, cocaine packaged for sale, and six firearms inside his vehicle. Solis admitted that he had purchased the drugs in Atlanta and was bringing the fentanyl to Jacksonville. He also admitted that he would be delivering the firearms along with the narcotics.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Four New York Men Sentenced Prison for Conspiring to Kidnap New Jersey ManRead the Press Release
CAMDEN, N.J. – Four New York men were sentenced today to prison terms for conspiring to kidnap and hold for ransom a Fort Lee, New Jersey, resident, U.S. Attorney Philip R. Sellinger announced.
Fa Deng, 44, of Staten Island, New York, was sentenced to 144 months in prison, three years of supervised release and a $200,000 fine; Chiahao Lee, 32, of Queens, New York, was sentenced to 180 months in prison and three years of supervised release; Albert Ferrelli, 52, of Queens, New York, was sentenced to 250 months in prison and five years of supervised release; and Gabriel Anthony, of Queens, New York, was sentenced to 168 in prison and three years of supervised release. All four previously pleaded guilty to conspiring to commit interstate kidnapping.
According to documents filed in the cases, and statements made in court:
On April 5, 2022, the four conspirators drove to the victim’s home in Fort Lee. Anthony and Ferrelli entered the victim’s home wearing masks. They bound the victim’s hands, placed duct tape over his eyes and mouth, and forced him into a vehicle where Deng and Lee were waiting.
Law enforcement received information that kidnappers had sent the victim’s wife a photograph of the victim bound and duct-taped, demanding a ransom of approximately $680,000. When law enforcement responded to the victim’s home, they located what appeared to be duct tape with pieces of latex gloves stuck to it. After reviewing local surveillance footage, law enforcement identified a gray minivan used in the abduction. Other surveillance footage showed the minivan crossing the George Washington Bridge shortly after the kidnapping, and subsequently crossing into the Bronx and then into Queens.
The following day, New York Police Department personnel responded to Prince Street in Queens, where they encountered Ferrelli guarding the door to a building. When officers approached Ferrelli, they heard a man screaming for help inside the building. Officers entered the building and found the victim with his hands bound, and duct tape over his eyes and mouth.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the Bergen County Prosecutor’s Office under the direction of Prosecutor Mark Musella; officers of the Fort Lee Police Department, under the direction of Chief Matthew J. Hintze; and the New York Police Department, under the direction of Commissioner Edward A. Caban, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
Former West Michigan Doctor Sentenced to 5 Years in Federal PrisonRead the Press Release
Performed Medically Unnecessary Sinus Surgeries In Gross Violation of Trust
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Daniel J. Castro, M.D. was sentenced to five years in federal prison, two years of supervised release, and ordered to pay $1,972,293.74 in restitution to victims of his criminal conduct, including the Medicare and Medicaid programs, numerous private health insurers, Bronson Hospital in Battle Creek, Michigan, and certain of his former patients. Chief United States District Judge Hala Y. Jarbou imposed the sentence in Lansing, Michigan.
“The criminal activities of Dr. Daniel Castro – performing unnecessary sinus surgeries – are sickening” said U.S. Attorney Mark Totten. “Dr. Castro brazenly trampled the core promise of the Hippocratic Oath – to act in the best interests of the patient – and did so for his own financial gain. Our health care system depends on patients being able to trust their medical providers at every step, especially when deciding to go under the knife. I’m grateful for the vast majority of providers who keep their promise, and we will do our very best to root out criminals like Dr. Castro who lie and steal for their own advantage.”
"Dr. Castro violated his patients' trust by choosing to perform unnecessary surgeries and defrauded our health care insurance system in the process," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Healthcare providers who perform medically unnecessary procedures compromise the integrity of our healthcare system and expose their patients to potential harm. Unnecessary medical procedures at the taxpayer's expense will not be tolerated, and the FBI will hold all providers accountable."
On April 3, 2023, Dr. Castro pleaded guilty to making a false statement related to health care matters. At his sentencing, Dr. Castro did not contest that he engaged in schemes to defraud health care benefit programs from February 2015 to May 2017 as alleged in an indictment returned by a federal grand jury. Those schemes included performing medically unnecessary sinus surgeries, which frequently involved falsifying medical records about his patients’ symptoms and the findings of CT scans to make it appear the surgeries were justified. Dr. Castro also defrauded health care insurers by billing excisions of single lymph nodes, submandibular glands, and other glands of the neck as if he performed modified radical or selective neck dissections, which are complex and higher-paying procedures for cancer of the head and neck.
Dr. Castro agreed that the intended loss totaled $5,091,272.03, representing primarily his billings to the health insurance companies for the fraudulent surgeries. Prior to sentencing, Dr. Castro made a $1 million payment toward his restitution obligation, which will be distributed to the victims of the offense as determined by the Court at sentencing. The Court ordered Dr. Castro to pay the balance owed to victims, and the United States will seek to enforce his financial obligation until the restitution amount is collected in full. At the sentencing hearing, the United States sought the maximum possible sentence of five years in prison.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Ron Stella and Adam Townshend.
Health care fraud and abuse by medical providers can include, among other schemes, performing medically unnecessary procedures, billing for procedures or supplies a patient never received, “upcoding” (billing for higher paying procedures than the patient received), and double billing. The public is encouraged to report suspected Medicare fraud by calling 1-800-HHS-TIPS (1-800-447-8477) or submitting the information online at www.oig.hhs.gov. Health care fraud involving private insurance programs can be reported to the FBI at tips.fbi.gov or by contacting the patient’s health insurance provider.
###
Former Springfield Golf Professional Sentenced for Tax FraudRead the Press Release
BOSTON – A former golf professional, who worked at two courses owned by the City of Springfield, was sentenced today for tax fraud.
Ryan McDowell, 32, of Springfield, Mass. was sentenced by U.S. District Court Judge Mark G. Mastroianni to 12 months of probation and restitution of $101,050 payable to the City of Springfield and $34,236 payable to the Internal Revenue Service. McDowell pleaded guilty to six counts of tax fraud in September 2018.
Between 2011 and 2016, McDowell worked as an Assistant Golf Professional for a golf management company that contracted with the City of Springfield to manage its two municipal golf courses, Franconia and Veterans Memorial Golf Courses. During that time period, McDowell skimmed approximately $101,050 from golf revenues belonging to the City and then filed false tax returns each year that intentionally omitted the stolen money. McDowell’s filing of the false tax returns resulted in a federal tax loss of $34,236.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil Desroches of the Springfield Branch Office prosecuted the case.
Former Seattle man who used fraud to obtain more than $500,000 in COVID benefits sentenced to 3+ years in prisonRead the Press Release
Seattle – A 30-year-old New York City man was sentenced today in U.S. District Court in Seattle to 42 months in prison for three counts of wire fraud and two counts of bank fraud related to his abuse of the COVID-19 Pandemic Paycheck Protection Program (PPP), announced U.S. Attorney Tessa M. Gorman. Donte McClellon was a resident of Seattle when he submitted falsified documents to obtain $500,948 in loan proceeds from three different financial institutions in May and June 2020. At today’s sentencing hearing U.S. District Judge Lauren King noted that the societal costs of these crimes are serious, saying that the crimes affected taxpayers and diverted funds from struggling small businesses. Judge King added that McClellon had never accepted responsibility for his crimes, and he used the money to fund investments and personal expenses.
“The negative effects of McClellon’s crime go beyond the financial loss. His fraudulent applications clogged an overtaxed application system and stole valuable resources from lending institutions working tirelessly to distribute money,” said U.S. Attorney Gorman. “McClellon even attempted to cut the line in front of actual small businesses. His fraud was not a one-time error in judgment, but rather a calculated attempt to take advantage of the relief systems set up for businesses struggling because of the COVID-19 pandemic.”
According to records filed in the case, McClellon used the names of three limited liability corporations he had once registered in the State of Washington to make his claims. Each of the entities, ‘Frostlake,’ ‘Cannonlake,’ and ‘Skylake’ LLC, had been inactive and showed no signs of business activity in any state or federal registries in the years leading up to the pandemic. Nevertheless, in May and June 2020, McClellon submitted Paycheck Protection Program applications claiming the entities each had as many as 13 employees and, in one case, gross receipts of more than $1.6 million. McClellon forged multiple Internal Revenue Service forms to make it appear the three companies were operating real estate, wholesale, or retail businesses, with employees who would benefit from the Paycheck Protection Program loans. McClellon claimed the businesses operated out of his home address in Seattle. The investigation revealed there was no business activity at that address.
In two cases, McClellon asked lenders to distribute the loan funds to bank accounts that McClellon had set up just days before he made the loan applications. The third loan went to McClellon’s personal bank account. McClellon consolidated most of the fraudulent proceeds in his personal account. McClellon used the money to pay his rent on a Manhattan apartment, for travel and gym memberships, and some $20,000 on Uber rides among other personal, non-business expenses.
The case was investigated by The FBI Seattle Field Division with assistance from FBI New York and the Small Business Administration Office of Inspector General (SBA-OIG).
The case was prosecuted by Assistant United States Attorneys Lauren Watts Staniar, Jessica Murphy Manca, and Krista Bush.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Richmond postal carrier sentenced to prison for stealing mailRead the Press Release
RICHMOND, Va. – A former postal carrier with the U.S. Postal Service (USPS) in Richmond was sentenced today to one year and one month in prison for theft of mail.
According to court documents, Wendy Lawrence, 40, stole mail, removing gift cards, checks, and other items of value for her own use. Lawrence also dumped mail entrusted to her care. Law enforcement recovered stolen mail from Lawrence’s residence belonging to over 180 victims.
After stealing checks from the mail, Lawrence used the bank account and routing information on those checks to initiate electronic payments, which she used for such expenses as her tax bill, pest control, and rent. On at least one occasion, to prolong and conceal the fraud scheme, Lawrence initiated a fraudulent address change with the USPS on behalf of a victim, rerouting the victim’s mail to Lawrence’s address. Law enforcement also recovered checks from Lawrence’s residence that she forged for her own benefit, including checks in the name of at least 30 other individuals.
Lawrence pled guilty on Feb. 29.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jeff Krafels, Special Agent in Charge of the Mid Atlantic Area Field Office for the U.S. Postal Service Office of Inspector General; Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; and Bradford W. Nunnally, Sheriff for Powhatan County, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. The Powhatan County Commonwealth’s Attorney’s Office provided substantial assistance.
Assistant U.S. Attorney Avi Panth prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-17.
Former EDA Director Sentenced to 14 Years After Stealing over $5.2 MillionRead the Press Release
HARRISONBURG, Va. – The former executive director of the Economic Development Authority of Front Royal and Warren County (EDA), who was convicted in November of last year of stealing more than $5 million dollars in authority funds, was sentenced today to 14 years in federal prison.
Jennifer Rae McDonald, 45, of Front Royal, Virginia, was convicted following a 9-week jury trial in November 2023 of seven counts of wire fraud, six counts of bank fraud, sixteen counts of money laundering, and one count of aggravated identity theft.
“For more than four years, Jennifer McDonald used EDA funds as her personal piggy bank, diverting public funds to purchase real estate and to pay her personal expenses” United States Attorney Christopher R. Kavanaugh said today. “Today’s sentence reflects how serious this office takes fraud and the misuse of public funds. I am thankful to the FBI and the Virginia State Police for the tireless work they did to untangle the web of lies spun by this defendant.”
“The FBI is committed to investigating elected officials who abuse their positions for personal gain,” Special Agent in Charge Stanley Meador of the FBI’s Richmond Division said today. “I am proud of the work our team and partners did to uncover Ms. McDonald’s complex fraud scheme and to bring her to justice.”
According to court documents and evidence presented at trial, McDonald was the Executive Director of the EDA, a public entity designed to attract and support businesses in Warren County and the Town of Front Royal. The EDA was overseen by a Board of Directors and supported by an administrative assistant, but at the center of the EDA was McDonald.
Beginning in 2014, McDonald began stealing money from the EDA and, for more than four years, McDonald used the bank accounts and credit facilities of the EDA to divert public funds to purchase real estate and to pay for her personal expenses. She falsified documents in order to mislead the EDA’s Board of Directors, external auditors, and Warren County and Front Royal government officials so she could continue her scheme.
When confronted by law enforcement and others, McDonald drafted fake loan documents, encouraged others to lie before a grand jury and fabricated an outrageous story, alleging the fraud was part of a “secret settlement” and invented more fake documents to cover-up her fraud.
In the end, McDonald pilfered the EDA’s bank accounts and is responsible for $5,201,329 in losses.
At trial, evidence was presented that at least $2.4 million of the money McDonald stole was used to fund her gambling - including net losses of more than $750,000.
The Federal Bureau of Investigation and Virginia State Police investigated the case.
Assistant U.S. Attorneys Sean Welsh and Rachel Swartz and Trial Attorney Andrea Broach are prosecuting the case for the United States.
Former Derry Man Sentenced for Submitting Dozens of Fraudulent Applications for Pandemic Relief FundsRead the Press Release
CONCORD – A former Derry man was sentenced today in federal court for submitting approximately three dozen fraudulent applications for COVID-19 pandemic relief funds, U.S. Attorney Jane E. Young announces.
David Dodge, 42, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 34 months in prison and 3 years of supervised release. On February 20, 2024, Dodge pleaded guilty to bank fraud. His wife and co-conspirator, Tammy Dodge, pled guilty to bank fraud on March 4, 2024, and is scheduled to be sentenced on June 10, 2024.
“Congress passed the CARES Act to help Americans struggling during the worst health crisis in a century,” said U.S. Attorney Jane E. Young. “The defendant exploited this lifeline to steal from taxpayers to buy luxury items including a diamond ring. Today’s significant sentence reflects the seriousness of the offense and underscores that we are continuing to vigilantly prosecute pandemic relief fraud.”
“The Treasury Inspector General for Tax administration (TIGTA) aggressively investigates the abuse of IRS systems to defraud federal and state relief programs through fraudulent applications,” stated Special Agent-in-Charge Michael Carpenter. “In this case, the defendant diverted COVID-19 pandemic relief funds intended for legitimate businesses and their employees for personal gains.”
Dodge claimed to own or control multiple businesses in New Hampshire and Massachusetts, including Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right. However, these companies had no operations and served no business purpose.
Dodge and his wife submitted dozens of fraudulent applications for Paycheck Protection Program (PPP) loans from private lenders, Economic Injury Disaster Loans (EIDLs) from the Small Business Administration, and pandemic relief grants from the New Hampshire Governor’s Office for Emergency Relief and Recovery (GOFERR) and the Massachusetts Growth Capital Corporation (MGCC). To commit the fraud, Dodge also used the Social Security Number of a minor child to apply for and obtain an Employer Identification Number from the IRS for a fictional company called Consulting Services.
Dodge used fake supporting documents in the applications. For example, on May 4, 2020, David Dodge applied for a $39,355 PPP loan for Optimized Operations. He provided a “Payroll Report” purporting to show that Optimized Operations had a monthly payroll of approximately $46,000 through December 2020, seven months into the future. Other fake documents included a doctored Limited Liability Company certificate showing that Optimized Operations was incorporated in Massachusetts in June 2016, when it did not exist on paper until May 2020. David Dodge also provided fraudulent tax documents showing that Optimized Operations had five employees paid $45,000 each quarter.
Overall, because lenders detected most of the fraudulent applications, the Dodges obtained $219,323.34. They misused the fraudulently obtained funds, including to purchase a hot tub and a diamond ring.
The Treasury Inspector General for Tax Administration led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Former Corrections Officer Charged with Sex Offense and Smuggling Contraband at FCI MilanRead the Press Release
DETROIT - A federal grand returned an indictment yesterday charging a Federal Correctional Institution (FCI) Milan corrections officer with having sex with an inmate and smuggling contraband into the prison, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Midwest Region.
According to the indictment, on September 26, 2023, Cara Wozniak, 33, of Milan, Michigan, while serving as a corrections officer, engaged in sexual intercourse with an inmate who was under her custodial authority at FCI Milan. Wozniak was also charged with providing contraband to an inmate from April through November of 2023.
Federal law and prison rules prohibit all sexual interaction between staff members and inmates, as well as the introduction or possession of contraband in prison. Contraband is defined as prohibited materials which can reasonably be expected to cause physical injury or adversely affect the security, safety, or good order of the institution.
Wozniak is charged with committing a sex act with a ward which carries a maximum sentence of up to 15 years’ imprisonment, and a fine of up to $250,000. Wozniak is also charged with the misdemeanor offense of providing contraband in prison, which carries a sentence of up to six months in prison.
United States Attorney Ison said, “Every day, federal corrections officers display uncompromising integrity in carrying out their duties and maintaining the safety and security of our federal prisons. Unfortunately, the allegations in today’s indictment reflect a failure on the part of one corrections officer to maintain that standard. Sexual misconduct by prison officials compromises the safety and security of the whole institution and is completely unacceptable at Milan or any other correctional facility.”
"We trust correctional officers to act with integrity. Instead, Wozniak allegedly abused her authority, sexually abused an inmate, and smuggled contraband into the prison,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Midwest Region.
The investigation of these cases was conducted by the Department of Justice, Office of Inspector General. The cases are being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Connecticut Resident Pays $154k to Resolve Allegations of Covid-Relief Loan FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that EDWARD MUNDAY, of Coventry, Vermont, a former resident of New Fairfield, Connecticut, has paid $154,200 to resolve allegations that he fraudulently used a substantial portion of a small business loan under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to purchase a second home in Vermont.
The CARES Act was enacted to provide emergency assistance to individuals, families, and businesses affected by the coronavirus pandemic. Section 1110 authorized the Small Business Administration (“SBA”) to provide Economic Injury Disaster Loans (“EIDLs”) to help overcome the effects of the COVID-19 pandemic by providing working capital to eligible small businesses, including sole proprietors, to meet operating expenses.
On May 25, 2020, Munday applied for and later received an EIDL Loan as sole proprietor for EDM Services, his IT consulting business. The loan documents required Munday to “use all the proceeds of this Loan solely as working capital to alleviate economic injury” caused by COVID-19. In May 2021, Munday sought and later received an increase in his EIDL Loan for EDM Services and, on August 4, 2021, again agreed to “use all proceeds of this Loan solely as working capital to alleviate economic injury” caused by COVID-19.
The government contends that Munday did not use all the proceeds of the EIDL as working capital for EDM Services. Instead, he used a substantial portion of it to purchase a second home in Coventry, Vermont. To resolve these allegations, Munday agreed to pay $104,200 in restitution, and a $50,000 penalty.
This investigation was conducted by the Federal Bureau of Investigation. This matter was handled by Assistant U.S. Attorneys Sarah Gruber and Richard M. Molot, with the assistance of the SBA’s Office of General Counsel.
Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Amory School Teacher Sentenced to 192 Years for Sexual Abuse of Former StudentsRead the Press Release
GREENVILLE, Miss. – Toshemie Wilson, a former educator in the Amory School District, was sentenced today to 192 years in prison following his conviction for multiple counts of sexual exploitation of a child. Wilson was ordered to pay $123,353.34 in restitution to victims of the offense and a $5,000 trafficking assessment.
In December of 2023, a jury in Greenville found Wilson guilty of eight counts of sexual exploitation of children based on his conduct while he was a teacher employed by the Amory School District. Testimony at the trial revealed that Wilson used his position as a teacher and advisor for the student group Technology Students of America (TSA) to groom students to eventually produce child sexual abuse videos and pictures in exchange for money and drugs.
At the trial in this matter, seven witnesses testified that Toshemie Wilson approached them while they were students and solicited them to make masturbation videos in exchange for pay between 2005 and 2014. The witnesses identified multiple places Wilson had them make the videos including the school bathroom, an office space rented specifically for this purpose, and the Amory Wal-Mart bathroom. Several of the witnesses stated they were induced to make videos while on out-of-town school trips with TSA.
An investigation in this case initially began when one former student reported the abuse to a counselor. That counselor then reported the statement to law enforcement.
Following a sentencing hearing in Greenville today, Chief U.S. District Judge Debra M. Brown sentenced Wilson to 192 years in prison followed by a lifetime of supervised release.
“Parents and children should be able to trust teachers, and Toshemie Wilson profoundly betrayed that trust and deserves every hour of every day that he spends in prison,” opined U.S. Attorney Clay Joyner. “I cannot say enough about the courage of the victims who came forward, and I commend AUSA Parker King for leading the prosecution and the efforts of the Mississippi Attorney General’s Office, the FBI, and our local law enforcement partners. Wilson is now exactly where he belongs.”
“Protecting the innocence of society’s youth is one of the many noble missions of the FBI. Toshemie Wilson’s heinous actions of preying on children will not be tolerated. Today’s sentencing reflects the unyielding dedication of the FBI, DOJ and our local law enforcement partners in assuring offenders like Mr. Wilson, are held accountable and brought to justice,” said FBI SAC Robert Eikhoff.
“Predators who seek to exploit the children that they are trusted to care for will not go unpunished,” said Attorney General Lynn Fitch. “Today’s sentencing serves as a reminder that those who abuse positions of power will be prosecuted to the fullest extent. I am thankful for the U.S. Attorney’s Office, the Federal Bureau of Investigation, and the state and local law enforcement agencies for their partnership on this case. My hope is that these victims and their families find justice and healing.”
The investigation of this case was a joint effort by the Federal Bureau of Investigation, the Mississippi Attorney General’s Office, and multiple state and local law enforcement agencies.
Assistant U.S. Attorneys Parker S. King and Clyde McGee prosecuted the case.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. The goal of Project Safe Childhood is to reduce the incidence of sexual exploitation of children.
Foreign Nationals Arrested and Indicted After a Large Drug Seizure, Including over 11,000 Grams of MethamphetamineRead the Press Release
Salt Lake City, Utah – A man and woman in Salt Lake County were indicted by a federal grand jury in Salt Lake City today for federal drug crimes after law enforcement seized approximately 11,435 grams of methamphetamine and 3,835 grams of heroin from a vehicle in which they were traveling.
According to court documents, Armida Viridiana Cayetano-Ruiz, 32, and Carlos Gerardo Brindas-Guzman, 30, both foreign nationals living in Salt Lake City, became part of a criminal investigation in April 2024 for allegedly distributing large quantities of narcotics into Utah. During the investigation, agents with the FBI Wasatch Metro Drug Task Force received information that Cayetano-Ruiz was a suspected multi-state drug trafficker. On May 11, 2024, agents stopped Cayetano-Ruiz and Brindas-Guzman in Juab County, Utah, for a traffic violation. During the stop, a K-9 Officer alerted to a positive indication of narcotics on the vehicle. During a search of the vehicle, law enforcement seized 11,435 grams (package weight) of field-tested- positive methamphetamine and 3,835 grams (package weight) of field-tested positive heroin. Cayetano-Ruiz and Brindas-Guzman were arrested.
Cayetano-Ruiz and Brindas-Guzman are charged with possession of heroin with intent to distribute, and possession of methamphetamine with intent to distribute. Their initial court appearance on the indictment is scheduled for May 30, 2024, at 9:15 a.m. in courtroom 8.4 before a U.S. Magistrate Judge 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 by the FBI Wasatch Metro Drug Task Force.
Assistant United States Attorney Seth Nielsen 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.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Pilot Involved in Cocaine Trafficking Schemes is SentencedRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RUPERT DE LAS CASAS, 64, of Miami, Florida, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to approximately 85 months of imprisonment, time already served, and three years of supervised release for his participation in two separate cocaine trafficking conspiracies.
According to court documents and statements made in court, De Las Casas conspired with others to transport approximately 1700 kilograms of cocaine from South America to the U.S. On August 6, 2016, De Las Casas and Ronier Sanchez Alonso flew a private jet, which was registered in the U.S., from the Dominican Republic to Venezuela where the cocaine was to be loaded onto the jet. De Las Casas was the pilot and Sanchez was the co-pilot. From Venezuela, the jet was to fly to Honduras where the cocaine would be loaded onto trucks for transport through Mexico into the U.S. A fake flight plan filed with Dominican authorities reported that the plane was traveling to Brazil. The plane crash-landed just short of a landing strip in Venezuela. De Las Casas, Sanchez, and another co-conspirator evaded capture by Venezuelan authorities and the cocaine was diverted back to Colombia.
On December 14, 2016, a grand jury in Bridgeport returned an indictment charging De Las Casas, Sanchez, and others with conspiracy to possess with intent to distribute five kilograms or more of cocaine on board an aircraft registered in the U.S. De Las Casas was arrested on April 15, 2017, and pleaded guilty to the charge on October 23, 2019. He has been detained since his arrest.
After his arrest, De Las Casas was charged in the Central District of California for his participation in a separate cocaine trafficking conspiracy. His case was transferred to the District of Connecticut and, on February 27, 2024, he pleaded guilty to conspiracy to distribute cocaine for the purpose of unlawful importation.
Sanchez, a citizen of Mexico, was arrested in Asuncion, Paraguay, on March 25, 2021. He was extradited to the U.S., pleaded guilty, and, on December 20, 2023, was sentenced to 48 months of imprisonment.
Another co-conspirator, Arrinson De La Cruz, who had worked at an airport in the Dominican Republic and helped to coordinate the travel of the jet through the airport uninterrupted, was charged separately for his role in this scheme and other drug trafficking activity. De La Cruz, a citizen of the Dominican Republic who had resided in Wolcott, Connecticut, pleaded guilty and, on November 20, 2019, was sentenced to 144 months of imprisonment.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force, which includes members from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments. The DEA Country Office in Paraguay, Interpol and the Paraguayan National Police assisted the investigation.
U.S. Attorney Avery thanked the U.S. Attorney’s Office for the Central District of California for its assistance in this prosecution.
This case was prosecuted by Assistant U.S. Attorney Rahul Kale through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Fentanyl Death in Indian Country Leads to Two Pleading Guilty to Drug ConspiracyRead the Press Release
OKLAHOMA CITY – JOANIE ANN WILSON, 38, and REECY ANN BENCH, 21, both of Stephens County, have pleaded guilty to participating in a drug conspiracy, announced U.S. Attorney Robert J. Troester.
In May 2024, Wilson and Bench were charged by Superseding Informations for their roles in a drug conspiracy. On August 23, 2023, a resident of Stephens County died of a fentanyl overdose. According to public record, in August 2023, Bench and Wilson conspired to purchase and distribute fentanyl, the use of which resulted in the death of the Stephens County resident.
On May 28, 2024, Wilson pleaded guilty, and admitted to conspiring to distribute fentanyl. Bench pleaded guilty to her role in the drug conspiracy on May 22, 2024. At sentencing, Wilson and Bench face up to 20 years in federal prison and fines of up to $1,000,000 each.
This case is in federal court because Bench is a member of the Choctaw Nation and the crimes occurred within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Drug Enforcement Administration (DEA), the Stephens County Sheriff’s Office, and the Lawton Police Department, and demonstrates the importance of the DEA’s “One Pill Can Kill” campaign. More information about “One Pill Can Kill” can be found at https://www.dea.gov/onepill. Further information about the danger associated with fentanyl distribution and use can be found at https://www.youtube.com/watch?v=16O7TkhFH9k.
Assistant U.S. Attorney Elizabeth Joynes and Special Assistant U.S. Attorney Kaleigh Blackwell are prosecuting the case.
Reference is made to public filings for additional information.
Federal Jury Convicts Two Men in Violent Kidnapping Conspiracy Involving Several Victims in Chicago SuburbsRead the Press Release
CHICAGO — Two men have been convicted on federal kidnapping charges for conspiring to abduct several victims at gunpoint in the Chicago suburbs.
SEDGWICK WILLIAMS and TAI HON LA conspired with each other and others to carry out the kidnappings in the fall of 2019. Williams personally participated in kidnappings that occurred in Naperville, Ill., and Westchester, Ill., in October and November 2019. Williams and La also attempted a third kidnapping in South Holland, Ill., in December 2019. Their efforts to abduct the intended victim in that incident were unsuccessful, and they were both arrested fleeing from the South Holland residence.
After a two-week trial, on May 22, 2024, a jury in federal court in Chicago convicted Williams and La of participating in the kidnapping conspiracy and the attempted kidnapping in South Holland. Williams was also convicted on individual kidnapping counts concerning the Naperville and Westchester kidnappings, and with falsely impersonating a federal law enforcement officer. La was also convicted of illegal firearm possession.
Williams, 47, of Chicago, and La, 34, of Beach Park, Ill., each face a maximum sentence of life in federal prison. Sentencings have not yet been scheduled.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated with the assistance of the Naperville Police Department, Westchester Police Department, South Holland Police Department, Chicago Police Department, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the DuPage County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys Jared C. Jodrey, Corey B. Rubenstein, and Kate McClelland.
According to evidence presented at trial, the first kidnapping occurred in Naperville on Oct. 17, 2019, when the conspirators posed as law enforcement officers to handcuff and abduct a man at gunpoint outside of his electronics store, which they then burglarized. The conspirators forced the victim into their car and transported him to a vacant unit in Chicago, where they physically assaulted him and extorted his family. Following his release, the victim received medical treatment in a hospital.
The conspirators carried out the kidnapping in Westchester on Nov. 16, 2019. Posing as DEA agents, the conspirators handcuffed and abducted a man at gunpoint outside of his residence. The conspirators forced the victim into his home, where they seized another victim and forced them both into the basement. Two other victims later arrived at the residence and were also forced into the basement at gunpoint. The conspirators stole cash and jewelry before fleeing the residence.
The conspirators attempted the third kidnapping in South Holland on Dec. 11, 2019, but they were unsuccessful because the intended victim called 911 and the South Holland Police arrived on scene before the conspirators could gain access to the house.
Two other defendants charged in the case pleaded guilty prior to trial. IVAN AYERS, 36, of Chicago, pleaded guilty to participating in the kidnapping conspiracy. JONATHAN VARGAS, 38, of Chicago, pleaded guilty to kidnapping the first victim in Naperville. Ayers and Vargas are awaiting sentencing.
Federal Inmate and Texas Resident Charged with Attempting to Introduce Fentanyl into A United States PenitentiaryRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Julian Beavers, age 37, an inmate at the United States Penitentiary in Canaan (USP Canaan), Wayne County, Pennsylvania, and Feniqua Walker, age 30, Fort Worth, Texas, were indicted on May 28, 2024, by a federal grand jury on charges for attempting to provide fentanyl to an inmate at USP Canaan.
According to United States Attorney Gerard M. Karam, the indictment alleges that between January 13, 2023 and April 13, 2023, Beavers and Walker attempted to provide fentanyl to an inmate at USP Canaan and Beavers also attempted to possess the fentanyl.
The case was investigated by the Federal Bureau of Investigation and the Special Investigative Services Unit at USP Canaan. Assistant U.S. Attorney Jenn P. Roberts is prosecuting the case.
The maximum penalty under federal law for each offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Fayetteville Group Sentenced to More Than 54 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – The final member of a Northwest Arkansas drug trafficking group was sentenced late last week for crimes related to the distribution of methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court documents, beginning in October 2022, agents with the 4th Judicial District Drug Task Force initiated an investigation into a drug trafficking organization operating out of the Fayetteville Division responsible for the distribution of methamphetamine in the Northwest Arkansas area. During the course of their investigation, investigators identified five individuals who were responsible for distributing large quantities of methamphetamine throughout the Western District of Arkansas.
Those members of the drug trafficking organization indicted federally have been sentenced as follows:
Joe Chantharath: age 42, Springdale, Arkansas – Distribution of a Mixture or Substance Containing a Detectable Amount of Methamphetamine – 135 months imprisonment and 3-year term of supervised release, plus an additional 24-month term of imprisonment to run consecutively to new sentence as a consequence of his federal supervised release being revoked.
Anthony Chantharath: age 35, Springdale, Arkansas – Possession of a Mixture or Substance Containing a Detectable Amount of Methamphetamine with Intent to Distribute - 137 months imprisonment and 3-year term of supervised release.
Kevin Michael Burke: age 37, Bryant, Arkansas – Distribution of a Mixture or Substance Containing a Detectable Amount of Methamphetamine -235 months imprisonment and 3-year term of supervised release.
Ryan Seth Bruce: age 35, Clinton, Arkansas – Distribution of a Mixture or Substance Containing a Detectable Amount of Methamphetamine– 72 months imprisonment and 3-year term of supervised release.
Destiny DeAnne Satterfield: age 25, Springdale, Arkansas – Possession of a Mixture or Substance Containing a Detectable Amount of Methamphetamine with Intent to Distribute – 77 months imprisonment and 3-year term of supervised release.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Kevin Eaton prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Farmington Couple Charged with AssaultRead the Press Release
ALBUQUERQUE – A Farmington couple was charged by indictment with assault charges, including using teeth as a dangerous weapon during an alleged attack on three of their daughters.
Renauldo Sandoval, 39, and Lisa Sandoval, 39, both enrolled members of the Navajo Nation, appeared before a federal judge this week. Lisa will remain in third-party custody and Renauldo will remain in custody pending trial, which has not been scheduled.
According to the indictment, or July 28, 2023, the defendants assaulted Jane Doe 1, and the assault resulted in serious bodily injury. Renauldo additionally assaulted Jane Doe 2, after having been convicted in state court of two prior domestic assaults. In addition, Lisa assaulted Jane Doe 3 with a dangerous weapon, specifically her teeth, with the intent to cause bodily harm.
If convicted, Renauldo and Lisa both face up to 10 years in prison.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant United States Attorney Meg Tomlinson is prosecuting the case.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
E. Baton Rouge Parish Resident Indicted for Possession of Firearm by FelonRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JARRETT HALL (“HALL”), age 33, of Baker, LA, was indicted on March 23, 2024, for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on December 8, 2023, allegedly, HALL knowingly possessed a Colt Model Commander, .45 caliber semi-automatic handgun after having previously been convicted of a felony.
If convicted, HALL, faces a maximum sentence of 15 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Briana Williams of the Narcotics Unit.
Disbarred Attorney Pleads Guilty to Promoting $9.5M Cryptocurrency Ponzi SchemeRead the Press Release
A disbarred California attorney pleaded guilty yesterday to conspiring to operate a cryptocurrency Ponzi scheme that defrauded victims of more than $9.5 million.
According to court documents, David Kagel, 85, formerly of Beverly Hills, conspired to fraudulently induce victims to participate in a cryptocurrency Ponzi scheme. Kagel and his co-conspirators promoted investment programs that falsely guaranteed high-yield profits and promised to use artificial intelligence trading bots to trade victims’ investments in cryptocurrency markets. The Ponzi scheme promoter falsely told victims that Kagel, as the promoter’s attorney, held Bitcoin then equivalent to approximately $11 million in escrow that guaranteed victims’ investments against loss for any reason. To create a false sense of security and trust, Kagel provided letters to victims on his firm’s letterhead to fraudulently confirm the promoter’s false statements. Kagel admitted that he and his co-conspirators used victims’ funds for their own personal benefit.
“David Kagel abused his position as an attorney to earn the trust of investors and to endorse false statements about a purported cryptocurrency investment that was, in fact, a scam. Kagel and his co-conspirators defrauded their victims out of millions of dollars and used the victims’ money to line their own pockets,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When lawyers lend a veneer of legitimacy to fraudulent schemes, it can lead to devastating losses for victims. The Criminal Division and its law enforcement partners will continue to aggressively pursue such fraudsters and hold them to account.”
“Kagel preyed on trusting individuals through a complex scheme to separate people from their hard-earned money,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “IRS-CI is the best in the business at following the money to find the necessary evidence to bring charges against those who seek to prosper on the backs of their victims.”
Kagel pleaded guilty to one count of conspiracy to commit commodity fraud. He is scheduled to be sentenced on Sept. 10 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
David Gilbert Saffron, 51, of Australia, and Vincent Anthony Mazzotta Jr., 52, of Los Angeles, were charged by a federal grand jury in a superseding indictment in December 2023 for their roles in the same cryptocurrency Ponzi scheme, and are awaiting trial that is scheduled to begin on Aug. 13. Saffron and Mazzotta allegedly promoted the investment programs under various names including Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, and Cloud9Capital. Rather than investing victims’ funds in cryptocurrency, Saffron and Mazzotta allegedly misappropriated victims’ funds to pay for personal expenses including private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards.
IRS-CI is investigating the case.
Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section is prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Convicted Felon Indicted on Murder and Other Charges for July 2023 Killing of Two Men in NorthwestRead the Press Release
WASHINGTON – Jeremiah Jordan, 33, of Washington, D.C., was indicted on May 22, 2024, on murder and other charges for the killings of 29-year-old Luke Whitaker and 19-year-old Zion Hollingsworth-Hayes on July 22, 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Jordan was indicted by a grand jury in the Superior Court on two counts of first-degree murder while armed (premeditated), two counts of possession of a firearm during a crime of violence or dangerous offense, and one count of unlawful possession of a firearm (prior conviction).
According to the charges, at about 9:49 p.m. on July 22, 2023, Jordan met with Mr. Whitaker in the 1400 block of Girard Street, NW, where they were observed arguing with each other. Shortly thereafter, several shots rang out and the defendant was seen running from the scene before turning the corner at 14th Street NW. Numerous people were outside at the time, in and around the busy neighborhood.
An arraignment is scheduled for June 14, 2024.
This case is being investigated by the Metropolitan Police Department (MPD). It is being prosecuted by Assistant U.S. Attorneys Daniel Seidel and Shauna Payyappilly of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Colombian Man Sentenced to More Than Three Years in Prison for Participation in Money Laundering ConspiracyRead the Press Release
BOSTON – A Colombian man was sentenced yesterday for his for his participation in a money laundering conspiracy.
Yimmy Rafael Sanchez-Jimenez, 46, was sentenced by U.S. District Court Judge Richard G. Stearns to 34 months in prison. Sanchez-Jimenez will be subject to deportation proceedings upon completion of the imposed sentence. In January 2024, Sanchez-Jimenez pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions.
Beginning in 2016 and continuing until 2022, an investigation into a money laundering organization based primarily in Barranquilla, Colombia was conducted. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia through the Black Market Peso Exchange – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia.
Sanchez-Jimenez was a money broker based in Colombia who facilitated drug money pickups throughout the world, including in Los Angeles, California and in Canada. Sanchez-Jimenez also facilitated the transfer of those drug proceeds back to accounts in Colombia by using fake documentation to justify the transfers, in order to repatriate the proceeds of drug trafficking in Colombia. Over the course of the conspiracy, Sanchez-Jimenez was responsible for the laundering of over $550,000 in drug proceeds.
Sanchez-Jimenez was charged in a 50-count indictment along with 19 other individuals in March 2022. Sanchez-Jimenez is the fifth defendant to be sentenced in the case. Three defendants have pleaded guilty and are awaiting sentencing. The remaining defendants have pleaded not guilty and are awaiting trial.
Acting United States Attorney Joshua R. Levy and Stephen Belleau, Acting Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Child Predator Found Guilty of First-Degree and Second-Degree Child Sexual Abuse with Aggravating CircumstancesRead the Press Release
WASHINGTON – Gary Bellinger, 61, of Maryland, was convicted today of one count of first-degree child sexual abuse and one count of second-degree child sexual abuse. The verdict, announced by U.S. Attorney Matthew M. Graves and Pamela A. Smith, Chief of the Metropolitan Police Department (MPD), follows a four-day trial in the Superior Court of the District of Columbia. The Honorable Maribeth Raffinan scheduled sentencing for August 30, 2024.
According to the evidence and testimony presented at trial, in 2015, Bellinger sexually abused a female relative who was 15 years old at the time.
Bellinger faces the potential of life imprisonment without the opportunity of release. If he were to be released, Bellinger would be required to register as a sex offender for the remainder of his life.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Marco Crocetti and Kathleen Houck.
Charleroi Man Sentenced to 10 Years in Prison for Possession of Heroin, Fentanyl, and FirearmRead the Press Release
PITTSBURGH, Pa. – A resident of Charleroi, Pennsylvania, has been sentenced in federal court to 10 years of prison on his convictions for possession with intent to distribute 100 grams or more of a mixture containing heroin and fentanyl and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Rashawn Ford, 28.
According to information presented to the Court, on March 13, 2021, a trooper with the Pennsylvania State Police initiated a traffic stop on a vehicle driven by Ford in Westmoreland County, Pennsylvania. During the stop, the trooper recovered packaged heroin and fentanyl, in addition to a loaded handgun. Law enforcement subsequently learned that Ford was staying at a Westmoreland County hotel, where Ford was keeping additional controlled substances in his room.
On March 14, 2021, law enforcement executed a search warrant upon that hotel room, resulting in the seizure of packaged heroin and fentanyl, a handgun loaded with 27 rounds of ammunition, and over $8,600. Following these seizures, federal and state law enforcement opened a joint investigation into Ford, which culminated in the execution of several search warrants on properties associated with Ford in August 2022. Those searches resulted in the seizure of packaged heroin, a loaded handgun, and over $200,000. As part of his sentence, Ford forfeited approximately $273,979 that was seized from him during the investigation.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Pennsylvania State Police and Federal Bureau of Investigation for the investigation leading to the successful prosecution of Ford.
Carbon County Man Sentenced for Trying to Smuggle Explosives on Plane Bound for Orlando-Sanford AirportRead the Press Release
United States Attorney Jacqueline C. Romero announced that Marc Muffley, 41, of Landsford, PA, was sentenced to 30 months in prison and 3 years supervised release by United States District Court Judge John M. Gallagher for attempting to place an explosive device on an aircraft and possessing an explosive in an airport.
On February 27, 2023, Marc Muffley possessed a bag containing an explosive device, a can of butane, lithium batteries, and a lighter, among other items, at Lehigh Valley International Airport. Then he checked that bag on a flight bound for the Orlando Sanford International Airport in Florida. Muffley admitted that when he heard his name paged over the airport's public address system, he immediately fled the airport and contacted his girlfriend to come and pick him up. He then changed his telephone number to avoid being tracked. The FBI arrested him on a criminal complaint and arrest warrant on February 28, 2023, and pled guilty on January 17, 2024.
"Today's sentencing of Marc Muffley serves as a reminder of the importance of adhering to strict regulations and safety protocols in air travel," said U.S. Attorney Romero. "The possession of an explosive on a plane poses a grave risk of fire, explosion, and catastrophic consequences for everyone onboard. I commend the efforts of local, state, and federal enforcement officials in their diligence and moving swiftly, thereby ensuring the safety of all those affected. The U.S. Attorney's Office remains committed to working closely with airport authorities, airlines, and law enforcement agencies to uphold the highest safety and security standards for all passengers and crew."
"Protecting the American people is the very core of our mission at the FBI, and this case demonstrates how seriously we must take this mission. Due to the swift action by airport authorities and law enforcement, a potentially deadly incident was averted," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "The FBI and our partners remain committed to ensuring the safety and security of all who work in and travel through our airports."
The case was investigated by the FBI with assistance from the Lehigh Northampton Airport Authority, the Transportation Security Administration, the Federal Aviation Administration and Department of Transportation – Office of Inspector General and is being prosecuted by Assistant United States Attorney Robert W. Schopf.
Bronx Man Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Rodriguez, age 62, of Bronx, New York, was indicted on May 28, 2024, by a federal grand jury on charges of bank fraud and aggravated identity theft.
According to United States Attorney Gerard M. Karam, the indictment alleges that in December of 2023, Rodriguez utilized false identification documents to withdraw and attempt to withdraw roughly $50,000 from customer accounts at multiple banks throughout Lycoming, Tioga, and Centre Counties. The indictment also alleges that Rodriguez unlawfully possessed means of identification of at least four bank customers in connection with the fraudulent scheme.
This matter was investigated by the United States Secret Service (USSS). Assistant United States Attorney Sarah R. Lloyd is prosecuting the case.
The maximum penalty under federal law for the bank fraud offense is 30 years of imprisonment, 5 years of supervised released, and a $1,000,000 fine. The aggravated identity theft offense imposes an additional 2-year term of imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Armed, Violent Felon Sentenced to over 10 Years in Federal Prison for Trafficking Guns, Crack, and Meth out of Anderson HomeRead the Press Release
INDIANAPOLIS- Richard Hatchett, 46, of Anderson, has been sentenced to 130 months in federal prison, followed by four years of supervised release, after pleading guilty to unlawful possession of a firearm by a convicted felon, distribution of cocaine, distribution of methamphetamine, and carrying a firearm in relation to a drug trafficking crime.
According to court documents, on three occasions in January 2023, Hatchett sold cocaine to individuals out of his home in Anderson, a total of approximately 9.8 grams of cocaine base, also known as “crack cocaine.” During two of those drug deals, Hatchett also sold the buyer two 9mm semiautomatic handguns. One of the firearms sold by Hatchett had been previously stolen. On the third occasion, Hatchett carried a Glock 9mm handgun in his waist band.
On January 30, 2023, Hatchett sold 14.92 grams of pure methamphetamine to an individual at his home.
On February 14, 2023, ATF agents executed a search warrant at Hatchett’s home and located two guns, high-capacity magazines, micro conversion kits, ammunition, crack cocaine, a digital scale, US currency, and other drug paraphernalia.
Hatchett has sustained previous felony convictions for crimes including murder and burglary in Illinois. Hatchett committed the murder when he was just fifteen years old and has spent the vast majority of his life in prison, on probation, or on parole. His felony convictions prohibit him from ever legally possessing a firearm under state and federal law.
“Even after serving a sentence for murder, this defendant has shown his utter unwillingness to abide by the law. Violent, armed drug traffickers are a menace to our community, and must be held accountable,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Our office is committed to working closely with our partners at the ATF, Anderson Police, and throughout federal, state, and local law enforcement, to make our communities safer by investigating and prosecuting repeat, violent criminals. Thanks to their efforts, the public will be safe from further crimes by this man for many years.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, assisted by the Anderson Police Department, investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney.
U.S. Attorney Myers thanked Assistant United States Attorney Patrick Gibson, who prosecuted this case.
###
Aldi Executive and Southern Illinois Contractor Plead Guilty to Rigging Construction Project BidsRead the Press Release
EAST ST. LOUIS, Ill. – A former Aldi executive and a general contractor from Breese, Illinois, admitted guilt to federal fraud offenses which involved rigging the bid system for construction projects of grocery stores throughout southern Illinois and Missouri.
Louis R. Ross, Sr., 64, of St. Louis, pleaded guilty to one count of conspiracy to commit mail and wire fraud, four counts of mail fraud and four counts of wire fraud. Donald E. Schniers, 73, pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud.
“By colluding in the bid process, the co-defendants enriched themselves by defrauding Aldi out of millions of dollars,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, Ross was the Director of Real Estate for Aldi’s O’Fallon, Missouri, Division, and Schniers owned C. Juengel Company out of Breese, Illinois. Schniers, through C. Juengel, provided general contracting services including construction and renovation to Aldi stores within Ross’s division.
From at least February 2014 through March 2018, Ross and Schniers conspired to create a faux competitive bidding environment for construction projects. Schniers admitted to completing false bid forms under the guise of other construction companies without their knowledge or consent.
“In his attempt for personal gain, Louis Ross’s actions undermined competitive contracting practices, which in turn affect the price consumers pay for goods and services,” said FBI Springfield Field office Acting Special Agent in Charge Joe Rodriguez. “The FBI, along with our law enforcement partners, prioritizes efforts to expose corruption and investigate illegal practices.”
The fictitious bids always included higher amounts than C. Juengel’s, which led to C. Juengel being awarded the projects. Using the rigged bidding system, C. Juengel was awarded 12 contracts for general contractor services valued at approximately $20 million.
Ross and Schniers also manipulated the bidding process by altering legitimate bids submitted by another construction company. Due to the stifled competition, Aldi overpaid for the projects and suffered an approximate loss greater than $2.8 million.
“The U.S. Postal Inspection Service is charged with defending the nation’s mail system from illegal use. With the collaborative efforts of our federal law enforcement partners, Postal Inspectors investigate fraudsters who utilize the U.S. Mail to perpetuate financial schemes to defraud others in order to enrich themselves. Postal Inspectors seek justice for victims, including the multiple individual consumer and business victims in this investigation,” said Inspector in Charge Ruth Mendonça who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office.
For his role in the conspiracy, Schniers paid Ross monthly kickbacks totaling $554,000 from C. Juengel’s bank account.
Under the sentencing guidelines, each of the counts carry a maximum term of 20 years’ imprisonment. Ross’s sentencing hearing is scheduled for 1:30 p.m. on Oct. 16 and Schniers’s sentencing hearing is scheduled for 10:30 a.m. on Oct. 17, both at the federal courthouse in East St. Louis.
The FBI Springfield and St. Louis Field Offices and the St. Louis Field Office of the U.S. Postal Inspection Service are contributing to the investigation.
Assistant U.S. Attorney Zoe Gross with the Southern District of Illinois and Trial Attorney Andrew Rosa with the Department of Justice, Antitrust Division, Chicago Office are prosecuting the case.
96-Month Sentence for Maryland Man Who Distributed Thousands of Fentanyl PillsRead the Press Release
WASHINGTON – Edward Steven Monge, 23, of Beltsville, Maryland, was sentenced today to 96 months in prison for participating in a fentanyl distribution conspiracy in which he sold at least 4,500 pills.
The sentence was announced U.S. Attorney Matthew M. Graves, Drug Enforcement Administration Special Agent in Charge Jarod Forget of the Washington Division, Chief Marcus G. Jones of the Montgomery County Police Department, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Monge pleaded guilty in the District of Columbia on January 30, 2024, to an information charging him with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. In addition to the prison term, U.S. District Judge Ana C. Reyes ordered Monge to serve four years of supervised release.
According to the government’s evidence, between February and August 2023 Monge sold more than 4,500 pills containing fentanyl to Jennifer Echeverria Flores, 26, of Silver Spring, MD. Echeverria Flores then sold the pills to a DEA undercover agent on five separate occasions between February 17 and July 19, 2023, in the District and Maryland. The pills were blue, marked “M” on one side, and “30” on the other. The total approximate weight of the pills was 479 grams. These pills were designed to look like authentic oxycodone “M30” pills, but instead contained fentanyl. In addition to the pills Monge distributed with Flores, he distributed thousands more fentanyl pills to other re-distributors and clients during this period.
On August 3, 2023, law enforcement arrested Monge in Hyattsville, MD, and found him carrying about 1,102 identical fentanyl pills. As part of the plea agreement, Monge also admitted that he possessed a firearm in connection with his unlawful distribution of fentanyl. Echeverria Flores pleaded guilty in December to the drug conspiracy charge. Monge’s co-conspirator Mynor Josue Fernandez Alfaro was indicted in March for his role in this conspiracy, and his case is ongoing.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation additionally was an effort of Montgomery County Police under the Maryland Criminal Intelligence Network (MCIN). MCIN was launched in 2017 and provides grant funding and strategic support through the Office of Crime Prevention, Youth, and Victim Services to MCIN member sites to identify, disrupt, and dismantle criminal organizations through inter-agency collaboration and data sharing to make Maryland safer. The Governor’s Office of Crime Prevention, Youth, and Victim Services funded this project.
This matter was investigated by the DEA – Washington Division. Valuable assistance was provided by Homeland Security Investigations. It was prosecuted by Trial Attorney Gaelin Bernstein of the Department of Justice’s Criminal Division and Assistant U.S. Attorney David T. Henek, of the Violence Reduction and Trafficking Offenses section. Valuable assistance was provided by former Special Assistant U.S. Attorneys Jordan Leiter and Javier Urbina.
24cr0052
911 S5 Botnet Dismantled and Its Administrator Arrested in Coordinated International OperationRead the Press Release
Remote video URL
A court-authorized international law enforcement operation led by the U.S. Justice Department disrupted a botnet used to commit cyber attacks, large-scale fraud, child exploitation, harassment, bomb threats, and export violations.As part of this operation, YunHe Wang, 35, a People’s Republic of China national and St. Kitts and Nevis citizen-by-investment, was arrested on May 24 on criminal charges arising from his deployment of malware and the creation and operation of a residential proxy service known as “911 S5.”
According to an indictment unsealed on May 24, from 2014 through July 2022, Wang and others are alleged to have created and disseminated malware to compromise and amass a network of millions of residential Windows computers worldwide. These devices were associated with more than 19 million unique IP addresses, including 613,841 IP addresses located in the United States. Wang then generated millions of dollars by offering cybercriminals access to these infected IP addresses for a fee.
“This Justice Department-led operation brought together law enforcement partners from around the globe to disrupt 911 S5, a botnet that facilitated cyber-attacks, large-scale fraud, child exploitation, harassment, bomb threats, and export violations,” said Attorney General Merrick B. Garland. “As a result of this operation, YunHe Wang was arrested on charges that he created and operated the botnet and deployed malware. This case makes clear that the long arm of the law stretches across borders and into the deepest shadows of the dark web, and the Justice Department will never stop fighting to hold cybercriminals to account.”
“Working with our international partners, the FBI conducted a joint, sequenced cyber operation to dismantle the 911 S5 Botnet—likely the world’s largest botnet ever,” said FBI Director Christopher Wray. “We arrested its administrator, Yunhe Wang, seized infrastructure and assets, and levied sanctions against Wang and his co-conspirators. The 911 S5 Botnet infected computers in nearly 200 countries and facilitated a whole host of computer-enabled crimes, including financial frauds, identity theft, and child exploitation. This operation demonstrates the FBI’s commitment to working shoulder-to-shoulder with our partners to protect American businesses and the American people, and we will work tirelessly to unmask and arrest the cybercriminals who profit from this illegal activity.”
According to court documents, Wang allegedly propagated his malware through Virtual Private Network (VPN) programs, such as MaskVPN and DewVPN (torrent distribution models that he operated) and pay-per-install services that bundled his malware with other program files, including pirated versions of licensed software or copyrighted materials. Wang then managed and controlled approximately 150 dedicated servers worldwide, approximately 76 of which he leased from U.S. based online service providers. Using the dedicated servers, Wang deployed and managed applications, commanded and controlled the infected devices, operated his 911 S5 service, and provided paying customers with access to proxied IP addresses associated with the infected devices.
“As alleged in the indictment, Wang created malware that compromised millions of residential computers around the world and then sold access to the infected computers to cybercriminals,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These criminals used the hijacked computers to conceal their identities and commit a host of crimes, from fraud to cyberstalking. Cybercriminals should take note. Today’s announcement sends a clear message that the Criminal Division and its law enforcement partners are firm in their resolve to disrupt the most technologically sophisticated criminal tools and hold wrongdoers to account.”
“YunHe Wang created and administered a residential proxy service—a botnet known as 911 S5—that affected millions of computers all over the world,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “He will now be held accountable. Proxy services like 911 S5 are pervasive threats that shield criminals behind the compromised IP addresses of residential computers worldwide. Successfully tackling a problem of this scale is only possible with strong collaboration and exceptional investigative work between our law enforcement partners at home and abroad, and we stand ready to hold accountable anyone—no matter where they are located—who exploits our telecommunications infrastructure for their own criminal purpose.”
Cybercriminals then used proxied IP addresses purchased from 911 S5 to conceal their true originating IP addresses and locations, and anonymously commit a wide array of offenses. These offenses including financial crimes, stalking, transmitting bomb threats and threats of harm, illegal exportation of goods, and receiving and sending child exploitation materials. Since 2014, 911 S5 allegedly enabled cybercriminals to bypass financial fraud detection systems and steal billions of dollars from financial institutions, credit card issuers, and federal lending programs.
911 S5 customers allegedly targeted certain pandemic relief programs. For example, the United States estimates that 560,000 fraudulent unemployment insurance claims originated from compromised IP addresses, resulting in a confirmed fraudulent loss exceeding $5.9 billion. Additionally, in evaluating suspected fraud loss to the Economic Injury Disaster Loan (EIDL) program, the United States estimates that more than 47,000 EIDL applications originated from IP addresses compromised by 911 S5. Millions of dollars more were similarly identified by financial institutions in the United States as loss originating from IP addresses compromised by 911 S5.
The 911 S5 client interface software, which was hosted on U.S.-based servers, enabled cybercriminals located outside of the United States to purchase goods with stolen credit cards or criminally derived proceeds, and illegally export them outside of the United States contrary to U.S. export laws, such as the Export Administration Regulations (EAR). The 911 S5 client interface may also contain encryption or other features which subject it to export controls detailed in the EAR. Accordingly, downloads of the 911 S5 client interface software by certain foreign nationals without a license may constitute violations of the EAR.
“The disruption, seizure, and arrest of the perpetrator(s) responsible for the 911 S5 cybercriminal enterprise demonstrates the forward leaning posture of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS) Cyber Field Office,” said DCIS Director Kelly P. Mayo. “This investigation showcases the critical import of identifying and pursuing emerging threats and technologies targeting our warfighters, and the industrial base that supports them. Today’s announcement illustrates the magnitude of cooperation within federal law enforcement and our foreign partners pursuing criminals in the rapidly evolving cybercrime arena.”
The indictment further alleges that from 2018 until July 2022, Wang received approximately $99 million from his sales of the hijacked proxied IP addresses through his 911 S5 operation, either in cryptocurrency or fiat currency. Wang used the illicitly gained proceeds to purchase real property in the United States, St. Kitts and Nevis, China, Singapore, Thailand, and the United Arab Emirates. The indictment identifies dozens of assets and properties subject to forfeiture, including a 2022 Ferrari F8 Spider S-A, a BMW i8, a BMW X7 M50d, a Rolls Royce, more than a dozen domestic and international bank accounts, over two dozen cryptocurrency wallets, several luxury wristwatches, 21 residential or investment properties (across Thailand, Singapore, the U.A.E., St. Kitts and Nevis, and the United States), and 20 domains.
Law enforcement initially focused on 911 S5 during an investigation of a money laundering and smuggling scheme, where criminal actors in Ghana and the United States used hijacked IP addresses purchased from 911 S5 to place fraudulent orders using stolen credit cards on the Army and Air Force Exchange Service (AAFES) online e-commerce platform known as ShopMyExchange. Although approximately 2,525 fraudulent orders valued at $5.5 million were submitted, credit card fraud detection systems and federal investigators were able to thwart the bulk of the attempted purchases, reducing the actual loss to approximately $254,000.
“The conduct alleged here reads like it’s ripped from a screenplay: A scheme to sell access to millions of malware-infected computers worldwide, enabling criminals over the world to steal billions of dollars, transmit bomb threats, and exchange child exploitation materials—then using the scheme’s nearly $100 million in profits to buy luxury cars, watches, and real estate,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). “What they don’t show in the movies though is the painstaking work it takes by domestic and international law enforcement, working closely with industry partners, to take down such a brazen scheme and make an arrest like this happen.”
Wang is charged with conspiracy to commit computer fraud, substantive computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. If convicted on all counts, Wang faces a maximum penalty of 65 years in prison.
This operation was a coordinated multiagency effort led by law enforcement in the United States, Singapore, Thailand, and Germany. Agents and officers searched residences, seized assets valued at approximately $30 million, and identified additional forfeitable property valued at approximately $30 million. The operation also seized 23 domains and over 70 servers constituting the backbone of Wang’s prior residential proxy service and the recent incarnation of the service. By seizing multiple domains tied to the historical 911 S5, as well as several new domains and services directly linked to an effort to reconstitute the service, the government has successfully terminated Wang’s efforts to further victimize individuals through his newly formed service Clourouter.io and closed the existing malicious backdoors.
On May 28, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued financial sanctions against Wang, Jingping Liu, and Yanni Zheng, for their activities associated with 911 S5, and three entities for being owned or controlled by Wang.
The FBI Dallas and Denver Field Offices, DCIS Cyber Field Office, and BIS Office of Export Enforcement’s Dallas field office are investigating the case.
Trial Attorneys Candy Heath and Lydia Lichlyter of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Camelia Lopez and William Tatum for the Eastern District of Texas are prosecuting the case.
The Department appreciates the significant assistance provided by the Attorney-General’s Chambers of Singapore, Singapore Police Force (SPF), Royal Thai Police, and the Office of the Attorney General and the Anti-Money Laundering Office of the Kingdom of Thailand. The Justice Department’s Office of International Affairs and Money Laundering and Asset Recovery Section provided crucial support to this operation. The Treasury Department’s OFAC also provided support to this operation. Additionally, the Department offers its thanks to Chainalysis, the Shadowserver Foundation, and Microsoft for the assistance provided by each during the investigation and the operation.
For more information or to determine if you are a victim of 911 S5 malware, please visit www.fbi.gov/911S5.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Domain Seizure Warrants
Tuesday 28 May 2024
Woodbridge man convicted of impersonating a federal officerRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man on May 24 on charges of false impersonation of an officer or employee of the United States.
According to court records and evidence presented at trial, Russel Guye Dadzie, 50, was a third-party contractor security guard for federal buildings since at least 2013. Dadzie received training that his authority was limited to the immediate area of the building he was assigned to guard and only during his assigned shift. That training also explains that he is not a federal employee, federal agent, or federal officer, that he should not identify himself as such in any context, and that engaging in this type of misrepresentation could result in criminal charges. Dadzie received this training on multiple occasions, including in January 2023. Access to the buildings to which Dadzie was assigned required Personal Identity Verification (PIV) cards. Dadzie signed agreements with both the Department of Homeland Security (DHS) and the U.S. Agency for International Development (USAID) that he would not use the PIV cards for non-employment-related purposes, that he would not display them to others outside of work, and that he would not use them to coerce, intimidate, deceive, or obtain any privilege, favor, preferential treatment, reward, or personal gain. He signed agreements acknowledging that noncompliance with these requirements might subject him to criminal penalties.
On Sept. 15, 2023, officers with the Prince William County Police Department (PWCPD) approached Dadzie’s vehicle in Woodbridge. Dadzie stated multiple times that he was “with DHS” and that he was a “DHS officer” and a “federal officer.” In lieu of a driver license, Dadzie presented officers with a DHS PIV card to bolster his claims that he was a federal officer. When asked about his vehicle, he challenged police, “You’re asking a federal officer if there’s anything illegal in his vehicle?”
On Nov. 9, 2023, a PWCPD officer encountered Dadzie, noting that the inspection sticker on the windshield of Dadzie’s vehicle was expired. When the officer requested to see Dadzie’s driver license, Dadzie instead showed the officer multiple federal PIV cards he possessed, handed the officer a USAID PIV card, and claimed to be a “federal officer” with USAID.
Dadzie faces a maximum penalty of three years in prison when sentenced on Sept. 12. 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; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Peter Newsham, Chief of Prince William County Police, made the announcement after U.S. District Judge Patricia Tolliver Giles accepted the verdict.
Assistant U.S. Attorney Jordan Harvey and Special Assistant U.S. Attorney Daniel Lipkowitz 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-51.
This release was edited on May 28, 2024, to correct the date of conviction.
Wisconsin Attorney Sentenced to Five and a Half Years in Federal Prison for $2.3 Million Fraud and Tax Evasion SchemesRead the Press Release
INDIANAPOLIS- Leslie Smith, 63, of Indianapolis, has been sentenced to five and a half years in federal prison, followed by two years of supervised release, after pleading guilty to health care fraud, wire fraud, and tax evasion. Smith must also pay $2,341,655.08 in restitution.
According to court documents, for years, Leslie Smith engaged in multiple fraud schemes against her employer, relatives, and the government. Smith was a licensed attorney in the state of Wisconsin at the time she committed these crimes.
Smith was employed as the Office Manager for a podiatry practice located in Indianapolis. For years, without the knowledge or consent of her employer, Smith submitted approximately 288 fraudulent claims for reimbursement to Medicaid for oxygen monitoring devices that were never ordered. Smith caused Medicaid to pay $559,197.67 on these false claims and also caused a total of $1,194,942.07 in Medicaid payments to be deposited to her personal bank account.
After being charged in federal court with health care fraud, Smith fraudulently obtained COVID-19 mortgage assistance funds for a home on Kessler Boulevard in Indianapolis. In the application documents, Smith falsely represented that she was the owner of the home. In reality, the owner was a relative of Smith who died in 2020.
Smith also sold a residence in Indianapolis that she jointly owned with another individual for approximately $380,000, without the knowledge or consent of the co-owner. Because she had forged the co-owner’s signature on certain key documents, she was able to keep the entire profit of the home sale.
Smith did not file federal income tax returns from 2018 through 2021, and thereby failed to report approximately $1,299,179.01 in income. She prepared false tax returns for her employer and included all of her payments from Medicaid as income for her employer, in an effort to hide the fact that she was fraudulently receiving money from Medicaid.
“This criminal used her position of trust to lie, cheat, and steal from patients, her employer, and the public—fraudulently lining her pockets with over a million dollars intended to provide healthcare to disadvantaged Hoosiers,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “She continued to engage in new fraud schemes even while facing federal charges, demonstrating an utter disregard for the rule of law. Working together with our partners at Internal Revenue Service-Criminal Investigation, FBI, HHS-OIG, and the Indiana Attorney General’s Medicaid Fraud Control Unit, our office is committed to protecting the public by unravelling complex schemes and holding fraudsters accountable. The federal prison sentence imposed here demonstrates that serious financial crimes will result in serious consequences.”
“This case originated from our office’s data mining efforts and confirms the importance of using every technology tool available to bring fraudsters to justice - even perpetrators who hide in the plain sight of a doctor’s office,” said Indiana Attorney General Todd Rokita. “A special thanks to our Investigator Dan Shragal and Fraud Analyst Sarah Simpson for putting their foot down and ending this podiatrist staff member’s practice of sending millions of dollars in Medicaid payments to their own personal bank account.”
“Leslie Smith not only stole from American taxpayers, but her unbridled greed also betrayed her employer’s trust, shattering the fabric of trust that holds a workplace together,” said Justin Campbell, Special Agent in Charge, IRS Criminal Investigation Chicago Field Office. “This prison sentence should serve as a stark reminder of the profound consequences of greed and deception.”
“Through the defendant’s egregious scheme to defraud the Indiana Medicaid program, she placed personal profits ahead of legitimate care and knowingly stole valuable taxpayer funds intended to provide resources for vulnerable populations in need of assistance,” said Special Agent in Charge Mario M. Pinto with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG values the continued collaboration with the Indiana Attorney General’s Medicaid Fraud Control Unit, along with other federal law enforcement partners, and believes today’s sentence sends a strong message that those convicted of defrauding federal and state healthcare programs will be held accountable.”
The Federal Bureau of Investigation, IRS Criminal Investigation Chicago Field Office, U.S. Department of Health and Human Services, Office of the Inspector General, Department of the Treasury, Office of the Inspector General, and Indiana Attorney General’s Office – Medicaid Fraud Control Unit (“MFCU”) investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.
On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
Anyone with information about allegations of attempted fraud involving COVID‑19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
###
Winnebago Man Sentenced for StrangulationRead the Press Release
United States Attorney Susan Lehr announced that Seth J. Lopez, 21, of Winnebago, Nebraska, was sentenced May 24, 2024, in federal court in Omaha, Nebraska for strangulation of an intimate or dating partner. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Lopez to 30 months’ imprisonment. There is no parole in the federal system. After Lopez is released from prison, he will begin a 3-year term of supervised release.
On December 7, 2022, the victim, a Native American woman, arrived at the Winnebago Police Department in Winnebago, Nebraska on the Winnebago Indian Reservation to report being the victim of an assault by Lopez. The victim was accompanied by another woman who had witnessed the assault. Earlier that night, Lopez assaulted the victim when she attempted to leave Lopez’s residence. The witness was accompanying the victim to help her gather her possessions and leave the residence when Lopez assaulted the victim. Lopez threw the victim onto the bed and strangled her by placing both his hands around the victim’s neck and applying pressure. The witness was yelling at Lopez to stop and when he let up, the victim was able to get up off the bed. As the victim tried to leave, Lopez backed the victim into a closet asking her, “Where do you think you’re going?” Lopez then grabbed the victim from behind with his arm around her neck, dragging her back to the bed. When the victim tried to scream, Lopez covered her mouth and face with his free hand, which prevented the victim from screaming and breathing. Lopez’s father heard the altercation, came to the room and told Lopez to stop and let the victim go. The witness to the assault also saw Lopez pull out a knife and hold it toward the victim while the victim’s back was turned from Lopez. Lopez did not attempt to use the knife and the victim herself never saw the knife. The victim had visible bruising and red marks on her neck after the assault.
This case was prosecuted in federal court because the offense occurred on the Winnebago Indian Reservation in what is known as Indian Country, and is an offense under the Major Crimes Act, Title 18, United States Code, Section 1153, giving the United States jurisdiction.
This case was investigated by the Federal Bureau of Investigation, which has law enforcement jurisdiction for felony offenses on the Reservations in the District of Nebraska.
Warren County Sex Offender Pleads Guilty to Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Norbert Morgan, age 54, of Glens Falls, New York, pled guilty last week to distribution of child pornography and possession of child pornography while under post-release supervision for prior child exploitation offenses. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement.
Morgan pled guilty on May 24. According to the plea agreement and documents previously filed in the case, Morgan is a registered sex offender in the State of New York, stemming from his 2006 convictions in the Northern District of New York for sexual exploitation of a minor and possession of child pornography. Morgan admitted that between February and August 2023, he used social networking applications on the internet to distribute numerous videos and images of child pornography. During a search of his apartment, federal agents seized a tablet that contained over 600 images of child pornography.
Morgan was arrested on August 30, 2023, after a complaint was filed in federal court. He has been detained since that date. Morgan also admitted to violating the terms of his supervised release on his prior convictions by committing the new offenses. He is scheduled to be sentenced on the new offenses and his violation of supervised release before United States District Judge Anne M. Nardacci on September 19, 2024.
Morgan faces at least 15 years and up to 40 years in prison on his guilty plea and an additional term of up to 2 years in prison on his violation of supervised release. He also faces a fine of up to $250,000 and a supervised release term of at least 5 years and up to life. Morgan may also be ordered to pay restitution to the victims of his offenses and forfeit the device used in the offenses. 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. Morgan would also have to register as a sex offender upon his release from prison.
HSI investigated this case. Assistant United States Attorney Benjamin S. Clark is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Two Owensboro Men Sentenced to Decades in Federal Prison for Methamphetamine Trafficking OffensesRead the Press Release
Owensboro, KY – Two local men were sentenced to decades in federal prison after they were convicted at a jury trial last year for conspiring to possess with the intent to distribute methamphetamine and possessing with intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Sheila G. Lyons of the DEA Chicago Field Division, and Chief Art Ealum of the Owensboro Police Department made the announcement.
“I commend the outstanding work of the trial team, the DEA, and the Owensboro Police Department for their untiring work and dedication during the investigation and prosecution of this case,” said U.S. Attorney Bennett. “In addition, the assistance provided by our federal, state, and local partners from across the area was crucial to ensuring a successful prosecution of the defendants. The lengthy prison sentences handed down by the Court will make the Western District safer for all who live, work, and visit here.”
According to court documents and evidence presented at trial, Cedric Swanagan, 37, and Courtland Reed, 32, were convicted of conspiring to possess with the intent to distribute over 50 grams of methamphetamine between September 2021 and April 4, 2022, in Daviess County, Kentucky and elsewhere. The jury also convicted both Swanagan and Reed of possession with the intent to distribute over 50 grams of methamphetamine on February 22, 2022, in Daviess County and elsewhere. The evidence presented at trial included recorded phone calls between the defendants that were intercepted during a federal wiretap investigation and evidence involving approximately 876 grams of pure methamphetamine associated with the defendants.
The jury further found that Swanagan had committed one serious drug felony and that Reed had committed one serious drug felony and one violent felony prior to committing the offenses in this case. These findings increased the mandatory minimum sentences for both defendants.
On May 23, 2024, Swanagan was sentenced by a United States District Court Judge for the Western District of Kentucky to 30 years in prison, followed by 10 years of supervised release.
On February 6, 2024, Reed was sentenced by a United States District Court Judge for the Western District of Kentucky to 25 years in prison, followed by 10 years of supervised release.
There is no parole in the federal system.
The DEA and the Owensboro Police Department investigated this case, with assistance from the Daviess County Sheriff’s Office, the Department of Homeland Security Investigations, the Indiana State Police, the Kentucky State Police, the Vanderburgh County Sheriff’s Office, the McLean County Sheriff’s Office, and the Owensboro-Daviess County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Task Force.
Assistant U.S. Attorneys Frank Dahl and Josh Porter prosecuted the case, with assistance from paralegal specialist Aaron Cooper.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
###
Two Men Admit Smuggling Drugs into Jail, Causing Inmate’s DeathRead the Press Release
ST. LOUIS – Two men have admitted involvement in a conspiracy to smuggle drugs into the St. Francois County Jail that resulted in the overdose death of an inmate.
Garry W. Triplett, 37, of Bonne Terre, Missouri, pleaded guilty Tuesday to one count of conspiracy to distribute controlled substances resulting in death and one count of distributing of controlled substances.
Timothy L. Noll, 35, of Park Hills, Missouri, pleaded guilty on May 22, to one count of conspiracy to distribute controlled substances resulting in death and one count of distribution of controlled substances resulting in death.
Both men admitted involvement in a conspiracy to smuggle drugs into the St. Francois County Jail. Noll arrived at the jail on July 27, 2021, and almost immediately began to try and find someone to smuggle drugs into the jail that he could then sell. After finding an intermediary, Noll instructed the intermediary to get the drugs from Triplett. This initial distribution was captured on a video call:
Noll also advised the intermediary on how to conceal the drugs in a bible.
On August 1, an intermediary dropped off the bible at the jail. The next morning, Noll was being transferred to state prison. When he discovered that he couldn’t bring the bible with him, he had staff give it to his cellmate, who died August 4 of mixed drug intoxication. The victim had 19 ng/ml of fentanyl in his bloodstream. As little as 3 ng/ml can be fatal. He had also taken methamphetamine.
On a shelf in his cell, investigators discovered a clear plastic baggie with methamphetamine residue and a King James Bible with a detached spine.
Triplett admitted providing 3 grams of both fentanyl and meth to the intermediary, and Noll admitted providing these controlled substances to his cellmate. They also acknowledged that these controlled substances caused the cellmate’s death.
Noll is scheduled to be sentenced in August, and Triplett in September. The death resulting charge carries a mandatory minimum of 20 years in prison, with a maximum penalty of life and a $10 million fine.
The case was investigated by the Missouri State Highway Patrol. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Traffic Stop in Louisiana Results in Conviction and Sentencing of Four from Texas for Distribution of Cocaine, Methamphetamine and MarijuanaRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that four defendants involved in a drug distribution conspiracy have all been sentenced. United States District Judge S. Maurice Hicks, Jr. sentenced the four defendants as follows:
Kendrick D. Riggins, 46, of El Campo, Texas, was sentenced to 108 months in prison, followed by 5 years of supervised release. Riggins pleaded guilty on December 12, 2023, to one count of conspiracy to distribute 500 grams or more of cocaine.
Myrna B. Grays, 70, of El Campo, Texas, was sentenced April 1, 2024, to 60 months in prison, followed by 4 years of supervised release. Grays pleaded guilty on September 12, 2023, to one count of conspiracy to distribute 500 grams or more of cocaine.
Ricky L. Lawson, 64, of Ganado, Texas, was sentenced to 105 months in prison, followed by 4 years of supervised release. Lawson pleaded guilty on September 12, 2023, to one count of conspiracy to distribute 500 grams or more of cocaine.
Shaheed H. Davis, 35, of Rosenburg, Texas, was previously sentenced on March 5, 2024, to 150 months in prison, followed by 5 years of supervised release. Davis pleaded guilty on November 1, 2023, to one count of conspiracy to distribute 500 grams or more of cocaine.
According to information introduced in court, on January 12, 2022, troopers with the Louisiana State Police were performing stationary patrol on I-20 when they observed a Ford Expedition and a Nissan Versa, both bearing Texas license plates and traveling eastbound. Troopers stopped both cars after observing traffic infractions. The driver of the Ford was identified as Kendrick Riggins and the passenger and owner of that car was identified as Shaheed Davis. The trooper who stopped Riggins and Davis detected a strong odor of marijuana and cologne emanating from within the Ford. The driver of the Nissan was identified as Ricky Lawson and his passenger was identified as Myrna Grays. The Nissan was a rental car. Troopers were able to determine that the two vehicles were traveling together from Texas.
Troopers received consent to search the Nissan and found hidden inside the trunk approximately 945.1 grams of powder cocaine and almost 5,000 pills which contained a mixture and substance of methamphetamine weighing approximately 923.1 grams. Troopers also searched the Ford and found a Taurus 9mm handgun; several magazines and ammunition; marijuana; a box of sandwich baggies; a digital scale with cocaine residue; a razorblade with cocaine residue; a whisk with cocaine residue; and a large amount of cash.
Through their further investigation, law enforcement officers learned that Grays agreed to help Riggins find someone to rent a car for him and that Riggins would pay for half of the rental. Riggins, Grays, and Lawson traveled in the rented Nissan from El Campo, Texas to a gas station where they met Davis. Riggins got in the Ford with Davis and Grays and Lawson followed inside the Nissan.
Each of the defendants were charged with conspiracy to distribute cocaine and possession with intent to distribute cocaine. In addition, Davis was charged with being a convicted felon in possession of a firearm.
The case was investigated by the Drug Enforcement Administration and Louisiana State Police and prosecuted by Assistant United States Attorney Mike Shannon and Retired Assistant United States Attorney Mary Mudrick.
# # #
Three Defendants Sentenced for Federal Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – JONATHAN GONZALEZ (“GONZALEZ”), ANTHONY ROMAN (“ROMAN”), and KEVIN TYLER (“TYLER”), age 25 and residents of New Orleans, were sentenced on May 14, 2024 by U.S. District Judge Jay C. Zainey after previously pleading guilty to violations of the Federal Controlled Substances and Gun Control Acts.
GONZALEZ was sentenced to 104 months imprisonment, followed by 3 years of supervised release, and $500 in mandatory special assessment fees for his convictions for conspiracy to distribute and possess with intent to distribute marijuana and tapentadol, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 846; possession with intent to distribute marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D); possession of a car stolen from the Norfolk Southern Railyard, in violation of 18 U.S.C. § 659; conspiracy to possess firearms in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(o); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
ROMAN was sentenced to 90 months imprisonment, followed by 3 years of supervised release, and $500 in mandatory special assessment fees for his convictions for conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 846; conspiracy to possess firearms in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(o); possession of a car stolen from the Norfolk Southern Railyard, in violation of 18 U.S.C. § 659; possession with intent to distribute tapentadol in violation, of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
TYLER was sentenced to 120 months imprisonment, followed by 4 years of supervised release, and $200 in mandatory special assessment fees for his convictions for possession with intent to distribute 40 grams or more of fentanyl and possession with intent to distribute a quantity of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § (c)(1)(A)(i)
According to court documents, on January 29, 2023, New Orleans Police Department (NOPD) officers observed ROMAN driving an Infinity QX80 that was stolen from the Norfolk Southern Railyard. The Federal Bureau of Investigation (“FBI”) subsequently executed search warrants at two of ROMAN’s residences and recovered tapentadol, marijuana, and 10 firearms.
GONZALEZ was a passenger in the stolen Infinity ROMAN was driving on January 29th. When NOPD officers attempted to perform an investigative stop on the vehicle, GONZALEZ fled on foot but was apprehended after a short chase. He had a Glock Model 19 pistol, an extended magazine containing 29 rounds of ammunition, a large bag of marijuana, a digital scale, and plastic baggies. On May 17, 2023, the FBI executed a search at GONZALEZ’s mother’s residence. GONZALEZ lived at the residence and had a loaded firearm, tapentadol, and marijuana that he intended to sell.
TYLER was intercepted on a Drug Enforcement Agency (DEA) court authorized wire discussing selling kilogram quantities of cocaine and explaining that he mixed fentanyl with other drugs. FBI agents subsequently executed a search warrant at TYLER’s residence and recovered fentanyl, a fentanyl precursor, cocaine, and loaded firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Tea Woman Sentenced for Obtaining a Controlled Substance by FraudRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Tea, South Dakota, woman convicted of Obtaining a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception, and Subterfuge. The sentencing took place on May 24, 2024.
Brittany Enstad, age 40, was sentenced to two years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Enstad was indicted by a federal grand jury in June of 2023. She pleaded guilty on March 6, 2024.
The conviction stemmed from incidents between July 1, 2022, and December 30, 2022, when Enstad, who was working at a registered nurse at the Sanford Canton-Inwood Medical Center in Canton, South Dakota, obtained blister packs from the narcotics cabinet containing OxyContin, removed the OxyContin, and replaced the drug with other medications, such as melatonin and acetaminophen. Enstad then resealed the blister packs knowing that the other medications could be dispensed to patients at the medical center instead of OxyContin. Enstad used the stolen OxyContin for her own use.
“Patients deserve to have confidence that they are receiving the proper treatment from those entrusted with providing their medical care. Those who knowingly tamper with medicines for patients put those patients’ health at risk,” said Special Agent in Charge Ronne Malham, FDA Office of Criminal Investigations, Chicago Field Office. “Our office will continue to pursue and bring to justice healthcare professionals who take advantage of their position and compromise patients’ health and comfort by tampering with needed drugs.”
This case was investigated by the Food and Drug Administration – Office of Criminal Investigation and the DEA. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
St. Louis Felon Admits Being Caught with Stolen GunRead the Press Release
ST. LOUIS –A convicted felon from St. Louis, Missouri on Tuesday admitted being caught by police with a stolen gun after fleeing from a carjacked vehicle.
Cedric Cross Sr., 42, pleaded guilty to one felony count of being a felon in possession of a firearm. He admitted that on Jan. 30, 2022, he was caught by Saint Louis Metropolitan Police Department officers while armed after jumping out of a carjacked truck. Cross was the passenger, and the driver had led police on a high-speed chase before crashing. Cross’ gun was stolen. He denied being one of two armed men who carjacked the truck earlier that evening at the intersection of Marcus Avenue and Martin Luther King Drive.
In his plea agreement, Cross also disputed shooting a paramour in the Walnut Park West neighborhood of St. Louis the day before the carjacking. The victim said after an argument, Cross pulled out a gun and started shooting, hitting her four times. Ballistics evidence from the shooting matched the handgun found with Cross the next day.
Cross is scheduled to be sentenced Tuesday, May 28th, 2024. He also potentially faces additional prison time for violating his supervised release from a prior felon in possession case in U.S. District Court in East St. Louis. In 2017, he was sentenced there to 63 months in prison after being caught with a stolen .38-caliber revolver.
The case was investigated by the Saint Louis Metropolitan Police Department. Assistant U.S. Attorney Catherine Hoag 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.
Sinaloa Cartel Leader Nestor Isidro Perez Salas, A/K/A “Nini,” Extradited to the United States on Drug Importation, Murder, Kidnapping, Firearms, and Money Laundering ChargesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Merrick B. Garland, the Attorney General of the United States, announced that Sinaloa Cartel leader Nestor Isidro Perez Salas, a/k/a “Nini,” was extradited Saturday, May 25, from Mexico to the U.S. based on the charges contained in two Indictments. The first, filed in the District of Columbia by the Criminal Division’s Narcotic and Dangerous Drug Section (the “NDDS Indictment”), charges PEREZ SALAS with cocaine and methamphetamine importation, firearms offenses, and conspiracy to obstruct justice through murder. The second, filed in the Southern District of New York (the “SDNY Indictment”) charges Perez Salas with leadership of a continuing criminal enterprise resulting in the deaths of numerous victims, including a confidential source for the Drug Enforcement Administration ("DEA"), fentanyl importation and trafficking, obstruction of justice by murdering an informant, kidnapping resulting in the deaths of eight people, including a minor boy, firearms, and money laundering offenses. Perez Salas was arrested in Mexico by Mexican authorities on November 22, 2023. Perez Salas was presented on the charges contained in the SDNY Indictment today before U.S. Magistrate Judge Ona T. Wang. Perez Salas will be arraigned before U.S. District Judge Katherine Polk Failla on May 30, 2024, at 3:00 p.m.
According to the allegations contained in the NDDS Indictment, SDNY Indictment, other court filings, and statements made during court proceedings:[1]
The Sinaloa Cartel (the “Cartel”) is one of the most powerful drug cartels in Mexico and is responsible for the manufacturing and importing of fentanyl for distribution in the U.S. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin and is the leading cause of death for Americans ages 18 to 49.
In recent years, the Cartel has been led, in part, by the sons of the Cartel’s notorious former leader, Joaquin Archivaldo Guzman Loera, a/k/a “El Chapo”—Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Ovidio Guzman Lopez—known collectively as the “Chapitos.”[2] Like their father, who, in July 2017, was sentenced to a term of life plus 30 years in prison, the Chapitos have used violence and rely on a sophisticated security apparatus to maintain control and to protect themselves and their operations as they traffic massive quantities of narcotics, including fentanyl, cocaine, and methamphetamine, to the U.S.
PEREZ SALAS is one of the senior leaders of the Chapitos’ security apparatus. Under PEREZ SALAS’s direction, armed enforcers for the Chapitos, known as sicarios, have used rampant violence to protect the Chapitos’ operation and to demolish unsupportive businesses, capture contested territory, intimidate civilians, and attack and murder law enforcement which resist their efforts. In part under the direction of PEREZ SALAS, these sicarios regularly used military-grade firearms and explosives, including machineguns and rocket launchers, to kidnap, torture, and kill anyone who opposed the Chapitos. This relentless violence has led to rampant bloodshed and taken the lives of untold victims.
PEREZ SALAS has also personally committed brutal acts of violence to advance the Chapitos’ trafficking operations. For example, in or about 2017, PEREZ SALAS, with two of the Chapitos, captured, tortured, interrogated, and killed two Mexican federal law enforcement officers. In or about May 2017, PEREZ SALAS, with two of the Chapitos and others, captured three members of a rival drug cartel, Los Zetas, and tortured them with electrocution before interrogating and killing them. Also in or about 2017, PEREZ SALAS and others conspired to kill and retaliate against a witness and informant. And in or about 2022, PEREZ SALAS and another sicario tested the potency of their fentanyl on individuals, and also experimented on a woman by injecting her repeatedly with the dangerous drug until she overdosed and died.
In addition, PEREZ SALAS has personally participated in the negotiation and sale of large quantities of fentanyl. More specifically, in or about the summer of 2022, PEREZ SALAS and other associates sold fentanyl (later seized by the DEA) in Los Angeles. During the course of these sales, among other things, PEREZ SALAS described that he owned his own fentanyl labs and that three fentanyl “cooks” from one of his labs had recently died from sampling the product because it was so potent.
Finally, most recently, in or about October 2023, PEREZ SALAS, and other sicarios acting at his direction, kidnapped a DEA confidential source and 10 other victims in Mexico—including a U.S. citizen—whom PEREZ SALAS believed worked for or were related to the confidential source. PEREZ SALAS and his sicarios killed eight of the kidnapped victims, including the DEA confidential source, and a thirteen-year-old boy. PEREZ SALAS kidnapped and killed these victims in retaliation for the confidential source’s provision of information to the DEA in connection with the investigation of PEREZ SALAS and his associates in the Southern District of New York.
* * *
PEREZ SALAS, 32, a Mexican national, is charged in the SDNY Indictment with: one count of participating in a continuing criminal enterprise resulting in death, which carries a mandatory sentence of life in prison; one count of conspiring to import fentanyl into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of conspiring to distribute and possess with intent to distribute fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of using, carrying, and possessing machine guns and destructive devices in connection with the continuing criminal enterprise and the fentanyl importation and trafficking conspiracies, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; one count of conspiring to use, carry, and possess machine guns and destructive devices in connection with the continuing criminal enterprise and the fentanyl importation and trafficking conspiracies, which carries a maximum sentence of life in prison; one count of conspiring to launder money, which carries a maximum sentence of 20 years in prison; one count of obstruction of justice by retaliating against an informant through murder, which carries a mandatory sentence of life in prison; one count of conspiring to obstruct justice by retaliating against an informant through murder, which carries a mandatory sentence of life in prison; one count of kidnapping resulting in death, including of a minor, which carries a mandatory sentence of life in prison; and one count of conspiring to commit kidnapping resulting in death, including of a minor, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. PEREZ SALAS is charged in the NDDS Indictment with one count of conspiring to import cocaine and methamphetamine into the U.S., which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of using, carrying, and possessing machineguns and destructive devices in connection with the cocaine and methamphetamine conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and one count of conspiracy to obstruct justice by retaliating against a witness and informant through murder, which carries a mandatory sentence of life in prison.
The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The DEA’s Special Operations Division Bilateral Investigations Unit and the FBI Washington Field Office investigated this case, with assistance from multiple DEA offices, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division; the U.S. Department of State, Rewards for Justice Program; and the U.S. Marshals Service. The Justice Department also thanks Mexican authorities for their key role in securing the arrest and extradition of PEREZ SALAS.
This prosecution is being handled by the Southern District of New York’s National Security and International Narcotics Unit alongside the NDDS. SDNY Assistant U.S. Attorneys Nicholas S. Bradley, Sarah L. Kushner, Alexander N. Li, David J. Robles, and Kyle A. Wirshba, and NDDS Trial Attorneys Kirk Handrich, Kate Naseef, Samantha Thompson, and Tara Arndt, are in charge of the prosecution.
The charges contained in the SDNY Indictment and NDDS Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the NDDS Indictment and the SDNY Indictment and the description of the other court filings set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] In September 2023, Ovidio Guzman Lopez was extradited to the U.S. on charges relating to his drug trafficking operations as a leader of the Cartel.
Sharon Drug Trafficker Pleads Guilty to Conspiring to Distribute Cocaine, Fentanyl, and Heroin and to Launder Drug ProceedsRead the Press Release
PITTSBURGH, Pa. - A resident of Sharon, Pennsylvania, pleaded guilty in federal court to conspiring both to engage in drug trafficking and to launder drug trafficking proceeds, United States Attorney Eric G. Olshan announced today.
London Pinkins, 29, pleaded guilty before United States District Judge Cathy Bissoon to (1) conspiring to distribute 500 grams or more of cocaine, 400 grams or more of fentanyl, and 100 grams or more of heroin between June 2020 and June 2021 and (2) conspiring to launder drug trafficking proceeds between February 2021 and June 2021.
Judge Bissoon scheduled sentencing for October 1, 2024. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department conducted the investigation that led to the prosecution of Pinkins.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Sacramento Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — John Damian, 30, of Sacramento, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 8, 2023, law enforcement officers attempted to serve a search warrant on an armed robbery suspect who was walking with Damian. Damian was on parole for multiple felonies and was subject to a search clause. Damian initially hesitated to comply with the law enforcement officers commands and attempted to go around the side of the robbery suspect’s vehicle. But as the officers approached him, he admitted to having a gun. A loaded Glock 27 semi-automatic firearm was found in his right sweatshirt pocket. The firearm contained a 13-round magazine loaded with .40 caliber ammunition, but no round in the chamber. In his left sweatshirt pocket, detectives located approximately 20.74 grams of cocaine. Damian has previously been convicted of multiple felonies including assault with force likely to produce great bodily injury, being a felon in possession of a firearm, assault on person with a semi-automatic firearm, and willful discharge of a firearm in a negligent manner.
Damian is scheduled to be sentenced by U.S. District Judge William B. Shubb on Aug. 26, 2024. Damian faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Special Assistant U.S. Attorney Matthew De Moura 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Roslindale Man Pleads Guilty to Illegally Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
BOSTON – A Heath Street Gang member/associate pleaded guilty today in federal court in Boston to unlawfully possessing a firearm.
Deondre Blanding, 27, of Roslindale, pleaded guilty to one count of possession of a firearm in in furtherance of a drug trafficking crime. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 6, 2024. Blanding was charged and arrested in February 2024, along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms and financial fraud charges.
On Oct. 8, 2023, Blanding arranged to buy three pounds of marijuana from an individual and arrived to the deal armed with a firearm. The arranged drug deal resulted in a shooting in the middle of a Randolph neighborhood involving Blanding and two other individuals. Prior to this shooting, investigators had identified Blanding as being a marijuana dealer for the Heath Street Gang who distributed pound-quantity amounts of marijuana.
The charge of possession of firearm in furtherance of violent or drug trafficking crime provides for a mandatory sentence of five years up to life in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Randolph Police Department. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.