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Thursday 23 May 2024
Colorado Man Sentenced for Distributing a Controlled Substance Resulting in Serious Bodily Injury and ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced an Aurora, Colorado, man convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Conspiracy to Distribute a Controlled Substance.
Anthony Ward, age 39, was sentenced on May 17, 2024, to 30 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
A co-conspirator, Darnell Young, was sentenced to 17 years and six months in federal prison on October 24, 2023.
Both defendants were indicted by a federal grand jury in the spring of 2023. Anthony Ward was found guilty of conspiracy to distribute a controlled substance resulting in serious bodily injury and conspiracy to distribute a controlled substance following a four-day federal jury trial in Rapid City, South Dakota, that concluded on February 26, 2024.
The convictions stem from an investigation into Ward that started in the spring of 2022. Investigators eventually stopped a vehicle that Ward was traveling in and found approximately 150 fentanyl pills, $2,859.00 in cash, and a handgun in a bag in the trunk of the vehicle. Through the investigation, law enforcement learned that Ward was responsible for sourcing thousands of fentanyl pills from Denver to Rapid City. They also learned that he sourced a fentanyl pill that was eventually distributed to someone in Rapid City who smoked the pill and overdosed. Another person present at the scene was able to revive the victim with Narcan. Ward also received a sentencing enhancement for lying under oath during his trial.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Ward was immediately remanded to the custody of the U.S. Marshals Service.
Co-Owner of Clark County automotive shop convicted of violating Clean Air ActRead the Press Release
Tacoma – The co-owner of two Clark County automotive businesses was convicted today of conspiracy and eleven felony counts of violating the federal Clean Air Act for tampering with diesel trucks’ emissions monitoring systems, announced U.S. Attorney Tessa M. Gorman. Tracy Coiteux, 44, of La Center, Washington, is the co-owner of Racing Performance Maintenance Northwest (known as RPM) and a related sales company called RPM Motors and Sales NW. A jury convicted Coiteux following a three-day jury trial. The jury deliberated for three hours before returning the guilty verdicts. U.S. District Judge Benjamin H. Settle scheduled sentencing for August 19, 2024.
An indictment returned in May 2021, charged Coiteux and her husband, Sean Coiteux, 50, and the service manager, Nick Akerill, 44, with conspiracy to violate the Clean Air Act and eleven specific violations of the Clean Air Act for tampering with the emissions-monitoring system on vehicles when removing pollution control equipment between January 2018 and November 2020.
Sean Coiteux pleaded guilty in March 2024 and is scheduled for sentencing on August 13, 2024. Akerill pleaded guilty to state pollution charges and was sentenced to work 30 days on a Clark County work crew.
According to records filed in the case and testimony at trial, the investigation began when a former RPM employee notified the EPA that the company was performing the unlawful modifications, which are known as “deletes” and “tunes.” A single truck that has been deleted and tuned can cause the same amount of pollution as up to 1,200 trucks with compliant emissions systems. These modifications are marketed to truck owners as improving vehicle power and performance.
The investigation revealed that between January 2018 and January 2021, the defendants charged their customers fees of about $2,000 per truck to remove (delete) emissions control systems required by federal law. They then modified (tuned) legally required software that works to ensure the vehicle’s pollution remains within legal limits. RPM Motors and Sales sometimes offered, as part of the sale of a truck, to remove the emissions control system after the customer purchased a truck. Email and other electronic records document the conspirators’ purchase of equipment and software kits to remove the pollution control and reprogram the monitoring systems.
When agents executed a court authorized search warrant in January 2021, they found some of the emissions parts that had been removed and the replacement tailpipes. They found records detailing some 375 instances of removal of the emissions control hardware and software.
Over the three years described in the court records, the defendants took in more than $500,000 for the modifications that violate the Clean Air Act.
Conspiracy is punishable by up to five years in prison. Each violation of the Clean Air Act is punishable by up to two years in prison and a $250,000 fine. The actual sentence will be determined by Judge Settle after considering the sentencing guidelines and other statutory factors.
The case is being investigated by Environmental Protection Agency’s Criminal Investigation Division.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Cindy Chang and Environmental Protection Agency Special Assistant United States Attorney Karla Gebel Perrin.
Chicago Man Convicted of Federal Gun ChargeRead the Press Release
HAMMOND- Late yesterday, Hamidullah Tribble, 28 years old, of Chicago, Illinois, was convicted of being a felon in possession of a firearm following a two-day jury trial before United States District Court Judge Philip P. Simon, announced United States Attorney Clifford D. Johnson.
Tribble’s sentencing will be scheduled at a later date. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Lake County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Kimberly L. Schultz.
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.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Gregory D’Arquaes Zander, 35, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on March 11, 2024, law enforcement officers conducted a traffic stop of a vehicle in which Zander was a passenger and a second vehicle, a blue truck, on Interstate 77 North near the Kanawha County-Jackson County line. Officers found a rifle case in the blue truck containing six firearms: a Smith & Wesson model M&P 10mm M2.0 10mm pistol, a Springfield Armory model DS Prodigy 9mm pistol, a Smith & Wesson model M&P 9 9mm pistol, a Kimber model Rose Gold Ultra II .45-caliber ACP pistol, a Glock model 17 Gen 4 9mm pistol, and a CMMG model MK4, 5.78x28mm pistol. Officers also found a wallet in the blue truck containing Zander’s state identification card and birth certificate and receipts for the purchase of two of the firearms.
The receipts listed the driver of the blue truck as the purchaser. The driver told investigators that Zander paid him to drive the blue truck to Michigan and directed him to place the rifle case in that vehicle earlier that day while it was parked outside two adjacent apartments maintained by Zander in Charleston. The driver also admitted that he purchased several firearms for Zander at Zander’s direction and with money provided by Zander, and transported the firearms to one of Zander’s Charleston apartments after each purchase.
Investigators established that Zander had accompanied the driver during the purchase of the four other seized firearms and wore one of the firearms on his ankle during a purchase.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Zander knew he was prohibited from possessing firearms because of his prior felony conviction for possession with intent to deliver a controlled substance, methamphetamine, in Kanawha County Circuit Court on September 22, 2021.
Zander is scheduled to be sentenced on August 22, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-55.
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Cavendish, Vermont Man Sentenced to 14 Months for Unlawful Receipt of a FirearmRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 23, 2024, Mitchell Horton, 37, of Cavendish, Vermont, was sentenced by Chief United States District Judge Geoffrey W. Crawford to a term of 14 months’ imprisonment to be followed by a 3-year term of supervised release. Horton previously pleaded guilty to receiving a firearm while under indictment for a New Hampshire felony.
According to court records, on April 3, 2023, Horton possessed a Smith and Wesson .380 semi-automatic pistol in his waistband. Vermont State Police seized this firearm from Horton upon his arrest for the theft of diesel fuel in Cavendish, Vermont on April 3, 2023. Following his arrest, Horton admitted to law enforcement that he purchased the pistol from another person. On or about April 3, 2023, Horton knew that he was under indictment in the State of New Hampshire for Theft by Unauthorized Taking, a Class A Felony, that carries with it a maximum penalty of fifteen years of imprisonment.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Vermont State Police, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Office of the Grafton County (New Hampshire) Attorney.
The case was prosecuted by Assistant U.S. Attorneys Gregory L. Waples and Zachary B. Stendig. Horton was represented by Assistant Federal Public Defender Sara Puls, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
Carbon County Man Sentenced to 132 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Curtis Margle, age 34, of Lehighton, Carbon County, was sentenced on May 21, 2024, by U.S. District Court Judge Robert D. Mariani, to 132 months’ imprisonment on the charge of possession with intent to distribute crystal methamphetamine.
According to United States Attorney Gerard M. Karam, Margle pleaded guilty and admitted to possessing between 200 grams and 350 grams of high-quality crystal methamphetamine for distribution in the Schuylkill County and Carbon County areas in 2022. The charges stem from an investigation in which investigators made a purchase of crystal methamphetamine from Margle in March 2022 in Schuylkill County and later seized an additional quantity of crystal methamphetamine from Margle.
The charges against Margle resulted from an investigation conducted by the Federal Bureau of Investigation and the Schuylkill County Drug Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Bộ Tư pháp đạt thỏa thuận giải quyết rào cản ngôn ngữ cho các gia đình học khu Cherry Creek, tiểu bang ColoradoRead the Press Release
Hôm nay, Bộ Tư pháp thông báo đã đạt được một thỏa thuận dàn xếp với Học khu Cherry Creek (CCSD), một trong những học khu lớn nhất ở Colorado, để cải thiện đáng kể các dịch vụ tiếp cận ngôn ngữ cho phụ huynh có trình độ tiếng Anh hạn chế. Thỏa thuận nhằm giải quyết các cáo buộc rằng học khu đã không giao tiếp với các phụ huynh này bằng loại ngôn ngữ mà họ có thể hiểu được, dẫn đến việc họ không nhận được thông tin quan trọng về giáo dục con cái.
“Cha mẹ nào cũng cần được biết đầy đủ về việc giáo dục con cái họ,” Trợ lý Bộ trưởng Tư pháp Kristen Clarke phụ trách Vụ Dân quyền của Bộ Tư pháp cho biết. “Giao tiếp cởi mở và hiệu quả giữa nhà trường và phụ huynh, kể cả phụ huynh có trình độ tiếng Anh hạn chế, là điều cần thiết để học sinh nào cũng được tiếp cận cơ hội giáo dục một cách bình đẳng. Bộ Tư pháp sẽ tiếp tục hành động để đoan chắc rằng các học khu thực hiện các bước để giúp phụ huynh vượt qua rào cản ngôn ngữ đã ngăn họ tham gia đầy đủ vào việc giáo dục con cái.”
“Phụ huynh có trình độ tiếng Anh hạn chế đang đối mặt với những rào cản để hiểu rõ cách thức hoạt động của các trường công lập,” Ông Cole Finegan, Biện lý Liên bang khu vực Colorado cho biết. “Thỏa thuận này nhằm biết chắc Học khu Cherry Creek thực hiện các chính sách và cách làm việc để giúp tất cả phụ huynh trong học khu tham gia một cách có ý nghĩa vào việc giáo dục con cái. Chúng tôi kêu gọi tất cả các học khu ở Colorado xem xét lại các hoạt động để đảm bảo rằng họ tuân thủ nghĩa vụ cung cấp dịch vụ hỗ trợ ngôn ngữ cho phụ huynh có trình độ tiếng Anh hạn chế.”
CCSD phục vụ khoảng 53.000 học sinh có phụ huynh nói trên 150 thứ tiếng. Văn phòng Biện lý Liên bang khu vực Colorado đã nhận được nhiều khiếu nại cáo buộc rằng phụ huynh có trình độ tiếng Anh hạn chế không thể tham gia một cách có ý nghĩa vào các chương trình và hoạt động quan trọng của trường vì học khu không cung cấp cho họ các dịch vụ hỗ trợ ngôn ngữ phù hợp và hiệu quả. Ví dụ, có khiếu nại cáo buộc rằng học khu đã không có thông dịch viên và dịch vụ dịch thuật cho phụ huynh có trình độ tiếng Anh hạn chế khi họ ghi danh cho con cái họ vào các trường của học khu và cũng không có các dịch vụ đó trong các buổi điều trần về đuổi học và các thủ tục áp dụng biện pháp kỷ luật khác.
Văn phòng Biện lý Liên bang, phối hợp với Vụ Dân quyền của Bộ Tư pháp, đã điều tra các khiếu nại dựa theo Đạo luật Cơ hội Giáo dục Bình đẳng ban hành năm 1974.
Nhằm giải quyết cuộc điều tra của bộ, học khu đã đồng ý cải thiện thông tin liên lạc trong các lĩnh vực quan trọng, bao gồm:
- Ghi danh: Học khu sẽ xác định phụ huynh nào có trình độ tiếng Anh hạn chế đang ghi danh cho con cái họ vào các trường trong học khu, ghi nhận ngôn ngữ giao tiếp mà họ ưa thích để cung cấp cho họ các dịch vụ hỗ trợ ngôn ngữ, giúp họ hiểu thủ tục ghi danh.
- Thủ tục áp dụng biện pháp kỷ luật với học sinh: Học khu sẽ dịch các thư liên quan đến việc ngưng học và đuổi học sang ngôn ngữ ưa thích của phụ huynh có trình độ tiếng Anh hạn chế và cung cấp các dịch vụ hỗ trợ ngôn ngữ trong quá trình kỷ luật có thể dẫn đến ngưng học hoặc đuổi học.
- Giao tiếp với phụ huynh có trình độ tiếng Anh hạn chế: Học khu sẽ thực hiện các cuộc khảo sát và tổ chức các buổi lắng nghe dư luận bằng hơn một chục ngôn ngữ để nắm vững hơn nhu cầu giao tiếp của phụ huynh có trình độ tiếng Anh hạn chế.
Việc thực thi Đạo luật Cơ hội Giáo dục Bình đẳng ban hành năm 1974 là ưu tiên hàng đầu của Vụ Dân quyền. Thông tin thêm về Vụ Dân quyền có để trên trang web của vụ tại địa chỉ www.justice.gov/crt và thông tin thêm về công việc của Phòng Cơ hội Giáo dục có để tại www.justice.gov/crt/educational-opportunities-section.
Muốn báo cáo cho Vụ Dân quyền về một hành vi có thể vi phạm dân quyền, vui lòng ghé www.civilrights.justice.gov/. Thông tin thêm về chương trình thực thi dân quyền của Văn phòng Biện lý Liên bang có thể xem tại www.justice.gov/usao-co/civil-rights-enforcement.
Buffalo man pleads guilty to multiple charges for his role in drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Joseph Zaso a/k/a Joey Cracks a/k/a Sosa, 40, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to narcotics conspiracy, possession of a firearm in furtherance of drug trafficking, and concealment of material fact. The charges carry a mandatory minimum penalty of 20 years in prison, and a maximum of life in prison.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between September 2018, and May 2022, Zaso conspired with others to sell significant quantities of heroin and fentanyl in the Jamestown, NY, area. Zaso, the leader of the drug trafficking activity, was the source of supply for several Jamestown drug dealers, and used a series of dealers and runners to facilitate his operation. During the conspiracy, Zaso possessed firearms to protect his supply of narcotics, from which he obtained substantial income and resources. On May 26, 2022, search warrants were executed at his Buffalo residence, during which investigators seized drug paraphernalia.
During the conspiracy, Zaso was under the supervision of U.S. Probation in the Western District of New York, following a 2015 conviction in the Eastern District of Michigan. Zaso was required to submit monthly reports to U.S. Probation, which included information about his employment. Zaso signed and submitted monthly reports falsely reporting his employment. Zaso also falsely concealed his income and the existence of bank accounts under his control in addition to lying about his employment. Zaso did not report his actual income because most of it was derived from drug trafficking.
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 plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
Sentencing is scheduled for September 30, 2024, before Judge Vilardo.
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Brookline Woman Pleads Guilty to Embezzling More Than $650,000 from Medical PracticeRead the Press Release
BOSTON – A former office manager of a Brookline medical practice pleaded guilty today to embezzling over $650,000 from the practice over several years.
Kathleen Libby, 40, of Brookline, pleaded guilty to one count of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 4, 2024.
Libby stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.” In doing so, Libby created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.
In addition, Libby used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites. Libby also placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Binghamton Woman Charged with Social Security Fraud Related to her Theft of Benefits Intended for a MinorRead the Press Release
SYRACUSE, NEW YORK – Loretta Washington, 59, of Binghamton, New York, was arraigned today on a federal indictment charging her with 38 counts of social security fraud, United States Attorney Carla B. Freedman and Bradley Parker, Acting Special Agent in Charge of the Social Security Administration Office of Inspector General (SSA-OIG), New York Field Office announced.
According to the indictment, Washington had applied for and was receiving the social security benefits for a minor as her representative-payee. A representative-payee is a person or organization selected by the SSA to receive benefits on behalf of a beneficiary who is unable to manage their payments. Washington is accused of stealing over $25,000 in social security benefits intended for a minor between October 2018 and November 2021.
The charges filed against Washington carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The Social Security Administration-Office of Inspector General (SSA-OIG) is investigating the case and Special Assistant U.S. Attorney Paul Tuck is prosecuting the case.
Berkeley County Business Owners Admit to Tax FraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – The owners of three Inwood, West Virginia businesses have admitted to failing to pay $300,000 in income taxes.
Mark L. Peters, 55, and Aimee Michelle Peters, 52, the owners and operators of Pizza Oven; Dragonfly Health, LLC; and Allied Light and Sound, pled guilty to conspiracy to obstruct or impede the Internal Revenue Service. According to court documents, Mark and Aimee Peters failed to declare nearly $1.3 million in income to the IRS for four years.
Mark and Aimee Peters each face up to five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As a part of their plea agreements, the defendants agreed to pay $672.286.59, which includes the tax loss, penalties, and interest.
The case was investigated by the Internal Revenue Service – Criminal Investigations.
Assistant U.S. Attorney Eleanor Hurney is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
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Bay Area Serial Bank Robber Sentenced to More Than Five Years in PrisonRead the Press Release
SAN FRANCISCO – Brandon Elder was sentenced to 63 months in prison for bank robbery, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI), San Francisco Field Office, Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. James Donato, United States District Judge.
Elder, 29, of Antioch, pleaded guilty to the charge on December 14, 2023. According to court filings, Elder walked into a bank in the Marina District of San Francisco on September 20, 2022, wearing a black hoodie, black facemask, and blue gloves. He approached the teller window, stated “this is a robbery,” and demanded “50s” and “100s.” The teller handed over $10,000 in cash to Elder, who ran out of the bank and back to his getaway car in a nearby parking garage. Elder was arrested two days later in Pleasant Hill, Calif., while shoplifting a PlayStation from a Target with $7,867 cash in his pocket. A grand jury indicted Elder on November 1, 2022, charging him with one count of bank robbery, in violation of 18 U.S.C. § 2113(a). Elder pleaded guilty to the charge without a written plea agreement.
Elder committed this bank robbery while still on post-release community supervision. He had been released from state custody only 19 days earlier after serving a custodial sentence related to the robbery of a bank he committed on January 26, 2022, in Brentwood, Calif. In addition, Elder already had been convicted of 11 other thefts in state court, including a violent incident during which he slashed a loss prevention officer with a box cutter.
“Repeat offenders like Brandon Elder should not be allowed to continue terrorizing the community,” said United States Attorney Ismail J. Ramsey. “Enough is enough. This Office will ensure that criminals like Mr. Elder face serious repercussions for their actions.”
“Elder used threats and intimidation to terrorize the employees of the bank he robbed,” said Special Agent in Charge Robert Tripp. “His complete disregard for the law demanded justice, and justice he received with this sentence. The FBI will not waver when it comes to preserving the peace of our community by taking dangerous criminals off the streets.”
In addition to sentencing Elder to prison, Judge Donato ordered the defendant to serve a year of supervised release to begin after his prison term is completed. The defendant was immediately remanded into custody.
Assistant U.S. Attorney George Hageman is prosecuting the case with the assistance of Lakisha Holliman. The prosecution is the result of an investigation by the FBI.
Bakersfield Man Indicted for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Roman Rodriguez, 26, of Bakersfield, charging him with receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Feb. 18, 2024, and Feb. 22, 2024, Rodriguez used an iPhone to receive and distribute at least one visual depiction of a child engaged in sexually explicit conduct. Rodriguez used several other devices to receive visual depictions of a child engaged in sexually explicit conduct during multiple other timeframes that began as early as October 2022.
This case is the product of an investigation by the Homeland Security Investigations and the Bakersfield Police Department. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of up to 20 years in prison, with a mandatory minimum of five years in prison, and a fine of up to $250,000. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Arizona Man Admits to $4.4 Million Conspiracy to Defraud IRSRead the Press Release
NEWARK, N.J. – An Arizona man admitted today that he conspired to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.
Walid Khater, 38, of Mesa, Arizona, pleaded guilty today before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Walid Khater’s conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and is scheduled to be sentenced on June 12, 2024.
U.S. Attorney Philip R. Sellinger“Walid Khater has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to fleece the IRS of millions of dollars. With the help of our law enforcement partners, we will aggressively pursue these illegal and dangerous schemes, and those who perpetrate them will be called to answer for their crimes.”
“Investigating individuals who use stolen identities to file fraudulent returns for personal gain is a top priority at IRS Criminal Investigation,” Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “We will continue working with our law enforcement partners to investigate and prosecute individuals who attempt to cheat our tax system on the backs of innocent taxpayers.”
“Khater admits he worked with his co-conspirator to steal personal information from his victims to file fake tax returns,” FBI – Newark Special Agent in Charge James E. Dennehy said. “He then used a chunk of the $4.4 million he stole to gamble. Adding to his already flagrant criminal acts, he filed his winnings as income to get tax refunds - stealing even more money from the federal government. His luck seems to have finally run out.”
According to documents filed in this case and statements made in court:
Walid and Omar Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.
The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, totaling $4.49 million, which the Khaters and others directed to various bank accounts that they controlled.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 9, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to today’s guilty plea. He also thanked the NJ Transit Police.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
khater.information.pdfAnchorage man sentenced to 11 years for drug, firearm crimesRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was sentenced yesterday to 11 years in prison and four years’ supervised release for possessing firearms as a felon and possessing drugs with an intent to distribute them.
According to court documents, on Jan. 28, 2021, law enforcement found Joseph Franks, 42, asleep in a running tow truck along a road in Big Lake. Franks had an active warrant for his arrest and was asked to step out of the vehicle. Upon his arrest, law enforcement found a loaded pistol magazine on his person. They obtained a search warrant for the tow truck and found a backpack containing two stolen pistols, six pistol magazines and over 300 grams of marijuana, among other items, and a safe containing over 60 grams of heroin and paraphernalia commonly used for drug distribution.
Less than a week later, law enforcement attempted to stop a vehicle in Wasilla, but the vehicle fled, leading to a high-speed chase for several miles. Spike stripes were deployed, causing the vehicle to crash, but the driver, later determined to be Franks, broke the driver’s side window and fled from the vehicle on foot. Franks was apprehended by a K9 and law enforcement found $1,770 in cash and a small container with cocaine on his person, and $3,550 in cash, over 61 grams of marijuana, over 35 grams of meth, over 85 grams of heroin, and small amounts of psilocybin and cocaine inside a locked duffle back in the vehicle’s trunk.
“Mr. Franks repeatedly disregarded the law and endangered the community with his criminal conduct,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will continue to work closely with our law enforcement partners to pursue justice against defendants who choose to commit criminal acts, especially activity that puts our communities at risk like firearm and drug trafficking offenses.”
“The defendant continued to plague our community with serious crimes involving drugs, stolen firearms, and reckless flight from law enforcement,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This sentence, stemming from a joint investigation with the Alaska State Troopers, exemplifies our shared commitment in keeping our communities safe.”
“The sentence handed down in this prosecution is a significant victory in the Alaska State Trooper’s fight against drug trafficking occurring across the State of Alaska,” said Captain Cornelius Sims, Captain of the Alaska State Trooper’s Statewide Drug Enforcement Unit. “The Alaska State Troopers will continue to work tirelessly with our local, state, and federal law enforcement partners to interrupt drug trafficking in Alaska and hold those that peddle these dangerous drugs accountable for their actions.”
The FBI Anchorage Field Office and Alaska State Troopers investigated the case.
Assistant U.S. Attorneys Jennifer Ivers and Alana Weber prosecuted the case.
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Albany Man Sentenced to Prison for Stealing Nearly $1 Million in Federal FundsRead the Press Release
ALBANY, NEW YORK – Asjid Parvez, age 38, of Albany, was sentenced today to 18 months in prison for stealing nearly $1 million in federal funds from a program that helped struggling farmers pay off their loans.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
In 2022, the Inflation Reduction Act authorized the United States Department of Agriculture’s Farm Service Agency (FSA) to financially assist certain distressed borrowers who had fallen behind on repaying their federally guaranteed farm loans. Parvez was one such borrower, having defaulted on a loan that he had used to purchase a Maryland chicken farm in 2014.
In previously pleading guilty, Parvez admitted that in May 2023, the FSA sent him a United States Treasury check in the amount of $972,564.61. Parvez knew that he needed to use these funds to pay off the federally guaranteed farm loan on which he had defaulted. But instead, he stole the money, and used the funds to pay personal expenses and to fund real estate investments. Parvez stole the money by opening a bank account in the name of his lender; depositing the Treasury check – which was jointly payable to the defendant and the lender – into that account; and then quickly transferring the Treasury funds to other accounts that he controlled.
United States District Judge Anne M. Nardacci also ordered Parvez to serve 3 years of post-imprisonment supervised release and pay $972,564.61 in restitution to the FSA.
The FBI has already seized $516,974.54 traceable to the federal funds that Parvez stole, and the U.S. Attorney’s Office’s Asset Recovery Unit has filed a civil action seeking the forfeiture of a residential property in Albany that was purchased using approximately $202,675 in stolen funds.
The FBI investigated this case, with assistance from the United States Department of Agriculture Office of Inspector General.
Assistant U.S. Attorney Michael Barnett prosecuted this case, and Assistant U.S. Attorney Elizabeth Conger is representing the United States in the asset forfeiture action.
60 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Ponce, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On May 22, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging 60 gang members from the municipality of Ponce with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. This investigation was led by Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), and the Puerto Rico Police Bureau (PRPB), Ponce Strike Force, with the collaboration of the Puerto Rico National Guard Counterdrug Program, the U.S. Marshals Service, the Federal Bureau of Investigation (FBI), Customs and Border Protection (CBP), CBP Air and Marine Operations, U.S. Border Patrol Tactical Unit (BORTAC), the U.S. Coast Guard, and the Puerto Rico Department of Treasury (Hacienda).
“Too many lives have been lost because of drug trafficking and the violence it causes. This indictment demonstrates our shared commitment to protect our communities,” said U.S. Attorney Muldrow. “This is the third multi-defendant gang takedown this month and underscores the unyielding resolve of federal, state, and local law enforcement agencies in Puerto Rico to bring violent offenders to justice.”
“Guns, violence, drugs, and murders are the day to day of this organization. Ponce residents deserve peace, and our children deserve to play in a street free of drugs. HSI is committed to our community, and we will not tolerate this violent behavior in our island,” said Rebecca González Ramos, Special Agent in Charge of HSI.
“Today marks a pivotal moment in our ongoing efforts to dismantle violent drug trafficking organizations that threaten the safety and well-being of our communities. The arrest of approximately 60 individuals is a testament to the unwavering dedication and collaboration of federal and local law enforcement agencies,” said Denise Foster, Special Agent in Charge of DEA. “This operation not only disrupts a major criminal network, but also underscores our commitment to bringing justice and safety to the people of Ponce. We will continue to leverage our combined resources and expertise to combat drug trafficking and ensure the security of all our citizens.”
The indictment alleges that from 2016, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, marijuana, and fentanyl within 1,000 feet of the Arístides Chavier Arévalo, Ernesto Ramos Antonini, Dr. Manuel de la Pila, Ponce Housing and Hogares de Portugués Public Housing Projects (PHPs), and other areas in and nearby the municipality of Ponce, Puerto Rico, all for significant financial gain and profit. The object of the conspiracy was the large-scale distribution of controlled substances and to distribute the same in street quantities amounts at their drug distribution points. Some of these narcotics would be sent illegally by mail to the continental United States using the U.S. Postal Service.
The investigation revealed that during the conspiracy the defendants and their co-conspirators would use force, violence, including murder and intimidation, against rival drug trafficking organizations and to discipline members of their own drug trafficking organization. Members of the organization would go to “war” with rival gangs, which included retaliatory shooting incidents that, at times, resulted in injuries and death.
The defendants acted in different roles to further the goals of the drug trafficking conspiracy, including as leaders, owners, enforcers, runners, sellers, and facilitators. The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. Twenty defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. The defendants charged in the indictment are:
[1] Armando L. Alicea-Santiago, a.k.a. “La Mami/Ñañito”
[2] José A. Custodio-Colón, a.k.a. “Gilligan/El Viejo”
[3] Christopher Román-Medina, a.k.a. “Keke”
[4] Armando Ortiz-Meléndez, a.k.a. “Yokain”
[5] Nestor Murray-Valentino, a.k.a. “Valentino”
[6] Nicky Cosme-Rivera, a.k.a. “Mellao”
[7] Héctor Pacheco-Figueras, a.k.a. “La H”
[8] Joshua Almodóvar, a.k.a. “Mamaito”
[9] Orlando Coimbre-Echevarría, a.k.a. “Orlandito”
[10] Giovanni Vargas-Maldonado, a.k.a. “Jova/La J”
[11] Jon Alvarado-Hernández, a.k.a. “Jacob”
[12] Raymond Torres-Zayas, a.k.a. “Macho”
[13] Eduardo Aponte Torres, a.k.a. “Edu/Menor/Bubu”
[14] Luis Laboy-Nadal, a.k.a. “Marlon/Mailon”
[15] Juan Limardo-Meléndez, a.k.a. “Jonny”
[16] José Méndez-Morales, a.k.a. “Hugo Boss/Gordo”
[17] Bryant Santiago-Ramírez, a.k.a. “Bryant”
[18] Edgargo Caraballo-Echevarría, a.k.a. “La J”
[19] Jomar Irrizarry-Sarriera
[20] Norberto Martinez-Castro, A/K/A Berto/Bertito/Enano,
[21] Eduardo Negron-Perez, A/K/A Bebo,
[22] Adam Maldonado-Santuche,
[23] José Vázquez-Vargas, a.k.a. “Gordo Janet”
[24] Kelvin Almodóvar-Toro, a.k.a. “Calvo”
[25] Jaime Padilla-Gómez, a.k.a. “Jimito”
[26] Rafael Alers-Ortiz, a.k.a. “Memin”
[27] José A. Custodio-Flores, a.k.a. “Gele”
[28] Jai López-Díaz, a.k.a. “Chai”
[29] Luis J. Alvarado-De La Cruz, a.k.a. “Joel”
[30] Joshua Rodríguez-Cortez, a.k.a. “Medusa/Versace”
[31] Vilma J. Vázquez-Vargas, a.k.a. “Janet”
[32] Jay Pages-Pacheco
[33] Héctor J. Orengo-Torres, a.k.a. “Javi”
[34] Ramón Echevarría-Caraballo, a.k.a. “Árabe”
[35] José Rodríguez-Casiano, a.k.a. “Jon Z”
[36] William González-Maldonado, a.k.a. “Casqui”
[37] Miguel Ortiz-González, a.k.a. “Saca Mostro”
[38] Jonathan Vázquez-Bota, a.k.a. “Mama Deo/Jona”
[39] Wilson Berríos-Flores, a.k.a. “Panda”
[40] Neftaly Rivera-Santiago, a.k.a. “Taly”
[41] Miguel Alexander-Báez, a.k.a. “Yoyo”
[42] Kevin Cosme-Rivera
[43] Josué Pérez-Torres, a.k.a. “Aguja”
[44] Ángel Santana-Pacheco, a.k.a. “Goldo”
[45] William Ramos-Rivera, a.k.a. “Willy”
[46] Alexis Aponte-Negrón
[47] Coral González-Bacenet
[48] Anthony Limardo-Mercado, a.k.a. “Mariachi”
[49] Arturo De Lahongrais-Emmanuelli
[50] Silverio Yoguez-Mercado, a.k.a. “Gringo”
[51] Jovelyn Marquez-Ruiz, a.k.a. “La Flaca”
[52] Manuel Alicea-Alicea, a.k.a. “Alicea”
[53] Wanda Vargas-Álvarez
[54] Jaime Méndez-Ortiz, a.k.a. Jimmy
[55] Ángel Mercado-Acabeo, a.k.a. “Cano/Canito”
[56] Ilia Martínez-Pagán, a.k.a. “Coral/Charlot”
[57] Jayson Camacho-Rodríguez
[58] María Mercado-Crespo, a.k.a. “Luly”
[59] Jadira Báez-Flores
[60] José Cambrelen-Pabón, a.k.a. “Buba”
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort; Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares; AUSAs R. Vance Eaton and Héctor Siaca Flores are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges in Count Seven, the defendants face a minimum sentence of 15 years, and up to life in prison. All defendants are facing a narcotics forfeiture allegation of $123,662,000.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Wednesday 22 May 2024
“Sovereign Citizen” Sentenced to 9 Years in Prison for $3.4 Million Tax Fraud Scheme, Filing A False Lien, and Absconding While on BondRead the Press Release
Jacksonville, Florida – U.S. District Judge Mark E. Walker today sentenced Judy Grace Sellers to five years in federal prison for conspiracy to submit false tax returns and defraud the U.S. Treasury, substantive counts of aiding in the preparation of false tax returns, and filing a false lien against the U.S. Attorney for the Northern District of Florida, followed by a consecutive four-year sentence for failure to appear. Sellers was also ordered to pay restitution in the amount of $23,264.08, representing the unrecovered loss from the tax counts. Sellers originally was indicted in December 2014. Her indictment was superseded to add a charge for absconding while on bond in February 2024. She was convicted on all counts by a federal jury on March 1, 2024.
According to evidence presented at trial, in 2008 and 2009, Sellers operated a website called commercialredemption.com on which she promoted the use of IRS Form 1099-OID to commit tax fraud. Sellers identified as a “sovereign citizen” and perpetuated the false premise that the U.S. Treasury maintains secret accounts attributed to every U.S. citizen that can be drawn on by filing a series of bogus documents with the Treasury and other government entities.
As part of this fraud scheme, Sellers also promoted the use of IRS Form 1099-OID to fraudulently report to the IRS debts – including mortgages, student loans, credit card debts, and court judgments – as income, along with 100% withholdings of that “income” in informational returns to overcome the IRS’s internal controls and induce the IRS to issue refunds that were not owed. The proper use of the 1099-OID form is for companies such as brokers to report to the IRS income received by the purchaser of a discounted security. Sellers personally created and submitted to the IRS 1099-OID forms that were fraudulent on their face. After submitting the fraudulent 1099-OID forms, Sellers’s co-conspirators prepared and submitted fraudulent returns seeking massive refunds, in one case exceeding half a million dollars on a single return. All these refunds were based on non-existent 1099-OID “income” and withholdings. The conspiracy resulted in the submission of at least 22 returns requesting fraudulent refunds totaling at least $3.4 million from the IRS.
In 2011, the U.S. Attorney’s Office for the Northern District of Florida filed a civil action to enjoin Sellers from promoting her fraudulent scheme on her commercialredemption.com website. In retaliation, Sellers filed a false lien against the then-U.S. Attorney and a Department of Justice tax attorney who was leading the civil action.
In 2014, Sellers was indicted and arrested on charges of tax fraud and filing a false lien. In January 2015, she was placed on house arrest with a GPS ankle monitor pending trial. In May 2015, Sellers was granted permission by her probation officer to leave her home to get her hair done in preparation for her pretrial hearing a few days later. The next day, Sellers cut off her GPS ankle monitor, flung it on the side of the highway, and absconded.
The cut GPS ankle monitor
Sellers was located more than eight and a half years later in New Mexico. Prior to this, Sellers had pleaded guilty to failing to appear for her sentencing in her previous federal counterfeiting case in 2002. In her previous case, Sellers was apprehended living under a false name in Mississippi.
“Today's sentencing emphasizes our resolve in pursuing those who attempt to corrupt our nation's tax system,” said Lani Rosado-Espinal, Acting Special Agent in Charge, CI Tampa Field Office. “No one is above the law in this great nation. Our law enforcement partners are just as committed as we are to ensuring that those seeking to live above the law are brought to justice.”
This case was investigated by IRS – Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration, with assistance from the U.S. Marshals Service. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Milliron.
Winter Garden Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Michael Barrington Douglas (52, Winter Garden) to two years and one day in federal prison, followed by one year of supervised release, for aggravated identity theft and false representation of a Social Security number. As part of his sentence, Douglas also must pay restitution to the Florida Department of Commerce and U.S. Department of Agriculture. Douglas entered a guilty plea on January 17, 2024.
According to court documents, Douglas was born in Jamaica and entered the United States on an immigrant visa in 1991. In 1999, an immigration judge ordered Douglas removed from the United States after he was convicted of felony firearm and drug offenses. Douglas, however, never departed the United States. Instead, he assumed the identity of J.M., a U.S. citizen, and remained in the United States.
On April 8, 2021, Douglas obtained a Florida driver license in J.M.’s name and date of birth. To obtain the driver license, Douglas falsely claimed he was a U.S. citizen and presented J.M.’s birth certificate and Social Security card.
Because Douglas was not authorized to work in the United States following his removal order, he used J.M.’s identity to apply for and obtain employment. Douglas worked at a hotel in Lake Buena Vista from 2012 to 2023. He was furloughed for a period during the COVID-19 pandemic, during which he applied for and received unemployment insurance and Pandemic Emergency Unemployment Compensation (PEUC) benefits using J.M.’s identity.
Douglas also used J.M’s identity to apply for Supplemental Nutrition Assistance Program (SNAP) benefits, which he received and spent at various locations in the Middle District of Florida.
This case was investigated by Homeland Security Investigations, the U.S. Department of Agriculture - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Social Security Administration - Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Matthew Del Mastro and Assistant United States Attorney Richard Varadan.
Wilson County Man Sentenced to over 17 Years in Federal Prison on Child Exploitation ChargesRead the Press Release
NASHVILLE – Jonathon Aaron Ladd, 30, of Mt. Juliet, Tennessee, was sentenced yesterday to 210 months in federal prison for the production, transportation, and distribution of child pornography, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. That term of imprisonment will be followed by 10 years of supervised release.
In 2020, the defendant made a sexually explicit video recording of a six-year-old girl in his care. He shared that video, along with another sexually explicit video of a different child, in an online chat application with other sexual predators.
A federal grand jury indicted the defendant in 2021 on one count of production of child pornography, one count of transportation of child pornography, and one count of distribution of child pornography. On September 21, 2023, he pled guilty to all counts in the indictment.
“Protecting children will always be a top priority for the Justice Department,” said United States Attorney Henry C. Leventis. “In this case, as a result of the excellent work done by law enforcement and members of our office, the defendant will spend the next 17 years in federal prison and far away from children.”
“This sentencing is a prime example of the joint efforts in which HSI works with our law enforcement partners to rescue children who are being sexually exploited,” said HSI Nashville Special Agent in Charge Rana Saoud. “Let this be a warning to anyone who engages in the abhorrent behavior of producing and distributing child sexual assault material. Our investigators work tirelessly with our law enforcement partners to deliver justice to those who would harm our children.”
Homeland Security Investigations; the FBI Memphis Field Office, Nashville Resident Agency; and the Metro Nashville Police Department investigated this case. Assistant U.S. Attorney Carrie Daughtrey prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Watervliet Man Pleads Guilty to Dealing Firearms Without a LicenseRead the Press Release
ALBANY, NEW YORK – Sean Patrick, age 45, of Watervliet, New York, pled guilty today to dealing firearms without a license.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Patrick admitted that between June 2021 and November 2022, he built and sold four non-serialized, semi-automatic pistols without being licensed to do so, filling out any paperwork, or paying any taxes in connection with the sales. On November 10, 2022, federal agents executed a search warrant on Patrick’s residence in Watervliet, and recovered four more privately manufactured, non-serialized, semi-automatic pistols, another semi-automatic pistol with an obliterated serial number, assorted gun kits and fabrication tools, and over a thousand rounds of ammunition of various calibers.
Sentencing is scheduled for September 19, 2024, before Senior United States District Judge Lawrence E. Khan. Patrick faces a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The FBI and its Capital District Safe Streets Gang Task Force — which includes members of federal, state, and local law enforcement agencies, including the Colonie and Watervliet Police Departments — investigated the case. Assistant U.S. Attorney Emmet O’Hanlon is prosecuting the case as part of Project Safe Neighborhoods (PSN).
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Washington State Man Admits Possessing Fentanyl with Intent to DistributeRead the Press Release
NEWARK, N.J. – A Washington state man pleaded guilty to possession of fentanyl with intent to distribute, U.S. Attorney Philip R. Sellinger announced today.
Jose Luis Pineda Torres, 48, of Monroe, Washington, pleaded guilty before U.S. District William J. Martini in Newark federal court on May 20, 2024, to an information charging him with one count of possession of fentanyl with intent to distribute.
According to documents filed in this case and statements made in court:
On Feb. 15, 2023, Pineda Torres travelled to a warehouse in Secaucus, New Jersey, where individuals loaded boxes into his vehicle. The boxes contained powder and more than 20,000 pills containing fentanyl and weighing more than 6 kilograms.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to the guilty plea.
The count to which Pineda Torres pleaded guilty is punishable by a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Oct. 29, 2024.
The government is represented by Assistant U.S. Attorney Jordann R. Conaboy of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.
pinedatorres.information.pdfU.S. Attorney Will Thompson Commends the Release of Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson commends the announcement of the Department of Justice’s new resource for prosecutors, “Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims.”
The announcement was made on Monday, May 20, 2024, in Dallas, Texas, at the Conference on Crimes Against Women by Rosemarie Hidalgo, Director of the Office on Violence Against Women (OVW). The guide, written by prosecutors for prosecutors, sets out five principles that, if implemented, will lead to better outcomes for victims, safer communities, and greater accountability for perpetrators of sexual assault and domestic violence.
“The framework announced today reaffirms our commitment to expanding access to justice for all survivors, who deserve respect and the right to be heard,” Hidalgo said. “Enhancing the prosecution response to sexual assault and domestic violence in a trauma-informed manner is a key piece in ending gender-based violence, as part of a broader coordinated community response that includes services and support for survivors, and can have a real, immediate impact on the safety of survivors and entire communities.”
“This guide is a welcome resource for prosecutors at all levels of government, and goes to the heart of our primary obligation to the Constitution, to the rule of law, and to see that justice is done,” Thompson said. “In clear language informed by decades of expertise, insight and experience, it offers a blueprint for a stronger, consistent, and more effective response to these crimes.”
Declinations of meritorious allegations may result from misconceptions about how crimes involving sexual assault and domestic violence are committed and reported, how victims give their accounts, and the evidence required to prove their accounts. This guide equips prosecutors to build provable cases by: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) meeting with victims and working with investigators and victim specialists to do so; (3) using the law and evidentiary rules effectively; (4) being thoughtful about what justice and accountability look like; and (5) sustaining a productive, healthy, and committed workforce by redefining success– all of which are rooted in a prosecutor’s primary obligation to seek the truth and uphold the U.S. Constitution and the rule of law.
“As the state sexual assault coalition, the West Virginia Foundation for Rape Information and Services (WVFRIS) applauds the efforts of the U.S. Department of Justice to assist prosecutors in holding offenders accountable in cases of sexual assault and domestic violence,” said WVFRIS Executive Director Nancy Hoffman. “This is particularly timely in West Virginia, as our state Sexual Assault Kit Initiative has completed the processing of thousands of sex crime kits that had not been submitted for testing. With DNA results and hundreds of matches in CODIS, this project is now in the process of supporting local law enforcement officers in investigating and prosecuting those cases. Strengthening prosecution efforts will be the final step in providing justice for the victims each case represents.”
More than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions were consulted in developing this guide. This guide is designed to encourage prosecutors with all levels of experience to implement its principles when evaluating, investigating, and prosecuting allegations involving sexual assault and domestic violence. In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles. This guide further serves as a complement to the Justice Department’s 2022 updated guidance on Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney Todd Gee Holds Listening Session in Rankin CountyRead the Press Release
Jackson, Miss. – U.S. Attorney Todd Gee, members of his staff, and the Department of Justice’s Community Relations Service hosted a Listening Session at the Brandon Public Library on Tuesday, May 21. During the moderated discussion, community members had an opportunity to voice concerns about civil rights issues in Rankin County.
U.S. Attorney Gee discussed the civil rights-related work being done by his office and the importance of engaging with members of local communities to address civil rights issues, such as law enforcement accountability. U.S. Attorney Gee reaffirmed the Justice Department’s commitment to enforcing laws protecting the civil rights of all persons in Rankin County and throughout the nation.
As the United States Attorney’s Office stated in press releases issued on August 3, 2023 and on December 4, 2023, the public is encouraged to contact the FBI hotline at 1-800-CALL-FBI, email tips.fbi.gov or call the FBI Jackson Field Office at 601-948-5000, if you or someone you know has been a victim of abuse by a member of the Rankin County Sheriff’s Office.
The U.S. Attorney’s Office’s online complaint form to report allegations of civil rights violations is available at https://www.justice.gov/usao-sdms/civil-division webpage. The form can be emailed to [email protected] , or concerns can be shared by leaving a voice mail for our Civil Rights Division at (601) 973-2825.
Two ‘La Dank DMV’ Members Sentenced for Roles in Sophisticated Marijuana Distribution ConspiracyRead the Press Release
WASHINGTON –Avery Bost, 29, of Brandywine, MD, was sentenced today to 37 months and Joe Blyther, 29, of Bowie, MD, was sentenced on Tuesday to 10 years in prison for participating in the “LA Dank DMV Crew,” a sophisticated conspiracy responsible for bringing hundreds of pounds of marijuana from California to the metropolitan area, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division.
Bost pleaded guilty on October 27, 2023, to Conspiracy to Distribute, and Possess with Intent to Distribute Marijuana. Blyther pleaded guilty on November 8, 2023, to Conspiracy to Distribute, and Possess with Intent to Distribute Marijuana; Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense; Possession of a Machine Gun; and Possession of a Firearm and Ammunition by a Felon. In addition to Bost and Blyther’s prison sentences, Judge Kollar-Kotelly ordered both to serve three years of supervised release.
Eight LA Dank co-defendants have pleaded guilty to various drug trafficking and/or firearms counts. The co-defendants include Abubakr Banire, Kavon Duncan, Joe Blyther, Christopher Akinduro, Isaac Akinduro, Avery Bost, Omar Butler, and Randall Lance, who all entered their pleas in U.S. District Court for the District of Columbia. Christopher Akindkuro was sentenced to 74 months, Isaac Akinduro was sentenced to 41 months, Duncan was sentenced to 71 months, Butler was sentenced to 18 months, and Lance was sentenced 63 months. Banire, the leader of the LA Dank crew, is awaiting sentencing on June 24, 2024.
The guilty pleas and sentences follow a lengthy investigation led by the FBI’s Washington Field Office and the United States Attorney’s Office for the District of Columbia. Between May 2021 and December 2021, crew members operated a sophisticated conspiracy to traffic large amounts of high-grade marijuana from California to the DMV area for distribution to customers.
As part of their distribution scheme, members of the crew relied heavily on mass marketing through three dedicated LA Dank websites, as well as social media platforms like Instagram where individual crew members would advertise the LA Dank brand and LA Dank branded marijuana for sale. Crew members also used rental properties to set up stash houses or points of sale that were used to conduct drug distribution operations for a short period of time before moving on to different locations.
The crew is known, and was found to possess numerous firearms, including semi-automatic and fully automatic machine guns, and devices used to convert semi-automatic firearms into fully automatic machine guns. Certain members of the crew also plead guilty to the possession of firearms in furtherance of their drug trafficking operations. In total, approximately 122 pounds of marijuana, 19 firearms, and 10 machine gun conversion devices were recovered. Three of these nineteen firearms were discovered to be operational machine guns that had been modified with machinegun conversion devices. Seven of these machine gun conversion devices were found in an “LA Dank” branded bag. Two of these firearms were privately made AR-pistol style machine guns, sometimes referred to as “ghost guns.”
Ledgers and receipts show that the crew trafficked well over 100 kilograms of marijuana into the DMV area for distribution.
Blyther specifically plead guilty to one of the pistols equipped with a machine gun conversion device.
The prosecutions followed a joint investigation by the FBI Washington Field Office, in partnership with the Metropolitan Police Department, Prince George’s County Police Department, Anne Arundel County Police Department. The case was prosecuted by Assistant United States Attorneys Justin F. Song, Meredith E. Mayer-Dempsey, and Thomas Strong.
Two Former Board Members of Failed Washington Federal Bank in Chicago Sentenced to Prison for Falsifying Records and Obstructing RegulatorsRead the Press Release
CHICAGO — Two former board members of the failed Washington Federal Bank for Savings in Chicago were sentenced this month to federal prison terms for conspiring to falsify bank records to deceive the Office of the Comptroller of the Currency.
GEORGE F. KOZDEMBA, 74, of Fort Myers, Fla., and JANICE M. WESTON, 66, of Orland Park, Ill., pleaded guilty last year to a federal conspiracy charge. U.S. District Judge Virginia M. Kendall on May 9, 2024, sentenced Kozdemba to a year and a day in federal prison and fined him $25,000. Judge Kendall on May 6, 2024, sentenced Weston to three months in prison and fined her $20,000. A third Washington Federal board member, WILLIAM M. MAHON, of Chicago, pleaded guilty to conspiracy and tax charges and was sentenced in January to 18 months in prison.
Kozdemba, Weston, and Mahon were members of Washington Federal’s Board of Directors. Weston also served as the bank’s Senior Vice President and Compliance Officer. The bank, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that it was insolvent and had at least $66 million in nonperforming loans. When the OCC was evaluating Washington Federal’s loan portfolio prior to its failure, the board members made and caused to be made false entries in bank records and provided them to the OCC with the intent to deceive the agency and obstruct its examination. They also falsified records to make it appear that Washington Federal was operating in compliance with banking rules and internal policies and controls.
The sentencings of Kozdemba and Weston were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Korey Brinkman, Acting Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.
The federal criminal investigation into the bank’s collapse led to criminal charges against a total of 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Four defendants were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Much of the money was transferred to Chicago attorney ROBERT M. KOWALSKI and real estate developers MIROSLAW KREJZA and MAREK MATCZUK without all of the required documentation and often without any documentation whatsoever. Juries last year convicted Robert Kowalski, Krejza, and Matczuk on embezzlement and fraud charges. They are awaiting sentencing. Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced last year to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Chicago attorney PATRICK D. THOMPSON was convicted by a jury in 2022 of making false statements to the Federal Deposit Insurance Corp. regarding the amount of money he received from Washington Federal via a purported loan and other unsecured payments. He was also convicted of filing tax returns in which he falsely deducted interest that he had not actually paid to Washington Federal. Thompson was sentenced to four months in federal prison.
Two Defendants Sentenced to Life Imprisonment in Murder-For-Hire of Perceived Business RivalRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Qing Ming Yu, also known as “Allen,” and Zhe Zhang, also known as “Zack,” were sentenced by United States District Judge Carol Bagley Amon to mandatory life imprisonment for their roles in the February 12, 2019 killing of 31-year-old Xin “Chris” Gu outside a karaoke bar in Queens. In October 2023, following a two-week trial, a federal jury found the defendants guilty of murder-for-hire and murder-for-hire conspiracy. As part of the sentence, the Court ordered the defendants to pay $1,035,000 in restitution to the victim’s family.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentences.
“Allen Yu set out to kill Xin Gu because he started a rival business and Zhang agreed to carry out the execution-style murder without hesitation,” stated United States Attorney Peace. “Driven by greed and revenge, they hired a hitman to commit a brutal murder of a young man, traumatizing the victim’s family as well as the Flushing community. The defendants will spend the rest of their lives behind prison walls for this premediated murder. I hope today’s sentences bring some measure of closure to Xin Gu’s family.”
“Threatened by Xin Gu’s entrepreneurial skills, Allen Yu sought revenge and unwarranted retribution against his former employee. After securing Zhang and a hitman as accomplices to his calculated plot, the trio unjustly ended the life of a promising young businessman. Today’s lifelong sentences serve as a just punishment for two individuals who deemed cold-blooded murder as an acceptable response for slighted feelings,” stated FBI Assistant Director-in-Charge Smith.
“Today’s sentences bring with them some satisfaction to the dedicated investigators who worked on this horrific case and, hopefully, a modicum of relief to the family and friends of the victim,” stated NYPD Commissioner Caban. “Life in prison is an appropriate outcome for the crimes these men coldly carried out. I commend and thank our NYPD investigators for their meticulous work and our partners at the office of the U.S. Attorney for the Eastern District of New York for their diligent prosecution.”
Allen Yu was the president of Amaco, a multi-million-dollar construction company that renovated apartments in New York City. In 2015, Xin Gu joined Amaco as a project manager. Although Amaco’s business nearly quadrupled after he joined the company, Xin Gu became concerned about the company’s financial viability and resigned in 2018 to start his own property development company called KG Management. After Xin Gu’s departure, several clients and employees also cut ties with Allen Yu’s business. Multiple companies took their lucrative projects from Amaco to KG Management, including one project valued at $1 million. Enraged at Xin Gu’s perceived disloyalty, Allen Yu hired Zhe Zhang and another co-conspirator to kill Xin Gu in exchange for payment. Zhang in turn hired another co-conspirator, Antony Abreu, to act as the shooter in carrying out the murder.
On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing. After that dinner, Xin Gu and a smaller group went to a karaoke bar, Grand Slam KTV, on Fowler Avenue. The hit team learned of the party and with Zhe Zhang serving as the getaway driver, Abreu walked up to the victim and shot him multiple times as he waited for an Uber, killing him. Over the next three months, Allen Yu paid a co-conspirator $150,000 and Zhe Zhang $30,000 for the murder.
Abreu was convicted of murder-for-hire and murder-for-hire conspiracy following a two-week trial in April 2024 and is awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Nadia E. Moore, Gabriel Park and Eric Silverberg are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Legal Assistant Thomas “Cole” Englert.
The Defendants:
QING MING YU (also known as “Allen”)
Age: 56
Oyster Bay, New YorkZHE ZHANG (also known as “Zack”)
Age: 36
Arcadia, California and Flushing, New YorkE.D.N.Y. Docket No. 22-CR-208 (CBA)
Two Alleged Members of a Transnational Money Laundering Organization Arrested for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
Two alleged members of a transnational money laundering organization were arrested on criminal charges related to their alleged involvement in a scheme to launder millions of dollars in illegal drug proceeds for Mexican drug trafficking organizations, including the Sinaloa and Jalisco cartels (also known as CJNG).
Li Pei Tan, 46, of Buford, Georgia, was arrested today. Chaojie Chen, 41, a foreign national residing in Chicago, was arrested on April 18.
According to court documents, Tan and Chen allegedly worked for a money laundering organization that laundered millions of dollars in proceeds related to the importation of illegal drugs into the United States, primarily through Mexico, and the unlawful distribution of these drugs. Tan, Chen, and their co-conspirators allegedly traveled throughout the United States to collect proceeds derived from trafficking in fentanyl and other drugs (or to cause them to be collected). They allegedly communicated and coordinated with co-conspirators in China and other foreign countries to arrange for the laundering of these proceeds through financial transactions that were designed to conceal the illicit source of the drug proceeds.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa and Jalisco cartels are at the heart of the fentanyl crisis in the United States.
Tan and Chen are charged in separate criminal complaints with conspiring to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; and DEA Administrator Anne Milgram made the announcement.
The DEA’s Special Operations Division, Bilateral Investigations Unit is investigating the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in Chicago, Atlanta, and Charlotte, North Carolina.
Trial Attorney Mary K. Daly of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia are prosecuting the case, with assistance from the U.S. Attorneys’ Offices for the Northern District of Georgia and Northern District of Illinois.
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.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Alleged Members of a Transnational Money Laundering Organization Arrested for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
ALEXANDRIA, Va. – Two alleged members of a transnational money laundering organization were arrested on criminal charges related to their alleged involvement in a scheme to launder millions of dollars in illegal drug proceeds for Mexican drug trafficking organizations, including the Sinaloa and Jalisco cartels (also known as CJNG).
Li Pei Tan, 46, of Buford, Georgia, was arrested today. Chaojie Chen, 41, a foreign national residing in Chicago, was arrested on April 18.
According to court documents, Tan and Chen allegedly worked for a money laundering organization that laundered millions of dollars in proceeds related to the importation of illegal drugs into the United States, primarily through Mexico, and the unlawful distribution of these drugs. Tan, Chen, and their co-conspirators allegedly traveled throughout the United States to collect proceeds derived from trafficking in fentanyl and other drugs (or to cause them to be collected). They allegedly communicated and coordinated with co-conspirators in China and other foreign countries to arrange for the laundering of these proceeds through financial transactions that were designed to conceal the illicit source of the drug proceeds.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa and Jalisco cartels are at the heart of the fentanyl crisis in the United States.
Tan and Chen are charged in separate criminal complaints with conspiring to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; and DEA Administrator Anne Milgram made the announcement.
The DEA’s Special Operations Division, Bilateral Investigations Unit is investigating the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in Chicago, Atlanta, and Charlotte, North Carolina.
Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia and Trial Attorney Mary K. Daly of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with assistance from the U.S. Attorney’s Offices for the Northern District of Georgia and Northern District of Illinois.
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.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Tompkinsville Woman Sentenced to over 3 Years for Stalking and Mailing ThreatsRead the Press Release
Bowling Green, KY – A Tompkinsville, Kentucky woman was sentenced yesterday to 3 years and 3 months in federal prison for stalking and mailing threating communications to a government official in 2023.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, FBI Special Agent in Charge Michael E. Stansbury of the Louisville Field Office, and Chief Michael Delaney of the Bowling Green Police Department made the announcement.
According to court records, Tara K. Thomas, 32, was sentenced to 3 years and 3 months in prison, followed by a 3-year term of supervised, for one count of stalking and one count of mailing threatening communications.
There is no parole in the federal system.
Thomas sent multiple threating communications to a government official via Facebook Messenger on September 21, 2021. In January 2023, while an inmate at the Warren County Detention Center, she sent multiple threating communications to the same government official through the United States Postal Service.
The Federal Bureau of Investigation and the Bowling Green Police Department investigated the case.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Three Highland Park Men Indicted for Allegedly Stealing Checks from Post Offices and Using Instagram to Find Accounts to Deposit ThemRead the Press Release
LOS ANGELES – Three men from the Highland Park area of Los Angeles have been charged in a five-count indictment alleging they schemed to defraud banks by stealing mail from United States Post Office docks and elsewhere in Southern California to fraudulently obtain other people’s checks, used Instagram to find third-parties to deposit the stolen money in their bank accounts, and once led police on a high-speed chase, dumping mail out a car window while on a freeway, the Justice Department announced today.
The indictment returned on May 14 charges the following defendants with one count of conspiracy to commit bank fraud:
- Antonio Hernandez, 20;
- Ivan Murillo-Hernandez, 20; and
- Alexis Garcia Martinez, 28.
Hernandez also is charged with one count of bank fraud, one count of aggravated identity theft, one count of robbery of a post office, and one count of mail theft. Murillo-Hernandez also is charged with one count of mail theft.
Hernandez and Murillo-Hernandez have pleaded not guilty to the charges against them and are scheduled to go to trial on July 8. Martinez is in state custody on unrelated charges and is expected to be transferred over to federal custody in the coming weeks.
The total intended losses to the banks alleged in this scheme is at least $800,000, law enforcement estimates.
According to the indictment, from November 2022 to August 2023, Hernandez, Murillo-Hernandez, and others stole mail from U.S. post office docks and other locations in the mail stream – including by using threats of violence – with the aim of stealing mail containing checks belonging to various victims.
The indictment alleges mail thefts from a Highland Park apartment building as well as from post offices in Studio City, Azusa, Upland, Anaheim, El Segundo, and Beverly Hills. The defendants allegedly attempted to steal mail from a La Mirada post office but were unsuccessful.
Martinez allegedly provided vehicles to Hernandez and others to travel to post offices to commit back dock thefts and advised them on how to commit such crimes without law enforcement detecting them.
Hernandez and Murillo-Hernandez allegedly used social media to solicit bank account holders to provide their debit card and account information by promising them a cut of any fraudulently obtained funds deposited into their accounts. To avoid banks’ fraud protections, the co-conspirators requested bank accounts that had been open for a certain amount of time so they could access the stolen funds more quickly.
For example, in December 2022, Hernandez allegedly posted a story on his Instagram account advertising the sale of stolen checks and seeking third parties with Bank of America accounts older than two years in which to deposit stolen checks.
Hernandez and Murillo-Hernandez then allegedly deposited the stolen funds into the third-party bank accounts by falsely representing that they were the payees on the checks and were entitled to the money. Then, they rapidly depleted the fraudulently deposited funds from the third-party accounts by making cash withdrawals, electronic transfers, or debit card purchases, according to the indictment.
Also, Hernandez and Murillo-Hernandez sold and attempted to sell stolen checks to others who fraudulently cashed them, the indictment states.
The defendants allegedly recruited at least three people under the age of 18 in the scheme.
In April 2023, after stealing mail from an Anaheim post office, Hernandez, Murillo-Hernandez, and three minors led police of a high-speed chase on the 57 and 60 freeways and dumped mail out of a gray Toyota Camry as they fled, according to the indictment. One of the minors involved in the chase who had evaded law enforcement later posted a video on Instagram taken from inside the Camry depicting a pursuing police car as seen in the front passenger side rear view mirror for followers and potential stolen check customers to “like.”
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would face a statutory maximum sentence of 30 years in federal prison for the bank fraud conspiracy charge. Hernandez also would face up to 30 years in federal prison for the bank fraud count, up to 10 years in federal prison for the post office robbery count, and a two-year mandatory consecutive prison sentence for the aggravated identity theft count. Hernandez and Murillo-Hernandez would face up to five years in federal prison for the mail theft count.
The United States Postal Inspection Service, with assistance of the Los Angeles Police Department, California Highway Patrol, and the Anaheim Police Department, is investigating this matter.
Assistant United States Attorney Angela C. Makabali of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Three Facing Federal Charges for Metro East Mail Theft SchemeRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury returned a 10-count indictment charging three individuals with various crimes for their alleged involvement in a mail theft scheme from collection boxes in Fairview Heights.
Tylann J. Starks, 29, of Swansea, is facing one count of conspiracy to commit bank fraud, four counts of bank fraud, two counts of aggravated identity theft and one count of conspiracy to steal U.S. mail.
Tiara D. Johnson, 32, of Cahokia Heights, is facing one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of conspiracy to steal U.S. mail.
Jamil Jackson, 51, is facing one count of conspiracy to steal U.S. mail, one count of theft of a specialized key to access US Postal receptacles, and one count of making false statements to a federal law enforcement officer.
“Thieves are targeting mail collection boxes as a site to commit fraud,” said U.S. Attorney Rachelle Aud Crowe. “Law enforcement is committed to investigating individuals who steal checks from the mail and manipulate the payee and amount sections to personally enrich themselves.”
The U.S. Postal Service uses specialized keys, commonly referred to as arrow keys, to service and open mail collection boxes. Arrow keys are labeled with serial numbers so they can be tracked.
“The U.S. Postal Inspection Service is charged with defending the nation’s mail system. With the collaborative investigative efforts of multiple law enforcement agencies, Postal Inspectors investigate and pursue those individuals who defraud unwitting victims by stealing their identities and attacking their personal well-being, such as those involved 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.
According to court documents, Starks purchased an arrow key from former postal employee Jackson to gain access to mail collection boxes throughout the Metro East. Agents conducted an undercover purchase of a second arrow key from Jamil Jackson for $1,000.
Starks and Johnson would search collection boxes for checks in order to exploit bank account and personal identifying information from victims from February 2020 through February 2023. Jackson would steal checks out of mail from his route that he provided to Starks. The conspirators also used the stolen account information to generate counterfeit checks.
“This indictment represents the hard work and dedication by USPS OIG Special Agents and U.S. Postal Inspectors working with the U.S. Attorney’s Office to bring charges on this significant mail theft investigation,” said Special Agent in Charge Dennus Bishop, U.S. Postal Service, Office of Inspector General, Central Area Field Office. “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with our law enforcement partners, remain committed to safeguarding the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
Starks and Johnson would then cash, deposit or otherwise negotiate the stolen and counterfeit checks at area businesses, banks and ATM machines in Belleville, East St. Louis and O’Fallon.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, conspiracy to commit bank fraud and bank fraud charges are punishable by up to 30 years’ imprisonment; aggravated identity theft and stealing post office keys can carry sentences of up to 10 years’ imprisonment; conspiracy to steal U.S. mail and false statement convictions can garner up to five years in federal prison.
Agents with the U.S. Postal Inspection Service and the U.S. Postal Service, Office of Inspector General contributed to the investigation. Assistant U.S. Attorney Steve Weinhoeft is prosecuting the case.
Tampa Man Sentenced for Conspiracy to Commit COVID-Related Unemployment Insurance Fraud and Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Mehdi Tazi (29, Tampa) to five years in federal prison for conspiracy to commit wire fraud, aggravated identity theft, and a substantive count of aggravated identity theft. Tazi entered a guilty plea on February 2, 2024. As part of his sentence, the court also ordered Tazi to pay $1,070,647 in restitution, jointly with his co-conspirators who were previously sentenced for the below listed offenses.
Name (Age, City)
Charges
Sentence Imposed
Steve Aloysius Moodie Jr.
(36, Tampa)
Conspiracy to commit wire fraud and aggravated identity theft, wire fraud, and aggravated identity theft
5 years, 10 months
Tyree Wingfield
(26, Dade City)
Conspiracy to commit wire fraud and aggravated identity theft and aggravated identity theft 5 years, 10 monthsMelinda Sue Hernandez
(35, Sun City Center)
Conspiracy to commit wire fraud and aggravated identity theft and aggravated identity theft 3 years, 6 monthsAccording to court documents, from approximately June 2020 through April 2021, the conspirators obtained personal identifying information (PII) of others without their knowledge. Hernandez was employed as a medical assistant at a Tampa Bay area hospital and gained access to patient PII, which she shared with Moodie. Thereafter, Tazi, Moodie, and Wingfield used that PII and that of others to submit fraudulent unemployment insurance (UI) claims to various state workforce agencies to obtain UI benefits. These UI benefits were then transferred to bank accounts or loaded onto debit cards issued in the names of others. Tazi, Moodie, Wingfield, and Hernandez then used the fraudulently obtained debit cards to withdraw money from ATMs and for other personal items. Law enforcement calculated the total intended loss caused by the fraudulent UI claims to be between $1.5 million and $3.5 million.
This case was investigated by the United States Postal Inspection Service and Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Greg Pizzo.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
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.
Syracuse Man Sentenced to 62 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Benjamin Munson, age 33, of Syracuse, was sentenced today to serve 720 months (60 years) in federal prison following his earlier plea of guilty to a 13-Count Indictment charging him with six counts of sexual exploitation of an infant, four counts of distributing child pornography, two counts of possessing child pornography, and one count of committing a felony offense against a minor as a registered sex offender.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.
In his previous guilty plea Munson admitted that while on supervised release for a 2010 federal conviction for distribution and possession of child pornography, and while required to register as a sex offender, he befriended another sex offender who allowed Munson to babysit the other offender’s infant daughter. Munson admitted that on at least six separate occasions he sexually abused the infant, produced images and videos of the abuse, and uploaded the depictions to an internet trading group he administered.
Of the over twenty child pornography trading groups Munson admitted to administering, the group to which he uploaded the images of the infant was exclusively dedicated to new content, and others on the site were required by Munson to also produce and upload new sexually explicit content of children in order to join.
Munson’s crimes were discovered on the internet by FBI and Australian law enforcement authorities in August of 2022, and within days the FBI in Syracuse arrested Munson and rescued the infant. Munson was found in possession of several unauthorized electronic devices on which he possessed 35,139 images and 4,918 videos of child pornography. In addition to images and videos of the infant, the National Center for Missing and Exploited Children identified 12,526 of the images and 1,258 of the recovered video files as depicting 457 separate children whose images are in their database of known victims.
In addition to the 60-year sentence, Munson was sentenced to a consecutive 2-year term of imprisonment for violating the conditions of his supervised release from his prior offense.
Munson was also ordered to pay over $111,000 in restitution to the victims of his crimes, including the infant and the victims depicted in the other child pornography he possessed. He was ordered to forfeit the electronic media used to commit the offenses and to pay a special assessment of $1,300. Munson will be placed on supervision for the remainder of his life when released from prison, and will continue to be required to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force and the New York State Police. Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.
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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Syracuse Man Pleads Guilty to Receiving Child Pornography from Multiple Minors via SnapChatRead the Press Release
SYRACUSE, NEW YORK – William Futrell, age 31, of Syracuse, pled guilty yesterday to ten counts of receipt of child pornography. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office and New York State Police (NYSP) Superintendent Steven G. James made the announcement.
As part of his guilty plea, Futrell admitted that he used SnapChat to communicate with minors from across the country. In some instances, Futrell would offer to pay the minor children to entice them to send explicit images to him, but with no intention of ever paying them. On at least the 10 occasions charged, Futrell obtained, directly from minor children, images depicting the children engaged in sexually explicit conduct. Futrell is a registered sex offender with a previous conviction for possession of child pornography in New York.
The offenses to which Futrell pled guilty carry a mandatory minimum sentence of 15 years, with a maximum of 40 years imprisonment. If Chief United States District Judge Brenda K. Sannes accepts the parties’ agreed-upon disposition at sentencing on September 20, 2024, Futrell will receive an imprisonment term of 262 months. Futrell’s sentence must also include a post-imprisonment term of supervised release of between five years and life, a fine of up to $250,000.00, restitution to the victims, and he will be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the United States Sentencing Guidelines, and other factors.
United States Homeland Security Investigations (HSI) led the investigation with the assistance of the New York State Police (NYSP) Internet Crimes Against Children Task Force, and the New York State Police (NYSP) Troop D Computer Crime Unit. Special Assistant U.S. Attorney Paul Tuck prosecuted Futrell 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.
St. Tammany Parish Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that LARRY JAMES (“JAMES”), age 23, of Madisonville, Louisiana, pled guilty on May 21, 2024, to violating the Federal Controlled Substances Act, before United States District Judge Susie Morgan.
Specifically, JAMES pled guilty to Counts 1 through 5 of the indictment pending against him. Count 1 charged him with conspiracy to distribute and possess with intent to distribute, 40 grams or more of a mixture and substance containing a detectable amount of Fentanyl, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. JAMES also pled guilty to three counts of distribution of fentanyl and, one count of possession with intent to distribute fentanyl, in violation of 21 United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846.
According to court documents, JAMES sold fentanyl pills to an undercover agent on August 25, 2023, September 8, 2023, and September 15, 2023. On September 28, 2023, law enforcement searched JAMES’s residence pursuant to a state search warrant and found additional fentanyl pills, packaging materials, and two digital scales.
For Counts 1 and 4, JAMES faces a mandatory minimum sentence of 5 years and up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release. For Counts 2, 3, and 5, JAMES faces up to 20 years imprisonment, a fine of up to $1,000,000, and at least 3 years of supervised release. For each count, JAMES, also faces payment of a mandatory special assessment fee of $100.00. JAMES’s sentencing is set for August 20, 2024.
The case was investigated by Homeland Security Investigations and the St. Tammany Parish Sheriff’s Department. Assistant United States Attorney Rachal Cassagne of the Narcotics Unit oversees the prosecution.
St. Louis County Man Accused of Pandemic, Disability FraudRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri has been accused in an indictment of fraudulently obtaining $620,000 in COVID-19 pandemic loans and committing a separate fraud involving disability payments.
Preston Randall, 59, was indicted in U.S. District Court in St. Louis May 15 with 13 felony charges: five counts each of wire fraud and aggravated identity theft, two counts of theft of government property and one count of concealing information from the Social Security Administration about a payment.
On Wednesday, Randall was arrested, appeared in court and pleaded not guilty to the charges.
The indictment says Randall applied for money from the Economic Injury Disaster Loan Program, a Small Business Administration program intended to help struggling business owners during the pandemic.
Between June 26, 2020, and Aug. 5, 2020, Randall filed five fraudulent loan applications using five different company names and the identities of two other people, the indictment says. The loan applications contained false information, including about gross revenue and the number of employees, the indictment says. Those fraudulent applications resulted in loans and advances totaling $620,000 that were deposited into accounts controlled by Randall, it says.
The indictment also accuses Randall of fraudulently obtaining $17,906 in Social Security Administration disability payments from March 2021 through October 2023 by concealing his receipt of the EIDL money and other resources.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Social Security Administration Office of Inspector General investigated the case. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Self-proclaimed king of Bissonnet heads to prison for multi-state sex trafficking schemeRead the Press Release
HOUSTON – A 48-year-old man has been sentenced for sex trafficking four women by means of force and of taking three women across state lines to engage in prostitution, announced U.S. Attorney Alamdar S. Hamdani.
On Oct. 10, 2023, a federal jury in Houston deliberated for approximately three hours before convicting Larry “Lavish” Lewis following a six-day trial.
Chief U.S. District Judge Randy Crane has now ordered Lewis to serve 480 months in federal prison to be immediately followed by 10 years of supervised release. At the hearing, the government asked the court to consider the victims in the case and highlighted Lewis’s complete absence of remorse for his crimes.
“Today, the victims of Lewis’s abhorrent crimes have finally received the answer they have been waiting to hear for years,” said Hamdani. “The message the court delivered in its sentence is clear: traffickers do not get to profit from the sale of victims’ bodies. They do not get to use drugs, beatings and threats to compel others to engage in prostitution. Traffickers, like Lewis, are not welcome in the Southern District of Texas, or anywhere outside of a federal penitentiary, and my office will see to that.”
Lewis used physical force and coercion to compel four women to engage in commercial sex in the Bissonnet street area of Houston and various cities in Texas and Louisiana. The jury also found he coerced them to cross state lines to engage in prostitution.
At trial, the victims detailed how Lewis recruited them on false promises of good money and a good life. Lewis confiscated the identification cards of two women and tightly controlled access to their hotel rooms. The women were completely dependent on him for food, lodging and basic necessities.
Lewis’ rules dictated where and how long they worked. The women were required to give Lewis all money they earned after commercial sex dates.
The victims detailed the consequences of breaking Lewis’ rules. He kicked one victim in the head into a window because he believed she disrespected him. During another incident, Lewis whipped the same victim with an electrical cord following an attempt to escape using his vehicle. Another victim described how Lewis broke her ribs and left bruises all over her body after receiving many beatings.
The jury ultimately did not believe defense claims that the women sought out Lewis because of his marketing expertise in the commercial sex industry.
Lewis has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorneys Sebastian A. Edwards and Christine J. Lu prosecuted the case.
Texas Department of Public Safety and the Harris County District Attorney’s Office conducted the investigation with the assistance of the FBI as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Riverside Man Charged in Indictment Alleging Pattern of ‘Swatting’ Calls Threatening Schools and an International AirportRead the Press Release
RIVERSIDE, California – A Riverside County man has been arrested on an 18-count indictment alleging he placed “swatting calls” threatening to commit mass shootings at several schools in the Inland Empire and Sandy Hook, Connecticut, and to bomb Nashville International Airport on behalf of the Islamic State of Iraq and al-Sham (ISIS), the Justice Department announced today.
Eduardo Vicente Pelayo Rodriguez, 31, of Riverside, is charged with one count of stalking, seven counts of transmitting threats in interstate commerce, seven counts engaging in hoaxes, and three counts of transmitting threats or false information regarding fire and explosives.
He was arrested Tuesday and his arraignment is scheduled for this afternoon in United States District Court in Riverside.
“Swatting” refers to falsely reporting in the name of another person that an emergency is in progress or about to occur, with the intent to result in emergency services or law enforcement responding to that other person’s location or investigating them.
According to the indictment that a federal grand jury returned on May 16 and was unsealed today, Rodriguez in January and February of 2023 used a Voice over Internal Protocol (VoIP) service to place more than a dozen calls impersonating the victim. Initially, Rodriguez called a suicide prevention center and a veterans crisis hotline, claimed to be the victim, and said that he was contemplating committing suicide or killing others.
Rodriguez allegedly then called school staff at seven different schools -- in Riverside and San Bernardino counties, as well as Sandy Hook, Connecticut – and threatened to commit either a mass shooting or bombing at the schools. Finally, Rodriguez allegedly called Nashville International Airport in Tennessee, said he had planted a bomb on a plane and in the airport, and said, “this is for ISIS,” and “one hour, boom.”
Law enforcement responded to these phone calls and determined they were fake.
“The sorts of ‘swatting’ crimes alleged against this defendant are highly troubling,” said United States Attorney Martin Estrada. “The indictment alleges that the defendant placed calls to schools, airports, and other locations that were designed to cause maximum fear and trigger an emergency response. ‘Swatting’ is a serious crime that can cause great trauma and risk loss of life, so it is important that we hold wrongdoers accountable.”
“Mr. Rodriguez is alleged to have conducted swatting attacks, to include the callous targeting of an open wound at Sandy Hook, without regard for the potential consequences of this insidious type of hoax,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “Perpetrators of swatting hoaxes should understand that the FBI and our local partners take these threats seriously and that the penalties – if convicted – are considerable.”
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of the charges, Rodriguez would face a statutory maximum sentence of five years in federal prison on the stalking count, five years on each of the threats counts, five years on each of the hoax counts, and 10 years on each of the counts relating to fire and explosives.
The FBI’s Joint Terrorism Task Force is investigating this matter. The Riverside Police Department, Riverside County Sheriff’s Department, San Bernardino County Sheriff’s Department, Newton (Connecticut) Police Department, and the Nashville Airport Authority provided substantial assistance.
Assistant United States Attorney Jenna W. Long of the Terrorism and Export Crimes Section is prosecuting this case.
Ringleader and Company Insider Plead Guilty to Defrauding Biochemical Company and Diverting Products to China Using Falsified Export DocumentsRead the Press Release
WASHINGTON – The Justice Department today announced that Pen Yu, also known as Ben Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have each pleaded guilty to one count of wire fraud conspiracy for their roles in a scheme to fraudulently procure deeply discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., doing business as MilliporeSigma, and export them to China using falsified export documents.
In addition, the Justice Department announced that it has declined the prosecution of MilliporeSigma after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The NSD Enforcement Policy creates a presumption that companies that (1) voluntarily self-disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws, (2) fully cooperate, and (3) timely and appropriately remediate will generally receive a non-prosecution agreement, unless aggravating factors are present. This is the first time that NSD has declined the prosecution of a company under the NSD Enforcement Policy.
“When a business uncovers criminal wrongdoing within its ranks, the company is far better off reporting the violation than waiting for the Justice Department to discover it,” said Deputy Attorney General Lisa Monaco. “That’s exactly what MilliporeSigma did in the first-ever corporate declination under our National Security Division’s voluntary self-disclosure program. Because of MilliporeSigma’s timely disclosure and exceptional cooperation, a rogue company insider and his accomplice pled guilty to fraudulently diverting millions of dollars worth of biochemicals to China, and the company will not be prosecuted. As national security and corporate crime increasingly intersect, companies that step up and own up under the Department’s voluntary self-disclosure programs can help themselves and our nation.”
“When MilliporeSigma found evidence that one of its employees was diverting biochemical products to an unauthorized purchaser in China, they did not sweep the misconduct under the rug. Instead, the company made the early decision to cooperate with the Justice Department, resulting in the convictions of responsible individuals,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s announcement reflects the value for companies like MilliporeSigma to quickly self-disclose potential criminal activity and reaffirms our commitment to work in partnership with the private sector to root out conduct that violates the law and jeopardizes our national security.”
“When company and university insiders abuse the trust that their institutions place in them, they will be held accountable,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Here, Millipore Sigma’s prompt disclosures led to the uncovering of this multimillion- dollar criminal enterprise, and enabled law enforcement to disrupt the scheme and stop further illegal exports to China. These disclosures led to the seizure of multiple illegal shipments to China and the conviction of two of the most culpable participants in the scheme. Millipore Sigma’s prompt and full cooperation was essential in obtaining this result.”
“Faking an affiliation with an academic research lab to obtain controlled biochemical materials, and then sending those materials to China, is not only wrong, but illegal,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s announcement provides yet another fact pattern for universities to beware of — the misuse of academic institutions by outsiders who seek to obscure the actual customer of controlled items.”
According to court documents, beginning in at least July 2016 and continuing through at least May 2023, Yu ordered biochemical products from MilliporeSigma, a subsidiary of multinational science and technology company Merck KGaA, Darmstadt, Germany, with help from Muñoz, a MilliporeSigma salesperson, by falsely representing that Yu was affiliated with a biology research lab at a large Florida university. This fictitious affiliation led MilliporeSigma to provide Yu over $4.9 million worth of discounts and other benefits, such as free overnight shipping, not available to the public. Yu gave Muñoz thousands of dollars in gift cards for facilitating these fraudulent discounted orders. When the products arrived at the university stockroom, a stockroom employee diverted the products to Yu, who repackaged them and shipped them to China. To avoid scrutiny, Yu made false statements about the value and contents of these shipments in export documents.
This scheme continued until MilliporeSigma compliance personnel identified certain orders as suspicious, prompting the company to retain outside counsel who voluntarily disclosed the misconduct to the Department of Justice’s National Security Division only a week later. MilliporeSigma made the disclosure well before its counsel had completed their investigation and understood the full nature and extent of the scheme. MilliporeSigma offered exceptional cooperation to the prosecution team, including by proactively identifying and producing documents to the Department that established probable cause to search residences and electronic devices of culpable individuals. MilliporeSigma’s cooperation allowed investigators to quickly identify the individuals responsible for the scheme, including Yu and Muñoz, and secure their felony guilty pleas. As a result of MilliporeSigma’s timely self-disclosure and extraordinary cooperation, MilliporeSigma will not be charged, despite the criminal wrongdoing committed by Muñoz, a MilliporeSigma employee.
The Defense Criminal Investigative Service; Department of Commerce, Bureau of Industry and Security; and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases.
Note: View the information and plea agreement for Yu.
View the information and plea agreement for Muñoz.View the declination letter here.
Ringleader and Company Insider Plead Guilty to Defrauding Biochemical Company and Diverting Products to China Using Falsified Export DocumentsRead the Press Release
The Justice Department today announced that Pen Yu, also known as Ben Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have each pleaded guilty to one count of wire fraud conspiracy for their roles in a scheme to fraudulently procure deeply discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., doing business as MilliporeSigma, and export them to China using falsified export documents.
In addition, the Justice Department announced that it has declined the prosecution of MilliporeSigma after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The NSD Enforcement Policy creates a presumption that companies that (1) voluntarily self-disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws, (2) fully cooperate, and (3) timely and appropriately remediate will generally receive a non-prosecution agreement, unless aggravating factors are present. This is the first time that NSD has declined the prosecution of a company under the NSD Enforcement Policy.
“When a business uncovers criminal wrongdoing within its ranks, the company is far better off reporting the violation than waiting for the Justice Department to discover it,” said Deputy Attorney General Lisa Monaco. “That’s exactly what MilliporeSigma did in the first-ever corporate declination under our National Security Division’s voluntary self-disclosure program. Because of MilliporeSigma’s timely disclosure and exceptional cooperation, a rogue company insider and his accomplice pled guilty to fraudulently diverting millions of dollars worth of biochemicals to China, and the company will not be prosecuted. As national security and corporate crime increasingly intersect, companies that step up and own up under the Department’s voluntary self-disclosure programs can help themselves and our nation.”
“When MilliporeSigma found evidence that one of its employees was diverting biochemical products to an unauthorized purchaser in China, they did not sweep the misconduct under the rug. Instead, the company made the early decision to cooperate with the Justice Department, resulting in the convictions of responsible individuals,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s announcement reflects the value for companies like MilliporeSigma to quickly self-disclose potential criminal activity and reaffirms our commitment to work in partnership with the private sector to root out conduct that violates the law and jeopardizes our national security.”
“When company and university insiders abuse the trust that their institutions place in them, they will be held accountable,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Here, Millipore Sigma’s prompt disclosures led to the uncovering of this multimillion- dollar criminal enterprise, and enabled law enforcement to disrupt the scheme and stop further illegal exports to China. These disclosures led to the seizure of multiple illegal shipments to China and the conviction of two of the most culpable participants in the scheme. Millipore Sigma’s prompt and full cooperation was essential in obtaining this result.”
“Faking an affiliation with an academic research lab to obtain controlled biochemical materials, and then sending those materials to China, is not only wrong, but illegal,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s announcement provides yet another fact pattern for universities to beware of — the misuse of academic institutions by outsiders who seek to obscure the actual customer of controlled items.”
According to court documents, beginning in at least July 2016 and continuing through at least May 2023, Yu ordered biochemical products from MilliporeSigma, a subsidiary of multinational science and technology company Merck KGaA, Darmstadt, Germany, with help from Muñoz, a MilliporeSigma salesperson, by falsely representing that Yu was affiliated with a biology research lab at a large Florida university. This fictitious affiliation led MilliporeSigma to provide Yu over $4.9 million worth of discounts and other benefits, such as free overnight shipping, not available to the public. Yu gave Muñoz thousands of dollars in gift cards for facilitating these fraudulent discounted orders. When the products arrived at the university stockroom, a stockroom employee diverted the products to Yu, who repackaged them and shipped them to China. To avoid scrutiny, Yu made false statements about the value and contents of these shipments in export documents.
This scheme continued until MilliporeSigma compliance personnel identified certain orders as suspicious, prompting the company to retain outside counsel who voluntarily disclosed the misconduct to the Department of Justice’s National Security Division only a week later. MilliporeSigma made the disclosure well before its counsel had completed their investigation and understood the full nature and extent of the scheme. MilliporeSigma offered exceptional cooperation to the prosecution team, including by proactively identifying and producing documents to the Department that established probable cause to search residences and electronic devices of culpable individuals. MilliporeSigma’s cooperation allowed investigators to quickly identify the individuals responsible for the scheme, including Yu and Muñoz, and secure their felony guilty pleas. As a result of MilliporeSigma’s timely self-disclosure and extraordinary cooperation, MilliporeSigma will not be charged, despite the criminal wrongdoing committed by Muñoz, a MilliporeSigma employee.
The Defense Criminal Investigative Service; Department of Commerce, Bureau of Industry and Security; and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases.
Declination letter Yu information Yu plea agreement Munoz information Munoz plea agreementRed Bluff Man Charged with Attempted Sexual Exploitation of a Child & Other OffensesRead the Press Release
SACRAMENTO, Calif. — On May 16, 2024, a federal grand jury returned a three-count indictment against Christopher King, 29, of Red Bluff, charging him with attempted sexual exploitation of a child and distribution and possession of visual depictions of a minor engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. The case was unsealed Tuesday following his arrest.
According to court documents, King attempted to sexually abuse a minor by producing secret recordings of the minor utilizing a hidden camera. King also distributed images of children involved in sexually explicit conduct on an online social media platform. Finally, King possessed several images of children engaged in sexually explicit conduct on electronic devices seized from his residence.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.
If convicted of attempted sexual exploitation of a child, King faces a mandatory minimum sentence of 15 years and a maximum statutory penalty of 30 years in prison, a lifetime of supervised release, restitution, and a $250,000 fine. If convicted of distribution of a visual depiction of a minor engaging in sexually explicit conduct, King faces a mandatory minimum sentence of five years and a maximum statutory penalty of 20 years in prison, a lifetime of supervised release, plus restitution and a fine. If convicted of possession of a visual depiction of a minor engaging in sexually explicit conduct, King faces a maximum statutory penalty of 10 years in prison, a lifetime of supervised release, plus restitution and a fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Randolph County Man Admits to Methamphetamine ChargeRead the Press Release
ELKINS, WEST VIRGINIA – Donald Ray Cantrell, Jr., 48, of Mill Creek, West Virginia, pled guilty today to conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Cantrell was on supervised release after serving time for a drug charge. U.S. Probation officers searched Cantrell’s home during a visit and found 220 grams of methamphetamine.
Cantrell faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Mountain Region Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the West Virginia State Police investigated.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Quincy Man Sentenced to Eight Years in Prison for Drug and Gun OffensesRead the Press Release
BOSTON - A Quincy man was sentenced today for illegally possessing a loaded handgun while trafficking cocaine and fentanyl.
Rey David Fulcar, 38, was sentenced by U.S. District Court Judge Denise J. Casper to eight years in prison and three years of supervised release. Fulcar pleaded guilty in December 2023 to one count of being a felon in possession of a firearm and ammunition and two counts of possessing cocaine and fentanyl with the intent to distribute.
On July 23, 2022 Fulcar was observed conducting a drug deal in his car in Boston. The buyer was stopped by law enforcement and found with three bags of crack cocaine he had just bought from Fulcar. Fulcar was subsequently stopped as he drove away from the drug deal and attempted to flee during his arrest. Thirteen more bags of cocaine and fentanyl were found hidden inside Fulcar’s underwear. Additionally, five large shrink-wrapped packages containing suspected marijuana, as well as $1,141 cash were found inside Fulcar’s vehicle.
During a subsequent search of Fulcar’s Quincy apartment, fentanyl and a stash of cocaine in trafficking quantities were found along with a semi-automatic pistol loaded with seven rounds of ammunition. Also found was a handwritten list Fulcar maintained detailing drug customers, their orders and debts owed, a scale, cutting agent, packaging material and other drug paraphernalia in his kitchen.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Michael Cox, Commissioner of the Boston Police Department made the announcement today. Assistant U.S. Attorneys Fred M. Wyshak, III and John T. Dawley and of the Organized Crime & Gang Unit prosecuted the case.
The investigation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Purported Rap Promoter Pleads Guilty to Role in $2.3M Nationwide Fraud ConspiracyRead the Press Release
An Illinois man pleaded guilty today to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States, and caused a total loss of $2,299,842.
According to court documents, between at least March 2016 and September 2020, Antonio M. Strong, 31, of Lansing, Illinois, conspired with Herbert Wright, Joseph Williams, Demario Sorrells, and others to defraud numerous businesses and individuals by using unauthorized and stolen payment card account information to obtain valuable goods and services from those businesses and individuals, including private jet charters, private yacht charters, luxury car rentals, luxury hotel and vacation rental accommodations, private chef and security guard services, designer puppies, limousine and chauffeur services, commercial airline flights, consumer goods, meals, and other incidentals. The actual cardholders discovered these transactions on their accounts and disputed the charges. The actual cardholders’ payment card companies then reversed their payments and charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.
During this time, Strong presented himself as a rap promoter based in the Chicago area. To conceal his identity and perpetrate the fraud, Strong used various fictitious names and aliases; provided fake driver’s licenses; used email accounts in the names of fictitious and real businesses; and falsely stated that he was from “Universal Music,” “Sony Music,” “Epic Music,” and other real and fictitious companies.
Strong pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud. He is scheduled to be sentenced on Sept. 19 and faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines
Wright, Williams, and Sorrells have all pleaded guilty to one count of conspiracy to commit wire fraud. Wright was sentenced on Jan. 11 to three years of probation and was ordered to pay $139,968 in both restitution and forfeiture. Williams is scheduled to be sentenced on June 28, and Sorrells is scheduled to be sentenced on Aug. 29. Two other co-conspirators were indicted in October 2020 and their trial is scheduled to begin on Oct. 21.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts; and Special Agent in Charge Andrew Murphy of the U.S. Secret Service Boston Field Office made the announcement.
The U.S. Secret Service is investigating the case.
Trial Attorneys Andrew Tyler and Kyle Crawford of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven H. Breslow for the District of Massachusetts are prosecuting the case.
President and Owner of Baltimore County Business Convicted After Seven Day Trial for Honest Services Wire Fraud and BriberyRead the Press Release
Baltimore, Maryland –After a seven-day trial, a federal jury returned guilty verdicts yesterday convicting Wayne I. Kacher, Jr., age 51, of Harford County, Maryland, on federal charges of conspiring to commit honest services wire fraud and bribery, honest services wire fraud, and bribery involving federal funds.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
As detailed in trial testimony, the Maryland Broadband Cooperative, Incorporated (“MdBC”) was a not-for-profit corporation whose purpose was to work with internet service providers to offer broadband internet service to under-served and un-served areas in Maryland. For a fee, public and private entities could join the cooperative and gain access to the broadband infrastructure that MdBC installed. MdBC’s office was located in Salisbury, Maryland. William Patrick Mitchell worked as the President and Chief Executive Officer (“CEO”) of MdBC.
Defendant Wayne Kacher (“Kacher”) was the president and owner of Bel Air Underground, Inc. (“BAU”), a company that is principally located in Baltimore County, Maryland. BAU frequently acted as a subcontractor on projects for MdBC. Kacher was also the president and owner of Pro Comm Engineering and Locating Services, LLC (“Pro Comm”), which was principally located in Baltimore, County Maryland. Pro Comm also acted as a subcontractor on projects for MdBC.
From 2014 to 2018, MdBC paid Kacher’s company, BAU, more than $11 million for broadband network related work. Of that amount, approximately $7.9 million was for work on installing and improving a fiber optic broadband connection from NASA Wallops Island to Patuxent River Naval Air Station (hereafter “Pax River”) in St. Mary’s County, Maryland, to enhance the communications capacity between those locations.
The trial evidence showed that from at least 2014 to 2018, Kacher provided Mitchell with financial benefits, including cash payments, and payments for an all-terrain vehicle and a John Deere Gator owned by Mitchell. Kacher also paid for renovations and improvements to Mitchell’s residence, including paying for the construction of a pole building on Mitchell’s property. Kacher gave these things to Mitchell because of and in exchange for the work that MdBC was subcontracting to BAU and Pro Comm.
At sentencing, not yet scheduled by the court, Kacher faces a maximum sentence of five years in federal prison for conspiracy; twenty years in federal prison for honest services wire fraud; and a maximum of ten years in prison for federal program bribery.
On May 10, 2024, William Patrick Mitchell, age 58, previously pleaded guilty to Counts One and Two of the Superseding Indictment, which charged Mitchell with Conspiracy and Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 371 and 1346. Judge Gallagher will sentence Mitchell on October 4, 2024.
United States Attorney Erek L. Barron commended DCIS and the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Matthew Phelps and Christine Goo, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Petersburg drug dealer sentenced for meth, heroin distributionRead the Press Release
RICHMOND, Va. – A Petersburg man was sentenced today to 10 years and six months in prison for possession with intent to distribute methamphetamine and heroin.
According to court documents, from Sept. 9, 2022, to Feb. 8, 2023, the Virginia State Police 1B Task Force conducted five controlled purchases of heroin, fentanyl, and cocaine from Richard Arthur Jones, 37. The last three of these transactions occurred at Jones’ apartment.
On Feb. 16, 2023, as the task force executed a search warrant on the apartment, Jones attempted to throw a plastic bag from his balcony. The bag became stuck in a tree, however, and was recovered by law enforcement. The bag contained a total of approximately 306.14 grams of meth and approximately 95.56 grams of heroin. From inside the apartment, law enforcement recovered approximately 32.5 grams of a mixture of heroin and fentanyl and approximately 21.14 grams of methamphetamine, as well as a .40 caliber handgun in a Gucci cross-body bag.
Jones pleaded guilty on Jan. 4.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Travis C. Christian, Chief of Petersburg Bureau of Police; and Lt. Col. Brad J. Badgerow, Acting Chief of Chesterfield County Police, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorney Stephen W. Miller and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, 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. 3:23-cr-143.
This release was edited on May 29, 2024, to recognize the work of the Petersburg Bureau of Police on this case.
Owner of SoCal-Based Ambulatory Transportation Companies Indicted for Alleged Tax Evasion and COVID-19 Relief FraudRead the Press Release
SANTA ANA, California – A federal grand jury today returned a superseding indictment charging an Orange County man with wire fraud and money laundering for allegedly making fraudulent claims to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm because of the COVID-19 pandemic.
According to the superseding indictment, from May 2020 to December 2021, Mehrdad “Mitch” Tabrizi, of Aliso Viejo, submitted two fraudulent PPP applications on behalf of Life Fleet Inc., a Riverside-based business he owned, seeking $695,565 in loans. In the applications, Tabrizi allegedly claimed that Life Fleet had at least 54 employees and monthly payroll obligations of $139,313. After receiving the PPP funds, Tabrizi allegedly used the proceeds for personal expenses. Similarly, Tabrizi allegedly filed a false EIDL application claiming that Life Fleet had gross revenues of more than $4 million and 63 employees. However, Life Fleet allegedly was not in business, had no revenue and had no employees.
Tabrizi also allegedly filed a fraudulent EIDL application in the name of Resonante Group Inc., an Anaheim-based company he controlled. According to the superseding indictment, this EIDL application falsely claimed Resonante Group had gross revenues of more than $19 million and over 300 employees. As a result, the Small Business Administration allegedly disbursed approximately $319,800 into bank accounts controlled by Tabrizi, which he was not entitled to receive and used for personal expenses.
Tabrizi was previously charged with tax evasion and filing false tax returns. According to the superseding indictment, Tabrizi operated SoCal Medical Transportation Inc., a Riverside-based company. In 2015 and 2016, Tabrizi allegedly deposited approximately $2.6 million of income into a bank account but did not disclose these funds to the CPA firm he hired to prepare SoCal Medical’s corporate tax returns. Instead, Tabrizi allegedly informed the CPA firm that these funds had been received by a separate business.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, he faces a maximum penalty of 20 years in prison for each of four counts of wire fraud, 10 years in prison for each of four counts of money laundering, five years in prison for each of two counts of tax evasion and three years in prison for each of two counts of filing false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Assistant United States Attorney Brett A. Sagel of the Corporate and Securities Fraud Strike Force and Trial Attorneys Christopher E. Lin and Boris Bourget of the Justice Department’s Tax Division are prosecuting this case.
Owner of Ambulatory Transportation Company Indicted for Tax Evasion and COVID-19 Relief FraudRead the Press Release
A federal grand jury in Santa Ana, California, returned a superseding indictment today charging a California man with wire fraud and money laundering for making fraudulent claims to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. He had previously been charged with tax evasion and filing false corporate tax returns.
According to the superseding indictment, from May 2020 to December 2021, Mehrdad “Mitch” Tabrizi, of Aliso Viejo, submitted two fraudulent PPP applications on behalf of Life Fleet Inc., a California business he owned, seeking $695,565 in loans. In the applications, Tabrizi allegedly claimed that Life Fleet had at least 54 employees and monthly payroll obligations of $139,313. After receiving the PPP funds, Tabrizi allegedly used the proceeds for personal expenses. Similarly, Tabrizi allegedly filed a false EIDL application claiming that Life Fleet had gross revenues of more than $4 million and 63 employees. In reality, however, Life Fleet allegedly was not in business, had no revenue and had no employees.
Tabrizi also allegedly filed a fraudulent EIDL application in the name of Resonante Group Inc., a California company he controlled. According to the superseding indictment, this EIDL application falsely claimed Resonante Group had gross revenues of more than $19 million and over 300 employees. As a result, the Small Business Administration allegedly disbursed approximately $319,800 into bank accounts controlled by Tabrizi, which he was not entitled to receive and used for personal expenses.
Tabrizi was previously charged with tax evasion and filing false tax returns. According to the superseding indictment, Tabrizi operated Socal Medical Transportation Inc., a company incorporated in California. In 2015 and 2016, Tabrizi allegedly deposited approximately $2.6 million of income into a bank account but did not disclose these funds to the CPA firm he hired to prepare Socal Medical’s corporate tax returns. Instead, Tabrizi allegedly informed the CPA firm that these funds had been received by a separate business.
If convicted, he faces a maximum penalty of 20 years in prison for each of four counts of wire fraud, 10 years in prison for each of four counts of money laundering, five years in prison for each of two counts of tax evasion and three years in prison for each of two counts of filing false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada of the U.S. Attorney’s Office for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney Brett Sagel for the Central District of California are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Resident Pleads Guilty to Conspiring to Distribute Fentanyl and FluorofentanylRead the Press Release
PITTSBURGH, Pa. - A resident of Youngstown, Ohio, pleaded guilty in federal court to conspiring to distribute fentanyl and fluorofentanyl, United States Attorney Eric G. Olshan announced today.
Teqwan Scott, 29, pleaded guilty before Senior United States District Judge Arthur J. Schwab to conspiring to distribute 40 grams or more of fentanyl and 10 grams or more of fluorofentanyl between May 2021 and October 2022.
Judge Schwab scheduled sentencing for October 1, 2024. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 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 Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, Pennsylvania Office of Attorney General, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, and Pennsylvania State Police conducted the investigation resulting in the conviction of Scott.