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Tuesday 21 May 2024
Federal Grand Jury Indicts Three Men in Connection with Violent Robberies of Chicago BusinessesRead the Press Release
CHICAGO — A federal grand jury has indicted three men for allegedly conspiring to violently rob several liquor stores and convenience stores in Chicago.
Charged with federal conspiracy and firearm offenses are ARDARIES HARRIS, 26, of Chicago, JORDAN FOX, 24, of Chicago, and ROOSEVELT VEAL, 26, of Rockford, Ill., and formerly of Chicago. All three defendants have been ordered detained in federal custody pending trial.
According to an indictment returned Monday in U.S. District Court in Chicago, the robbers wore masks and brandished firearms in five heists in November 2023 and January 2024:
- Nov. 24, 2023: Veal and a co-conspirator robbed Super Saving Food, located in the 4400 block of West Belmont Avenue in Chicago.
- Jan. 13, 2024: Harris, Fox, and a co-conspirator robbed Buchanas Food & Liquor, located in the 1800 block of West 47th Street in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Mr. P Beverage Depot, located in the 2000 block of West Division Street in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Before You Go Liquor, located in the 1900 block of West Fullerton Avenue in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Clybourn Market, located in the 2800 block of North Clybourn Avenue in Chicago.
In addition to the five robberies, the indictment alleges that the conspiracy continued until May 4, 2024, and involved additional heists, including robberies of bars in Chicago. The federal investigation remains ongoing.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by Homeland Security Investigations in Chicago and the Illinois State Police. The government is represented by Assistant U.S. Attorneys Emily C.R. Vermylen and Stephanie Stern.
The investigation was conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago. The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes.
Holding firearm offenders accountable through federal prosecution is the centerpiece of Project Safe Neighborhoods, a nationwide Department of Justice initiative that brings together law enforcement officials, prosecutors, community leaders, and other stakeholders to develop comprehensive solutions to the most pressing violent crime problems. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Harris et al indictmentFederal Court Permanently Shuts Down Connecticut Tax Preparer and BusinessesRead the Press Release
The U.S. District Court for the District of Connecticut issued a permanent injunction today against a Connecticut tax return preparer, Juan Carlos Frias, and his businesses, USA Tax LLC, Multi Latin Services LLC and Connecticut Tax and Services Inc., permanently barring them from preparing federal tax returns for others.
According to Justice Department’s complaint, from 2017 through 2021, Frias and his companies prepared over 10,000 tax returns for customers. The complaint alleges that, during those years, Frias and his companies displayed a pattern of filing tax returns that understated customers’ liabilities and inflated their refunds by falsifying business expenses, reporting false filing statuses and qualifying children or dependents, claiming false education and residential energy credits and fabricating erroneous itemized deductions, including medical and dental expenses, charitable deductions and impairment-related work expenses.
According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Personal Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on the return. Not signing the return, commonly known as “ghost preparation” is often a red flag that a preparer is attempting to avoid detection by the IRS. The United States alleges that Frias acted as a ghost preparer.
According to the court’s order, Frias and his businesses consented to entry of the injunction, which permits the United States is permitted to conduct post-judgment discovery to monitor compliance with the injunction. The order requires that they (1) send notice of the injunction to each person for whom Frias and his companies prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2018, to the present and (2) post a paper copy of the injunction at all physical locations where they conducted business and an electronic copy of the injunction on any business website, social media site or social media profile they maintain and create over the next five years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Frias Permanent Injunction Order.pdfEl Paso Man Arrested for Firearm Trafficking, Dealing Without a LicenseRead the Press Release
EL PASO, Texas – An El Paso man was arrested in El Paso for alleged crimes related to trafficking and selling firearms without a license.
According to court documents, Jesse Garay, 26, allegedly purchased numerous firearms between Sept. 7, 2022 and March 24, 2023, answering on each Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was “the actual transferee/buyer of the firearm(s) listed on this form.” Private messages obtained in a search warrant allegedly revealed that Garay sold the firearms to other individuals, including a minor. Additionally, at least three of the firearms purchased by Garay are alleged to have been recovered at either crime scenes or in Mexico.
Garay is charged with one count of trafficking in firearms, one count of dealing firearms without a license, and two counts of false statement during a firearm acquisition. If convicted, he faces a maximum penalty of 15 years in prison for the trafficking charge, five years for the dealing without a license charge, and 10 years for each false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey C. Boshek II for the ATF Dallas Field Division made the announcement.
ATF is investigating the case.
Assistant U.S. Attorney Mathew Engelbaum is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Disbarred Attorney Sentenced to Nine Years in Prison for COVID-19 Relief Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DOUGLAS RAYMOND ARNTSEN was sentenced to nine years in prison for his scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $1.4 million in government-funded loans designed to provide relief to small businesses during the COVID-19 pandemic. ARTSEN previously pled guilty before U.S. District Judge P. Kevin Castel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Douglas Raymond Arntsen, a disbarred attorney and recidivist fraudster, took advantage of a national emergency to line his pockets, masterminding a scheme to defraud the government out of more than $1.4 million by submitting fraudulent COVID-19 relief loan applications. Thanks to the hard work of this Office and our law enforcement partners, Arntsen is being held accountable for his fraud.”
According to the Indictment, other public filings, and statements made in court:
Between about June 2020 through about August 2020, DOUGLAS RAYMOND ARNTSEN orchestrated a scheme to defraud the SBA by submitting fraudulent loan applications through the Economic Injury Disaster Loan (“EIDL”) Program. In doing so, ARNTSEN recruited multiple co-conspirators. ARNTSEN promised potential co-conspirators a way out of their difficult financial circumstances. Certain of those co-conspirators trusted ARNTSEN because they thought he was an attorney. In reality, ARNTSEN had been disbarred.
ARNTSEN asked his co-conspirators to give him their personal information, including social security and driver’s license numbers, and then used this information to submit fraudulent loan applications to the EIDL program. The applications submitted by ARNTSEN falsely claimed that the co-conspirators owned businesses that had substantial revenue. Often, the co-conspirators named as owners of the businesses, in fact, had no legitimate connection to the businesses at all. After the loan applications were submitted, ARNTSEN directed his co-conspirators to lie to the SBA during the loan diligence process.
ARNTSEN also directed his co-conspirators to recruit additional participants to his fraudulent scheme. After one co-conspirator had obtained a fraudulent loan, ARNTSEN directed him, in sum and substance, to “[g]et me one more warm body.” The co-conspirator proceeded to give ARNTSEN the personal information of a relative, which was then used to obtain another fraudulent loan.
In total, ARNTSEN and his co-conspirators obtained at least approximately $1.4 million in fraudulent loans and attempted to obtain hundreds of thousands of dollars of additional loans that the SBA declined to fund. After one fraudulent loan was approved by the SBA, ARNTSEN texted a co-conspirator, in sum and substance, “Need how you want your bank checks. Your chariot has arrived this morning.”
Prior to the instant offense, in 2012, ARNTSEN, then a barred attorney working for Crowell & Moring, was convicted and sentenced to four to 12 years in prison for engaging in a multi-year scheme to steal more than $10 million in clients’ money from escrow accounts.
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In addition to his prison term, ARNTSEN, 45, of Staten Island, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,430,200 and to forfeit the same amount.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and additionally thanked the Suffolk County District Attorney’s Office for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
Dark Web drug vendor and clandestine lab manufacturer sentenced to prison for trafficking in methamphetamine and fentanylRead the Press Release
MIAMI – On May 17, an Orange County, California, resident, Tenzin Orgil, 24, was sentenced to 168 months in federal prison for participating in a drug trafficking enterprise that included the sale of methamphetamine and fentanyl on the dark web, as well as the manufacture of ecstasy (also known as MDMA) and methamphetamine in clandestine laboratories. Orgil pleaded guilty in July 2023 and was sentenced by U.S. District Judge Kathleen M. Williams in the Southern District of Florida.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment synthetic drugs have resulted in the most dangerous and deadly drug crisis the United States has ever faced. These synthetic drugs, such as fentanyl and methamphetamine, are responsible for nearly all of the fatal drug poisonings in our nation. Fentanyl killed 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl.
Since at least 2020, until the time of his arrest, Orgil worked under the dark web vendor monikers iEUROPA, iUSA, iAMERICA, UNITEDAIRLINES and SVR667, to distribute large amounts of narcotics via various dark web marketplaces, as well as the peer-to-peer encrypted chat platform, Wickr. Orgil was based in California and sold cocaine, MDMA, heroin, fentanyl, and methamphetamine via the U.S. mail system to customers all over the United States, to include in South Florida. Between 2020 and 2021, through undercover purchases from Orgil via the dark web or Wickr, law enforcement officers in South Florida seized 2.54 grams of fentanyl, in the form of counterfeit oxycodone pills, and 4.965 kilograms of methamphetamine, which was 100% pure. Orgil was also a major manufacturer of MDMA and methamphetamine. He operated numerous clandestine laboratories in California.
Photo of one of Orgil’s dark web vendor pages, included in the Government’s Reply to Defendant’s Response to Motion for Revocation of Magistrate Court’s Order of Bond (DE 15-1)
On Dec. 23, 2022, Irvine Police Department officers in California stopped Orgil while he was driving a vehicle. During a search of his vehicle, Orgil had in his possession several precursor chemicals, obtained from Chinese chemical companies, that are used to produce MDMA, as well as two cellphones. A search of these phones found photos of narcotics, as well as evidence of Orgil’s dark web vendor moniker name of “iBULK” and his access of darknet marketplaces. The search also revealed photos of clandestine laboratories and screenshots of text messages explaining how to manufacture illicit narcotics. Orgil’s phones also revealed that he was in communication with several Chinese chemical manufacturing companies in order to purchase precursor chemicals.
Photo of one of Orgil’s clandestine laboratories, included in the Government’s Response to the Defendant’s Sentencing Memorandum (DE 67).
Photo of Orgil’s text communications regarding drug manufacturing, included in DE 67
On Jan. 18, 2023, law enforcement agents arrested Orgil and a search warrant was executed at his residence in California. A search of his residence revealed a gun with a loaded magazine, numerous fake identification cards, a recipe for manufacturing methamphetamine, and a computer. A search of his computer revealed photographs of counterfeit blue M30/oxycodone pills with a Dark Market/United Airlines label, bags of methamphetamine with an iUSA label and cocaine with a SVR667 label. Additionally, copies of the mailing labels for the packages sent in the undercover purchases were preserved on Orgil’s computer.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, Special Agent in Charge Jeffery B. Veltri of the FBI, Miami Field Office, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami announced the sentence imposed.
DEA Miami Field Division’s Counternarcotic Cyber Investigations Task Force, FBI Miami, USPIS Miami, IRS-CI Miami Field Office and HSI Miami investigated the case with assistance from DEA San Jose, United States Postal Inspection Service San Jose, DEA New England, Massachusetts State Police - Gaming Enforcement Unit, DEA Orange County, DEA Omaha, DEA Forth Worth, Irvine Police Department, and the Costa Mesa Police Department. Assistant U.S. Attorney Monique Botero prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff handled asset forfeiture.
The indictment is a result of Organized Crime Drug Enforcement Task Force (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20018.
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Court Orders Durham Practitioner to Pay $500,000 for Writing Unauthorized Prescriptions for Controlled SubstancesRead the Press Release
GREENSBORO - United States Attorney for the Middle District of North Carolina Sandra J. Hairston announced today that a federal court entered a consent judgment ordering Sharon Raynes Halliday (Halliday) and her practice, RAPHA Healthcare Services, LLC (RAPHA), located in Durham, to pay $500,000 in civil penalties to resolve allegations that she violated the Controlled Substances Act and the False Claims Act by writing invalid prescriptions and by causing Medicare and North Carolina Medicaid to pay for those prescriptions.
The consent judgment resolves a complaint filed by the United States and the State of North Carolina on July 17, 2022, alleging that Halliday wrote prescriptions for controlled substances without authorization, and, through RAPHA, caused Medicare and Medicaid to pay for these unauthorized and invalid prescriptions. The complaint alleges that Halliday obtained a medical school faculty license, also known as a faculty limited license, under false pretenses from Duke University Medical School. A faculty limited license is intended to allow medical schools in North Carolina to benefit from expertise or specialized skills of physicians who are not otherwise eligible for full licensure in North Carolina. The faculty limited license only allows physicians holding such license to practice to the extent authorized by its sponsoring university. According to the complaint, Duke University never authorized Halliday to write prescriptions, nor was Halliday authorized to open RAPHA, which had multiple locations.
Halliday and her practice, RAPHA, agreed to pay the $500,000 civil penalty and be bound by the terms of the consent judgment.
“It is essential to the health and safety of all citizens that medical practitioners only write prescriptions for controlled substances when authorized and legitimate,” said U.S. Attorney Hairston. “The laws surrounding prescriptions exist to ensure the legitimacy and safety of every controlled substance prescription, and our office will continue to hold responsible those violating these laws.”
The resolutions obtained in this matter were the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Drug Enforcement Administration, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The United States was represented by Assistant U.S. Attorney Rebecca Mayer.
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Convicted Sex Offender Sentenced to Federal Prison for Illegal Reentry to the United StatesRead the Press Release
PROVIDENCE, RI – A convicted sex offender deported to his native Guatemala from the United States in April 2019 following his conviction and incarceration on a Rhode Island state charge of indecent solicitation of a minor was sentenced today to twelve months and one day in federal prison for illegally reentering the United States, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, Carlos Gregorio Santos, 52, was arrested by Providence Police on September 29, 2023, following an investigation into an alleged altercation between himself and another man over a dispute about wages. At the time of his arrest, in an apparent effort to shield his true identity, the defendant provided police with a false name and false date of birth. The FBI later confirmed his real identity.
Santos pleaded guilty in U.S. District Court on February 15, 2024, to a charge of illegal reentry after removal. He was sentenced today by U.S. District Court Judge Mary S. McElroy to twelve months and one day in prison to be followed by one year of federal supervised release. Santos faces deportation upon completion of his current term of incarceration.
The case was prosecuted by Assistant U.S. Attorney Julie M. White.
The matter was investigated by U.S. Immigration and Custom Enforcement, with the assistance of the FBI and Providence Police Department.
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Companies that Own and Operate Oil Tanker Plead Guilty to Environmental CrimesRead the Press Release
Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.
Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG.The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.
The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.
“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”
“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”
“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."
“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.”
The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.
The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.
Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdfCompanies that Own and Operate Oil Tanker Plead Guilty to Environmental CrimesRead the Press Release
Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.
Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG.The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.
The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.
“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”
“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”
“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."
“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.”
The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.
The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.
Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdf
Columbia Man Sentenced to 15 Years for Armed Bank Robbery in BoonvilleRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was involved in a string of armed robberies across the state has been sentenced in federal court for the armed robbery of a Boonville, Mo., bank.
Drake Adam Stockton-Kenney, 32, was sentenced by U.S. District Judge Rosann A. Ketchmark on Monday, May 20, to 15 years in federal prison without parole. The court ordered the federal sentence to be served consecutively to the state sentence he is currently serving for a robbery conviction in a separate and unrelated case.
On Oct. 6, 2023, Stockton-Kenney pleaded guilty to one count of armed bank robbery. Stockton-Kenney admitted that he stole $22,027 from Alliant Bank in Boonville on June 25, 2021. Stockton-Kenney pointed a Taurus 9mm semi-automatic handgun at bank employees and ordered them to put their hands up. After putting the money in a white shopping bag, Stockton-Kenney ordered the employees to lie on the floor and count to 60 as he left the bank.
A nearby resident saw Stockton-Kenney cross her yard and get into a vehicle immediately after the robbery. Within about 10 minutes of the robbery, a license plate reader captured the license plate of the Chevrolet Spark rented by Stockton-Kenney traveling on Interstate 70.
According to court documents, Stockton-Kenney was involved in a string of robberies across the state between April 17 and June 25, 2021, committed within weeks of his release from a prior robbery sentence. Stockton-Kenney also robbed Check into Cash in Moberly on April 17, 2021; World Finance in Mexico on May 4, 2021; Advance America in Marshall on May 6, 2021; Check ‘n Go in Hannibal on May 20, 2021; and Alliant Bank in Pilot Grove on June 2, 2021. In each of those robberies, Kenney brandished a firearm and threatened to shoot anyone who did not comply with his demands.
Under the terms of his plea agreement, the government dismissed federal charges related to the additional robberies but took them into account in seeking a longer sentence than the federal sentencing guidelines recommendation.
Stockton-Kenney’s history of criminal activity includes felony convictions for two burglaries, tampering with a motor vehicle, and robbery. Stockton-Kenney committed the robbery four months after being paroled on his first three convictions in 2011. Stockton-Kenney remained in custody for his robbery conviction until Feb. 21, 2021, when he was again paroled. Stockton-Kenney’s most recent spree of criminal conduct began weeks after his February 2021 parole.
This case was prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County, Mo., Sheriff’s Department, the Booneville, Mo., Police Department, the Columbia, Mo., Police Department, the Cooper County, Mo., Sheriff’s Department, the Hannibal, Mo., Police Department, the Marion County, Mo., Sheriff’s Department, the Marshall, Mo., Police Department, the Mexico, Mo., Police Department, the Moberly, Mo., Police Department, the Pilot Grove, Mo., Police Department, the Missouri State Highway Patrol, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Columbia County Man Indicted for Forcibly Assaulting and Threatening to Kill Two United States Secret Service AgentsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Eric Evan Brown (57, White Springs) with interstate transmission of a threat to injure, threatening a United States Secret Service Protectee, two counts of forcibly assaulting a federal officer without use of a deadly weapon, and two counts of threatening a federal official. If convicted, Brown faces up to 10 years in federal prison for each count of threatening a federal official, up to 8 years in prison for each count of forcibly assaulting a federal officer, and up to 5 years in prison for the transmission of a threat and threat against a U.S. Secret Service Protectee. Brown made his appearance in federal court on May 20, 2024, and was ordered detained.
According to court documents, on April 7, 2024, Brown posted on X/Twitter a threatening communication to kill the spouse of a former president of the United States. On May 9, 2024, while two U.S. Secret Service agents were conducting a follow up investigation regarding the threat against the Protectee, Brown threatened to assault and murder both agents.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Secret Service – Jacksonville Field Office, with assistance from the Columbia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Chinese national charged in “pig butchering” schemeRead the Press Release
TYLER, Texas – A Chinese national has been charged with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Fei Liao, 29, of San Gabriel, California, was brought into federal custody on May 3, 2024. On May 20, 2024, Liao waived arraignment and pleaded not guilty to the charges. The indictment charges Liao with conspiracy to commit wire fraud and conspiracy to commit money laundering. Liao and others allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams – also known as “pig butchering” – and other fraudulent schemes. Then, they allegedly transferred the funds involved in the fraud schemes to domestic and international financial institutions. Each of the charges for conspiracy to commit wire fraud and conspiracy to commit money laundering carry a maximum statutory sentence of 20 years in federal prison.
According to court documents, pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the U.S. Secret Service, Tyler Resident Office. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells.
If you or someone you know is a victim, report it to the www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
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Cedar Rapids Man Charged with Attempted Sex Trafficking of a Child and Destruction of EvidenceRead the Press Release
Joshua Johnson, age 49, of Cedar Rapids, Iowa, has been charged with attempted sex trafficking of a child and destruction of evidence. The charges are contained in an Indictment filed on May 9, 2024, in United States District Court in Cedar Rapids.
The Indictment alleges that, in December 2023, Johnson attempted to recruit, entice, obtain, patronize, and solicit a person he believed to be under 14 to engage in a commercial sex act. The Indictment also alleges that Johnson destroyed electronic data with the intent to impede, obstruct, and influence the investigation.
If convicted, Johnson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Johnson appeared for a detention hearing on May 20, 2024, in federal court in Cedar Rapids and was held without bond. Johnson’s next appearance for trial is set for July 15, 2024.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 24-38.
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California Woman Sentenced to Nearly Four Years in Federal Prison for Trafficking Methamphetamine in Rhode IslandRead the Press Release
PROVIDENCE, RI – A Mexican national who, at the direction of an individual incarcerated in a Maine prison, participated in the delivery of four pounds of methamphetamine to a courier who drove to Rhode Island from Maine to take possession of the drugs, has been sentenced to nearly four years in federal prison, announced United States Attorney Zachary A. Cunha.
According to court documents, while under law enforcement surveillance in Rhode Island on June 6, 2022, Nora Cecilia Carranza Reyes, 52, of Huntington Park, CA, participated in the delivery of a paper bag that contained four pounds of crystal meth to an individual who, at the direction of the Maine inmate, traveled to Rhode Island from Maine to retrieve the drugs. That individual was kept under constant law enforcement surveillance while returning to Maine, and the drugs were seized by law enforcement during a traffic stop in Maine.
A court-authorized search of Carranza Reyes’ motor vehicle in Rhode Island at the time of her arrest on June 8, 2022, resulted in the discovery of more than two-and one-half pounds of methamphetamine stashed inside a duffel bag and in a sophisticated hide located within the engine compartment of the vehicle.
Carranza Reyes pleaded guilty on January 25, 2024, to a charge of conspiracy to distribute and possess with intent to distribute methamphetamine and to a charge of possession with intent to distribute methamphetamine. She was sentenced today by U.S. District Court Judge Mary S. McElroy to forty-six months of incarceration to be followed by three years of federal supervised release.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by the Drug Enforcement Administration.
United States Attorney Cunha thanks the United States Attorney’s Office for the District of Maine and the DEA in Bangor, Maine, for their assistance.
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Brooklyn Man Sentenced to Nearly Six Years in Prison for Role in Drug Trafficking Conspiracy Involving over 50 Kilograms of CocaineRead the Press Release
BOSTON – A Brooklyn man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) wherein he transported kilograms of cocaine from New York to Boston in August 2020.
Dinelson Hernandez-Rodriguez, 30, was sentenced by U.S. District Court Judge Patti B. Saris to 68 months incarceration and three years of supervised release. In February 2024, a jury found Hernandez-Rodriguez guilty of conspiracy to distribute and to possess with intent to distribute cocaine.
In October 2019, an investigation began into a DTO trafficking cocaine and fentanyl in Boston and Taunton. Intercepted communications established that the DTO was supplied in part by individuals in New York. In August 2020, Hernandez-Rodriguez drove from New York to Hyde Park with kilograms of cocaine hidden in a trap compartment inside a Honda Pilot automobile. One day prior, a co-conspirator also transported kilograms of cocaine from New York to Hyde Park. In total, Hernandez-Rodriguez and his co-conspirator transported more than 50 kilograms of cocaine intended for distribution in Boston.
After cocaine was distributed in the Boston area, Hernandez-Rodriguez attempted to transport $240,240 in drug proceeds – again, hidden in the trap inside his car – back to New York but was intercepted by law enforcement.
Hernandez-Rodriguez is the ninth defendant to be convicted in this case, either by guilty plea or following a jury trial.
Acting United States Attorney Joshua S. Levy and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Connecticut State Police and the Boston, Taunton and Stratford (Conn.) Police Departments. Assistant U.S. Attorneys Samuel R. Feldman and K. Nathaniel Yeager of the Narcotics & Money Laundering Unit are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bristol Man Admits Committing Numerous Violent Robberies Across Connecticut in 2022Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LONNY CROSS, 45, of Bristol, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to charges related to his commission of numerous violent robberies across Connecticut in September and October 2022.
According to court documents and statements made in court, between September 5 and October 13, 2022, Cross committed 37 robberies and attempted robberies of gas station convenience stores, mini-markets, and liquor stores in North Branford, Waterbury, Wolcott, Plymouth, New Haven, North Haven, Orange, West Haven, Wethersfield, Bristol, Southington, Naugatuck, Watertown, Franklin, Norwich, Waterford, Groton City, Stonington, Ledyard, Darien, Norwalk, Stratford, and Seymour, Connecticut, and Port Chester, New York. (See attached list) Several of the robberies occurred on the same day, only minutes apart. Cross typically traveled to the victim-store with an accomplice who would sometimes enter the store to determine the number of employees and customers in the store, exit the store, and then report that information to Cross. Cross then entered the store, displayed a knife or facsimile firearm while threatening employees, and stole cash and other items.
On October 14, 2022, investigators conducted court-authorized searches of Cross’s residence and a black 2014 Chevrolet Impala that Cross was known to drive. The search of the residence revealed clothing consistent with clothing worn by Cross in several of the robberies, as well as quantities of heroin, crack cocaine, and narcotics paraphernalia. A search of the car revealed 120 bags heroin, approximately 14 grams of crack, and a knit hat matching the description of one worn by Cross during a robbery the day before. Cross, who was on state parole, was arrested on state charges on that date. He has been detained since his arrest.
Cross pleaded guilty to one count of conspiracy to commit Hobbs Act Robbery, and one count of Hobbs Act Robbery. Judge Dooley scheduled sentencing for August 21, at which time Cross faces a maximum term of imprisonment of 40 years.
This investigation has been conducted by the FBI, Connecticut State Police, Orange Police Department, Port Chester (N.Y.) Police Department, and numerous other police departments from the municipalities where the robberies occurred, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Baltimore BGF Gang Member Sentenced to 28 Years in Federal Prison for Racketeering Conspiracy Charge, Including MurderRead the Press Release
Baltimore, Maryland – On Tuesday, May 21, U.S. District Judge James K. Bredar sentenced Wayne Prince, a/k/a “Taz,” age 24, of Baltimore to 28 years imprisonment, followed by 5 years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement and other court documents, beginning in 2018 Prince was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder, a drug distribution conspiracy, possession with intent to distribute drugs and robbery. BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland.
As detailed in his plea agreement, on August 7, 2018, Prince and two co-conspirators attempted to murder an individual at a home that the intended target owned and was having renovated. A construction crew was on site at the time. During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers using a .40 caliber handgun. They also shot a second construction worker in the head, but that person survived the attack.
Later that day, Prince bragged to an associate during a recorded jail call, “I’m about to get some money soon,” referring to an expected payment from Co-Conspirator 2 for Prince’s role in the attempted murder of the target. From August 7 to August 9, 2018, Prince exchanged messages with a now-deceased member of Co-Conspirator 2’s inner circle, in which Prince made arrangements to collect payment from Co-Conspirator 2 for his role in the attempted murder of the target.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Monday 20 May 2024
“Incognito Market” Owner Arrested for Operating One of the Largest Illegal Narcotics Marketplaces on the InternetRead the Press Release
Rui-Siang Lin, also known as Ruisiang Lin, 林睿庠, Pharoah, and faro, 23, of Taiwan, was arrested today in connection with his operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. Lin was arrested at John F. Kennedy Airport on May 18, and will be presented in Manhattan federal court before U.S. Magistrate Judge Willis later today.
“Drug traffickers who think they can operate outside the law on the dark web are wrong,” said Attorney General Merrick B. Garland. “As alleged, Rui-Siang Lin was the architect of Incognito, a $100 million dark web scheme to traffic deadly drugs to the United States and around the world. The long arm of the law extends to the dark web, and we will bring to justice those who try to hide their crimes there.”
As alleged in the complaint and the indictment, Incognito Market was an online narcotics bazaar that existed on the dark web. Incognito Market formed in October 2020. Since that time, and through its closing in March, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines. Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.” Lin operated the Incognito market under the online pseudonym “Pharoah” or “faro.” As “Pharoah” — the leader of Incognito market — Lin supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.
“As alleged, Rui-Siang Lin operated a sophisticated and dangerous online narcotics marketplace through which he profited millions of dollars at the community’s expense,” said U.S. Attorney Damian Williams for the Southern District of New York. “The dedicated prosecutors from the Southern District of New York and our law enforcement partners will pursue criminal actors regardless of whether they operate on street corners or in the dark corners of the internet. The so-called ‘dark web’ is not a safe haven for those who seek to break the law.”
“For nearly four years, Rui-Siang Lin allegedly operated ‘Incognito Market,’ one of the largest online platforms for narcotics sales, conducting $100 million in illicit narcotics transactions and reaped millions of dollars in personal profits,” said Assistant Director in Charge James Smith of the FBI New York Field Office. “Under the promise of anonymity, Lin’s alleged operation offered the purchase of lethal drugs and fraudulent prescription medication on a global scale. The FBI is committed to targeting and dismantling all criminal enterprises, especially those whose leaders distribute illegal substances on the dark web.”
“As alleged, Rui-Siang Lin’s brazen operation resulted in the illicit sale of over $100 million in narcotics, including those that were mislabeled and later found to include deadly fentanyl,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “The defendant’s greed and disregard for others was further demonstrated by his alleged extortion attempt during the platform’s final days. The El Dorado Task Force’s Darkweb and Cryptocurrency Task Force leverages cutting-edge techniques to target even the Internet’s most savvy criminals. HSI New York, in coordination with law enforcement partners, remains resolute in its commitment to protecting the public from individuals utilizing dangerous means to make a profit.”
“The arrest of ‘Incognito Market’ owner Rui-Siang Lin is a result of the continued working relationship the DEA has with our law enforcement partners in targeting individuals who use the dark web as a marketplace to promote the sale of illicit narcotics,” said Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration (DEA)’s New York Division. “Mr. Lin’s alleged actions of putting profits before public health were not only reckless and dangerous, but unconscionable. We will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives face justice.”
“The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences,” said Special Agent in Charge Charles Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Kansas City Field Office. “We will continue to monitor, investigate, and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”
“This arrest underscores the dedicated, ongoing efforts of law enforcement to identify and dismantle illicit drug networks operating from every shadowy recess of the marketplace,” said Commissioner Edward A. Caban of the New York Police Department (NYPD). “I commend our NYPD investigators and all of our state and federal partners for their unwavering commitment to public safety.”
Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is picture below:
After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics and misbranded prescription medication, including, heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below:
Listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.
Each listing on Incognito Market was sold by a particular vendor. To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee. In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers. Lin collected millions of dollars of profits from Incognito. To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected. The bank enabled buyers and sellers to stay anonymous from each other. The bank’s graphic interface is picture below:
If convicted, Lin faces a mandatory minimum penalty of life in prison for engaging in a continuing criminal enterprise; a maximum penalty of life in prison for narcotics conspiracy; a maximum penalty of 20 years in prison for money laundering; and a maximum penalty of five years in prison for conspiracy to sell adulterated and misbranded medication. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, HSI, DEA, FDA-OCI, and NYPD investigated the case.
Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo for the Southern District of New York are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-drive, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Incognito Market” Owner Arrested for Operating One of the Largest Illegal Narcotics Marketplaces on the InternetRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Charles Grinstead, the Special Agent in Charge of the Kansas City Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations (“FDA-OCI”); Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”); and Elana Iatarola, the Special Agent in Charge of the Cincinnati Field Office of the FBI, announced today the arrest of RUI-SIANG LIN, a/k/a “Ruisiang Lin,” a/k/a “林睿庠,” a/k/a “Pharoah,” a/k/a “faro,” in connection with his operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. LIN was arrested at John F. Kennedy Airport on May 18, 2024, and will be presented in Manhattan federal court before U.S. Magistrate Judge Willis later today.
U.S. Attorney Damian Williams said: “As alleged, Rui-Siang Lin operated a sophisticated and dangerous online narcotics marketplace through which he profited millions of dollars at the community’s expense. The dedicated prosecutors from the Southern District of New York and our law enforcement partners will pursue criminal actors regardless of whether they operate on street corners or in the dark corners of the internet. The so-called ‘dark web’ is not a safe haven for those who seek to break the law.”
Attorney General Merrick B. Garland said: “Drug traffickers who think they can operate outside the law on the dark web are wrong. As alleged, Rui-Siang Lin was the architect of Incognito, a $100 million dark web scheme to traffic deadly drugs to the U.S. and around the world. The long arm of the law extends to the dark web, and we will bring to justice those who try to hide their crimes there.”
FBI Assistant Director in Charge James Smith said: “For nearly four years, Rui-Siang Lin allegedly operated ‘Incognito Market,’ one of the largest online platforms for narcotics sales, conducting $100 million in illicit narcotics transactions and reaping millions of dollars in personal profits. Under the promise of anonymity, Lin’s alleged operation offered the purchase of lethal drugs and fraudulent prescription medication on a global scale. The FBI is committed to targeting and dismantling all criminal enterprises, especially those whose leaders distribute illegal substances on the dark web.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Rui-Siang Lin’s brazen operation resulted in the illicit sale of over $100 million in narcotics, including those that were mislabeled and later found to include deadly fentanyl. The El Dorado Task Force’s Darkweb and Cryptocurrency Task Force leverages cutting-edge techniques to target even the Internet’s most savvy criminals. HSI New York, in coordination with law enforcement partners, remains resolute in its commitment to protecting the public from individuals utilizing dangerous means to make a profit.”
DEA Special Agent in Charge Frank A. Tarentino III said: “The arrest of ‘Incognito Market’ owner Rui-Siang Lin is a result of the continued working relationship the DEA has with our law enforcement partners in targeting individuals who use the dark web as a marketplace to promote the sale of illicit narcotics. Mr. Lin’s alleged actions of putting profits before public health were not only reckless and dangerous, but unconscionable. We will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives face justice.”
FDA-OCI Special Agent in Charge Charles Grinstead said: “The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences. We will continue to monitor, investigate and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”
NYPD Commissioner Edward A. Caban said: “This arrest underscores the dedicated, ongoing efforts of law enforcement to identify and dismantle illicit drug networks operating from every shadowy recess of the marketplace. I commend our NYPD investigators and all of our state and federal partners for their unwavering commitment to public safety.”
As alleged in the Complaint and the Indictment unsealed today:[1]
Incognito Market was an online narcotics bazaar that existed on the dark web. Incognito Market formed in October 2020. Since that time, and through its closing in March 2024, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines. Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.” LIN operated the Incognito market under the online pseudonym “Pharoah” or “faro.” As “Pharoah” — the leader of Incognito market — LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.
Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is picture below:
After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics and misbranded prescription medication, including, heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below:
Listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.
Each listing on Incognito Market was sold by a particular vendor. To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee. In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers. LIN collected millions of dollars of profits from Incognito. To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected. The bank enabled buyers and sellers to stay anonymous from each other. The bank’s graphic interface is picture below:
* * *
RUI-SIANG LIN, 23, of Taiwan, is charged with one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison; one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of money laundering, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to sell adulterated and misbranded medication, which carries a maximum potential sentence of five years in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI, HSI, DEA, FDA-OCI, and NYPD.
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-drive, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Zone Fifth Street Gang Members Convicted for Racketeering (RICO), Drug, and Firearms Charges in Federal CourtRead the Press Release
DAVENPORT, Iowa – A federal jury in Davenport convicted five gang members yesterday, May 16, 2024, for Conspiracy to Engage in Racketeering Activity, Possession with Intent to Distribute a Controlled Substance, and Possession of Firearms and Ammunition as a Felon.
According to public court documents and evidence presented during the two-week jury trial, Don Christopher White, Jr., 37, Raheem Jacques Houston, 30, Deaguise Ramont Hall, 34, Devell Carl Lewis, 35, and Simmeon Terrell Hall, 34, among others, were members and associates of a criminal organization or Enterprise known as the “Arsenal Courts Posse a/k/a Zone Fifth a/k/a Fifth Street Mafia a/k/a Rock Town Money Getters (RTMG) a/k/a Money Team,” whose members and associates engaged in acts of violence. The Enterprise’s origins began in Rock Island, Illinois, in the late 1990s and early 2000s. At that time, members and associates of the Enterprise referred to themselves as the Arsenal Courts Posse. Arsenal Courts was the former name of Century Woods, a housing complex which members or associates of the Enterprise lived in or frequented on a regular basis. The housing complex is located in the 1400 block of Fifth Street. Between 2009 and 2011, the younger members and associates of the Enterprise began referring to themselves as “Zone Fifth” or “Fifth Street Mafia” continuing to represent the location of the Enterprise’s territory. As alleged in the indictment, the principal purposes and objectives of the Enterprise were to distribute controlled substances, obtain money and things of value, and earn and maintain respect in the Quad Cities.
White, Houston, Lewis, Deaguise Hall, and Simmeon Hall were all found guilty of conspiracy to engage in racketeering activity. As part of this racketeering activity, the jury further found that this gang committed multiple acts involving murder and trafficking in controlled substances.
Additionally, Houston and White were found guilty of felon in possession of firearms and ammunition; Deaguise Hall and Simmeon Hall were found guilty of possession of cocaine base with an intent to distribute.
Defendants’ sentencings have not been scheduled. White faces a maximum of 40 years in prison. Houston faces a maximum of 30 years in prison. Lewis, Deaguise Hall and Simmeon Hall each face a maximum of 20 years in prison. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors. There is no parole in the federal court system.
Co-defendants, Devante Atwell French, Michael Linn Cross, Lashawn D. James Hensley, Ricky Lee Childs, Jr., Timothy Justin Beaver, Rasheem Damonte Bogan, Kylea Dapri Cartwright, Jr., and Cortez Deangelo Cooper, Jr. were also charged as part of the investigation. Jury trial for co-defendants French, Cross, and Hensley, is scheduled for August 5, 2024. Jury trial for co-defendants Beaver, Bogan, Cartwright, Childs and Cooper is scheduled for November 4, 2024.
“The Quad Cities community deserves to go about their days free from the threat of violence used by these defendants,” stated United States Attorney Richard Westphal. “Whether individually or as part of a gang, people that choose to use violence as part of their criminal enterprise will be held accountable. Our gratitude to the multiple local, state and federal law enforcement officers who spent countless hours working on this investigation. Showing, as police officers do every day, that the protection of the community is their highest priority.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, the Rock Island Police Department, the Iowa Department of Criminal Investigation, the Iowa State Patrol, the Moline Police Department, the Scott County Sheriff’s Office, the Bettendorf Police Department, the Des Moines Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco and Firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Window Rock Man Sentenced for Sexual AbuseRead the Press Release
ALBUQUERQUE – A Window Rock man was sentenced to three years in prison after pleading guilty to abusive sexual conduct that occurred 20 years prior.
There is no parole in the federal system.
According to court documents, in 2021, Jane Doe reported that Tom Tso, 85, an enrolled member of the Navajo Nation, had sexually abused her approximately 20 years earlier when she was between 15 and 17 years old while she was asleep at Tso's home. Jane Doe stated that she woke up to find Tso's hand inside her pants. She kicked him away, locked herself in the bathroom, and he tried to unlock the door to get to her before leaving.
The FBI interviewed Tso, a Navajo medicine man and Native American Church Road Man, in December 2021 and March 2022. Tso admitted to touching Doe inappropriately, but he denied penetrating her. He claimed that she had initiated sexual contact.
Jane Doe explained that the delay in reporting was due to fear, and that she reported these years later because, "There are children/women still in his reach" as a medicine man and road man.
After completing his term of imprisonment, Tso will be required to serve five years of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Warren County Man Sentenced to 2 Years in Federal Prison for Federal Sex Offender Registry ViolationRead the Press Release
Bowling Green, KY – A Warren County, Kentucky man was sentenced today to 2 years in federal prison for failing to update his Sex Offender Registration as required by the Sex Offender Registration and Notification Act.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and United States Marshal Gary B. Burman of the Western District of Kentucky made the announcement.
According to court documents, Kelly Lamont Mason, 52, of Bowling Green, Kentucky, was sentenced to 2 years in prison, followed by a 5-year term of supervised release, for one count of failing to register under the Sex Offender Registration and Notification Act (SORNA). Mason was required to register by reason of a conviction under state law and knowingly failed to update a registration as required by SORNA.
On June 26, 2003, Mason pleaded guilty to counts of sexual battery by an authority figure in violation of Tenn. Code Ann. § 39-13-527, in the 20th Judicial District, Judicial Division III, Criminal Court of Davidson County, Tennessee, Case Number 2002-C-1636. This prior criminal conviction carries a lifetime registration requirement under SORNA, which Mason was both aware of and previously affirmed his knowledge of by signed document. In the summer of 2023, Mason moved to Warren County, Kentucky, where he knowingly failed to update his SORNA registration.
There is no parole in the federal system.
The case was investigated by the United States Marshals Service.
Assistant U.S. Attorney R. Nicholas Rabold, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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U.S. Attorney’s Office for D.C. Aids Justice Department’s Creation of Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
WASHINGTON - U.S. Attorney Matthew M. Graves 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 today in Dallas, TX 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,” said the Department’s Office on Violence Against Women (OVW) Director Rosie Hidalgo. “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 Office sees daily the impact of domestic violence,” said U.S. Attorney Graves. “It is why we have so many dedicated and highly trained prosecutors, victim advocates, and staff members working in the space to support survivors, and why we have implemented innovative and effective programs such as the Sexual Assault Cold Case Initiative and the Intimate Partner Violence Prevention Initiative created and staffed by members of the Office’s Sexual Assault and Domestic Violence Section. We were proud to participate in this effort and to help draft a framework that will be implemented across the country.”
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.
Staff from the U.S. Attorney’s Office for D.C. joined more than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions to aid the developers of 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.
U.S. Attorney's Office for the Western District of North Carolina Commends the Release of Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King of the Western District of North Carolina 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 today 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,” said the Department’s Office on Violence Against Women (OVW) Director Rosie Hidalgo. “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.”
“I commend the guidance announced today and reaffirm my Office’s dedication to strengthening the prosecution of sexual assault and domestic violence crimes in the Western District of North Carolina,” said U.S. Attorney King. “This framework is a vital resource for federal prosecutors because it underscores that justice and healing are interconnected and mutually reinforcing concepts. The guidance guarantees that we will do all we can to hold perpetrators accountable for their actions, while ensuring that we support victims and survivors every step of the process, protect their health and safety, respect their experiences, and promote their healing.”
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.
In making today’s announcement, U.S. Attorney King said, “The framework emphasizes the importance of supporting and advocating for victims and survivors of domestic violence and sexual assault within our criminal justice system. Equally important are our ongoing efforts to educate the public about sexual assault and domestic violence prevention, and to administer federal grants that support organizations dedicated to individuals whose lives have been affected by gender-based violence. When victim advocacy remains central in our collective efforts, we ensure that impacted individuals have access to the care, support, and resources they need and the justice they deserve, and we empower communities to take proactive steps to foster safe environments for all.”
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.
For additional information about the U.S. Attorney’s Office please visit our website. Contact details and information about our Victim Witness Unit can be found here.
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 https://www.justice.gov/ovw.
Two Northern Kentucky Men Sentenced for Role in Conspiracy to Illegally Distribute FirearmsRead the Press Release
COVINGTON, Ky. – Two Covington men, Cylis Rowe, 23, and Clifton Barnett, 25, have been sentenced, by U.S. District Judge David Bunning, to 124 months and 70 months in prison respectively, for conspiring to distribute firearms to others who could not legally possess them. Rowe’s sentencing also included one count of possession of a firearm in furtherance of drug trafficking.
According to his court documents, in 2022, law enforcement began investigating individuals regularly selling and possessing firearms and machinegun conversion devices, known colloquially as Glock switches, to individuals engaged in drug trafficking and other criminal offenses. The investigation showed that Rowe and Barnett conspired with Demarco Sturgeon, 23, and others, to distribute the firearms illegally. Sturgeon admitted he was aware of the conspiracy’s straw purchases and distributed over 100 firearms between 2020 and 2022.
Evidence showed that Rowe and Barnett purchased numerous firearms, and Sturgeon sold the guns directly, and through Facebook Messenger. Law enforcement searched all three defendants’ residences; at Rowe’s and Sturgeon’s residences, they found firearms and marijuana. Both Rowe and Sturgeon admitted to extensive firearms trafficking and regularly distributed marijuana, while in possession of firearms, and that they possessed the firearms at their residences to protect them against the dangers associated with drug trafficking.
Sturgeon was previously sentenced, in March 2024, to 130 months in prison and five years of supervised release.
Under federal law, Rowe and Barnett must serve 85 percent of their prison sentences. Upon their release from prison, Rowe will be under the supervision of the U.S. Probation Office for five years, and Barnett will be under supervision for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Shawn Morrow Special Agent in Charge, ATF Louisville Field Division, jointly announced the sentences.
The investigation was conducted by ATF. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.
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Tulare County Man Indicted for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — On April 25, 2024, a federal grand jury returned an indictment against Boyce Isaiah Cervantez, 27, of Dinuba, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following his arrest on Friday, May 17.
According to court documents, between March 1, 2024, and March 16, 2024, Cervantez received at least one visual depiction of children engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation and the Dinuba Police Department. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.
If convicted, Cervantez 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.
Third Mortgage Professional Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — German Antonio Lopez-Velasquez, 55, of Modesto, pleaded guilty today to conspiring to commit bank fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, German Antonio Lopez-Velasquez, a real estate agent, worked with Lisa Santos, 48, of Long Beach, a mortgage loan officer, and Marko Antonio Lopez, 27, of Modesto, a real estate agent and notary public, to obtain fraudulent mortgage loans for properties based in Stanislaus, San Joaquin, and Santa Clara Counties, and elsewhere. The three defendants used false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans.
“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent-in-Charge Mark Kaminsky with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to jeopardize this program and the health and stability of our nation’s housing market.”
Santos pleaded guilty on May 13, 2024, to conspiring to commit bank fraud, and is scheduled to be sentenced on Sept. 30, 2024. Marko Antonio Lopez previously pleaded guilty and was sentenced on April 1, 2024.
Lopez-Velasquez is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Lopez-Velasquez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG) and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
Texas Man Arraigned for Defrauding State and Federal TaxpayersRead the Press Release
CONCORD – A Texas man was indicted for his involvement in a scheme to fraudulently obtain CARES Act funds from the United States government and the State of New York, U.S. Attorney Jane E. Young announces.
Dyetaniel Washington, 29, was indicted on one count of conspiracy to commit wire fraud. Washington was arrested in the Southern District of Texas on May 7, 2024. He appeared in federal court in Concord today, and he was released on conditions. Dyetaniel Washington and his two co-defendants, Kyereem Sackey and Jerred Beniquez, were indicted on October 25, 2023. Sackey was indicted on one count of conspiracy to commit wire fraud and one count of bank fraud. Beniquez was indicted on one count of conspiracy to commit wire fraud.
According to the charging documents, Washington obtained Beniquez’s personal identifying information and provided this information to Sackey. Sackey then used the information to make unemployment insurance claims in the State of New York in Beniquez’s name. On two occasions, the money was deposited into Beniquez’s bank account, and a portion of the money was sent to Washington.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison 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.
The Federal Bureau of Investigation and the Department of Labor Office of Inspector General led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney John J. Kennedy is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Tahlequah Resident Sentenced for Involuntary Manslaughter and Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kiah John Pritchett, age 39, of Tahlequah, Oklahoma, was sentenced to 63 months for one count of Involuntary Manslaughter in Indian Country, and 63 months for one count of Felon in Possession of a Firearm. The terms will run concurrently.
The charges arose from investigations by the Cherokee County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 15, 2023, Pritchett pleaded guilty to one count of Involuntary Manslaughter, and one count of Felon in Possession of a Firearm. According to investigators, on July 4, 2021, Pritchett gave the victim a ride in his vehicle. An altercation broke out between Pritchett and his passenger along the route. During the altercation, Pritchett unlawfully shot and killed the victim.
Pritchett, who had previously been convicted of a felony punishable by more than one year imprisonment, was prohibited at the time from possessing a firearm.
The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
ATF Dallas Field Division Special Agent in Charge Jeffrey Boshek II said, “Our agents worked countless hours in the pursuit of justice for the victim and his family. ATF is committed to combatting violent crime in our communities no matter how long it takes. There is no amount of time in federal prison that will bring the victim back. Our thoughts and prayers are with the family as we know Pritchett’s time in federal prison won’t ease their pain.”
“I commend the work of law enforcement in compiling an extensive and thorough investigation which allowed the government to prosecute the defendant for unlawfully taking the victim’s life,” said United States Attorney Christopher J. Wilson.
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Pritchett will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Jarrod Leaman and Patrick Flanigan represented the United States.
St. Cloud Man Sentenced to More Than 24 Years in Prison for Enticement of A Child to Engage in Sexual Activity and Possession of Child Sexual Abuse Images and VideosRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Joshua Douglas Dodson (41, St. Cloud) to 24 years and 5 months in federal prison for enticing a minor to engage in sexual activity and possessing images and videos of children being sexually exploited. Dodson entered a guilty plea on November 13, 2023.
According to court documents, in November 2021, investigators received a cyber tip that Dodson had received child sexual abuse material on a social media platform. When the investigation became public knowledge, a child victim (“CV1”) came forward and told investigators that Dodson asked her to sit on his lap and attempted to touch her by putting his hands down her pants. CV1 stated that these events occurred in March 2020.
CV1 and her mother gave investigators authority to take over CV1’s phone and pose as CV1. During conversations with the investigators posing as CV1, Dodson sent multiple pictures of himself nude and a video of him masturbating. The conversation continued with Dodson asking for “naughty pics” of CV1’s private parts in exchange. The conversation then turned to a meeting to have sex on a day that CV1 was supposed to be in school. Dodson joked that CV1 had him “...talking and feeling like I’m 15 again.” In their text exchanges, Dodson warned CV1 to be cautious and delete their communications.
A meeting was agreed to between Dodson and the law enforcement officer posing as CV1 for November 7, 2022. When Dodson arrived as scheduled, an arrest team swarmed his truck and seized his cellphone. The phone contained child sex abuse images that appeared to have been taken using a hidden camera.
This case was investigated by the Federal Bureau of Investigation and the Osceola County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Noah P. Dorman
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springfield, Vermont Man Sentenced to 72 Months for Drug Conspiracy and Possession of Pipe BombRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 20, 2024, Anibal Castro, Jr., 35, of Springfield, Vermont, was sentenced by Chief United States District Judge Geoffrey W. Crawford to a term of 72 months’ imprisonment to be followed by a 3-year term of supervised release. Castro previously pleaded guilty to knowingly possessing a firearm, that is a destructive device, not registered to him in the National Firearms Registration and Transfer Record and conspiracy to distribute controlled substances.
According to court records, on April 6, 2022, while the Springfield Police Department and Vermont State Police were executing a state search warrant at Castro Jr.’s Valley Street residence, they discovered a ten and one-half inch pipe bomb. The pipe was made of aluminum with crimped metal ends covered in tape and had a pyrotechnic fuse extending out from inside the pipe. The words “BYE BYE !!” were written on the outside of the pipe. The pipe contained 650 BB pellets and black powder. The presence of BBs “further weaponized” the device. An examination by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that an explosion of the device would produce blast effects capable of causing property damage, injury or death to people or property nearby. Additionally, from March 2022 to May 5, 2022, Castro Jr. worked with others to distribute heroin, cocaine base, and fentanyl on Valley Street in Springfield and elsewhere. Also, Castro, Jr. armed himself with a firearm in connection with the drug trafficking. A case against Castro Jr.’s co-conspirators is still pending before the United States District Judge Christina Reiss.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the ATF, the Federal Bureau of Investigation, the Vermont Drug Task Force, the Drug Enforcement Administration, Homeland Security Investigations, the Springfield Police Department, the Vermont State Police and the Windsor County State’s Attorney’s Office.
The case was prosecuted by former Assistant U.S. Attorney Joe Perella and Assistant U.S. Attorney Zachary Stendig. Castro, Jr. was represented by Karen Shingler, 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 Justice.gov/PSN.
Russian Citizen Charged with Fraud, Selling Access to Victim Computer NetworksRead the Press Release
NEWARK, N.J. – A Russian citizen has been indicted for working as an “access broker” and selling unauthorized access to computer networks, including a victim company in New Jersey, U.S. Attorney Philip R. Sellinger, District of New Jersey.
Evgeniy Doroshenko, 31, aka “Eugene Doroshenko”, aka “FlankerWWH,” aka “Flanker,” of Astrkhan, Russia, is charged by indictment with one count of wire fraud and one count of fraud and related activity in connection with computers.
According to documents filed in this case and statements made in court:
From February 2019 to May 2024, Doroshenko devised a scheme whereby he gained unlawful access to victim computer systems and sold this access to others for a profit through a Russian language cybercrime forum located on the dark web. In January 2024, Doroshenko gained unauthorized access to the computer network of a victim company located in Bergen County, New Jersey. Doroshenko then offered to sell access to the victim company’s network to other cybercriminals via the cybercrime forum.
Cybercrime forums, like the one used by Doroshenko to sell access to victim computer networks, are online forums where cybercriminals promote and facilitate a wide variety of criminal activities including, among other activities, computer hacking and trafficking in stolen data.
The count of wire fraud carries a maximum punishment of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss resulting from the offense, whichever is greatest. The count of computer fraud carries a maximum punishment of five years in prison and a fine of $250,000, or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge, Aaron Hatley, Newark Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
doroshenko.indictment.pdfRock Rapids Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender pled guilty on May 17, 2024, in federal court in Sioux City.
Melvin Geovani Aguilar-Lopez, age 31, from Rock Rapids, Iowa, was convicted of one count of Failure to Update his Registration as required by the Sex Offender Registration and Notification Act, in violation of 18 U.S.C. § 2250(a).
In a plea agreement, Aguilar-Lopez admitted that he was required to register and update his registration under the Sex Offender Registration and Notification Act by reason of a conviction of Sexual Abuse in the Third Degree in the Iowa District Court for Lyon County Criminal No. FECR005748 on December 9, 2016. Aguilar-Lopez admitted he knew he needed to update his sex offender registration to reflect the fact he had been living in Rock Rapids for approximately 5 months and working in Lyon County for approximately 2 months.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Aguilar-Lopez was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Aguilar-Lopez faces a term of imprisonment of between 15 to 21 months, a $250,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Kevin Fletcher and was investigated by the Lyon County Sheriff’s Department, the Iowa Division of Criminal Investigations (Sex Offender Unit) and the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-04004.
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Richmond County man pleads guilty to a federal charge for bomb scare at Social Security officeRead the Press Release
AUGUSTA, GA: A Richmond County man entered a guilty plea to a federal charge related to a bomb threat targeting the Social Security Administration’s Augusta office.
Keyon Tishaye Dickens, 38, of Augusta, pled guilty to Using a Telephone to Make a Threat to Injure a Person or Damage a Building by Explosives, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The plea subjects Dickens to a potential sentence of up to 10 years in prison, and there is no parole in the federal system.
As described in the plea agreement, Dickens received a notice in September 2023 that the Social Security Administration intended to recoup overpayments to his Supplemental Security Income from future SSI checks. He called the Social Security Administration office in Augusta to complain and stated, “I’m going to shoot the office up and I’m going to blow it up. I haven’t decided yet what I’m going to do.”
Dickens later visited the office carrying a backpack and showed a note that read “I have a bomb” to a security officer. The officer notified the Richmond County Sheriff’s Office, and the building was locked down and evacuated. No bomb was found, and Richmond County deputies took Dickens into custody.
U.S. District Court Judge J. Randal Hall will schedule sentencing for Dickens upon completion of a pre-sentence investigation by U.S. Probation Services.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Social Security Administration Office of the Inspector General, and the Richmond County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney George J.C. Jacobs III.
Previously Convicted Sex Offender Pleads Guilty to Producing Child PornographyRead the Press Release
WASHINGTON – Victor Armando Simms, 54, a previously convicted sex offender who most recently lived in Southeast Washington D.C., pleaded guilty today to sexually abusing multiple young girls, recording many of the incidents, and amassing a library of 3,300 still images and over 250 videos depicting the sexual abuse of children. The plea agreement was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Chief David J. Scott of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Simms, aka “Stacey Patrick Simms,” pleaded guilty before U.S. District Judge Tanya S. Chutkan in Washington D.C. to First Degree Child Sexual Abuse with Aggravating Circumstances, two counts of Aggravated Sexual Abuse with Children, three counts of Sexual Exploitation of Children, and Possession of Child Pornography.
Judge Chutkan scheduled sentencing for October 22, 2024. Simms faces a sentencing range of 37 years up to lifetime in prison on the seven counts to which he plead guilty. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, law enforcement was called on January 15, 2023, when a young girl discovered explicit images of child sexual abuse on an iPad belonging to Simms. The same day, Simms was formally placed under arrest and charged by complaint with one count of first-degree child sexual abuse in D.C. Superior Court.
On January 17, 2023, the FBI’s Child Exploitation and Human Trafficking Task Force executed a search warrant at Simms’s residence and seized multiple electronic devices including an iPad and a one-terabyte external hard drive. In addition, law enforcement agents seized numerous pills and pill bottles, which were believed to be used to sedate the young victims. Many of the videos produced by Simms showed the young victims asleep during the sexual assaults.
The forensic examination of the external hard drive revealed 3300 still images and 250 videos depicting the sexual abuse of children, many of which included metadata indicating the date, time, and location where the file was initially produced. The metadata indicated that the minor female victims were sexually exploited and abused by Simms in Washington D.C., and at hotels in Maryland and Virginia.
According to court documents, Simms is a previously adjudicated sex offender. He was convicted in North Carolina in 2005 of indecent liberties with a six-year-old child and a felony child sex act.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents and detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case is being prosecuted by Assistant U.S. Attorneys Jocelyn Bond, Sarah Folse, and Caroline Burrell.
Ponte Vedra Beach Man Indicted for Fraud Scheme Involving COVID-19 Personal Protective EquipmentRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Elliott Davis II (35, Ponte Vedra Beach) with 16 counts of bank fraud, 12 counts of wire fraud, and 1 count of money laundering and theft of mail. If convicted, Davis faces up to 30 years in federal prison for each count of bank fraud, up to 20 years in prison for each count of wire fraud, up to 10 years in prison for the money laundering count, up to 5 years’ imprisonment on the theft of mail count, and payment of restitution to the victims he defrauded.
According to court documents, from March 2018 through 2022, Davis ran a purported medical supply company named Medisale, Inc. By using false representations, Davis enticed individuals and business entities to invest over $7 million in Medisale. He falsely represented to victim-investors that Medisale was making significant profits on the sale of COVID-19 Personal Protective Equipment (PPE). He claimed to have contact with CEOs at various hospitals and that Medisale had contracts with hospitals to sell large volumes of N95 masks and other PPE. As part of his sale’s pitch, Davis showed bank statement with large balances, claiming the money was from the sale of PPE.
In reality, Medisale had no such contracts and had no true revenue from the sale of PPE. Davis kited checks and conducted fraudulent ACH/wire transfers between multiple financial institutions to artificially inflate the apparent balances on his bank accounts. Utilizing victim-investor money, Davis paid off previous debts, paid other investors purported profits from the sale of PPE, and paid for personal expenses. This included Davis using victim-investor money to purchase a membership at a luxury club in Ponte Vedra Beach and spending more than $27,000 on custom clothing.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Deposit Insurance Corporation - Office of Inspector General, Florida Department of Law Enforcement, and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Oklahoma City Resident Sentenced for Theft in Indian Country and Failure to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Kelly Graham, age 26, of Oklahoma City, Oklahoma, was sentenced to 21 months’ imprisonment, with three years of supervised release, for one count of Failure to Register as Sex Offender, and a concurrent term of 15 months’ imprisonment, with three years of supervised release, for one count of Theft in Indian Country.
The charges arose from an investigation by the Muskogee County Sheriff’s Office and the United States Marshals Service.
On October 4, 2023, Graham pleaded guilty to one count of Theft in Indian Country, and one count of Failure to Register as a Sex Offender.
According to investigators, on January 26, 2023, Graham stole a fleet truck containing a GPS relay tracker from a Muskogee gas station. Muskogee deputies responding to the GPS location data discovered the truck stuck in the mud, and Graham attempting to attach a tow strap to the front bumper. Graham fled on foot. A K-9 unit tracked Graham and he was later arrested.
On September 13, 2023, Graham was indicted by a federal grand jury on one count of Failure to Register as a Sex Offender. In 2015, Graham was convicted of Rape, Second Degree, and was required to register as a sex offender. On April 4, 2022, Graham registered with the Cherokee County Sheriff's Office in Tahlequah, Oklahoma. At the time of registration, Graham was advised that he must notify law enforcement at least three days before any change of address. An investigation by U.S. Marshals revealed that between July 4, 2022, and March 21, 2023, Graham failed to report any change of address despite residing at various residences in and around Indian Country in the Eastern and Western Districts of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Graham was transferred into federal custody September 14, 2023, and will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Assistant United States Attorneys Joshua Satter and Richard J. Lorenz represented the United States.
Ohio Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Antione Terren Glanton, also known as “Twan” and “T,” 46, of Columbus, Ohio, was sentenced today to seven years in prison, to be followed by three years of supervised release, for distribution of methamphetamine and cocaine base, also known as “crack.”
According to court documents and statements made in court, on October 27, 2022, Glanton sold approximately 27.5 grams of methamphetamine and a quantity of crack to a confidential informant in the area of the 2500 block of Washington Boulevard in Huntington. Glanton admitted to the transaction and to arranging it with the confidential informant beforehand.
Glanton further admitted to selling approximately 2.7 grams of crack to the confidential informant in the area of the 200 block of Olive Street in Huntington on October 24, 2022, and to selling approximately 2.9 grams of crack and 1.3 grams of fentanyl to the confidential informant on the 2500 block of Washington Boulevard in Huntington on January 5, 2023.
On January 11, 2023, law enforcement officers executed a search warrant at Glanton’s Marcum Terrace residence in Huntington and found approximately 15 grams of crack, 32 grams of fentanyl, a quantity of heroin, digital scales, fentanyl test strips and $501. Officers also found a loaded Glock 19 9mm pistol and a loaded Smith & Wesson 9mm pistol in Glanton’s possession. Glanton admitted that he possessed the seized crack, fentanyl and heroin and intended to distribute the controlled substances.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney L. Finney and Lesley C. Shamblin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-113.
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North Chesterfield insurance agent sentenced for defrauding employer and clientsRead the Press Release
RICHMOND, Va. – A North Chesterfield insurance and annuities agent was sentenced today to one year and three months years in prison for mail fraud after swindling his employer and clients in multiple schemes.
According to court documents, from August 2017 through March 2020, Joseph O’Carroll III, 52, scammed his employer for commissions and incentives by writing insurance policies for individuals without their consent or knowledge.
O’Carroll used the personal identifying information (PII) of clients, including their names, dates of birth, social security numbers, and bank account numbers, to apply for fraudulent life insurance policies in their names and forged their signatures on the applications. O’Carroll created and maintained email addresses purportedly belonging to his clients, which he then listed on the insurance applications to facilitate communications with the insurance companies. For one client, O’Carroll listed his own BB&T checking account from which the issuing insurance company was to automatically withdraw the premiums on applications for the policies. For other clients, O’Carroll listed the clients’ bank accounts. When the policies were issued, the insurance companies began withdrawing and attempting to withdraw premium payments from the listed bank accounts. While attempts to withdraw payments from O’Carroll’s bank account were unsuccessful, resulting in the cancellation of those policies, premiums were withdrawn from other client accounts, resulting in thousands of dollars being taken from them.
On at least one policy, O’Carroll listed himself as the beneficiary. During an Aug. 4, 2020, interview with the Virginia State Corporation Commission’s Bureau of Insurance, O’Carroll admitted that the client was “out of it” at the time due to the death of the client’s wife, and ultimately admitted that he wrote that policy and others to assist himself in winning a 2019 incentive trip to the Riviera Maya in Mexico from his employer.
In addition to applying for fraudulent life insurance policies in that client’s name, O’Carroll obtained most of the balance of an Employee Stock Ownership Plan (“ESOP”) account belonging to the client with the promise to reinvest the funds in another qualified retirement account. After gaining access to the client’s ESOP account portal, a request was submitted directing the ESOP servicer to remit two checks on December 31, 2019: one to Equitable Financial Group at O’Carroll’s home address in the amount of $57,659.28, and a second in the amount of $4,627.92 to the client’s home address. O’Carroll deposited the $57,629.28 check into a bank account he controlled, and kept and used the funds for his own personal expenses without the client’s knowledge or consent.
O’Carroll pled guilty on Jan. 18.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Ajay Lall, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge David J. Novak.
The U.S. Attorney thanks the Virginia State Corporation Commission’s Bureau of Insurance for their assistance in the investigation.
Assistant U.S. Attorneys Kashan Pathan and Mike C. Moore and former Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
The Central Virginia Financial Crimes Task Force, created in 2022, is a partnership between federal, state, and local law enforcement agencies and representatives of local financial institutions. Co-chaired by the Richmond Field Office of the United States Secret Service and the Washington Division of the United States Postal Inspection Service, the Task Force utilizes the knowledge and experience of its many partners to develop intelligence and pursue investigations into crimes that target or involve financial institutions located throughout the Central Virginia region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-3.
North Carolina Woman Pleads Guilty to Embezzling More than a Half Million Dollars from Farwell Funeral Service in NashuaRead the Press Release
CONCORD – A North Carolina woman pleaded guilty today in federal court to charges arising out of her embezzlement of funds from her previous employer, Farwell Funeral Service in Nashua, U.S. Attorney Jane E. Young announces.
LaSaundra Simmons, 51, pleaded guilty to one count of wire fraud. U.S. District Court Joseph Laplante scheduled sentencing for August 29, 2024.
Simmons worked as the bookkeeper for Farwell Funeral Service, Inc. for several years. Starting in 2015, and continuing until it was discovered in January 2023, Simmons employed a scheme to embezzle funds from the company. On more than 100 occasions, she either made unauthorized wire transfers of funds from the funeral home’s bank account to her own account, or drafted unauthorized checks which she deposited by electronic wire transfer into her own account. She would often describe these checks as “commissions” or “consulting fees.” She embezzled more than $500,000 over the course of the scheme.
The charging statute provides a sentence of no greater than 20 years in prison, 3 years of supervised release, and a fine of $250,000. Restitution is mandatory. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation and the Nashua Police Department led the investigation. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
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Mission stash house operator imprisonedRead the Press Release
McALLEN, Texas – A 37-year-old man has been sentenced for harboring aliens, announced U.S. Attorney Alamdar S. Hamdani.
Miguel Angel Nunez-Urrea pleaded guilty Nov. 30, 2023.
Chief U.S. District Judge Randy Crane has now ordered Nunez-Urrea to serve 41 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional testimony that the firearms Nunez-Urrea possessed were capable of accepting large capacity magazines. In handing down the sentence, Judge Crane noted the effect these actions had on Nunez-Urrea’s family.
On Sept. 26, 2023, authorities encountered a group of undocumented aliens near Falfurrias. The investigation led to a stash house in Mission where Nunez resided with his wife. They also believed firearms to be in the home.
On Oct. 11, 2o23, law enforcement conducted a search at the couple’s residence in the early hours of the day. At that time, they discovered seven undocumented aliens - Nunez-Urrea, his wife and five others who were in the attic above a child’s bedroom.
Authorities also found a loaded pistol, a .22 caliber rifle and high-capacity magazines within the couple’s bedroom, all of which belonged to Nunez-Urrea.
Further investigation revealed text messages detailing the undocumented migrants were to be transferred to the Houston area after staying with the couple.
Nunez-Urrea’s wife, Kenia Anguiano-Sanchez, 30, a Mexican national, also pleaded guilty and was previously sentenced.
Nunez-Urrea and Anguiano-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.
Mexican National Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DEL RIO, Texas – A Mexican national was sentenced in a federal court in Del Rio to 121 months in prison for access with intent to view child pornography.
According to court documents, Felipe De Jesus Solis-Rivera, 32, of Piedras Negras, Coahuila, Mexico was reported for taking photos of a man in the restroom of an Eagle Pass store on July 14, 2019. Solis-Rivera voluntarily allowed authorities to look at the contents of his phone. Eagle Pass Police discovered videos and photos depicting child sexual abuse material.
Solis-Rivera was arrested July 14, 2019 and transferred into federal custody July 23, 2019. He pleaded guilty July 10, 2021.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The HSI and Eagle Pass Police Department investigated the case.
Assistant U.S. Attorneys Sarah Spears, Rex Beasley and Antonio Franco Jr. prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Memphis Man Sentenced to 12 Years for Possession of Methamphetamine and a Firearm in a Stolen VehicleRead the Press Release
Memphis, TN – A federal judge recently sentenced a Memphis man to 12 years in federal prison for being a convicted felon in possession of a firearm and methamphetamine. United States Attorney Kevin G. Ritz announced the sentence today.
According to information presented in court, on October 27, 2022, Memphis Police Department observed a black Dodge Charger driven by Jeffery Cervero, 27, in the parking lot of the Boulevard Apartments in the Hickory Hill community. The Dodge Charger was stolen, and it was bearing tags registered to a second vehicle previously stolen from the Dallas-Fort Worth Airport. Officers pulled in front of the Dodge Charger, but Cervero sped away. He was quickly disabled after he struck a MPD vehicle and a large rock.
Cervero ran away from the vehicle but was caught after a brief foot pursuit. In Cervero’s pants, officers located a Glock 9mm pistol equipped with a Glock switch. In the vehicle, officers recovered a backpack with 46 grams of actual methamphetamine, digital scales, and assorted pills. MPD also located $14,432 in cash, approximately 4.3 kg of vacuum sealed marijuana, a Glock 9mm, a Glock .45, a 5.56 caliber rifle, 5 iPhones, and Cervero’s ID in the stolen vehicle. One of the passengers was also apprehended attempting to run from the disabled vehicle.
On May 15, 2024, Cervero pled guilty to possession with intent to distribute 5 grams or more of actual methamphetamine, and possession of a Glock 9mm in furtherance of drug trafficking and was sentenced. United States District Court Judge Thomas L. Parker sentenced Cervero to 144 months incarceration with the Bureau of Prisons, followed by 4 years of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives - Memphis Office and the Memphis Police Department. The Drug Enforcement Administration - Memphis Office and Nashville Laboratory, the Oklahoma Highway Patrol, and ATF Oklahoma provided additional assistance.
United States Attorney Ritz thanked Assistant United States Attorney Gregory D. Allen, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Mason County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – James Franklin Will III, 42, of Point Pleasant, was sentenced today to three years and nine months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on June 15, 2023, law enforcement officers encountered Will while responding to reports of a suspicious person at a Point Pleasant residence. The residents told officers that Will had entered their home with two firearms. Officers recovered a loaded Sig Sauer AR-15 .223-caliber rifle and a Smith & Wesson .22-caliber revolver at the residence. Will admitted to possessing the firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Will knew he was prohibited from possessing a firearm because of his prior felony convictions for attempt to commit a felony on December 7, 2015, and conspiracy on November 13, 2017, both in Mason County Circuit Court, and for unlawful possession of a deadly weapon by a felon in Wood County Circuit Court on April 16, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Point Pleasant Police Department and the Mason County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor 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.
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. 3:23-cr-148.
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Man Arrested for Producing, Distributing, and Possessing AI-Generated Images of Minors Engaged in Sexually Explicit ConductRead the Press Release
A Wisconsin man was arrested last week on criminal charges related to his alleged production, distribution, and possession of AI-generated images of minors engaged in sexually explicit conduct and his transfer of similar sexually explicit AI-generated images to a minor.
“Technology may change, but our commitment to protecting children will not,” said Deputy Attorney General Lisa Monaco. “The Justice Department will aggressively pursue those who produce and distribute child sexual abuse material—or CSAM—no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and we will hold accountable those who exploit AI to create obscene, abusive, and increasingly photorealistic images of children.”
According to court documents, Steven Anderegg, 42, of Holmen, allegedly used a text-to-image generative artificial intelligence (GenAI) model called Stable Diffusion to create thousands of realistic images of prepubescent minors. Many of these images depicted nude or partially clothed minors lasciviously displaying or touching their genitals or engaging in sexual intercourse with men. Evidence recovered from Anderegg’s electronic devices revealed that he generated these images using specific, sexually explicit text prompts related to minors, which he then stored on his computer.
“As alleged, Steven Anderegg used AI to produce thousands of illicit images of prepubescent minors, and even sent sexually explicit AI-generated images to a minor,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s announcement sends a clear message: using AI to produce sexually explicit depictions of children is illegal, and the Justice Department will not hesitate to hold accountable those who possess, produce, or distribute AI-generated child sexual abuse material.”
Additionally, Anderegg allegedly communicated with a 15-year-old boy and described how he used Stable Diffusion to convert his text prompts into images of minors. Anderegg also allegedly used Instagram direct message to send the boy several GenAI images of minors lasciviously displaying their genitals. Anderegg came to the attention of law enforcement through a CyberTip from the National Center for Missing and Exploited Children (NCMEC) after Instagram reported Anderegg’s account to NCMEC for distributing these images.
Anderegg remains in federal custody pending a detention hearing scheduled for May 22.
A federal grand jury in the Western District of Wisconsin returned an indictment on May 15 charging Anderegg with producing, distributing, and possessing obscene visual depictions of minors engaged in sexually explicit conduct and transferring obscene material to a minor under the age of 16. If convicted of all four counts alleged in the indictment, he faces a total statutory maximum penalty of 70 years in prison and a mandatory minimum of five years in prison.
The Wisconsin Department of Justice’s Division of Criminal Investigation is investigating the case.
Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) is prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Wisconsin.
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 Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Government’s Brief in Support of DetentionLowell Man Sentenced to Prison for Gun TraffickingRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Boston for firearms trafficking charges.
Isael Rodriguez, 29, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and three years of supervised release. In January 2024, Rodriguez pleaded guilty to one count of dealing in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer.
In January 2021 and June 2021, Rodriguez purchased a dozen Glock pistols from a licensed dealer for $500 each, falsely claiming that he was purchasing them for himself. Rodriguez then resold the firearms for profit to individuals in Massachusetts. Rodriguez is not a licensed importer, manufacturer, or dealer and Glock firearms are only allowed to be sold to active law enforcement officers.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Boston Police Commissioner Michael Cox; Lowell Superintendent of Police Gregory C. Hudon; Brookline Police Chief Jennifer M. Paster; and Brockton Police Chief Brenda I. Perez made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lincoln Man Sentenced to 60 Years for Production and Possession of Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Amikhet En Maati, also known as Warren Coker, 53, of Lincoln, Nebraska, was sentenced on May 20, 2024, in federal court in Lincoln for two counts of production of child pornography concerning two separate victims, two counts of committing production of child pornography while on the Sex Offender Registry, and one count of possession of child pornography. Senior United States District Judge John M. Gerrard sentenced Maati to a total of 720 months’ (60 years’) imprisonment. There is no parole in the federal system. He was further sentenced to a lifetime of supervised release following his release from prison. Additionally, Maati is ordered to pay $6,000 to a federal fund established to assist victims of child exploitation crimes.
On September 9, 2022, Lincoln Police Department (LPD) received a report regarding the sexual abuse of a minor female where Maati was the subject. A search of the residence was conducted and a cellphone belonging to Maati was seized. Around that same time, LPD determined that Maati was also the subject of a recent tip made to the FBI. A forensic examination was completed on Maati’s cellphone. Law enforcement discovered multiple child exploitation videos of minor Victim 1 and one video of minor Victim 2. Maati uploaded and distributed these videos to a cloud-storage website where his friend, who was another registered sex offender, had access to them. Further review of Maati’s cloud-storage account revealed additional child exploitation videos of each of the victims.
Maati was charged in April 2023 and proceeded to a bench trial before Senior District Judge Gerrard in February of this year. He was found guilty on all counts.
Maati was previously convicted on or about January 2, 1997, for Attempted Sex Assault of a Child in Douglas County District Court, Nebraska, and on or about July 1, 1999, for one count of Second-Degree Sexual Assault and one count Sexual Assault of a Child in Sarpy County District Court, Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.
Life sentence imposed for murder on the Wind River Indian ReservationRead the Press Release
Francis James Acebo Jr., age 34, of Arapaho, Wyoming, was sentenced to life imprisonment for first-degree murder and causing death with a firearm; followed by a 10-year term of imprisonment for discharging a firearm during and in relation to a crime of violence. U.S. District Court Judge Alan B. Johnson imposed the sentence on May 16.
Acebo was convicted by a federal jury on Feb. 16. The trial lasted five days and was held in Cheyenne before Judge Johnson. The defendant had been indicted by a grand jury and pleaded not guilty to the charges in May 2023.
According to evidence presented at trial and witnesses to the crime, Acebo entered the victim’s Riverton residence in the early morning of Mar. 25, 2023, and shot the victim in the back of the head. He fled the scene and later turned himself in to the Fremont County Sheriff’s Office.
“The successful prosecution of homicides and other violent crimes on the Wind River Indian Reservation is one of our highest priorities,” said U.S. Attorney Nicholas Vassallo. “Mr. Acebo’s life sentence is the result of a well-coordinated investigation by the FBI and the Bureau of Indian Affairs and this office’s commitment to obtaining a first-degree murder conviction.”
“FBI Denver takes seriously all major crimes on the Wind River Indian Reservation, with murders like this one getting our full attention,” said Special Agent in Charge Mark Michalek. “This sentence demonstrates the FBI's steadfast commitment to working with our tribal partners to solve MMIP cases and promote public safety on reservations across the country.”
Special agents with the Bureau of Indian Affairs and the FBI investigated this crime. Assistant U.S. Attorneys Kerry J. Jacobson and Timothy J. Forwood prosecuted the case.
Case No. 23-CR-00081
Leader of Sophisticated Sinaloa Cartel Money Laundering Organization Sentenced to 120 MonthsRead the Press Release
NEWS RELEASE SUMMARY – May 20, 2024
SAN DIEGO – Luis Reinaldo Ramirez of Mesa, Arizona, was sentenced in federal court today to 120 months in prison for his role as a leader in a transnational criminal organization that laundered $16.5 million dollars in narcotics proceeds for the Sinaloa Cartel. Ramirez was also sentenced for his role in an extortion plot.
Ramirez was one of 12 people indicted on charges ranging from money laundering, narcotics trafficking, and extortion as part of a two-year investigation by FBI and DEA. The investigation resulted in the takedown of the organization that laundered millions of dollars for the Sinaloa Cartel, and the rescue of two victims of an extortion plot in February of 2021. To date the investigation has resulted in the seizure of more than $1.3 million in illicit assets.
According to his plea agreement, Ramirez played a key role in the day-to-day operations of the organization. He created a network of incorporated shell companies in Wyoming that were used to launder illicit bulk cash. Ramirez directed and facilitated employees of the money laundering organization to travel to cities throughout the United States to pick up bulk cash belonging to narcotics traffickers. The employees picked up the bulk cash in Chicago, Omaha, Boston, New York City, Baltimore, Charlotte, and Philadelphia.
Narcotics traffickers delivered bulk cash in amounts of up to $200,000 to the employees in hotel rooms and parking lots. Following the delivery of the illegal monies, the criminal organization laundered the funds through the shell companies and transferred the monies to bank accounts in Mexico. To demonstrate the drug money connection, in November 2020 the FBI conducted surveillance on a bulk cash delivery from Idsel Valenzuela and Sugey Caro Salazar in Chicago. The operation led to a subsequent search of Caro and Valenzuela’s home and vehicle, which led to the discovery and seizure of 368 pounds of crystal methamphetamine, 10 kilograms of heroin, and $97,390 in bulk cash.
Earlier this year, several of Ramirez’s co-defendants were sentenced to prison, including Cristian Amaya Nava, 60 months; Christian Cruz Polanco, 30 months; Sugey Caro Salazar, 48 months; and Idsel Valenzuela, Cheliann Rivera Vazquez and Kimberly Reyes to probationary sentences. Additional co-defendants — Hector Vizcaino Moreno, Ricardo Torres, and Luis Armando Avila — are scheduled to be sentenced in the coming months. Three of Ramirez’s indicted co-defendants remain fugitives in Mexico, including the alleged former Mexico-based leader of the organization, Enrique Esparragoza Rosas of Culiacan, Sinaloa, Mexico.
The FBI’s investigation, in partnership with the United States Attorney’s Office, pursued an aggressive strategy of asset seizures in order to disrupt the money laundering organization’s activities. In total, dozens of bank accounts used by the organization were targeted, resulting in the seizure of more than $1 million from U.S.-based bank accounts. Agents also conducted operations that resulted in the seizure of $197,430 in bulk cash and a Volvo tractor-trailer that was purchased with drug money. Agents also seized illicit funds that were used to purchase aircraft and aircraft engines for export to Mexico in several instances.
The FBI’s efforts also resulted in a successful rescue of two victims who were being extorted by the money laundering organization in February 2021. Prior to the extortion, one of the victims, an employee of the money laundering organization, began stealing illicit funds from a bank account he controlled for the organization. In February 2021, when Esparragoza and Ramirez learned of the theft, they conspired to threaten and extort the pair to repay the funds. Esparragoza sent Cristian Amaya-Nava to threaten the men and their families. Amaya-Nava then drove the two men around Imperial and San Diego counties to collect money from accounts they controlled. Esparragoza also directly threatened the men and their families during several phone conversations that day, telling them that two truckloads of men from Tijuana would “take care of them” if they did anything stupid.
Once the FBI learned of the ongoing extortion, they began tracking the victim’s and Amaya Nava’s movements. FBI agents coordinated with the National City Police Department to conduct a traffic stop wherein Amaya Nava was arrested and the two victims were rescued.
“In cases like this we strike at the life blood of the drug trafficker,” said U.S. Attorney Tara McGrath. “Money launderers provide the means for cartels to produce and import their deadly poison into the United States.”
“The sentencing of Mr. Ramirez is a major step toward dismantling the Sinaloa Cartel,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We remain committed to working collaboratively with our law enforcement partners to disrupt and dismantle organized crime activity not only in San Diego, but wherever our investigations may lead.”
“There is no place for drug trafficking in San Diego,” said DEA Acting Special Agent in Charge Anthony Chrysanthis. “Drug trafficking is a violent crime that harms our citizens and weakens our communities. The DEA and our partners will continue to be vigilant in dismantling these operations.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being prosecuted by Assistant U.S. Attorney Joshua Mellor.
DEFENDANTS Case Number 22cr2185-BAS
Luis Reinaldo Ramirez Age: 41 Mesa, Arizona
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Organized Crime Drug Enforcement Task Forces
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Laguna Man Pleads Guilty to Three Counts of Second-Degree MurderRead the Press Release
ALBUQUERQUE – A Laguna man has pleaded guilty in federal court to charges stemming from a fatal DWI crash on Laguna Pueblo in 2022 that killed three members of the same family.
In his plea agreement, Cody Allen Charlie, 37, an enrolled member of the Pueblo of Acoma, admitted that on August 7, 2022, he was driving drunk, traveling at 116 miles per hour while also using his cell phone when he crashed into another vehicle on Interstate 40, near mile marker 130.
The impact caused the other vehicle to veer off the interstate, onto the shoulder where it rolled over. All three occupants of that vehicle—identified as John Doe 1, John Doe 2, and Jane Doe—were killed in the crash.
Instead of rendering aide, Charlie fled the scene on foot.
The Court ordered that Charlie remain in custody pending sentencing, which has not been scheduled. At sentencing, Charlie faces between 10 and 20 years in prison. Upon his release from prison, Charlie will be subject to up to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department and New Mexico State Police. Assistant U.S. Attorneys Brittany DuChaussee and Zachary C. Jones are prosecuting the case.
View the Plea Agreement# # #