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Monday 20 May 2024
Justice Department Sues Two Organizations and Seven Individuals for Physically Obstructing Access to Reproductive Health Services in Violation of the FACE ActRead the Press Release
The Justice Department filed a federal lawsuit today in the Northern District of Ohio against two organizations and seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act prohibits anyone from using force, threats of force or physical obstruction against any person because they are seeking or providing reproductive health services.
The complaint alleges that the defendants, two organizations – Citizens for a Pro Life Society and Red Rose Rescue – and seven individuals – Laura Gies, Lauren Handy, Clara McDonald, Monica Miller, Christopher Moscinski, Jay Smith and Audrey Whipple – violated the FACE Act on June 4 and 5, 2021, by engaging in physical obstruction at two Ohio reproductive health facilities to prevent the facilities from providing, and patients from receiving, reproductive health care services. The complaint seeks compensatory damages, monetary penalties and injunctive relief as provided by the FACE Act.
“Obstructing people from accessing reproductive health care and physically obstructing providers from offering it are unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Congress passed the FACE Act 30 years ago this month in response to acts of violence, threats of violence and physical obstruction at reproductive health clinics in our country. The Civil Rights Division is committed to enforcing federal law to protect the rights of those who seek and those who provide access to reproductive health services.”
“Federal and state laws protect access to reproductive health care services,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Individuals have the right to access facilities in Ohio to make decisions about their own bodies, health and futures, in consultation with health care providers, free from force, threats of force, intimidation or physical obstruction. Our office remains committed to enforcing the FACE Act to protect these important rights of both individuals and providers, whether or not the services provided include abortion care options, as they do here. We encourage anyone with information about potential FACE Act violations to contact our office.”
The Civil Rights Division's Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio are handling the case.
Civil rights complaints can be submitted online at civilrights.justice.gov.
Anyone in imminent danger should call 911 or local police. Contact your local FBI field office by calling 1-800-CALL-FBI (or 1-800-225-5324) or via tips.fbi.gov.
Anyone in the Northern District of Ohio may report potential FACE Act or other civil rights violations by calling the Civil Rights Hotline at 855-365-2485.
Justice Department Sues Two Organizations and Seven Individuals for Physically Obstructing Access to Reproductive Health Services in Violation of the FACE ActRead the Press Release
The Justice Department filed a federal lawsuit today in the Northern District of Ohio against two organizations and seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act prohibits anyone from using force, threats of force or physical obstruction against any person because they are seeking or providing reproductive health services.
The complaint alleges that the defendants, two organizations – Citizens for a Pro Life Society and Red Rose Rescue – and seven individuals – Laura Gies, Lauren Handy, Clara McDonald, Monica Miller, Christopher Moscinski, Jay Smith and Audrey Whipple – violated the FACE Act on June 4 and 5, 2021, by engaging in physical obstruction at two Ohio reproductive health facilities to prevent the facilities from providing, and patients from receiving, reproductive health care services. The complaint seeks compensatory damages, monetary penalties and injunctive relief as provided by the FACE Act.
“Obstructing people from accessing reproductive health care and physically obstructing providers from offering it are unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Congress passed the FACE Act 30 years ago this month in response to acts of violence, threats of violence and physical obstruction at reproductive health clinics in our country. The Civil Rights Division is committed to enforcing federal law to protect the rights of those who seek and those who provide access to reproductive health services.”
“Federal and state laws protect access to reproductive health care services,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Individuals have the right to access facilities in Ohio to make decisions about their own bodies, health and futures, in consultation with health care providers, free from force, threats of force, intimidation or physical obstruction. Our office remains committed to enforcing the FACE Act to protect these important rights of both individuals and providers, whether or not the services provided include abortion care options, as they do here. We encourage anyone with information about potential FACE Act violations to contact our office.”
The Civil Rights Division's Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio are handling the case.
Civil rights complaints can be submitted online at civilrights.justice.gov.
Anyone in imminent danger should call 911 or local police. Contact your local FBI field office by calling 1-800-CALL-FBI (or 1-800-225-5324) or via tips.fbi.gov.
Anyone in the Northern District of Ohio may report potential FACE Act or other civil rights violations by calling the Civil Rights Hotline at 855-365-2485.
Justice Department Secures Award Against Owner of Massachusetts Sober Homes for Sexual HarassmentRead the Press Release
Peter McCarthy, 51, of Lynn, Massachusetts, the owner of Steps to Solutions Inc., a group of residential sober homes, was found liable following a five-day jury trial. In August 2021, the U.S. Attorney’s Office for the District of Massachusetts and the Justice Department’s Civil Rights Division filed a lawsuit alleging that McCarthy subjected female tenants to sexual harassment in violation of the Fair Housing Act.
“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the survivors who came forward to testify about the heinous conduct that they experienced. This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.”
“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads. Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be denied housing because of their refusal to submit to unwanted sexual harassment and intimidation,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants”
Since at least 2012 through 2021, McCarthy — the registered agent and sole officer of Steps to Solutions Inc. — sexually harassed residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges or waiving security deposits in exchange for engaging in sex acts or sexually explicit photographs; and making unwanted sexual comments.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered over $16.4 million for victims of such harassment.
Individuals who have information about this case can contact the U.S. Attorney’s Office for the District of Massachusetts by calling 617-748-3274, emailing [email protected] or visiting the case webpage.
Assistant U.S. Attorneys Gregory Dorchak, Michelle Leung and Eve Piemonte for the District of Massachusetts handled the matter, along with the Justice Department’s Civil Rights Division’s Housing Section.
Justice Department Secures $3.8 Million Award Against Owner and Operator of Massachusetts Sober Homes for Sexual HarassmentRead the Press Release
BOSTON – The owner and operator of Steps to Solutions, Inc., a group of residential sober homes, has been found liable by a federal jury in Boston for sexual harassment of tenants.
Peter McCarthy, 51, of Lynn was found liable on May 17, 2024 for sexual harassment and retaliation in violation of the Fair Housing Act. Following a five-day trial, a federal jury awarded $3.8 million in damages to seven identified victims who rented from McCarthy. In August 2021, the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division filed a lawsuit alleging that McCarthy subjected tenants to sexual harassment in violation of the Fair Housing Act. The jury award includes compensatory damages for the emotional harms the victims suffered as a result of McCarthy’s conduct as well as punitive damages to punish the defendant. The Justice Department also intends to seek a civil penalty against McCarthy to vindicate the public interest and a court order for injunctive relief to prevent McCarthy from, among other things, managing Steps to Solutions sober homes or having contact with residents or prospective tenants.
“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads. Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be subjected to unwanted demands for sex acts from their landlord,” said Acting United States Attorney Joshua S. Levy. “This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants.”
“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the survivors who came forward to testify about the heinous conduct that they experienced. This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.”
Since at least 2009 through 2021, McCarthy — the registered agent and sole officer of Steps to Solutions, Inc. — sexually harassed residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges, or waiving security deposits in exchange for engaging in sex acts or sexually explicit photographs; and making unwanted sexual comments.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered over $16.4 million for victims of such harassment.
Individuals who have information about this case can contact the U.S. Attorney’s Office by calling 617-748-3274, by e-mailing [email protected] or by visiting the case webpage.
Acting U.S. Attorney Levy and AAG Clarke made the announcement today. Assistant U.S. Attorneys Gregory Dorchak, Michelle Leung and Eve Piemonte of the Civil Division handled the matter along with the Housing Section of the Justice Department’s Civil Rights Division.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2016 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Justice Department Leadership Honors Service and Sacrifice of Nation’s Law Enforcement for Police WeekRead the Press Release
Last week, in recognition of National Police Week, Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Acting Associate Attorney General Benjamin C. Mizer joined law enforcement partners to honor those who made the ultimate sacrifice to our nation.
According to the FBI’s most recent statistics, 60 law enforcement officers were killed in the line of duty in 2023. As of April 29, 19 law enforcement officers have lost their lives in the line of duty this year.
In 1962, President John F. Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the week in which May 15 falls as National Police Week. Established by a joint resolution of Congress in 1962, National Police Week is a collaborative effort of many organizations dedicated to honoring the service and sacrifice of America’s law enforcement community. This year, police week ran May 12 – 18.
Attorney General Garland, Deputy Attorney General Monaco, and Acting Associate Attorney General Mizer began the week by visiting the National Law Enforcement Memorial and laying a wreath in honor of the men and women who have died in the line of duty.
Throughout the week, to recognize not only Justice Department employees who died in the line of duty but also their surviving family members and friends, Attorney General Garland and Deputy Attorney General Monaco attended memorial services for the Justice Department’s four law enforcement components: the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service (USMS), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Principal Associate Deputy Attorney General Marshall Miller also delivered remarks at a memorial service to honor fallen federal correctional officers from the Federal Bureau of Prisons, during National Correctional Officers Week, which ran May 5 – 11.
Attorney General Garland and Deputy Attorney General Monaco also attended the Fraternal Order of Police (FOP)’s National Peace Officers’ Memorial Service. Additionally, Attorney General Garland attended the National Law Enforcement Officers Memorial Fund’s annual candlelight vigil honoring the officers who lost their lives over the past year, where the Attorney General joined senior officials to read the names of the fallen.
On Thursday, Attorney General Garland, Deputy Attorney General Monaco, and Acting Associate Attorney General Mizer also convened the Justice Department’s law enforcement components and external law enforcement associations with whom they regularly meet to discuss the Justice Department’s continued partnership with state and local law enforcement.
Justice Department Announces Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
The Justice Department today announced an important new resource for prosecutors. The Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims, 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.
“When investigating and prosecuting the heinous crimes of sexual assault and domestic violence, prosecutors must pursue justice in a manner that does not retraumatize victims and survivors,” said Attorney General Merrick B. Garland. “This framework for prosecutors reflects the Justice Department’s commitment to strengthening our collective response to sexual assault and domestic violence, and to setting the standard for how prosecutors should respond to victims and survivors.”
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 beyond a reasonable doubt. This guide addresses that phenomenon by discussing: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) the fundamental importance of prosecutors, investigators, and victim specialists working together and meeting with victims; (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.
“Achieving justice for victims and survivors of sexual assault and domestic violence is one of the Department’s highest priorities,” said Deputy Attorney General Lisa Monaco. “This guide provides a framework that we encourage prosecutors throughout the country to use when evaluating, investigating, and prosecuting these critically important cases.”
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. The principles set forth in this guide are designed to encourage and assist prosecutors of all levels of experience to handle cases involving sexual assault and domestic violence. 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.
“The Justice Department is committed to strengthening the prosecution of sexual assault and domestic violence crimes and ensuring a trauma-informed approach to working with victims,” said Acting Associate Attorney General Benjamin C. Mizer. “This guide provides a practical, accessible framework that prosecutors can use when evaluating, investigating, and prosecuting these crimes. We thank everyone who contributed to this guide for sharing their expertise and experience and for their years of dedicated work to address and combat 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 Director Rosie Hidalgo of the Justice Department’s Office on Violence Against Women (OVW). “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.”
In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Justice Department Announces Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
WASHINGTON – The Justice Department today announced an important new resource for prosecutors. The Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims, 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.
“When investigating and prosecuting the heinous crimes of sexual assault and domestic violence, prosecutors must pursue justice in a manner that does not retraumatize victims and survivors,” said Attorney General Merrick B. Garland. “This framework for prosecutors reflects the Justice Department’s commitment to strengthening our collective response to sexual assault and domestic violence, and to setting the standard for how prosecutors should respond to victims and survivors.”
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 beyond a reasonable doubt. This guide addresses that phenomenon by discussing: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) the fundamental importance of prosecutors, investigators, and victim specialists working together and meeting with victims; (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.
“Achieving justice for victims and survivors of sexual assault and domestic violence is one of the Department’s highest priorities,” said Deputy Attorney General Lisa Monaco. “This guide provides a framework that we encourage prosecutors throughout the country to use when evaluating, investigating, and prosecuting these critically important cases.”
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. The principles set forth in this guide are designed to encourage and assist prosecutors of all levels of experience to handle cases involving sexual assault and domestic violence. 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.
“The Justice Department is committed to strengthening the prosecution of sexual assault and domestic violence crimes and ensuring a trauma-informed approach to working with victims,” said Acting Associate Attorney General Benjamin C. Mizer. “This guide provides a practical, accessible framework that prosecutors can use when evaluating, investigating, and prosecuting these crimes. We thank everyone who contributed to this guide for sharing their expertise and experience and for their years of dedicated work to address and combat 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 Director Rosie Hidalgo of the Justice Department’s Office on Violence Against Women (OVW). “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.”
In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Indictment Charges Tobacco Wholesaler with Operating Tax Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a 10-count indictment charging KHAWAR M. KHOKHAR, 35, of Ellington, with offenses stemming from an alleged tax fraud scheme.
The indictment was returned on May 15, 2024. Khokhar appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford, pleaded not guilty, and was released on a $100,000 bond.
As alleged in the indictment and statements made in court, Khokhar operated Smokin’ Wholesale LLC, a Connecticut-licensed tobacco wholesale business that acquired smokeless tobacco and other tobacco products from out-of-state distributors, including businesses in Pennsylvania and Illinois, and sold the products to retail merchants in Connecticut. Between approximately May 2017 and June 2019, Khokhar and Smokin’ Wholesale purchased approximately $2 million in tobacco products from the distributors, but failed to report accurately to the Connecticut Department of Revenue Services the value of the products imported into the state, and failed to pay to the state the associated tobacco taxes owed. Through this scheme, Khokhar and others caused Connecticut to suffer a tax loss of approximately $1 million.
The indictment charges Khokhar with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years; eight counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; and one count of engaging in an illegal monetary transaction, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Postal Inspection Service and the Connecticut Department of Revenue Services, Criminal Investigations Division. This case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Indian National Pleads Guilty to Wire Fraud Conspiracy for Stealing over $37 Million by Spoofing Coinbase's WebsiteRead the Press Release
CHARLOTTE, N.C. – Chirag Tomar, 30, a citizen of the Republic of India, appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to federal charges for stealing more than $37 million through a spoofing scheme of the Coinbase website, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tomar was arrested at the Atlanta airport on Dec. 20, 2023, upon entering the United States, and remains in federal custody.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, in or about June 2021, Tomar and his co-conspirators engaged in a scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Tomar and his co-conspirators executed the fraud by “spoofing” the Coinbase website. Coinbase is one of the largest virtual currency exchanges in the world, that allows customers to buy, sell or trade cryptocurrencies. Coinbase users can also store their cryptocurrencies in their virtual exchange wallets. Upon logging in, users are able to quickly access their wallets and transfer the cryptocurrencies to other wallets or other outside linked accounts. Coinbase operated a “Pro” version of its exchange, which was found at the URL “Pro.Coinbase.Com.”
According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com. In order to deceive unsuspecting users into believing they were accessing the legitimate Coinbase webpage, the fraudulent website was crafted to mimic the authentic website. Once victims entered their login credentials into the fake website, an authentication process was triggered. In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters. Other times, victims were tricked into allowing fake Coinbase representatives into executing remote desktop software, which enabled fraudsters to gain control of victims’ computers and access their legitimate Coinbase accounts. The fraudsters also impersonated Coinbase customer service representatives and tricked the users into providing their two-factor authentication codes to the fraudsters over the phone. Once the fraudsters gained access to the victims’ Coinbase accounts, the fraudsters quickly transferred the victims’ Coinbase cryptocurrency holdings to cryptocurrency wallets under the fraudsters’ control.
In February 2022, a victim located in the Western District of North Carolina attempted to log into his Coinbase account through the fraudulent website. The spoof website immediately notified the victim that his account was locked and prompted the victim to use a number provided to call a fake Coinbase representative. The fake representative tricked the victim into providing his two-factor authentication information, ultimately gaining access into the victim’s real Coinbase account. Using the information, fraudsters stole cryptocurrency from the victim’s Coinbase wallet worth over $240,000.
As Tomar admitted in court today, Tomar controlled several cryptocurrency wallets that received hundreds of transactions of cryptocurrency stolen from victim accounts at Coinbase, totaling tens of millions of dollars. After Tomar received the stolen cryptocurrency, he would quickly convert it to other forms of cryptocurrency or move the funds amongst many wallets controlled by Tomar and others. Ultimately, the cryptocurrency was converted into cash which was then distributed to Tomar and his co-conspirators.
According to court documents, Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase a Rolex and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.
Tomar pleaded guilty to wire fraud conspiracy, which carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.
U.S. Attorney King commended the U.S. Secret Service for their investigation of the case and thanked the FBI in Nashville for their invaluable assistance.
Assistant U.S. Attorney Matthew T. Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Huntington Man Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
HUNTINGTON, W.Va. – Andrew Nicholas-Scott Titus, 33, of Huntington, pleaded guilty today to failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, in June 2023, Titus relocated from Michigan to Lavalette, West Virginia. In October 2023, Titus relocated from Lavalette to Huntington, where he lived in a residence with four minor children. Titus failed to register or update his registration as required by SORNA after each relocation.
Titus is required to register as a sex offender and comply with SORNA because of his prior convictions for gross indecency between a male and female on March 21, 2022, and for distributing obscene materials to a minor on August 6, 2015, both in Wexford County, Michigan, Circuit Court.
Titus is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
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. 3:24-cr-26.
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Grand Haven Man Sentenced to 27 Years for Child ExploitationRead the Press Release
Man sexually assaulted and exploited 4-year-old child
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Brian Ray Stefono, 55, from Grand Haven, Michigan, was sentenced to serve 27 years in prison for the sexual assault and exploitation of a 4-year-old child. After his release from prison, Stefono will serve 10 years of supervised release.
“Brian Stefono committed horrific crimes against children and will spend the next 27 years in prison because of it,” said U.S. Attorney Mark Totten. “I’m grateful for our partners in the private sector who help report these crimes and for our partners in law enforcement who help investigate them. We urge anyone aware of child exploitation to contact law enforcement and we commit to doing everything we can to protect these victims.”
Stefono pleaded guilty to sexually assaulting the child on multiple occasions in a residence in Grand Haven. He produced multiple videos that depicted the sexual assaults. The victim was approximately 4 years old at the time. Stefono came to the attention of law enforcement after a cloud-storage provider discovered videos in Stefono’s accounts that depicted sexual assaults of very young children. Michigan State Police and Homeland Security Investigations executed a search warrant on Stefono’s home and uncovered his collection of child pornography—including the self-produced exploitative content.
“Our children and our communities are safer with this predator behind bars,” said HSI Detroit Acting Special Agent in Charge Jared Murphey. “Through law enforcement partnerships and the vigilance of private industry, we can help hold these offenders accountable and deliver justice for the victims of these heinous crimes.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by Michigan State Police ICAC taskforce and Homeland Security Investigations.
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Government Contractor Settles Claims That It Billed for Personnel Who Lacked Required Security ClearancesRead the Press Release
ALEXANDRIA, Va. – Deloitte Consulting LLP, located in New York, agreed to pay $220,885.77 to settle claims that it billed the Department of Health and Human Services, Program Support Center (HHS-PSC) for labor performed by personnel who did not possess the security clearances required by a government contract.
Deloitte Consulting submitted a written contractor disclosure to HHS-PSC. Specifically, the disclosure stated that Deloitte Consulting was unable to validate the clearance status of seven employees who performed work on a contract awarded by HHS-PSC. As a result, Deloitte Consulting considered those employees not to have met the base clearance level in the contract. Following an investigation by the U.S. Attorney’s Office, Deloitte Consulting agreed to pay the amounts billed for personnel whose clearance status could not be validated.
Deloitte Consulting received full credit under the Department of Justice’s guidelines for taking disclosure, cooperation, and remediation into account: Justice Manual § 4-4.112.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Health and Human Services, Office of General Counsel; the Department of Health and Human Services, Office of Inspector General; Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Department of the Army Criminal Investigation Division, Fraud Field Office; and the Naval Criminal Investigative Service – Economic Crimes Field Office, Washington, DC.
This matter was investigated by Assistant U.S. Attorney Tanya Kapoor.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Fruitland Man Pleads Guilty to Charges Arising from Machete Attack on MotoristRead the Press Release
ALBUQUERQUE – A Fruitland man pleaded guilty in federal court to threatening a driver, brandishing a machete and hatchet, stealing her car, and leading police on a high-speed chase.
In his plea agreement, Brandon Barber, 38, an enrolled member of the Navajo Nation, admitted that on May 9, 2022, Jane Doe was driving her Jeep when his co-defendant, Lindsey Yazzie, threw a large rock at the windshield, forcing her to stop. Barber then attacked Jane Doe’s vehicle with a machete and hatchet, smashing the windshield and windows.
Barber and Yazzie then pulled Jane Doe from the vehicle, and Barber proceeded to steal Jane Doe's Jeep, briefly stopping to allow Yazzie to enter the vehicle as a passenger. As Barber drove away in the stolen Jeep, he saw Jane Doe standing in the roadway and accelerated the vehicle towards Jane Doe, who had to jump out of the way to avoid being struck.
When encountered by the Navajo Police Department, Barber led them on a high-speed chase until the police were forced to terminate the pursuit due to public safety risks.
The Court ordered that Barber remain in custody pending sentencing, which has not been scheduled.
At sentencing, Barber faces up to 15 years in prison. Upon his release from prison, Barber will be subject to up to three years of supervised release.
Lindsey Yazzie is currently scheduled to stand trial on July 8, 2024.
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 Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Plea Agreement# # #
Four men federally indicted on attempted child sexual enticement chargesRead the Press Release
SAVANNAH, GA: Four men have been indicted on federal charges after a multi-agency sting operation targeting online predators.
The men are all charged with Attempted Enticement and Inducement of a Minor to Engage in Sexual Activity, a charge that carries a statutory penalty upon conviction of 10 years to life in prison, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. A conviction subjects the defendants to lifetime registration as a sex offender; at least five years to life of supervised release, upon completion of any prison term; and substantial financial penalties.
There is no parole in the federal system.
“As exemplified in Operation Nightfall, the dangers of the internet require the collaboration of multiple law enforcement agencies in identifying adults who are using online platforms to target children,” said U.S. Attorney Steinberg. “We will continue our work protecting our most vulnerable citizens.”
Those indicted on federal charges in Operation Nightfall include:
- Bobby Edwards Crews-Couch, 41, of Pooler, Ga.;
- Lancaster Graham, 38, of Garden City, Ga.;
- Clifton Newman, 34, of Savannah; and,
- Henry London Taylor, 69, of Savannah.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Operation Nightfall, a proactive undercover child exploitation investigation, was coordinated and investigated by the Georgia Internet Crimes Against Children Task Force, Homeland Security Investigations, the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit, and the Savannah Police Department, with assistance from multiple state and local law enforcement agencies, the Southern District of Georgia U.S. Attorney’s Office, and the Chatham County District Attorney’s Office.
The operation targeted those who communicate online with children in order to engage in illegal sex acts. A total of seven individuals, including the named four federal defendants, were arrested on multiple state charges involving online sexual communications with purported children, and attempting to meet a child for illegal sex acts.
The defendants are being prosecuted for the United States by Sherri A. Stephan and Timothy P. Dean, Assistant U.S. Attorneys for the Southern District of Georgia.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Former Trading Firm Executives Found Guilty of FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Michael Shawn Stewart, 61, of Scottsdale, Arizona, and Bryant Edwin Sewall, 57, formerly of Little Elm, Texas, were found guilty by a jury of 14 counts of wire fraud and conspiracy to commit wire fraud.
Evidence presented at the three-week trial showed that Stewart and Sewall were owners and executives of companies operating on various Caribbean islands under the names Mediatrix Capital and Blue Isle Markets. As part of the scheme Stewart and Sewall provided false and fraudulent information about an algorithm-based foreign currency exchange (“ForEx”) trading program to potential investors and to salespeople they were using to solicit investors. For example, Stewart and Sewall falsely represented that Mediatrix had a history of successful ForEx trading going back to 2013 with no months of losses when, instead, Mediatrix did not exist until 2014 and its trading history included many months of net losses. Mediatrix promised its investors “100% Transparency,” “100% Liquidity” and “World Class Returns.”
Additional evidence at trial showed that after luring investors into the scheme Stewart and Sewall fraudulently induced them to stay by manipulating account statements to show only positive trades while intentionally hiding massive losses that substantially reduced those investors’ accounts. By the end of the scheme, Stewart and Sewall had promised investors over $179 million but had only $9.8 million in their accounts, a gap that they internally referred to as “the hole.” Even as they lost approximately $32 million in trades, Stewart and Sewall rewarded themselves with approximately $30 million in performance fees. They also used their brokerage, Blue Isle, to fraudulently convert investor money into over $40 million in markup fees. They spent the money on real estate, boats, cars, jewelry, and other luxuries.
“Holding white-collar criminals accountable for fraud like this is a key part of the work that we do," said United States Attorney for the District of Colorado Cole Finegan. “This was a complex scheme and these guilty verdicts are a reflection of the outstanding work of our prosecutors as well as the exceptional work of our partners at the FBI.”
“The defendants orchestrated an elaborate foreign currency investment fraud scheme that caused extensive financial harm to unsuspecting victims,” said Special Agent in Charge Mark Michalek.” “FBI Denver will continue to investigate and seek justice for individuals who fall victim to criminals who cheat and lie their way into victims’ pockets.”
United States District Judge William J. Martinez presided over the trial. Sentencing will be held in November 2024. Each count of wire fraud carries a maximum penalty of twenty years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment. The conspiracy count carries a maximum penalty of five years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment.
A third partner involved with Mediatrix and Blue Isle — Michael Young — previously pleaded guilty to making a false statement to the Securities and Exchange Commission and will be sentenced on June 11, 2024.
The Federal Bureau of Investigation’s Denver Field Office conducted the investigation. Assistant United States Attorneys Anna Edgar, Bryan Fields, and former AUSA Pegeen Rhyne handled the prosecution.
Case number: 21-cr-00034-WJM
Former Insider at TIAA-CREF Sentenced to 70 Months in Prison for Involvement in Multimillion-Dollar Insider Trading RingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that LAWRENCE BILLIMEK was sentenced by U.S. District Judge Paul G. Gardephe to 70 months in prison for engaging in a multi-year insider trading scheme resulting in tens of millions of dollars in profits. BILLIMEK previously pled guilty to one count of securities fraud before Judge Gardephe.
U.S. Attorney Damian Williams said: "Lawrence Billimek shamelessly abused his position, orchestrating an insider trading scheme that pocketed tens of millions in illicit gains. Billimek thought that hiding his conduct behind burner phones and lies would shield him from detection from law enforcement. He was mistaken. Prosecuting white collar crimes like this sends a clear message that no one, regardless of their position, privilege, or the type of crime they commit, is outside the reach of the law.”
According to the filings and statements made during court proceedings:
Through his employment at TIAA-CREF, BILLIMEK had advance access to certain of TIAA-CREF’s anticipated trades. Due to the size of certain of these TIAA-CREF trade orders, they often caused market movement in the securities they traded. From at least 2016 through his arrest in December 2022, BILLIMEK abused his insider access and provided inside information about these trades to his co-conspirator (“CC-1”) who then bought or sold the same securities in advance of the TIAA-CREF trading. CC-1 then provided BILLIMEK with a portion of the profits on these trades.
BILLIMEK and CC-1 engaged in these front-running trades on over a thousand occasions between in or about 2016 and December 2022. In an effort to hide their scheme, BILLIMEK used prepaid, unregistered “burner” phones to communicate with CC-1 throughout the trading day. BILLIMEK and CC-1 also lied to various financial institutions about the source of funds they received during the scheme, claiming that they were, among other things, gifts. In total, BILLIMEK and CC-1 generated tens of millions of dollars in profits. BILLIMEK bought multiple homes and funded an active social lifestyle through the proceeds of his criminal scheme.
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In addition to a prison term, BILLIMEK, 52, of Hailey, Idaho, was sentenced to three years of supervised release and ordered to pay forfeiture of $12,249,000.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason A. Richman is in charge of the prosecution.
Five Members of Multi-State Gas Pump Skimming Device and Fuel Theft Ring Arrested on Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging five individuals with conspiracy, 4 counts of wire fraud, 15 counts of access device fraud, and 3 counts of aggravated identity theft. The following individuals have been charged in the indictment in connection with their participation in a multi-state gas pump skimming device conspiracy involving the theft of diesel fuel:
- Luis Edel Trujillo Pena (29, Miami)
- Deyvis Hernandez (37, Miami)
- Luis Ernesto Vigil Ochoa (32, Miami)
- Isvaldo Guerra Perdomo (38, Jacksonville)
- Deonelky Tabares Cid (36, Tampa).
If convicted each faces up to 20 years in federal prison for each count of wire fraud, up to 10 years’ imprisonment for each count of access device fraud, up to 5 years in prison on the conspiracy count, a consecutive minimum mandatory penalty of 2 years’ imprisonment for each aggravated identity theft count, and payment of restitution to the victims they defrauded.
According to court documents, the individuals worked together, and with others, to place skimmers on gas pumps in the north Florida area and other states. Using the account numbers stolen by the skimmers, they made counterfeit credit and debit cards and then used them to purchase primarily diesel fuel. Utilizing vehicles with a bladder/container to pump the fraudulently purchased diesel fuel into, the conspirators would offload the stolen fuel into containers at a fuel yard. The stolen fuel was then sold to a gas station associated with one of the co-conspirators.
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 Bureau of Investigation, the Florida Department of Agriculture and Consumer Services, the Florida Highway Patrol, the Jacksonville Sheriff’s Office, U.S. General Services Administration - Office of Inspector General and the U.S. Secret Service – Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Final Elite Assassin Milla Gang Member Sentenced to More Than 18 Years in Prison for Violent Crimes in Two Separate CasesRead the Press Release
Earlier today, in federal court in Brooklyn, Qawon Allen, also known as “40” and “Phorty Wap,” was sentenced by United States District Judge Kiyo A. Matsumoto to 140 months in prison for assault in-aid-of-racketeering in connection with his role in the shooting and attempted murder of a rival. Allen pleaded guilty to the charges in May 2022. Today’s sentence will be served consecutive to the seven-year term of imprisonment imposed earlier this year by United States District Judge Nicholas G. Garaufis for brandishing a firearm in furtherance of a crime of violence. Allen pleaded guilty to the firearm charge in January 2020.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the sentence.
Allen was a long-time member of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang that operated primarily in East New York. The gang made money through fraud and drug dealing, particularly sales of crack cocaine and marijuana. The gang murdered or attempted to murder its rivals to maintain its power and referred to East New York as “Gun Town” for the level of violence its members and associates committed and perpetuated. Allen helped track down rivals so E.A.M members could shoot them.
In United States v. Allen, Docket No. 19-CR-128, Allen pleaded guilty to robbing a drug dealer at gunpoint. In United States v. Allen, Docket No. 20-CR-213, Allen pleaded guilty to his role in the shooting of a victim. Specifically, Allen alerted the gang’s so-called “Godfather” Quandel Smothers and another member of E.A.M. to the victim’s location so that the victim could be murdered. Allen also provided the location of a hidden firearm that others could pick up to use in the shooting.
All other members and associates of E.A.M. that were charged with Allen have been convicted of crimes including conspiracy to commit murder, using firearms in connection with murder, assault, and interstate stalking causing life threatening injury and sentenced for their conduct. Tyshawn Corbett was sentenced to 45 years’ imprisonment; Smothers was sentenced to 23 years’ imprisonment after being convicted at trial; Marlon Bristol was sentenced to 135 months’ imprisonment; Devon Bristol was sentenced to 80 months’ imprisonment; and Desmonn Beckett was sentenced to 64 months’ imprisonment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Genny Ngai, and Matthew Galeotti are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.
The Defendant:
QAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 28
Brooklyn, New YorkDefendant Convicted at Trial:
QUANDEL SMOTHERS (also known as “Chucky”)
Age: 32
Brooklyn, New YorkDefendants Who Pleaded Guilty
TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New YorkDESMONN BECKETT (also known as “Des”)
Age: 30
Brooklyn, New YorkDEVON BRISTOL (also known as “D”)
Age: 32
Brooklyn, New YorkMARLON BRISTOL (also known as “Marlo”)
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-213 (KAM); E.D.N.Y. Docket No. 19-CR-128 (NGG)
Eureka Resident Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – William Wood has been sentenced to 120 months in prison following his conviction on a charge of possession of child pornography, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was imposed by the Hon. Trina L. Thompson, United States District Judge, on May 17, 2024.
Wood, 62, of Eureka, California, pleaded guilty in October 2023 to one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). He was originally indicted on that charge by a federal grand jury in December 2022.
According to the government’s sentencing memorandum, the defendant possessed more than 300 images and videos depicting child pornography on his electronic devices, including approximately 24 images depicting infants or toddlers and hundreds more depicting prepubescent children. The government further argued in its sentencing papers that the defendant used social media to send child pornography to another individual, including images depicting infants or toddlers and prepubescent children engaged in sexually explicit conduct.
In addition to sentencing Wood to prison, Judge Thompson ordered the defendant to serve five years of supervised release to begin after his prison term is completed and to pay $35,000 in restitution.
Assistant United States Attorney Kelsey Davidson is prosecuting the case with the assistance of Sara Slattery. The prosecution is the result of an investigation by the FBI, with assistance from the Humboldt County Sheriff’s Office.
Domino’s Pizza Franchisee Sentenced to a Year and a Day in Prison, Ordered to Pay $2.5 Million to IRS for Tax CrimesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ammar Jali, 56, of Bethlehem, PA, was sentenced today by United States District Judge Joshua D. Wolson to 12 months and one day in prison, one year of supervised release, and a $50,000 fine, and ordered to pay $2.5 million to the Internal Revenue Service for filing false tax returns.
The defendant was the sole shareholder of 36 Domino’s Pizza restaurants located throughout Pennsylvania and Ohio. On January 29, 2024, Jali pleaded guilty to filing a false tax return for his businesses and himself.
From 2014 to 2016, Jali underreported the gross receipts for his Domino’s stores by $10,000,000 and caused his accountant to file false tax returns. Accordingly, Jali caused over $2.5 million of tax loss to the federal government.
“Owning your own business often requires taking some risks,” said U.S. Attorney Romero. “But in underreporting his restaurants’ earnings by millions and millions of dollars, Mr. Jali went beyond risk-taking straight to law-breaking. In doing so, he was effectively thumbing his nose at both the IRS and all the honest filers who accurately report their income and pay what they owe. This case should send the message that my office and IRS-CI won’t put up with tax cheats, and we will pursue and prosecute these crimes to ensure they’re held accountable.”
“Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Acting Special Agent in Charge Denise Leuenberger. “Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes.”
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Tiwana Wright.
Detroit Man Pleads Guilty to Conspiracy Involving More Than $14 Million in Fraudulent Pandemic Relief LoansRead the Press Release
PITTSBURGH, Pa. - A resident of Detroit, Michigan, pleaded guilty in federal court on May 15, 2024, to a fraud conspiracy charge involving the largest known Paycheck Protection Program (PPP) fraud in the Western District of Pennsylvania, United States Attorney Eric G. Olshan announced today.
Matthew Lloyd Parker, 37, pleaded guilty before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Court was advised that, between March 2020 and August 2021, Parker conspired with others to defraud lenders of more than $14 million through false PPP loan applications for COVID-19 pandemic relief. Parker, a licensed CPA from Detroit, recruited hundreds of small businesses in Pittsburgh and Detroit and falsified PPP loan applications in their names. The Small Business Administration approved 226 of those applications, resulting in loans totaling approximately $14.5 million to various businesses.
Judge Hardy scheduled sentencing for September 17, 2024. The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Parker.
Columbia Man Sentenced to 22 Years for Fentanyl Trafficking, Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for distributing fentanyl and illegally possessing several firearms.
Robert Jevon Bean, also known as “Shaq,” 37, was sentenced by U.S. District Judge Roseann A. Ketchmark to 22 years and six months in federal prison without parole.
On Nov. 30, 2023, Bean pleaded guilty to one count of conspiracy to distribute fentanyl and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Bean was stopped by Columbia police officers on June 22, 2022. During the traffic stop, he was found to be in possession of 12.5 grams of fentanyl. Officers executed a search warrant at Bean’s apartment and found his 10-year-old child at home alone. According to court documents, unsecured firearms were found next to video game controllers, lying next to the couch, at the entry of the kitchen pantry where food was kept, and alongside a bed.
Officers seized from Bean’s residence a Glock 9mm handgun that had been converted into a machine gun, an American Tactical AR-15 .223/5.56 pistol, a Glock .40-caliber handgun, an Extro 12-gauge shotgun, an Anderson AR-15 .223/5.56 pistol, a Keltec .40-caliber rifle, 46.71 grams of fentanyl, drug paraphernalia, multiple firearm magazines, including a drum magazine, multiple boxes of ammunition, and $23,235 in cash, which must be forfeited to the government.
Bean told investigators that he paid $1,400 per ounce for the approximately two ounces of fentanyl they found at his residence. Bean sold fentanyl for $210 per gram. Based on Bean’s statements, he has distributed at least four kilograms (8.8 pounds) of fentanyl from a source in Detroit, Michigan, and approximately two ounces from a more recent source in St. Louis, Mo.
Bean stated he buys all his guns off the streets locally, and often takes guns in trade for drugs. Bean told investigators all the guns came from Columbia except the Glock machine gun, which he purchased in St. Louis for $1,500. Investigators found multiple posts and livestream videos on Bean’s Facebook profile that show Bean with a variety of firearms, including a black Taurus 9mm handgun with an extended magazine and a laser attachment and what appeared to be a Glock handgun with an extended magazine. Another video posted showed Bean with three handguns with high-capacity drum magazines, a semi-automatic shotgun, an AK-47 with an extended magazine, an AR-15 with dual 30-round magazines, and a Kel-tec Sub-2000 with a brass catcher. Other videos showed Bean with an AR-style pistol and an AK-47-style rifle.
This case was prosecuted by Assistant U.S. Attorney Melissa Ann Pierce. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cole County Jail Inmate Sentenced for Contraband DrugsRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was sentenced in federal court today for possessing illegal drugs while incarcerated in the Cole County Jail.
Waun Ramon Ivory, 32, was sentenced by U.S. District Judge Roseann A. Ketchmark to eight years in federal prison without parole.
On Oct. 26, 2023, Ivory pleaded guilty to possessing contraband in prison. Ivory admitted that he was in possession of cocaine while incarcerated in the Cole County Jail.
According to court documents, Ivory was incarcerated pending a supervised release revocation hearing in an earlier case. In 2017, Ivory was convicted in federal court of being a felon in possession of a firearm, after a family member called 911 reporting that Ivory was carrying a firearm and threatening to “put a hole” in another person’s head. Ivory was sentenced to five years in prison; he was released to supervision on June 7, 2022.
Ivory failed to comply with the conditions of his supervision, and a warrant was issued for his arrest. Before he could be arrested, he was charged with a new offense after a woman reported she was assaulted by Ivory. The court revoked Ivory’s supervision and sentenced him to two years in prison.
While in the Cole County Jail pending the supervised release revocation, Ivory was caught in possession of cocaine on March 6, 2023. According to court documents, he also possessed a razor, unsheathed from its safety case. While this case has been pending, Ivory also was caught in possession of a weapon made from a toothbrush, as well as another razor.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the U.S. Marshal’s Service and the Cole County, Mo., Sheriff’s Department.
Buffalo man who killed two people going to prison for 20 yearsRead the Press Release
Buffalo, N.Y. -- U.S. Attorney Trini E. Ross announced today that Brandon Jonas, 39, of Buffalo, NY, who was convicted of discharge of a firearm in furtherance of a crime of violence, was sentenced to serve 240 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joseph M. Tripi, who handled the case, stated that Jonas shot and killed Nelson and Miguel Camacho, who were brothers, inside a residence on Niagara Street on Buffalo’s West Side. Jonas, along with co-defendants Efrain Hidalgo and Misael Montalvo, received information that the brothers might have large amounts of money or drugs and would be good targets to rob. On November 11, 2004, defendant Montalvo drove Jonas and Hildalgo to the vicinity of the Niagara Street residence. Jonas was armed with an AK-47 style rifle and Hidalgo had a baseball bat. After surveilling the residence, Jonas and Hildalgo forced their way into the residence in an attempt to rob money and drugs from the brothers. During the robbery attempt, Jonas shot and killed the Camachos. Josue Ortiz served 10 years in state prison for the murders of Nelson and Miguel Camacho. In 2015, his conviction was vacated by an Erie County Court judge based on the findings of this federal investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Stanley Edwards, III, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller.
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Boone County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kevin Wayne Britton, 54, of Danville, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on September 1, 2023, Britton possessed a Savage model 67F 12-gauge shotgun and a Hoban Manufacturing model 45 .22-caliber rifle in the South Charleston area.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Britton knew he was prohibited from possessing firearms because of his prior felony conviction for obstruction of justice in United States District Court for the Southern District of West Virginia on November 15, 2012.
Britton is scheduled to be sentenced on August 21, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-30.
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Bakersfield Man Sentenced for Role in Sex Trafficking Enterprise at Desert Star MotelRead the Press Release
FRESNO, Calif. — A federal judge sentenced Roy Gene Drees, 48, of Bakersfield, today to four years in prison for use of facilities of interstate commerce in aid of a racketeering enterprise, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Jatin Bhakta purchased and began operating the Desert Star Motel at 516 South Union Avenue in Bakersfield in 2015. From 2015 through late 2020 the Bakersfield Police Department made numerous prostitution-related arrests and child rescues at the property. Drees lived and worked at the motel until a federal search warrant was executed on Jan. 22, 2021, at which time 15 prostitutes and three pimps were encountered along with Drees and Bhakta. While working at the motel, Drees intentionally helped the management and carrying on of the prostitution activity through various means, including through telephone calls, text messages, providing transportation, and making motel arrangements.
One pimp, Darnell Edwards, who had forced two minor females to engage in prostitution at the Desert Star, was sentenced on May 1, 2023, to 19 years and seven months in federal prison.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Bakersfield Police Department, and the Parole Division of the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney David L. Gappa 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 those who exploit children via the internet, as well as to identify and rescue victims.
Arizona Tax Preparer Pleads Guilty to Filing False Tax Returns as Part of a Nationwide Abusive-Trust Tax Shelter SchemeRead the Press Release
An Arizona man pleaded guilty on Friday to two counts of assisting in the preparation of false tax returns for individuals who used an abusive-trust tax shelter to underreport their income and tax liabilities.
According to court documents and statements made in court, from 2017 to 2023, Kent Ellsworth operated Ellsworth Stauffer P.C., a return preparation business. During that time, Ellsworth participated in a scheme to defraud the IRS that involved the promotion, sale and implementation of a fraudulent tax shelter. Ellsworth participated by preparing and filing over 500 false tax returns for approximately 60 clients nationwide who used the tax shelter to conceal income from the IRS and not pay tax. Ellsworth intentionally caused more than $60 million in income to be fraudulently sheltered from the IRS, which resulted in a tax loss to the IRS of approximately $17 million.
Ellsworth prepared the false tax returns to further the abusive-trust tax shelter scheme carried out by others. Clients who purchased the tax shelter – most of whom were successful business owners – were directed to assign or “donate” nearly all of their income to sham trusts and a so-called “private family foundation” to create the illusion that the income was not theirs. However, the sham trusts and foundations were nothing more than bank accounts designed to hold funds the clients earned and continued to control.
To carry out the scheme, Ellsworth was taught how to prepare tax returns utilizing the scheme’s fraudulent methods. He was instructed to report all income assigned to a sham trust as income of the trust and to offset that income by deducting all expenses paid for by the trust, including the clients’ personal living expenses. Ellsworth was paid fees for preparing the returns by the clients participating in the tax shelter.
Ellsworth is scheduled to be sentenced on Aug. 14. He faces a maximum penalty of three years in prison for each count of preparing and filing false tax returns. Ellsworth also faces a maximum fine of $250,000, a period of supervised release and the costs of prosecution for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Special Agent in Charge Andy Tsui of IRS Criminal Investigation’s (IRS-CI) Denver Field Office made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.
Albuquerque Man Sentenced for Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – An Albuquerque man was sentenced to 15 years in prison after pleading guilty to being a felon in possession of a firearm. This case was adopted from state prosecution in cooperation with the Second Judicial District Attorney’s Office.
According to court documents, on November 13, 2022, a husband and wife were waiting for food at a Church's Chicken drive-thru on Broadway Blvd SE. Joseph Dino Lopez, 59, approached their car, banged on the window, and yelled at them while appearing under the influence.
Surveillance footage shows Lopez retrieving a blue bag containing a shotgun and approaching the victims' parked car. After an altercation where the male victim pepper sprayed him, Lopez pulled out the shotgun, loaded it, and pointed it at the couple before they fled. Lopez briefly left the scene to wash the pepper spray out of his eyes, but returned, and APD arrested him as he exited the Church's Chicken restaurant. The loaded shotgun was recovered from the blue bag he had left behind, and additional ammunition was discovered in his shirt pocket.
At the time of the offense, Lopez had previously been convicted of a total of nine felonies.
After completing his term of imprisonment, Lopez will be required to serve 3 years of supervised release.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Bernalillo County District Attorney Sam Bregman made the announcement today.
The Albuquerque Police Department investigated this case with assistance from the FBI Albuquerque Field Office. Special Assistant U.S. Attorney Peter Haynes prosecuted the case as part of an agreement with the Second Judicial District Attorney’s Office.
Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.
The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state.
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22 Alleged Drug Traffickers Charged in Wichita FallsRead the Press Release
Twenty-two alleged drug dealers in Wichita Falls, Texas have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Sixteen of the 22 defendants were arrested during a takedown on Thursday that included the use of multiple tactical units, including SWAT teams from five FBI divisions, the FBI’s Hostage Rescue Team (HRT), the Texas Department of Public Safety Special Response Teams, the U.S. Marshals, and the Wichita Falls Police Department. Six defendants had been previously taken into custody.
Twenty-one of the 22 defendants were charged via criminal complaint with conspiracy to possess with intent to distribute controlled substances:
- Dywane Cecil Graham, aka “D”
- Dmetrius Lakeith Brooks, aka “D Blocc”
- Dominique Equincy Hall, aka “Playa D”
- Nicholas Bryan Darcus, aka “Locc D”
- Brandy Lynn Flowers, aka Brandy Mason
- Jaryd Blake Howard
- Jewel Wayne Fletcher, Sr., aka “Goofi”
- Sarah Leann Parker, aka Sarah Davis
- Robert “Bobby” Lee Collins
- Madeline Josephine Stephens, aka Madeline Kearney
- Elisha Earl Johnson, aka “Cash”
- Samuel Conta Manuel, aka “Butterman”
- Kiesha Tanga Wyatt, aka “Tanga”
- Shedrick “Sed” Cortez Cyrus
- Robert Thomas Bustamante
- Kenzie June Lozano
- William Lee Freeman, aka “Ghost”
- Jack Bishop Cline
- Dwight Albert Simpson, aka “Tray”
- Jimmie Scott Williams, aka “Motorcycle Man”
- Stanley Wayne Britt
The 22nd defendant, Ujamaa Jelani Rashaun Ballard, was charged in a sperate criminal complaint with conspiracy to possess with intent to distribute controlled substances.
According to the 21-defendant criminal complaint, the investigation began in March 2023, when law enforcement learned from confidential informants that Dwayne Graham and Dmetrius Brooks – both associated with the notoriously violent Crips street gang – were operating a methamphetamine distribution ring in Wichita Falls, Vernon, and its environs.
Over the ensuing months, law enforcement deployed several confidential sources to make multiple drug buys, which were video and audio recorded. They also searched several suspects’ vehicles and residences, where they recovered copious amounts of methamphetamine and numerous firearms. On one occasion, a defendant led police on a 9.5- mile pursuit, tossing a Ziploc baggie full of meth out his window as he sped off.
To date, law enforcement has recovered 7,229.46 grams of methamphetamine, approximately 719 grams of powder cocaine, approximately 55 grams of crack cocaine, approximately 49.75 grams of powdered fentanyl, approximately 2,197 counterfeit Percocet pills laced with fentanyl, and nine firearms in the course of the investigation.
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, they each face a minimum of 10 years and up life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office - Wichita Falls Resident Agency, the Wichita Falls Police Department, the Wichita County Sheriff’s Office, the U.S. Marshals Service, and the Texas Department of Public Safety conducted the investigation with assistance from the Drug Enforcement Administration’s South Central Lab. Valuable assistance was also provided by Wichita County District Attorney’s Office Drug Enforcement Division, Wilbarger County District Attorney’s Office, Vernon Police Department, Crowell Police Department, Oklahoma Bureau of Narcotics, and the Clay County Sheriff’s Office. Assistant U.S. Attorney Laura Montes is prosecuting the case.
Friday 17 May 2024
West Roxbury Man Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A West Roxbury man pleaded guilty on May 15, 2024 in federal court in Boston to a fraud charge in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP).
Donovan Scarlett, 25, pleaded guilty to one count of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 5, 2024.
Scarlett was charged and arrested in February 2024 along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy; drug trafficking; firearms charges; and financial frauds, including COVID-related fraud.
In March 2021, Scarlett submitted a fraudulent PPP loan application on behalf of his purported business. The fraudulent PPP loan application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2020 and Scarlett’s criminal history. Scarlett also submitted false tax records in support of his loan application. Based on the fraudulent application, Scarlett received approximately $13,600 which he spent on non-business-related expenses.
The CARES Act created a temporary loan program directed at small businesses called the PPP. PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit 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-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Watauga Man Convicted by Federal Jury of Assault by Striking, Beating or WoundingRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that Justin James Schneider, age 38, of Watauga, South Dakota, was found guilty of Assault by Striking, Beating or Wounding as a result of a two-day federal jury trial in Aberdeen, South Dakota.
The charge carries a maximum penalty of one year in federal prison and/or a $100,000 fine, one year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Schneider was indicted by a federal grand jury in January of 2023.
On October 26, 2022, in McIntosh, South Dakota, within the Standing Rock Indian Reservation, Schneider, a non-Indian man, was taking out the trash when he saw another man. Schneider believed the other man, a tribal member, had wronged him several months earlier. Schneider gestured for the man to join him in a neighbor’s yard. When they met, Schneider accused the man of misconduct, then punched him several times in the face. Schneider walked the man to his wife’s workplace, forced him to apologize for the alleged misdeed, and then punched him once more on the nose, breaking it.
This case was investigated by the Corson County Sheriff’s Office and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case.
A presentence investigation report was ordered and a sentencing date of August 1, 2024, was set. Schneider remains in the custody of the U.S. Marshals Service pending sentencing.
Virginia Man Admits to Online and Sexual Contact with MinorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Daniel Eliazar Ramos Rosa, 24, of Manassas, Virginia, has admitted to the coercion and enticement of a 10-year-old Jefferson County girl.
According to court documents and statements made in court, Rosa, also known as “Jay,” exchanged over 1,000 messages, photos, and videos with the victim via Snapchat, later traveling to the victim’s Harpers Ferry home and engaging in sexual activity with her. Rosa recorded the encounter on his phone.
Rosa faces at least 10 years and up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting this case on behalf of the government.
The FBI and Jefferson County Sheriff’s Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vancouver, Washington man sentenced to two-and-a-half years in prison for illegally acquiring arsenal of guns, ammo and silencerRead the Press Release
Tacoma – A Brazilian National with multiple convictions for domestic violence assault, was sentenced today in U.S. District Court in Tacoma to 30 months in prison for federal felonies charging illegal possession of firearms, lying in connection with the purchase of firearms, falsely claiming U.S. citizenship, and unlawful possession of a firearm silencer, announced U.S. Attorney Tessa M. Gorman. Joao Ricardo DeBorba, 48, of Vancouver, Washington, has been detained at the Federal Detention Center at SeaTac since he was convicted at a bench trial in February 2024. He was sentenced today by Chief Judge David G. Estudillo.
According to records filed in the case, DeBorba entered the United States on a tourist visa in 1999. DeBorba overstayed the visa and falsified documents to work in the U.S. and to acquire firearms. In April 2019, while purchasing firearms in Portland and Lebanon, Oregon, and Lacey, Washington, DeBorba entered false information on government forms stating he was a U.S. citizen. Shortly after the first three gun purchases, DeBorba was arrested for drunken driving and was found to have a Glock pistol.
Despite that arrest, DeBorba continued to purchase firearms: a rifle in Gresham, Oregon, and a revolver in Vancouver, Washington, again providing false information about his citizenship on required forms.
In November 2019, DeBorba was arrested for domestic violence assault. DeBorba was served with a “No Contact” order and was instructed to surrender all of his firearms. On November 16, 2019, DeBorba was arrested for violating the no contact order and 20 firearms were seized from his residence.
In January 2022, DeBorba was convicted in a second case of domestic violence assault. He was again informed that he could not possess firearms.
When law enforcement served a search warrant at DeBorba’s residence, agents seized five firearms: three AR-15 style rifles with no serial numbers or manufacturers marks and two handguns – one without any serial number or manufacturers mark. The firearms, so-called “ghost guns,” appear to have been manufactured from parts ordered online.
In addition to the guns, DeBorba had a large amount of ammunition, a workbench with firearms parts and tools, firearms silencers, magazines, and various gun cases.
In asking the court for a five-year prison term, Assistant United States Attorney Max Shiner wrote to the court, “following his first reported domestic violence incident, DeBorba’s conduct only became more troubling. He increased his threatening conduct toward his wife. He threatened his roommates, who feared him because they knew he was accustomed to carrying a rifle with him. Despite having firearms seized from him, he replenished his cache of weapons and ammo, and began to obtain ghost guns as well as a firearm silencer, a highly restricted weapon under federal law.”
The case was investigated by the FBI, with assistance from the Vancouver Police Department, U.S. Immigration and Customs Enforcement (ICE), the Bureau of Alcohol, Firearms & Explosives (ATF), and the Social Security Office of Inspector General (SSA-OIG).
The case is being prosecuted by Assistant United States Attorney Max Shiner.
The case is US v. DeBorba CR22-5139-DGE
Utica Man Sentenced for his Role in Major Fentanyl ConspiracyRead the Press Release
UTICA, NEW YORK – Jose Morales, age 31, of Utica, was sentenced yesterday to serve 120-months in federal prison for conspiring to distribute fentanyl, and distribution and possession with intent to distribute fentanyl, announced United States Attorney Carla Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office. Morales was also ordered to serve a 5-year term of supervised release following his sentence of imprisonment, pay a $200 special assessment and pay a $37,245 money judgment representing proceeds from the distribution of drugs.
As part of his previous guilty plea, Morales admitted that from May 2020 through October 2021, he acquired quantities of fentanyl from co-conspirators in the Rodriguez Drug Trafficking Organization (Rodriguez DTO), which he then re-distributed to others in the Utica, New York area. Morales admitted that during his participation in the conspiracy, the Rodriguez DTO distributed over 400 grams of fentanyl.
Morales was one of nine defendants charged in the Rodriguez DTO. Seven other defendants pled guilty and were previously sentenced:
- Ivan Rodriguez, Sr., the head of the Rodriguez DTO, pled guilty to one count of conspiring to distribute fentanyl and distribution of fentanyl and money laundering and was sentenced to 121 months incarceration.
- Eric Ares pled guilty to conspiring to distribute fentanyl and one count of possession with the intent to distribute fentanyl and was sentenced to 120 months incarceration.
- Ivan Rodriguez, Jr. pled guilty to conspiring to distribute fentanyl and was sentenced to 120 months incarceration.
- Jose Aponte pled guilty to conspiring to distribute fentanyl and one count of possession with the intent to distribute fentanyl and was sentenced to 40 months incarceration.
- Angel Calderon Ortiz pled guilty to conspiring distribute fentanyl and one count of possession with the intent to distribute fentanyl and was sentenced to 60 months incarceration.
- Edgar Tejada pled guilty to possession with the intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime, and was sentenced to 72 months incarceration.
- Harry Rodriguez pled guilty to two counts of possession with intent to distribute fentanyl, and was sentenced to 84 months incarceration.
On June 12, 2024, Bernabe Lopez, the last remaining defendant in the Rodriguez DTO, is scheduled to be sentenced in federal court in Utica. Lopez previously pled guilty to conspiring to distribute fentanyl, and distribution of fentanyl.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigations (IRS-CI), United States Homeland Security Investigations (HSI), United States Immigration and Customs Enforcement-Enforcement and Removal Operations (ICE-ERO), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the Utica Police Department, the Syracuse Police Department, the Rome Police Department, the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, New York Army National Guard Counter Drug Program, the Yorkville Police Department, and the Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
U.S. Attorney’s Office and law enforcement partners take action against money mules in order to disrupt transnational fraud schemes and educate the publicRead the Press Release
MIAMI – The U.S. Attorney’s Office for the Southern District of Florida, alongside its law enforcement partners to include FBI, U.S. Secret Service, and Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), are committed to educating the public regarding the Money Mule Initiative, an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds.
Law enforcement continues to take action to stop money mules responsible for facilitating a range of fraud schemes. Acts include criminal prosecutions designed to punish those intentionally assisting fraudsters and warning letters intended to advise those who may have been unknowingly recruited by fraudsters. In addition, the U.S. Attorney’s Office and our law enforcement partners continue to engage in outreach in order to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.
Many money mules begin as victims of romance or lottery scams and are unknowingly lured by fraudsters into transmitting fraud proceeds based on lies. Other money mules are recruited into what they initially believe to be legitimate work-at-home jobs.
“Our Office is committed to dismantling criminal networks, to include those designed to inflict financial harm upon older Americans,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to work with our federal partners to disrupt money mule networks, educate consumers about scams, and prosecute criminals who defraud the public. Our goal is to keep money out of the hands of domestic and international fraudsters and in the pockets and bank accounts of the South Florida residents and visitors we serve.”
“Money mules help criminals launder illicit proceeds derived from online scams, financial frauds, drug trafficking, or other crimes to make it harder for law enforcement to accurately trace,” said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami Field Office. “To be very clear, acting as a money mule is illegal. Go to FBI.GOV to learn more about this growing and pernicious problem.”
“The U.S. Secret Service remains dedicated to combatting financial crimes, including those involving money mules who unwittingly aid fraudsters in scams that target the elderly”, said Rafael Barros Special Agent in Charge of the U.S Secret Service, Miami Field Office. “By working closely with our law enforcement partners, we are committed to disrupting criminal networks and protecting the public from falling victim to these fraudulent schemes."
The U.S. Attorney’s Office for the Southern District of Florida has charged and will continue to charge defendants criminally for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds. These cases include:
- Daphne De la Caridad Gonzalez, 23, of Miami, Florida, and Neovordo Gordon, 24, and Collins Oleh, 24, both of Pembroke Pines, Florida, were charged for their involvement in a money laundering conspiracy that spanned multiple continents and millions of dollars. According to court documents, federal agents began investigating a bank impersonation scheme in 2022. It is alleged that to facilitate the scheme a fraudster(s) would contact small business owners and impersonate their bank representatives to coerce them into giving sensitive bank account information. The fraudster(s) would then use the victim’s bank account information to log into the victim’s accounts and initiate wire transfers from the victim’s bank accounts into the accounts of various money launderers. According to allegations in the charging documents, Gonzalez, Gordon, and Oleh were among the money launderers that received fraud proceeds from the victim’s bank accounts. They would receive the funds themselves or assist others that they recruited in receiving the funds and withdrawing the money, keeping a portion and directing a portion back to the fraudster.
Gonzalez pled guilty and, on April 26, 2024, was sentenced to 46 months in prison for her role in the conspiracy, wherein she laundered between $1.5 million and $3.5 million dollars (Case No. 23-CR-20467). Gordon pled guilty on March 18, 2024, to laundering between $3.5 and $9.5 million dollars. He is scheduled to be sentenced on June 26, 2024 (Case No. 23-CR-20399).
Oleh is scheduled for trial on July 1, 2024 (Case No. 23-CR-20399). A criminal complaint and an indictment contain allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Secret Service and FDIC-OIG investigated the cases. Assistant U.S. Attorney Robert Moore and Michael Brenner are prosecuting the cases. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.
- Michael Gonzalez, 30, a Venezuelan national residing in Doral, Florida, was charged via superseding indictment with conspiring with two other men to commit money laundering (Case No. 20-CR-20515). According to Court records filed at the time of the co-conspirators’ guilty pleas, between 2018 and 2019 Gonzalez directed Jose Manuel Samame and Leonardo Villa Lazo to open bank accounts in South Florida in order to receive and withdraw hundreds of thousands of dollars sent by fraud victims around the country. The victims believed they were paying for goods and services they purchased via eBay, Booking.com, AirBNB, and other online marketplaces. Of course, the victims never actually received the goods and services, which included vintage automobiles, commercial vehicles, and short-term vacation rental homes.
According to Samame and Villa Lazo’s plea agreements, Gonzalez directed them to withdraw and transfer the victims’ money and to invite friends to participate in the scheme. Gonzalez assured Samame that the money came from a “fake website scam” and would “jump around,” thus ensuring the money mules would not get caught, according to the facts admitted by Samame during his guilty plea. In total, Gonzalez, Samame, and Villa Lazo, recruited at least four additional, high-school-age participants to receive, withdraw, and transfer the victims’ funds.
Samame, 25, and Villa Lazo, 24, each pled guilty on Feb. 10, 2021, to money laundering conspiracy charges. They received sentences of 18 and 13 months’ imprisonment, respectively, and were ordered to pay $127,646.00 in restitution to their victims.
Gonzalez is scheduled for trial on July 8, 2024. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI Miami investigated the case. Assistant U.S. Attorney Christopher Browne is prosecuting it. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture matters.
Consumers are encouraged to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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.
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Two additional South Florida residents plead guilty to health care fraud charges in diabetic test strip diversion schemeRead the Press Release
MIAMI – On May 10, two additional South Florida men pleaded guilty to conspiracy to commit health care fraud for their role in a diversion scheme involving the distribution of adulterated and misbranded diabetic test strips.
The scheme involved the acquisition of non-retail or international diabetic test strips (i.e., diabetic test strips intended by manufacturers for distribution only outside of the United States), for sale to licensed retail pharmacies as retail diabetic test strips to make a higher profit. The fraud scheme resulted in around $12 million in fraudulent proceeds.
Howard Neil Frank, 60, of Marco Island, Florida, owner of two diabetic test strip wholesale businesses, Wholesale Diabetic Supplies Inc and HMF Distributing Inc, and Perfecto Fermin Hallon, 77, of Miramar, Florida, former president of another diabetic test strip wholesale business, Medical Care Supplies Inc, acquired the diabetic test strips through illegal importations, theft, or by buying the diabetic test strips from patients who obtained prescriptions but chose to sell them rather than use them. The wholesale company owners then sold the adulterated and misbranded diabetic test strips to licensed retail pharmacies, some of which they also owned. These licensed retail pharmacies sold the adulterated and misbranded diabetic test strips to patients who did not know the real source of the diabetic test strips. In turn, these licensed retail pharmacies then submitted claims for reimbursement through private and government health benefit plans as retail diabetic test strips.
To deceive auditors and inspectors, Frank and Hallon altered invoices, purchase orders and shipping records, counterfeited National Drug Code (NDC) numbers, bar codes and accompanying labeling, to appear like they had acquired the diabetic test strip from legitimate manufacturers.
Hallon’s sentencing hearing is scheduled for May 29 in West Palm Beach. He faces up to 10 years in prison.
Frank’s sentencing hearing is scheduled for Aug. 2 in West Palm Beach. He faces up to 10 years in prison.
To date, a total of four defendants have been indicted in connection with this scheme.
In 2021, Mohamed Mokbel, was charged with conspiracy to commit health care fraud. The trial is scheduled for October in West Palm Beach. Mokbel is also charged with health care fraud and money laundering in the Southern District of Texas. The trial is scheduled for August in Texas.
In 2022, Jason Grama, who pleaded guilty to conspiracy to commit health care fraud, was sentenced to three years supervised release and ordered to pay almost $300,000 in restitution.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Justin C. Fielder of the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA - OCI), Miami Field Office, announced the guilty plea.
FDA - OCI Miami investigated the case. Assistant U.S. Attorney Laurence M. Bardfeld is prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
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 21-cr-60113.
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Two Rapid City Men, one Rapid City Woman, and one Colorado Woman Sentenced for ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Eighth Circuit Court of Appeals Judge Jonathan A. Kobes, sitting in district court in Rapid City, South Dakota, and U.S. District Judge Karen E. Schreier have sentenced two Rapid City, South Dakota, men, one Rapid City, South Dakota, woman, and one Denver, Colorado, woman convicted of Conspiracy to Distribute a Controlled Substance.
Mark Bond, age 59, was sentenced by Eighth Circuit Judge Kobes on May 15, 2024, to 26 years and eight months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Todd Pape, age 61, was sentenced by Eighth Circuit Judge Kobes on May 15, 2024, to 25 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Teresa Goodroad, age 41, was sentenced on May 15, 2024, by Judge Schreier to 17 years and six months in federal prison, followed by five years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kaylee Heppner, age 37, was sentenced on May 15, 2024, by Eighth Circuit Judge Kobes to five years in federal prison, followed by three years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bond and Pape were indicted by a federal grand jury in the summer of 2022, and pleaded guilty on March 11, 2024.
Goodroad and Heppner were indicted by a federal grand jury in the fall of 2023, and pleaded guilty on March 15, 2024.
These convictions stemmed from activities involving the large scale distribution of methamphetamine in Rapid City, South Dakota, and on the Pine Ridge Reservation. Goodroad and her significant other, Richard Glover, who is set to be sentenced later this summer, were the source of supply for Bond and Pape in South Dakota. During the course of the conspiracy, Bond and Pape would make trips to Colorado to pick up pounds of methamphetamine from Goodroad and Glover. Other times Goodroad and Glover would deliver the drugs to Bond and Pape in South Dakota. Once the drugs were in South Dakota it would be further distributed by multiple individuals, including Heppner. Between 15 and 45 kilograms of methamphetamine was distributed during the course of this criminal enterprise.
Co-defendant Marlena Pond was previously sentenced to six years in custody. Six other co-defendants are pending sentencing later this summer.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
All four were immediately remanded to the custody of the U.S. Marshals Service following their respective sentencings.
Two Foreign Nationals Arrested for Laundering at Least $73M Through Shell Companies Tied to Cryptocurrency Investment ScamsRead the Press Release
An indictment was unsealed in the Central District of California yesterday charging two Chinese nationals alleging they played leading roles in a scheme to launder proceeds from cryptocurrency investment scams.
Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California. Yicheng Zhang, 38, a Chinese national and resident of Temple City, California, was arrested yesterday in Los Angeles.
“Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims,” said Deputy Attorney General Lisa Monaco. “While fraud in the crypto markets takes on many forms and hides in many far-off places, its perpetrators aren’t beyond the law’s reach. Today, we announce the arrests of two foreign nationals charged for leading a scheme to launder funds to the tune of at least $73 million tied to an international crypto investment scam. These arrests — made possible through the assistance of our international and U.S. partners — reflect the Justice Department’s ongoing commitment to disrupting the entire cybercrime ecosystem and stopping fraud across all financial markets.”
According to court documents, Li, Zhang, and other conspirators allegedly managed an international syndicate that laundered proceeds of cryptocurrency investment scams, which are also known as “pig butchering.” Victims of the schemes under investigation were fraudulently induced into transferring millions of dollars to U.S. bank accounts opened in the names of dozens of shell companies whose sole apparent purpose was to facilitate the laundering of fraud proceeds. A network of money launderers then facilitated the transfer of those funds to other domestic and international bank accounts and cryptocurrency platforms in a manner designed to conceal the source, nature, ownership, and control of the funds. The fraud scheme involved more than $73 million laundered through U.S. financial institutions to bank accounts in The Bahamas, and converted to the virtual asset USDT, or Tether. A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets.
“As alleged in the indictment, Li and Zhang helped launder millions of dollars obtained from victims of cryptocurrency investment scams,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Money laundering is critical to the success of these scams, allowing fraudsters to quickly move illicit proceeds and try to make them appear legitimate. The arrests announced today demonstrate the Criminal Division’s commitment to disrupting the sophisticated financial networks on which these scams depend and holding those involved accountable, no matter where they may be found.”
“Sophisticated financial scams such as these are a dangerous threat to the financial wellbeing of all Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “While my office will continue to root out and punish these deceitful schemes, I encourage everyone to educate themselves on pig butchering and other kinds of financial fraud to protect their families against such predatory activity. Vigilance is key.”
Li and Zhang allegedly instructed co-conspirators in the laundering network to open bank accounts in the names of various shell companies. Once the victims sent funds to the shell companies, Li and Zhang monitored the lower-level co-conspirators who transferred the proceeds overseas to bank accounts at Deltec Bank in The Bahamas. One of the Deltec Bank accounts was operated with the financial assistance of Li. The funds were then allegedly converted into cryptocurrency and sent to virtual-asset wallets, including at least one controlled by Li. Zhang allegedly also directly received victim funds. Communications revealed extensive coordination to facilitate the international money laundering, including chats discussing the commission structure for the network, various shell companies used, victim information, and at least one video from a conspirator calling a U.S. financial institution.
“Complex financial fraud schemes such as pig butchering present a clear and present threat to the financial infrastructure of the United States as countless numbers of Americans continue to be victimized by this predatory activity,” said Assistant Director of Investigations Brian Lambert of the U.S. Secret Service. “In 2023, the Secret Service with our partners recovered more than $1.1 billion in financial fraud and we are on pace to exceed that number this year. A special thank you to the special agents, support teams, and our prosecutorial partners for their exceptional work in bringing this case to justice.”
Li and Zhang are both charged with conspiracy to commit money laundering and six substantive counts of international money laundering. If convicted, the defendants face a maximum penalty of 20 years in prison on each count.
The U.S. Secret Service’s Global Investigative Operations Center is investigating the case. The Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and the Justice Department’s Office of International Affairs provided assistance.
The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and U.S. Attorney’s Office for the Central District of California are jointly prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Maxwell Coll for the Central District of California, CCIPS/NCET Trial Attorney Stefanie Schwartz, and Assistant U.S. Attorney Nisha Chandran for the Central District of California are prosecuting the case.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
If you or someone you know is a victim of a cryptocurrency investment fraud, report it to IC3.gov. In your complaint, please reference “Pig Butchering PSA.” Include as much information as possible in your report, 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Defendants Sentenced to Federal Prison for Multimillion-Dollar Fraud Scheme Targeting Senior CitizensRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that two defendants were sentenced for participating in an international fraud conspiracy that targeted senior citizens in several states, including Michigan. Jmyla Elaine Sha’Taria White, 29, of Thonotosassa, Florida, was sentenced to 97 months in federal prison, three years of supervised release, and ordered to pay $3,224,549 in restitution to victims of the conspiracy that she defrauded. McKhaela Katelynn McNamara, 28, of Flint, Michigan, was sentenced to 51 months in federal prison, three years of supervised release, and ordered to pay $693,073 in restitution to victims.
“Our seniors are being targeted by financial scammers at an alarming rate,” said U.S. Attorney Totten. “My office is committed to educating the public about financial schemes that inflict financial harm and defraud unsuspecting victims of their hard-earned money. We will continue working with our local, state, and federal partners to hold fraudsters accountable and secure a measure of justice for their victims.”
White and McNamara were two of seven defendants charged last year with conspiracy to commit wire fraud. Both pled guilty in January 2024. When imposing the sentences, U.S. District Judge Jane M. Beckering said, “This is one of the most reprehensible fraud schemes I have seen. This wasn’t just a theft of money. It was a theft of dignity, and a theft of security. This was a heinous crime that devastated people who worked hard their whole lives, and now their money is gone.”
The fraud scheme began when victims received a message on their computers warning that a virus had infected their devices. The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such as Microsoft or Apple. In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses.
In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all their cash and give it to fake “federal agents” for safekeeping. In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support. In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names. Regardless of which ruse was used, the result was the same: victims were convinced to give money to the scammers. Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.
According to court records, White and McNamara personally met with victims to collect packages of money from them, which they then passed on to higher-level members of the conspiracy. White also recruited others to join the conspiracy. A victim in West Michigan lost $398,000 to the conspiracy.
“The defendants participated in an elaborate fraud conspiracy that targeted mostly elderly victims, resulting in the loss of millions of dollars,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Every day, fraudsters are becoming more clever and organized to steal citizens’ hard-earned money, so it is important to report these crimes to the FBI for help. If you believe you may have fallen victim to a scheme like this, you can file a report at ic3.gov or contact our office at 313-965-2323.”
The Justice Department, FBI, and U.S. Postal Inspection Service recently announced the completion of “The Money Mule Initiative,” a national campaign to identify, disrupt, and criminally prosecute complex fraud schemes. These schemes often rely on “money mules” – people who receive fraudulent proceeds, retain a portion, and forward the remainder to a co-conspirator – to facilitate schemes that often originate overseas. Many “advance fee” fraud schemes target older Americans and use various false stories designed to manipulate victims to mail, wire, or hand money to “money mules” located in the United States.
This case was investigated by the Federal Bureau of Investigations (FBI), Homeland Security Investigations (HSI) in New Orleans, Louisiana, and the Lake County Sheriff’s Office in Michigan. Assistant United States Attorney Clay Stiffler prosecuted the case.
The charges against the other members of the conspiracy who have not yet pled guilty are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
For more information on preventing elder fraud and help for victims, visit the Department of Justice’s Elder Justice Initiative website, which includes a list of Michigan-specific resources. The FBI Elder Fraud website also provides several resources, including the following tips to help seniors protect themselves:
- Recognize scam attempts and end all communication with the perpetrator.
- Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
- Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
- Be cautious of unsolicited phone calls, text messages, mailings, and door-to-door services offers.
- Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
- Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
- Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
- Be careful what you download. Never open an email attachment from someone you don't know, and be wary of email attachments forwarded to you.
- Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts, and monitor your accounts and personal information for suspicious activity.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
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Tohatchi Man Charged with Second Degree Murder and Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – A Tohatchi man was charged by criminal complaint with second degree murder and using, carrying and brandishing a firearm during and in relation to a crime of violence for the fatal shooting of Jane Doe on the Navajo Reservation.
Augustus Benallie, 51, an enrolled member of the Navajo Nation, appeared before a federal judge today and was detained pending a detention hearing, which is scheduled for May 20, 2024.
According to the criminal complaint, on May 12, 2024, the Navajo Police Department received an emergency call regarding a shooting near Tohatchi, New Mexico, within the Navajo Nation. EMS responded to the coordinates the caller provided and found Jane Doe inside a residence with an apparent gunshot wound.
Medical personnel attempted to transport Jane Doe to a staging location for medivac to a trauma center, but Jane Doe died enroute.
Benallie was arrested on May 13, 2024, after stabbing himself with a kitchen knife.
If convicted of the current charges, Benallie faces up to life in prison.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant United States Attorney Mia Ulibarri-Rubin is prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Juveniles Charged as Adults with Armed Carjacking, Armed Robbery, and Related ChargesRead the Press Release
WASHINGTON – Keiphone Bennett, 17, Kevin Edwards, 16, and Asia Clark, 17, of Washington, D.C., were presented in Superior Court on May 16, 2024, and charged as adults for their participation in a series of armed carjackings and robberies, which took place between April 29 and May 6, 2024, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced.
According to the government’s evidence, over the course of seven days, Bennett, Edwards, and Clark, together or separately, committed a series of four armed carjackings and robberies in the District of Columbia. The defendants were arrested on May 7, 2024, after police saw a car used in one of the offenses and attempted to stop it. Rather than stop, the defendants attempted to evade police for approximately thirty minutes. Police pursued the car through the District, Virginia, and Maryland, before police ultimately succeeded in stopping it in the area of Chesapeake Street and Overlook Avenue Southeast.
Bennett, Edwards, and Clark were charged and presented in D.C. Superior Court. Bennett was charged by complaint with four counts of armed carjacking, one count of armed robbery, and five counts of possession of a firearm during a crime of violence. Edwards was charged by complaint with two counts of armed carjacking, one count of armed robbery, and three counts of possession of a firearm during a crime of violence. Clark was charged by complaint with one count of armed carjacking, one count of armed robbery, and two counts of possession of a firearm during a crime of violence. The Court ordered the defendants held without bond pending a preliminary hearing scheduled for June 7, 2024.
This case is being investigated by the Metropolitan Police Department (MPD). It is being prosecuted by Assistant U.S. Attorneys Anthony Cocuzza and John Parron.
An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The United States Attorney's Office for the Middle District of Tennessee Recognizes National Police WeekRead the Press Release
NASHVILLE – As part of National Police Week, United States Attorney Henry C. Leventis and the United States Attorney’s Office for the Middle District of Tennessee recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. National Police Week is observed Saturday, May 11 through Friday, May 17, 2024.
“Members of law enforcement and their families make tremendous sacrifices and take considerable risks every day to serve and protect us,” said Henry C. Leventis, United States Attorney for the Middle District of Tennessee. “I was reminded again this morning, at the Tennessee State Troopers Memorial, that far too many law enforcement officers are asked to make the ultimate sacrifice in service to their communities. National Police Week is a time to remember and honor those law enforcement officers that we have lost and a time to renew our commitment to supporting those who continue to serve in this noble profession.”
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil at 8:00 p.m. EDT. To view a recording of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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Staten Island Man Sentenced to 33 Months in Prison for $1.9 Million Baby Formula SchemeRead the Press Release
BROOKLYN, NY – Earlier today in federal court in Brooklyn, Vladislav Kotlyar was sentenced by United States District Judge William F. Kuntz II to 33 months in prison and ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million for his role in a scheme to fraudulently obtain specialty baby formula. Kotlyar pleaded guilty to mail fraud in March 2023.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the sentence.
Kotlyar submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed baby formula and forged those records to obtain specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by impersonating the infants’ parents, to falsely claim that shipments were damaged or contained the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula. A portion of Kotlyar’s scheme occurred during a national shortage of infant formula.
Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case. Assistant United States Attorney Claire S. Kedeshian of the Eastern District of New York’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
VLADISLAV KOTLYAR
Age: 45
Staten Island, New YorkE.D.N.Y. Docket No. 23-CR-75 (WFK)
Starkville man sentenced to 15 years in prison for distributing methamphetamineRead the Press Release
Oxford, MS – A Starkville man was sentenced today to 15 years in prison for drug trafficking.
According to court documents, Chad Boyd, aka Chadrick Robinson, 41, previously pled guilty to distribution of 50 grams or more of methamphetamine (actual), also known as “ice,” a Schedule II controlled substance. Boyd was sentenced Thursday by U.S. District Judge Michael P. Mills to 180 months in prison followed by 5 years of supervised release. Boyd was remanded to the custody of the U.S. Marshals following his sentencing hearing.
“Individuals who chose to spend their time selling meth and other illegal drugs in the Northern District of Mississippi should know that this office and our law enforcement partners will do all we can to see that they are removed from the community and sent to prison,” remarked U.S. Attorney Clay Joyner. “We hope that today’s sentence will serve as another reminder that the sale of illegal narcotics has detrimental and life-changing consequences for those who peddle the illicit substances and those who use them.”
“The sentencing of Mr. Chad Boyd, for the distribution of methamphetamine, underscores the positive impacts law enforcement has on the communities affected by the drug crisis,” said FBI SAC Robert A. Eikhoff. “Criminals like Mr. Boyd can expect the FBI and our federal, state, and local partners to remain steadfast in our resolve to remove offenders from the communities where they would otherwise bring the violence and the criminal activity inextricably linked to illegal drugs.”
This case was investigated by the FBI and the Starkville Police Department. The case was prosecuted by AUSA Robert Mims.
St. Charles Man Admits Buying Child Pornography OnlineRead the Press Release
ST. LOUIS – A man from St. Charles, Missouri on Friday admitted buying child sexual abuse material online.
Charles Lionel McGilberry, 41, pleaded guilty in U.S. District Court in St. Louis to one count of receiving child pornography and one count of possession of child pornography. He admitted making two separate purchases of child sexual abuse material on Aug. 28, 2022. Investigators later found 768 videos and 29 images containing child pornography in his Apple iCloud account and 152 videos and 2 images on his cell phone.
McGilberry is scheduled to be sentenced on October 23. He faces a mandatory minimum term of five years in prison. Each crime is punishable by up to 20 years in prison.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Nathan Chapman 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 the Department of Justice 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 www.justice.gov/psc.
Springfield man sentenced to 100 years in prison for creating, distributing child pornography by documenting sexual abuse of childrenRead the Press Release
DAYTON, Ohio – A Springfield, Ohio, man was sentenced in U.S. District Court to 1,200 months in prison for producing and distributing videos depicting the sexual abuse of children.
Marcus Leon Davis, 34, was arrested on Oct. 25, 2023. His case was unsealed today.
Davis received the maximum sentence on each count as charged and will serve those sentences consecutively.
“Davis’s sexual abuse is among the most abhorrent acts that one can perpetrate against a child. If his behavior against the victims wasn’t bad enough, he chose to record his sexual abuse against them,” said U.S. Attorney Kenneth L. Parker. “By publishing videos of his sexual abuse against these victims, Davis ensured the abuse will never end. Each time one of those images or videos is shared, traded, downloaded and viewed the children are victimized again. This sentence will forever protect the community from future harm committed by Davis.”
"This sentencing was the result of an intensive investigation by the U.S. Secret Service and our law enforcement partners," said Yvonne DiCristoforo, Special Agent in Charge of the Secret Service's Cincinnati Field Office. "The Secret Service and our partners are working relentlessly so predators that exploit innocent children face justice for their heinous actions."
According to court documents, from January 2022 until October 2023, Davis sexually abused children and documented the abuse on video.
The defendant published the videos on a child pornography website. Investigators have now tracked the content to other users and websites.
Davis pleaded guilty in February 2024 to two counts of producing child pornography and two counts of distributing child pornography.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service; and Springfield Police Chief Allison Elliott announced the sentence imposed on May 13 by U.S. District Judge Michael J. Newman. Assistant United States Attorneys Amy M. Smith and Elizabeth L. McCormick are representing the United States in this case.
U.S. Attorney Parker commended the investigation by the U.S. Secret Service, who worked with the Queensland Police Service, Australian Federal Police, Europol and U.S. Homeland Security Investigations to quickly identify and locate Davis based on the images of child sexual abuse he shared online.
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Southwest Georgia Man Convicted of Illegally Possessing a FirearmRead the Press Release
VALDOSTA, Ga. – A Moultrie, Georgia, resident previously convicted of armed robbery was found guilty by a federal jury this week of illegally possessing a firearm.
Maurice A. Ridley, 47, was found guilty of one count of illegal possession of a firearm by a convicted felon on May 14. The trial began on May 13 before U.S. District Judge W. Louis Sands at the federal courthouse in Valdosta. Ridley faces a maximum sentence of ten years in prison to be followed by three years of supervised release and a maximum $250,000 fine.
“It is illegal for convicted felons to possess firearms, and a repeat offender caught with a loaded gun will face federal prosecution,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level and across the Middle District of Georgia is working to reduce violent crime and make our communities safer.”
“The FBI is proud to work with our local partners to prevent violence in our communities by removing repeat offenders illegally possessing firearms from the streets by any legal means necessary,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta Office. “We remain steadfast in reducing violent crime in Moultrie and throughout the state.”
“The Moultrie Police Department is pleased to once again to join with our federal partners to make our city streets a little safer. Project Safe Neighborhoods has been an overwhelming success, and we are extremely proud to contribute to that success with our own FBI Task Force Officer, Captain Steve Exum. We would like to thank everyone involved with this case and acknowledge their commitment to our great community,” said Moultrie Police Chief Chad L. Castleberry.
According to court documents and evidence presented at trial, Moultrie Police Department officers were patrolling a neighborhood on Feb. 21, 2020, and observed Ridley paying close attention to the marked police vehicles as they drove by him. Officers in an unmarked police vehicle observed Ridley toss a plastic bag of suspected narcotics in a yard. When officers in that unmarked car pulled up behind Ridley to speak with him, Ridley fled on foot. He was given verbal commands to stop, and he refused. A firearm fell from Ridley as he ran away. Ridley ran through the back yards of two private residences on Second Avenue Northwest. Other officers joined the chase and apprehended Ridley after a brief struggle on the ground. The firearm that fell from Ridley was a loaded semi-automatic handgun with an obliterated serial number. Ridley was convicted in 1996 for armed robbery in Colquitt County, Georgia, Superior Court for which he was sentenced to serve 20 years in prison. It is illegal for a convicted felon to possess a firearm.
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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
The case was investigated by the FBI and the Moultrie Police Department.
Assistant U.S. Attorney Sonja Profit is prosecuting the case for the Government.
Sixteen Individuals Charged for Their Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – Nine people have been arrested for their alleged roles in a drug trafficking organization that distributed fentanyl, heroin, cocaine, and methamphetamine in Newark, U.S. Attorney Philip R. Sellinger announced today.
Jaquan Beard, 25, Joseph Feliciano, 40, Carlos Lopez, 50, George Lopez, 49, Tyree Malone, 36, and David Quinones, 29, all of Newark; Wilberto Cotto, 41, Reinaldo Cruz, 44, Steven Garcia, 48, Adolphus Hunter, 48, Jermaine Jones, 37, and Nelson Valentin, 37, all of Elizabeth, New Jersey; Joel Hernandez, 28, of Parlin, New Jersey; Jonathan Arce, 36, of Belleville, New Jersey; and Jose Correa, 53, of Yardley, Pennsylvania, are each charged by complaint with one count of conspiracy to distribute methamphetamine, cocaine, fentanyl, and heroin. George Lopez is also charged with one count of possession with intent to distribute methamphetamine and cocaine, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegal possession of firearms and ammunition.
Reynaldo Cruz, 27, of Elizabeth, is charged by complaint with one count of possession with intent to distribute controlled substances and one count of conspiracy to use and carry a firearm during and in relation to a drug trafficking crime.
Reynaldo Cruz and Quinones are scheduled to appear today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. Arce, Cotto, Reinaldo Cruz, Feliciano, Hernandez, Hunter, and Carlos Lopez appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on May 16, 2024, and were detained. Jones, George Lopez, and Valentin are detained on state charges. Beard, Correa, Garcia, and Malone are at large.
According to documents filed in this case and statements made in court:
Reinaldo Cruz, Feliciano, Hernandez, and Quinones distributed controlled substances on behalf of the drug trafficking organization (DTO) in and around Essex and Union counties, New Jersey, from several specific distribution locations. Beard, Correa, Cotto, Garcia, Hunter, Jones, Carlos Lopez, Malone, and Valentin, in turn, received controlled substances, often from one of these locations, and distributed them on behalf of the DTO. Arce served as a source of supply of controlled substances for the DTO. The investigation has also revealed that George Lopez provided advice and connections regarding sources of supply of controlled substances from jail while he received cash from the DTO. Many of the defendants are members and associates of the Latin Kings street gang, and some members are known to possess firearms in connection with the DTO’s activities. The investigation has revealed that the DTO distributed in excess of 50 grams of methamphetamine, 5 kilograms of cocaine, 40 grams of fentanyl, and 100 grams of heroin.
The methamphetamine and cocaine conspiracy count carries a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine. The fentanyl and heroin conspiracy and methamphetamine and cocaine possession counts each carries a mandatory minimum penalty five years in prison, maximum potential penalty of 40 years in prison, and a $5 million fine. The possession with intent to distribute controlled substances count carries a maximum potential penalty of 20 years in prison and a $1 million fine. The possession of firearms in furtherance of a drug trafficking crime count carries a mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed. The conspiracy to use and carry a firearm during and in relation to a drug trafficking crime count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The illegal possession of firearms and ammunition count carries a maximum potential penalty of 15 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel and Chief Harvey A. Barnwell; and the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked the Union County Police Department, under the direction of Chief Martin Mogensen; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the Essex County Sherriff’s Department, under the direction of Sheriff Armando B. Fontoura; the Hudson County Department of Corrections, under the direction of Director Becky Scott; the Cranford Police Department, under the direction of Chief Ryan Greco; the Bloomfield Police Department, under the direction of Chief George Ricci; the New Jersey State Police SWAT Team, under the direction of Col. Patrick J. Callahan: the Newark Police Department, under the direction of Public Safety Director Fritz Fragé and Chief Emmanuel Miranda; the Hudson County Regional SWAT Team, under the direction of Prosecutor Esther Suarez; and the U.S. Marshals Services, under the direction of Special Agent in Charge Juan Mattos Jr.
The government is represented by Assistant U.S. Attorneys John Mezzanotte of the Organized Crime and Gangs Unit and Eli Jacobs of the General Crimes Unit of the U.S. Attorney’s Office.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
reynaldocruz.complaint.pdf arceetal.complaint.pdfSix Defendants Indicted on Federal Fraud Charge for Allegedly Staging Robberies to Apply for Immigration VisasRead the Press Release
CHICAGO — Six individuals conspired to stage armed robberies in Chicago and the suburbs so that the purported victims could apply for U.S. immigration visas reserved for certain crime victims, according to an indictment unsealed in federal court in Chicago.
PARTH NAYI and KEWON YOUNG allegedly organized and participated in staged armed robberies at restaurants, coffee shops, liquor stores, and gas stations in Chicago and the suburbs of Lombard, Elmwood Park, St. Charles, Hickory Hills, River Grove, Lake Villa, and South Holland, as well as restaurants in Rayne, La., and Belvidere, Tenn. The indictment alleges that BHIKHABHAI PATEL, NILESH PATEL, RAVINABEN PATEL, and RAJNIKUMAR PATEL arranged with Nayi to be “victims” of the staged robberies so that they could submit applications for U nonimmigrant status (“U-visa”), which is set aside for victims of certain crimes who have suffered mental or physical abuse and are helpful to law enforcement or government officials in an investigation or prosecution.
The indictment alleges that individuals paid Nayi thousands of dollars to participate in the scam. During the staged robberies, individuals acting as robbers brandished what appeared to be firearms, approached the purported victims, and demanded money and property, the indictment states. Afterwards, some of the purported victims submitted forms to local law enforcement to obtain certification that they were victims of a qualifying crime and had been or would be helpful in the investigation, the indictment states. Upon receiving certification, some of the purported victims then submitted fraudulent U-visa applications to U.S. Citizenship and Immigration Services predicated upon their alleged status as a robbery victim.
Nayi, 26, of Woodridge, Ill., Young, 31, of Mansfield, Ohio, Bhikhabhai Patel, 51, of Elizabethtown, Ky., Nilesh Patel, 32, of Jackson, Tenn., Ravinaben Patel, 23, of Racine, Wis., and Rajnikumar Patel, 32, of Jacksonville, Fla., are charged with conspiracy to commit visa fraud. Ravinaben Patel is also charged with an individual count of making a false statement in a visa application. The conspiracy charge is punishable by a maximum sentence of five years in federal prison, while the false statement charge against Ravinaben Patel is punishable by up to ten years.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The government is represented by Assistant U.S. Attorneys Matthew D. Moyer and Saqib M. Hussain.
The public is reminded that an indictment contains only charges and 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.
Nayi et al indictmentSioux City Man Sent to Federal Prison for Receiving and Possessing Child PornographyRead the Press Release
A man who was convicted by a jury for receiving and possessing child pornography was sentenced, May 16, 2024, to 16 years in federal prison.
Anthony Michael Tucker age 35, from Sioux City, Iowa, received the prison term after a jury verdict finding him guilty of Receipt of Child Pornography and Possession of Child Pornography.
Evidence at trial showed that in January 2022, the National Center for Missing and Exploited Children received a Cybertip from Google that accounts belonging to Tucker contained over 85 images and seven videos of child sexual abuse material. The images and videos included depictions of sadistic or masochistic conduct as well as prepubescent children and toddlers. During trial, jurors watched a video-recorded interview of Tucker speaking with an Iowa DCI agent where he admitted he was responsible for the content on the Google account and stated, “there’s more that I run across…those are just the ones I kept.” In 2010, Tucker was previously convicted for Lascivious Acts with a Child. Tucker, then 21, had sexual intercourse with a 13-year-old female.
Tucker was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Tucker was sentenced to 192 months’ imprisonment. He was ordered to pay $3,000 in restitution to the victims of the offense. He was also ordered to pay $1,200 in additional fines and assessments. Tucker must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Tucker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe 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.”
The case was investigated by the Iowa Department of Public Safety, Division of Criminal Investigation, Cyber Crime Bureau and prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-4045.
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