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Thursday 16 May 2024
Muskogee Resident Sentenced for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Karrie Michelle Brown, age 32, of Muskogee, Oklahoma, was sentenced to time served for one count of Distribution of Methamphetamine.
The charges arose from investigations by the Oklahoma Bureau of Narcotics and the Oklahoma State Bureau of Investigation.
On March 27, 2023, Brown pleaded guilty to one count of Distribution of Methamphetamine. According to investigators, Brown sold approximately 55.25 grams of methamphetamine on December 11, 2019.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee.
Assistant United States Attorney Joshua Satter represented the United States.
Muskogee Resident Pleads Guilty to Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Patrick Lamar Tims, Jr., age 22, of Muskogee, Oklahoma, pleaded guilty to an Information of one count of Robbery in Indian Country.
The Information alleged that on or about January 16, 2024, Tims took by force, violence, and intimidation, a thing of value, namely, United States currency, from a Family Dollar located in Muskogee, Oklahoma. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, United States Magistrate Judge for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Tims was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Mexico Resident Arrested on Complaint Alleging She Drove Car Containing More Than 90 Pounds of Fentanyl Pills Stored in ItRead the Press Release
RIVERSIDE, California – A U.S. citizen living in Mexico is expected to make her initial appearance in federal court today on a criminal complaint alleging she possessed more than 90 pounds of fentanyl pills in her car, which was pulled over on Interstate 10 in Indio earlier this week.
Adriana Galindo, 34, of San Luis Río Colorado, Mexico, is charged in the complaint with one count of possession with intent to distribute a controlled substance.
Galindo is expected to make her initial appearance this afternoon in United States District Court in Riverside. The complaint was filed May 15.
According to an affidavit filed with the complaint, Border Patrol agents on May 14 were conducting vehicle stops along I-10 in the Indio area. Agents stopped a 2015 black Chevrolet Malibu in Indio. Galindo, accompanied by her juvenile son, was the car’s driver and she allegedly told agents they were driving to Los Angeles to purchase clothing for a retail store in Mexico and were planning to return home later that day.
Galindo consented to a search of the car, and a trained narcotics K-9 conducted a free-air sniff of the vehicle and alerted fellow law enforcement to the presence of narcotics odor, the affidavit alleges.
An initial search of the vehicle yielded a single blue pill of suspected fentanyl, the affidavit states. After seizing the vehicle to a nearby Border Patrol station for further search, law enforcement seized approximately 93.3 pounds (42.3 kilograms) of fentanyl pills were discovered in a non-factory compartment located under the car’s front seats. Agents then arrested Galindo. Her son was released to the custody of his aunt, a California resident.
A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Galindo would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration and United States Border Patrol are investigating this matter.
Assistant United States Attorney Danbee C. Kim of the General Crimes Section is prosecuting this case.
Memphis Men Plead Guilty to String of Arsons at Tax Service BusinessesRead the Press Release
Memphis, TN – Dantoni Colbert, 35, and Edward Matthews, Jr., 33, pled guilty to charges of conspiracy to commit arson, and arson of three separate tax service businesses. The arson crimes occurred in Memphis in February 2023. United States Attorney Kevin G. Ritz announced the guilty pleas today.
According to the information presented in court, on February 6 and 7, 2023, Colbert and Matthews conspired to set fire to three different buildings that were occupied by Washington Tax Services in the Memphis area.
On February 8, 2024, Matthews pled guilty to all four counts of the indictment before United States District Judge Thomas L. Parker. On May 15, 2024, Colbert also pled guilty as charged to all four counts before Judge Parker.
Both defendants face a mandatory minimum sentence of 5 years in prison and a maximum of up to 20 years in federal prison, plus up to a $250,000 fine, and up to 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Fire Department.
United States Attorney Ritz stated: “Arson is a dangerous crime that threatens the safety of the community—and in particular, the safety of first responders in our city. Individuals who commit arson of businesses in West Tennessee will continue to get the full attention of law enforcement.”
“The criminal act of arson poses an unnecessary risk to the citizens and the first responders of the city of Memphis as well as having a negative impact on the financial systems of the community,” said ATF Nashville Special Agent in Charge Marcus Watson. “Arson is used to intimidate, harm, or for criminal profit through fraudulent insurance proceeds. ATF is committed to protecting the public and will continue to vigorously investigate these criminal acts.”
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Greg Wagner and Stephen Hall, who are prosecuting this case, as well as law enforcement partners investigating the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates
Massachusetts Business Owner Arrested for over $18 Million PPP FraudRead the Press Release
BOSTON – A Carlisle man has been arrested and charged for allegedly submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of multiple companies he owns and controls.
Durgaprasad Rao, 65, was charged with two counts of wire fraud. Rao was arrested yesterday and will make an initial appearance in federal court in Boston at 2 p.m. this afternoon. He remains in custody pending a detention hearing scheduled for May 17, 2024.
According to the charging documents, Rao is the owner and operator of Accelerated Engineering, LLC., a product engineering service provider, and Upstream Global Services, Inc., a software company that provides software consulting services and temporary staffing needs.
It is alleged that, between April 2020 and May 2021, Rao submitted numerous fraudulent applications seeking over $18 million in PPP funds for various companies in multiple states including companies in Massachusetts, Wisconsin and Georgia. Nine of the fraudulent PPP loan applications Rao allegedly submitted were for companies he owned and controlled. For Rao’s Massachusetts-based companies, he received nearly $7 million in PPP loans – of which, $1.5 million was approved for forgiveness.
Rao’s PPP loan applications allegedly contained false statements regarding payroll and the number of employees that worked for his companies and included fraudulent supporting documents, including false tax return documents and false payroll records. It is further alleged that Rao misused the funds he received by, among other things, transferring the funds to foreign businesses he owned and purchasing a luxury condominium in New York City.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Carlisle Police Chief Andrew Amendola made the announcement today. Assistant U.S. Attorneys Brian Sullivan and David Tobin of the Major Crimes Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Pleads Guilty to Multi-Million Dollar Scheme to Defraud ConsumersRead the Press Release
PEORIA, Ill. –Jeffrey D. Gibbs, 58, of Farmer City, Illinois pleaded guilty on May 14, 2024, to 6 felony charges related to his scheme to defraud local boat owners and the banks that financed his business.
Gibbs and co-defendant Kara M. Wilkey, 49, of Maroa, Illinois, were indicted in December 2020, with multiple counts of wire fraud, bank fraud, mail fraud and aggravated identity theft. Wilkey pleaded guilty to 6 of the charges in August 2021. Sentencings for both Gibbs and Wilkey have been scheduled for September 19, 2024, at 9:00 am in the U.S. Courthouse in Peoria, Illinois before U.S. District Judge James E. Shadid.
Gibbs and Wilkey were two employees of the now defunct boat and watercraft dealership, Mid Illinois Boats, Inc., that did business as Clinton Marine II. Gibbs and Wilkey used the dealership to defraud customers and lending institutions out of approximately $4.7 million.
In pleading guilty, Gibbs and Wilkey admitted that, from January 2014 to July 2019, they used their positions with Clinton Marine II, which included management of day-to-day operations, to carry out a fraud involving floorplan financing. The fraud included obtaining loans on fictitious boats and on false transactions; taking out loans using forged signatures; selling boats on behalf of customers, but not paying off the customer’s loan or remitting payment to the seller; and, collecting payment for taxes, titles, and fees, but failing to pay those expenses.
Both Gibbs and Wilkey were released on statutory conditions of release pending sentencing.
Gibbs plead guilty to 3 counts of wire fraud, 2 counts of mail fraud and 1 count of aggravated identity theft. He faces total statutory penalties of up to 102 years’ imprisonment, a fine of $1,250,000, or twice the loss to the victims, and up to 4 years’ supervised release upon completion of imprisonment.
Wilkey pleaded guilty to 3 counts of wire fraud, 2 counts of bank fraud and 1 count of aggravated identity theft. She faces total statutory penalties of up to 122 years’ imprisonment, a fine of $3,000,000, or twice the loss to the victims, and up to 5 years’ supervised release upon completion of imprisonment.
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, with the assistance of the DeWitt County Sheriff’s Office; the Illinois Department of Natural Resources; and the Illinois Secretary of State. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the case prosecution.
Man Charged with Murder in Relation to Methamphetamine TraffickingRead the Press Release
A California man made his initial appearance in the District of Hawaii today to face charges related to his role in the murder of another man in connection with drug trafficking.
According to court documents, on March 27, 2021, Filimone Tavake, 36, of San Francisco, allegedly killed a Hawaii resident at the victim’s home in connection to a drug distribution conspiracy. Tavake was arrested on March 22 in California.
Tavake is charged with carry, use and discharge of a firearm during and in relation to a drug trafficking crime; causing the death of a person through use of a firearm; killing while engaged in conspiracy to distribute and possess with intent to distribute methamphetamine; and conspiracy to distribute and possess with intent to distribute methamphetamine. If convicted, Tavake faces a mandatory minimum sentence of 20 years in prison and a maximum penalty of life in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Clare E. Connors for the District of Hawaii; Special Agent in Charge Steven Merrill of the FBI; and Chief Arthur “Joe” Logan of the Honolulu Police Department made the announcement.
The FBI and Honolulu Police Department are investigating the case.
Trial Attorney Christina Taylor of the Criminal Division’s Violent Crime and Racketeering Section and the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Admits Phelps County Carjacking and Gun Store BurglaryRead the Press Release
ST. LOUIS – A Phelps County, Missouri man on Thursday admitted carjacking someone at knifepoint in 2023 and stealing pistols from a gun store.
Martavious Jones, 19, pleaded guilty to one carjacking charge and a charge of stealing a firearm from a federally licensed dealer. He admitted that on Sept. 11, 2022, he and another person broke a window at a Rolla gun store to get inside. They stole four handguns, including an AR-style pistol, as well as a large quantity of ammunition and firearm accessories. Two of the guns were later found in a bag near Jones’ home.
Jones also admitted that on March 1, 2023, in Rolla, he asked a man for a ride in his 2013 Nissan Altima. The driver agreed. Once they were moving, Jones pulled out a large knife and held it to the driver’s throat. He told the victim to turn over his keys and get out the car. Jones took the driver’s cell phone, telling him he would drop it out of the window before driving away. Jones did, but also dropped his own phone. He was later spotted by police and fled in the car before fleeing on foot. He left his wallet and the knife behind.
Jones is scheduled to be sentenced on August 21. The carjacking charge carries a penalty of up to 15 years in prison, a fine of up to $250,000 or both prison and a fine. The stealing charge carries a penalty of up to 10 years in prison, a $250,000 fine, or both.
The Rolla Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Luzerne County Man Charged with Threatening to Murder the PresidentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jordan Gee, age 37, of Nanticoke, Pennsylvania, was indicted by a federal grand jury on charges of threats against the President and interstate communications with a threat.
According to United States Attorney Gerard M. Karam, the indictment alleges that Gee posted several videos on the Internet shortly before President Joseph Biden’s visit to Scranton, Pennsylvania, for a campaign event on April 16, 2024. In those videos, Gee made several threats to the President and others, including, “Joe Biden: I’m going to kill you and your whole cabinet,” and, “If you come to my city in Scranton, Pennsylvania, I’m cutting your f**king head off in front of everybody; I promise.”
This matter is being investigated by the United States Secret Service. Assistant United States Attorney Kyle A. Moreno is prosecuting the case.
The maximum penalty under federal law for these offenses is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Louisville Woman Sentenced to over 1 Year in Federal Prison for CARES Act FraudRead the Press Release
Louisville, KY – A Louisville, Kentucky, woman was sentenced yesterday to 1 year and 2 months in federal prison for charges related to her submission of four fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, made the announcement.
According to court documents, Darlene McCoy, 67, was sentenced to 1 year and 2 months in prison, followed by a 3-year term of supervised release, for four counts of wire fraud, one count of bank fraud, and two counts of money laundering related to fraud involving the CARES Act financial assistance program.
There is no parole in the federal system.
McCoy was also ordered to pay $165,416 in restitution.
McCoy filed, or caused to be filed, one fraudulent application for an Economic Injury Disaster Loan (EIDL) and three applications for Paycheck Protection Program (PPP) loans between June 18, 2020, and May 19, 2021, seeking more than $182,000 and resulting in the theft of $165,416. McCoy utilized the entities Letz Get It Crackin’, LLC and Darlene McCoy d/b/a Reds Creative Events to file the applications. McCoy organized Letz Get It Crackin’ after the onset of the Covid 19 pandemic and did not register the entity Darlene McCoy with the Commonwealth of Kentucky. McCoy falsely exaggerated the number of employees, revenue, cost of goods sold, and payroll expenses of those entities in the fraudulent applications and provided false tax forms in support of the applications.
This case was investigated by the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorney Nicole Elver prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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.
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Laredoan sent to prison for producing child pornography of sexual abuse of minor relativeRead the Press Release
LAREDO, Texas – A 26-year-old man has been ordered to prison for production and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Aaron Negrete pleaded guilty March 7, 2023.
U.S. District Judge Keith P. Ellison has now sentenced Negrete to 225 and months for the production and possession of child pornography convictions, respectively. They will run concurrently for a total 225-month-term of imprisonment. At the hearing, the court also heard additional information including testimony from the minor victim’s mother, detailing the impact of Negrete’s actions. In handing down the prison terms, the court noted severity of the his crimes. Negrete was further ordered to pay $30,000 in restitution to known victims of the child pornography possessed and will serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Negrete will also be ordered to register
“The homes of relatives are supposed to be safe places, especially for kids, but Aaron Negrete used his residence to harm his relative numerous times, committing the most heinous acts one can perpetrate on another, let alone a child," said Hamdani. "He filmed himself molesting the minor then shared the videos and images on the internet, extending the child’s victimization into perpetuity. Our hope is this significant sentence can give the victim some peace knowing Negrete is not lurking in anyone’s home, but instead behind bars for nearly 20 years to come.”
“The Aaron Negrete sentence today sets the tone for how we will handle child predators in our state,” said Special Agent in Charge Craig Larrabee, Homeland Security Investigations (HSI) San Antonio. “If you harm a child, we will investigate you, we will arrest you, and we will bring the full weight of the law against you. HSI urges our South Texas community to remain vigilant against child predators and to immediately report suspected cases of child exploitation to HSI.”
The investigation began when authorities learned an IP address associated with Negrete had uploaded child pornography online.
On Oct. 12, 2022, law enforcement executed a search warrant at his home. At that time, they found and seized several electronic devices which contained child pornography and took Negrete into custody. He ultimately admitted to downloading an application he used to search for child pornography which included abuse of babies and toddlers.
The investigation further revealed he had sexually abused a minor relative. He recorded himself doing so and shared the recordings and photographs online. The child had visited Negrete and stayed at his residence in Laredo. On more than 50 instances, Negrete forced the victim to rub his genitals and took naked pictures, among other things. The minor was told to keep it a secret to prevent “something bad” from happening.
Negrete will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department as part of the Child Exploitation Task Force which also includes FBI, Texas Department of Public Safety, U.S. Marshals Service and United Independent School District Police.
Assistant U.S. Attorney Michael Makens prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Kansas woman sentenced for drug conspiracy crimesRead the Press Release
TOPEKA, KAN. – A Kansas woman was sentenced to 20 years in prison after being found guilty of multiple charges related to drug trafficking.
According to court documents, a federal jury convicted Theresa Hight, 60, of Topeka, of one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of maintaining a drug-involved premises, and two counts of distribution of a controlled substance. The jury found Hight not guilty of one count of distribution and posses with the intent to distribute controlled substances.
Three additional co-defendants pled guilty in the case. Shelli Lynn Zarazua, 59, of Topeka pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances. On May 1, 2024, Zarazua was sentenced to 120 months in prison.
Anabell Madrigal, 58, of Chula Vista, California, pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances and on April 24, 2024, was sentenced to 24 months in prison.
Allen Joseph Baker, 45, of Topeka pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances and on May 1, 2024, was sentenced to 105 months in prison.
In March 2021, law enforcement officers received information that a courier was scheduled to drop off illegal narcotics at Hight’s residence in Topeka. While conducting surveillance, officers observed Madrigal arrive at the house. After a short time inside, Madrigal, Zarazua, Hight, and Baker all left in separate vehicles. Officers conducted traffic stops on each of the suspects. They found a pound of methamphetamine on Baker’s person as well as 17 bundles of methamphetamine in his vehicle. Hight had an ounce of methamphetamine and digital scales. Officers discovered three bundles of cash concealed in the panels of Madrigal’s vehicle. The total weight delivered on this occasion was approximately 20 pounds. Officers learned this was the second delivery which occurred at Hight’s residence.
The Shawnee County Sheriff’s Office and the Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorneys Lindsey Debenham and Sara Walton prosecuted the case.
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Justice Department Submits Proposed Regulation to Reschedule MarijuanaRead the Press Release
The Justice Department today announced that the Attorney General has submitted to the Federal Register a notice of proposed rulemaking initiating a formal rulemaking process to consider moving marijuana from a schedule I to schedule III drug under the Controlled Substances Act (CSA).
Marijuana has been classified as a schedule I drug since Congress enacted the CSA in 1970. On Oct. 6, 2022, President Biden asked the Attorney General and the Secretary of Health and Human Services (HHS) to launch a scientific review of how marijuana is scheduled under federal law. After receiving HHS’s recommendations last August, the Attorney General sought the legal advice of the Justice Department’s Office of Legal Counsel (OLC) on questions relevant to this rulemaking. In light of HHS’ medical and scientific determinations, and OLC’s legal advice, the Attorney General exercised his authority under the law to initiate the rulemaking process to transfer marijuana to schedule III.
The rescheduling of a controlled substance follows a formal rulemaking procedure that requires notice to the public, and an opportunity for comment and an administrative hearing. This proposal starts the process, where the Drug Enforcement Administration will gather and consider information and views submitted by the public, in order to make a determination about the appropriate schedule. During that process, and until a final rule is published, marijuana remains a schedule I controlled substance.
The notice of proposed rulemaking submitted by the Department can be viewed here, and the OLC memorandum regarding questions related to the potential rescheduling of marijuana can be found here.
Learn more about the rulemaking process here.
Justice Department Secures Agreement with Shelby County, Tennessee, District Attorney General to Cease Enforcement of State Law that Discriminates Against People with HIVRead the Press Release
The Justice Department announced today that the Shelby County, Tennessee, District Attorney General (DA) has agreed to cease prosecution of individuals living with human immunodeficiency virus (HIV) under Tennessee’s aggravated prostitution law. The DA will also adopt reforms to correct discrimination against people living with HIV who were subjected to discriminatory and harsher penalties under the law.
This agreement resolves the Justice Department’s finding that the Shelby County DA violated the Americans with Disabilities Act (ADA) by enforcing Tennessee’s aggravated prostitution law that imposed enhanced criminal penalties based on a person’s HIV status. The prosecutions were carried out without consideration of risk of transmitting HIV, and the harsher penalties included being charged with a felony (as opposed to a misdemeanor) and being required to register for life as a sex offender.
“Living with HIV is not a crime and the continued enforcement of laws that criminalize a person based on their HIV status, regardless of risk, perpetuate bias, stereotypes and ignorance about HIV,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are pleased that Shelby County District Attorney has agreed to cease enforcement of this discriminatory law, and that future prosecution decisions will reflect the significant advances made in HIV prevention and treatment, consistent with the ADA.”
Under this agreement, the DA will not prosecute individuals under the aggravated prostitution law or for violations of the sex offender registry requirements that have resulted from prior convictions under that law. The DA will also notify anyone eligible of their ability to petition for vacatur of their convictions, termination of the remainder of their sentences and elimination of fees owed.
This agreement also requires the Shelby County DA to adopt policies and train prosecuting attorneys on the ADA’s anti-discrimination requirements relating to HIV, a disability under the ADA. Under the agreement, the DA will also report its compliance with the agreement to the department.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Justice Department Announces Arrest, Premises Search, and Seizures of Multiple Website Domains to Disrupt Illicit Revenue Generation Efforts of Democratic People’s Republic of KoreaRead the Press Release
The Justice Department today announced a series of coordinated and court-authorized actions to disrupt the illicit revenue generation efforts of Democratic People’s Republic of Korea (DPRK) information technology (IT) workers. As part of a Department-wide initiative – the DPRK RevGen: Domestic Enabler Initiative – the Department will continue to prioritize high-impact, strategic, and unified enforcement and disruption operations across the U.S. Government targeting U.S.-based enablers of unlawful DPRK IT workers overseas. Today’s announcement follows successful Department-led action in October 2023 which targeted similar and related conduct.
Under the Initiative, launched in March 2024 by the National Security Division and FBI Cyber and Counterintelligence Divisions, Department prosecutors and agents are prioritizing:
- The identification and shuttering of U.S.-based “laptop farms” (i.e., locations hosting laptops provided by victim U.S. companies to individuals they believed were legitimate U.S.-based freelance IT workers);
- Investigations and prosecutions of U.S.-based witting enablers, as appropriate;
- International partnerships with like-minded countries that also host IT worker support networks;
- Improved speed, tempo, and content of notifications to victims, primarily unwitting U.S. companies; and
- Enhanced partnerships with private sector online service providers, including in terms of identifying IT worker infrastructure and personas, improving the providers’ in-house fraud detection methods, and educating compliance personnel and the public regarding the threat (see e.g., May 2022 and October 2023 advisories, as well as a new advisory released today by the FBI).
“Today’s announcement reveals the complex web of deception and facilitators that is central to the North Korean regime’s schemes to evade international sanctions to finance its weapons program,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The disruptions announced today represent a focused and continuing effort to dismantle these illicit networks and thereby prevent North Korean IT workers from victimizing unwitting U.S. companies. Through such sustained campaigns against this threat, the Department will continue to enhance our collective national security and cybersecurity.”
“The FBI and its partners are committed to leveraging everything at our disposal to disrupt North Korean IT workers from subverting the rule of law in order to fund the DPRK’s weapons of mass destruction program,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue our work of maintaining order in the cyber space and preventing bad actors from taking advantage of it for their strategic geopolitical objectives.”
As alleged in court documents, the DPRK government dispatched thousands of skilled IT workers to live abroad, primarily in China and Russia, with the aim of deceiving U.S. and other businesses worldwide into hiring them as freelance IT workers, to generate revenue for its weapons of mass destruction (WMD) programs. The DPRK IT workers’ scheme involved the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers, and witting and unwitting third parties located in the United States and elsewhere. As described in a May 2022 tri-seal public service advisory released by the FBI, Department of the Treasury and Department of State, such IT workers have been known individually earn up to $300,000 annually, generating hundreds of millions of dollars collectively each year, on behalf of designated entities, such as the North Korean Ministry of Defense and others directly involved in the DPRK’s UN-prohibited WMD programs.
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Consistent with the goals of this initiative and prior to its inception, the District of Maryland led enforcement actions against Minh Phuong Vong of Bowie, Maryland, who was arrested this morning for his alleged participation in a scheme to assist overseas IT workers – posing with his identity – in working at U.S. companies in remote IT positions. Earlier this week, the FBI executed a premises search at Vong’s residence.
Separately, the Eastern District of Missouri led a seizure action against 12 website domains used by DPRK IT workers to mimic western IT services firms to support the bona fides of their attempts to secure remote work contracts for U.S. and other businesses worldwide.
“The alleged schemes likely benefitted the Democratic People’s Republic of Korea in evading U.S. sanctions and victimizing American businesses,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “By stealing the identities of American citizens to commit fraud, they obtained proceeds which likely helped fund the North Korean regime’s priorities including nuclear weapons programs. The FBI and our partners are committed to rooting out insidious efforts that undermine our economic and national security.”
Vong Premises Search, Complaint, and Arrest – District of Maryland
As part of an investigation pre-dating the initiative, Vong was arrested today and charged by criminal complaint with conspiracy to commit wire fraud.
According to the criminal complaint, Vong and other conspirators engaged in a scheme to fraudulently gain employment at companies located in the United States. These U.S. companies provided information technology services, including software development services, to the U.S. government. While Vong was nominally employed by these U.S. companies, he was not in fact the individual performing work for them. Remote IT workers based overseas instead posed as Vong and performed Vong’s job duties.
According to the affidavit in support of the criminal complaint, in March 2023, as part of Vong’s hiring process with a U.S. company, the Chief Executive Officer of the U.S. company conducted a video call with Vong where he verified Vong’s identity with a U.S. passport and Maryland driver’s license. A different individual, however, had appeared for an earlier interview for the position and later for work meetings during the course of Vong’s employment. That individual, charged as a John Doe defendant in the criminal complaint, is a native of North Korea and a self-described software developer who claimed to be living in Shenyang, China.
As alleged in the complaint, throughout the course of Vong’s employment with U.S. company, remote IT workers based overseas performed Vong’s job duties by accessing protected victim computer systems via remote internet connections and posing as Vong on work-related videoconferences. Vong also shipped one or more laptops to an address in China. Vong also received payment from U.S. Company and other employers, which he then transmitted to individuals located overseas, keeping a percentage for himself.
The FBI Baltimore Field Office is investigating the case.
Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland is prosecuting the case with valuable assistance provided by Trial Attorney Alexandra Cooper-Ponte of the National Security Division’s National Security Cyber Section.
Fraudulent DPRK IT Work Website Seizures – Eastern District of Missouri
On May 15, pursuant to a court order issued in the Eastern District of Missouri, the Department seized 12 website domains used by DPRK IT workers to hide their true identities and locations when applying to do remote work for U.S. and other businesses worldwide. The specific group of DPRK IT workers who created these domains work for the PRC-based Yanbian Silverstar Network Technology Co. Ltd. and the Russia-based Volasys Silver Star, both of which were sanctioned in 2018 by the Department of the Treasury. These IT workers funneled income from their fraudulent IT work back to North Korea using online payment services and Chinese bank accounts.
“Shutting down these websites is just one of the ways we are working to disrupt the flow of money to the North Korean weapons program,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “The business community can do their part by carefully vetting their online hires.”
The 12 website domains seized yesterday, partial images of which are included in the unsealed affidavit, were designed to appear as domains of legitimate, U.S.-based IT services companies located in Portland, Oregon; Houston; Lancaster, Pennsylvania; Oklahoma City; Indianapolis; New York; and Richmond, Virginia. Three of the entities that claimed to own these domains were officially registered in Wyoming. The website contents included a variety of designed to entice potential victims, such as claims that the firms assisted hundreds of “happy clients” including Fortune 500 companies (potentially a fictitious claim) and completed hundreds of projects over thousands of work hours. Other websites included claims of having helped clients benefit from new technologies, such as artificial intelligence and machine learning, “blockchain solutions,” cloud computing skills, and internet of things knowledge.
However, the website domains also included indicia that should have aroused suspicion about their bona fides. For example:
- The phone numbers used to register these domains, or advertised as belonging to these businesses, did not have area codes that corresponded with the locations where these businesses claimed to have offices;
- Some of the addresses listed were homes, versus office buildings;
- The content included disjointed phrases that appeared to be attempts at inspirational quotes – e.g., “Nor, moreover, is there anyone who loves pain because it is pain, pursues it, wants to gain it, but;” and
- Awkward promotional phrases such as “here are our main features & many more features.”
The National Security Division’s National Security Cyber Section and the U.S. Attorney’s Office for the Eastern District of Missouri are investigating this case. The FBI St. Louis Field Office conducted the investigation, with the assistance of the FBI Cyber Division.
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The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
Concurrent with today’s announcement and consistent with the initiative’s goals, two additional criminal prosecutions in the District of Columbia were unsealed today, resulting in two arrests and the execution of related seizures and search warrants in multiple jurisdictions. Both prosecutions reflect investigations that predate the initiative’s inception. Arizona woman Christina Marie Chapman was arrested on May 15 and three foreign nationals were charged on May 8 in connection with a similar IT worker scheme associated with North Korea. As part of this case, the U.S. Attorney’s Office seized wages earned by more than 19 overseas IT workers and will seek their forfeiture. Additionally, the District of Columbia charged Ukrainian national Oleksandr Didenko for similar conduct. As alleged, Didenko created fake accounts at U.S. IT job search platforms and with money service transmitters. Didenko was arrested in Poland on May 6 pursuant to an arrest warrant from the United States.
The U.S. Department of State has offered potential rewards for up to $5 million in support of international efforts to disrupt North Korea’s illicit financial activities, including for certain information related to individuals who are sent outside of North Korea to work to generate money for the North Korean government or who facilitate the activities of such North Korean nationals.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EDMO seizure applicationJamestown man going to prison for more than 19 years for selling heroin and fentanyl which resulted in two deathsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven Mojica Medina, 36, of Jamestown, NY, who was convicted of possession with intent to distribute, and distribution of, heroin, fentanyl, and acetyl fentanyl, and being a felon in possession of a firearm and ammunition, was sentenced to serve 235 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on August 30, 2018, an individual identified as J.H., fatally overdosed after ingesting a substance containing fentanyl, and acetyl fentanyl. Medina provided J.H. with the fentanyl and fentanyl analogue mixture shortly before J.H. died. Approximately a week later, on September 9, 2018, an individual identified as J.T. fatally overdosed after ingesting a substance containing heroin, fentanyl, and acetyl fentanyl. Medina provided the substance to a third party who then provided it to J.T.
On December 1 and 2, 2020, the Jamestown Police Department conducted controlled purchases of heroin and fentanyl from Medina. Subsequently, a search warrant was executed at Medina’s Euclid Avenue residence during which investigators recovered two loaded firearms, a drug ledger, 48 bags of fentanyl weighing 1.76 grams, and cocaine. On November 1, 2021, Medina was pulled over in his vehicle by the Jamestown Police Department. Officers recovered a 9mm semi-automatic pistol, six magazines and approximately 167 rounds of 9mm ammunition. Medina also had 24 wrapped baggies of crack cocaine weighing 3.8 grams. In July 2015, Medina was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Hospice Owner Sentenced to 240 Months Imprisonment and Ordered to Repay $42,000,000 for Defrauding MedicareRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on May 15, 2024, U.S. District Judge Lance Africk sentenced SHIVA AKULA (“AKULA”), age 68, of New Orleans, to 240 months of imprisonment, three years of supervised release and $2,300 in mandatory special assessment fees, in relation to an extensive health care fraud scheme orchestrated by AKULA. In November 2023, a federal jury convicted AKULA of all 23 counts of his underlying indictment. AKULA owned and oversaw the day-to-day operations of Canon Healthcare, LLC, a hospice facility with offices in the New Orleans area, Baton Rouge, Covington, and Gulfport, Mississippi. At sentencing, the Court found that between January 2013 and December 2019, Canon billed Medicare approximately $84 million in fraudulent claims and was paid approximately $42 million relating to these fraudulent claims. The Court ordered that AKULA repay the $42 million of fraudulent proceeds back to Medicare.
On November 6, 2023, a jury convicted AKULA on all 23 counts of health care fraud charged in the indictment relating to overbilling for hospice patients for expensive General Inpatient (“GIP”) services and for multiple counts related to manipulating Medicare billing codes, known as Common Procedural Terminology (“CPT”) codes despite such services being medically unnecessary, or despite their inclusion in the daily hospice benefit Canon already received for its patients.
“Today’s sentencing signals the end of a long, complicated, and challenging prosecution,” said U.S. Attorney Duane A. Evans. “However, this conclusion exhibits our commitment to fighting health care fraud in our district. Our office, along with our investigative partners, will continue to work diligently to preserve taxpayer confidence in our medical institutions and seek justice for all victims of fraud.”
“Shiva Akula showed no regard for quality end-of-life hospice care,” said Jason E. Meadows, Special Agent in Charge at the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “Instead, Akula’s motivation centered around multiple fraud schemes to maximize profit and steal from American taxpayers. HHS-OIG will continue to work with our federal and state law enforcement partners and the U.S. Attorney’s Office to hold accountable those who steal from Medicare and other federal health care programs.”
“Each fraudulent claim filed by Mr. Akula potentially deprived another deserving and suffering individual from the emotional and physical comfort of end-of-life care,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Division. “The FBI thanks its partners the US Attorney's Office for the Eastern District, HHS, and Louisiana's Medicaid Fraud Control Unit for their painstaking work to ensure that justice would be done in this case.”
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. Assistant U.S. Attorneys Kathryn McHugh, Financial Crimes Unit, and J. Ryan McLaren, Appellate Unit, are in charge of the prosecution, with assistance from Financial Litigation Coordinator, Assistant U.S. Attorney Churita Hansell of the Monetary Penalty and Recovery Unit.
Helena man sentenced to prison for trafficking fentanyl purchased on dark web using cryptocurrencyRead the Press Release
HELENA — A Helena man who admitted buying fentanyl on the dark web using cryptocurrency and distributing some of it while using the rest was sentenced on May 13 to 15 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, Jarek William Hahn, 30, pleaded guilty in December 2023 to possession with intent to distribute fentanyl.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that between December 2022 and December 2023, Hahn obtained fentanyl in the mail after arranging its purchase on illicit internet sites on the dark web. Hahn then used some of it and sold some to support his habit. Hahn used sophisticated means to seek out illicit sites on the internet’s dark web, which are unindexed sites on the internet that require special internet browsers to access. He then accessed a site where he purchased fentanyl using cryptocurrency and had it delivered in the mail. In a search of Hahn’s home, law enforcement recovered 64 fentanyl pills.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The FBI, Missouri River Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Postal Inspection Service conducted the investigation.
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Grand Jury Indictment Unsealed Against Milwaukee Man Charged with Sex Trafficking a MinorRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced today the unsealing of an indictment that charges Stelio Kalkounos, 51, Milwaukee, Wisconsin, with sex trafficking of a minor and producing child pornography. The indictment was returned by a federal grand jury sitting in Madison, Wisconsin, on May 15, 2024. The indictment was unsealed today following Kalkounos’ arrest.
The indictment alleges that from July 16, 2023, to March 1, 2024, Kalkounos recruited, enticed, and obtained a minor, knowing she would be caused to engage in commercial sex acts. The indictment further alleges that on November 20, 2023, Kalkounos used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
Kalkounos was arrested yesterday at a hotel in Hollywood, Florida, and made his initial appearance in U.S. District Court for the Southern District of Florida. He is currently being held at the Broward County Jail until he is transported to U.S. District Court in Madison for further proceedings.
If convicted, Kalkounos faces a minimum penalty of 10 years and a maximum of life in prison on the sex trafficking charge. He faces a minimum of 25 years and a maximum of 50 years in prison on the production charge.
The FBI is asking anyone with information about Stelio Kalkounos to contact the FBI in Milwaukee at 414-276-4684, option 7. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
The charges against Kalkounos were the result of an investigation by the FBI Madison Field Office. FBI Tampa and Miami Field Offices and the Seminole Police Department in Florida provided assistance in arresting Kalkounos. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Former enlistee admits to theft from U.S. ArmyRead the Press Release
HOUSTON – A 26-year-old man has pleaded guilty to selling stolen government property, announced U.S. Attorney Alamdar S. Hamdani.
Tamoshion Rucker previously served in the U.S. Army from 2018 to 2022 as a radio and communications security repairer and was a former member of the U.S. Army Reserves.
As part of his plea, Rucker admitted he attempted to sell Image Intensifier Tubes (IITs) for personal gain. Manufacture of IITs fulfill government contracts which are not available or authorized for sale to the public.
The investigation began in December 2022 when authorities attempted to retrieve stolen IITs Rucker posted for sale on eBay.
To safeguard this technology and equipment, IITs require demilitarization at the end-of-life cycle use. The instructions allegedly involve striking them with a ball peen hammer, ensuring destruction and that disposal of the fragments are made in accordance with hazardous waste guidelines. IITs cannot be resold or otherwise transferred to anyone after already being used.
Rucker agreed to sell five IITs for $3,000. After the transaction, Rucker then also agreed to exchange the remaining 50 IITs for an additional $32,000. Authorities detained Rucker later that day carrying a box containing 45 IITs bearing contract numbers. The total estimated value of all recovered IITs exceeds $103,000.
U.S. District Judge David Hittner accepted the plea and has set sentencing for Aug. 8. At that time, he faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI and Army Criminal Investigative Division conducted the investigation with assistance from Texas Department of Public Safety. Assistant U.S. Attorney Carolyn Ferko is prosecuting the case.
Former State Official Indicted, Arrested for School Construction Extortion and Bribery SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the FBI, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a 22-count indictment charging KONSTANTINOS “KOSTA” DIAMANTIS, 67, of Farmington, with extortion, bribery, conspiracy, and false statement offenses related to his conduct as director of Connecticut’s Office of School Constructions Grants and Review (“OSCGR”), the state agency responsible for the grant administration of all Connecticut public school construction projects seeking state funding.
The indictment (link below) was returned yesterday, and Diamantis was arrested this morning. He appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford, pleaded not guilty to the charges, and was released on a $500,000 bond.
In addition, three related cases were unsealed today. On May 13, 2024, SALVATORE MONARCA, 53, of Durham, the president and director of Acranom Masonry, Inc. (“Acranom”), a masonry contractor located in Middlefield, and JOHN F. DUFFY, 63, of Westerly, Rhode Island, vice president of Acranom, each pleaded guilty to conspiring to bribe Diamantis to obtain masonry contracts on school construction projects. On May 14, 2024, ANTONIETTA ROY, 41, of Plainfield, the owner of Construction Advocacy Professionals, LLC (“CAP”), pleaded guilty to conspiring to bribe Diamantis to obtain business as a construction administrator on school construction projects.
The indictment alleges that Diamantis demanded and received bribes from Acranom, Monarca, and Duffy in connection with multi-million dollar school construction projects Diamantis supervised as director of OSCGR. In exchange for those bribes, and promises to pay bribes, Diamantis used his official position to assist Acranom to obtain and maintain contracts to perform masonry work for state-funded school construction project. Diamantis helped Acranom resolve a dispute on phase two of Hartford’s Weaver High School renovation project around 2018; obtain the contract for masonry work on phase four of the same project; and, in and around 2019, obtain the masonry contract for the emergency rebuild of the Birch Grove Primary School in Tolland. In numerous electronic messages recounted in the indictment, Diamantis, Duffy, and Monarca discussed their plan to pay Diamantis in exchange for his official action on behalf of Acranom. Diamantis also demanded payment in exchange for his actions, and threatened to remove Acranom as mason on the Weaver and Birch Grove projects if he was not paid. The indictment also alleges incidents where cash was provided by Acranom to Diamantis.
The indictment further alleges that Diamantis demanded and received bribes from Roy in her capacity as the owner of CAP. In exchange for those bribes, Diamantis used his official position to assist CAP in obtaining contracts to provide construction administrator and related services on state school construction projects, including a 2019 contract on the Birch Grove project in Tolland, a 2019 contract to assist New Britain in obtaining state reimbursement for school construction projects, and a 2019 contract related to the renovation project at Hartford’s Bulkeley High School. Roy paid Diamantis via cash and check, and hired Diamantis’s daughter at an inflated salary.
The indictment also alleges that on three different occasions in 2023, Diamantis made multiple false statements to FBI agents investigating this matter.
“Constructing and renovating schools is an important, and very expensive, endeavor for our state and municipalities, and corruption within a program that manages and funds them adds cost, seriously erodes trust in government, and raises questions about work quality and the potential harms to students and educators in the classroom,” said U.S. Attorney Avery. “This indictment contains allegations of a civil servant who committed multiple felonies, including extorting contractors, demanding and receiving bribes, and repeatedly lying to federal agents investigating his conduct. This kind of criminal behavior can never be tolerated, and the U.S. Attorney’s Office and our investigative partners will work to uncover it, no matter how long it takes. I thank the FBI and IRS-Criminal Investigation for their diligent work here. This investigation is ongoing.”
“The depth of deception, collusion, and abuse of power by the defendants in this case, as alleged, is glaring,” said FBI Special Agent in Charge Robert Fuller. “The willingness to manipulate contracts and blatantly steal by abusing a position of public trust is intolerable. We have a long history in this state of rooting out corruption and delivering white collar criminals to justice. Today’s arrest further indicates that we are continuing to protect taxpayers from criminal actors.”
“The indictment and arrest of Konstantinos Diamantis demonstrates IRS-CI’s commitment to halting public corruption at the source,” said IRS CI Special Agent in Charge Harry T. Chavis Jr. “Pay to play schemes, such as the alleged scheme orchestrated by Diamantis, Monarca, Duffy, and Roy are not only detrimental to the business community but also the community at large. Unjustly bribing public officials for municipal contracts circumvents the bidding process which can result in subpar construction, delays, and costly overages that directly impact the American taxpayers.”
The indictment charges Diamantis with two counts of extortion and two counts of conspiracy to commit extortion, offenses that carry a maximum term of imprisonment of 20 years on each count; two counts of bribery, an offense that carries a maximum term of imprisonment of 10 years of each count; two counts of conspiracy to commit bribery, an offense that carries a maximum term of imprisonment of five years on each count; and 14 counts of making false statements, an offense that carries a maximum term of imprisonment of five years on each count.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Monarca and Roy have agreed to cooperate with the government’s prosecution of this matter.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and David E. Novick.
diamantis_kosta_indictment.pdfFormer Shreveport Police Officer Sentenced on Wire Fraud ChargeRead the Press Release
SHREVEPORT, La. – Former Shreveport Police Department officer Jeffrey L. Peters, 55, of Shreveport, was sentenced today for one count of wire fraud, announced United States Attorney Brandon B. Brown. United States District Judge S. Maurice Hicks, Jr. sentenced Peters to 3 years of supervised probation and he was ordered to pay restitution in the amount of $13,084.74.
Peters pleaded guilty on January 12, 2024 to the charge which was the result of his actions while employed as a Lieutenant with the Shreveport Police Department (SPD). While working at SPD, Peters was allowed to work overtime on the Community-Based Crime Reduction (CBCR) Program, which is a grant program administered by the U.S. Department of Justice (DOJ) that pays officers at 1.5 times their normal hourly rate for overtime worked.
Between January 2020 and January 2021, Peters and a fellow supervisor, James Cisco, devised a scheme to defraud the SPD by claiming overtime for hours they had not worked. Peters and Cisco would each fill out and sign a Report of Overtime which stated they worked a specific time and date on the CBCR grant. Peters, in his role as Cisco’s supervisor, would certify that Cisco had actually worked the dates and times listed on the Report of Overtime. Peters would also create and submit an SPD activity report which would falsely state that he and Cisco were doing patrols in District 3, an area around SPD Headquarters. On these reports, Peters and Cisco were the only officers listed. When in truth and in fact, neither Peters nor Cisco were working overtime for SPD.
Peters submitted false Reports of Overtime and Activity Reports on over 50 dates falsely claiming he worked overtime that he had not. He was paid for hours he did not work in is bi-weekly paychecks which were deposited into his own personal account. Peters received a total of $13,084.74 in overtime that he was not entitled to receive.
Cisco was also charged in connection with this case and was sentenced to one year of supervised probation and ordered to pay restitution in the amount of $1,681.29 and a fine in the amount of $2,500.
The case was investigated by FBI, DOJ-Office of Inspector General, and Internal Revenue Service-Criminal Investigation, and prosecuted by Assistant United States Attorney Seth D. Reeg.
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Former FCI Beckley Correctional Officer Sentenced to Prison for Contraband CrimeRead the Press Release
BECKLEY, W.Va. – Cody Adam Bays, 32, of Beaver, was sentenced today to one year and six months in prison, to be followed by three years of supervised release, for providing contraband to an in inmate of a federal prison.
According to court documents and statements made in court, between November 7, 2022, and February 14, 2023, Bays was a correctional officer at Federal Correctional Institution (FCI) Beckley when he provided contraband items to FCI Beckley inmates. Bays admitted that he provided various controlled substances including suboxone, marijuana, synthetic marijuana and tobacco. Bays also attempted to smuggle fentanyl into FCI Beckley but sampled the substance, which led to a serious overdose.
Bays admitted that he profited from this illicit activity in the amount of $20,800. Bays received approximately $5,000 for the suboxone, $4,000 for the fentanyl substance, $3,500 for the synthetic marijuana and $2,000 for the marijuana.
Bays was paid in cash or through financial mobile applications. By accepting these illicit payments, Bays became part of a multi-state drug trafficking criminal enterprise that engaged in a complex system of electronic money transfers to facilitate the sale of illegal drugs in the federal prison system.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Justice-Office of Inspector General (DOJ-OIG).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Brian D. Parsons prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-165.
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Former Executive Director of South Bend Housing Authority Sentenced to 108 Months in PrisonRead the Press Release
SOUTH BEND – Tonya Robinson, 61 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after being found guilty of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, one count of wire fraud, and one count of federal program theft on November 1, 2023, following an eight-day jury trial, announced United States Attorney Clifford D. Johnson.
Robinson was sentenced to 108 months in prison, 2 years of supervised release, and was ordered to pay $3,236,949.97 in restitution to the victims of the offense.
According to documents in the case, the Housing Authority of South Bend (HASB) provides housing opportunities and services to the South Bend community, managing more than 800 public housing residential units. From approximately 2015 through 2019, Robinson served first as Interim Executive Director and then Executive Director of the HASB. She was found guilty of conspiring with employees at the HASB and with outside contractors to defraud the HASB. The fraud scheme involved the issuance of HASB payment checks to four outside contractors for contracting work that had not actually occurred. These contractors would then deposit the HASB payment checks, withdraw a portion of each check in cash, and hand-deliver the cash back to co-conspirators at the HASB’s main office. Robinson was involved in creating hundreds of fraudulent documents to conceal the fraud.
“This Office continues to focus on prosecuting public corruption and fraud,” said United States Attorney Clifford D. Johnson. “Defrauding taxpayers in schemes that divert federal funds from their intended purpose will not be tolerated. Ms. Robinson’s criminal scheme injured both federal taxpayers and South Bend Housing Authority tenants because federal monies that were intended to keep those housing units safe and habitable were not available for that purpose. This case demonstrates how our law enforcement partners and my Office will work together to hold federal fraudsters accountable.”
“Robinson was supposed to be a public servant in her role at the South Bend Housing Authority, but she chose to use her position of trust to line her own pockets,” said Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Office. “The FBI and its law enforcement partners will continue to investigate all public officials who use their positions for personal gain.”
“Tonya Robinson and her co-conspirators engaged in an egregious false billing and kickback scheme resulting in the theft of critical taxpayer dollars,” said Acting Special Agent-in-Charge Manuel Colin with the U.S. Department of Housing and Urban Development, Office of Inspector General. “Moreover, they violated the trust of the communities who rely on HUD programs and risked damaging the programs’ integrity. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
“Stealing from taxpayers is not just theft—it’s a betrayal of the public trust and an assault on our democracy,” said Jason Bushey, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Trust in our institutions at every level of government is non-negotiable, and IRS Criminal Investigation and its fellow law enforcement partners will continue to hold individuals like Robinson accountable for betraying the trust taxpayers bestow upon public servants.”
Robinson’s co-defendants who were previously convicted, received the following sentences:
Tyreisha Robinson was sentenced to a total term of time served, 2 years of supervised release, and was ordered to pay $363,122.00 in restitution to victims of the offense.
Douglas Donley was sentenced to a total term of 27 months in prison, 2 years of supervised release, and was ordered to pay $303,920.00 in restitution to victims of the offense.
Archie Robinson III was sentenced to a total term of 6 months of imprisonment, 2 years of supervised release, and was ordered to pay $1,152,636.00 in restitution to victims of the offense.
Ronald Taylor, Jr. was sentenced to term of imprisonment of 44 months, 2 years of supervised release, and was ordered to pay $1,714,956.87 in restitution to victims of the offense.
This case was investigated by the Department of Housing and Urban Development Office of Inspector General, the Internal Revenue Service-Criminal Investigation Division, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Luke N. Reilander, Joel Gabrielse, and Jerome W. McKeever.
Former Central Georgia Teacher Charged with Distributing, Possessing Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A former teacher and volunteer leader of a church youth ministry had his initial appearance in federal court this afternoon after a grand jury returned a four-count indictment this week charging him with allegedly distributing and possessing child sexual abuse material (CSAM).
Christian Baumgarth, 27, of Atlanta and formerly of Macon, is charged with two counts of distribution of child pornography and two counts of possession of child pornography. If convicted, Baumgarth faces a mandatory minimum of five years in prison up to a maximum sentence of 20 years in prison for each count of distribution of child pornography and a maximum sentence of 20 years in prison for each count of possession of child pornography. In addition, Baumgarth faces a maximum $250,000 fine per count and up to a lifetime of supervised release. The federal grand jury returned the indictment on May 14. The indictment was unsealed today. Baumgarth had his initial appearance this afternoon before U.S. Magistrate Judge Charles H. Weigle.
The indictment alleges that Baumgarth distributed digital video files on July 23, 2023, depicting a minor engaging in sexually explicit conduct. The indictment also alleges that Baumgarth possessed child pornography of a prepubescent minor and a minor under the age of 12 years old on his cellular devices on Aug. 1, 2023.
Baumgarth was a teacher and coach at First Presbyterian Day (FPD) School in Macon from 2018-2023. Additionally, he was a volunteer small group leader in the student ministry at Northway Church in Macon from 2019-2023. Parents and guardians of children who may have encountered Baumgarth and have concerns related to this investigation can contact Homeland Security Investigations (HSI) at 1-866-347-2423.
The case is being investigated by Homeland Security Investigations (HSI) with assistance from the FBI. Deputy Criminal Chief Will Keyes is prosecuting the case for the Government.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Foreign National Sentenced for Cocaine TraffickingRead the Press Release
A national of the Dominican Republic was sentenced yesterday to 15 years and four months in prison for his role in an international conspiracy to distribute 385 kilograms of cocaine for unlawful importation into the United States.
According to court documents and evidence presented at trial, from October 2016 through May 2019, Cesar Gomez Almonte, 51, participated in a drug trafficking network based in the Dominican Republic that transported cocaine from South America, through the Caribbean, to the United States. The drug trafficking network used vessels, such as sailing yachts and sport fishing boats, to transport the cocaine, often stopping in various Caribbean ports while transporting the cocaine to give a cover of legitimacy to each voyage. One of these vessels, the Casablanca, was interdicted by the U.S. Customs and Border Protection’s Marine Interdiction Unit in November 2018 as it entered U.S. waters near Key Biscayne, Florida. Officers boarded and searched the Casablanca, seizing more than 327 kilograms of cocaine.
Gomez had several roles in the conspiracy. He brokered the use of the Casablanca by another drug trafficking network to send cocaine directly to the United States, and was involved in locating and purchasing vessels for use by the drug trafficking network to transport cocaine. Additionally, Gomez attempted to change the ownership of one of the network’s boats from one straw purchaser to another to disguise the true owners and possessors of the boat, which was used in a prior voyage to transport approximately 500 kilograms of cocaine.
A federal jury in the District of Columbia convicted Gomez in November 2023 of conspiracy to import five kilograms or more of cocaine into the United States.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI); and Administrator Anne Milgram of the Drug Enforcement Administration (DEA) made the announcement.
The case is supported by the Organized Crime and Drug Enforcement Task Forces (OCDETF) and HSI’s El Dorado Task Force.
HSI New York and DEA New York investigated the case.
Acting Assistant Deputy Chief Melanie L. Alsworth and Trial Attorneys Samantha Thompson and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Justice Department thanks authorities in the Dominican Republic for their assistance in the investigation.
Flushing, NY, man arrested charged with possession and importation of MDMARead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Yong Chen, 37, of Flushing, NY, was arrested and charged by criminal complaint with possession with intent to distribute MDMA and importation of MDMA. The charges carry a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the complaint, in the early morning hours of September 21, 2022, U.S. Border Patrol Buffalo Sector spotted a drone launch originating at a residence in Youngstown, NY. The drone traveled across the Lower Niagara River into Ontario, Canada, and landed in Niagara-on-the-Lake, Ontario, Canada, before returning a short time later to its original launch location. Law enforcement responded to the residence and observed the drone hovering in the back yard with an attached package hanging from the chassis. The drone made landfall near an individual later identified as Edvin Yug. Another individual at the residence fled from law enforcement. The package was transported to the Niagara Falls Border Patrol Station for analysis, and found to contain three vacuum sealed bags of MDMA. A short time later, Yong Chen was found by the Niagara County Sheriff’s Department when a 911 call came in for an individual requesting medical attention for shortness of breath. Chen was identified as the individual that fled from the Youngstown residence.
A search warrant was executed at the residence, which was barely furnished, with only mattresses on the floor and almost no other furniture. The residence also contained few comfort items and no clothing to suggest individuals were using it as a primary residence. During the search, investigators seized numerous commercial grade drones, controllers, electronics, cell phones and a video hard drive containing the residence’s security camera footage, which showed Chen at the residence around the time the drone was spotted. Additionally, rolls of paracord were found on that were consistent to the cord holding the package of MDMA to the drone.
An analysis of the seized drones recovered data indicating that they had conducted five cross-border flights into Canada and back prior to September 21, 2022, all originating and concluding at the Youngstown residence. Chen’s flight records also coincide with the dates of the cross-border drone activity. Chen is not known to have any ties to the Buffalo/Youngstown area. According to the complaint, the Youngstown residence was purchased by a business owned by Chen’s sister.
The complaint is a result of an investigation U.S. Border Patrol, Buffalo Sector, under the direction of Chief Patrol Agent Thomas G. Martin, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Florida Man Charged with Conspiracy to Distribute Oxycodone for Prescription Drug Diversion SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, a three-count indictment was unsealed charging Devin Anthony Magarian with conspiracy to distribute oxycodone and possessing oxycodone with intent to distribute. Magarian is charged with orchestrating a years’ long conspiracy to commandeer physicians’ e-prescribing privileges in order to divert Oxycodone and other controlled substances into the illicit market.
Breon Peace, United States Attorney for the Eastern District of New York, Anne T. Donnelly, District Attorney of Nassau County, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA) and Patrick Ryder, Nassau County Police Commissioner, announced the indictment and charges.
“As alleged, Magarian led the conspiracy to pirate the digital prescription pads of physicians, putting thousands of lives at risk through this illicit diversion scheme,” stated United States Attorney Breon Peace. “This Office will continue doing its part to find and hold responsible individuals at all levels who, motivated by greed, perpetuate the opioid and prescription drug epidemic with careless disregard for the safety of the communities in this district and nationwide.”
United States Attorney Peace thanked the New York State Bureau of Narcotic Enforcement for their significant contributions to the investigation.
“Devin Magarian was the primary facilitator of a complex narcotics conspiracy, coordinating drug-running operations in dozens of states across the county and maximizing profits for the illicit venture,” said Nassau County District Attorney Anne T. Donnelly. “Tens of thousands of prescriptions for narcotics and other controlled substances were filled in Nassau County and beyond at this defendant’s direction using pirated e-prescribing credentials of unwitting doctors, putting our communities at risk. Magarian was an important cog in a much larger machine – one that we will dismantle piece by piece with our federal partners at the U.S. Attorney’s Office and the Drug Enforcement Administration.”
“The indictment against Devin Anthony Magarian for conspiracy to distribute oxycodone through a diverted e-prescription scheme and distribute on the illicit market for the purpose of putting profits above public health is not only reckless and dangerous, but unconscionable” stated DEA New York Special Agent-in-Charge Frank Tarentino. “Trading in lives for profit is a dark path and we will continue to work with our law enforcement partners to make sure those responsible face justice.”
As alleged in the indictment, in or around and between December 2022 and March 2024, the defendant was the key driver of a wide-ranging conspiracy in which he and his associates surreptitiously commandeered the e-prescribing credentials of doctors throughout the country, and then used those compromised accounts to issue and fill thousands of prescriptions for narcotics and other controlled substances, including Oxycodone and Promethazine with Codeine syrup, commonly known as Codeine, throughout Nassau County and nationwide. These highly abused substances were then diverted into the illicit market, where the defendant often advertised them for sale to street-level resellers and buyers on his social media accounts and elsewhere.
Over the course of this investigation, law enforcement identified dozens of medical practitioners who experienced a similar series of occurrences which ultimately resulted in the defendant and his associates issuing and filling thousands of illicit prescriptions in the names of countless fictitious patients. Many of the physicians experienced unusual activity on their cellphones, including being flooded with text messages in the days leading up to losing control of their cellphones and e-prescribing accounts. Unbeknownst to the physicians, these text messages were related to efforts by the defendant and his associates to “clone” the SIM card of the doctors’ cellphone, thereby giving the defendant full access to the phone, and ultimately, the physicians’ e-prescribing credentials.
Once the credentials were compromised, the defendant advertised the prescriptions and controlled substances he had for sale on social media. Using automated “bots,” the defendant would generate and transmit thousands of prescriptions using the compromised doctor’s e-prescribing credentials within a matter of hours. These bots generated fictitious names, dates of birth, and addresses, and sent electronic prescriptions for controlled substances and narcotics to pharmacies in specific areas where the defendant’s associates were waiting. The defendant transmitted thousands of prescriptions, which when filled, resulted in thousands of pills of pharmaceutical grade narcotics being illicitly diverted and re-sold at a premium. The defendant’s profits from the resale of those illegally procured narcotics ranged from $75,000 to $250,000 per month, in the form of payments which were primarily made via cryptocurrency, at the defendant’s request.
The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Adam Toporovsky and Kaitlin McTague, and Special Assistant United States Attorney Brian Rodriguez, of the Nassau County District Attorney’s Office, are in charge of the prosecution with assistance from Paralegal Specialists Adam Bernard and Samantha Schroeder.
The Defendant:
DEVIN ANTHONY MAGARIAN
Age: 21
Kissimmee, New YorkE.D.N.Y. Docket No. 24-CR- 178
Felon Who Threatened Mail Carrier Sentenced to 10 Years on Gun ChargeRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man who threatened a mail carrier when he hadn’t received a package containing marijuana to 10 years in prison.
Marquis Melton, 31, pleaded guilty in January to one count of being a felon in possession of a firearm. Melton admitted that on Feb. 27, 2023, he confronted a U.S. Postal Service mail carrier in the 4700 block of Farlin Avenue in St. Louis, Missouri, demanding a package that he expected. After being told by the carrier that he did not have that package, Melton followed the carrier back to the Post Office and again tried to locate the package.
The next day, St. Louis Metropolitan Police Department officers stopped the vehicle Melton was riding in the day before. They found a .40-caliber pistol. Melton is a convicted felon and is barred from possessing a firearm. He was also wanted by police on other matters.
Evidence photo.Melton denied threatening the carrier with a firearm and claimed there was no evidence that the gun he purportedly had while interacting with the carrier was the same one police found a day later.
But based on testimony and evidence presented during a sentencing hearing Wednesday, Judge Ross found that Melton did have the gun and did threaten the mail carrier. Melton was impatient about shipment of marijuana that he was expecting, evidence and testimony showed.
Evidence photo.The St. Louis Metropolitan Police Department and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Linda Lane prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal grand jury indicts three additional defendants for their roles in scheme that defrauded thousands of companies out of millions of dollarsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging John Engler, Alec Dierna, And Nicholas Scarantino with conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Also named in the superseding indictment are three defendants previously charged in the case: Tommy Lee Coburn, Kyle Paul Edward Gibson, and Heather Dierna.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the superseding indictment, in January 2019, defendant Engler began mailing fictitious invoices to primarily large companies located throughout the United States for cleaner/degreaser products that the victim companies would believe they had previously ordered and received. In August 2020, Engler recruited defendant Dierna to participate in his scheme, which began the conspiracy. Defendants Coburn and Heather Dierna joined the conspiracy in January 2021, Gibson in February 2021, and in July 2021, Scarantino joined the conspiracy.
Large companies were targeted because it was less likely during the COVID-19 pandemic that account payable departments in these companies would question whether cleaner/degreaser products listed on the fraudulent invoices were ordered and received. Large companies were targeted because the relatively small amounts owed on the fraudulent invoices would be less likely to raise questions regarding the legitimacy of the invoices, and because the accounts payable departments do not order products for their companies, and would be less likely to question or be suspicious of the grossly inflated prices for the cleaner/degreaser products. Fraudulent invoices were mailed from Florida and from Rochester. Intended to look like legitimate invoices, the defendants placed statements that the documents were merely “solicitations,” and that there was no obligation to pay the amounts listed on the fraudulent invoices, in hard-to-find places on page two of the invoice. The statements were inserted so that if the defendants were ever later questioned, they could falsely claim that the intended purpose of the documents was merely to “solicit” future business from the victim companies.
As a result of the conspiracy, approximately 5,458 victim companies were tricked into believing that they had received a legitimate invoice for cleaner/degreaser products, paying approximately $8,010,543.50 to the sham companies. After receiving payment, the defendants attempted to cover up their fraud by having inexpensive cleaner/degreaser products delivered to the victim companies. Several companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.
The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Elkhart Man Sentenced to 51 Months in PrisonRead the Press Release
SOUTH BEND – Nathan Keosackdy, 24 years old, of Elkhart, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after being found guilty following a two-day jury trial on November 14, 2023, for being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Keosackdy was sentenced to 51 months in prison followed by 2 years of supervised release.
According to documents in the case, in September 2022, Keosackdy, a felon, who was prohibited from possessing or purchasing a firearm, took another individual to a federally licensed firearm dealer to complete the purchase of a firearm he had chosen. After the firearm purchase, Keosackdy carried the gun out of the store and paid the individual for the gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department and the Mishawaka Police Department. The case was prosecuted by Assistant United States Attorneys Jerome W. McKeever and Lydia T. Lucius.
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.
Egyptian National Sentenced to 18 Months in Prison for Wire Fraud Scheme to Defraud Former Employer in New JerseyRead the Press Release
CAMDEN, N.J. – An Egyptian national living in New Jersey was sentenced to 18 months in prison for engaging in a fraudulent scheme to misappropriate more than approximately $430,000 belonging to his former New Jersey employer, U.S. Attorney Philip R. Sellinger announced today.
Abdelrahman Ahmed-Elkilani, 28, a citizen of Egypt who formerly resided in Florida, and now resides in Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of wire fraud. Judge Kugler imposed the sentence on May 15, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2017 through July 2019, Ahmed-Elkilani misappropriated more than $430,000 in funds belonging to his former employer by taking advantage of his role as a marketing manager for the company and his access to other employees’ operator codes, as well as the company’s membership accounts to create and execute multiple false transactions. These transactions enabled Ahmed-Elkilani to misappropriate funds for his own personal use and benefit.
Ahmed-Elkilani misappropriated $417,075 held in the company’s deposit account and caused approximately $275,000 of those funds to be transferred to his personal credit or debit cards. He also misappropriated $13,674 in additional company funds through other fraudulent methods.
In addition to the prison term, Judge Kugler sentenced Ahmed-Elkilani to three years of supervised release and ordered restitution and forfeiture in the amount of $430,749.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the Economic Crimes Unit in Newark.
Eastern Oregon Man Sentenced to More Than 12 Years in Federal Prison for Sexually Abusing Two Minors He Met OnlineRead the Press Release
PORTLAND, Ore.—A La Grande, Oregon man was sentenced to more than 12 years in federal prison Wednesday for sexually abusing and transporting two minors from Washington State he met through Snapchat.
Albert Wayne Johnson, 42, was sentenced to 151 months in federal prison and 10 years’ supervised release.
According to court documents, on August 8, 2022, deputies from the Clackamas County Sheriff’s Office responded to a call of two minors abandoned at Barton Park in Boring, Oregon. The children told the deputies they met Johnson on Snapchat and that he had driven them from Washington State through Idaho and into Oregon, and had sexually abused both during the trip. Along the way, Johnson stopped at a motel in Othello, Washington, where he abused the children, and a campground near La Grande, where he continued to abuse one of the children. After arriving in Boring, Johnson left the children at a campsite in Barton Park and never returned.
In August 2022, after receiving information about the abduction and abuse that had occurred, detectives from the Othello Police Department contacted the motel in Othello and obtained surveillance footage showing Johnson with the two children.
On August 30, 2022, officers and deputies from the La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, and Umatilla Tribal Police Department located Johnson at his residence in La Grande and arrested him on an outstanding parole violation warrant.
On October 5, 2022, Johnson was charged by criminal complaint with coercing and enticing a minor and transporting a minor with intent to engage in criminal sexual activity. Later, on November 2, 2022, a federal grand jury in Portland returned a three-count indictment charging Johnson with traveling across state lines to engage in a sexual act with a minor, transporting a minor with intent to engage in criminal sexual activity, and commission of a sex offense by a registered sex offender.
On January 24, 2024, Johnson pleaded guilty to transporting a minor with intent to engage in criminal sexual activity.
This case was investigated by the FBI Pendleton Resident Agency with assistance from the Othello Police Department, La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, Umatilla Tribal Police Department, and Clackamas County Sheriff’s Office. It was prosecuted by Cassady Adams, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
East Boston Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man pleaded guilty yesterday to possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 25, pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography. U.S. District Judge Richard G. Stearns scheduled sentencing for Aug. 14, 2024. Pineda was arrested and charged by criminal complaint in January 2023 and has remained in federal custody since.
Law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. On Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups. An additional 54 videos of CSAM, involving children as young as six years old, were found within an application on Pineda’s personal cell phone.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
District Man Pleads Guilty to Carjacking in NortheastRead the Press Release
WASHINGTON – Antwan Mitchell, 19, of Washington D.C., pleaded guilty to one count of carjacking arising from a February 2024 offense committed in Northeast Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
On May 14, 2024, Mitchell pleaded guilty in the Superior Court of the District of Columbia to carjacking before the Honorable Jason Park. Judge Park scheduled sentencing for August 5, 2024.
During that plea hearing, Mitchell admitted that he and two co-conspirators, who have never been identified, carjacked a rideshare driver on February 6, 2024. The victim had just dropped off his rideshare passengers in the 200 block of Kenilworth Avenue NE when Mitchell and his accomplices surrounded the victim’s SUV. One of Mitchell’s accomplices held the victim at rifle-point while Mitchell and another accomplice demanded the victim’s car keys and wallet. After the victim got out of his SUV and handed over his car key, Mitchell and his accomplices drove off in the victim’s SUV. MPD Officers responded immediately, canvassed the area, and located the victim’s stolen SUV. While inspecting that vehicle, police also located a second vehicle that Mitchell and his accomplices had used to commit this carjacking. Officers pursued that vehicle and ultimately apprehended Mitchell after he ran from it. Police recovered a firearm in the vehicle, but Mitchell’s accomplices escaped.
This case was investigated by the Metropolitan Police Department and is being prosecuted by Assistant United States Attorney Sabena Auyeung.
District Man Indicted for House Party ShootingRead the Press Release
WASHINGTON – Darrious Johnson, 23, of the District of Columbia, has been charged in a 10-count indictment for unleashing gunfire into a crowded living room during a house party in the Hillbrook neighborhood in Northeast, D.C., in May 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court grand jury returned the indictment that was filed on May 16, 2024, which charges Johnson with two counts of assault with intent to kill (adults) while armed, one count of assault with intent to kill a minor while armed, aggravated assault while armed, second degree cruelty to children, and related firearm offenses. According to the Government’s evidence, after an argument at the party, Defendant Johnson walked upstairs, retrieved a firearm, walked halfway down the stairs, and fired numerous shots into the crowded living room with adults and children present. One of the bullets hit the arm of an adult victim who was holding an infant, causing serious injuries.
This case is being investigated by the Metropolitan Police Department and is being prosecuted by Assistant U.S. Attorneys Anthony Cocuzza, Megan McFadden, and Sabena Auyeung.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Departments of Homeland Security and Justice to Announce “Recent Arrivals” Docket Process for More Efficient Immigration HearingsRead the Press Release
Secretary of Homeland Security Alejandro N. Mayorkas and Attorney General Merrick B. Garland today announced a new Recent Arrivals (RA) Docket process to more expeditiously resolve immigration cases of certain noncitizen single adults who attempt to cross irregularly between ports of entry at the Southwest border. This effort will allow Department of Homeland Security (DHS) and Justice Department to more swiftly impose consequences, including removal, on those without a legal basis to remain in the United States and to more swiftly grant immigration relief or protections to noncitizens with valid claims. The Justice Department also submitted to the Federal Register a final rule to promote efficient case and docket management in immigration proceedings.
“Today, we are instituting with the Department of Justice a process to accelerate asylum proceedings so that individuals who do not qualify for relief can be removed more quickly and those who do qualify can achieve protection sooner,” said Secretary of Homeland Security Mayorkas. “This administrative step is no substitute for the sweeping and much-needed changes that the bipartisan Senate bill would deliver, but in the absence of Congressional action we will do what we can to most effectively enforce the law and discourage irregular migration.”
“The Justice Department’s immigration courts are committed to the just and efficient enforcement of the immigration laws,” said Attorney General Garland. “These measures will advance that mission by helping to ensure that immigration cases are adjudicated promptly and fairly.”
In our current, overwhelmed immigration system, noncitizens arriving at the U.S. Southwest border often wait years before receiving a final decision in an immigration court proceeding. Insufficient resources, including insufficient immigration judges and attorneys, has impeded the swift resolution of claims, and extended the length of the immigration court process.
Under the RA Docket process, DHS will place certain noncitizen single adults on the RA Docket, and the Executive Office for Immigration Review adjudicators will prioritize the adjudication of these cases. The RA Docket will operate in five cities: Atlanta, Boston, Chicago, Los Angeles, and New York City. Immigration judges will aim to render final decisions within 180 days, though the time to decision in any particular case will remain subject to case-specific circumstances and due process guarantees, including allowing time for noncitizens to seek representation where needed.
In order to support these efforts, today the Justice Department also submitted to the Federal Register a final rule titled, Efficient Case and Docket Management in Immigration Proceedings. The rule codifies procedures and standards for immigration adjudicators across the country to manage their dockets and resolve cases efficiently. The rule allows adjudicators to prioritize cases that are ready to be resolved promptly, enabling them to address their caseloads more efficiently and quickly. This rule is an important step the Justice Department is taking to promote the efficient, expeditious, and fair adjudication of immigration cases, allocate limited resources more efficiently, and protect due process for parties in immigration court.
Lastly, the Departments continue to call on Congress to take up and pass the Senate’s bipartisan border security legislation, which if passed would provide DHS and the Justice Department with additional authorities and resources that are critically needed. These resources include more immigration judges, additional asylum officers and support staff, and needed authorities to more quickly adjudicate asylum cases of those arriving at our border, including by granting protection to those with valid claims, and removing those without a lawful basis to remain. Congress should take up and pass this legislation to fix our broken immigration system.
Criminal Complaint Charges Two Men with Conspiracy to Commit Wire FraudRead the Press Release
Baltimore, Maryland – The United States Attorney’s Office for the District of Maryland has filed a federal criminal complaint charging Minh Phuong Vong and a second individual “John Doe” whose true identity remains unknown with conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office. The complaint was filed on May 15, 2024. According to the affidavit filed in support of the criminal complaint,
Vong, a native of Vietnam, and a naturalized United States citizen, conspired with an unknown individual, John Doe, to commit wire fraud by making false and fraudulent statements and representations to a United States company over the Internet in order to persuade the company to hire Vong as a fullstack web developer for the purpose of receiving salary payments for work not performed by Vong.
As alleged, the false representations included statements about Vong’s education, training and job experience. Representatives of the US Company conducted a video interview over the Internet of an individual who identified himself as Vong. Shortly after that interview, Vong participated in a second remote interview with a different representative of the US Company. In this interview, Vong showed his driver’s license and passport to confirm his identity and citizenship.
Following those interviews, the company hired Vong and assigned him to work on a government contract. The contract was part of a national defense program to develop software used by various other government entities that would allow them to coordinate aviation assets effectively.
According to the affidavit, Vong, however, did not perform software development work. Instead, Vong worked at a nail salon in Bowie, Maryland, while an individual or individuals located in China used Vong’s access credentials to connect to a secure government website, perform the software development work, and attend regular online company meetings.
“John Doe” communicated regularly with Vong and during those communications Vong and “John Doe” coordinated efforts to ensure that the U.S. Company did not know that an individual or individuals located overseas were actually posing as Vong to perform work on the government software development project.
The John Doe online communications also contained information and statements that indicated that “John Doe” is North Korean and a self-described software developer who lives in Shenyang, China.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If convicted, each defendant faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Colombian National Admits Conspiring to Transport Hundreds of Kilograms of Cocaine into United StatesRead the Press Release
NEWARK, N.J. – A Colombian citizen today admitted conspiring to import hundreds of kilograms of cocaine into the United States from Colombia, Venezuela, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced.
Edgar Ruiz-Gomez, aka “Gono,” 57, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to count one of an indictment charging him with conspiracy to import five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2016 through January 2020, Ruiz-Gomez and others conspired to import hundreds of kilograms of cocaine. Ruiz-Gomez acknowledged holding a managerial role in this conspiracy, which involved more than five individuals.
The count to which Ruiz-Gomez pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million. Sentencing is scheduled for Nov. 5, 2024.
U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz in Newark, and special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico, with the investigation leading to today’s guilty plea. He also thanked the Justice Department’s Office of International Affairs; the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office at the U.S. Embassy in Bogota; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
ruizgomez.indictment.pdfColombia Native Charged with Illegal ReentryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Leonardo Moreno Bernal, age 42, of Colombia, was indicted by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Moreno Bernal was previously removed from the United States on August 27, 2012, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on April 25, 2024, Moreno Bernal was encountered in Centre County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Tatum Wilson is prosecuting the case.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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City Man Who Shot at People on South Philadelphia Street Sentenced to 12 Years in Prison for Firearms ViolationRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kalief Ladson, 29, of Philadelphia, PA, was sentenced by Senior United States District Court Judge Michael M. Baylson to 144 months’ imprisonment and three years of supervised release for possession of ammunition by a felon.
On the morning of January 23, 2023, at approximately 11:45 a.m., Ladson and one other person parked their car in the area of 2100 S. 8th Street in South Philadelphia. The two walked around the corner and Ladson produced a semiautomatic firearm with an extended magazine. Ladson fired at least 17 shots at a group of men standing on a nearby corner as he ran up the sidewalk. Innocent bystanders out on the street that morning began to flee and hide as Ladson fired at his intended targets. He then fled on foot back to his car and drove off.
The shooting was captured on surveillance video and recovered by Philadelphia Police Department investigators. After reviewing the footage, witnesses were able to identify Ladson from the video. A Philadelphia Police Department ballistician determined that all of the fired cartridge casings recovered from where Ladson could be seen shooting had been fired from the same gun.
On April 13, 2023, a grand jury returned an indictment charging Ladson with one count of possession of ammunition by a felon. On November 8, 2023, Ladson proceeded to trial and a jury found him guilty on November 9, 2023.
“Firing a fusillade of shots at people on a busy Philly street — in broad daylight — is beyond reckless,” said U.S. Attorney Romero. “This easily could have turned into a mass tragedy. Kalief Ladson has proven he’s too dangerous to walk free right now. He’s got the next 12 years behind bars to think about what he’s done and how lucky he was not to kill anybody. In the meantime, we and our partners will continue to go after these violent offenders determined to wreak havoc in our city.”
“ATF is committed to working with our partners to prevent such violent crimes,” said Eric J. DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Ladson’s reckless behavior put his community at grave risk.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys Martin E. Howley, Jr. and Thomas M. Zaleski.
Cincinnati Man Sentenced to 20 Years for Distributing Fentanyl that Resulted in DeathRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Dominic Jackson, 31, was sentenced on Thursday, by U.S. District Judge David Bunning, to 240 months in prison, for distribution of fentanyl resulting in death.
According to his plea agreement, on November 3, 2021, law enforcement and medical workers responded to a call for an unresponsive person in Boone County. Upon arrival, responders found the deceased victim with symptoms consistent with an opioid overdose. Officers reviewed the victim’s phone, and it contained communications from Jackson indicating that he had sold drugs to the victim earlier that same day.
Law enforcement then used the victim’s phone to text Jackson and arranged to purchase another quarter ounce of the same substance previously sold to the victim. They advised Jackson where to put the drugs and where the money was located. Jackson showed up to the residence, took the money, and left 6.667 grams of a substance containing fentanyl and para-flurorofentanyl. Jackson admitted to distributing a substance containing fentanyl and para-flurorofentanyl to the victim, who died as a result of ingesting it.
Under federal law, Jackson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Jackson was also ordered to make restitution in the amount of $7,243 to the family of the victim for burial expenses.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division; and Director Scott Hardcorn, Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by DEA and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.
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Cincinnati Man Sentenced for Distribution of Child PornographyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Joshua Robert Flick, 35, was sentenced on Thursday, by U.S. District Judge David Bunning, to 15 years in prison, for distribution of child pornography.
According to his plea agreement, on December 1, 2022, Flick communicated with a covert law enforcement employee, via the Kik application on his iPhone, and indicated that he was sexually interested in minors. On two additional occasions, on December 9, 2022, and December 11, 2022, Flick communicated with the covert employee and sent multiple visual depictions of minors engaged in sexually explicit conduct. Flick admitted that he knowingly distributed the images, and he knew those images depicted minors engaged in sexually explicit conduct.
Flick was arrested on an outstanding warrant on January 11, 2023, and his phone was searched. The search revealed over 70 images and approximately 90 videos depicting minors engaged in sexually explicit conduct.
Under federal law, Flick must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 15 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Andrew Spievack is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Child Predator Sentenced After Federal Jury ConvictionRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Lance Douglas Roark, 43, of Bluejacket.
After a three-day trial in January, where Roarke represented himself, a jury convicted him of Abusive Sexual Contact with a Minor Under 12 Years of Age in Indian Country and Assault with Intent to Commit Aggravated Sexual Abuse of a Minor Under 12 Years of Age in Indian Country. When the child victim testified, she was cross-examined by Roark.
Judge Frizzell ordered Roark to serve 235 months imprisonment, followed by lifetime supervised release. Upon his release, Roark will also be required to register as a sex offender. Judge Frizzell further ordered Roark to pay the maximum restitution of $5,000.
Roark is a citizen of the Delaware Tribe of Indians and he will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI and Craig County Sheriff’s Office investigated the case. Assistant U.S. Attorney Alicia N. Hockenbury
prosecuted the case.This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Charges and Seizures Brought in Fraud Scheme, Aimed at Denying Revenue for Workers Associated with North KoreaRead the Press Release
The Justice Department unsealed charges, seizures, and other court-authorized actions to disrupt the illicit revenue generation efforts of the Democratic People’s Republic of Korea (DPRK or North Korea).
The charges include prosecutions of an Arizona woman, Ukrainian man, and three unidentified foreign nationals who allegedly participated in schemes to place overseas information technology (IT) workers—posing as U.S. citizens and residents—in remote positions at U.S. companies.
As alleged in the court documents, DPRK has dispatched thousands of skilled IT workers around the world, who used stolen or borrowed U.S. persons’ identities to pose as domestic workers, infiltrate domestic companies’ networks, and raise revenue for North Korea. The schemes described in court documents involved defrauding over 300 U.S. companies using U.S. payment platforms and online job site accounts, proxy computers located in the United States, and witting and unwitting U.S. persons and entities. This announcement includes the largest case ever charged by the Justice Department involving this type of IT workers’ scheme.
Two criminal prosecutions brought by the U.S. Attorney’s Office for the District of Columbia, one in partnership with the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division, were unsealed today. As part of the prosecutions, two defendants have been arrested and related seizures and search warrants have been executed in Washington, D.C., and other jurisdictions. The investigations were led by the FBI Phoenix and New York Field Offices and IRS Criminal Investigation (IRS-CI), and coordinated with five other FBI field offices and four other U.S. Attorneys’ Offices, producing arrests in the United States and Poland, the execution of five premises search warrants, and the seizure of illicitly obtained wages and a website domain.
“As alleged in the indictment, Chapman and her co-conspirators committed fraud and stole the identities of American citizens to enable individuals based overseas to pose as domestic, remote IT workers,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The charges in this case should be a wakeup call for American companies and government agencies that employ remote IT workers. These crimes benefitted the North Korean government, giving it a revenue stream and, in some instances, proprietary information stolen by the co-conspirators. The Criminal Division remains firm in its commitment to prosecute complex criminal schemes like this one.”
“Today’s announcement of charges and law enforcement action show our broad approach to attacking funding sources for North Korea across the United States,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, that use U.S. financial systems to raise revenue for North Korea.”
“On the surface, today’s allegations of wire fraud, identity theft, and money laundering may read like a typical white collar or economic crime scheme,” said Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division. “But what these allegations truly represent is a new high-tech campaign to evade U.S. sanctions, victimize U.S. businesses, and steal U.S. identities. The charges clearly demonstrate how the FBI and its partners will employ every resource at our disposal to bring to justice anyone who helps North Korea evade sanctions.”
An indictment was unsealed today in the District of Columbia against U.S. citizen Christina Marie Chapman, 49, of Litchfield Park, Arizona, related to her participation in a scheme to assist overseas IT workers—posing as U.S. citizens and residents—in working at more than 300 U.S. companies in remote IT positions. Chapman was arrested yesterday in Litchfield Park, Arizona.
As alleged in the indictment, Chapman and her co-conspirators’ scheme defrauded U.S. companies across myriad industries, including multiple well-known Fortune 500 companies, U.S. banks, and other financial service providers. The identities of more than 60 U.S. persons were compromised and used by IT workers related to Chapman’s cell.
In addition to Chapman, the indictment charged three foreign nationals with money laundering for their participation in the scheme. As alleged in the indictment, the department seized wages earned by more than 19 overseas IT workers and will seek forfeiture of the same.
Additionally, a criminal complaint was unsealed today in the District of Columbia charging Ukrainian national Oleksandr Didenko, 27, of Kyiv, with a separate years-long scheme to create fake accounts at U.S. IT job search platforms and with U.S.-based money service transmitters.
As alleged in the complaint, Didenko sold the accounts to overseas IT workers, some of whom he believed were North Korean, and the overseas IT workers used the false identities to apply for jobs with unsuspecting companies. Several U.S. persons had their identities used by IT workers related to Didenko’s cell, and evidence in the complaint showed that the overseas IT workers using Didenko’s services were also working with Chapman. Polish authorities arrested Didenko on May 6 at the request of the United States, which is seeking Didenko’s extradition from Poland.
Didenko’s company’s online domain, upworksell.com, was also seized today by the Justice Department pursuant to a court order, and all traffic diverted to the FBI.
Related to the above schemes, the FBI executed search warrants for U.S. based “laptop farms,” residences that hosted multiple laptops for overseas IT workers, wherein U.S.-based facilitators logged onto U.S. company computer networks and then allowed the overseas IT workers to remotely access those laptops through various software applications. The overseas IT workers used the laptop farms’ U.S. Internet Protocol addresses to make it appear as though they were operating inside the United States. Chapman’s residence was searched in October 2023 pursuant to a search warrant issued in the District of Arizona, resulting in evidence that is reflected in the indictment. Search warrants for four U.S. residences associated with laptop farms controlled by Didenko were issued in the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, and executed between May 8 and May 10.
Concurrent with today’s announcement, the U.S. Department of State announced a reward of up to $5 million for information related to Chapman’s coconspirators: John Doe 1, alias Jiho Han; John Doe 2, alias Haoran Xu; John Doe 3, alias Chunji Jin; and an unindicted coconspirator utilizing aliases “Zhonghua” and “Venechor S.”
Chapman Indictment, Money Seizures, and Premises Warrant
According to the indictment, the overseas IT workers associated with Chapman, many of whom were tied to North Korea, posed as U.S. citizens using the stolen, false, or borrowed identities of U.S. nationals, and applied for positions at U.S companies, causing the transmission of false documentation to the U.S. Department of Homeland Security (DHS). The overseas IT workers gained employment at U.S. companies, including at a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car manufacturer, a luxury retail store, and a U.S.-hallmark media and entertainment company, all of which were Fortune 500 companies. Some of these companies were purposely targeted by a group of DPRK IT workers, who maintained postings for companies at which they wanted to insert IT workers.
Chapman ran a “laptop farm,” hosting the overseas IT workers’ computers inside her home so it appeared that the computers were located in the United States, and also received and forged payroll checks and received direct deposits of the overseas IT workers’ wages from the U.S. companies into her U.S. financial accounts. The overseas IT workers also attempted to gain employment and access to information at two different U.S. government agencies on three different occasions, although these efforts were generally unsuccessful. The overseas IT workers associated with Chapman’s cell were paid millions for their work, much of which has been falsely reported to the IRS and the Social Security Administration in the name of the actual U.S. persons whose identities were stolen or borrowed. Chapman also allegedly conspired with the John Doe defendants to commit money laundering by conducting financial transactions under aliases to receive money generated by the scheme and transfer those funds outside of the United States, in an attempt to hide that these were proceeds of the IT workers’ fraud.
Chapman and her co-conspirators allegedly compromised more than 60 identities of U.S. persons, impacted more than 300 U.S. companies, caused false information to be conveyed to DHS on more than 100 occasions, created false tax liabilities for more than 35 U.S. persons, and resulted in at least $6.8 million of revenue to be generated for the overseas IT workers. The department seized funds related to scheme from Chapman as well as wages and monies accrued by more than 19 overseas IT workers.
“Using the stolen identities of U.S. citizens is a crime by itself, but when you use those identities to procure employment for foreign nationals with ties to North Korea at hundreds of U.S. companies, you have compromised the national security of an entire nation,” said Chief Guy Ficco of IRS-CI. “For more than 100 years, IRS Criminal Investigation special agents have been following the money, and their financial expertise has once again stopped criminals in their tracks.”
Chapman is charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit identity fraud, conspiracy to launder monetary instruments, operating as an unlicensed money transmitting business, and unlawful employment of aliens. The John Does are charged with conspiracy to commit money laundering. If convicted, Chapman faces a maximum penalty of 97.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count, and the John Does face a maximum penalty of 20 years in prison.
The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are investigating this case, with assistance from the FBI Chicago Field Office.
Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas. The U.S. Attorney’s Office for the District of Arizona and Trial Attorney Gregory Nicosia of the National Security Division’s National Security Cyber Section also provided valuable assistance.
Didenko Complaint, Domain Seizure, and Premises Warrants
According to the criminal complaint, Didenko allegedly engaged in a multi-year scheme to create accounts at U.S.-based freelance IT job search platforms and with U.S. money service transmitters in the names of false identities, including identities of U.S. persons, and sold these accounts to overseas IT workers. Didenko ran a website, upworksell.com, which advertised creating, buying, and renting accounts at U.S. websites using false identities, and also advertised “Credit Card Rental” in the European Union and the United States and SIM card rental for cellular phones. Didenko allegedly offered a full array of services to allow an individual to pose under a false identity and market themselves for remote IT work with unsuspecting companies. As stated, Didenko’s domain was seized as part of the case.
According to the affidavit in support of the complaint, Didenko is alleged to have managed as many as approximately 871 “proxy” identities, provided proxy accounts for three freelance U.S. IT hiring platforms, and provided proxy accounts for three different U.S.-based money service transmitters. In coordination with his co-conspirators, Didenko facilitated the operation of at least three U.S.-based laptop farms, at one point hosting approximately 79 computers. Didenko sent or received $920,000 in U.S. dollar payments since July 2018.
Didenko acknowledged in messages that he believed he was assisting North Korean IT workers. One of Didenko’s overseas IT worker customers also requested that a laptop be sent from one of Didenko’s U.S. laptop farms to Chapman’s laptop farm, showing the interconnectivity of these cells within the DPRK overseas IT worker network. Search warrants of Didenko’s laptop farms were executed in early May.
If convicted, Didenko faces a maximum penalty of 67.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count.
The FBI New York Field Office is investigating this case. The FBI Norfolk and San Diego Field Offices and the Jefferson City, Tennessee, Resident Agency provided assistance in executing search warrants.
Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas and the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorney’s Offices for the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, Justice Department’s Office of International Affairs, and Trial Attorney Jacques-Singer Emory of the National Security Division’s National Security Cyber Section provided valuable assistance as well.
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The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector, and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Charges and Seizures Brought in Fraud Scheme Aimed at Denying Revenue for Workers Associated with North KoreaRead the Press Release
WASHINGTON – The Justice Department unsealed charges, seizures, and other court-authorized actions to disrupt the illicit revenue generation efforts of the Democratic People’s Republic of Korea (DPRK or North Korea).
The charges include prosecutions of an Arizona woman, Ukrainian man, and three unidentified foreign nationals who allegedly participated in schemes to place overseas information technology (IT) workers—posing as U.S. citizens and residents—in remote positions at U.S. companies.
As alleged in the court documents, DPRK has dispatched thousands of skilled IT workers around the world, who used stolen or borrowed U.S. persons’ identities to pose as domestic workers, infiltrate domestic companies’ networks, and raise revenue for North Korea. The schemes described in court documents involved defrauding over 300 U.S. companies using U.S. payment platforms and online job site accounts, proxy computers located in the United States, and witting and unwitting U.S. persons and entities. This announcement includes the largest case ever charged by the Justice Department involving this type of IT workers’ scheme.
Two criminal prosecutions brought by the U.S. Attorney’s Office for the District of Columbia, one in partnership with the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division, were unsealed today. As part of the prosecutions, two defendants have been arrested and related seizures and search warrants have been executed in Washington, D.C. and other jurisdictions. The investigations were led by the FBI Phoenix and New York Field Offices and IRS Criminal Investigations (IRS-CI), and coordinated with five other FBI field offices and four other U.S. Attorney’s Offices, producing arrests in the United States and Poland, the execution of five premises search warrants, and the seizure of illicitly obtained wages and a website domains.
“As alleged in the indictment, Chapman and her co-conspirators committed fraud and stole the identities of American citizens to enable individuals based overseas to pose as domestic, remote IT workers,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The charges in this case should be a wakeup call for American companies and government agencies that employ remote IT workers. These crimes are alleged to have benefitted the North Korean government. The Criminal Division remains firm in its commitment to prosecute complex criminal schemes like this one.”
“Today’s announcement of charges and law enforcement action show our broad approach to attacking funding sources for North Korea across the United States,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, that use U.S. financial systems to raise revenue for North Korea.”
“On the surface, today’s allegations of wire fraud, identity theft, and money laundering may read like a typical white collar or economic crime scheme,” said Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division. “But what these allegations truly represent is a new high-tech campaign to evade U.S. sanctions, victimize U.S. businesses, and steal U.S. identities. The charges clearly demonstrate how the FBI and its partners will employ every resource at our disposal to bring to justice anyone who helps North Korea evade sanctions.”
“The FBI has long-stated that cybersecurity is national security and this case is living proof of that,” said FBI Special Agent in Charge Akil Davis of the Phoenix Field Office. “That a woman living her quiet life in the outskirts of Phoenix can allegedly get so entangled in something like this clearly indicates our adversaries are getting more sophisticated and stealthier, so it’s critical that businesses and citizens be hyper-vigilant with their cyber activities.”
“Today’s announcement exposes disturbing criminal ties to North Korea where fraudsters allegedly used stolen identities of U.S. citizens to infiltrate the U.S. job market as remote workers,” said IRS Criminal Investigation Acting Special Agent in Charge of the Phoenix Field Office Carissa Messick. “CI and our federal partners will remain vigilant in our efforts to expose criminal fraud schemes that jeopardize our national security.”
“Oleksandr Didenko allegedly owned and operated U.S.-based online infrastructure as well as fraudulent and stolen U.S. persons’ identities for use by Information Technology workers in North Korea in an effort to evade sanctions,” said FBI Assistant Director Smith of the New York Field Office. “The arrest of Didenko demonstrates the FBI’s commitment to protecting the United States from threats posed by a hostile foreign actors, specifically the government of the Democratic Peoples Republic of Korea. Didenko's arrest also sends a clear message to anyone who supports this type of brazen illegal activity the FBI and our global law enforcement partners will hold you accountable wherever you may be.”
An indictment was unsealed today in the District of Columbia against U.S. citizen Christina Marie Chapman, 49, of Litchfield Park, Arizona, related to her participation in a scheme to assist overseas IT workers—posing as U.S. citizens and residents—in working at more than 300 U.S. companies in remote IT positions. Chapman was arrested yesterday in Litchfield Park, Arizona.
As alleged in the indictment, Chapman and her co-conspirators’ scheme defrauded U.S. companies across myriad industries, including multiple well-known Fortune 500 companies, U.S. banks, and other financial service providers. The identities of more than 60 U.S. persons were compromised and used by IT workers related to Chapman’s cell.
In addition to Chapman, the indictment charged three foreign nationals with money laundering for their participation in the scheme. As alleged in the indictment, the department seized wages earned by more than 19 overseas IT workers and will seek forfeiture of the same.
Additionally, a criminal complaint was unsealed today in the District of Columbia charging Ukrainian national Oleksandr Didenko, 27, of Kyiv, with a separate years-long scheme to create fake accounts at U.S. IT job search platforms and with U.S.-based money service transmitters.
As alleged in the complaint, Didenko sold the accounts to overseas IT workers, some of whom he believed were North Korean, and the overseas IT workers used the false identities to apply for jobs with unsuspecting companies. Several U.S. persons had their identities used by IT workers related to Didenko’s cell, and evidence in the complaint showed that the overseas IT workers using Didenko’s services were also working with Chapman. Polish authorities arrested Didenko on May 6 at the request of the United States, which is seeking Didenko’s extradition from Poland.
Didenko’s company’s online domain, upworksell.com, was also seized today by the Justice Department pursuant to a court order, and all traffic diverted to the FBI.
Related to the above schemes, the FBI executed search warrants for U.S. based “laptop farms,” residences that hosted multiple laptops for overseas IT workers, wherein U.S.-based facilitators logged onto U.S. company computer networks and then allowed the overseas IT workers to remotely access those laptops through various software applications. The overseas IT workers used the laptop farms’ U.S. Internet Protocol addresses to make it appear as though they were operating inside the United States. Chapman’s residence was searched in October 2023 pursuant to a search warrant issued in the District of Arizona, resulting in evidence that is reflected in the indictment. Search warrants for four U.S. residences associated with laptop farms controlled by Didenko were issued in the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, and executed between May 8 and May 10.
Concurrent with today’s announcement, the U.S. Department of State announced a reward of up to $5 million for information related to Chapman’s coconspirators: John Doe 1, alias Jiho Han; John Doe 2, alias Haoran Xu; John Doe 3, alias Chunji Jin; and an unindicted coconspirator utilizing aliases “Zhonghua” and “Venechor S.”
Chapman Indictment, Money Seizures, and Premises Warrant
According to the indictment, the overseas IT workers associated with Chapman, many of whom were tied to North Korea, posed as U.S. citizens using the stolen, false, or borrowed identities of U.S. nationals, and applied for positions at U.S companies, causing the transmission of false documentation to the U.S. Department of Homeland Security (DHS). The overseas IT workers gained employment at U.S. companies, including at a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car manufacturer, a luxury retail store, and a U.S.-hallmark media and entertainment company, all of which were Fortune 500 companies. Some of these companies were purposely targeted by a group of DPRK IT workers, who maintained postings for companies at which they wanted to insert IT workers.
Chapman ran a “laptop farm,” hosting the overseas IT workers’ computers inside her home so it appeared that the computers were located in the United States, and also received and forged payroll checks and received direct deposits of the overseas IT workers’ wages from the U.S. companies into her U.S. financial accounts. The overseas IT workers also attempted to gain employment and access to information at two different U.S. government agencies on three different occasions, although these efforts were generally unsuccessful. The overseas IT workers associated with Chapman’s cell were paid millions for their work, much of which has been falsely reported to the IRS and the Social Security Administration in the name of the actual U.S. persons whose identities were stolen or borrowed. Chapman also allegedly conspired with the John Doe defendants to commit money laundering by conducting financial transactions under aliases to receive money generated by the scheme and transfer those funds outside of the United States, in an attempt to hide that these were proceeds of the IT workers’ fraud.
Chapman and her co-conspirators allegedly compromised more than 60 identities of U.S. persons, impacted more than 300 U.S. companies, caused false information to be conveyed to DHS on more than 100 occasions, created false tax liabilities for more than 35 U.S. persons, and resulted in at least $6.8 million of revenue to be generated for the overseas IT workers. The department seized funds related to scheme from Chapman as well as wages and monies accrued by more than 19 overseas IT workers.
“Using the stolen identities of U.S. citizens is a crime by itself, but when you use those identities to procure employment for foreign nationals with ties to North Korea at hundreds of U.S. companies, you have compromised the national security of an entire nation,” said Chief Guy Ficco of IRS-CI. “For more than 100 years, IRS Criminal Investigation special agents have been following the money, and their financial expertise has once again stopped criminals in their tracks.”
Chapman is charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit identity fraud, conspiracy to launder monetary instruments, operating as an unlicensed money transmitting business, and unlawful employment of aliens. The John Does are charged with conspiracy to commit money laundering. If convicted, Chapman faces a maximum penalty of 97.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count, and the John Does face a maximum penalty of 20 years in prison.
The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are investigating this case, with assistance from the FBI Chicago Field Office.
Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas. The U.S. Attorney’s Office for the District of Arizona and Trial Attorney Gregory Nicosia of the National Security Division’s National Security Cyber Section also provided valuable assistance.
Didenko Complaint, Domain Seizure, and Premises Warrants
According to the criminal complaint, Didenko allegedly engaged in a multi-year scheme to create accounts at U.S.-based freelance IT job search platforms and with U.S. money service transmitters in the names of false identities, including identities of U.S. persons, and sold these accounts to overseas IT workers. Didenko ran a website, upworksell.com, which advertised creating, buying, and renting accounts at U.S. websites using false identities, and also advertised “Credit Card Rental” in the European Union and the United States and SIM card rental for cellular phones. Didenko allegedly offered a full array of services to allow an individual to pose under a false identity and market themselves for remote IT work with unsuspecting companies. As stated, Didenko’s domain was seized as part of the case.
According to the affidavit in support of the complaint, Didenko is alleged to have managed as many as approximately 871 “proxy” identities, provided proxy accounts for three freelance U.S. IT hiring platforms, and provided proxy accounts for three different U.S.-based money service transmitters. In coordination with his co-conspirators, Didenko facilitated the operation of at least three U.S.-based laptop farms, at one point hosting approximately 79 computers. Didenko sent or received $920,000 in U.S. dollars payments since July 2018.
Didenko acknowledged in messages that he believed he was assisting North Korean IT workers. One of Didenko’s overseas IT worker customers also requested that a laptop be sent from one of Didenko’s U.S. laptop farms to Chapman’s laptop farm, showing the interconnectivity of these cells within the DPRK overseas IT worker network. Search warrants of Didenko’s laptop farms were executed in early May 2024.
If convicted, Didenko faces a maximum penalty of 67.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count.
The FBI New York Field Office is investigating this case. The FBI Norfolk and San Diego Field Offices and the Jefferson City, Tennessee, Resident Agency provided assistance in executing search warrants.
Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas and the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorney’s Offices for the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, Justice Department’s Office of International Affairs, and Trial Attorney Jacques Singer-Emery of the National Security Division’s National Security Cyber Section provided valuable assistance as well.
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The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector, and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chairman of Multinational Investment Company and Company Consultant Convicted of Bribery Scheme at RetrialRead the Press Release
A federal jury in Charlotte, North Carolina, convicted the founder and chairman of a multinational investment company and a company consultant yesterday after a retrial for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
According to court documents and evidence presented at trial, from April 2017 to August 2018, Greg E. Lindberg, 54, of Durham, North Carolina, the founder and chairman of Eli Global LLC and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 73, of Chapel Hill, North Carolina, engaged in a bribery scheme involving independent expenditure committees and improper campaign contributions for the purpose of causing the Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) to take official action favorable to Lindberg’s company, GBIG. Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing the regulation and the periodic examination of GBIG.
Lindberg, Gray, and the Commissioner held numerous in-person meetings at different locations and had telephonic and other communications with each other, a third codefendant, Robert Cannon Hayes, 74, of Concord, North Carolina, and others to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. To conceal the bribery scheme, Lindberg directed the establishment of two corporate entities to form independent expenditure committees with the purpose of supporting the Commissioner’s re-election campaign. Lindberg then funded the entities with $1.5 million, as promised to the Commissioner. In addition, at Lindberg’s and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party, which Hayes chaired, to the Commissioner’s re-election campaign.
The jury convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds. They face a maximum penalty of 30 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hayes pleaded guilty in October 2019 to making false statements to the FBI.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and U.S. Attorney Dena J. King for the Western District of North Carolina; Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case.
Trial Attorney William Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Lawrence Cameron and Dana Washington for the Western District of North Carolina are prosecuting the case.
Carter County Resident Sentenced for Role in Defrauding A RetireeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amber Nicole Pickelsimer, age 45, of Healdton, Oklahoma, was sentenced to 41 months in prison for one count of Wire Fraud. Pickelsimer was also ordered to pay restitution to the victim in the amount of $1,050,000.
The charge arose from an investigation by the Federal Bureau of Investigation.
On July 20, 2023, Pickelsimer pleaded guilty to one count of Wire Fraud. As part of the plea, Pickelsimer admitted to defrauding a victim of their retirement savings through a blackmail scheme perpetrated over nineteen months between 2019 and 2020. According to investigators, Pickelsimer targeted a retired acquaintance, created fake Facebook accounts, then used those accounts to extort money from the victim. Pickelsimer initiated contact with the victim through one of the fake accounts, falsely claimed to possess damaging material about a family member and threatened to release the damaging material unless the victim delivered large quantities of money to a drop site. Soon after, Pickelsimer created an additional fake Facebook account and multiple false personas to send messages to threaten the victim into making additional payments.
“We take extortion threats very seriously and will investigate them to the fullest extent of federal law,” said Acting Special Agent in Charge Sonia Garcia of the FBI Oklahoma City Field Office. “The criminals who think they can extort innocent people should know there will be consequences. These crimes cause severe emotional distress to the victims and will not be tolerated.”
“Online extortion can be financially and emotionally devastating, but it can be stopped,” said United States Attorney Christopher J. Wilson. “If you believe you or someone you know is the target of cyberextortion or blackmail, do not be afraid to reach out for help.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Pickelsimer will self-report on June 13, 2024, to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kara Traster represented the United States.
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, Monday through Friday, from 9:00 a.m. to 5:00 p.m. CT.
1-833-FRAUD-11 (1-833-372-8311)Or to file a complaint, visit the Internet Crime Complaint Center (IC3), the FBI’s central hub for reporting cybercrime, at https://www.ic3.gov/Home/ComplaintChoice and select “Elder Fraud.”
Cape Cod Hospital to Pay $24.3 Million to Resolve False Claims Act Allegations Concerning Its Failure to Comply with Medicare Rules for Cardiac ProceduresRead the Press Release
Cape Cod Hospital, based in Hyannis, Massachusetts, has agreed to pay $24.3 million to resolve False Claims Act allegations that it knowingly submitted claims to Medicare for transcatheter aortic valve replacement (TAVR) procedures that failed to comply with Medicare rules specifying the way in which hospitals were required to evaluate patient suitability for the procedures.
Beginning in 2015, Cape Cod Hospital began offering TAVR procedures for patients suffering from aortic stenosis, a serious heart condition that restricts blood flow from the heart to rest of the body. A TAVR procedure involves replacing a patient’s damaged heart valve with an artificial one. Medicare rules at the time required that, prior to performing a TAVR procedure, hospitals engage specified clinical personnel to conduct an independent examination of prospective patients to evaluate their suitability for TAVR, document the rationale for their clinical judgment and make the rationale available to the medical team performing the TAVR procedure. The settlement resolves allegations that from Nov. 1, 2015, through Dec. 31, 2022, Cape Cod Hospital knowingly submitted hundreds of claims to Medicare for TAVR procedures that did not comply with the applicable Medicare requirements. In some instances, not enough physicians examined a patient’s suitability for the procedure, while in other instances the physicians failed to document and share their clinical judgment with the medical team responsible for the TAVR procedure.
“Hospitals that participate in the Medicare program must abide by applicable coverage and reimbursement rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold healthcare providers accountable when they knowingly fail to comply with Medicare reimbursement requirements.”
“Medicare permitted coverage for this newly developed cardiac procedure only under certain conditions to ensure patient safety. Cape Cod Hospital ignored those rules and received millions of dollars from Medicare to which it was not entitled. This conduct persisted for years despite internal warnings,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This investigation and settlement ensures that patient safety is prioritized over a hospital’s bottom line.”
In connection with the settlement, Cape Cod Hospital has entered into a five-year corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its paid Medicare claims by an Independent Review Organization.
“Health care providers are expected to follow Medicare rules and bill properly,” said Special Agent in Charge Roberto Coviello of HHS-OIG. “We are committed to pursuing allegations of False Claims Act violations as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”
Cape Cod Hospital received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, Cape Cod Hospital voluntarily produced materials, identified the relevant medical records, admitted that it failed to adhere to the applicable Medicare requirements and implemented appropriate remedial measures.
The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act by Richard Zelman, a physician formerly employed by Cape Cod Hospital. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Zelman v. Cape Cod Hospital, No. 1:22-cv-11204 (D. Mass.). As part of today’s resolution, Dr. Zelman will receive approximately $4.36 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Kimya Saied of the Fraud Section and Assistant U.S. Attorney Andrew A. Caffrey, III for the District of Massachusetts handled the matter.
Except for the facts admitted by Cape Cod Hospital, the claims in the complaint are allegations only, and there has been no determination of liability.
SettlementCape Cod Hospital to Pay $24.3 Million to Resolve Allegations That It Failed to Comply with Medicare Cardiac Procedure RulesRead the Press Release
BOSTON – Cape Cod Hospital has agreed to pay $24.3 million to resolve allegations that it knowingly submitted claims to Medicare for transcatheter aortic valve replacement (TAVR) procedures that failed to comply with Medicare rules specifying the way in which hospitals were required to evaluate patient suitability for the procedures.
Beginning in 2015, Cape Cod Hospital began offering TAVR procedures for patients suffering from aortic stenosis, a serious heart condition that restricts blood flow from the heart to the rest of the body. A TAVR procedure involves replacing a patient’s damaged heart valve with an artificial one. Medicare rules at the time required that, prior to performing a TAVR procedure, hospitals engage specified clinical personnel to conduct an independent examination of prospective patients to evaluate their suitability for TAVR; document the rationale for their clinical judgment; and make the rationale available to the medical team performing the TAVR procedure.
The settlement resolves allegations that from November 2015 through December 2022, Cape Cod Hospital knowingly submitted hundreds of claims to Medicare for TAVR procedures that did not comply with the applicable Medicare requirements. In some instances, not enough physicians examined a patient’s suitability for the procedure, while in other instances the physicians failed to document and share their clinical judgment with the medical team responsible for the TAVR procedure.
“Medicare permitted coverage for this newly developed cardiac procedure only under certain conditions, to ensure patient safety. Cape Cod Hospital ignored those rules and received millions of dollars from Medicare to which it was not entitled. This conduct persisted for years despite internal warnings,” said Acting United States Attorney Joshua S. Levy for the District of Massachusetts. “This investigation and settlement ensure that patient safety is prioritized over a hospital’s bottom line.”
“Hospitals that participate in the Medicare program must abide by applicable coverage and reimbursement rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold healthcare providers accountable when they knowingly fail to comply with Medicare reimbursement requirements.”
“Health care providers are expected to follow Medicare rules and bill properly,” said Roberto Coviello, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to pursuing allegations of False Claims Act violations as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”
In connection with the settlement, Cape Cod Hospital has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its paid Medicare claims by an Independent Review Organization.
Cape Cod Hospital received credit under the Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases. Among other actions, Cape Cod Hospital voluntarily produced materials, identified the relevant medical records, admitted that it failed to adhere to the applicable Medicare requirements and implemented appropriate remedial measures.
The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, the whistleblower will receive approximately $4.36 million.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorney Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit handled the matter along with Trial Attorney Kimya Saied of the Department of Justice’s Fraud Section.