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27 June 2024
Barling Man Pleads Guilty to Threatening Federal Judge and Child Pornography OffenseRead the Press Release
FORT SMITH – A Barling man pled guilty today to one count of Threatening a Federal Official and one count of Receipt of Child Pornography. The Honorable Judge Mark E. Ford presided over the change of plea hearing in the United States District Court in Fort Smith.
According to the plea agreement, Fort Smith Police Department was dispatched to a local shopping establishment pursuant to a 911 call wherein the caller stated the defendant, Rodney Dewayne Sheffield, age 40, had traveled to the shopping establishment in Fort Smith, Arkansas with the intent to shoot people.
Officers with the Fort Smith Police Department subsequently made a traffic stop on Sheffield for operating his vehicle in a reckless manner on Rogers Avenue in Fort Smith. During the traffic stop, the officer observed a rifle on the passenger side floorboard of the vehicle. The Officer separated Sheffield from the rifle and located ammunition on his person.
Further investigation showed Sheffield had a pending Social Security disability claim and was upset at the status of the claim. A witness stated Sheffield had traveled to the building where the Social Security administration offices were located and told him, “I’ve had enough, I can’t take it anymore.” The individual further stated Sheffield told him he was going to shoot the Social Security Administrative Law Judge. Sheffield stated he wanted to do this to “teach the Government a lesson.” The individual stated he called 911 after speaking to Sheffield.
Subsequently a search warrant was obtained for Sheffield’s phone. Officers located images and videos of child pornography including children as young as approximately 5 years old on Sheffield’s phone.
Sheffield’s sentencing date will be set at a later time. He faces a maximum sentence of 10 years imprisonment for Threatening the Federal Official and a minimum of 5 years imprisonment, maximum of 20 years for the Receipt of Child Pornography. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigation, Office of the Inspector General Social Security Administration and Fort Smith Police Department are investigating the case.
Assistant U.S. Attorney Carly Marshall is prosecuting the case.
Attorney General Merrick B. Garland Statement on the Supreme Court’s Order in Moyle v. United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the Supreme Court’s order in Moyle v. United States:
“The Justice Department filed this lawsuit because the Emergency Medical Treatment and Labor Act, or EMTALA, guarantees essential emergency care to all Americans, no matter which state they live in. If a patient comes into the emergency room with a medical emergency seriously jeopardizing the patient’s life or health, EMTALA requires hospitals to offer the treatment necessary to stabilize that patient — including pregnancy termination, if that is the treatment required to save a woman’s life or prevent serious harm to her health. Today’s order means that, while we continue to litigate our case, women in Idaho will once again have access to the emergency care guaranteed to them under federal law. The Justice Department will continue to use every available tool to ensure that women in every state have access to that care.”
Arkansas Man Sentenced to 10 Years in Prison for Exchanging Nude Pictures with GirlRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced an Arkansas man who exchanged nude pictures with a minor for five years to 10 years in prison.
Joseph D. Najera, now 26, and the victim met in 2017 via Kik Messenger when Najera sent her a friend request. The victim was 12 and told Najera her age. Najera sent the victim artwork depicting nudity, pornography and graphic violence. He had her create drawings, and his instructions about what to draw became increasingly complex and sexual. On numerous occasions, Najera told the victim to perform sex acts during video chats, and to create pornographic images and pictures. He also sent her pornographic videos. Najera exerted control over the victim, telling her she was not allowed to talk with boys at school. He had to approve her makeup, her clothes and whether she cut her hair. He also had parental controls set up on her phone to monitor her actions. They discussed meeting in person but never did.
Najera, 25, of Lincoln, Arkansas, pleaded guilty in March to one felony count of coercion and enticement of a minor.
The FBI, the St. Charles County Cyber Crime Task Force, the St. Charles County Police Department and the Montgomery City Police Department investigated the case. Assistant U.S. Attorney Jillian Anderson 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 U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Angelina County felon sentenced for federal drug trafficking and firearms violationRead the Press Release
BEAUMONT, Texas – A Lufkin man was sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Johnathan Edward Brandt, 38, pleaded guilty to possession with intent to distribute methamphetamine and being a prohibited person in possession of a firearm and was sentenced to 188 months in federal prison by U.S. District Judge Marcia A. Crone on June 27, 2024.
According to information presented in court, in early 2023, law enforcement agents made multiple undercover purchases of methamphetamine from Brandt. Agents were also able to purchase a firearm from Brandt during one of the undercover purchases.
In March of 2023, Brandt was arrested after law enforcement responded to a report of individuals wearing ski masks and carrying flashlights at a Lufkin business. Brandt was found in possession of a stolen firearm and had an outstanding warrant. Further investigation revealed Brandt drove to the location in a stolen vehicle which also happened to contain another 13 firearms, a large amount of ecstasy pills, methamphetamine, alprazolam, a large amount of cash, and ammunition and magazines. Brandt admitted to trading narcotics for the firearms. A search of Brandt’s residence resulted in the seizure of methamphetamine, digital scales, ecstasy, marijuana, firearms, and a stolen vehicle. Brandt has prior felony convictions for multiple felony thefts, multiple burglary of a habitation offenses, possession of a prohibited weapon, and multiple felony possession of a controlled substance offenses. As a convicted felon he is prohibited from owning or possessing firearms or ammunition.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Angelina County Sheriff’s Office; and the Lufkin Police Department. This case was prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Aldie man charged in multi-million dollar investment fraud schemeRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging an Aldie man with wire fraud and unlawful monetary transactions relating to his scheme to defraud dozens of investors in Virginia, Maryland, North Carolina, New Jersey, Missouri, and elsewhere, causing millions of dollars in losses.
According to court documents, Babu Ramaraj, 46, and his wife owned DAB Inspection and Consulting Services, LLC (DAB), a small home contractor with modest revenues doing patio and deck projects. Ramaraj allegedly stated that DAB had lucrative contracts with the Federal Aviation Administration, the Virginia Department of Transportation (VDOT), and others, and was a joint venture partner on a Washington DC Water Clean Rivers Project, for tens of millions of dollars each, supposedly to perform engineering inspection work on huge infrastructure projects. As alleged in the indictment, Ramaraj claimed he needed to make large upfront bond payments to secure the work but could not obtain bank financing because of the relative youth of DAB as a company and the speed with which DAB needed to secure the funding, which was supposedly not feasible with banks.
In support of his claims, Ramaraj allegedly supplied to victims falsified contract award letters, invoices, DAB financial records, and other documents to induce dozens of investors to loan DAB more than $20 million in aggregate. In reality, according to the indictment, Ramaraj forged the contract documents and the supposed bonds were never paid.
From January 2020 through May 2024, Ramaraj allegedly pitched individuals, including members of his Loudon County cricket league, the opportunity to loan DAB money at high interest rates, annualized at over 100% in some instances. Using money from later investors, Ramaraj allegedly paid initial investors the promised returns to entice them to continue investing and to recruit other friends and family to invest.
Instead of paying for the promised bonds, according to the indictment Ramaraj electronically transferred investor funds to his and his spouse’s online brokerage accounts to engage in securities trades, wired over $1 million to accounts in India in his spouse’s name, purchased several automobiles, obtained real properties, and made other payments to fund his lifestyle.
If convicted, Ramaraj faces up to 20 years in prison for each count of wire fraud and up to 10 years in prison for each count of unlawful monetary transactions.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; and Jehmal T. Hudson, Chair of the Virginia State Corporation Commission, made the announcement.
Ramaraj was arrested on a criminal complaint and ordered detained pending trial before Senior United States District Judge Claude M. Hilton.
Assistant U.S. Attorney Russell L. Carlberg is prosecuting the case.
Anyone who may have been a victim in this case or who may have information regarding this case is encouraged to contact the FBI’s Washington Field Office at (202) 278-2000 or the FBI’s tip line at 1-800-CALL-FBI (1-800-225-5324). Information may also be submitted online using FBI’s electronic tips form at https://tips.fbi.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-147.
Alaska Man Pleads Guilty to Threatening U.S. SenatorRead the Press Release
An Alaska man pleaded guilty yesterday to making interstate threats to kidnap and injure a sitting U.S. Senator.
According to court documents, Arther Graham, 46, of Kenai, sent a web form submission to a U.S. Senator on Sept. 28, 2023, threatening to injure the Senator. Congressional staff members reported the threat to the U.S. Capitol Police and an investigation was launched.
“Threats of violence against public servants are abhorrent and unacceptable, and as this plea makes clear, the Justice Department will not tolerate them,” said Attorney General Merrick B. Garland. “Our democracy depends on the ability of members of Congress to do their jobs without fearing for their safety. The Justice Department will continue to do everything in our power to protect those who serve the public and to hold accountable those who endanger them.”
Graham identified himself in the threat. Law enforcement later confirmed the sender was Graham and lived in Kenai. He was taken into custody by special agents from the U.S. Capitol Police and FBI at his home on Oct. 30, 2023.
He is scheduled to be sentenced on Oct. 1, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Attorney General Garland, U.S. Attorney S. Lane Tucker for the District of Alaska and Chief J. Thomas Manger of the U.S. Capitol Police made the announcement.
The U.S. Capitol Police and FBI Anchorage Field Office investigated the case, with assistance from the Kenai Police Department and the Alaska State Troopers.
Assistant U.S. Attorney Karen Vandergaw for the District of Alaska is prosecuting the case.
26 June 2024
Wheeling Man Admits to Selling CocaineRead the Press Release
WHEELING, WEST VIRGINIA – Chad Askew, 48, of Wheeling, West Virginia, has admitted to the distribution of cocaine.
According to court documents, Askew was selling cocaine in Wheeling in October 2023.
Askew faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Carly Nogay is prosecuting the case on behalf of the government.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Vancouver, Washington man charged federally for distributing fentanyl powderRead the Press Release
Seattle – A 26-year-old Vancouver, Washington man appeared in U.S. District Court in Seattle today, following his arrest on a criminal complaint for distributing fentanyl and methamphetamine, announced U.S. Attorney Tessa M. Gorman. Gregory Clark Bolton III, was arrested by the FBI and Clark County Sheriff’s Deputies yesterday, following the investigation of the overdose death of a 60-year-old Vancouver man. Bolton appeared at 2:00 on the first appearance calendar which was held in Seattle today.
According to the criminal complaint, Bolton was arrested back in June 2022 for distributing methamphetamine and fentanyl pills. He was charged in state court but absconded after being released on bail. The complaint today charges that drug trafficking activity under federal law.
In January 2024, Bolton again came on the radar of law enforcement after the overdose death of the Vancouver man. Following the death, law enforcement worked with the victim’s widow and other confidential informants to trace the source of the fentanyl powder that caused the death. Reviewing cell phone data and surveillance video at the scene of the drug sale they alleged that the powder was sold by Bolton. Bolton was arrested on January 24, 2024, and charged with possession of controlled substances with intent to deliver and possession of a firearm. He was again released on bail and informed that a condition of his release was to have no law violations.
In April 2024, a person working with law enforcement purchased 100 fentanyl pills from Bolton. The drug sale was being surveilled by law enforcement. The purchased pills tested positive for fentanyl on June 11, 2024. Bolton was charged federally by criminal complaint on June 18, 2024, and was arrested June 25, 2024.
Possession with intent to distribute controlled substances is punishable by up to 20 years in prison. The investigation is ongoing and additional charges may be merited.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Columbia River Organized Crime Task Force which includes the FBI and the Clark County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
Uzbekistan man extradited from Ukraine and arraigned on charges of stealing millions of dollars in cryptocurrencyRead the Press Release
Buffalo, N.Y.-U.S. Attorney Trini E. Ross announced that Nikita Andreevich Sklyuev a/k/a Valeriy Dorojkin, 37, of Uzbekistan, was extradited from Ukraine and arraigned today on an indictment charging him with wire fraud and fraudulent use of unauthorized access device. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment, in June 2018, Sklyuev submitted a computer software application, “EOSIO Wallet Explorer,” to Apple to be sold through the Apple App Store. The EOSIO Wallet Explorer purported to be a cryptocurrency wallet, but was in fact a malicious computer software application designed to steal the cryptocurrency user’s private key, thereby giving Sklyuev access to the user’s cryptocurrency funds. In September 2018, an individual in the Western District of New York (Victim) purchased the EOSIO Wallet Explorer application and then installed it on his iPhone. Once the Victim entered his private key following the installation, Sklyuev had unauthorized access to the Victim’s cryptocurrency wallet, which contained approximately 2,092,395.5356 EOS cryptocurrency, which at the time was valued at approximately $11.8 million dollars. On September 25, 2018, Sklyuev changed the private key to the Victim’s wallet, which resulted in the Victim losing all control and access to his wallet. In February 2019, Sklyuev transferred the EOS cryptocurrency from the Victim’s wallet to numerous other online wallets that were under his control.
Sklyuev was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 3, 2024. Today’s arraignment follows the successful June 20, 2024, extradition of Sklyuev from Ukraine. The Justice Department’s Office of International Affairs worked with Romanian and Ukrainian authorities to secure his arrest and extradition.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the U.S. Marshals Service, under the direction of Marshal Charles Salina.
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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Utah Woman Sentenced to 18 Months’ Imprisonment for Stealing an Amazon Truck and PackagesRead the Press Release
Salt Lake City, Utah – Jaclyn Allred, 38, of Salt Lake City, was sentenced Monday to 18 months’ imprisonment, three years’ supervised release, and ordered by the court to pay $5,735.19 in restitution. The sentence comes after Allred admitted to stealing an Amazon delivery truck loaded with parcels in 2021.
According to court documents and statements made at the change of plea hearing, Allred pleaded guilty in January 2024 to theft of interstate shipments.
On November 15, 2021, Allred, aka “Giggles,” stole an Amazon delivery truck loaded with packages in an apartment complex in Taylorsville, Utah. The estimated value of the packages for delivery exceeded $1,000. Allred admitted that while the Amazon driver was delivering a package to an apartment, she unlawfully entered the van and drove off. At a church parking lot, Allred removed the packages and distributed them to others, therefore depriving the rightful owners of their parcels.
Allred is one of five defendants charged in 2022. Akanesi Tongia was sentenced to three years of supervised release in August 2023. Sentencing for Teofilo Franki Quintana is scheduled for August 2024. Catrina Cascarejo is scheduled for trial in December 2024 at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. Charges against Anetone Simanu were dismissed after the defendant died in September 2023. Simanu was not in custody at the time of death.
The case was investigated jointly by the United States Postal Inspection Service (USPIS), and the Taylorsville Police Department.
An Assistant United States Attorney from the U.S. Attorney’s Office for the District of Utah 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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Utah Man Convicted of Impersonating a Federal Officer and Wire FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 25, 2024, Juan Carlos Martinez-Napoles (age: 38) of Utah, was sentenced to 15 months in federal prison for impersonating a federal officer and wire fraud. He was also ordered to pay restitution to the victims of his crime and to serve two years on supervised release following his prison sentence.
According to court documents, between approximately September 2018 and December 2019, Martinez-Napoles posed as an immigration agent from the United States Citizenship and Immigration Services (USCIS) and falsely represented to numerous victims that he could assist them in achieving legal status in the United States for a fee. During the course of his scheme, Martinez-Napoles induced three Wisconsin families to pay him approximately $45,000 in exchange for his “services.” He also threatened to have members of one family deported if they did not pay him significant fees.
At the sentencing hearing, United States District Court Chief Judge Pamela Pepper discussed the serious nature of the crime and the need to deter the defendant and others from engaging in this type of fraud.
“Fraudulently posing as a USCIS agent, Mr. Martinez-Napoles took advantage of vulnerable individuals, whom he convinced to pay a total of over $45,000 for his ‘help,’” said U.S. Attorney Haanstad. “In reality, he was simply lying to these individuals to line his own pockets. And when a victim questioned his activities, Mr. Martinez-Napoles even threatened to have the victim’s family deported. I commend the hard work of everyone who helped bring Mr. Martinez-Napoles to justice and commend the victims for their willingness to cooperate with the legitimate federal authorities in this matter.”
“Posing as a government official as Martinez-Napoles did for the purposes of exploiting and victimizing other individuals is intolerable,” said Special Agent in Charge Sean Fitzgerald of HSI Chicago. “HSI will continue to work with our law enforcement partners to hold such offenders accountable for their crimes.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Milwaukee Police Department. It was prosecuted by Assistant United States Attorney Christopher Ladwig.
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U.S. Attorney Announces Settlement of Civil Fraud Lawsuit Against VNS Health and Related Entities for Billing for Services They Failed to Provide or DocumentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has settled a civil fraud lawsuit against VISITING NURSE SERVICE OF NEW YORK d/b/a VNS HEALTH, VISITING NURSE SERVICE OF NEW YORK HOME CARE II d/b/a VISITING NURSE SERVICE OF NEW YORK HOME CARE, and VNS HEALTH BEHAVIORAL HEALTH, INC. (collectively, “VNS”).
VNS, which operates one of the largest non-profit home and community-based health care organizations in the U.S., is licensed by the New York State Office of Mental Health (“OMH”) to serve as an Assertive Community Treatment (“ACT”) Program provider. The settlement resolves claims that VNS violated the False Claims Act by fraudulently billing Medicaid for services that it either failed to provide or failed to document to persons with serious mental illness at the ACT Program VNS operated in Far Rockaway, Queens (the “VNS Far Rockaway ACT Program”). Specifically, the settlement resolves claims that from January 1, 2014, through December 31, 2018, VNS submitted or caused to be submitted false claims to Medicaid for monthly payments for 103 patients at the VNS Far Rockaway ACT Program who did not receive the full array of services that VNS was required to provide under the ACT Program or for whom VNS did not adequately or timely document provision of such services in accordance with applicable regulations or the ACT guidelines.
Under the settlement approved June 25, 2024, by U.S. District Judge Paul A. Engelmayer, VNS will pay the U.S. $381,766.59 and has admitted and accepted responsibility for conduct alleged in the U.S. Complaint. VNS has also agreed to pay the State of New York $572,649.89 to resolve state law claims for a total combined recovery of $954,416.48.
U.S. Attorney Damian Williams said: “The patients with serious mental illness who were receiving services from VNS’s Far Rockaway location deserved better. These individuals needed, and Medicaid agreed to pay for, a full suite of monthly support services so that they could better manage their disabilities. This Office will hold health care providers accountable when they fail to provide the necessary services that the federal and state governments are paying for.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “As an Assertive Community Treatment Program in the State of New York, the defendants obtained funds from the Medicaid program to which they were not entitled because they did not record or provide appropriate services to a vulnerable patient population. Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
As alleged in the Complaint filed in Manhattan federal court:
VNS, as an ACT Program provider, receives monthly payments from Medicaid for each patient enrolled in its ACT Program. In order to receive these payments, VNS must comply with certain regulations and guidelines promulgated by OMH, as well as their own contractual agreements with OMH.
However, in violation of these regulations, guidelines, and contractual agreements, VNS repeatedly failed to provide or document essential services to 103 patients at the VNS Far Rockaway ACT Program. Specifically, VNS repeatedly failed to complete intake forms and/or conduct initial assessments, failed to complete immediate needs assessments, failed to complete service plans, failed to provide and/or record monthly psychiatric visits, and failed to record progress notes.
As part of the settlement, VNS admitted and accepted responsibility for certain conduct alleged by the U.S. in its Complaint, including the following:
▪ Intake Forms and Initial Assessments: Intake forms and initial assessments record necessary background information about the patient, inform subsequent treatment, and set a baseline for improvement while the patient is in the program. In multiple instances and contrary to the ACT guidelines, VNS failed to complete intake forms and/or initial assessments for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete intake forms and/or initial assessments in a timely manner, or failed to provide the necessary supervisory review and approval of intake forms and/or initial assessments.
▪ Immediate Needs Assessments: Immediate needs assessments are used to determine patient needs as to safety/dangerousness, food, clothing, shelter, and medical needs. In multiple instances and contrary to the ACT guidelines, VNS failed to complete immediate needs assessments for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete immediate needs assessments in a timely manner, or failed to provide the necessary supervisory review and approval of immediate needs assessments.
▪ Comprehensive Assessments: Comprehensive assessments provide a necessary baseline to provide services and are updated to reflect the patient’s changing needs over time. In multiple instances and contrary to the ACT guidelines, VNS failed to complete comprehensive assessments for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete comprehensive assessments in a timely manner, or failed to provide the necessary supervisory review and approval of comprehensive assessments.
▪ Service Plan: Service plans set forth specific objectives and planned services necessary to facilitate achievement of the patient’s recovery goals. In multiple instances and contrary to the ACT guidelines, VNS failed to complete service plans for patients enrolled in the VNS Far Rockaway ACT Program, failed to complete service plans in a timely manner, or failed to provide the necessary supervisory review and approval of service plans.
▪ Psychiatric Visits: In multiple instances and contrary to the ACT guidelines, VNS failed to document psychiatric visits for patients enrolled in the VNS Far Rockaway ACT Program.
▪ Progress Notes: Progress notes document service contacts and attempted contacts, progress or lack of progress toward goals, and significant events. In multiple instances and contrary to the ACT guidelines, VNS failed to record progress notes for patients enrolled in the VNS Far Rockaway ACT Program until several days or even weeks after the contact with the patient. In addition, VNS sought and received payment at the full monthly level even though, based on the progress notes, they were entitled only to partial payment based on the number of documented contacts with the patient.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
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Mr. Williams thanked HHS-OIG and the New York Medicaid Fraud Control Unit for their assistance with this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney David J. Kennedy is in charge of the case.
U.K. National Sentenced for Fraudulent Wine and Whiskey Scam that Targeted Older AmericansRead the Press Release
Casey Alexander, 27, of London, England, was sentenced to three years of probation by U.S. District Judge Solomon Oliver, after pleading guilty to conspiracy to commit wire fraud.
Alexander was ordered to pay $202,195.58 in restitution for his role in the scam to the victim investors.
According to court documents, Alexander and others involved, engaged in a cold-calling scheme to target elderly investors throughout the United States. They used aggressive and deceptive tactics and promised large returns if the victims participated in wine and whiskey investments. They told victims that they could buy a portfolio of fine wines and whiskeys on their behalf, and then hold the purchase in a bonded warehouse located in Europe until sold for a profit.
Alexander and his team were able to convince the victims across the country to wire funds or make checks out to one or more suspect companies to participate in the investment opportunities. After the initial investments were made, victims were encouraged, and eventually convinced, to continue investing in order to secure larger returns.
In 2020, a victim’s son notified the Highland Heights Police Department (HHPD) to report the scam which defrauded the victim out of more than $300,000 over an 18-month period. HHPD then discovered similar complaints from others throughout the United States who reported being victims of a “wine scam” after being asked to purchase wine as an investment.
This case was investigated by the FBI. To date, investigators have identified over 150 victims within the United States who collectively invested more than $13 million in the wine and whiskey fraud scheme.
This case was prosecuted by Assistant United States Attorney Brian McDonough for the Northern District of Ohio.
The investigation and prosecution of this case is in response to the Elder Justice Initiative Program originating from the Elder Abuse Prevention and Prosecution Act of 2017 (EAPPA). The mission of the EAPPA and Elder Justice Initiative is to support and coordinate the Department of Justice’s enforcement efforts to combat elder abuse, neglect, financial fraud, and scams that target the nation’s elderly population.
If you observe something that you believe might be fraudulent conduct involving an older adult, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov to report it.
Related Links:
U.S. Attorney's Office Recognizes Elder Abuse Awareness Month
Public Service Announcement from U.S. Attorney Lutzko
Stay Aware of the Latest Scams
Two Virginia men plead guilty to trafficking in fake IDsRead the Press Release
ALEXANDRIA, Va. – Two men pled guilty today to importing, manufacturing, and trafficking fraudulent identity documents.
According to court documents, Arya Ebrahimi, 28, of Gainesville, and Tarik Sayed Metwally, 31, of Fairfax, imported high-quality counterfeit driver licenses and identification cards from China to the United States. Ebrahimi and Metwally operated an online enterprise using various websites, including apexsfakes.com and fakeyourdrank.com, to sell counterfeit IDs.
Ebrahimi opened bank accounts in the name of Top Notch IT Services, Inc., and Apex Tech Services, Inc., through which customers deposited payments through such payment platforms as Zelle. To receive shipments of fake IDs from China, they used fraudulent IDs and fake names. Ebrahimi rented a box in Manassas under the name Brian Padilla using a fake Illinois driver license and a box in Gainesville under the name Jordan Kalan using a fake North Carolina driver license. Metwally rented a box in Fairfax under the name Omar Mustafa using a fake Illinois driver license and a box in Vienna under the name Ahmed Mohammed using another fake Illinois driver license.
The fraudulent identification documents were sold to individuals across the United States. In addition to individuals who wanted to appear 21-years-old or older, some customers were foreign nationals, others had criminal histories for fraud and firearms convictions, and one individual who used a fake ID to operate a scheme to sell stolen vehicles. Ebrahimi and Metwally made or procured thousands of fake identification documents. Their criminal enterprise continued until at least July 2020. On Aug. 8, 2022, Ebrahimi knowingly engaged in a financial transaction of criminally derived property in the transfer of $29,736.83.
Ebrahimi is scheduled to be sentenced on Sept. 18 and faces up to 15 years in prison for trafficking in false identification documents and 10 years in prison for engaging in monetary transactions in property derived from specified unlawful activity. Metwally is scheduled to be sentenced on Sept. 4 and faces up to 15 years in prison for trafficking in false identification documents. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea.
Assistant U.S. Attorney Alessandra Serano and Special Assistant U.S. Attorney Joseph D. G. Castro are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-53.
Two Strafford Women Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Two Strafford, Mo., women were indicted by a federal grand jury today for sexually abusing two children to produce child pornography.
Mallory Nicole Bunch, 40, and Jessica Nicole Pickett, 34, were charged in a five-count indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Pickett on June 11, 2024.
Today’s indictment alleges that Mallory Bunch and Pickett participated in a conspiracy with Thomas Bunch (now deceased, formerly Mallory Bunch’s husband with whom they were involved in a polyamorous relationship) to sexually abuse two minor victims to produce child pornography from Sept. 2, 2016, to May 23, 2024.
According to an affidavit filed in support of the original criminal complaint, Mallory Bunch used her cell phone to record the sexual abuse of a child, identified as Minor Victim 1, at the request of Thomas Bunch. She allegedly sent videos of the sexual abuse to Thomas Bunch through text messages. In addition to the conspiracy, today’s indictment charges Mallory Bunch with one count of using Minor Victim 1 to produce child pornography and one count of distributing child pornography.
Pickett is also charged with one count of using a child victim, identified as Minor Victim 2, to produce child pornography and one count of transferring obscene matter to Minor Victim 1. According to the affidavit, Pickett shared with Minor Victim 1 an iCloud link that contained 376 images and two videos of the sexual activity of Mallory and Thomas Bunch and Pickett.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Greene County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Webster County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Romanian Men Sentenced to Federal Prison for Stealing Bank Card NumbersRead the Press Release
PENSACOLA, FLORIDA – Ion Halmac, 35, and Marian Vasilache, 45, both of Romania, were sentenced to 18 months in federal prison, after previously pleading guilty to conspiracy to steal bank card numbers, possession of bank card skimming equipment, and possession of bank card numbers. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“These cases demonstrate the success of cooperative investigations by federal and local agencies working to identify and arrest those attempting to profit from fraud and theft,’” said U.S. Attorney Coody. “The protection of our citizens’ financial information is paramount, and with the help of our law enforcement partners, we will hold criminals accountable, no matter their national origin.”
On April 17, 2023, the Florida Highway Patrol stopped Halmac and Vasilache for speeding as they were traveling on I-10. Both individuals provided false identification, and once properly identified, investigators learned that they were both in the country illegally. A search of their vehicle revealed card skimming equipment, blank cards, and a laptop computer with over 3,000 bank card numbers. Investigators later searched a storage facility in New Orleans belonging to the defendants and found additional skimming equipment.
“Crimes that threaten the identities, financial security, and future of American citizens will not be tolerated,” said Homeland Security Investigations (HSI) Tallahassee Nicholas Ingegno. “Alongside our state and local partners, HSI will investigate criminals who steal the identities of U.S. citizens and lurk in the shadows of the internet to pick the digital pockets of unsuspecting victims.”
Each defendant was ordered to serve a term of 1-year supervised release following their prison sentence, which will likely be negated due to their immediate deportation proceedings.
This case resulted from a joint investigation by the Florida Highway Patrol, the Florida Department of Law Enforcement, and Homeland Security Investigations. Assistant United States Attorney Walter Narramore prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Chimayo Women Charged with Theft in Indian CountyRead the Press Release
ALBUQUERQUE – Two Chimayo women were charged by indictment with stealing property from a gas station on Tesuque Pueblo.
Angelica Dominguez, 39, appeared before a federal judge today and will remain on conditions of release pending trial, which has been scheduled for August 12, 2024.
Billie Jo Gussler, 43, appeared before a federal judge today and will remain on conditions of release pending trial, which has been scheduled for August 12, 2024.
According to the indictment, on May 22, 2022, Dominguez and Gussler stole property that had a value exceeding $1,000 from the Camel Rock Valero, a business owned and operated by Tesuque Pueblo.
If convicted of the current charges, Dominguez and Gussler faces up to five years in prison followed by three years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Tesuque Tribal Police and Quay County Sheriff’s Office. Assistant United States Attorney Meg Tomlinson is prosecuting the case.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Twin Cities Felon Sentenced to 55 Months in Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Twin Cities man has been sentenced to 55 months in prison and three years of supervised release for illegally possessing a firearm, announced United States Attorney Andrew M. Luger.
According to his plea agreement and court documents, on October 7, 2022, a Minnesota State Patrol officer stopped Salvador Anthony Pacheco, 46, for multiple traffic violations. During the interaction, the officer smelled marijuana in the car and requested a drug-sniffing dog, which alerted officers to additional drugs in Pacheco’s vehicle. A search of the car and its contents revealed a Kahr .45 caliber semi-automatic pistol inside the defendant’s backpack. Because Pacheco has prior felony convictions, including murder, assault, and weapons violations, he is prohibited under federal law from possessing firearms or ammunition at any time.
Pacheco was sentenced today in U.S. District Court by Judge Nancy E. Brasel. The sentence reflects an upward variance from the advisory sentencing guideline range Pacheco pleaded guilty on April 15, 2024, to one count of possession of a firearm as a felon.
This case is the result of an investigation conducted by the FBI, the Minnesota Bureau of Criminal Apprehension, and the Minnesota State Patrol.
Assistant U.S. Attorney Campbell Warner prosecuted the case.
Three Treasure Coast Men Pled Guilty to Committing Robberies of U.S. Postal Service Letter CarriersRead the Press Release
MIAMI – Three Treasure Coast residents recently pled guilty in federal court for their respective involvement in a string of robberies of U.S. Postal Service (USPS) letter carriers for their Postal keys.
On June 12, Jamal Travon Brown Weathers, 23, of Fort Pierce, Fla., pled guilty to conspiracy to commit Hobbs Act robbery, armed Postal/U.S. property robbery, and brandishing a firearm during and in furtherance of a crime of violence.
On June 14, Jalen Dennis Elliott, 19, of Port St. Lucie, Fla., pled guilty to conspiracy to commit Hobbs Act robbery and Hobbs Act robbery.
On June 18, Bernard Jerome Davis III, 20, of Port St. Lucie, pled guilty to two counts of conspiracy to commit Hobbs Act robbery, two counts of armed Postal/U.S. property robbery, and single counts of brandishing a firearm during and in furtherance of a crime of violence, attempted Hobbs Act robbery, and Hobbs Act robbery.
According to the court record, to include factual proffers in support of the defendants’ guilty pleas, between Nov. 19, 2022, and Oct. 21, 2023, Brown Weathers, Davis and Elliott robbed at least six USPS letter carriers in St. Lucie, Brevard, Orange and Miami-Dade counties in Florida.
On Nov. 19, 2022, a USPS letter carrier was delivering mail inside an apartment complex in Port St. Lucie. While the carrier was at the mailboxes, Brown Weathers demanded “Give me the key.” Brown Weathers then grabbed and started yanking the letter carrier’s keys, which were attached to her uniform pants. Brown Weathers then brandished a semi-automatic handgun and demanded “Give me the f------ key, you got five seconds to give up the key.” At that point the letter carrier unhooked her arrow key and handed it over to Brown Weathers, who fled in a vehicle driven by Davis.
A Postal arrow key is an accountable property assigned to U.S. Post Office(s) that is only authorized to be used by USPS employees in an official capacity. A Postal arrow key is used by USPS employees to open mail receptacles within a geographic area to collect and deliver mail.
On May 12, 2023, Brown Weathers and Davis robbed two USPS letter carriers at gunpoint in the Middle District of Florida. At approximately 12:13 p.m., a USPS letter carrier was delivering mail in Melbourne, Fla., when Davis approached the letter carrier with a black firearm and demanded the letter carrier’s Postal arrow key. Once the letter carrier handed over the key, Davis fled the scene in a Nissan Altima that he rented. At approximately 1:20 p.m., another USPS letter carrier was on his mail delivery route in Orlando, Fla., when a Nissan Altima stopped behind his Postal vehicle. Brown Weathers exited the Nissan Altima, ran towards the letter carrier while holding a black firearm, grabbed the letter carrier by the shirt, and demanded the letter carrier give him the arrow key. The letter carrier removed the arrow key from his belt loop and gave it Brown Weathers, who fled in the vehicle rented and driven by Davis.
On Aug. 1, 2023, a USPS letter carrier was delivering mail in Fort Pierce when a white Pontiac Grand Prix began to follow her and pulled up behind her USPS vehicle. The letter carrier observed Davis carrying a black semi-automatic firearm and walking towards the Postal vehicle. Fearing a robbery, the letter carrier quickly drove away and called 911. The same white vehicle followed another letter carrier, who also called 911.
On Oct. 11, 2023, a USPS letter carrier was delivering mail in Fort Pierce when Davis approached the driver’s side of the Postal vehicle brandishing a black semi-automatic handgun and demanded that the letter carrier give him the key. Once the letter carrier handed the Postal arrow key to Davis, he entered a white vehicle and drove away.
On Oct. 21, 2023, a USPS letter carrier was delivering mail in an apartment community in Miami Beach, Fla. when she was confronted by Davis who shouted, “give me the keys.” Davis ripped the keys, including a Postal arrow key, from the letter carrier's hand and caused an injury. Davis then fled to a waiting black BMW SUV, driven by Elliott.
A sentencing hearing will be scheduled before U.S. District Judge K. Michael Moore. Brown Weathers and Davis face up to life in prison. Elliot faces up to 40 years in prison. The federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, Chief Diane Hobley-Burney of the Fort Pierce Police Department, Chief Wayne A. Jones of the Miami Beach Police Department, Sheriff John W. Mina of the Orange County Sheriff’s Office, Sheriff Wayne Ivey of the Brevard County Sheriff’s Office, Sheriff Keith Pearson of the St. Lucie County Sheriff’s Office, and Chief Richard Del Toro Jr. of the Port St. Lucie Police Department made the announcement.
USPIS, the Fort Pierce Police Department, Miami Beach Police Department, Orange County Sheriff’s Office, Brevard County Sheriff’s Office, St. Lucie County Sheriff’s Office and Port St. Lucie Police Department investigated the case. Managing Assistant U.S. Attorney Carmen M. Lineberger is prosecuting it.
Announced in May 2023, Project Safe Delivery is a USPS initiative to combat the recent rise in threats and attacks on letter carriers and mail theft incidents by protecting Postal employees and the security of the nation’s mail and packages. Multiple departments within USPS, including the Inspection Service, the Office of the Chief Information Officer, and the Office of the Chief Retail and Delivery Officer are working together to support the ongoing campaign. To help strengthen this effort, the Inspection Service has also significantly increased monetary rewards for information leading to the arrest or conviction of a perpetrator of postal crimes.
Customers are encouraged to report stolen mail as soon as possible by submitting an online complaint to the Postal Inspection Service at www.uspis.gov/report or calling 877-876-2455. The Postal Inspection Service is authorized to issue monetary rewards for the forcible assault, robbery or attempted robbery of any custodian of any mail, money, or other property of the United States under the control and jurisdiction of the Postal Service. Additionally, individuals are encouraged to report allegations of Postal Service employee misconduct, including attempts to corrupt a Postal Service employee, to the USPS OIG at 1-888-877-7644 or www.uspsoig.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-14053.
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Three Plead Guilty in Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – James Tyrell Daniels, aka “Red” and “Ghost,” 40, of Fresno, California, Consanga Harris, aka “Sondy,” 63, of Troy, New York, and Earnest Flood, aka “Pop,” 66, of Richmond, Virginia, pled guilty yesterday to offenses related to their involvement in nationwide marijuana trafficking and money laundering conspiracies.
United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In pleading guilty, Daniels, Harris, and Flood all admitted to being members of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region of New York.
In pleading guilty, Daniels admitted to working with, among others, Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” to cultivate marijuana in two grow houses behind his home and in a commercial warehouse in Fresno. The marijuana grow in the warehouse was financed in substantial part by Singletary, and on June 15, 2022, law enforcement executed a search warrant at the warehouse and seized, among other things, 424 marijuana plants at various stages of maturity in five commercial-grow rooms. Video footage from a DVR for a surveillance system seized from the warehouse depicted, among other things, Daniels tending to the marijuana plants and bringing supplies into the warehouse with Singletary. In addition to growing marijuana, Daniels purchased and resold large quantities of marijuana and sold THC “edibles.”
Daniels and other members of the organization shipped the marijuana and THC edibles through UPS and FedEx from a shipping store, Fast Pack & Ship, in Fresno. Sammy Olague owned and operated Fast Pack & Ship from 2016 through June 2018, when he sold the business to Nehemiah Fane, aka “Neil.” In April 2020, Fane transferred ownership of Fast Pack & Ship to McKenzie Merrialice Coles, aka “Kenzie,” who operated Fast Pack & Ship through M.M.M.C. Management, Inc. Daniels managed Fast Pack & Ship when it was owned by Fane and ran the day-to-day operations of the business with Fane.
The packages of marijuana, which reflected the names of fake shippers, were shipped from Fast Pack & Ship to locations throughout the United States, including the Capital Region, New York City, and other parts of New York, New Jersey, Connecticut, Massachusetts, Maryland, Ohio, Delaware, Nevada, Virginia, Alabama, Georgia, Louisiana, Florida, North Carolina, South Carolina, Tennessee, Missouri, Oklahoma, and Texas. The marijuana in the packages was contained in dog food containers and luggage, and the packages were often sealed with eBay packing tape in an effort to avoid detection by law enforcement. Between April 2017 and June 2022, approximately 1,292 packages containing approximately 7,068 kilograms, or 15,582 pounds, of marijuana were shipped from Fast Pack & Ship to the Capital Region alone.
Daniels admitted to working with Fane and others to launder marijuana proceeds for Singletary and other members of the organization, including through bank accounts maintained by Fane in the name of Fast Pack & Ship and Fast Pack & Ship, LLC, which Fane organized in 2019. Daniels also laundered marijuana proceeds through bank accounts he owned and controlled, including business accounts held by his company BRDL, LLC, and by receiving money transfers in Fresno purchased with cash marijuana proceeds.
Harris admitted to receiving packages of marijuana shipped by Singletary and Coles from Fast Pack & Ship at her home in Troy. Harris was notified of the packages of marijuana by Coles and Isiah Ti-Quan Clements, aka “Zay,” and was paid between $300 and $400 in cash per package of marijuana received. Between March 2018 and May 2022, Harris received 90 packages containing approximately 700 kilograms, or 1,543 pounds, of marijuana.
Flood admitted to receiving packages of marijuana shipped by Singletary and Coles from Fast Pack & Ship at his home in Richmond and to selling the marijuana. Flood coordinated the shipments of marijuana with Onisha Smith, who in turn coordinated with Singletary. After selling the marijuana, Flood deposited cash marijuana proceeds into his bank account and transferred the funds to Smith, who in turn transferred payment for the marijuana to Singletary through Zelle and Cash App.
Daniels, who has a prior serious violent felony conviction, faces at least 15 years and up to life in prison, a term of post-release supervision of at least ten years and up to life, and a fine of up to $20 million for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances. He also faces up to 20 years in prison and a fine of up to $500,000 for conspiring to commit money laundering.
If United States District Judge Glenn T. Suddaby accepts the parties’ agreed-upon disposition at sentencing, Daniels will be sentenced to 180 months in prison to be followed by ten years of supervised release.
Harris faces up to 20 years in prison, a term of supervised release of between three years and life, and a fine of up to $1 million for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances.
Flood faces up to up to 20 years in prison and a fine of up to $500,000 for conspiring to commit money laundering and up to five years in prison and a fine of up to $250,000 for conspiring to manufacture, distribute, and possess with intent to distribute controlled substances. He also faces a term of supervised release of between two years and life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Daniels, Harris, and Flood were charged in an indictment with Singletary, Coles, Fane, Olague, Smith, and 16 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Singletary, Coles, and Fane have pled not guilty and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Daniels, Harris, and Flood, Olague, Smith, and seven other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, Kristle Walker, Ruby Ledesma, and Jazell Shuler, previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Three Pennsylvania Men Charged with Corporate Fraud OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Poth, age 68, of Drums, Pennsylvania; James Mahon IV, age 64, of Shavertown, Pennsylvania; and Joel Gillick, age 56, of Scranton, Pennsylvania, were charged with various fraud offenses in connection with their former employments at Tammac Holdings Corp. A federal grand jury returned an indictment charging Mahon and Gillick with conspiring to commit bank, wire, and mail fraud, and with several counts of bank fraud and wire fraud. Poth was charged in an information with conspiring to commit bank and wire fraud.
According to United States Attorney Gerard M. Karam, the charges allege that Poth was the President, Mahon the Vice President, and Gillick an attorney and Compliance Officer of Tammac, a Luzerne County business. Between 2008 and September 2021, the conspirators suppressed delinquency rates and repossession losses in loan portfolios that were sold and serviced by Tammac to various financial institutions and investors. The scheme was accomplished by making fake payments on the loans, using Tammac’s own money. The conspirators allegedly took these steps to avoid triggering recourse obligations under the servicing agreement contracts that would yield significant financial penalties for Tammac. During the course of the scheme, the conspirators hid the fake payments in Tammac’s accounting records, and concealed the practice from investors and auditors.
The charges also allege that between 2017 and 2021, the conspirators provided false financial information to an investment firm during a due diligence process, and continued to conceal the fake payment practice. As a result, the investment firm purchased Tammac, and subsequently purchased loan portfolios from Tammac. Following the acquisition, the conspirators continued to provide false financial information to the investment firm.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Carlo D. Marchioli are prosecuting the case.
The maximum penalty under federal law for the most serious offenses are 30 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Three Admit to Roles in Philadelphia Drug Trafficking OrganizationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three West Virginia residents have admitted to their roles in an organization that was supplying large amounts of methamphetamine, fentanyl, and cocaine to North Central West Virginia.
Jordan Spadafore, 33, of Morgantown; Stephanie Miller, 47, of Charleston; and Olivia Gibson, 21, of Ona, pled guilty this week to federal drug charges. According to court documents, the three were working with Rodney Johnson, age 46, of Philadelphia, who was allegedly supplying significant quantities of illicit drugs to Monongalia County.
Assistant U.S. Attorney Zelda Wesley is prosecuting the cases on behalf of the government.
This case was investigated by the Mon Metro Drug Task Force, a HIDTA-funded initiative. The task force consists of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the West Virginia State Police; the Monongalia County Sheriff’s Office; the Monongalia County Prosecuting Attorney’s Office; the Morgantown Police Department; the WVU Police Department; the Granville Police Department; and the Star City Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Michael John Aloi presided.
Texas Man Who Allegedly Imported Switches Charged with Gun CrimeRead the Press Release
A Rockwall man who allegedly imported Glock switches from China has been charged with a firearm crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Joshua Javier Menjivar, 20, was charged via criminal complaint on Friday with unlawful possession of an unregistered firearm. He made his initial appearance before U.S. Magistrate Judge Renée Harris Toliver on Wednesday.
“This defendant allegedly imported machinegun conversion devices from China and installed at least one of them in an untraceable ghost gun,” said Leigha Simonton, U.S. Attorney for the Northern District of Texas. “Whether manufactured abroad or printed here at home, switches are capable of firing a stunning amount of ammunition in seconds and are highly erratic – making them highly dangerous weapons. We cannot and will not allow these lethal devices to proliferate in north Texas.”
“As this arrest proves, we weren’t joking a few weeks ago when we told you that we were coming for you. The possession or importation of machine gun conversion devices will eventually lead to a visit by ATF or any of our law enforcement partners. I commend US Attorney Simonton and her team for their dedication to protecting the people of North Texas by aggressively prosecuting these cases. Further, I thank our partners at CBP who work tirelessly to keep Americans safe, a lot of times going unnoticed,” said ATF Dallas Special Agent in Charge Jeffrey Boshek.
According to the complaint, on May 16, Customs & Border Protection agents intercepted a suspicious package bound for Mr. Menjivar’s home. The parcel allegedly contained four machinegun conversion devices, also known as switches.
Further investigation showed that between May 2023 and May 2024, approximately 35 suspicious packages were allegedly delivered to Mr. Menjivar’s address. The shipments – at least one of which was allegedly sent by a known international firearms supplier – were manifested as various items, including household tools, protective gloves, glass cups, hats, and clothing, and were addressed to various fictitious individuals.
On June 10, ATF agents collected trash placed in a bin outside Mr. Menjivar’s home. Inside, they allegedly found a non-value gold metal commemorative bitcoin, an item often used to conceal switches by confusing x-ray machines and packaging consistent with illicit firearms shipments.
On June 20, agents executed a search warrant on Mr. Menjivar’s residence, where they allegedly found a privately made firearm, also known as a “ghost gun,” equipped with a switch, five additional switches, 72 rounds of assorted ammunition, two commemorative bitcoins, and various firearm accessories. In an interview, Mr. Menjivar allegedly asserted that anything illegal found in the residence, including the switches, belonged to him and affirmed that he knew how switches work.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, Homeland Security Investigations’ Dallas Field Office, the Dallas Police Department, the Rockwall County Sheriff’s Department, and U.S. Customs & Border Patrol conducted the investigation. Assistant U.S. Attorney Robert Withers is prosecuting the case.
The case is part of “Operation Texas Kill Switch,” a statewide initiative taking aim at machinegun conversion devices, which transform commercially available semi-automatic firearms into fully-automatic weapons capable of firing faster than military-grade machine guns. Spearheaded by U.S. Attorneys Leigha Simonton, Alamdar Hamdani, Damien Diggs and Jaime Esparza, Operation Texas Kill Switch relies on partnerships with state and local law enforcement as well as rewards offered by Crime Stoppers.
Texas Business Owner Sentenced for Evading Income TaxRead the Press Release
A Texas man was sentenced today to 37 months in prison, three years of supervised release and to pay $529,551 in restitution to the United States for evading taxes on income he earned from his business.
According to court documents, John L. Petrone owned and operated a business that sold an herbal extract known as “kratom,” along with other related products. Petrone did not file individual income tax returns for 2014 through 2019, nor did he pay income taxes for those years, despite earning hundreds of thousands of dollars from his business. During that time period, Petrone attempted to evade his income taxes by opting not to withhold federal taxes from his paychecks, operating the business under different names, dealing in cash, using business bank accounts to pay for personal expenses and lying to the IRS during an audit. In addition, Petrone did not pay his business’s employment taxes.
Through his actions, Petrone caused a tax loss to the IRS of over $529,000.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief David Zisserson and Trial Attorney Andres Chinchilla of the Tax Division prosecuted the case, with assistance and support from the U.S. Attorney’s Office for the Western District of Texas.
St. Louis Woman Sentenced to 24 Months in Prison for Aiding $291,000 Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a St. Louis woman to 24 months in prison for conspiring to defraud a COVID-19 pandemic relief program.
Jeannine Buford, 46, changed the name of an existing company to Couture Trading Inc. with the Montana Secretary of State’s Office in April of 2020. She listed herself as the company president and Porshia L. Thomas as the director, vice president, secretary and treasurer. On July 15, 2020, Thomas, with Buford’s help, completed and submitted a fraudulent PPP loan application for Couture Trading.
Buford and Thomas falsely claimed the company was an operating business located in California, had 15 employees and an average monthly payroll of $120,000. They claimed the loan would be used for salaries and business expenses and submitted fake company bank records.
The bank issued a $291,000 PPP loan on Sept. 8, 2020. Thomas then wired $10,000 to Buford and wrote her a $65,000 check. Buford spent the money on personal expenses, including food, clothes, the $14,000 deposit on a 2017 BMW X6, a $5,000 couch and other furniture and $1,855 to rent a luxury apartment in downtown St. Louis.
Photo from a sentencing memo.The bank, realizing that something was amiss, recovered $206,000 of the loan money.
“For too many Americans, the COVID-19 pandemic resulted in an unprecedented time of financial hardship, turmoil, and suffering. But for the defendant, it constituted a lucrative opportunity to line her pockets with relief payments earmarked for struggling Americans,” a sentencing memo filed by Assistant U.S. Attorney Derek J. Wiseman says. Buford’s crime was “motivated purely by greed,” the memo says.
Buford has been engaging in persistent fraud since 1999, including six felony fraud convictions for crimes including forging checks and selling counterfeit handbags, the memo says.
Buford pleaded guilty in February to wire fraud conspiracy. Thomas, now 33, pleaded guilty to a bank fraud charge. She has been sentenced to five years of probation. Both were ordered to repay the money.
The case was investigated by the U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney Derek J. Wiseman is prosecuting the case.
Southern California Man Sentenced for Mailing Meth to OmahaRead the Press Release
United States Attorney Susan Lehr announced that Jose De Jesus Hernandez Castellanos, 21, of Beaumont, California, was sentenced June 26, 2024, in Omaha, Nebraska for distribution of 500 grams or more of methamphetamine. United States District Court Judge Brian C. Buescher sentenced Hernandez Castellanos to 100 months’ imprisonment. There is no parole in the federal system. After Hernandez Castellanos’s release from prison, he will begin a 5-year term of supervised release.
In July 2022, a DEA agent went undercover to investigate a group of people who were mailing meth to Omaha from southern California. On July 15, 2022, Hernandez Castellanos phoned the undercover agent, who ordered a pound of meth. The meth, which weighed approximately 850 grams (1.87 pounds), arrived in Omaha on July 27, 2022.
As part of a plea agreement, the prosecution dismissed a conspiracy charge against Hernandez Castellanos in exchange for his guilty plea to distribution. Co-defendant Anthony Torres, 31, is charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Torres is in custody in Los Angeles County awaiting trial on California state charges.
This case was investigated by the Drug Enforcement Administration. The Douglas County Sherriff’s Office assisted with forensic testing of the meth and fingerprint analysis.
Russian National Charged for Conspiring with Russian Military Intelligence to Destroy Ukrainian Government Computer Systems and DataRead the Press Release
Note: Concurrent with the return of the indictment, the U.S. Department of State’s Rewards for Justice program is offering a reward of up to $10 million for information on Stigal’s location or his malicious cyberactivity. Anyone possessing such information should contact Rewards for Justice here.
A federal grand jury in Maryland returned an indictment yesterday charging Amin Timovich Stigal (Амин Тимович Стигал), 22, a Russian citizen, with conspiracy to hack into and destroy computer systems and data. In advance of the full-scale Russian invasion of Ukraine, targets included Ukrainian Government systems and data with no military or defense-related roles. Later targets included computer systems in countries that were providing support to Ukraine, including the United States. Stigal remains at large.
“As alleged, the defendant conspired with Russian military intelligence on the eve of Russia’s unjust and unprovoked invasion of Ukraine to launch cyberattacks targeting the Ukrainian government and later targeting its allies, including the United States.” said Attorney General Merrick B. Garland. “The Justice Department will continue to stand with Ukraine on every front in its fight against Russia’s war of aggression, including by holding accountable those who support Russia’s malicious cyber activity.”
“The GRU has repeatedly applied in cyberspace Russia’s statecraft of indiscriminate destruction and intimidation,” said Assistant Attorney General Matthew G. Olsen. “The Department will do its part to prevent and disrupt such malicious behavior that relies upon online services or infrastructure in the U.S., or that targets U.S. victims. We will also identify, pursue, and eventually hold to account those responsible for Russia’s malicious actions, including the cybercriminals that the Russian government cultivates in furtherance of its malign agenda.”
“Amin Timovich Stigal attempted to leverage malware to aid the Russian military in the invasion of Ukraine,” said FBI Deputy Director Paul Abbate. “Today’s indictment demonstrates the FBI’s unwavering commitment to combat malicious cyber activities by our adversaries, and we will continue to work with our international partners to thwart attempts to undermine and harm our allies.”
“Malicious cyber actors who attack our allies should know that we will pursue them to the full extent of the law,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Cyber intrusion schemes such as the one alleged threaten our national security, and we will use all the technologies and investigative measures at our disposal to disrupt and track down these cybercriminals.”
“The indictment of Amin Stigal is yet another example of the FBI’s commitment to combating cyber threats both at home and internationally,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “To those adversaries who seek to compromise our international partners’ systems, know you will be identified and you will face consequences for your actions. The FBI vows to continually pursue justice and disrupt malicious cyber actors.”
According to court documents, in Jan. 2022, Stigal and members of the Main Intelligence Directorate of the General Staff (GRU) of the Russian Federation (the Conspirators) conspired to use a U.S.-based company’s services to distribute malware known in the cybersecurity community as “WhisperGate” to dozens of Ukrainian government entities’ computer systems and destroy those systems and related data in advance of the Russian invasion of Ukraine. The United States government previously joined with allies and partners in May 2022 to attribute this cyber-attack to the Russian military and to condemn the attack and similar destructive cyber activities against Ukraine.
On Jan. 13, 2022, the Conspirators attacked multiple Ukrainian government networks, including the Ukrainian Ministry of International Affairs, the State Treasury, the Judiciary Administration, the State Portal for Digital Services, the Ministry of Education and Science, the Ministry of Agriculture, the State Service for Food Safety and Consumer Protection, the Ministry of Energy, the Accounting Chamber for Ukraine, the State Emergency Service, the State Forestry Agency, and the Motor Insurance Bureau. The Conspirators infected computers on these and other networks with malware called WhisperGate, which was designed to look like ransomware. However, as the indictment alleges, WhisperGate was actually a cyberweapon designed to completely destroy the target computer and related data.
In conjunction with these attacks, the Conspirators compromised several of the targeted Ukrainian computer systems, exfiltrated sensitive data, including patient health records, and defaced the websites to read: “Ukrainians! All information about you has become public, be afraid and expect the worst. This is for your past, present and future.” That same day, the Conspirators offered the hacked data for sale on the internet. The effort was aimed at sowing concern among the broader Ukrainian population regarding the safety of government systems and data.
In August 2022, the Conspirators also hacked the transportation infrastructure of a Central European country that was supporting Ukraine. The indictment further alleges that from Aug. 5, 2021, through Feb. 3, 2022, the Conspirators leveraged the same computer infrastructure they used in the Ukraine-related attacks to probe computers belonging to a federal government agency in Maryland in the same manner as they had initially probed the Ukrainian Government networks.
If convicted, Stigal faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Baltimore Field Office is investigating the case with the support of the FBI’s Milwaukee and Boston Field Offices.
Assistant U.S. Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris for the District of Maryland are prosecuting the case, with valuable assistance from the National Security Division’s National Security Cyber Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment
Russian National Charged for Conspiring with Russian Military Intelligence to Destroy Ukrainian Government Computer Systems and DataRead the Press Release
Greenbelt, Maryland – A federal grand jury in Maryland yesterday returned an indictment charging Amin Timovich Stigal [Амин Тимович Стигал], age 22, a Russian citizen, with conspiracy to hack into and destroy computer systems and data. In advance of the full-scale Russian invasion of Ukraine, targets included Ukrainian Government systems and data with no military or defense-related roles. Later targets included computer systems in countries that were providing support to Ukraine, including the United States. Stigal remains at large.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.
“Malicious cyber actors who attack our allies should know that we will pursue them to the full extent of the law” said U.S. Attorney Barron. “Cyber intrusion schemes such as the one alleged threaten our national security, and we will use all the technologies and investigative measures at our disposal to disrupt and track down these cybercriminals.”
“As alleged, the defendant conspired with Russian military intelligence on the eve of Russia’s unjust and unprovoked invasion of Ukraine to launch cyberattacks targeting the Ukrainian government and later targeting its allies, including the United States.” said Attorney General Merrick B. Garland. “The Justice Department will continue to stand with Ukraine on every front in its fight against Russia’s war of aggression, including by holding accountable those who support Russia’s malicious cyber activity.”
“The indictment of Amin Stigal is yet another example of the FBI’s commitment to combating cyber threats both at home and internationally,” said Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office. “To those adversaries who seek to compromise our international partners’ systems, know you will be identified and you will face consequences for your actions. The FBI vows to continually pursue justice and disrupt malicious cyber actors.”
The indictment alleges that in January 2022, Stigal and members of the Main Intelligence Directorate of the General Staff (“GRU”) of the Russian Federation (the “Conspirators”) conspired to use a U.S.-based company’s services to distribute malware known in the cybersecurity community as “WhisperGate” to dozens of Ukrainian government entities’ computer systems and destroy those systems and related data in advance of the Russian invasion of Ukraine. The United States government previously joined with allies and partners in May 2022 [https://www.state.gov/attribution-of-russias-malicious-cyber-activity-against-ukraine/] to attribute this cyber attack to the Russian military and to condemn the attack and similar destructive cyber activities against Ukraine.
As alleged in the indictment, on January 13, 2022, the Conspirators attacked multiple Ukrainian government networks, including the Ukrainian Ministry of International Affairs, the State Treasury, the Judiciary Administration, the State Portal for Digital Services, the Ministry of Education and Science, the Ministry of Agriculture, the State Service for Food Safety and Consumer Protection, the Ministry of Energy, the Accounting Chamber for Ukraine, the State Emergency Service, the State Forestry Agency, and the Motor Insurance Bureau. The Conspirators infected computers on these and other networks with malware called WhisperGate, which was designed to look like ransomware. However, as the indictment alleges, WhisperGate was actually a cyberweapon designed to completely destroy the target computer and related data.
In conjunction with these attacks, the Conspirators compromised several of the targeted Ukrainian computer systems, exfiltrated sensitive data, including patient health records, and defaced the websites to read: “Ukrainians! All information about you has become public, be afraid and expect the worst. This is for your past, present and future.” That same day, the Conspirators offered the hacked data for sale on the internet. The effort was aimed at sowing concern among the broader Ukrainian population regarding the safety of government systems and data.
In August 2022, the Conspirators also hacked the transportation infrastructure of a Central European country that was supporting Ukraine. The indictment further alleges that from August 5, 2021, through February 3, 2022, the Conspirators leveraged the same computer infrastructure they used in the Ukraine-related attacks to probe computers belonging to a federal government agency in Maryland in the same manner as they had initially probed the Ukrainian Government networks.
Concurrent with the return of the indictment, the U.S. Department of State’s Rewards for Justice program is offering a reward of up to $10 million for information on Stigal’s location or his malicious cyberactivity. Anyone possessing such information should contact Rewards for Justice here.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, Stigal faces a maximum sentence of 5 years in federal prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Barron and Assistant Attorney General Matthew G. Olsen commended the FBI’s Baltimore Field Office for its outstanding work and thanked the FBI’s Milwaukee and Boston Field Offices for their support in the case. Assistant U.S. Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris for the District of Maryland are prosecuting the case, with valuable assistance from the National Security Division’s National Security Cyber Section.
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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Repeat Drug Trafficker Sentenced to over 8 Years for Fentanyl DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jarrell Knight, 38, Hammond, Indiana, was sentenced on June 20, 2024 by U.S. District Judge William M. Conley to 8 ¼ years in federal prison for distributing 40 or more grams of fentanyl. Knight pleaded guilty to this charge on March 26, 2024. Knight committed the instant offense while under federal supervision for a previous drug trafficking conviction. Judge Conley revoked that supervision and imposed an additional 18-month sentence to run consecutive to the sentence on the new conviction.
On March 16, 2023, Knight met with an individual in Beloit to sell two ounces of fentanyl. Police monitoring the transaction observed and recorded Knight’s meeting with the individual and the substance obtained in the purchase tested positive for fentanyl. Knight was indicted by a federal grand jury in September 2023, and subsequently arrested in Hammond, Indiana.
At the sentencing, Judge Conley noted that Knight spent most of his adult life profiting from the suffering of others by exploiting their drug addictions. Judge Conley also considered it an aggravating factor that Knight sold drugs while under federal supervised release from his 2013 drug trafficking conviction.
The charge against Knight was the result of an investigation conducted by the Rock County Sheriff’s Office, Beloit Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Robert Anderson prosecuted this case.
Repeat Bank Robber Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Maurice Ray, 34, of Philadelphia, PA, was sentenced today by United States District Court Judge Juan R. Sánchez to 180 months’ imprisonment, three years of supervised release, a $200 special assessment, and restitution of $2,147 for committing two bank robberies in three days.
Ray used demand notes to commit bank robberies on December 14, 2021, at a Citizens Bank branch in Philadelphia, and December 16, 2021, at a Bank of America branch in Bensalem, PA. The Federal Bureau of Investigation, Philadelphia Police Department and Bensalem Police Department located and arrested Ray the next day in Philadelphia.
In January 2022, the defendant was indicted on two counts of bank robbery and on August 15, 2023, a federal jury convicted him of both.
“Maurice Ray is a career offender with a history of robbing banks and businesses,” said U.S. Attorney Romero. “Two stints in prison have not deterred him. This 15-year sentence will at least keep him off the street and prevent him from claiming any additional victims. My office and our partners are committed to investigating and prosecuting violent crimes and bringing the perpetrators to justice.”
The case was investigated by the Philadelphia Police Department, the Bensalem Police Department, and the FBI and prosecuted by Assistant United States Attorney Robert E. Eckert.
Registered Sex Offender Sentenced to Ten Years and One Day in Prison for Possessing Obscene Images of the Sexual Abuse of ChildrenRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Jack Lee Nimrick, 43, was sentenced on June 24, 2024, to a total of ten years and one day in federal prison for possession of obscene visual representations of the sexual abuse of children.
Nimrick was previously convicted of distribution of child pornography in 2015 and was sentenced to nine years’ imprisonment, to be followed by 15 years of supervised release. He was also required to register as a sex offender. While serving his term of supervised release, United States Probation Officers found Nimrick in possession of an unmonitored and unapproved cellphone capable of connecting to the internet. Further investigation and forensic investigation of the cellphone by Homeland Security agents revealed over 150 computer-generated images and over 50 computer-generated animated videos depicting the sexual abuse of children ranging in age from approximately four years old to teenagers.
Nimrick was arrested in October 2023 on supervised release revocation charges, and a federal grand jury returned an indictment charging him with possession of obscene images in November 2023. He entered a guilty plea to the possession of obscene images charge in March 2024. At the sentencing hearing this week, Nimrick also admitted that he had violated his conditions of supervised release by possessing the illegal images, failing to register his cellphone in accordance with the Sex Offender Registration Notification Act, and failing to comply with the U.S. Probation Office’s Computer and Internet Monitoring Program. Nimrick has remained in the custody of the U.S. Marshals since his arrest. He will serve a three-year term of supervised release upon completion of the term of imprisonment.
Based on Nimrick’s prior conviction for a sex offense, he faced an enhanced statutory penalty of ten to twenty years’ imprisonment, followed by up to a three-year term of supervised release.
The United States Department of Homeland Security investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the 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.
Readout of the Pardon Attorney’s Visit to FCI ColemanRead the Press Release
On June 25, Pardon Attorney Elizabeth Oyer and members of her team visited Federal Correctional Institution (FCI) Coleman, the largest Federal Complex in the Federal Bureau of Prisons (FBOP) located in Sumterville, Florida. The Pardon Attorney and her team provided a series of educational sessions about the federal clemency process and answered questions from FBOP staff and incarcerated individuals at the low-security, medium-security and minimum-security camp. During their visit, the Pardon Attorney and her team met with approximately 1,200 incarcerated individuals and FBOP staff members.
The visit to FCI Coleman was the eighth in a series of quarterly educational events that the Pardon Attorney is conducting for incarcerated individuals and staff at different FBOP locations.
After visiting FCI Coleman, the Pardon Attorney met with U.S. Attorney Rodger Handberg for the Middle District of Florida to discuss the clemency process.
These educational sessions within the FBOP, followed by stakeholder meetings, are part of the initiative by the Office of the Pardon Attorney to increase the accessibility and transparency of the clemency process through education and community engagement.
Rankin County Woman Sentenced to Prison for Possessing and Passing Counterfeit CurrencyRead the Press Release
Jackson, Miss. – A Rankin County woman was sentenced to 12 months and one day in federal prison, followed by two years of supervised release, for possessing and passing counterfeit currency.
Mary Glassmire Sessums, 43, was sentenced in U.S. District Court in Jackson.
According to court documents, an investigation by the Rankin County Sheriff’s Office, the Pelahatchie Police Department and the Brandon Police Department identified Mary Glassmire Sessums and Purvis Dustin Ward as individuals who had been passing counterfeit United States currency in Rankin County. On November 2, 2019, several residents of Rankin County reported that a man and a woman had been making purchases at garage sales using counterfeit currency. One of the local residents took a picture of the suspects’ car and provided a tag number and description to law enforcement. Officers from the Pelahatchie Police Department later stopped the vehicle. During the stop, officers observed what appeared to be counterfeit United States currency in plain view in the vehicle. Sessums and Ward were arrested for possession of counterfeit currency. Several victims later identified Sessums and Ward as the individuals who fraudulently passed counterfeit United States currency to make purchases.
Rankin County Deputies obtained a search warrant for Ward’s residence and located counterfeit currency, uncut sheets of counterfeit currency as well as two computers, three printers, specialty ink and paint, all of which was used to produce counterfeit currency.
Sessums pled guilty on March 13, 2024 to possessing and passing counterfeit currency.
Ward previously pled guilty to one count of making counterfeit currency and one count of possessing and passing counterfeit currency. He was sentenced to 30 months in prison followed by 3 years of supervised release.
U.S. Attorney Todd W. Gee and Resident Agent in Charge Kyle Smith of the United States Secret Service made the announcement.
The case was investigated by the United States Secret Service, the Rankin County Sheriff’s Office, the Pelahatchie Police Department and the Brandon Police Department.
The case was prosecuted by Assistant United States Attorneys Kabah Ealy and Dave Fulcher.
Pensacola Man Sentenced to 150 Months in Federal Prison for Possession of DrugsRead the Press Release
PENSACOLA, FLORIDA – Darnell Devaughn Burnett, 40, of Pensacola, Florida, was sentenced to serve 150 months in federal prison after previously pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine, 500 grams or more of a mixture and substance containing methamphetamine, 100 grams or more of a mixture and substance containing heroin, a quantity of fentanyl, and a quantity of cocaine. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence.
“Our local, state, and federal law enforcement partners work tirelessly to keep us safe and serve a critical role in removing addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “Through their efforts, this defendant – a prior offender currently serving a probationary sentence – will face the significant consequences of his continued criminal conduct. We will continue to support our law enforcement partners as we work together to investigate and prosecute criminals distributing drugs in North Florida.”
On June 13, 2023, a state search warrant was executed at Burnett’s residence in Pensacola, Florida. During the search of the residence, law enforcement located and seized 829 grams of methamphetamine, 137.9 grams of heroin, small quantities of fentanyl and cocaine, a digital scale and bags used for drug distribution. Evidence introduced at the sentencing hearing established that at the time the search warrant was executed at his residence, Burnett was on state probation for drug distribution charges.
“This case is another example of how our strong law enforcement partnership enhances public safety in Pensacola,” said Pensacola Police Chief Eric Randall. “We are committed to utilizing every resource available to hold accountable those responsible for the distribution of dangerous drugs in our community.”
“The DEA Miami Field Division remains committed to pursuing those who continue to put personal profits over the lives of our citizens by distributing this poison in our communities and hold them accountable for their actions,” said DEA Miami Field Division Special Agent in Charge Deanne Reuter. “With the support and cooperation from our local, state, and federal law enforcement partners, we will continue to succeed in our mission of keeping our Florida communities safe and healthy.”
Burnett’s prison sentence will be followed by 5 years of supervised release.
This sentencing resulted from a joint investigation by the Pensacola Police Department, the Drug Enforcement Administration, and the Florida Department of Law Enforcement. The case was prosecuted by Assistant United States Attorney J. Ryan Love.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pearl River Man Sentenced for Production of Child PornographyRead the Press Release
Jackson, MS – A Pearl River man was sentenced to 30 years in federal prison for production of child pornography.
According to court documents, Garald Benson Johnson, 43, admitted to filming himself having sexual intercourse with a minor.
Johnson was indicted by a federal grand jury on May 16, 2023. He pled guilty on August 29, 2023, to production of child pornography.
U.S. Attorney Todd Gee and Robert Eikhoff, Special Agent in Charge of the Federal Bureau of Investigation’s Jackson Office, made the announcement.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the 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.
Passaic County Man Indicted for Seven Gunpoint Robberies of PharmaciesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was indicted by a federal grand jury today for his role in seven gunpoint robberies of pharmacies in Passaic County, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Onijee Burgess, 26, of Paterson, New Jersey, is charged in a nine-count indictment with one count of conspiracy to commit Hobbs Act robbery, one count of conspiracy to use and carry a firearm during and in relation to a crime of violence, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence, and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence. Burgess, who was previously charged by complaint and was detained, will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
From November 2022 through April 5, 2023, Burgess conspired with Antonio Rivera and others to commit seven separate armed robberies of five different pharmacies in Paterson and Passaic, New Jersey. Law enforcement collected an extensive amount of video surveillance footage and cell phone data that ultimately linked Burgess and Rivera to the robberies. Rivera, Burgess’ conspirator, was previously charged by complaint and is detained.
The Hobbs Act robbery, attempted Hobbs Act robbery, and conspiracy to commit Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The conspiracy to use and carry a firearm during and in relation to a crime of violence count also carries a maximum potential penalty of 20 years in prison. The using, carrying, and brandishing a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other term of imprisonment imposed. The using, carrying, and discharging a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which also must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000, or twice the gain or loss from the offenses, whichever is greatest.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanks members of the Paterson Police Department, under the leadership of Officer in Charge Isa M. Abbassi; members of the Passaic Police Department, under the leadership of Police Chief Luis Guzman; members of the Passaic County Sheriff's Office, under the leadership of Acting Sheriff Gary F. Giardina; members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor's Office, under the leadership of Chief Jason Love; and members of the Cedar Grove Police Department, under the leadership of Police Chief John J. Kennedy.
The government is represented by Assistant U.S. Attorney Ariel Douek of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
burgess.indictment.pdfOwner of Tax Preparation Company Pleads Guilty to Bank Fraud and $2.1 Million COVID Relief FraudRead the Press Release
BOSTON – A Lawrence woman pleaded guilty yesterday in federal court in Boston to separate fraudulent schemes that targeted banks and the Small Business Administration (SBA).
Luz Paulino, 42, pleaded guilty to one count of bank fraud conspiracy, one count of bank fraud, two counts of wire fraud and two counts of aggravated identity theft. United States District Judge Richard G. Stearns scheduled sentencing for Oct. 9, 2024.
Paulino was initially charged by criminal complaint in December 2019 and subsequently indicted by a federal grand jury in January 2021. While on pretrial release, Paulino fled the United States and remained a fugitive for 19 months before Panamanian authorities returned her to the United States.
Paulino owned and operated Agape Financial Services, a Lowell-based company that provided tax preparation and notary services. In early 2020, Paulino filed false and fraudulent federal tax returns for calendar year 2019 using the stolen identities, names and Social Security numbers of individual victims. The fraudulent tax returns reported false information regarding wages, employers and dependents, among other things, to claim tax refunds. To conceal her involvement, Paulino falsely represented to the IRS that the returns had been prepared by two former employees of Agape. Paulino then used the fraudulent returns to obtain Refund Advance Loans in the names of her victims, and then cashed the loan checks using false identification documents and forged signatures.
Paulino also used stolen identities of individuals living in California, Michigan, Indiana and elsewhere to apply to the SBA for $2.1 million in COVID-19 Emergency Injury Disaster Loans (EIDL). Between June 2020 and October 2021, Paulino’s false applications listed fictitious companies that purportedly suffered lost revenues during the pandemic. She used the fraudulently obtained loan proceeds to purchase a 2020 Cadillac for $86,000 and to wire more than $395,000 to a jewelry business in the Dominican Republic, among other expenditures.
The charges of bank fraud conspiracy and bank fraud each provide for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. The charges of aggravated identity theft each provide for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $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; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Melix Bonilla, Acting Chief of the Lawrence Police Department made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit is 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 Justice.gov/Coronavirus and 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.
Ohio Man Pleads Guilty to Threatening New Mexico District AttorneyRead the Press Release
ALBUQUERQUE – A Ohio man pleaded guilty in federal court to making interstate threats after he left a threatening voicemail message for the District Attorney in Dona Ana County, New Mexico.
According to publicly available court documents, on October 26, 2023, Donald Walter Fowler, 47, left a voicemail conveying a threat to the African American elected District Attorney for the 3rd Judicial District Attorney’s Office in New Mexico.
In the voicemail, Fowler said “There should be a noose in your future.”
The Court ordered that Fowler remain on conditions of release pending sentencing, which has not been scheduled.
At sentencing, Fowler faces up to 3 years in prison. Upon his release from prison, Fowler will be subject to up to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office investigated this case with the assistance of the FBI Cleveland Field Office and the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
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Nine Defendants Indicted in North Dakota for Roles in International Drug Trafficking Conspiracy with Ties to a Federal Prison in Florence, ColoradoRead the Press Release
FARGO – United States Attorney Mac Schneider announced that nine defendants have been indicted in the District of North Dakota for drug trafficking and money laundering crimes after a year-long, multi-agency, transnational investigation. The following defendants have been indicted in the case:
Jesus Amurahaby Celestin-Ortega, 26, Florence, Colorado
Charges: Conspiracy to Distribute Controlled Substances, Conspiracy to Import Controlled Substances, Money Laundering Conspiracy, Continuing Criminal Enterprise
Trinidad Torres Meraz, 58, Riverside, California
Charges: Conspiracy to Distribute Controlled Substances, Conspiracy to Import Controlled Substances, Money Laundering Conspiracy
Edgar Hernandez, a/k/a Ivan Edgar Hernandez Vasquez, 43
Charge: Conspiracy to Distribute Controlled Substances
Maria De La Cruz Estrada Moreno, 40, El Paso, Texas
Charges: Conspiracy to Distribute Controlled Substances; Conspiracy to Import Controlled Substances, Money Laundering Conspiracy
Jesse Rocha, 25, Denver, Colorado
Charge: Conspiracy to Distribute Controlled Substances
Rafael Bueno-Nava, 49, Fridley, Minnesota
Charges: Conspiracy to Distribute Controlled Substances, Conspiracy to Import Controlled Substances, Money Laundering Conspiracy
Ryan James Stevens, 41, Arvada, Colorado
Charges: Conspiracy to Distribute Controlled Substances, Conspiracy to Import Controlled Substances
Christan Ivan Gonzalez, 31, Phoenix, Arizona
Charge: Conspiracy to Distribute Controlled Substances
Martina Lucia Mendez, 26, Gilbert, Arizona
Charges: Conspiracy to Distribute Controlled Substances, Conspiracy to Import Controlled Substances
According to court documents, since January 2022, Jesus Amurahaby Celestin-Ortega, also known as Flaco, 26, allegedly engaged in drug-related and money laundering conspiracies, and a continuing criminal enterprise, while incarcerated at a federal prison on unrelated drug and firearm charges. Celestin-Ortega allegedly operated a criminal network using a contraband cellphone from inside the federal prison to import and distribute more than 500 grams of methamphetamine, more than one kilogram of heroin, and more than 400 grams of fentanyl. Celestin-Ortega allegedly directed and coordinated the importation of the substances into the United States and their distribution within North Dakota, Minnesota, California, Colorado, Georgia, Missouri, Texas, Arizona, and elsewhere. Celestin-Ortega also allegedly conspired to launder drug proceeds from the United States to Mexico.
Celestin-Ortega and six of the co-conspirators have been arrested on the indictment and have made their initial appearances in court. Hernandez and Mendez remain fugitives.
If convicted, the defendants face a maximum penalty of life in prison on the drug distribution conspiracy counts and the importation conspiracy counts, and a maximum penalty of 20 years in prison on the money laundering conspiracy counts.
This case is part of Operation Wedding Day Blues, with support from the multi-agency Special Operations Division (S.O.D.) near Washington, DC, an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of methamphetamine, fentanyl, and heroin into North Dakota and other states. OCDETF investigations identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An Indictment is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Internal Revenue Service-CID, Grand Forks Narcotics Task Force, North Dakota Bureau of Criminal Investigation, and Grand Forks Police Department. The Federal Bureau of Prisons National Gang Unit provided critical investigative support from the outset and was an integral part of the investigative team.
The case is being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Matthew P. Kopp, District of North Dakota, and Trial Attorneys Lernik Begian and Tara Arndt, Narcotic and Dangerous Drug Section, Criminal Division, Washington, D.C.
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Nine Defendants Charged for Roles in Drug Trafficking Organization Controlled by Sex, Money, Murder Street GangRead the Press Release
NEWARK, N.J. – Nine people have been charged for their respective roles in a drug trafficking organization that distributed large quantities of fentanyl, heroin, and cocaine in Essex County, U.S. Attorney Philip Sellinger announced.
Calvin Swinton, aka “40,” 32; Lance Yarbough, aka “L-Boog,” 42; Jahad Gorsuch, aka “Hadi Mu,” 47; Coyette Elliott, aka “Q,” 56; Derrick Davidson, aka “Lefty,” 55; Rashem Batts, aka “Dae Dae,” 48; Kiion Scovil, aka “Skrapp,” 35; Tishawn Scovil, aka “Ty,” 33; and Amanda Brown, aka “Manda,” 32, all of Essex County, New Jersey, were charged with one count of conspiracy to distribute fentanyl, heroin, and cocaine. All defendants are in custody. Seven defendants are scheduled to make initial court appearances before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court; Elliott and Scovil are in state custody and will make their initial appearances at a later date.
According to documents filed in this case and statements made in court:
The defendants are members of a drug trafficking organization that operated an open-air narcotics market in the areas of West End and 18th avenues and Alexander Street in Newark. The West End and Alexander drug trafficking organization is affiliated with, and the defendants are members and associates of, the Sex, Money, Murder set of the Bloods street gang. For several months, law enforcement conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, seized narcotics through enforcement action, and analyzed telephone records, all of which demonstrated extensive interactions between and among the charged defendants. The investigation has revealed that the organization distributed in excess of 400 grams of fentanyl.
The defendants face a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Sellinger credited special agents of the FBI under the supervision of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked detectives of the Essex County Prosecutor’s Office, under the direction of Theodore N. Stephens II; special agents of Homeland Security Investigations in Newark under the direction of Acting Special Agent in Charge William S. Walker; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; police officers and detectives of the Irvington Police Department, under the direction of Director Tracy Bowers; police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; police officers and detectives of the East Orange Police Department, under the direction of Chief William C. Robinson; officers of the New Jersey State Department of Corrections; and detectives of the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, for their assistance with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Organized Crime and Drug Enforcement Task Force Unit Chief Samantha C. Fasanello and Assistant U.S. Attorney Jason Goldberg of the Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
swintonetal.complaint.pdfMother, Son Sentenced for Illegal Firearms Following Two Shootings at Swope Park on Father’s Day 2023Read the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman and her son have been sentenced in federal court for illegally possessing the firearms they used in two shootings at Swope Park on Father’s Day last year.
Kippie R. House, 54, and her son, co-defendant Darryel L. Pennington, 32, were sentenced by U.S. District Judge Greg Kays last week. House was sentenced on Thursday, June 20, to 10 years and one month in federal prison without parole. Pennington was sentenced on Monday, June 17, to 10 years in federal prison without parole.
House and Pennington each have pleaded guilty to being a felon in possession of a firearm. House admitted in her plea agreement that she and Pennington had been involved in shootings at Swope Park on June 18, 2023. Pennington pleaded guilty without a plea agreement.
The two separate shooting incidents involved in this case were captured on surveillance video. The video shows House arriving at the crowded park on a sunny day, in an area filled with families near a picnic pavilion and children playing on inflatable bounce-houses. There were several people sitting in lawn chairs or standing near vehicles with a steady flow of traffic through the area where the shootings occurred. House parked her Dodge Challenger and walked across the street, carrying a Smith & Wesson .380-caliber handgun with a laser, and was confronted by a member of her ex-boyfriend’s family.
House became involved in a physical altercation with the other woman and began shooting. The other woman, who was unarmed, ran to retrieve a gun from her vehicle. House waved her gun around in the street as she sought out the woman, shot at her again, and the two engaged in a shoot-out over and around the woman’s vehicle.
House then left the park and went to pick up her son, Pennington. They returned to the park an hour later and Pennington, extending his arm outside the passenger window, began firing a handgun with an extended magazine at House’s ex-boyfriend and his family. At least two people returned fire and Pennington was struck in the leg. House then left the park and took Pennington to Research Hospital.
When a Kansas City police officer approached them at the hospital, House was sitting in her Dodge Challenger, which had a flat back tire and multiple bullet holes, and Pennington was sitting in the front passenger’s seat. Pennington, who had been shot in the right leg, was provided medical treatment. Officers found a loaded Smith & Wesson .380 caliber handgun with a laser in the trunk of the Challenger, as well as a backpack that contained a Glock 10mm semi-automatic handgun and an extended magazine loaded with 23 rounds of ammunition. The Smith & Wesson handgun had been reported stolen.
House admitted the firearms belonged to her and her son and that they had been used in the shootings at Swope Park. House told detectives she returned to the park after the first shooting with a plan to shoot a member of her ex-boyfriend’s family.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. House has a prior felony conviction for receiving stolen property. Pennington has a prior felony conviction for unlawful use of a weapon.
This case was prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
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.
Money Transmitting Business Pleads Guilty to Failing to Report Transactions; Agrees to Forfeit $700,000Read the Press Release
NEWS RELEASE SUMMARY – June 26, 2024
SAN DIEGO – Taaj Services US LLC, one of the nation’s fastest-growing money transmitting businesses, pleaded guilty in federal court today, admitting that it failed to report financial transactions involving more than $10,000 in U.S. currency as required by the Bank Secrecy Act.
As part of the plea agreement, Taaj Services admitted that it was never licensed to operate in California, among other states. Beginning in November 2019, the company entered into a conspiracy with another money transmitting business (MTB-1) that was licensed to operate in California. Taaj worked together with MTB-1 to transfer money in California. With the use of the TaajPay network, MTB-1 could then have California-based customers send money abroad without state regulatory scrutiny of TaajPay’s compliance with the Bank Secrecy Act for MTB-1’s California clients because the California regulators would never know of TaajPay’s operations in the state.
From just November 27, 2019, to December 11, 2019, Taaj collected $703,078 from MTB-1’s operations in the Southern District of California and elsewhere. Taaj never reported these currency transactions as required by the Bank Secrecy Act. As part of the plea agreement, Taaj agreed to forfeit $700,000 to the U.S. government.
Taaj also admitted to transporting $900,000 in physical U.S. currency to the Middle East on behalf of MTB-1 in 2020 without reporting the exchange of currency between the two companies.
Further, after the COVID-19 pandemic interrupted international commercial flights, Taaj was no longer able to physically transport currency abroad on MTB-1’s behalf. As a result, Taaj began using MTB-1’s bank account to wire money abroad. Taaj would provide MTB-1 with cash for MTB-1 to deposit in its bank and then electronically transfer the money on Taaj’s behalf. Taaj admitted that it delivered more than $66 million dollars to MTB-1 as part of this practice and neither company filed any reports to document the exchange.
The plea agreement provides for deferred entry of judgment, whereby the government will defer prosecution of the offense for a 24-month deferral period. If Taaj fully complies with the agreement, the government will dismiss the prosecution after the 24 months.
This case is being prosecuted by Assistant U.S. Attorneys Michael A. Deshong, Carl F. Brooker, IV, and Christopher Beeler.
DEFENDANT Case Number 24cr1322-BAS
Taaj Services US LLC Minneapolis, MN
SUMMARY OF CHARGES
Willful Failure to File Transaction Report – Title 31, United States Code, Sections 5313 and 5322; 31 C.F.R. § 1010.330.
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
Homeland Security Investigations
Middlesex County Man Sentenced to 311 Months in Prison for Persuading, Inducing and Enticing Victims for ProstitutionRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 311 months in prison for persuading, inducing, and enticing women to travel in interstate commerce to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.
Jose Torres, 46, was previously convicted of all four counts of a second superseding indictment following a six-day trial before U.S. District Judge Brian R. Martinotti, who imposed the sentence today in Newark federal court.
According to the documents filed in this case and the evidence at trial:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from out of state locations, including Canada and New York, to engage in prostitution with him. In each instance, Torres trolled prostitution websites and targeted out-of-state sex workers. He lured them to New Jersey with promises of large sums of payment. Once the women were in New Jersey, Torres refused to pay them. When the victims asked for payment, Torres became aggressive, often assaulting and raping them.
In addition to the prison term, Judge Martinotti sentenced Torres to 15 years of supervised release and imposed a $5,000 special assessment for trafficking.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the sentencing.
The government is represented by Bruce P. Keller, Special Counsel to the U.S. Attorney, in Newark.
Mercer County Man Admits to Multiple Narcotics Distribution and Firearms ChargesRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man today admitted possession of fentanyl and cocaine with intent to distribute and possession of a firearm in furtherance of drug trafficking offenses, U.S. Attorney Philip R. Sellinger announced today.
Jamal Wilson, aka “Vill,” 49, of Trenton, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to a superseding information charging him with one count of possession of fentanyl with intent to distribute, one count of possession of cocaine with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and two counts of unlawful possession of a firearm by a convicted felon.
In August 2022, Wilson and 12 other individuals were charged by criminal complaint with drug trafficking and firearms offenses.
According to documents filed in this case and statements made in court:
In July 2020, the FBI and other law enforcement agencies began an investigation of individuals engaged in unlawful drug-trafficking and firearms activities in the area of Garfield, Cleveland, and Logan avenues, a Trenton neighborhood known for high levels of narcotics activity and gun violence. The investigation revealed that Wilson was a significant drug trafficker of fentanyl and cocaine, including the area of the Grand Court Villas apartment building, East State Street and South Olden Avenue and the Garfield Avenue Playground. The investigation also revealed the scope of Wilson’s unlawful drug-trafficking activities, including Wilson’s customers and co-defendants. Law enforcement recovered from Wilson’s residence and his stash house 2,106 grams of cocaine, approximately 450 grams of cocaine base, 1,085 grams of fentanyl, four firearms, and two suppressors.
The charge of possession with intent to distribute fentanyl carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a maximum fine of $10 million. The charge of possession with intent to distribute cocaine carries a statutory mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years in prison, a maximum of life in prison, which must run consecutively to any term of imprisonment imposed on any other count, and a $250,000 fine. The charges of unlawful possession of a firearm by a convicted felon each carry a maximum of 15 years in prison, and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2024.
The status of the charges filed against Wilson’s co-defendants is as follows:
Defendant
Theodore Meekins, aka “Meech”
- Pleaded guilty on Nov. 16, 2023, to a three-count information, which charged him with two counts of distributing and possessing with intent to distribute fentanyl and one count of unlawfully possessing a firearm as a convicted felon.
- Sentenced on March 20, 2024, to 165 months in prison, three years of supervised release.
Louis Williams, aka “Bake”
- Pleaded guilty on Nov. 8, 2023, to an information, which charged him with three counts of possessing with intent to distribute fentanyl.
- Sentenced on May 22, 2024, to 18 months in prison, three years of supervised release.
Clinton Rodriguez, aka “C-Rod”
- Pleaded guilty on June 13, 2023, to a one-count Information, which charged him with possessing with intent to distribute cocaine.
- Sentenced on April 24, 2024, to 15 months’ imprisonment and three years’ supervised release.
Rashied McKines
- Pleaded guilty on May 24, 2023, to one-count Information, which charged him with distributing and possessing with intent to distribute cocaine.
- Sentenced on March 19, 2024, to time served and three years’ supervised release.
Michael Williams, aka “Ice”
- Pleaded guilty on September 7, 2023, to a one-count Information, which charged him with possessing with intent to distribute cocaine.
- Sentenced on March 20, 2024, to three years’ probation.
Derrick Jiles
- Pleaded guilty on June 7, 2023, to a three-count Information, which charged him with three counts of possessing with intent to distribute fentanyl.
- Sentenced on April 17, 2024, to 21 months’ imprisonment and three years’ supervised release.
Dion Morris
- Pleaded guilty on November 30, 2023, to an Information, which charged him with four counts of distributing and possessing with intent to distribute cocaine.
- Sentenced on April 30, 2024, to 8 months’ imprisonment and three years’ supervised release.
Jerry Farmer
- Pleaded guilty on June 6, 2023, to a one-count Information, which charged him with possessing with intent to distribute fentanyl.
- Sentencing scheduled for September 17, 2024, at 11:00 a.m.
James Edwards
- Pleaded guilty on June 27, 2023, to a one-count Information, which charged him with possessing with intent to distribute fentanyl.
- Sentencing scheduled for June 20, 2024, at 1:00 p.m.
Alterrick Livingston
- Pleaded guilty on June 7, 2023, to a one-count Information, which charged him with unlawful possession of ammunition as a convicted felon.
- Sentenced on December 13, 2023, to time served and three years’ supervised release.
Kai Bowman, Jr.
- One count of possessing with intent to distribute heroin, remains pending on criminal complaint.
Glenn Moore
- One count of possessing with intent to distribute heroin, remains pending on criminal complaint.
These convictions and sentences are the result of an investigation by the Greater Trenton Safe Streets Task Force. Led by the FBI, the Task Force is comprised of various federal, state, and local law enforcement agencies, and its mission is to combine the resources and intelligence of the participating agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Ross A. Marchetti; officers of the Trenton Police Department, under the direction of Director Steve Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to the conviction and sentencing.
The government is represented by Assistant U.S. Attorneys Ashley Super Pitts and Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The defendants for whom charges remain pending are presumed innocent, unless and until proven guilty.
wilson.sinformation.pdfMembers of a Cargo Theft Ring Sentenced to PrisonRead the Press Release
ROME, Ga. – Yunior Hernandez a/k/a “Yunior Hernandez Guzman,” Roberto Quesada Lopez, Carlos Alberto Valdes, and Yubani Millares Vera have been sentenced to prison for multiple cargo thefts throughout the Southeastern United States totaling more than $1.7 million.
“Thefts of interstate shipments disrupt the production and delivery of needed goods and result in detrimental financial impact on businesses, consumers, and the U.S. economy generally,” said U.S. Attorney Ryan K. Buchanan. “The sentencing of these defendants is an example of our office’s commitment to prosecute these criminals as well as a warning to others that these offenses are an investigative priority for our federal, state, and local law enforcement partners.”
“The FBI takes cargo theft very seriously, due to the significant impact it has on the United States economy, and the potential for stolen goods to be used to fund other criminal organizations,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This theft conspiracy did not stop at our state border, and neither did our investigation. Thanks to our partnership with Miami agencies, we tracked these thieves across the entire southeast, and now they will be held accountable for their crimes.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Throughout 2019, the defendants, Yunior Hernandez, Roberto Quesada Lopez, Carlos Alberto Valdes, and Yubani Millares Vera, operated a cargo theft ring throughout the Southeastern United States. In total, the defendants stole cargo worth more than $1.7 million. The stolen goods were then taken to Florida and sold.
The defendants stole over:
•$500,000 worth of computers in Macon, Georgia, on May 18, 2019;
•$640,000 worth of computers meant for the Centers for Disease Control in Emerson, Georgia, on June 11, 2019;
•$110,000 worth of copper in Denmark, Tennessee, on July 21, 2019;
•$110,000 worth of copper in Glade Springs, Virginia, on September 2, 2019;
•$110,000 worth of copper in Fairview, Tennessee, on October 6, 2019; and
•$340,000 worth of apparel in Kingsland, Georgia, on November 16, 2019.
Yunior Hernandez, 50, of Homestead, Florida, was sentenced to two years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay $880,857.43 in restitution. Hernandez was convicted of conspiracy on December 20, 2022, after he pleaded guilty.
Carlos Alberto Valdes, 55, of Hialeah, Florida, was sentenced to three years, 10 months in prison to be followed by three years of supervised release. He was ordered to pay $1,543,890.60 in restitution. Valdes was convicted of conspiracy on January 19, 2023, after he pleaded guilty.
Roberto Quesada Lopez, 44, of Hialeah, Florida, was sentenced to two years, six months in prison. He was ordered to pay $1,229,888.32 in restitution. Lopez was convicted of conspiracy on July 18, 2023, after he pleaded guilty.
Yubani Millares Vera, 49, of Hialeah, Florida, was sentenced to five years in prison to be followed by three years of supervised release. He was ordered to pay at least $1,760,479.12 in restitution. Millares Vera was convicted of conspiracy on March 14, 2024, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Assistance was provided by the Miami-Dade County Police Department, Economic Crime Bureau, and the Federal Bureau of Investigation Miami Field Office.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Member of Violent Gang Sentenced for Racketeering, Firearm, and Drug OffensesRead the Press Release
BOSTON – A Boston area man was sentenced today for his role in Cameron Street, a violent Boston gang.
Keiarri Dyette, a/k/a “Kemo,” 26, was sentenced by U.S. Senior District Court Judge William G. Young to 42 months in prison and four years of supervised release. In March 2024, Dyette pleaded guilty to conspiracy to participate in a racketeering enterprise, dealing in firearms without a license and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
Dyette was identified as a member Cameron Street, a violent gang based largely in the Dorchester section of Boston. According to court documents, Cameron Street members use violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear, and enhance its reputation. They allegedly possess, carry, and use firearms to murder and assault their rivals. Like many members of Cameron Street, Dyette had tattoos and or wore clothing featuring the letter “C” or “KC” (for “Killa Cam”) that signified his membership in the gang:
As part of his role in the Cameron Street enterprise, Dyette used a pistol to assault a rival NOB/Wendover gang member in a parking lot on Hancock Street in Boston. Additionally, Dyette sold firearms and worked with other Cameron Street members to distribute cocaine and marijuana.Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Woman Sentenced for Theft of Federal Housing and Food Assistance PaymentsRead the Press Release
PITTSBURGH, Pa. - A resident of Laurel, Maryland, has been sentenced in federal court to three years of probation and restitution of more than $50,000 following her conviction for theft of government funds from two federal agencies, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Briayell Moore, 43.
In connection with Moore’s guilty plea, the Court was advised that, from approximately June 2010 until approximately May 2017, Moore misrepresented her household circumstances and eligibility for two different federally funded programs designed to assist lower income citizens. This involved Moore providing false information about her household composition, income, and marital status to receive Housing Assistance Payments from the U.S. Department of Housing and Urban Development, as well as to qualify for and receive Supplemental Nutritional Assistance Payments from the U.S. Department of Agriculture. Moore would neither have been eligible for nor received these benefits based on her actual household composition, income, marital status, and other factors.
Prior to imposing sentence, Senior Judge Conti noted that Moore’s conduct deprived other deserving community members of the benefits to which they were entitled. As part of her sentence, Moore was ordered to pay restitution to both the U.S. Department of Housing and Urban Development and U.S. Department of Agriculture.
Assistant United States Attorney Nicole A. Stockey prosecuted this case on behalf of the government.
United States Attorney Olshan commended the U.S. Department of Housing and Urban Development Office of Inspector General, U.S. Department of Agriculture Office of Inspector General, and Allegheny Housing Authority’s Investigations Unit for the investigation leading to the successful prosecution of Moore.
Man Sentenced for Tampering and Vandalism at Sleeping Bear Dunes National LakeshoreRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Andrew Blair Howard, 63, of Sparta and Frankfort, Michigan, was sentenced to 60 months’ probation and ordered to pay $22,472.22 in total restitution to the National Park Service and U.S. Coast Guard, along with $3,947.71 in costs related to the court proceedings. U.S. Magistrate Judge Ray Kent further banned Mr. Howard as a term of his probation from being on National Park Service property, including Sleeping Bear Dunes National Lakeshore. The government did not seek a sentence of imprisonment for Mr. Howard. Judge Kent imposed the sentence after previously finding Mr. Howard guilty at trial.
U.S. Attorney Mark Totten issued the following statement: “Mr. Howard had a policy dispute with the National Park Service over whether to dredge the Platte River. Reasonable people can disagree on the best course of action, but Congress gave NPS the power to decide. While Mr. Howard had the right to disagree and advocate for his position, he did not have the right to take the law into his own hands and force his favored result. Doing so was a misdemeanor, and this sentence holds Mr. Howard accountable for his offense.”
Howard was previously convicted at trial in February 2024 of two federal misdemeanors for tampering and vandalism at Sleeping Bear Dunes National Lakeshore in connection with an August 15, 2022, diversion of the Platte River. In August 2022, National Park Service law enforcement officers investigated reports of a diversion of the Platte River near its mouth where it meets Lake Michigan. Evidence at trial showed that on August 15, 2022, Howard used a shovel to dig sediment and rocks from the river basin and stacked large rocks on a dam to divert the river’s natural water flow toward a newly created channel out to Lake Michigan, contrary to a decision by the National Park Service to let the river follow its natural course.
The National Park Service expended significant resources by deploying NPS personnel and Coast Guard resources to evaluate the impact on the National Lakeshore, including on the Platte River, adjoining habitats, and affected wildlife. The Platte River area is home to protected wetlands, coastal dunes, plants, and wildlife. Several endangered animal species and threatened plant species make the Platte River area their home, including the piping plover, a small migratory bird that nests along the sand and shore of Lake Michigan, and Pitcher’s thistle, a native thistle that grows along the sand dunes of Lake Michigan. Due to the significant decrease in—and the partial absence of—water levels after the diversion, as well as changes to the flow and speed of the river, NPS staff observed wetland vegetation drying and ultimately dying within and along the river. Overall, the change in water levels caused by the diversion drained the wetlands and negatively impacted many plants and aquatic invertebrates in the process. Given the volume and power of water moving through the diversion, and after careful consideration of impacts to affected ecosystems and wildlife, NPS concluded that major remediation to restore the area to its natural state was not advisable because the remediation would involve substantial disturbance to the fragile ecosystems of the area. NPS continues to monitor and assess the damage and situation.
The diversion also created an unauthorized access for large boats to enter Platte Bay. Within days, the natural power of the water and the dam caused the new channel to reach approximately 200 feet wide. The following aerial photograph on the left, taken in May of 2022, shows the natural flow of the Platte River running parallel to Lake Michigan. The photograph on the right taken by the U.S. Coast Guard shows the same area approximately three days after the diversion, with the channel emptying directly into Lake Michigan.
May 2022 August 2022“Sleeping Bear Dunes National Lakeshore was created in 1970 to preserve and protect this amazing place,” said Superintendent Scott Tucker. “The National Park Service appreciates the support of the U.S. Attorney’s Office in enforcing the laws that help protect this place for future generations.”
The National Park Service investigated this case. Assistant United States Attorney Lauren F. Biksacky prosecuted it on behalf of the United States.
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Man Pleads Guilty to Operating a Cryptocurrency Investment Scheme and Defrauding Investors of More than $350,000Read the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Michael Joseph McElhiney, age 37, formerly of Spokane, Washington, pleaded guilty to Wire Fraud. United States District Judge Thomas O. Rice accepted McElhiney’s guilty plea and scheduled a sentencing hearing for September 25, 2024, in Spokane, Washington.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, between March 4, 2021, and September 10, 2022, McElhiney defrauded investors by pretending to operate a cryptocurrency investment fund known as MAC Blockchain Solutions. McElhiney promised prospective investors that he and his purported business partners ran a successful cryptocurrency investment fund that invested in emerging cryptocurrencies and other blockchain-based projects, such as Ethereum staking and cryptocurrency liquidity pools.
McElhiney typically contacted his victims in person. For example, he solicited individuals working as Uber drivers whom he met while taking Uber rides in their vehicles, as well as women whom he met through dating apps. McElhiney also met victims online playing the video game “Call of Duty” under the username “Bing Bong.” McElhiney often met with victims several times and developed personal relationships with them before successfully soliciting and receiving funds.
McElhiney promised that he would invest funds provided by investors and manage those investments for the benefit of his clients. McElhiney promised guaranteed or variable returns depending on the supposed investment vehicle, and always promised investors that they could liquidate their investments and get their money back at any time. McElhiney then sent investors information using a platform called Coin.FYI that purported to track the progress of their investments. In actuality, McElhiney never invested the funds provided by investors, but instead kept the funds for his own personal use, specifically to gamble at casinos, among other purposes. The purported Coin.FYI accounts that McElhiney showed investors did not correspond to any actual investment funds but instead were fabricated figures intended to convince investors that McElhiney had invested their funds and that the investments were appreciating in value.
McElhiney defrauded investors of more than $350,000 in this manner, including defrauding investors not only of cash but rare art and precious metals.
McElhiney continued to falsely and fraudulently represent to victims that their assets had been invested in a cryptocurrency fund when victims sought to remove their assets from the “fund.” McElhiney falsely and fraudulently represented that he could not timely return victims’ assets because, among other reasons: MAC Solutions had experienced security breaches; McElhiney was out of the country and unable to facilitate withdrawals; McElhiney and MAC Solutions had been the victims of theft; payment processing platforms had paused withdrawals; and there were other delays in processing withdrawals.
U.S. Attorney Waldref stated that no matter the means or the method, fraudsters will be held accountable. “Mr. McElhiney’s scheme involved a new form of digital currency, but his goal was old as time – to separate his victims from their money. My heart goes out to the victims who were defrauded out of their hard-earned money that they needed to take care of themselves and their loved ones. I want to especially applaud Homeland Security Investigations and Spokane Police Department, who both did an incredible job investigating this case and identifying victims of Mr. McElhiney’s fraud. My office will continue to work with our law enforcement partners to vigorously prosecute fraudsters who take advantage of innocent victims in order to enrich themselves.”
“Fraud involving cryptocurrency is particularly concerning as it can be difficult to trace and recover stolen funds, financially devastating victims while eroding trust in digital financial systems,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Fortunately, HSI agents in partnership with the Spokane Police Department, were able to prevent this fraudster from taking advantage of more victims.”
This case was investigated by Homeland Security Investigations and the Spokane Police Department. It is being prosecuted by Assistant United States Attorney Dan Fruchter.
Man Pleads Guilty to Conspiracy to Commit Sex TraffickingRead the Press Release
WASHINGTON - A Tennessee man pleaded guilty today to conspiracy to commit sex trafficking of a minor and sex trafficking by force, fraud, or coercion.
According to court documents, from December 2021 through March 2022, Charles Cunigan, 31, and his girlfriend, Latesha Gardner, transported the victim, who was a minor throughout the timeframe of the conspiracy, across state lines from Tennessee to Illinois, Louisiana, and Texas for the purpose of causing her to engage in commercial sex acts. Cunigan advertised the victim for commercial sex on websites, kept the money the victim made from commercial sex transactions, required the victim to earn a daily quota from commercial sex, and restricted the victim’s access to food. Cunigan also tracked the victim’s location using a cell phone application and told her that he would find and kill the victim if she ever tried to leave.
Cunigan used violence to accomplish the scheme. For example, if the victim did not comply with Cunigan’s demands, he would beat the victim, which Cunigan did when he punched and kicked the victim during an altercation in February 2022. On occasion, Cunigan also directed Gardner to use physical force against the victim.
Cunigan is scheduled to be sentenced on Sept. 24. If the court accepts the guilty plea, the government and Cunigan have agreed that Cunigan will be sentenced to 22 years and six months’ imprisonment. Cunigan has also agreed to pay $48,750 in restitution to the victim. As a result of his conviction, Cunigan must participate in the sex offender registration and notification program upon his release from custody.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Deputy Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) New Orleans made the announcement.
HSI New Orleans investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana are prosecuting the case.