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18 June 2024
Members of Brooklyn-Based “Bully Gang” Convicted of Racketeering, Murder and Gang-Related CrimesRead the Press Release
On Thursday and today, a federal jury in Brooklyn convicted Moeleek Harrell, Derrick Ayers, Franklin Gillespie and Anthony Kennedy on 21 counts of an eighth superseding indictment charging them variously with racketeering, murder, murder conspiracy, robbery, drug offenses, money laundering and bribery of state correction officers. The defendants are members of a violent Brooklyn-based street gang known as the “Bully Gang,” which operated and committed crimes in and around Bedford Stuyvesant with a headquarters located at 1625 Fulton Street. Harrell was one of the founders and the leader of the Bully Gang; Ayers was a high-ranking member; Kennedy was a longstanding member; and Gillespie was a violent enforcer for the gang. Today’s verdicts followed a 13-week trial before United States District Judge Brian M. Cogan. When sentenced, the defendants each face a maximum sentence of life in prison and mandatory minimum sentences ranging from 15 to 55 years.
Breon Peace, United States Attorney for the Eastern District of New York, Bryan Miller, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the verdict.
“With today’s convictions, the leadership of the Bully Gang has been taken down and their criminal enterprise is a shell of the violent crew that wreaked havoc on Bedford Stuyvesant, other parts of New York City and the Eastern Seaboard with murder, broad daylight shootings, robberies, arsons, drug trafficking and bribery of correction officers at Rikers Island to facilitate a drug trafficking scheme,” stated United States Attorney Peace. “They used force and violence against rivals, terrorized the surrounding communities and enriched themselves and their members with the illicit proceeds of their criminal activities. These lawless, so-called ‘Bullies’ have been held responsible for their crimes thanks to the outstanding work by law enforcement agents and detectives who, together with our excellent prosecutors, brought this comprehensive investigation to a successful conclusion.”
“These convictions put an end to the reign of terror committed by this gang, shattering the myth that criminals can commit atrocious acts without consequence. This is the result of a multi-year investigation involving multiple law enforcement agencies spanning multiple jurisdictions. I commend our law enforcement partners—NYPD, NYC Department of Investigations, and our law enforcement partners in New Jersey, Massachusetts, Maine and prosecutors with the U.S. Attorney’s Office—for their relentless efforts in making our communities safer,” stated ATF Special Agent-in-Charge Miller. “In particular, I am proud of the men and women of ATF NY and the ATF/NYPD Joint Firearms Task Force, who fight every day to prevent violence in any form, and are committed to dismantling and disarming violent gangs that plague our streets. ATF once again reaffirms its unwavering commitment to protecting the public from violent offenders.”
“These convictions represent the culmination of an extensive investigation combined with a vigorous prosecution,” stated NYPD Commissioner Caban. “The stakes could not have been higher because these gang members were responsible for an assortment of despicable crimes, including murder, robbery, narcotics trafficking, money laundering, and bribery. A powerful message has been sent: Our city will not tolerate such criminal activity, and the NYPD and our law enforcement partners will keep working tirelessly to identify and investigate these enterprises and bring the individuals involved to justice.”
DOI Commissioner Strauber stated: “The violence and drug trafficking in which these defendants engaged had far-reaching effects, including compromising the security of the City’s jails through the bribery of City correction officers used to traffic drugs from gang members to inmates on Rikers Island. I thank the U.S. Attorney for the Eastern District of New York, the ATF and the NYPD for their partnership on this significant investigation and their commitment to bring to justice those who would jeopardize the safety of our communities through gang violence.”
MURDER CONSPIRACY, MURDER AND FIREARMS OFFENSES
Ayers was convicted of murdering Jonathan Jackson, an associate of the rival “Stukes Crew” gang, at a gender reveal party for Harrell’s child on March 3, 2018, in Brooklyn. Gillespie was convicted of conspiring to murder Mike Hawley in April 2020 to prevent him from informing authorities about the murder of Paul Hoilett in Brooklyn on April 11, 2020. Hawley was murdered in Queens four days later, on April 15, 2020.Ayers and Harrell were convicted of conspiring to murder the leader of the Stukes Crew, whom they stalked by aggregating information from public databases, including the locations where their cars were ticketed. That stalking led to at least three occasions in 2017 and 2018, when the gang members shot at their rivals and injured some of them.
Ayers and Harrell were convicted of conspiring to murder Chris King, who had previously killed a Bully Gang member. King was stalked, including having his court appearances tracked, and was ultimately shot outside a Queens restaurant. A woman who was with King at the time was also wounded. Both survived their injuries.Finally, Harrell, Ayers, Gillespie and Kennedy were convicted of illegal possession, brandishing and discharge of firearms.
NARCOTICS TRAFFICKING CONSPIRACIES
Harrell and Kennedy were convicted of conspiring to smuggle drugs into Rikers Island from at least 2019 until 2021. During that time, members of the Bully Gang arranged for papers and comic books soaked in synthetic cannabinoids, also known as “K2,” to be mailed to inmates at Rikers, smuggled in by third parties, including correction officers and sold to inmates. Once inmates received the K2-soaked papers, they sold smaller quantities to other inmates at a substantial profit.
Harrell, Ayers, Kennedy and Gillespie were convicted of a separate, years-long scheme to transport large quantities of drugs, including cocaine base, heroin and fentanyl, from New York and New Jersey to Maine, where members and associates of the Bully Gang sold the drugs out of stash houses. The narcotics were transported in vehicles equipped with concealed compartments, also called “traps,” that were professionally installed. Ayers was also convicted of running numerous “stash houses” in Maine, from which his underlings sold drugs on behalf of the conspiracy.
MONEY LAUNDERING
Harrell and Kennedy were convicted of laundering the illicit proceeds from the Rikers drug sales by transferring thousands of dollars each month into CashApp accounts and making wire transfers to co-conspirators through intermediaries. A portion of this money was used to purchase more K2 and bribe correction officers at Rikers.Also, Harrell and Ayers were convicted of laundering the illicit proceeds from the lucrative East Coast drug trafficking scheme. Harrell, Ayers and their co-conspirators purchased high-value assets, including expensive jewelry and vehicles. They also disguised the proceeds of the scheme by having co-conspirators, some of whom had legitimate jobs, use the cash to make ostensibly legitimate purchases that were actually for the benefit of Harrell and Ayers.
BRIBERY
Harrell and Kennedy were convicted of participating in the Rikers Island drug trafficking scheme by bribing correction officers at Rikers. Harrell’s leadership of the gang continued even after his detention at Rikers, where he led a drug trafficking, bribery and money laundering scheme responsible for smuggling drugs into the jail through the use of co-conspirators and the payment of bribes to correction officers.ROBBERY
Gillespie was convicted of robberies on consecutive days in August 2020, in downtown Manhattan. Gillespie and others in the Bully Gang pointed firearms, including a large Mac-10-style firearm, at their victims while demanding their money, jewelry and shopping bags. After the robberies, Gillespie was arrested with some of the same firearms.
* * * * *
The jury was unable to reach a unanimous verdict with respect to several remaining counts of the eighth superseding indictment, which charged Ayers with causing Jackson’s death through the use of a firearm; Gillespie with causing Hoilett’s death through the use of a firearm and illegally possessing, brandishing and discharging a firearm in connection with that death; and Gillespie and Kennedy with causing Hawley’s death through the use of a firearm and illegally possessing, brandishing and discharging a firearm in connection with that death. A mistrial was declared as to those counts. The Office intends to retry the defendants on those counts that the jury was unable to reach a verdict. Those charges are allegations and the defendants are presumed innocent unless and until proven guilty.
Since 2020, 53 members and associates of the Bully Gang have been publicly charged with a variety of crimes in connection with this investigation, and 49 have been convicted. Three defendants are awaiting trial, and one is a fugitive.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section and Public Integrity Section. Assistant United States Attorneys Drew G. Rolle, Lindsey R. Oken, Joy Lurinsky and Victor Zapana are prosecuting the case with the assistance of Lead Legal Administrative Specialist Samantha E. Ward and Paralegal Specialists Emily Moosher and William Daniels, as well as Intelligence Analyst Eungee Hwang and a number of EDNY Criminal Investigators and Special Agents.
The Defendants: DERRICK AYERS (also known as “Dee” and “Mel”)
Age: 37
Rahway, New JerseyMOELEEK HARRELL (also known as “Moe Money”)
Age: 34
Brooklyn, New YorkFRANKLIN GILLESPIE (also known as “Spazz” and “Frankie Gino”)
Age: 33
Newark, New JerseyANTHONY KENNEDY (also known as “Biggie”)
Age: 38
Queens, New YorkE.D.N.Y. Docket No.: 20-CR-239 (BMC)
Member of Violent Gang Sentenced to Nearly 21 Years in Prison for Racketeering Involving Attempted MurderRead the Press Release
BOSTON – A Boston-area man was sentenced yesterday for his role in Cameron Street, a violent Boston gang.
Daronde Bethea, a/k/a “Freeze,” 32, of Boston and Brockton, was sentenced by U.S. Senior District Court Judge William G. Young to 250 months in prison, and three years of supervised release. In February 2024, Bethea pleaded guilty to conspiracy to participate in a racketeering enterprise, more commonly known as RICO conspiracy; conspiracy to interfere with commerce by force or violence; and being a felon in possession of a firearm and ammunition.
“This defendant will now pay a very heavy price for all the violence inflicted on our communities,” said Acting United States Attorney Joshua S. Levy. “The number of law-enforcement agencies that work together to secure this conviction and lengthy sentence is a testament to the federal state and local collaboration to combat violent crime and keep the law, abiding men and women who live in these communities safe.”
“This is another example of our commitment to work tirelessly to protect our communities and hold accountable those who threaten our safety," said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. "Sending a career criminal like Daronde Bethea to prison sends a message to the community that violent gang members will be held accountable as we work to keep our neighborhoods safe, which is a top priority for ATF.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “These crimes rob the neighborhoods of safety and hold law abiding citizens of Massachusetts hostage to drug fueled lawlessness. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
"The Boston Police Department is proud to work with our federal and state partners to bring violent criminals to justice. Criminals create gangs and other organized structures to disrupt the lives of residents using violence and intimidation, often targeting the vulnerable. This sentencing is an example of how we in law enforcement can bring our resources together to target those bad actors," said Commissioner Michael Cox, Boston Police Department. "We will continue to work with our partners to do all we can to protect the families and individuals we serve here in Boston."
Bethea was identified as a member of Cameron Street, a violent gang based largely in the Dorchester section of Boston. According to court documents, Cameron Street members use violence, including murder and attempted murder, to preserve, protect and expand its territory. They allegedly use social media to promote Cameron Street, celebrate murders and other violent crimes, and denigrate rival gangs. They allegedly possess, carry and use firearms; distribute controlled substances; commit armed robberies; and engage in human trafficking in part to generate income for the gang.
As part of his role in the Cameron Street enterprise, Bethea committed an attempted murder with a firearm of a rival gang member in Dorchester in June 2018. As the victim got into his car, Bethea shot the victim multiple times causing the victim to have a collapsed lung.
In addition to the attempted murder, Bethea was involved in two violent home invasion robberies – in November 2017 in Dorchester and July 2018 in Canton. During a chase from the Canton home, Bethea was captured on a police cruiser camera possessing a loaded handgun that was later recovered.
Acting U.S. Attorney Levy; ATF SAC Ferguson; DEA Acting SAC Belleau; and BPD Commissioner 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 named in the indictment are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Malta man admits illegal possession of silencerRead the Press Release
GREAT FALLS — A Malta man admitted today to illegally possessing a silencer after law enforcement served a search warrant at his residence and found numerous firearms, a suppressor, drug paraphernalia and methamphetamine, U.S. Attorney Jesse Laslovich said today.
Deric Ron Welch, 36, pleaded guilty to possession of an unregistered silencer. Welch faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 23. Welch was released pending further proceedings.
In court documents, the government alleged that on May 27, 2023 in Malta, law enforcement responded to a domestic violence call at Welch’s residence, and a state search warrant was obtained for the residence. Law enforcement recovered numerous firearms, one suppressor, drug paraphernalia and meth. An investigation determined that the silencer found in the search was a device for silencing or muffling a firearm and was not registered as required by federal law.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Phillips County Sheriff’s Office conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Maine Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
BOSTON – A member of a nationwide drug trafficking ring pleaded guilty today in federal court in Boston to drug trafficking charges. During the investigation, over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns and over 4,200 rounds of ammunition were seized. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.
Emil Dzabiev, 44, of Scarborough, Maine, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 2, 2024.
Dzabiev was arrested and charged along with seven others in July 2021 and was subsequently charged in a superseding indictment that added three defendants in September 2021.
In late 2020, Reshat Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to customers throughout the New England area. Dzabiev was identified as one of Alkayisi’s regular customers who routinely purchased methamphetamine and redistributed it in Maine. In May 2021, Dzabiev was stopped after a meeting with Alkayisi and found in possession of approximately 455 grams of 100% pure methamphetamine in his vehicle.
Dzabiev is the 10th defendant to plead guilty in the case. Alkayisi pleaded guilty in April 2024 and is scheduled to be sentenced on July 11, 2024.
The charge of conspiracy to distribute and to possess with intent to distribute methamphetamine provides for a sentence of up to life in prison, at least three years and up to a lifetime of supervised release and a fine of up to $10 million. 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 of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 members and associates sentenced for racketeering and narcotics conspiracies and four murdersRead the Press Release
ALEXANDRIA, Va. – The last defendant of the six La Mara Salvatrucha (MS-13) gang members who were convicted at two separate federal trials was sentenced today. The six defendants were sentenced for racketeering conspiracy, narcotics conspiracy, and offenses related to the murders of four men in 2019.
According to court documents and evidence presented in the two trials, the six defendants were members of MS-13’s Sitios Locos Salvatrucha clique (STLS), which operated in Northern Virginia and elsewhere for years. From at least 2017 through 2020, MS-13 members and associates regularly travelled to and from Long Island, New York, for the purpose of obtaining cocaine from Marvin Menjivar Gutierrez, STLS’s leader in the United States. From there, MS-13 members would transport the cocaine to the Washington, D.C., metropolitan area to be sold in nightclubs and bars. STLS used the proceeds of their cocaine sales to purchase more cocaine to sell, to buy weapons, and to support other MS-13 members in the United States and El Salvador.
“These defendants—members of the violent MS-13 gang—sold drugs to fuel the gang’s business, surveilled and tracked rival gang members, and even murdered innocent victims, all to increase the grip that MS-13 had on the community,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s sentencing, we are holding these defendants accountable for the havoc they wreaked. The Criminal Division, along with our federal and local law enforcement partners, is committed to combatting violent criminal organizations that victimize our communities.”
In the spring of 2019, Menjivar and Melvin Canales Saldana, STLS’s second-in-command in the United States, ordered members to begin committing murders so that the junior members could rise in rank within MS-13 and amplify STLS’s prestige and control. In June 2019, three MS-13 members, including Cristian Arevalo Arias and Carlos Turcios Villatoro, lured Victim 1 and Victim 2 to a wooded area and murdered them by shooting and stabbing the victims. The MS-13 members believed Victim 1 belonged to a rival gang, and then murdered Victim 2 to avoid leaving any witnesses to Victim 1’s murder.
“MS-13 represents a cycle of death in our society that cannot be tolerated and must be eradicated. MS-13 sells the poisons that destroy communities, families, and lives, and uses the profits to purchase the weapons they use to kill our people in the streets,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “This is why federal, state, and local law enforcement employ a coordinated, comprehensive, and strategic approach to systematically dismantle these organizations and end their ability to do harm.”
In August 2019, Canales ordered an MS-13 member to provide Arevalo with a firearm so that Arevalo, Manilester Andrade Rivas, and other MS-13 members could find and kill any rival gang member. Arevalo, Andrade, and others travelled to the Glen Arbor Apartments in Woodbridge, Virginia, in the hopes of encountering and murdering a rival. They encountered Victim 3, and Arevalo shot him to death.
In September 2019, Jairo Aguilera Sagastizado travelled to Woodbridge from New York and spent hours driving around Northern Virginia and Maryland with two other MS-13 members, looking for a rival gang member to murder at random so that they could rise in rank. Unable to find a rival, the group finally decided to murder Victim 4, whom they observed walking home from a 7-Eleven in Dumfries, Virginia. Aguilera and another MS-13 member shot Victim 4 multiple times, killing him.
“Today’s sentencing is another example of the FBI’s relentless commitment to bringing an end to violent transnational criminal enterprises like MS-13,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “If you engage in racketeering in the advancement of distributing narcotics, rest assured that we will not stop until you face the consequences of your actions.”
“Members of MS-13 spread fear and violence throughout the country—often through senseless murders—but their control is not limitless,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “As evidenced by this case, the FBI will pursue individuals or groups who traffic in violence. We vow to continue to work with our federal, state, and local partners to disrupt and dismantle transnational gangs that terrorize our neighborhoods.”
Multiple MS-13 members and associates pleaded guilty prior to trial. Below is additional information about the defendants, all of whom are Salvadoran nationals, who were convicted at trial and have been sentenced.
Name
Age
Residing in
Convictions
Sentence
Marvin Menjivar Gutierrez
32
New York
Racketeering conspiracy; murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; use of firearm in federal violent crime resulting in death
Multiple life sentences
Melvin Canales Saldana
32
New York
Racketeering conspiracy; murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; cocaine distribution
Multiple life sentences
Cristian Arevalo Arias
28
Virginia
Racketeering conspiracy; two counts of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; two counts of use of firearm in federal violent crime resulting in death; witness tampering by killing; cocaine distribution
Multiple life sentences
Carlos Turcios Villatoro
26
Maryland
Racketeering conspiracy; two counts of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; two counts of use of firearm in federal violent crime resulting in death; witness tampering by killing
Multiple life sentences
Jairo Aguilera Sagastizado
28
New York
Racketeering conspiracy; murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; use of firearm in federal violent crime resulting in death
Multiple life sentences
Manilester Andrade Rivas
34
Virginia
Racketeering conspiracy; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; cocaine distribution
14 years in prison
The FBI and Prince William County Police Department investigated the case, with significant assistance from the Loudoun County Sheriff’s Office, Prince William County Office of the Commonwealth’s Attorney, Northern Virginia Violent Gang Safe Streets Task Force, Northern Virginia Regional Gang Task Force, Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO), Drug Enforcement Administration, Bureau of Alcohol Tobacco, Firearms and Explosives, and U.S. Marshal Service.
Assistant U.S. Attorney John Blanchard and former Assistant U.S. Attorney Maureen Cain for the Eastern District of Virginia and Deputy Chief Matthew Hoff of the Criminal Division’s Violent Crime and Racketeering Section prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation City of Bridges. 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.
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. 1:21-cr-260.
MS-13 Members and Associates Sentenced for Racketeering and Narcotics Conspiracies and Four MurdersRead the Press Release
The last defendant of the six La Mara Salvatrucha (MS-13) gang members who were convicted at two separate federal trials was sentenced today. The six defendants were sentenced for racketeering conspiracy, narcotics conspiracy, and offenses related to the murders of four men in 2019.
According to court documents and evidence presented in the two trials, the six defendants were members of MS-13’s Sitios Locos Salvatrucha clique (STLS), which operated in Northern Virginia and elsewhere for years. From at least 2017 through 2020, MS-13 members and associates regularly travelled to and from Long Island, New York, for the purpose of obtaining cocaine from Marvin Menjivar Gutierrez, STLS’s leader in the United States. From there, MS-13 members would transport the cocaine to the Washington, D.C., metropolitan area to be sold in nightclubs and bars. STLS used the proceeds of their cocaine sales to purchase more cocaine to sell, buy weapons, and support other MS-13 members in the United States and El Salvador.
“These defendants—members of the violent MS-13 gang—sold drugs to fuel the gang’s business, surveilled and tracked rival gang members, and even murdered innocent victims, all to increase the grip that MS-13 had on the community,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s sentencing, we are holding these defendants accountable for the havoc they wreaked. The Criminal Division, along with our federal and local law enforcement partners, is committed to combating violent criminal organizations that victimize our communities.”
In the spring of 2019, Menjivar and Melvin Canales Saldana, STLS’s second-in-command in the United States, ordered members to begin committing murders so that the junior members could rise in rank within MS-13 and amplify STLS’s prestige and control. In June 2019, three MS-13 members, including Cristian Arevalo Arias and Carlos Turcios Villatoro, lured Victim 1 and Victim 2 to a wooded area and murdered them by shooting and stabbing the victims. The MS-13 members believed Victim 1 belonged to a rival gang, and then murdered Victim 2 to avoid leaving any witnesses to Victim 1’s murder.
“MS-13 represents a cycle of death in our society that cannot be tolerated and must be eradicated. MS-13 sells the poisons that destroy communities, families, and lives, and uses the profits to purchase the weapons they use to kill our people in the streets,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “This is why federal, state, and local law enforcement employ a coordinated, comprehensive, and strategic approach to systematically dismantle these organizations and end their ability to do harm.”
In August 2019, Canales ordered an MS-13 member to provide Arevalo with a firearm so that Arevalo, Manilester Andrade Rivas, and other MS-13 members could find and and kill any rival gang member. Arevalo, Andrade, and others travelled to the Glen Arbor Apartments in Woodbridge, Virginia, in the hopes of encountering and murdering a rival. They encountered Victim 3 and Arevalo shot him to death.
In September 2019, Jairo Aguilera Sagastizado travelled to Woodbridge from New York and spent hours driving around Northern Virginia and Maryland with two other MS-13 members, looking for a rival gang member to murder at random so that they could rise in rank. Unable to find a rival, the group finally decided to murder Victim 4, whom they observed walking home from a 7-Eleven in Dumfries, Virginia. Aguilera and another MS-13 member shot Victim 4 multiple times, killing him.
“Today’s sentencing is another example of the FBI’s relentless commitment to bringing an end to violent transnational criminal enterprises like MS-13,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “If you engage in racketeering in the advancement of distributing narcotics, rest assured that we will not stop until you face the consequences of your actions.”
“Members of MS-13 spread fear and violence throughout the country—often through senseless murders—but their control is not limitless,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “As evidenced by this case, the FBI will pursue individuals or groups who traffic in violence. We vow to continue to work with our federal, state, and local partners to disrupt and dismantle transnational gangs that terrorize our neighborhoods.”
Multiple MS-13 members and associates pleaded guilty prior to trial. Below is additional information about the defendants, all of whom are Salvadoran nationals, who were convicted at trial and have been sentenced.
Name
Age
Residing in
Convictions
Sentence
Marvin Menjivar Gutierrez
32
New York
Racketeering conspiracy; murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; use of firearm in federal violent crime resulting in death
Multiple life sentences
Melvin Canales Saldana
32
New York
Racketeering conspiracy; murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; cocaine distribution
Multiple life sentences
Cristian Arevalo Arias
28
Virginia
Racketeering conspiracy; two counts of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; two counts of use of firearm in federal violent crime resulting in death; witness tampering by killing; cocaine distribution
Multiple life sentences
Carlos Turcios Villatoro
26
Maryland
Racketeering conspiracy; two counts of murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; two counts of use of firearm in federal violent crime resulting in death; witness tampering by killing
Multiple life sentences
Jairo Aguilera Sagastizado
28
New York
Racketeering conspiracy; murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; use of firearm in federal violent crime resulting in death
Multiple life sentences
Manilester Andrade Rivas
34
Virginia
Racketeering conspiracy; conspiracy to commit murder in aid of racketeering; conspiracy to distribute cocaine; cocaine distribution
14 years in prison
The FBI and Prince William County Police Department investigated the case, with significant assistance from the Loudoun County Sheriff’s Office, Prince William County Office of the Commonwealth’s Attorney, Northern Virginia Violent Gang Safe Streets Task Force, Northern Virginia Regional Gang Task Force, Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO), Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Marshal Service.
Deputy Chief Matthew Hoff of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney John Blanchard and former Assistant U.S. Attorney Maureen Cain for the Eastern District of Virginia prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation City of Bridges. 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.
Lexington Man Sentenced for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Lexington, Ky., man, Daniel Matthews, 36, was sentenced on Monday, by U.S. District Judge Claria Horn Boom, to 228 months, for possession with intent to distribute controlled substances, including 400 grams of fentanyl and 50 grams or more of methamphetamine, and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, on August 1, 2023, Matthews intended to make a delivery of controlled substances to another dealer that he regularly supplied; but before the delivery could be made, law enforcement stopped his vehicle and seized $3,956 in cash, a large quantity of fentanyl pills (weighing approximately 177 grams), and a loaded pistol, which were in the back pocket of his seat. Thereafter, law enforcement executed a search warrant at the Matthews’s residence, where they located more than 15,000 fentanyl pills (approximately 1.5 kilograms of fentanyl) more than 50 grams of methamphetamine.
Under federal law, Matthews must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by ATF and KSP. Assistant U.S. Attorney Drew Trimble prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Leader of International Drug Trafficking Organization Operating in Lane County Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—The leader of an international drug trafficking organization operating in Lane County, Oregon, responsible for trafficking large quantities of methamphetamine, heroin, and cocaine into the state between 2018 and 2020, was sentenced to federal prison today.
Victor Diaz-Ramirez, 33, was sentenced to 135 months in federal prison and five years’ supervised release.
“While communities across our state continue to struggle with the ongoing drug crisis, there are criminal enterprises, like the Diaz-Ramirez drug trafficking organization, whose sole purpose is to profit from addiction and suffering. This far-reaching investigation demonstrates the deep commitment of all involved law enforcement agencies to combatting drug trafficking and keeping our communities safe,” said Nathan J. Lichvarcik, Chief of the U.S. Attorney’s Office Eugene and Medford Branch Offices.
“Drug traffickers like Mr. Diaz-Ramirez prey on our communities by peddling large amounts of methamphetamine, heroin, and cocaine, often to our most vulnerable,” said David F. Reames, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA) Seattle Field Division. “I am gratified that the hard work of DEA, the U.S. Attorney’s Office and our many partners from law enforcement agencies across Oregon led to the lengthy sentence Mr. Diaz-Ramirez received in this case. Justice was truly served.”
According to court documents, from at least March 2018 through August 2020, while operating out of Mexico, Diaz-Ramirez helped lead an international drug trafficking organization responsible for trafficking large quantities of methamphetamine, heroin, and cocaine from Mexico into the United States. Diaz-Ramirez’s organization used a network of associates to transport the drugs from Southern California to Oregon and deliver them to local distributors in exchange for cash.
As part of this investigation, law enforcement seized more than 178 pounds of methamphetamine, 12 pounds of heroin, six pounds of fentanyl, 18 rifles, three rifle optics, and ammunition. Investigators also forfeited approximately $1.2 million from the organization, including more than $400,000 in cash. In total, 35 people—including sources of supply in Mexico, couriers, local cell operators in Lane County, and first and second level distributors responsible for sales in and around Eugene—were charged and have been convicted for their roles in Diaz-Ramirez’s organization.
On August 5, 2020, a federal grand jury in Eugene returned an indictment charging Diaz-Ramirez with conspiracy to distribute methamphetamine. On November 1, 2023, Diaz-Ramirez pleaded guilty to a one-count superseding criminal information charging him with conspiracy to possess with intent to distribute methamphetamine.
This case was investigated by DEA, FBI, IRS-Criminal Investigation, U.S. Marshals Service, Springfield Police Department, Eugene Police Department, Lane County Sherriff’s Office, Oregon State Police, Linn Interagency Narcotics Enforcement Team (LINE), and Douglas Interagency Narcotics Enforcement Team (DINT). It was prosecuted by Joseph Huynh and Judi Harper, Assistant U.S. Attorneys for the District of Oregon.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
Las Vegas Man Sentenced to Prison for Bank FraudRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced Friday by United States District Judge James C. Mahan to 43 months in prison for using stolen debit and credit cards and checks to make fraudulent purchases at retail stores.
According to court documents, from January 2023 to March 8, 2023, Andy Phouphayry, devised and carried out a scheme to fraudulently obtain debit and credit cards and checks for the purposes of withdrawing cash or making fraudulent purchases at retail stores in Las Vegas. As part of the scheme, Phouphayry stole debit or credit cards or checks from the mail. He would fraudulently obtain pin numbers for the debit and credit cards. Furthermore, he would steal victims’ checks and alter them so that they could be deposited into other victims’ bank accounts. Phouphayry deposited a stolen check into a victim’s bank account, then he fraudulently used a debit card in the name of that victim to withdraw cash from the victim’s account.
On March 8, 2023, law enforcement executed a search warrant at Phouphayry’s hotel room. Law enforcement found stolen mail including checks totaling more than $150,000. As a result of this scheme, Phouphayry stole mail from more than 10 victims and he caused at least $20,256.02 in loss to the bank.
Phouphayry pleaded guilty to one count of bank fraud. In addition to imprisonment, Phouphayry was ordered to pay restitution in the amount of $22,473.12.
United States Attorney Jason M. Frierson for the District of Nevada made the announcement.
The United States Postal Service investigated the case. Assistant United States Attorney Edward Veronda prosecuted the case.
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Lansing Man Sentenced for Possessing A MachinegunRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Michael Andrew Thomas, 20, of Lansing, was sentenced to 46 months in prison for possessing a handgun that had been modified to a fully automatic firearm using a conversion device. A conversion device, also referred to as a “switch,” meets the federal definition of a “machinegun.”
“Gun violence inflicts senseless suffering and lasting trauma on our communities,” said U.S. Attorney Mark Totten. “The prevalence of machinegun conversion devices is an especially concerning trend. With the single pull of a trigger, these devices can spray 1,000 rounds a minute. Offenders beware: possess these devices and you face the very real prospect of federal prosecution.”
Thomas was arrested in January 2024 after law enforcement executed a search warrant at his residence and found a handgun with a conversion device attached. The gun also had an extended magazine loaded with 34 rounds of ammunition.
Thomas posted a photograph of himself with the handgun on social media prior to the search. At the time, Thomas was on state bond after being charged in a 2023 incident involving carjacking and assault with a dangerous weapon. Law enforcement previously arrested Thomas in September 2023 during a traffic stop in which Thomas possessed a stolen firearm that also had a conversion device attached. Law enforcement later obtained forensic evidence from Thomas’ cell phone indicating he trafficked conversion devices and firearms.
“Machine gun conversion devices are not firearm accessories but machineguns under federal law. A single-shot-function conversion of a weapon poses a severe threat to our community and public safety,” said ATF Detroit Field Division Special Agent in Charge James Deir. “Mr. Thomas deliberately chose to illegally possess and advertise in his possession an illegally modified firearm. In the end, I urge anyone in Michigan contemplating experimenting with a machine gun conversion device to think of Mr. Thomas who will be spending a considerable amount of time in prison for similar choices and/or behavior. These devices are a clear and present danger to public safety and will be investigated and prosecuted as such.”
Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have slightly declined since 2021, they remain high.
Resources and information on the safe storage of firearms can be found by reviewing the U.S. Department of Justice Safe Storage of Firearms guide, Centers for Disease Control and Prevention fact sheet, and the Bureau of Alcohol, Tobacco, Firearms and Explosives pamphlet. Anyone who possesses a gun must follow all local, state, and federal laws.
This case was prosecuted by Assistant United States Attorney LaToyia Carpenter and investigated by the Lansing Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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Justice Department Finds That Utah Violates Federal Civil Rights Law by Segregating People with DisabilitiesRead the Press Release
The Justice Department announced today its findings that Utah is violating the Americans with Disabilities Act (ADA) by unnecessarily segregating youth and adults with intellectual and developmental disabilities (I/DD) during the day, instead of helping them find work and spend their days in their communities.
The department found that the State relies on segregated settings, such as sheltered workshops and day facilities, where people with I/DD have limited interaction with people without disabilities and have little choice in how to spend their time. As a result, thousands of Utahns with I/DD spend their days separated from their communities. Other individuals with I/DD in the State, including youth with I/DD who are transitioning out of children’s services, are at serious risk of unnecessary segregation in these settings.
“Full inclusion in society is a central promise of the ADA,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People with intellectual and developmental disabilities are entitled to full inclusion, and to the dignity and purpose that comes with deciding where to work and how to spend their days.”
Utah’s sheltered workshops are often located in large, industrial warehouses. People with I/DD who work in sheltered workshops may spend all day at the warehouse, performing rote tasks — like shredding paper — often for less than minimum wage. In day facilities, people with I/DD may similarly spend all day at the facility with nothing much to do other than craft or watch TV.
The ADA and the U.S. Supreme Court’s decision in Olmstead v. L.C. require state and local governments to make their services for people with disabilities available in the most integrated setting appropriate to each person’s needs. In October 2023, the department issued guidance explaining how this federal requirement applies to publicly-funded employment and day services.
The Civil Rights Division’s Disability Rights Section investigated the case, with assistance from the U.S. Attorney’s Office for the District of Utah.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov/topics/community-integration/.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Finds State of Missouri Unnecessarily Institutionalizes Adults with Mental Health Disabilities in Skilled Nursing Facilities in Violation of the Americans with Disabilities Act and Improperly Relies on GuardianshipRead the Press Release
Remote video URL
The Justice Department announced today its findings that the State of Missouri violated Title II of the Americans with Disabilities Act (ADA) by unnecessarily institutionalizing adults with mental health disabilities in nursing facilities. The investigation also examined the role of guardianships in such institutionalization.The Justice Department determined that there is reasonable cause to believe Missouri violates the ADA by failing to provide the community-based services adults with mental health disabilities need in order to remain in their communities. It also found that the state is improperly relying on guardianship and that this leads to people entering nursing facilities even though community-based services are appropriate for their needs.
“People with mental health disabilities should not have to be confined to a nursing facility because they cannot access the community-based services they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will safeguard the rights of people with disabilities to participate fully in their communities. The state’s reliance on guardianships that serve as a pipeline to nursing facilities, rather than engaging people in community-based mental health services, has led to violations of the ADA.”
The department’s investigation found Missouri fails to provide community-based mental health services for many people with mental health disabilities who need them, including services such as:
- Assertive Community Treatment;
- Case management;
- Supported employment;
- Mobile crisis response;
- Crisis stabilization services;
- Permanent Supportive Housing;
- Peer support; and
- Supported Decision-Making.
Instead, the state makes nursing facility services for these people. Missouri can reasonably modify its system to remedy this violation by expanding community-based services and implementing processes to ensure that individuals can receive those services rather than entering nursing facilities.
Individuals with information relevant to this matter can contact the department by leaving a voicemail at 833-610-1242 or emailing [email protected]. The Justice Department will hold two virtual community meetings on Tuesday, June 25, at 6 p.m. CT/7 p.m. ET and Wednesday, June 26, at 12 p.m. CT/1 p.m. ET. Members of the public are encouraged to attend to learn more about the findings. Please register to join these meetings by clicking on the respective link. If you need an interpreter or accommodation to attend, please email [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt/rights-persons-disabilities and www.ada.gov.
View the findings report here.
View the notice letter here.
Justice Department Finds Alaska Discriminates Against Voters with DisabilitiesRead the Press Release
The Justice Department announced today its findings that Alaska violated Title II of the Americans with Disabilities Act (ADA) by failing to provide an accessible ballot for in-person voting, selecting inaccessible polling places for federal, state and local elections and maintaining an inaccessible elections website. The ADA requires that states’ voting services, programs and activities be accessible to individuals with disabilities.
“For too long, people with disabilities have been denied the fundamental rights and freedoms that citizens of our democracy possess, including the opportunity to fully participate in the voting process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is fully committed to enforcing the ADA to make sure that individuals with disabilities have an equal opportunity to vote, including by voting privately and independently like everyone else.”
“Voting is a fundamental right for all American citizens and ensuring they have full access to the election process is a hallmark of our democracy,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The U.S. Attorney’s Office will continue to collaborate with the Justice Department’s Civil Rights Division to work toward accessibility in voting for all Alaskans.”
The department opened its investigation in response to complaints from individuals with disabilities in Alaska alleging accessibility issues. Voters with disabilities reported that they could not vote privately and independently because accessible voting machines were unavailable or did not work, that they encountered inaccessible polling places and that they could not obtain key election information on the state’s election website. Following an investigation, in a public letter of findings issued to Alaska, the department detailed its findings and asked the state to resolve the identified civil rights violations. The findings include the state’s failure to provide functional accessible voting machines, to provide polling places without physical barriers, such as muddy parking lots or steps, that allow voters with disabilities to vote in person and to ensure the accessibility of its website where voters with disabilities can obtain election information, including voter registration forms, candidate statements and voting dates and polling place locations.
The Alaska investigation is part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities across the country. More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. If you believe you have been discriminated against based on disability, please submit a report online at www.civilrights.justice.gov.
Justice Department Files Statements of Interest in Two Voting Access LawsuitsRead the Press Release
The Justice Department today announced that it has filed statements of interest in federal courts in Ohio and Alabama to promote the correct and uniform interpretation of voting laws guarding the rights of voters with disabilities. The statements of interest are part of the Justice Department’s continuing nationwide efforts to ensure that the voting rights of all individuals, including people with disabilities, are protected.
“No voter should be denied access to the ballot based on a disability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The right to vote is fundamental to our democracy, and the Justice Department will take action to safeguard that right for all eligible voters, including those with disabilities who need assistance casting absentee ballots.”
Private plaintiffs brought lawsuits in Ohio (League of Women Voters of Ohio v. LaRose) and Alabama (Alabama State Conference of the NAACP v. Marshall) challenging state laws that restrict how voters with disabilities may receive assistance, or from whom they may receive assistance, in casting an absentee ballot. The Justice Department’s statements of interest confirm that Section 208 of the Voting Rights Act permits voters with disabilities who require assistance to receive that assistance from any person they choose, so long as that person is not an agent of the voter’s employer or union. Allowable assistance includes all action necessary to make their vote effective, including casting an absentee ballot. The department’s statement of interest in Ohio also affirms that Title II of the Americans with Disabilities Act (ADA) requires public entities provide equal opportunities to vote absentee and allows voters with disabilities to use an assistor of their choice as a reasonable modification.
“Every Ohio resident, disabled or not, has a fundamental right to vote. Ohio residents with disabilities should have the access and assistance they need to exercise that basic right of citizenship,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “The Americans with Disabilities Act ensures that individuals with disabilities are provided reasonable modifications to undertake their ability to vote. Our office will continue its work to secure the ADA’s protections for Ohio’s residents.”
“Every citizen has the right to vote without discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Prim Escalona for the Northern District of Alabama. “It is important that those who have specific information about voter discrimination make that information available to my office, the FBI or the Civil Rights Division. The Justice Department will always work tirelessly to protect the integrity of the election process.”
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. More information about the ADA and the Justice Department’s enforcement of the rights of people with disabilities is available at www.ada.gov. To learn more about the Civil Rights Division visit www.justice.gov/crt and to report possible violations of federal voting rights laws go to www.civilrights.justice.gov or call toll-free at 800-253-3931.
Justice Department Files Statements of Interest in Two Voting Access LawsuitsRead the Press Release
The Justice Department today announced that it has filed statements of interest in federal courts in Ohio and Alabama to promote the correct and uniform interpretation of voting laws guarding the rights of voters with disabilities. The statements of interest are part of the Justice Department’s continuing nationwide efforts to ensure that the voting rights of all individuals, including people with disabilities, are protected.
“No voter should be denied access to the ballot based on a disability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The right to vote is fundamental to our democracy, and the Justice Department will take action to safeguard that right for all eligible voters, including those with disabilities who need assistance casting absentee ballots.”
Private plaintiffs brought lawsuits in Ohio (League of Women Voters of Ohio v. LaRose) and Alabama (Alabama State Conference of the NAACP v. Marshall) challenging state laws that restrict how voters with disabilities may receive assistance, or from whom they may receive assistance, in casting an absentee ballot. The Justice Department’s statements of interest confirm that Section 208 of the Voting Rights Act permits voters with disabilities who require assistance to receive that assistance from any person they choose, so long as that person is not an agent of the voter’s employer or union. Allowable assistance includes all action necessary to make their vote effective, including casting an absentee ballot. The department’s statement of interest in Ohio also affirms that Title II of the Americans with Disabilities Act (ADA) requires public entities provide equal opportunities to vote absentee and allows voters with disabilities to use an assistor of their choice as a reasonable modification.
“Every Ohio resident, disabled or not, has a fundamental right to vote. Ohio residents with disabilities should have the access and assistance they need to exercise that basic right of citizenship,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “The Americans with Disabilities Act ensures that individuals with disabilities are provided reasonable modifications to undertake their ability to vote. Our office will continue its work to secure the ADA’s protections for Ohio’s residents.”
“Every citizen has the right to vote without discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Prim Escalona for the Northern District of Alabama. “It is important that those who have specific information about voter discrimination make that information available to my office, the FBI or the Civil Rights Division. The Justice Department will always work tirelessly to protect the integrity of the election process.”
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. More information about the ADA and the Justice Department’s enforcement of the rights of people with disabilities is available at www.ada.gov. To learn more about the Civil Rights Division visit www.justice.gov/crt and to report possible violations of federal voting rights laws go to www.civilrights.justice.gov or call toll-free at 800-253-3931.
Joplin Chiropractor Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., chiropractor was sentenced in federal court today for receiving and distributing child pornography.
Eric Hedman, 40, was sentenced by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole. The court also sentenced Hedman to 10 years of supervised release following incarceration.
Hedman will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
Hedman, who operated his own practice at Hedman Chiropractic at the time of the offense, pleaded guilty on Dec. 14, 2023, to receiving and distributing child pornography.
Hedman sent a video and a photo of child pornography to two other users of the Kik messenger in July and August 2022. Kik made two Cybertipline Reports to the National Center for Missing and Exploited Children, which forwarded the reports to the Southwest Missouri Cybercrimes Task Force for investigation.
Investigators searched Hedman’s multiple Kik accounts and discovered 31 files that contained child pornography. The images depicted children as young as two years old. Additionally, log files indicated that Hedman had transmitted child pornography to at least six other users on July 8 and 9, 2022.
On Dec. 6, 2022, law enforcement officers executed a search warrant at Hedman’s residence and seized his computer and cell phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force.
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."
Jacksonville Woman Sentenced to over 4 Years in Federal Prison for Conspiracy to Create and Distribute Animal Crush VideosRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy W. Berger today sentenced Nicole Danielle Devilbiss (35, Jacksonville) to four years and three months in federal prison for conspiracy to create and distribute animal crush videos. Devilbiss entered a guilty plea on February 13, 2024. She has been in custody since her arrest on October 31, 2023.
According to court documents, in September 2023, Homeland Security Investigations (HSI) received information regarding an individual residing in Jacksonville who was identified as an administrator of a messaging application group chat that was dedicated to the abuse, torture, and death of various-aged monkeys. The HSI investigation revealed that numerous people involved in the group exchanged hundreds, if not thousands, of messages about the abuse and torture of monkeys, as well as videos depicting the abuse and torture of monkeys. The purpose of the group was to fund, view, distribute, and promote animal crush videos that depicted, among other things, the torture, murder, and sexually sadistic mutilation of animals, specifically baby and adult monkeys. The co-conspirators agreed to create animal crush videos using videographers and animals in other countries, to include Indonesia, which would then be sent to the United States. The name of the group changed multiple times to innocuous names that were inconsistent with the goals and interests of the group, which appeared to be to avoid detection by law enforcement. This investigation led to the identification of Devilbiss as a member of that group. Law enforcement obtained some of those messages and videos that were exchanged involving Devilbiss, which detailed her interest in the abuse and torture of monkeys.
Devilbiss and her co-conspirators collectively funded the creation of animal crush videos using online payment applications. Co-conspirators outside the United States received this funding and used it create animal crush videos.
During the execution of a search warrant at Devilbiss’s residence, numerous electronic devices were seized. Law enforcement found numerous videos depicting the torture of monkeys on Devilbiss’s devices. Law enforcement also located a journal that detailed Devilbiss’s interest in obtaining a monkey locally to abuse to create additional content.
“This investigation uncovered an unsettling underworld dedicated to the torment, torture, and exploitation of innocent animals,” said Homeland Security Investigations (HSI) Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “Through our relentless pursuit of justice, alongside our Sheriffs with Clay County, Jacksonville, and St. Johns County, we have exposed a network of depraved people inflicting unspeakable cruelty on monkeys, who record their suffering and share it for profit and perverse pleasure.”
This case was investigated by the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Ashley Washington and Elisibeth Adams.
Jacksonville Beach Man Sentenced to 5 Years for Conspiracy to Distribute CocaineRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Diandre Murel (30, Jacksonville Beach) to five years in federal prison for conspiracy to distribute over 500 grams of cocaine. Murel entered a guilty plea on October 23, 2023.
According to court documents, Murel and another individual were investigated by the Drug Enforcement Administration (DEA) for distributing cocaine in the Jacksonville Beach area. During the course of the investigation, Murel went to Atlanta and purchased almost a kilogram of cocaine. Murel was stopped in Baker County on his way back from Atlanta. Deputies from the Baker County Sheriff’s Office searched the car and located the cocaine. DEA agents and officers from the Jacksonville Beach Police Department then executed a search warrant at a condo where Murel was renting a room. Law enforcement located additional cocaine, three firearms, and over 100 rounds of ammunition inside Murel’s room. Murel’s plea agreement includes a provision that he forfeit the firearms and ammunition seized by law enforcement.
This case was investigated by the DEA, the Florida Highway Patrol, the Jacksonville Beach Police Department, and the Baker County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Talbot.
Indian-National Pleads Guilty to Sexually Extorting Minors through Social MediaRead the Press Release
OKLAHOMA CITY – SAI KUMAR KURREMULA, 31, an Indian-national living in Edmond on an immigrant VISA, has pleaded guilty to sexual exploitation of three children and transportation of child pornography, announced U.S. Attorney Robert J. Troester.
On April 22, 2024, Kurremula was charged by Information with sexual exploitation of children and transportation of child pornography. According to an affidavit filed in support of a criminal complaint, in October 2023, the FBI began investigating an account on the social media messaging app, Snapchat, involving a user who was sexually exploiting minor girls. The Internet Protocol address used to create the account led federal authorities to Kurremula. Public documents allege Kurremula had sexually exploited multiple minors through Snapchat, often posing as a 13-15-year-old boy to gain the trust of his victims. When the victims refused his requests, Kurremula would manipulate, threaten, and extort his victims to produce even more child pornography.
On June 18, 2020, Kurremula pleaded guilty and admitted to sexually exploiting three minor victims and to knowingly transporting images of child pornography. Specifically, Kurremula admitted that, to ensure the minor victims complied, he: threatened Jane Doe #1 that he would drive to her house and show her parents sexually explicit images of her; threatened Jane Doe #2 that he would come to her house and shoot her family; and threatened Jane Doe #3 that he would publicly post sexually explicit images and videos of her.
At sentencing, Kurremula faces not less than 15 years in federal prison and up to 50 years in federal prison, a term of supervised release of not less than five years and up to life, and fines up to $250,000, special assessments of up to $55,100 on Count 1, and up to $40,100 on Count 2, as well as a restitution order to the victims.
This case is the result of an investigation by the FBI Oklahoma City Field Office. Assistant U.S. Attorney Elizabeth Joynes is prosecuting the case.
Reference is made to public filings for additional information.
Huntington Man Sentenced to Prison for Straw Purchase CrimeRead the Press Release
HUNTINGTON, W.Va. – Maximillian Keaton, 51, of Huntington, was sentenced today to two years in prison, to be followed by three years of supervised release, for aiding and abetting making false statements in acquisition of firearms.
According to court documents and statements made in court, on February 22, 2023, Keaton traveled with Daniel Lee Ferguson to a Barboursville business where Ferguson purchased for Keaton a Springfield Armory model Hellcat 9mm pistol. Keaton admitted that he asked Ferguson to buy the firearm for him because his prior felony conviction prohibits him from purchasing or possessing a firearm. Keaton further admitted that he showed Ferguson the firearm he wanted him to buy and provided Ferguson with the money for the purchase.
Ferguson falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the buyer of the firearm when Ferguson knew he was purchasing it for Keaton.
Keaton further admitted that Ferguson purchased two other firearms for him at Cabell County businesses, a Bersa model Thunder 380 .380-caliber pistol on August 14, 2019, and a Springfield Armory model Prodigy 9mm on February 25, 2023. Ferguson falsely certified on the ATF Form 4473 for each purchase that he was the buyer of the firearm when he knew he was purchasing it for Keaton.
Ferguson, 46, of Huntington, pleaded guilty on October 23, 2023, to making false statements in acquisition of firearms and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case.
This case was prosecuted under the criminal provisions of the Bipartisan Safer Communities Act (BSCA), which Congress enacted and the President signed in June 2022. BSCA is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-151.
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Huntington Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Melvin Pearson Jones, 40, of Huntington, was sentenced today to six months in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on August 3, 2023, Jones sold a quantity of fentanyl to a confidential informant at his Huntington apartment for $300. Jones admitted to the transaction, and to arranging it beforehand with the confidential informant. Jones further admitted to selling approximately 6.11 grams of heroin and fentanyl to the confidential informant in Huntington on August 9, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-1.
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Huntington Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Derick Russell Legg, 48, of Huntington, was sentenced today to six years in prison, to be followed by 15 years of supervised release, for receipt of child pornography. Legg must also register as a sex offender.
According to court documents and statements made in court, from on or about September 19, 2019, through on or about January 28, 2020, Legg used peer-to-peer file sharing programs to receive digital media files depicting minors engaged in sexually explicit conduct.
Legg further admitted that he possessed 668 images and 321 videos depicting minors engaged in sexually explicit conduct on an external hard drive in Huntington on or about January 30, 2020. Legg also admitted to possessing additional images and videos of child pornography on his cell phone.
Many of the images and videos possessed by Legg depict known child victims, prepubescent minors and minors subjected to sadistic or masochistic conduct.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Andrew J. Tessman and Julie M. White prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-40.
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Guatemalan Man Sentenced for Immigration Related MattersRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Guatemalan man convicted of Illegal Reentry after Deportation; Trafficking with Respect to Peonage, Slavery, Involuntary Servitude or Forced Labor; Harboring Aliens; Extortion; and Possession of Firearm by Prohibited Person. The sentencing took place on June 17, 2024, in Sioux Falls, South Dakota.
William Waldemar Godoy, age 32, was sentenced to seven years and three months in federal prison, followed by three years of supervised release. He was ordered to pay restitution of $2, 810, as well as $700 as a statutorily required special assessment to the Federal Crime Victims Fund, and was also ordered to forfeit $8,750.
Godoy was initially indicted by a federal grand jury in August of 2022, but a superseding indictment was filed in March of 2024. He was convicted of Illegal Reentry after Deportation; Trafficking with Respect to Peonage, Slavery, Involuntary Servitude or Forced Labor; Harboring Aliens; Extortion; and Possession of Firearm by Prohibited Person after a jury trial on April 4, 2024.
The evidence at trial showed Godoy was bringing individuals into the United States illegally to work and then threatening them with physical or financial harm if they did not pay him for the smuggling fee and high interest rates. He was also convicted of illegally re-entering the United States himself after previously being deported. Evidence also showed he possessed firearms belonging to another individual despite being prohibited from doing so because he was unlawfully in the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Connie Larson prosecuted the case.
Godoy was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Fort Myers Felon Sentenced to More Than 3 Years for Unlawfully Possessing Loaded FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Ernest Jeshad Foster (32, Fort Myers) to 3 years and 10 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Foster to forfeit the firearm and ammunition possessed during the offense. Foster entered a guilty plea on February 28, 2024.
According to court records, on August 23, 2023, officers from the Fort Myers Police Department conducted a routine traffic stop on a vehicle in which Foster was the front seat passenger. Upon approaching the vehicle, law enforcement observed Foster reaching into the glove compartment and quickly shutting it. As soon as Foster exited the car, the glove compartment popped open and officers saw a firearm, which was later identified as loaded Taurus handgun. As a seven-time convicted felon, Foster is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon Eth.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Fort Myers Felon Sentenced to Federal Prison for Unlawfully Possessing Loaded FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Coroy Dontavia Flournoy (40, Fort Myers) to three years and five months in federal prison for possessing a firearm as a convicted felon. The court also ordered Flournoy to forfeit the firearm and ammunition he possessed during the offense. Flournoy entered a guilty plea on February 28, 2024.
According to court records, on February 21, 2023, Flournoy was arrested at a home in Fort Myers in connection with an active warrant, after which law enforcement searched the residence and found a loaded Glock handgun, multiple magazines, and several dozen rounds of ammunition under the mattress of a bed inside the house. DNA analysis performed by the Florida Department of Law Enforcement later linked the firearm to Flournoy, a multi-time convicted felon who is prohibited from possessing firearms or ammunition under federal law. At the time of the conduct charged in this case, Flournoy was on Florida state probation for a firearm-related offense.
This case was investigated by the Cape Coral Police Department, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon Eth.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Fort Hall Woman Sentenced to Federal Prison for Causing the Death of Her 7-Week-Old Baby by Methamphetamine ExposureRead the Press Release
POCATELLO – Keisha Cody, 27, of Fort Hall, was sentenced to five years in federal prison for felony injury to a child, following the death of her seven-week-old baby boy on December 10, 2019, at Fort Hall, U.S. Attorney Josh Hurwit announced today.
According to court records, Cody admitted to recklessly causing the health of her child to be injured by willfully exposing the child to methamphetamine and causing the child to become malnourished, which resulted in the child’s death. On December 10, 2019, Fort Hall Police and an ambulance were called to Cody’s residence on the Fort Hall Reservation of the Shoshone‑Bannock Tribes because of a report of a child who was not breathing. A person staying at the residence that night told police that she woke up about 9:00 am and Cody was crying, stating that her baby would not wake up. Emergency medical personnel performed life-saving measures on the child, but the seven-week-old boy was later declared dead.
An autopsy concluded that the cause of death was malnutrition, and that the child had a significant level of methamphetamine in his blood, which contributed to his malnutrition and death. Cody admitted in an interview with the FBI that she used methamphetamine around the child and otherwise exposed the child to methamphetamine.
“This case painfully demonstrates the deadly consequences of substance abuse and drug addiction,” said U.S. Attorney Hurwit. “We stand with the Shoshone-Bannock Tribes, as well as the law enforcement officers and emergency personnel who responded to this tragedy, in mourning this loss of life.”
“The loss of her innocent newborn is something this mother will now have to live with for the rest of her life,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “This case shows the unintended and devastating consequences of drug addiction. The FBI and our partners are continuously working to combat this problem which has resulted in so much pain and destruction in our communities.”
Chief U.S. District Judge David C. Nye ordered that the five-year prison sentence be followed by three years of supervised release. Cody pleaded guilty to the charge on December 21, 2023.
U.S. Attorney Josh Hurwit commended the cooperative efforts of the FBI, the Fort Hall Police Department, the Bannock County Coroner’s Office, CARES at St. Luke’s in Twin Falls, and the Ada County Coroner’s Office. Assistant U.S. Attorney Jack Haycock prosecuted the case.
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Former University IT Director Admits $2.1 Million FraudRead the Press Release
ST. LOUIS – The former IT director of a St. Louis-area university on Tuesday admitted defrauding both his employer and an IT equipment supplier in a $2.1 million fraud scheme.
Ronald Simpson, 54, of St. Peters, Missouri, pleaded guilty in U.S. District Court in St. Louis to one felony count of wire fraud.
As director of information technology for the university, Simpson was responsible for repairing and replacing defective IT equipment used at his employer’s multiple locations. Beginning about Nov. 29, 2018, Simpson devised a scheme to enrich himself at the expense of the University and their equipment supplier. After receiving approval to purchase hundreds of items of IT equipment by falsely claiming the equipment would be used or installed at university locations, Simpson sold that equipment to a third-party. Simpson misappropriated at least a million dollars from the university with this part of the scheme.
He also fraudulently obtained 56 items from the university’s IT supplier by falsely claiming that the equipment they originally had supplied was defective. Simpson then sold both the original equipment and the replacement gear. The supplier sent a total of $780,233 worth of replacement IT equipment to the university based on Simpson’s misrepresentations.
Simpson was paid a total of $2,188,704 for IT equipment belonging to the university and its supplier.
Simpson is scheduled to be sentenced September 17. The wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine, or both prison and a fine.
The FBI investigated the case. Both Simpson’s former employer and the IT supplier worked extensively with law enforcement during this investigation. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Former Naples Airport Customs Officer Pleads Guilty to Stealing Cash from Airline PassengersRead the Press Release
Fort Myers, FL –United States Attorney Roger B. Handberg announces that William Joseph Timothy (43, Ave Maria), a former Naples Airport U.S. Customs and Border Protection (CBP) Officer, today pleaded guilty to stealing cash from arriving international airline passengers during the course of his official duties. Timothy faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between mid-2023 and early-2024, Timothy stole approximately $18,700 in cash from airline passengers during 17 incidents of theft uncovered by CBP’s Office of Professional Responsibility investigators. Evidence collected during the investigation showed that Timothy was surreptitiously stealing cash from arriving international passengers during border enforcement examinations and currency verifications performed as part of his official duties as an assigned CBP Officer at Naples Airport.
As part of his plea agreement, Timothy has agreed to pay full restitution to the victims of his thefts, and he has further agreed to immediately resign from his employment with CBP.
This case was investigated by U.S. Customs and Protection’s Office of Professional Responsibility. It is being prosecuted by Assistant United States Attorney Simon R. Eth.
Former Corrections Officer Sentenced to Probation for Attempting to Smuggle Narcotics into PrisonRead the Press Release
BOSTON – A former Corrections Officer was sentenced to probation yesterday in federal court in Boston for his role in a large-scale drug trafficking conspiracy involving cocaine, fentanyl and other controlled substances.
Gregorit Sanchez, 29, of Haverhill was sentenced by U.S. District Court Judge Angel Kelley to five years’ probation with the first year to be served on home detention. The court determined that Sanchez’s Guidelines Sentencing Range under the U.S. Sentencing Guidelines was 30-37 months in prison. The government recommended a sentence of 30 months in prison to be followed by three years of supervised release. In March 2024, Sanchez pleaded guilty to one count each of conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine and other controlled substances and possession with intent to distribute fentanyl, cocaine and other controlled substances. In December 2021, Sanchez was charged along with 20 other individuals.
Sanchez was a Corrections Officer with the Middleton House of Correction in Middleton, Mass. On Nov. 11, 2021, Sanchez attempted to smuggle a package containing fentanyl, cocaine, Suboxone and other contraband into the Middleton House of Correction for co-defendant Elvis DeJesus, who was being held in the Middleton House of Correction after his arrest on state firearms charges. DeJesus intended to distribute the drugs inside the jail. Sanchez was stopped as he arrived to work at the jail and the package was seized. The package contained 33 grams of fentanyl pills, 1 gram of crack cocaine, 14 grams of powder cocaine, and Suboxone sublingual films, as well as cigarettes and a SIM card for a contraband cellphone that Sanchez had previously procured for DeJesus and that DeJesus used to coordinate drug distribution from inside the jail.
DeJesus pleaded guilty in June 2024 and is scheduled to be sentenced on Oct. 15, 2024.
The charges of conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine and other controlled substances, and possession with intent to distribute fentanyl, cocaine, and other controlled substances provide for a sentence of up to 20 years in prison and at least three years and up to a lifetime of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Office made the announcement. Special assistance was provided by the Lawrence Police Department; U.S. Postal Inspection Service; Massachusetts State Police; Federal Bureau of Investigation; and Essex County Sheriff’s Office. Assistant U.S. Attorney Katherine Ferguson, Deputy Chief of the Narcotics & Money Laundering Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Former Colorado Resident Sentenced to Life in Prison for Federal Hate Crimes and Firearm Offenses Related to Mass Shooting at Club QRead the Press Release
DENVER – Anderson Lee Aldrich, 24, formerly of Colorado Springs, Colorado, was sentenced to 55 concurrent life sentences to run consecutive to 190 years in prison after pleading guilty to 74 hate crimes and firearms charges related to the Nov. 19, 2022, mass shooting at Club Q, an LGBTQIA+ establishment in Colorado Springs.
According to the plea agreement, Aldrich admitted to murdering five people, injuring 19, and attempting to murder 26 more in a willful, deliberate, malicious, and premediated attack at Club Q. According to the plea, Aldrich entered Club Q armed with a loaded, privately manufactured assault weapon and began firing. Aldrich continued firing until subdued by patrons of the Club. As part of the plea, Aldrich admitted that this attack was in part motivated because of the actual or perceived sexual orientation and gender identity of any person.
“Fueled by hate, the defendant targeted members of the LGBTQIA+ community at a place that represented belonging, safety, and acceptance – stealing five people from their loved ones, injuring 19 others, and striking fear across the country,” said Attorney General Merrick B. Garland. “Today’s sentencing makes clear that the Justice Department is committed to protecting the right of every person in this country to live free from the fear that they will be targeted by hate-fueled violence or discrimination based on who they are or who they love. I am grateful to every agent, prosecutor, and staff member across the Department – from the U.S. Attorney’s Office for the District of Colorado, to the Civil Rights Division, the ATF, and FBI – for their work on this case. The Justice Department will never stop working to defend the safety and civil rights of all people in our country.”
“The 2022 mass shooting at Club Q is one of the most violent crimes against the LGBTQIA+ community in history,” said FBI Director Christopher Wray. “The FBI and our partners have worked tirelessly towards this sentencing, but the true heroes are the patrons of the Club who selflessly acted to subdue the defendant. This Pride Month and every month, the FBI stands with the survivors, victims, and families of homophobic violence and hate.”
“The defendant’s mass shooting and heinous targeting of Club Q is one of the most devastating assaults on the LGBTQIA+ community in our nation’s history. This sentence cannot reclaim the lives lost or undo the harms inflicted. But we hope that it provides the survivors, the victims’ families, and their communities a small measure of justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our message today should be loud and clear. No one should have to fear for their life or their safety because of their gender identity or sexual orientation. The Department of Justice will vigorously investigate and prosecute those who perpetrate hate-fueled, bias-driven attacks.”
“Hate has no place in our country and no place in Colorado” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “I hope that today’s sentence demonstrates to the victims and those connected to this horrific event that we do not tolerate these heinous acts of violence.”
“ATF will not rest until perpetrators like this defendant are prosecuted to the fullest extent of the law,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “I hope today’s life sentence brings at least some peace to the victims and survivors of this senseless, horrific tragedy. That this sentence should come during Pride month reinforces how far we have left to go before all communities, including all LGBTQIA+ communities, are safe here. It also shows how far ATF and all our partners will go to ensure hatred does not win.”
The FBI Denver Field Office, Colorado Springs Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Alison Connaughty and Bryan Fields for the District of Colorado and Trial Attorney Maura White of the Justice Department’s Civil Rights Division prosecuted the case.
Former Colorado Resident Sentenced to Life in Prison for Federal Hate Crimes and Firearm Offenses Related to Mass Shooting at Club QRead the Press Release
Anderson Lee Aldrich, 24, formerly of Colorado Springs, Colorado, was sentenced to 55 concurrent life sentences to run consecutive to 190 years in prison after pleading guilty to 74 hate crimes and firearms charges related to the Nov. 19, 2022, mass shooting at Club Q, an LGBTQIA+ establishment in Colorado Springs.
According to the plea agreement, Aldrich admitted to murdering five people, injuring 19, and attempting to murder 26 more in a willful, deliberate, malicious, and premediated attack at Club Q. According to the plea, Aldrich entered Club Q armed with a loaded, privately manufactured assault weapon and began firing. Aldrich continued firing until subdued by patrons of the Club. As part of the plea, Aldrich admitted that this attack was in part motivated because of the actual or perceived sexual orientation and gender identity of any person.
“Fueled by hate, the defendant targeted members of the LGBTQIA+ community at a place that represented belonging, safety, and acceptance – stealing five people from their loved ones, injuring 19 others, and striking fear across the country,” said Attorney General Merrick B. Garland. “Today’s sentencing makes clear that the Justice Department is committed to protecting the right of every person in this country to live free from the fear that they will be targeted by hate-fueled violence or discrimination based on who they are or who they love. I am grateful to every agent, prosecutor, and staff member across the Department – from the U.S. Attorney’s Office for the District of Colorado, to the Civil Rights Division, the ATF, and FBI – for their work on this case. The Justice Department will never stop working to defend the safety and civil rights of all people in our country.”
“The 2022 mass shooting at Club Q is one of the most violent crimes against the LGBTQIA+ community in history,” said FBI Director Christopher Wray. “The FBI and our partners have worked tirelessly towards this sentencing, but the true heroes are the patrons of the Club who selflessly acted to subdue the defendant. This Pride Month and every month, the FBI stands with the survivors, victims, and families of homophobic violence and hate.”
“ATF will not rest until perpetrators like this defendant are prosecuted to the fullest extent of the law,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “I hope today’s life sentence brings at least some peace to the victims and survivors of this senseless, horrific tragedy. That this sentence should come during Pride month reinforces how far we have left to go before all communities, including all LGBTQIA+ communities, are safe here. It also shows how far ATF and all our partners will go to ensure hatred does not win.”
“The defendant’s mass shooting and heinous targeting of Club Q is one of the most devastating assaults on the LGBTQIA+ community in our nation’s history. This sentence cannot reclaim the lives lost or undo the harms inflicted. But we hope that it provides the survivors, the victims’ families, and their communities a small measure of justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our message today should be loud and clear. No one should have to fear for their life or their safety because of their gender identity or sexual orientation. The Justice Department will vigorously investigate and prosecute those who perpetrate hate-fueled, bias-driven attacks.”
“Hate has no place in our country and no place in Colorado” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “I hope that today’s sentence demonstrates to the victims and those connected to this horrific event that we do not tolerate these heinous acts of violence.”
The FBI Denver Field Office, Colorado Springs Police Department, and ATF investigated the case.
Assistant U.S. Attorneys Alison Connaughty and Bryan Fields for the District of Colorado and Trial Attorney Maura White of the Justice Department’s Civil Rights Division prosecuted the case.
Flandreau Man Sentenced for Distribution of a Controlled Substance Resulting in Serious Bodily InjuryRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Flandreau, South Dakota, man convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury. The sentencing took place on June 17, 2024.
Jeremy James Simon, age 27, was sentenced to 20 years in federal prison, followed by four years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Simon was indicted by a federal grand jury in April of 2022. He pleaded guilty on March 27, 2024.
The conviction stemmed from an incident on September 23, 2021, when Simon intentionally distributed fentanyl to a third party who smoked the fentanyl and died. Fentanyl is a Schedule II controlled substance. Simon is the second person to be sentenced for the death. Rundial Biliu of Sioux Falls, South Dakota, sold the pills to Simon that he ultimately gave to the victim. Biliu was sentenced to 20 years in federal prison in April of 2023.
This case was investigated by the FBI and the Flandreau Santee Tribal Police. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Simon was immediately remanded to the custody of the U.S. Marshals Service.
Federal Indictment Alleges Alliance Between Sinaloa Cartel and Money Launderers Linked to Chinese Underground BankingRead the Press Release
LOS ANGELES – The Justice Department today announced a 10-count superseding indictment charging Los Angeles-based associates of Mexico’s Sinaloa drug cartel with conspiring with money-laundering groups linked to Chinese underground banking to launder drug trafficking proceeds. During the conspiracy, more than $50 million in drug proceeds flowed between the Sinaloa Cartel associates and Chinese underground money exchanges.
Following close coordination with the Justice Department, Chinese and Mexican law enforcement informed United States authorities that those countries recently arrested fugitives named in the superseding indictment who fled the United States after they were initially charged last year.
The multi-year investigation into this conspiracy—dubbed “Operation Fortune Runner”—resulted in a superseding indictment returned on April 4 and unsealed on Monday charging a total of 24 defendants with one count of conspiracy to aid and abet the distribution of cocaine and methamphetamine, one count of conspiracy to launder monetary instruments, and one count of conspiracy to operate an unlicensed money transmitting business.
The superseding indictment alleges that a Sinaloa Cartel-linked money laundering network collected and, with help from a San Gabriel Valley-based money transmitting group with links to Chinese underground banking, processed large amounts of drug proceeds in U.S. currency in the Los Angeles area. They then allegedly concealed their drug trafficking proceeds and made the proceeds generated in the United States accessible to cartel members in Mexico and elsewhere.
Lead defendant Edgar Joel Martinez-Reyes, 45, of East Los Angeles, and others allegedly used a variety of methods to hide the money’s source, including trade-based money laundering, “structuring” assets to avoid federal financial reporting requirements, and the purchase of cryptocurrency.
Twenty of the individuals charged in the superseding indictment are expected to be arraigned in the U.S. District Court in downtown Los Angeles in the coming weeks, including one who was arraigned on Monday.
“Dangerous drugs like fentanyl and methamphetamine are destroying people’s lives but drug traffickers only care about their profits,” said United States Attorney Martin Estrada. “To protect our community, therefore, it is essential that we go after the sophisticated, international criminal syndicates that launder the drug money. As this indictment and our international actions show, we will be dogged in our pursuit of all those who facilitate destruction in our country and make sure they are held accountable for their actions.”
“Relentless greed, the pursuit of money, is what drives the Mexican drug cartels that are responsible for the worst drug crisis in American history,” said DEA Administrator Anne Milgram. “This DEA investigation uncovered a partnership between Sinaloa Cartel associates and a Chinese criminal syndicate operating in Los Angeles and China to launder drug money. Laundering drug money gives the Sinaloa Cartel the means to produce and import their deadly poison into the United States. DEA’s top operational priority is to save American lives by defeating the cartels and those that support their operations. This investigation is the latest example, and there is more to come.”
“Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand in hand with drug traffickers to try to legitimize profits generated by drug activities,” said Chief Guy Ficco of IRS Criminal Investigation. “We have made it a priority to identify, disrupt, and dismantle any money launderers working with drug cartels and we are committed to our partnerships with federal, state, and local law enforcement agencies to combat drug cartels and those who assist them in laundering drug proceeds.”
As part of this investigation, law enforcement has seized approximately $5 million in narcotics proceeds, 302 pounds of cocaine, 92 pounds of methamphetamine, 3,000 Ecstasy pills, 44 pounds of psilocybin (magic mushrooms), numerous ounces of ketamine, three semi-automatic rifles with high-capacity magazines, and eight semi-automatic handguns.
Background
The Sinaloa Cartel is largely responsible for the massive influx of fentanyl into the United States over the past approximately eight years, and for the accompanying violence and deaths that have afflicted communities on both sides of the border. The cartel’s activities generate enormous sums of U.S. currency in the United States that belong to the cartel in Mexico. Profits from the drug trade must be repatriated to Mexico for use by the cartel.
Chinese underground money exchanges in the United States assist the Sinaloa and other cartels to move their profits from the United States to Mexico by providing a ready market for U.S. currency in the United States.
Many wealthy Chinese nationals who live, work, or invest in China wish to transfer assets to the United States for various reasons but are barred by the Chinese government’s capital flight restrictions from transferring the equivalent of more than $50,000 per year out of China. These individuals seek informal alternatives to the conventional banking system to move their funds.
To transfer money to the United States, the China-based investor contacts an individual who has U.S. dollars available to sell in the United States. The seller of U.S. dollars provides identifying information for a bank account in China with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of U.S. dollars is released to the buyer in the United States.
The sellers of U.S. currency in the United States obtain dollars in a variety of ways. Some of them accept cash from individuals engaged in criminal activity that generates large amounts of bulk currency, including drug trafficking. These U.S. currency brokers charge a percentage commission as a fee to the owner of the criminal proceeds to conceal the nature and source of the funds—typically far less for their services than their competitors. Drug traffickers increasingly have partnered with Chinese underground money exchanges to take advantage of the large demand for U.S. dollars from Chinese nationals.
The funds that are transferred in China are then used to pay for goods purchased by businesses and organizations in Mexico or elsewhere such as consumer goods or items needed to aid the drug trafficking organization to manufacture illegal drugs, such as precursor chemicals, including fentanyl.
The Superseding Indictment
According to the superseding indictment, from October 2019 to October 2023, members and operatives of the Sinaloa Cartel imported large quantities of narcotics, including fentanyl, cocaine, and methamphetamine, into the United States, generating huge sums of drug cash proceeds in U.S. dollars.
In January 2021, Martinez-Reyes allegedly traveled to Mexico to meet with Sinaloa Cartel members to strike a deal with money remitters with links to Chinse underground banking to launder drug trafficking proceeds in the United States. After the deal was struck, the Sinaloa Cartel—through their connections and associates—distributed cocaine, methamphetamine, and other narcotics, generating U.S. dollars as drug proceeds.
Martinez-Reyes and other conspirators allegedly then delivered the currency—frequently in amounts of hundreds of thousands of U.S. dollars in cash—to other members of the Chinese underground money exchange and remitting organizations to be laundered for a fee. The remitting organizations possessed large amounts of U.S. currency and could help wealthy Chinese nationals evade China’s currency controls.
The money remitters allegedly disposed of the drug proceeds by either delivering United States currency directly to their money exchange customers or by purchasing real or personal property, including luxury goods and cars to be shipped to China. Additionally, the remitters also moved illicit drug proceeds through cryptocurrency transactions. They also allegedly used a variety of traditional methods to place the funds into the traditional banking system such as purchasing cashier’s checks, or “structuring,” that is, depositing small amounts at a time into bank accounts opened for this purpose to avoid banks from reporting large cash deposits to the U.S. government.
The remaining seven counts charge individual defendants with crimes such as possession of pound quantities of cocaine and methamphetamine, structuring funds to avoid federal reporting requirements placed on banks, and one count of assault with a deadly weapon on a federal officer.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, each defendant faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison.
The DEA, IRS Criminal Investigation, South Gate Police Department, Downey Police Department, Glendora Police Department, Fullerton Police Department, and El Monte Police Department are investigating the case, with valuable assistance from the FBI and the United States Marshals Service.
Assistant U.S. Attorney Julie J. Shemitz for the Central District of California is prosecuting the case. The Justice Department’s Office of International Affairs and Criminal Division’s Narcotic and Dangerous Drug Section’s Special Operations Unit assisted with the investigation and overseas coordination in the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Federal Indictment Alleges Alliance Between Sinaloa Cartel and Money Launderers Linked to Chinese Underground BankingRead the Press Release
The Justice Department today announced a 10-count superseding indictment charging Los Angeles-based associates of Mexico’s Sinaloa drug cartel with conspiring with money-laundering groups linked to Chinese underground banking to launder drug trafficking proceeds. During the conspiracy, more than $50 million in drug proceeds flowed between the Sinaloa Cartel associates and Chinese underground money exchanges.
Following close coordination with the Justice Department, Chinese and Mexican law enforcement informed United States authorities that those countries recently arrested fugitives named in the superseding indictment who fled the United States after they were initially charged last year.
The multi-year investigation into this conspiracy—dubbed “Operation Fortune Runner”—resulted in a superseding indictment returned on April 4 and unsealed on Monday charging a total of 24 defendants with one count of conspiracy to aid and abet the distribution of cocaine and methamphetamine, one count of conspiracy to launder monetary instruments, and one count of conspiracy to operate an unlicensed money transmitting business.
The superseding indictment alleges that a Sinaloa Cartel-linked money laundering network collected and, with help from a San Gabriel Valley, California-based money transmitting group with links to Chinese underground banking, processed large amounts of drug proceeds in U.S. currency in the Los Angeles area. They then allegedly concealed their drug trafficking proceeds and made the proceeds generated in the United States accessible to cartel members in Mexico and elsewhere.
Lead defendant Edgar Joel Martinez-Reyes, 45, of East Los Angeles, and others allegedly used a variety of methods to hide the money’s source, including trade-based money laundering, “structuring” assets to avoid federal financial reporting requirements, and the purchase of cryptocurrency.
Twenty of the individuals charged in the superseding indictment are expected to be arraigned in the U.S. District Court in downtown Los Angeles in the coming weeks, including one who was arraigned on Monday.
“Dangerous drugs like fentanyl and methamphetamine are destroying people’s lives but drug traffickers only care about their profits,” said U.S. Attorney Martin Estrada for the Central District of California. “To protect our community, therefore, it is essential that we go after the sophisticated, international criminal syndicates that launder the drug money. As this indictment and our international actions show, we will be dogged in our pursuit of all those who facilitate destruction in our country and make sure they are held accountable for their actions.”
“Relentless greed, the pursuit of money, is what drives the Mexican drug cartels that are responsible for the worst drug crisis in American history,” said DEA Administrator Anne Milgram. “This DEA investigation uncovered a partnership between Sinaloa Cartel associates and a Chinese criminal syndicate operating in Los Angeles and China to launder drug money. Laundering drug money gives the Sinaloa Cartel the means to produce and import their deadly poison into the United States. DEA’s top operational priority is to save American lives by defeating the cartels and those that support their operations. This investigation is the latest example, and there is more to come.”
“Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand in hand with drug traffickers to try to legitimize profits generated by drug activities,” said Chief Guy Ficco of IRS Criminal Investigation. “We have made it a priority to identify, disrupt, and dismantle any money launderers working with drug cartels and we are committed to our partnerships with federal, state, and local law enforcement agencies to combat drug cartels and those who assist them in laundering drug proceeds.”
As part of this investigation, law enforcement has seized approximately $5 million in narcotics proceeds, 302 pounds of cocaine, 92 pounds of methamphetamine, 3,000 Ecstasy pills, 44 pounds of psilocybin (magic mushrooms), numerous ounces of ketamine, three semi-automatic rifles with high-capacity magazines, and eight semi-automatic handguns.
Background
The Sinaloa Cartel is largely responsible for the massive influx of fentanyl into the United States over the past approximately eight years, and for the accompanying violence and deaths that have afflicted communities on both sides of the border. The cartel’s activities generate enormous sums of U.S. currency in the United States that belong to the cartel in Mexico. Profits from the drug trade must be repatriated to Mexico for use by the cartel.
Chinese underground money exchanges in the United States assist the Sinaloa and other cartels to move their profits from the United States to Mexico by providing a ready market for U.S. currency in the United States.
Many wealthy Chinese nationals who live, work, or invest in China wish to transfer assets to the United States for various reasons but are barred by the Chinese government’s capital flight restrictions from transferring the equivalent of more than $50,000 per year out of China. These individuals seek informal alternatives to the conventional banking system to move their funds.
To transfer money to the United States, the China-based investor contacts an individual who has U.S. dollars available to sell in the United States. The seller of U.S. dollars provides identifying information for a bank account in China with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of U.S. dollars is released to the buyer in the United States.
The sellers of U.S. currency in the United States obtain dollars in a variety of ways. Some of them accept cash from individuals engaged in criminal activity that generates large amounts of bulk currency, including drug trafficking. These U.S. currency brokers charge a percentage commission as a fee to the owner of the criminal proceeds to conceal the nature and source of the funds—typically far less for their services than their competitors. Drug traffickers increasingly have partnered with Chinese underground money exchanges to take advantage of the large demand for U.S. dollars from Chinese nationals.
The funds that are transferred in China are then used to pay for goods purchased by businesses and organizations in Mexico or elsewhere such as consumer goods or items needed to aid the drug trafficking organization to manufacture illegal drugs, such as precursor chemicals, including fentanyl.
The Superseding Indictment
According to the superseding indictment, from October 2019 to October 2023, members and operatives of the Sinaloa Cartel imported large quantities of narcotics, including fentanyl, cocaine, and methamphetamine, into the United States, generating huge sums of drug cash proceeds in U.S. dollars.
In January 2021, Martinez-Reyes allegedly traveled to Mexico to meet with Sinaloa Cartel members to strike a deal with money remitters with links to Chinse underground banking to launder drug trafficking proceeds in the United States. After the deal was struck, the Sinaloa Cartel—through their connections and associates—distributed cocaine, methamphetamine, and other narcotics, generating U.S. dollars as drug proceeds.
Martinez-Reyes and other conspirators allegedly then delivered the currency—frequently in amounts of hundreds of thousands of U.S. dollars in cash—to other members of the Chinese underground money exchange and remitting organizations to be laundered for a fee. The remitting organizations possessed large amounts of U.S. currency and could help wealthy Chinese nationals evade China’s currency controls.
The money remitters allegedly disposed of the drug proceeds by either delivering United States currency directly to their money exchange customers or by purchasing real or personal property, including luxury goods and cars to be shipped to China. Additionally, the remitters also moved illicit drug proceeds through cryptocurrency transactions. They also allegedly used a variety of traditional methods to place the funds into the traditional banking system such as purchasing cashier’s checks, or “structuring,” that is, depositing small amounts at a time into bank accounts opened for this purpose to avoid banks from reporting large cash deposits to the U.S. government.
The remaining seven counts charge individual defendants with crimes such as possession of pound quantities of cocaine and methamphetamine, structuring funds to avoid federal reporting requirements placed on banks, and one count of assault with a deadly weapon on a federal officer.
If convicted of all charges, each defendant faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison.
The DEA, IRS Criminal Investigation, South Gate Police Department, Downey Police Department, Glendora Police Department, Fullerton Police Department, and El Monte Police Department are investigating the case, with valuable assistance from the FBI and U.S. Marshals Service.
Assistant U.S. Attorney Julie J. Shemitz for the Central District of California is prosecuting the case. The Justice Department’s Office of International Affairs and Criminal Division’s Narcotic and Dangerous Drug Section’s Special Operations Unit assisted with the investigation and overseas coordination in the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Superseding IndictmentDrug courier imprisoned for attempting to smuggle 23 pounds of cocaine through POERead the Press Release
BROWNSVILLE, Texas – A 36-year-old U.S. citizen residing in Matamoros, Mexico, has been sentenced for possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gilberto Lugo pleaded guilty Feb. 15, 2023.
U.S. District Judge Rolando Olvera has now ordered Lugo to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the prison term, Judge Olvera noted Lugo had a criminal history that included a felony assault upon a family household member.
On July 21, 2022, Lugo drove into the United States through the Veterans Port of Entry (POE) in Brownsville. Law enforcement noticed he appeared nervous and avoided eye contact. He was also the sole occupant and owner of the vehicle. Lugo claimed he lived in Matamoros and was making entry to search for a “welding course.” During inspection of his vehicle, law enforcement found 10.46 kilograms (or 23 pounds) of cocaine behind the door panels.
As the investigation continued, authorities discovered Lugo had owned the vehicle since December 2021 and had been crossing POE bridges since at least January 2022. A search of Lugo’s cellphone revealed photos of different vehicles crossing the POE, large bundles of cash and zip-lock baggies of a white powder believed to be cocaine.
Lugo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Oscar Ponce prosecuted the case.
Detroit Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Vorheese D. Zanders, Jr., 32 years old, of Detroit, Michigan, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to possessing fentanyl with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Zanders was sentenced to 180 months in prison followed by 4 years of supervised release.
According to documents in the case, Zanders and his fellow drug traffickers came from Detroit to Fort Wayne where they distributed fentanyl and other drugs throughout 2017 and 2018. Zanders supplied the fentanyl, and the group dealt drugs from several Fort Wayne hotels and residences, while commonly armed with firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fort Wayne Police Department, the Indiana State Police, and the Taylor Police Department in Michigan. The case was prosecuted by Assistant United States Attorney Anthony W. Geller and Stacey R. Speith.
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.
Datil Man Pleads Guilty to Retaliating Against a Federal EmployeeRead the Press Release
ALBUQUERQUE – A Datil man pleaded guilty in federal court to retaliating against a federal employee by knowingly filing a false notice of lien against their property in the amount of $20 million.
In his plea agreement, Trapper Killsmany, formerly known as David Goldsmith, 56, admitted that he filed a false notice of lien with the Catron County Clerk's Office against the property of employees of the United States Social Security Administration. This action was in response to the employees' performance of their official duties. The lien was false because the listed debtors had no financial relationship with Killsmany and therefore owed no debt or other obligation to him.
Previously, Killsmany had filed fraudulent liens in Alaska, claiming that seven federal employees owed him $950 million in damages. Although he was not criminally charged for filing these fraudulent liens, the United States sued Killsmany and obtained a default judgment in federal court. This judgment prohibited him from filing liens without prior court approval.
The Court ordered that Killsmany remain in custody pending sentencing, which has not been scheduled.
At sentencing, Killsmany faces 10 years in prison. Upon his release from prison, Killsmany 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 Albuquerque Field Office investigated this case with the assistance of Catron County Sheriff’s Office and the Social Security Administration. Assistant U.S. Attorney Ry Ellison is prosecuting the case.
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Court Orders Colorado e-Cigarette Maker to Stop Selling Unauthorized Vaping ProductsRead the Press Release
A federal court on June 11 enjoined a Colorado company and its owner from manufacturing, distributing or selling unauthorized vaping products.
In a complaint filed on June 6, in the U.S. District Court for the District of Colorado, the government alleged that Boosted LLC, also known as Boosted E-Juice, and its owner, Cory Vigil, violated the Federal Food, Drug and Cosmetic Act by introducing or delivering for introduction into interstate commerce adulterated and misbranded tobacco products. According to the complaint, the defendants manufactured and sold electronic finished nicotine delivery systems (ENDS) products, including finished e-liquids. The complaint alleged that the Food and Drug Administration (FDA) warned the defendants that their products, including flavored e-liquids sold as “Dragon Fruit Coconut Milkshake,” “Horchata Milkshake” and “Raspberry Milkshake,” were adulterated and misbranded because they lacked the required marketing authorization order from FDA. The government also alleged that despite repeated FDA written warnings, the defendants continued to illegally sell their flavored e-liquid products online.
The defendants agreed to settle the lawsuit and be bound by a consent decree of permanent injunction. The order entered by the court permanently enjoins the defendants from directly or indirectly manufacturing, distributing, selling, and/or offering for sale any new tobacco product that has not received marketing authorization from FDA. The court also ordered the defendants to destroy ENDS products in their custody, control, or possession.
The injunction against Boosted is the first enforcement action finalized since the Justice Department and FDA announced the creation of a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes. To date, the FDA has authorized the sale of 23 specific tobacco-flavored e-cigarette products and devices. These are the only e-cigarette products that currently may be lawfully marketed and sold in the United States.
“The illegal distribution of unauthorized vaping products poses a serious public health threat, particularly to youth,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all available criminal and civil authorities to bring new enforcement actions in coordination with our task force partners.”
“Those who disregard the law are responsible for the consequences, and today’s action is further demonstration of FDA working with our federal partners to hold those who break the law accountable,” said Director Brian King, Ph.D., M.P.H., of FDA’s Center for Tobacco Products (CTP). “This latest action brought by the FDA and DOJ shows how we’re taking an ‘all government’ approach toward addressing illegal e-cigarettes in this country.”
Trial Attorney Michael J. Murali of the Civil Division’s Consumer Protection Branch handled the case, with assistance from Assistant Chief Counsel Sarah Rosenberg of FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Claims made in a complaint are allegations that, if a case were to proceed to trial, the government would be required to prove by a preponderance of the evidence.
Counterfeit Pills Laced with Fentanyl Get Burgaw Man 16.5 Years in PrisonRead the Press Release
NEW BERN, N.C. – Timothy Mark Blackmon, a 29-year-old resident of Burgaw, has been sentenced to 198 months in prison for possessing counterfeit pills laced with fentanyl with the intent to distribute them in the Wilmington area. The counterfeit pills were made to look like a variety of prescription drugs, including Percocet, Hydrocodone and Oxycodone. Blackmon pled guilty on August 15, 2023.
“Counterfeit pills laced with deadly fentanyl are made in makeshift labs with no quality control. They are driving American addiction and overdoses at a staggering rate,” said U.S. Attorney Michael Easley. “Never take a pill that wasn’t prescribed by your doctor. It could be your last. This defendant hid fentanyl pills in a bag of M&Ms and stashed thousands of pills in air vents in his home. The DEA and Pender County Sheriff’s Office did incredible work getting these pills off the street and may have saved lives.”
According to court documents and other information presented in court, in November of 2021 law enforcement received information that Blackmon was distributing counterfeit fentanyl pills throughout the Wilmington area. Law enforcement began an investigation and learned that Blackmon would travel to California to purchase the pills. Blackmon would then ship the counterfeit pills through the U.S. Postal Service (USPSS) back to the Eastern District of North Carolina for further distribution. During the investigation law enforcement learned that Blackmon had recently traveled to California. On November 18, 2021, law enforcement located Blackmon at the San Diego Airport preparing to board a plane to travel back to North Carolina. Blackmon was found to be in possession of a counterfeit fentanyl pill, more than $7000 in cash, and a USPS receipt for a package that had been shipped on November 16, 2021, destined for Wilmington, N.C. Ultimately, law enforcement located the package which contained more than five thousand of counterfeit fentanyl pills concealed in a package that contained toys and candy, including some pills hidden in a bag of candy.
On November 19, 2021, the Drug Enforcement Administration (DEA) and the Pender County Sheriff’s Office executed a search warrant at Blackmon’s residence during which law enforcement seized more than 11,000 counterfeit fentanyl pills concealed in air vents in Blackmon’s bedroom, over $87,000 in cash, and a small amount of cocaine. Flight records for Blackmon obtained by law enforcement also confirmed repeated trips to California and Arizona from March of 2021 through November of 2021. Information presented to the Court established that Blackmon would travel to California approximately once a month to purchase approximately 5,000-10,000 fentanyl pills from his source of supply and have them shipped back to North Carolina for further distribution. A DEA analysis of the pills found in the search confirmed the presence of fentanyl.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Judge Louise W. Flanagan. The Pender County Sheriff’s Office and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 7:23-cr-00030-FL.
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Corona Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
RIVERSIDE, California – A Riverside County man has pleaded guilty to federal criminal charges for preparing and filing false tax returns for his clients, the Justice Department announced today.
Salvador Gonzalez, of Corona, pleaded guilty on Monday to three counts of aiding and assisting in the preparation of false tax returns.
According to court documents and statements made in court, starting in 2013, Gonzalez operated Grace’s Lighthouse Resource Center, Inc., a return-preparation business. Since then, Gonzalez has prepared or assisted in the preparation of more than 11,000 tax returns that requested refunds from the IRS totaling more than $38 million.
Consistently, Gonzalez directed his clients to create a phony corporation and to title their homes, cars, and other assets in the name of the corporation. Gonzalez then referred those clients to an associate to prepare these sham corporation’s tax returns. The associate would provide the clients with a blank spreadsheet and request that they input their business expenses into that spreadsheet. At Gonzalez’s direction, the clients would include personal expenses, such as their mortgage payments, car payments, and utility bills, and then provide the spreadsheet to the associate. The associate would, in turn, use the spreadsheet to prepare the business tax returns, which inevitably would show a loss.
Gonzalez then prepared the clients’ individual income tax returns, which incorporated the fraudulent business losses and offset their income. To further reduce the clients’ taxes owed to the IRS, Gonzalez also fabricated deductions on the personal returns such as unreimbursed employee expenses, cash contributions to charity, and medical and dental expenses. As a result of Gonzalez’s fraudulent return-preparation practices, his clients paid less taxes than they owed.
Gonzalez profited from his return-preparation business. Before 2019, he typically charged clients a flat fee of $500 per tax return. In 2019, he started charging clients 1% of their gross income as a fee for his services.
United States District Judge Jesus G. Bernal scheduled an October 7 sentencing hearing in this case, at which time Gonzalez will face a maximum penalty of three years in prison for each count.
IRS Criminal Investigation is investigating the case.
Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office and Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division are prosecuting the case.
Convicted Felon Sentenced to 46 Months for Possessing A Loaded Firearm IllegallyRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jddarrian Christopher Irons (33, Fort Myers) to 3 years and 10 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Irons to forfeit the firearm and ammunition possessed during the offense. Irons entered a guilty plea on February 28, 2024.
According to court records, on October 5, 2023, officers from the Fort Myers Police Department conducted a traffic stop on a vehicle in which Irons was the front seat passenger. During the traffic stop, Irons initially misidentified himself to the officers by providing a false name and date of birth. Then, when officers searched the car, they found a loaded Smith and Wesson handgun in a fanny pack wedged between the front passenger seat—where Irons had been sitting—and the door. Minutes earlier, before getting into the vehicle, Irons had been seen wearing the fanny pack in a nearby apartment complex. As a multi-time convicted felon who had recently been released from a seven-year state prison sentence, Irons is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon Eth.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Clay County Men Sentenced for KidnappingRead the Press Release
LONDON, Ky. – Two Manchester, Ky., men, Kenneth Ray Grubb, 33, and Landon Wagers, 19, were sentenced on Monday, by U.S. District Judge Claria Horn Boom, to 112 months and 84 months in prison, respectively, for kidnapping.
According to their plea agreements, a drug dealer offered to pay Grubb to bring an individual to them. To accomplish this kidnapping, Grubb worked with Wagers. Wagers called the victim to arrange a meeting at his residence, under the pretense that Wagers had a firearm that the victim might be interested in purchasing. When the victim arrived at the residence, Grubb and Wagers forced the victim into a vehicle and started driving toward the dealer’s residence. Before reaching the residence, Grubb stopped the vehicle and, along with Wagers, struck the victim multiple times and forced him into the trunk. During this, Grubb used metal knuckles to assault the victim, lacerating his head. The drug dealer provided Grubb and Wagers with methamphetamine as payment for delivering the victim.
Under federal law, Grubb and Wagers must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by ATF and KSP. Assistant U.S. Attorney Drew Trimble prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Chicago Health Care Company and Its Former Owners to Pay Nearly $2 Million to Settle False Claims Act LawsuitRead the Press Release
A Chicago health care company and its former owners will pay nearly $2 million to the United States and the States of Illinois and Indiana to resolve a civil lawsuit arising from the submission of false claims to Medicare and Medicaid.
The settlement resolves allegations that KAREFIRST MANAGEMENT, an independent nurse practitioner group, developed its own proprietary patient charting software and required its nurse practitioners to use it, despite knowing that it resulted in fraudulently upcoded claims being submitted to and paid by Medicare and Medicaid. The suit alleged that KareFirst contracted out nurse practitioners to see patients at skilled nursing facilities across the Chicago area. Those nurse practitioners charted all patient visits using the software developed by KareFirst. The software then generated false, upcoded claims that KareFirst submitted to Medicare and Medicaid for payment.
The settlement resolves a civil lawsuit filed in U.S. District Court in Chicago by a former employee of KareFirst under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens to bring lawsuits on behalf of the U.S. for false claims, and to share in any recovery. The U.S. intervened in the lawsuit prior to the settlement.
As part of the settlement agreement and consent order entered Friday by U.S. District Chief Judge Rebecca R. Pallmeyer, KareFirst and its former owners agreed to pay $1.99 million to Medicare and Medicaid over the next three years.
The settlement and consent judgment were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Sarah F. Terman.
The public is reminded that civil allegations are accusations only, and there was no determination of liability as part of the settlement and consent judgment.
KareFirst consent judgment and settlement agreementCentral American Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Four TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to more than three months in federal prison.
Manuel De Jesus Segovia, age 48, a citizen of El Salvador illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 3, 2024, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Segovia admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government.
Segovia first illegally entered the United States in October 2004 and was apprehended by immigration officials at the border. Segovia was released on his own recognizance and absconded from ICE supervision. Segovia was not found by immigration officials until March 2007 and was first deported in June 2007. Segovia was again deported in March 2014 after illegally reentering the United States. On two consecutive days in June 2022, Segovia was apprehended at the border and returned to Mexico. On March 13, 2024, immigration officials learned Segovia had illegally returned to the United States and arrested him near his residence in Cedar Rapids.
Segovia was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Segovia was sentenced to 98 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Segovia is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-23.
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Cedar Rapids Contractor Sentenced to Federal Prison for Scamming Derecho VictimsRead the Press Release
A Cedar Rapids, Iowa, contractor who scammed victims of the 2020 derecho was sentenced on June 11, 2024, to four years in federal prison. Scott Gregory Adkins, age 48, received the prison term after a February 1, 2024, guilty plea to one count of wire fraud. In a plea agreement, Adkins admitted that, from December 2020 through March 2022, he devised and perpetrated a scheme to defraud his customers, including victims of the 2020 derecho. Adkins was a contractor doing business as “Adkins Home Improvements LLC.”
On August 10, 2020, a severe storm, commonly referred to as a derecho, struck multiple counties in the Northern District of Iowa, as well as other parts of the States of Iowa, Illinois, and Indiana. Media reporting on the event, citing public and private sources, have estimated that the derecho, with winds exceeding 100 mph, caused an estimated total of $7.5 billion in damage across the affected states. The derecho caused long-duration power outages across the Northern District of Iowa and the larger region, millions of acres of crops were damaged or destroyed, and numerous semi-trucks were blown off major interstate highways. Just within the city of Cedar Rapids, power was cut to nearly all of the city’s residents by the derecho, and damage estimates indicate that over 1,000 housing units were rendered unlivable while hundreds of additional homes suffered damage. Many of the city’s businesses were also damaged during the storm.
Adkins organized “Adkins Home Improvements LLC” in October 2020, approximately two months after the derecho. By means of “Adkins Home Improvements LLC,” Adkins offered home repair services to victims of the derecho, as well as other individuals in the Cedar Rapids area who needed projects completed in the tight-labor, post-derecho construction market.
As a part of his scheme, Adkins offered to provide construction services and materials to prospective customers of “Adkins Home Improvements LLC,” including but not limited to victims of the derecho. Adkins provided estimates to those customers and demanded substantial advance deposits or downpayments before undertaking work on the projects. Instead of completing the projects, Adkins spent some of the advanced funds on personal expenses, including but not limited to food, and transferred other such funds to a family member by means of a mobile payment service. Adkins also made false statements and excuses to his customers about the status of their projects to conceal his illicit use of the funds and to lull his customers into a false sense of security.
In total, Adkins stole over $190,000 from 22 victims as part of his scheme. One of Adkins’ victims was an elderly widow who suffered roof damage to her Cedar Rapids residence from the derecho. Adkins has a lengthy criminal history, including theft-related convictions in Iowa and Michigan.
Adkins was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Adkins was sentenced to 48 months’ imprisonment. He was ordered to make $192,770.72 in restitution the victims. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Adkins is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-66-LTS-MAR.
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Canyon County Man Sentenced to over 10 Years for Distributing Cocaine and MethamphetamineRead the Press Release
BOISE – Tyler J. Pierce, 31, of Caldwell, was sentenced to 125 months in federal prison for distribution of cocaine and methamphetamine, U.S. Attorney Josh Hurwit announced today.
According to court records, in June 2022, City County Narcotics Unit officers received information that Pierce was distributing controlled substances in Canyon County. On three occasions in June and August 2023 Pierce sold a total of 3.24 grams of cocaine and 361.99 grams of methamphetamine to an undercover police officer. After Pierce was arrested on an Idaho Department of Correction Agent’s Warrant, he made several calls to his spouse in which they discussed deleting digital evidence material to his case. On the calls, Pierce threatened the life of the undercover officer. Pierce received a sentencing enhancement related to obstructing or impeding the administration of justice.
Pierce has a lengthy criminal history, which includes felony convictions for possession of a controlled substance with intent to deliver, grand theft, and eluding law enforcement.
Senior U.S. District Judge B. Lynn Winmill also ordered Pierce to serve four years of supervised release following his prison sentence. Pierce pleaded guilty on February 27, 2024.
“Having been caught selling poisoning drugs on our streets, this defendant doubled down on his criminal conduct by threatening the life of an undercover law enforcement officer who helped to bring him to justice,” said U.S. Attorney Hurwit. “Just as we will not tolerate drug trafficking in Idaho, we will hold accountable anyone who threatens the brave men and women in law enforcement who help keep us all safe.”
“This is another example of unity, collaboration, and persistence. I am so proud of our partnerships with our federal counterparts, which continue to pay dividends for all Idahoans by ensuring they can live safely and pursue happiness,” said Caldwell Chief of Police Rex Ingram.
“This case is one example that highlights the prevalence of drugs in our state and the need for Task Force officers like those in the Canyon County Narcotics Unit to risk their lives trying to address this growing threat,” said Canyon County Sheriff Kieran Donahue. “Almost all of these illicit drugs come through our Southern Border through the work of Transcontinental Criminal Organizations (TCOs) like the Sinaloa and Jalisco New Generation cartels, and we must continue to the fight to hold accountable those who are involved with spreading this poison on our streets. That includes individuals like Tyler Pierce, but we also must hold those accountable who are complicit in the vast criminal networks responsible for bringing illicit drugs here to Idaho, like international bad actors in China and Mexico.”
U.S. Attorney Hurwit commended the investigation by the City County Narcotics Unit, which is comprised of officers from the Canyon County Sheriff's Office and the Caldwell Police Department. Special Assistant U.S. Attorney Marie C. Chong prosecuted the case.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the Oregon-Idaho High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives, including the Special Assistant U.S. Attorney position.
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Buxton Woman Who Stole from Employer for 7+ Years Sentenced for Wire Fraud, Filing a False Tax ReturnRead the Press Release
PORTLAND, Maine: A Buxton woman was sentenced on Tuesday in U.S. District Court in Portland for two counts of wire fraud and one count of making and subscribing a false tax return.
U.S. District Judge John A. Woodcock, Jr. sentenced Christine Bangs, 64, to a year plus a day in prison followed by three years of supervised release. Bangs was also ordered to pay $536,352.33 in restitution to her victim and $70,323 to the Internal Revenue Service (IRS) for taxes on the income derived from the fraud that she failed to report. She was also ordered to forfeit any property, real or personal, which was derived from the proceeds of her crime, including $105,009.53 seized from a bank account in her name.
According to court records, from March 2014 until June 2021, Bangs used her professional position as operations manager and access to her employer’s credit card, bank accounts and payroll for her own personal gain. Bangs used the corporate credit card to make approximately $197,936 in personal purchases, including $12,414.96 for tickets to a New England Patriots vs. Dallas Cowboys game, and stole an additional $255,645 from the victim by making approximately 213 wire transfers over the 7+ years. Of the money Bangs stole, she spent more than $176,000 on entertainment, tickets & dining. The U.S. Attorney’s Office does not identify victims of crime and is therefore not identifying Bangs’ former employer. Bangs omitted $183,386 in income when filing a personal tax return in 2020.
The FBI and IRS Criminal Investigation investigated the case.
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Browning man sentenced to 18 months in prison for assaulting elderly small business owner on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man who admitted to beating an elderly small business owner while demanding money was sentenced today to 18 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Frederick Melvin Noon, Jr., 39, pleaded guilty in January to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided. The court also ordered Noon pay $2,500 for reported lost wages.
In court documents, the government alleged that on March 21, 2023, Noon assaulted the victim, identified as John Doe, a small business owner who was in his 70s, while demanding money. Noon was intoxicated when he walked into the business and demanded money. When Doe refused, Noon became angry and started demanding that Doe retrieve money from a back room. Doe gave Noon a few dollars, but Doe was unsatisfied and began assaulting Doe. Noon grabbed Doe by the head and started scratching him, then threw him to the ground. Doe suffered broken bones and underwent surgery for injuries from the assault.
The U.S. Attorney’s Office prosecuted the case. The Blackfeet Law Enforcement Services and Bureau of Indian Affairs conducted the investigation.
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Bronx Man Convicted of December 2021 Murder and Attempted Robbery in Aqueduct Park WalkwayRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction of RICARDO FERGUSON, a/k/a “Maybach,” for the December 5, 2021, murder of Robert Brown, Sr. inside of the Aqueduct Park walkway in the University Heights neighborhood of the Bronx. FERGUSON shot Brown in the head and attempted to steal crack cocaine and money from Brown’s pockets during a dispute over drug sales. The defendant was found guilty following a six-day trial before U.S. District Judge Richard M. Berman.
U.S. Attorney Damian Williams said: “Ricardo Ferguson murdered Robert Brown, Sr. by shooting him in the head in the middle of a New York City park in broad daylight. Today’s conviction sends an important message to drug dealers who commit violent crimes that they will be apprehended and prosecuted to the full extent of the law.”
According to the allegations in the Indictment and evidence at trial:
FERGUSON and others participated in a conspiracy to distribute crack cocaine in the vicinity of the Aqueduct Park walkway in the University Heights neighborhood of the Bronx. In the months leading up to the murder, FERGUSON and his co-conspirators threatened Robert Brown, Sr. because Brown had been selling bags containing larger quantities of crack cocaine than the other dealers in the park. On December 5, 2021, FERGUSON and a co-conspirator attacked and attempted to rob Brown in the Aqueduct Park walkway. During the attempted robbery, FERGUSON pulled out a gun and shot Brown in the head. Brown was 63 years old at the time of the murder.
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FERGUSON, 38, of the Bronx, New York, was convicted today of conspiracy to distribute crack cocaine, which carries a maximum sentence of 20 years in prison; attempted Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; murder through the use of a firearm, which carries a maximum sentence of life in prison; and using and carrying a firearm in furtherance of drug trafficking, which was brandished and discharged, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. FERGUSON is scheduled to be sentenced by Judge Berman on October 9, 2024.
Mr. Williams praised the outstanding investigative work of the New York City Police Department (“NYPD”), the Special Agents and NYPD Task Force Officers from the Special Investigations Division assigned to the Southern District of New York, and the New York/New Jersey High Intensity Drug Trafficking Area analysts.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Dominic Gentile, Jun Xiang, Mathew Andrews, and Peter Davis are in charge of the prosecution, with the assistance of Paralegal Specialist Ananya Sankar.
Bounthavong Sonthikoummane and Ashlyn Arcouette Indicted for Pandemic Loan FraudsRead the Press Release
Burlington, Vermont – The United States Attorney for the District of Vermont announced that a federal grand jury has indicted Bounthavong Sonthikoummane, 42, and Ashlyn Arcouette, 32, both of White River Junction, Vermont, on fraud charges stemming from four loans they obtained on behalf of businesses during the coronavirus pandemic. Sonthikoummane appeared yesterday in United States District Court in Burlington and pleaded not guilty to the indictment. United States Magistrate Judge Kevin J. Doyle ordered that Sonthikoummane remain in custody pending another hearing on June 20. Arcouette is to appear in court today for her arraignment.
On June 12, 2024, a federal grand jury returned an eleven-count indictment against the two defendants. The indictment charges Sonthikoummane with bank fraud, wire fraud, conspiracy, money laundering, and making false statements. It charges Arcouette with wire fraud, conspiracy, and money laundering. During the coronavirus pandemic, small business owners had the opportunity to apply for federal loans under two different programs. The Economic Injury Disaster Loan program was a pre-existing program established by Congress to provide low-interest loans for businesses that suffered financial hardship because of a natural disaster. The Paycheck Protection Plan loan program was established by Congress in the spring of 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act. The CARES Act contained many provisions that were intended to address the medical, economic, and social impacts of the COVID-19 pandemic. The Paycheck Protection Program was an economic stimulus program intended to help small businesses keep employees on their payroll during the pandemic. It provided billions of dollars in low-interest, unsecured loans that were to be administered through and guaranteed by the U.S. Small Business Administration. Applicants had to certify that the loan proceeds would be used to maintain payroll and pay other business-related expenses. If applicants were able to demonstrate that proceeds were used to keep workers employed, part or all of the loan could be forgiven. Both the EIDL and PPP loan programs were administered by the Small Business Administration. Applicants had to provide the SBA and lending financial institutions with certain documentation demonstrating their entitlement to and qualifications for EIDL and PPP loans.
According to the indictment, between July 2020 and February 2021, Sonthikoummane applied for and obtained two PPP and one EIDL loan on behalf of independent contracting businesses he claimed to operate. Arcouette, allegedly with Sonthikoummane’s assistance, applied for an EIDL loan in late July 2020 and it was approved in August. According to the indictment, each of the loan applications submitted by the defendants contained materially false and fraudulent statements and representations about the businesses, and in two instances Sonthikoummane allegedly submitted falsified IRS Schedule Cs that contained false financial information about the businesses. The three loans obtained by Sonthikoummane totaled more than $117,000; the loan obtained by Arcouette was for $56,900. In late 2020, according to the indictment, Sonthikoummane obtained forgiveness of one PPP loan by falsely certifying that he had used the loan proceeds for business purposes in accordance with loan program rules. In fact, according to the indictment, both defendants used most of the loan money to invest in Coinbase, a crypto-currency exchange. The indictment also seeks forfeiture of a residence in White River Junction that Sonthikoummane allegedly bought with fraudulently-obtained loan proceeds.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to 20 years of imprisonment and fines of up to $250,000. The actual sentences would be determined with reference to federal sentencing guidelines and statutory sentencing factors.
This case was investigated by the Federal Bureau of Investigation.
Sonthikoummane is represented by Christoper Dall, Esq. Arcouette is represented by Mark Kaplan, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Addressing pandemic-related fraud is a priority of United States Attorney Nikolas P. Kerest and of the Department of Justice. For information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.