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Wednesday 1 May 2024
Two Murfreesboro Men Sentenced in Conspiracy to Ship Massive Quantities of Methamphetamine to New Zealand and AustraliaRead the Press Release
NASHVILLE – Steven Weaver, 51, of Murfreesboro, Tennessee, was sentenced yesterday to 140 months in prison and five years of supervised release, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee. Weaver previously pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, and possession and distribution of more than 50 grams of methamphetamine. Weaver’s co-defendant, Jamie Woods, was sentenced last week to 120 months in prison and five years of supervised release.
According to the indictment and other documents filed with the Court, in July 2019, an investigation by Homeland Security Investigations and the U.S. Postal Inspection Service determined that multiple parcels had been shipped from Murfreesboro to Australia and New Zealand that contained methamphetamine. In most instances, the methamphetamine was packaged in cake mix boxes and the parcels were identified as a “Birthday Gift.”
Although some of the parcels were successfully delivered to their destination, law enforcement intercepted 12 of the parcels, which contained a total of more than 20 kilograms of methamphetamine, some of which bore the defendants’ fingerprints. At sentencing, U.S. District Judge Aleta Trauger found that an estimate of 50 kilograms of methamphetamine was appropriate and described it as a “tremendous amount of incredibly pure methamphetamine.”
“This prosecution and the sentences imposed, are a testament to the fantastic work of the federal and local law enforcement agencies who investigated this case,” said United States Attorney Henry C. Leventis. “Methamphetamine is an incredibly dangerous drug. We will continue to hold accountable those who distribute it, either here in the Middle District or abroad.”
“The sentencing of these defendants illustrates HSI’s mission of investigating the movement of illegal narcotics through importation and exportation, either to or from the United States,” said Homeland Security Investigations (HSI) Nashville Special Agent in Charge Rana Saoud. “This sentencing showcases the investigative work HSI conducts alongside our partners, including the U.S. Postal Inspection Services, to disrupt and dismantle transnational criminal organizations who threaten the stability of communities domestically and abroad.”
Two of the parcels were determined to have been mailed from the mail room at Middle Tennessee State University (MTSU) in Murfreesboro, on June 25, 2019. The identification of the origin of these parcels led investigators to video footage from MTSU which captured a vehicle and two individuals and aided in the subsequent identification of the defendants. Investigators were also able to capture surveillance footage of Weaver and Woods buying copious amounts of cake mix boxes from Walmart.
This case was investigated by the U.S. Postal Inspection Service and Homeland Security Investigations with support from the Rutherford County Sheriff’s Office, the MTSU Police Department, the Murfreesboro Police Department, and Walmart Global Investigations. Assistant U.S. Attorney Amanda J. Klopf prosecuted the case.
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Two Los Angeles Men Plead Guilty to Criminal Charges for Using Instagram to Solicit Account Holders to Deposit Stolen ChecksRead the Press Release
LOS ANGELES – Two Los Angeles men pleaded guilty today to federal criminal charges for defrauding banks and credit unions out of at least $2.7 million by depositing checks stolen from the mail into bank accounts belonging to accomplices they recruited through Instagram.
Carlos Corona, 36, of South Los Angeles, and Jose Luis Edeza Jr., 31, of Sunland, the two lead defendants in this criminal case, each pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to their plea agreements, from October 2020 to August 2023, Corona, Edeza and other co-conspirators engaged in an elaborate bank fraud scheme using third-party bank accounts and stolen checks. Some co-conspirators stole checks from the U.S. mail stream, including from post office mail collection boxes located outside post offices.
The conspirators took possession of the stolen checks. They, along with others, then solicited bank account holders through social media to provide their debit cards and bank account information, promising these account holders a cut of any fraudulent funds deposited into their accounts.
To circumvent the fraud protections of the banks and credit unions, Corona, Edeza and others specifically requested bank accounts that had been open for a certain amount of time so they could get access to the stolen funds more quickly.
Bank account holders responded to the social media advertisements and provided members of the conspiracy with the information requested on the ads, including bank account numbers, PIN numbers, debit cards and online banking log-in information.
Corona, Edeza and other co-conspirators exchanged the bank account holders’ information with each other, and then they deposited the stolen checks into these bank accounts. In most cases, the stolen checks were falsely endorsed in the original payee’s name. Sometimes, the checks were washed or altered to make the payee name correspond to the bank account into which the checks were being deposited.
Corona, Edeza and other co-conspirators then rapidly depleted the fraudulently deposited funds from the account holders’ accounts by making cash withdrawals, electronic transfers and/or debit card purchases. To conceal the fraud, members of the conspiracy instructed account holders – if the banks and credit unions contacted them about the fraudulent deposits – to claim that their accounts had been compromised.
During the scheme, Corona and Edeza intended to cause at least $5.3 million in losses to the banks and credit unions and caused actual losses to lenders of at least $2.7 million.
United States District Judge John F. Walter scheduled July 8 sentencing hearings for Corona and Edeza, at which time each defendant will face a statutory maximum sentence of 30 years in federal prison for the bank fraud conspiracy count and a mandatory two-year consecutive prison sentence for the aggravated identity theft count.
The United States Postal Inspection Service and IRS Criminal Investigation are investigating this matter. The Los Angeles Police Department provided assistance.
Assistant United States Attorneys Sarah E. Spielberger and Alexandra Michael, both of the General Crimes Section, are prosecuting this case.
Threats to murder Montana U.S. Sen. Jon Tester send Billings man to prison for 30 monthsRead the Press Release
BILLINGS — A Billings man who admitted to threatening to kill Montana U.S. Senator Jon Tester in voicemail messages was sentenced today to 30 months in prison, to be followed by three years of supervised release, the U.S. Attorney’s Office said.
The defendant, Anthony James Cross, 30, pleaded guilty in January to threats to injure and murder a United States Senator.
U.S. District Judge Susan P. Watters presided. The court accepted a plea agreement in the case and ultimately dismissed a second count that charged Cross with threats against the President.
The government alleged in court documents that on April 17, 2023, Sen. Tester’s office received voicemails containing direct threats to the senator and his family. The voicemails, which contained expletives, included threats that the caller was going to, among other things, “kill every single one of your (obscenity) family members,” and that they would experience a “horrendous death.” Law enforcement determined that the phone number associated with the calls was attributed to Cross, who lived in Billings and had previous interactions with law enforcement.
A review of Cross’s social media activity indicated disturbing content. The government further alleged that on April 25, 2023, Google contacted the FBI regarding multiple comments made to YouTube videos flagged as threatening. The comments were attributed to Cross’s YouTube account. Some of the comments made in April 2023 included direct threats to kill the President and how “we are actively hunting down and killing any trans in our major cities.”
When interviewed, Cross admitted to making the comments posted on YouTube and to using his cellular phone to make the comments.
Assistant U.S. Attorneys Zeno B. Baucus and Jeffrey K. Starnes prosecuted the case. The FBI and United States Secret Service conducted the investigation.
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Staffing Company to Pay $2.7M for Alleged Failure to Provide Adequate Cybersecurity for COVID-19 Contact Tracing DataRead the Press Release
Insight Global LLC, headquartered in Atlanta has agreed to pay $2.7 million to resolve allegations that it violated the False Claims Act by failing to implement adequate cybersecurity measures to protect health information obtained during COVID-19 contact tracing.
The United States alleged that during the COVID-19 pandemic, the Pennsylvania Department of Health hired Insight Global to provide staffing for COVID-19 contact tracing and paid Insight Global using funds from the U.S. Centers for Disease Control and Prevention. Insight Global understood that personal health information of contact tracing subjects needed to be kept confidential and secure, but it failed to do so. For example, certain personal health information and/or personally identifiable information of contact tracing subjects was transmitted in the body of unencrypted emails, staff used shared passwords to access such information, and such information was stored and transmitted using Google files that were not password protected and were potentially accessible to the public via internet links.
The United States further alleged that from November 2020 through January 2021, Insight Global managers received complaints from Insight Global staff that such information was unsecure and potentially accessible to the public, but Insight Global failed to start remediating the issue until April 2021. At that point, Insight Global addressed the issue, including by securing such information, investigating the cause and scope of the incident, strengthening internal controls and procedures, adding more data-security resources and issuing a public notice regarding the scope of the potential exposure and offering free credit monitoring and identity protection services to those affected. Insight Global also cooperated with the United States’ investigation.
“The resolution announced today reflects our continuing commitment to ensure that government contractors fulfill their cybersecurity obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Failure to do so can compromise sensitive information of individuals and the government. The Justice Department will hold accountable those contractors who knowingly fail to satisfy cybersecurity requirements.”
“We will continue to work tirelessly here in the Middle District of Pennsylvania to make sure that those who do business with the government fulfill their commitments,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Increasingly, cybersecurity is a critical part of most, if not all, federally funded contracts. We are thankful for the support of HHS-OIG and their assistance in investigating this case.”
“Contractors for the government who do not follow procedures to safeguard individuals’ personal health information will be held accountable,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the security of their personal health data.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The settlement in this case provides for the whistleblower, Terralyn Williams Seilkop, a former Insight Global staff member who worked on the contact tracing at issue, to receive a $499,500 share of the settlement amount. The case is captioned United States ex rel. Seilkop v. Insight Global LLC, No. 1:21-cv-1335 (M.D. Pa.).
Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Tamara J. Haken for the Middle District of Pennsylvania handled this matter, with assistance from HHS-OIG.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementStaffing Company to Pay $2.7 Million for Alleged Failure to Provide Adequate Cybersecurity for COVID-19 Contact Tracing DataRead the Press Release
HARRISBURG - Insight Global LLC, headquartered in Atlanta, Georgia, has agreed to pay $2,700,000 to resolve allegations that it violated the False Claims Act by failing to provide adequate cybersecurity to protect health information obtained during COVID-19 contact tracing.
The United States alleged that during the COVID-19 pandemic, the Pennsylvania Department of Health hired Insight Global to provide staffing for COVID-19 contact tracing, and paid Insight Global using funds from the U.S. Centers for Disease Control and Prevention. Insight Global understood that personal health information of contact tracing subjects needed to be kept confidential and secure, but it failed to do so. For example, certain personal health information and/or personally identifiable information of contact tracing subjects was transmitted in the body of unencrypted emails, staff used shared passwords to access such information, and such information was stored and transmitted using Google files that were not password protected and were potentially accessible to the public via internet links.
The United States further alleged that from November 2020 through January 2021, Insight Global managers received complaints from Insight Global staff that such information was unsecure and potentially accessible to the public, but Insight Global failed to start remediating the issue until April 2021. At that point, Insight Global addressed the issue, including by securing such information, investigating the cause and scope of the incident, strengthening internal controls and procedures, adding more data-security resources, and issuing a public notice regarding the scope of the potential exposure and offering free credit monitoring and identity protection services to those affected. Insight Global also cooperated with the United States’ investigation.
“The resolution announced today reflects our continuing commitment to ensure that government contractors fulfill their cybersecurity obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Failure to do so can compromise sensitive information of individuals and the government. The Justice Department will hold accountable those contractors who knowingly fail to satisfy cybersecurity requirements.”
“We will continue to work tirelessly here in the Middle District of Pennsylvania to make sure that those who do business with the government fulfill their commitments,” said United States Attorney Gerard M. Karam. “Increasingly, cybersecurity is a critical part of most, if not all, federally funded contracts. We are thankful for the support of HHS-OIG and their assistance in investigating this case.”
“Contractors for the government who do not follow procedures to safeguard individuals’ personal health information will be held accountable,” said Maureen R. Dixon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the security of their personal health data.”
On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The settlement in this case provides for the whistleblower, Terralyn Williams Seilkop, a former Insight Global staff member who worked on the contact tracing at issue, to receive a $499,500 share of the settlement amount. The case is captioned United States ex rel. Seilkop v. Insight Global LLC, No. 1:21-cv-1335 (M.D. Pa.).
This matter is being handled by Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant United States Attorney Tamara J. Haken of the United States Attorney’s Office for the Middle District of Pennsylvania, with assistance from the Department of Health and Human Services’ Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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St. Louis County Man Sentenced to 84 Months in Prison for Selling FentanylRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man from St. Louis County, Missouri who sold drugs to a woman who later died to 84 months in prison.
Donald Lawrence Bateman, 28, pleaded guilty in January to distribution of a controlled substance and possession with the intent to distribute a mixture or substance containing fentanyl. He admitted selling illegal drugs to a St. Louis woman who was found dead the next day. In a series of text messages, Bateman and the victim discussed the sale of $90 worth of drugs, and what Bateman had available, including reference to pills referred to by them as “30s.”
The victim’s blood sample contained, among other things, fentanyl and ethanol.
Seventeen blue pills labeled “M30” that contained fentanyl, 14 green pills and a firearm were later found in Bateman’s possession.
Courtesy of the Drug Enforcement Administration.Bateman and his lawyers disputed that the pills were the cause of the victim’s death, but after witness testimony and evidence was presented Wednesday, Judge Ross said that Bateman’s sale of the drugs was central to her death.
The Drug Enforcement Administration and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorneys Cort VanOstran, James Delworth and Samantha Reitz prosecuted the case.
Springfield Man Sentenced to 14 Years in Federal Prison for Repeatedly Possessing and Distributing Child Sexual Abuse MaterialRead the Press Release
EUGENE, Ore.—A Springfield, Oregon man was sentenced to federal prison today for repeatedly possessing and distributing photos and videos depicting child sexual abuse.
Randy Lee Cook, 43, was sentenced to 168 months in federal prison and a life term of supervised release.
According to court documents, in 2006, Cook was convicted of state child pornography charges in Missouri and served a significant prison sentence for sending child sexual abuse material to a minor, engaging in sexual chats with the minor, and then engaging in additional sexual chats with an undercover law enforcement officer posing as a minor and propositioning the decoy minor for sex. Following his release from prison, Cook was required to register as a sex offender.
In the summer of 2020 and spring of 2021, investigators learned that Cook had resumed distributing child sexual abuse material online, this time using Kik Messenger, an instant messaging mobile application. Investigators traced multiple Kik accounts to Cook and learned he was residing in Springfield. On June 11, 2021, investigators executed search warrants on Cook’s residence, truck, and person. Cook’s phone was found to contain approximately 194 images and 63 videos depicting child sexual abuse.
In July 2021, Cook was charged by criminal complaint with possessing and distributing child pornography and arrested. On July 20, 2023, a federal grand jury in Eugene indicted him on the same charges.
In December 2023, while Cook’s case was being litigated, an FBI task force officer in Louisiana investigating an unrelated matter began conversing with an individual on Kik who was later determined to be Cook. In conversations online with the officer, Cook claimed to have engaged in sex acts with children and sent the agent an explicit video of a child. On December 14, 2023, Cook was arrested a second time when he was leaving his Springfield residence to plead guilty in federal court.
On January 24, 2024, Cook pleaded guilty to three counts of distributing child pornography and one count of possessing child pornography.
This case was investigated by the FBI Eugene Resident Agency with assistance from the FBI New Orleans Field Office, Lane County Sheriff’s Office, Bossier Parish Sheriff’s Office, and Shreveport Police Department. It was prosecuted by William McLaren, Marco Boccato, and Mira Chernick, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware SchemeRead the Press Release
A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting more than 2,500 ransomware attacks and demanding over $700 million in ransom payments.
“As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland.
“Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.”
“Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.”
According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands.
“Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.”
“Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.”
Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland.
Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy.
The FBI investigated the case.
Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas and Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases.
The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.
Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware SchemeRead the Press Release
A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting over 2,500 ransomware attacks and demanding over $700 million in ransom payments.
“As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland.
“Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.”
“Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.”
According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands.
“Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.”
“Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.”
Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland.
Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy.
The FBI investigated the case.
Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases.
The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.
Shiprock Woman Sentenced for Drunk Driving Crash that Killed GrandchildRead the Press Release
ALBUQUERQUE – A Shiprock woman was sentenced to five years in prison for a tragic rollover accident in Shiprock, New Mexico which resulted in the death of her young granddaughter and serious injuries to another.
There is no parole in the federal system.
According to court documents, on July 1, 2021, Evelyn Bustamante, 60, drove her grandchildren from Shiprock and Farmington. Neither of the children were properly restrained in seatbelts or car seats. Around 3:00 PM, Bustamante lost control of the vehicle, causing it to roll over and eject all three occupants.
First responders rushed the trio to the Northern Navajo Medical Center where Bustamante admitted to consuming alcohol and methamphetamine earlier that day. Toxicology tests confirmed the presence of these substances in her system.
Jane Doe 1 suffered severe head trauma and was placed on a ventilator at the University of New Mexico Hospital. After five days, she succumbed to her injuries. Jane Doe 2 sustained a skull fracture and subdural hemorrhage but has since recovered.
Bustamante suffered multiple injuries, including lacerations and fractures, and underwent reconstructive surgery on her hand.
Upon her release from prison, Bustamante will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and New Mexico State Police. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Scheme to Transfer Money to Iran Results in Guilty PleasRead the Press Release
Muzzamil Zaidi, 40, and Asim Mujtaba Naqvi, 40, both of Houston, Texas, pleaded guilty today for their roles in an illicit scheme to collect tens of thousands of dollars from the United States to Iran, including in the name of Ayatollah Ali Husseini Khamenei, the Supreme Leader of the Islamic Republic of Iran, and arrange for the money to be exported to Iran without the required licenses from the Offices of Foreign Assets Control.
According to court documents, in December 2018, Zaidi received permission to collect khums – a religious tax on wealth – on behalf of several Imams. Between December 2018 and December 2019, Zaidi and Naqvi collected payments of this tax, as well as donations purportedly to help victims of the ongoing civil war in Yemen, from individuals in the United States.
Zaidi and Naqvi arranged for the funds to be exported from the United States to Iran and to be received by the Office of the Supreme Leader of Iran. Zaidi and Naqvi enlisted friends, family members, and other associates to carry the cash out of the United States, in amounts less than $10,000 in order to avoid law enforcement scrutiny. One transfer of dollars to Iran involved a group of 25 travelers going on a religious pilgrimage in Iraq, and the subsequent transport of U.S. dollars hand-carried by those travelers to Iran. Both Zaidi and Naqvi were arrested in Houston on Aug. 18, 2020, as a result of this scheme.
The transfer of money was illegal because the United States has imposed economic sanctions on Iran since 1995. Every year since 1984, the U.S. State Department has named Iran as a state sponsor of terrorism. And on June 24, 2019, the President imposed additional sanctions on the Supreme Leader of Iran that prohibit the provision of funds to, or for the benefit of, the Supreme Leader of Iran.
Zaidi and Naqvi both pleaded guilty to conspiracy and violations of the International Emergency Economic Powers Act (IEEPA) before U.S. District Judge Tanya S. Chutkan, who scheduled sentencing for Zaidi on Aug. 13 and for Naqvi on Oct. 1.
The FBI Washington Field Office and the FBI Houston Counterterrorism team are investigating the case. FBI Field Offices in Dallas, Chicago, and Detroit provided valuable assistance.
Assistant U.S. Attorneys Jolie Zimmerman, Erik Kenerson, and Maeghan Mikorski for the District of Columbia, and Trial Attorneys Adam Small and Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section are prosecuting the case.
Scheme to Transfer Money to Iran Results in Guilty PleasRead the Press Release
WASHINGTON – Muzzamil Zaidi, 40, and Asim Mujtaba Naqvi, 40, both of Houston, Texas, pleaded guilty today for their roles in an illicit scheme to collect tens of thousands of dollars from the United States to Iran, including in the name of Ayatollah Ali Husseini Khamenei, the Supreme Leader of the Islamic Republic of Iran, and arrange for the money to be exported to Iran without the required licenses from the Offices of Foreign Assets Control.
The guilty pleas were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen, FBI Special Agent in Charge Douglas A. Williams Jr. of the Houston Field Office, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
Zaidi and Naqvi both pleaded guilty to conspiracy and violations of the International Emergency Economic Powers Act (IEEPA) before U.S. District Judge Tanya S. Chutkan, who scheduled sentencing for Zaidi on August 13, 2024, and for Naqvi on October 1, 2024.
According to court documents, in December 2018, Zaidi received permission to collect khums – a religious tax on wealth – on behalf of several Imams. Between December 2018 and December 2019, Zaidi and Naqvi collected payments of this tax, as well as donations purportedly to help victims of the ongoing civil war in Yemen, from individuals in the United States.
“The defendants smuggled cash out of the United States for the purpose of illegally delivering it to Iran, a country that sponsors terrorism across the globe,” said U.S. Attorney Matthew M. Graves. “This Office and our law enforcement partners will find and prosecute those seeking to unlawfully fund this regime.”
“For over 40 years, Iran has financed terror organizations that export fear, violence, and death across the globe,” said FBI Houston Special Agent in Charge Douglas Williams. “Zaidi and Naqvi financially supported Iran’s dispersion of terror through a system of subterfuge and deception. Thanks to the work of FBI counterterrorism agents, their system has been neutralized and Iran’s rabid campaign of state-sponsored terrorism has been impaired.”
“The FBI remains steadfast in preventing U.S. currency from reaching the most prolific state sponsor of terrorism in the world,” Assistant Director in Charge Sundberg said. “Today's hearing should be a warning to others that the FBI is committed to finding those who willfully circumvent U.S. sanctions and bring them to justice.”
Zaidi and Naqvi arranged for the funds to be exported from the United States to Iran and to be received by the Office of the Supreme Leader of Iran. Zaidi and Naqvi enlisted friends, family members, and other associates to carry the cash out of the United States, in amounts less than $10,000 in order to avoid law enforcement scrutiny. One transfer of dollars to Iran involved a group of 25 travelers going on a religious pilgrimage in Iraq, and the subsequent transport of U.S. dollars hand-carried by those travelers to Iran. Both Zaidi and Naqvi were arrested in Houston on August 18, 2020, as a result of this scheme.
The transfer of money was illegal because the U.S. has imposed economic sanctions on Iran since 1995. Every year since 1984, the U.S. State Department has named Iran as a state sponsor of terrorism. And on June 24, 2019, the President imposed additional sanctions on the Supreme Leader of Iran that prohibits the provision of funds to, or for the benefit of, the Supreme Leader of Iran.
This case was investigated by the FBI’s Washington Field Office and the FBI Houston Counterterrorism investigative team. The FBI’s offices in Dallas, Chicago, and Detroit all provided valuable assistance.
The case is being prosecuted by Assistant U.S. Attorneys Jolie Zimmerman, Erik Kenerson, and Maeghan Mikorski of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with Trial Attorneys Adam Small and Derek Shugert of the Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice.
Repeat child sex predator sentenced to 60 yearsRead the Press Release
GALVESTON, Texas – A 36-year-old Alvin resident has been ordered to federal prison for distribution, receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Keenan Edward Howe pleaded guilty Oct. 24, 2022.
U.S. District Judge Jeffrey Vincent Brown has now sentenced Howe to 300 months each for the distribution and receipt convictions in addition to 120 months for possession of child pornography, respectively. They will run consecutively for a total 720-month-term of imprisonment. In handing down the prison terms, the court noted the egregious nature of Howe’s conduct. He will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Howe will also be ordered to register as a sex offender. In handing down the sentence, Judge Brown reiterated the need for Howe’s sentence to reflect the offensive nature of his conduct.
In August 2022, authorities identified Howe through an undercover online investigation in which Howe communicated with someone he believed to be a father with access to minor children. Throughout the conversation, Howe expressed his desire to drug and violently sexually abuse the children. He also discussed purchasing the younger minor child for the purpose of sexually abusing her.
Further communication revealed Howe also admitted to sexually abusing multiple minor victims. Law enforcement subsequently arrested Howe prior to a scheduled meeting with the “father.”
Two months before the conversations, Howe was previously released from prison for offenses involving the sexual abuse of a minor.
Howe will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Luis Batarse prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Regional Leader of Sanctioned Russian Organization Pleads Guilty to Lying to FBIRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of TOMAS IANCHAUSKAS, a regional leader of a sanctioned Russian Organization known as the Tsargrad Society (the “Society”), for lying to the Federal Bureau of Investigation (“FBI”) about his participation in the Society and its predecessor during an in-person interview in the U.S. IANCHAUSKAS pled guilty before U.S. District Judge Coleen McMahon and is scheduled to be sentenced on July 11, 2024.
U.S. Attorney Damian Williams said: “While enjoying the benefits of U.S. permanent residency, Tomas Ianchauskas served as a regional leader of the Tsargrad Society, a sanctioned Russian organization controlled by sanctioned oligarch Konstantin Malofeyev, who was previously indicted by this Office for willfully violating U.S. sanctions laws. On two separate occasions, Ianchauskas lied to the FBI, falsely claiming that he had no involvement in the Tsargrad Society whatsoever, and no involvement in its predecessor entity the Double Headed Eagle Society for the three prior years. Together with our law enforcement partners, we will continue to hold accountable those who seek to undermine critical sanctions put in place to challenge Russia’s aggression.”
According to the Complaint previously filed against IANCHAUSKAS, the Information, and other filings:
IANCHAUSKAS is a U.S. green card holder who principally resides in Russia. By operation of the Ukraine-Related Executive Orders 13660, 13661, 13662, and 14024, IANCHAUSKAS is prohibited from, among other things, making any contribution or provision of funds, goods, or services to or for the benefit of sanctioned Russian oligarch Konstantin Valeryevich Malofeyev or certain Malofeyev-controlled designated entities, including the Society, formerly known as the Double Headed Eagle Society (“DHES”).
The Office of Foreign Assets Control (“OFAC”) initially designated Malofeyev in 2014, explaining that he was one of the main sources of financing for Russians promoting separatism in Crimea and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of, the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk. The Society was designated by OFAC in or about April 2022 for being owned or controlled by, or for having acted or purported to act for or on behalf of, Malofeyev. As described by OFAC, the Society was formerly known as DHES, a Russia-registered organization which has been accused of involvement in espionage on behalf of Russia. OFAC further explained that the Society is part of Malofeyev’s “malign influence ecosystem” and “advocates for Russia to return to a monarchical system of government and counts among its core principles revanchist aims like the ‘reunification of the Russian people’ and ‘returning the Russian Empire to its historical borders’ — to include, in the Society’s definition, Ukraine, Belarus, the Baltic States, Moldova, Central Asia, and the Caucasus.”[1]
Following OFAC’s designations, on or about April 6, 2022, this Office indicted Malofeyev on one count of conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”) and one count of violation of IEEPA.
On or about January 12, 2022, during an in-person interview with FBI agents in the Southern District of New York, IANCHAUSKAS falsely stated, in substance and in part, that he had no involvement in the Society whatsoever, he had no involvement with DHES for approximately three years, and he never had a leadership position at DHES and never did anything on behalf of DHES. In truth and in fact, and as IANCHAUSKAS knew, from at least in or about 2020 through in or about 2022, IANCHAUSKAS served as the head of the Penza Regional Branch of DHES, which in or about November 2020 was renamed the Society. In his leadership capacity, IANCHAUSKAS planned DHES events in Russia and received funding from DHES in or about 2020, among other times.
Subsequent to his interview with the FBI in January 2022, IANCHAUSKAS continued his membership in the Society and provided services to the Society. In or about April 2023, when inviting individuals to attend an event with Malofeyev in Penza, Russia, IANCHAUSKAS wrote, among other things, “we are his regional department,” and distributed a photograph of Malofeyev with the message, in part and substance, “it is thanks to him and his subordinates that Crimea was joined to Russia and Donbass began to be joined.” During a second interview with the FBI on December 22, 2023, IANCHAUSKAS reiterated certain false statements, including that he had never been a member of the Society.
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IANCHAUSKAS, 39, a U.S. green card holder principally residing in Russia, pled guilty to one count of making false statements to special agents of the FBI, which carries a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Thane Rehn and Vladislav Vainberg are in charge of the prosecution.
[1] U.S. Department of Treasury, Press Release “U.S. Treasury Designates Facilitators of Russian Sanctions Evasion,” available online https://home.treasury.gov/news/press-releases/jy0731
Recidivist Sex Offender Sentenced for Possessing Deepfake Child Sexual Abuse MaterialRead the Press Release
A Pennsylvania man was sentenced yesterday to 14 years and seven months in prison for possessing deepfake child sexual abuse material (CSAM) depicting numerous child celebrities.
According to court documents and evidence presented at trial, on two separate occasions, James Smelko, 57, of Pittsburgh, possessed and accessed pictures that digitally superimposed the faces of child actors onto nude bodies and bodies engaged in sex acts. Smelko possessed the pictures at his home in Pittsburgh. After law enforcement discovered the pictures during a search of Smelko’s computer, he was charged for possessing CSAM. While pending trial, Smelko was found to have violated his conditions of pretrial release by again accessing such images after incriminating web searches and images were detected by court-mandated monitoring software installed on his cell phone.
In November 2023, a federal jury in Pittsburgh convicted Smelko of one count of possessing child pornography and one count of accessing with the intent to view child pornography.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania; and Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office investigated the case.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Mitchell for the Western District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Recidivist Sex Offender Sentenced for Possessing Deepfake Child Sexual Abuse MaterialRead the Press Release
A Pennsylvania man was sentenced yesterday to 14 years and seven months in prison for possessing deepfake child sexual abuse material (CSAM) depicting numerous child celebrities.
According to court documents and evidence presented at trial, on two separate occasions, James Smelko, 57, of Pittsburgh, possessed and accessed pictures that digitally superimposed the faces of child actors onto nude bodies and bodies engaged in sex acts. Smelko possessed the pictures at his home in Pittsburgh. After law enforcement discovered the pictures during a search of Smelko’s computer, he was charged for possessing CSAM. While pending trial, Smelko was found to have violated his conditions of pretrial release by again accessing such images after incriminating web searches and images were detected by court-mandated monitoring software installed on his cell phone.
In November 2023, a federal jury in Pittsburgh convicted Smelko of one count of possessing child pornography and one count of accessing with the intent to view child pornography.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania; and Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office investigated the case.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Mitchell for the Western District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Readout of Justice Department’s Civil Rights Division’s Meeting with Jewish Community StakeholdersRead the Press Release
Marking the first day of Jewish American Heritage Month, the Justice Department convened an interagency meeting with Jewish community stakeholders. Attorney General Merrick B. Garland spoke with those at the meeting and underscored the Department’s commitment to addressing antisemitic hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined the enforcement efforts across the Department and highlighted actions to prevent and combat hate crimes.
Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office of Privacy and Civil Liberties, and Community Oriented Policing Service heard from attending organizations on antisemitic hate crimes and reporting, safety on campuses and in schools, the intersection of antisemitism and democracy and discrimination in employment. Representatives from other federal government agencies were also in attendance, including the Equal Employment Opportunity Commission, and the Departments of Education, Housing and Urban Development, Labor, and Homeland Security.
This convening occurred alongside a precipitous increase in the volume and frequency of threats against Jewish communities across the country, and many Jewish communities expressing fear for their peace and safety.
Combating hate crimes and incidents is among the Department’s top priorities. Today’s meeting represents the Department’s latest efforts to engage with organizations and stakeholders on issues affecting the Jewish community. In March, the Department hosted a community safety briefing for Jewish community stakeholders, during which the Department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin, and protections afforded by Religious Land Use and Institutionalized Persons Act (RLIUPA) local land use decisions.
The Department has also continued to prosecute antisemitic hate crimes, including recent cases involving a former Cornell University student who issued threats to kill or injure Jewish students on campus; a California man who firebombed a Planned Parenthood clinic in Southern California and had planned home invasions of Jewish homes in Los Angeles; a California rideshare driver charged with a federal hate crime for an assault on a passenger who he perceived to be Jewish or Israeli; and an Oregon man charged with hate crimes for defacing a synagogue in Eugene.
If you believe that you or someone else experienced religious or national origin discrimination, report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov. Learn more about the Department’s work on hate crimes here.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Chief District Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person. The sentencing took place on April 26, 2024.
Tristan Alvie Habben, 22, was sentenced to three years and two months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Habben was indicted for Possession of a Firearm and Ammunition by a Prohibited Person by a federal grand jury in October of 2023. He pleaded guilty on January 31, 2024.
The charge relates to Habben, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Taurus model PT740, .40 Smith & Wesson caliber, semi-automatic pistol and rounds of Winchester .40 Smith & Wesson caliber ammunition in Rapid City in August of 2023.
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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Habben was immediately remanded to the custody of the U.S. Marshals Service.
Possession of Heroin and Illegal Possession of Stolen Firearms Lands Two South Louisiana Men in Federal PrisonRead the Press Release
LAFAYETTE/LAKE CHARLES, La. – United States Attorney Brandon B. Brown the sentencing of two defendants yesterday in both the Lafayette and Lake Charles Divisions of the Western District of Louisiana.
Daryl Beloney, Sr., 50, of Lake Charles, Louisiana, was sentenced by United States District Judge James D. Cain, Jr. to 120 months in prison, followed by 3 years of supervised release, for possession of stolen firearm or ammunition. On April 1, 2022, law enforcement agents with the Combined Anti-Drug Task Force executed a search warrant at a residence on Vanessa Avenue in Calcasieu Parish. During the search, agents discovered a Taurus Millennium PT 145, a Ruger P90, and a Beretta M1934 pistol, in addition to an assortment of controlled substances, including 7.4 pounds of marijuana. Beloney admitted to law enforcement agents that he possessed the firearms and that he had reasonable cause to believe that one of the firearms had been stolen and pleaded guilty to the charge on January 25, 2024.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Combined Anti-Drug Task Force and prosecuted by Assistant United States Attorney Lauren L. Gardner.
In a separate and unrelated case, United States District Judge S. Maurice Hicks, Jr. sentenced Montel Joseph Wilridge, 30, of Lafayette, Louisiana, to 120 months in prison, followed by 4 years of supervised release, for possession with intent to distribute heroin and being a felon in possession of firearms. On March 6, 2021, agents with the Lafayette Parish Sheriff’s Office executed a search warrant at a residence in Lafayette. During their search, agents discovered a large amount of marijuana and other various controlled substances packaged in individual ounce bags, as well as a digital scale and three firearms. Agents later learned that the Sig Sauer P365 and Taurus Millennium pistols recovered had both been reported as stolen. Agents also recovered suspected heroin with an approximately weight of 149 grams. The suspected heroin was sent to the DEA Southeast Laboratory for testing and confirmed to be heroin with a net weight of 141.2 grams. Wilridge pleaded guilty to the two charges on December 28, 2023.
The case was investigated by the DEA, ATF, and Lafayette Parish Sheriff’s Office Narcotics Unit and prosecuted by Assistant United States Attorney Casey Richmond.
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Portland Man Pleads Guilty to Bank Fraud, Identity TheftRead the Press Release
PORTLAND, Maine: A Portland man pleaded guilty today in U.S. District Court in Portland to conspiracy to commit bank fraud and aggravated identity theft.
According to court records, from May to June 2022, Paul Logugune, 22, and a coconspirator broke into unattended vehicles to steal purses and wallets to obtain driver’s licenses and checkbooks. Forged checks were then drawn on the stolen checkbooks and made payable to the names on the stolen licenses. They then recruited others to cash the forged checks at multiple credit union branches in Cumberland County using the stolen IDs to impersonate the ID theft victims.
Logugune faces a maximum sentence of 30 years followed by up to five years of supervised release. He also faces a fine of up to $1 million. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
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Phoenix Man Sentenced to 8.5 Years in Prison for Involvement in Murder-for-Hire PlotRead the Press Release
PHOENIX, Ariz. – Ali Joseph, 44, of Phoenix, was sentenced on Monday by United States District Judge Diane J. Humetewa to 102 months in prison, followed by three years supervised release. Joseph pleaded guilty on December 12, 2023, to one count of Use of Interstate Commerce Facilities in the Commission of Murder for Hire.
Between May and August 2022, while Joseph was involved in contentious child-custody proceedings with the victim, Joseph had multiple in-person and electronic communications with an individual who was a Confidential Human Source (CHS) for the FBI. In these communications with the CHS, Joseph revealed that he was unwilling to share custody of his children with the victim because he believed her to be an “apostate” who would not raise his children on “the right path,” and he expressed his desire to have her murdered. Thereafter, the CHS introduced Joseph to an undercover FBI employee who Joseph believed was a hitman. Joseph offered to pay the “hitman” $3,000 to disguise himself as a homeless person who would attempt to rob and violently attack the victim as she left her workplace. Joseph provided the CHS with a $1,000 down payment along with a piece of paper containing photographs of the victim and her identifying information. Joseph told the CHS that he wanted the “hitman” to stab the victim in the neck to ensure she would not survive the attack, and asked the CHS to notify him when the murder was completed by sending him a funny photo or short video.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution.
CASE NUMBER: CR-22-01070-PHX-DJH
RELEASE NUMBER: 2024-056_Joseph# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Pennsylvania Man Sentenced to over 4 Years in Federal Prison for Participating in Multi-State Pandemic Unemployment Insurance Fraud SchemeRead the Press Release
DETROIT - A man from Harrisburg, Pennsylvania was sentenced yesterday for his role in a multi-state, million-dollar unemployment insurance fraud scheme aimed at defrauding the U.S. Government and the states of Michigan, Pennsylvania, and Maryland, of funds earmarked for unemployment assistance during the COVID-19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Special Agent in Charge Charles Miller, Internal Revenue Service-Criminal Investigation, and Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Adrian Fluellen, 29, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence handed down by United States District Judge Matthew F. Leitman.
According to court records, Fluellen and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic. The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.
Fluellen pleaded guilty to wire fraud and conspiracy to commit wire fraud in February 2024.
Fluellen and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent. The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Fluellen, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included jewelry, drugs, at least one vehicle, and at least one firearm.
“Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in less money and fewer resources being available for those genuinely in need at that challenging time” said U.S. Attorney Dawn Ison. “Along with our law enforcement partners, our office will continue to work to hold individuals who have committed and are committing such crimes of fraud, greed, and avarice responsible. “
"This sentence underscores the FBI's commitment to investigating complex financial crimes," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice."
“Pandemic Unemployment assistance granted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act was meant to be a lifeline for those affected the most by the global covid-19 pandemic, not as an unlimited well of funds for Adrian Fluellen,” said Special Agent in Charge Charles Miller, Detroit Field Office, IRS Criminal Investigation (CI). “Not only did Mr. Fluellen defraud the US government, but he also stole the identities of hundreds of victims, jeopardizing the personal security of countless hard-working Americans. CI and our law enforcement partners are dedicated to holding accountable those who intend to game the system to feed their own unchecked greed.”
"Adrian Fluellen defrauded multiple state workforce agencies by using stolen identities to obtain unemployment insurance (UI) benefits. We will continue to work with our law enforcement and state workforce agency partners to protect the integrity of these critical benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan. The investigation was conducted jointly by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, and Department of Labor, Office of Inspector General.
Pennsylvania Man Convicted for Kidnapping and Death of Woman Whose Body Was Found in Nevada DesertRead the Press Release
LAS VEGAS – A federal jury convicted a Pennsylvania resident today for kidnapping a woman in Pennsylvania then driving her to Nevada and killing her in the desert.
John Matthew Chapman, 44, was found guilty of one count of kidnapping resulting in death. United States District Judge James C. Mahan scheduled a sentencing hearing for August 2, 2024. Chapman faces the maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents and evidence presented during the eight-day trial, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim in approximately two months, but they had observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found identification cards with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.
On November 15, 2019, Bethel Park Police Department detectives arrested and interviewed Chapman. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania, to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim before their departure to Nevada. Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a bondage photo shoot, Chapman bound the victim’s hands and feet with plastic zip ties and affixed her to a signpost. Then he applied duct tape to her mouth and nose and watched her die from asphyxiation.
The joint investigation revealed that Chapman returned to Pennsylvania. He pretended to be the victim, including using the victim’s Facebook messenger account, and he continuously used the victim’s residence and money following her death.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement.
The FBI Las Vegas Division, the Lincoln County Sheriff’s Office in Nevada, and the Bethel Park Police Department in Pennsylvania investigated the case. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Steven Rose are prosecuting the case.
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Owner of Suburban Chicago Medical Supply Company Convicted in Procurement Fraud Scheme at U.S. Department of Veterans AffairsRead the Press Release
CHICAGO — The owner of a suburban Chicago medical supply company has been convicted of federal fraud charges for paying kickbacks to a U.S. Department of Veterans Affairs employee in exchange for procuring orders of medical equipment.
After a week-long trial in U.S. District Court in Chicago, the jury on Monday found DARREN A. SMITH, 59, of Hazel Crest, Ill., guilty of all eight wire fraud counts against him. Each count is punishable by up to 20 years in federal prison. U.S. District Judge Edmond E. Chang set sentencing for Sept. 10, 2024.
Smith operated a medical distribution company based in Bolingbrook, Ill. Evidence at trial revealed that Smith schemed with a procurement clerk in the Veterans Health Administration Prosthetics Service in Chicago to have the VA order costly medical equipment from Smith’s company in exchange for concealed kickbacks to the clerk. The orders placed by the clerk involved unnecessary and more expensive rentals of certain medical equipment from Smith’s company instead of purchasing the equipment outright, as VA physicians had instructed. From 2017 to 2020, the VA spent more than $2.7 million at Smith’s company and fraudulently overpaid it by more than $1.3 million. In exchange, the clerk pocketed kickbacks from Smith of at least $220,000.
The VA procurement clerk, ANDREW LEE, 68, of Chicago, pleaded guilty to a wire fraud charge prior to trial. He is awaiting sentencing.
Smith’s conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office. The government is represented by Assistant U.S. Attorney Heidi Manschreck and Special Assistant U.S. Attorney Benjamin Christenson.
Orangeburg Man Sentenced to 40 Months in Federal Prison for Violent Assault on Postal WorkerRead the Press Release
COLUMBIA, S.C. — Gregory Ellison, 42, of Orangeburg, was sentenced to 40 months in federal prison after pleading guilty to assault on a federal employee.
Evidence presented to the court showed that on March 20, 2023, a U.S. Postal Mail Carrier stopped to deliver mail at a daycare facility in Orangeburg. Ellison, who had a prior relationship with the carrier, arrived at the facility. When Ellison arrived, the carrier tried to escape into the daycare, but Ellison caught her and began assaulting her inside of the facility where children and workers were present.
The carrier convinced Ellison to leave the premises and talk outside. Once outside, Ellison pinned her against the mail truck, ripped out her earing, and took her cell phone. The carrier managed to distract Ellison long enough to jump into her mail truck and drive away. However, Ellison caught up to the truck, punched the carrier in the head, and pulled her out of the moving vehicle by her hair causing her to land on dirt and concrete resulting in visible injuries. The truck continued to roll and crashed into a nearby ditch.
Further investigation revealed that Ellison previously visited the carrier’s place of employment multiple times in the weeks leading up to the assault. Additionally, Ellison’s social media revealed he had sent multiple messages to the victim before and after the assault threatening to kill her with a firearm. Prior to the assault, he also sent messages to two other individuals asking for a firearm. Ellison has prior convictions for domestic violence 3rd degree and harassment 2nd degree.
“Keeping our citizens, and federal workers, safe is a core to our mission,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Such intentional violence against federal workers will be prosecuted.”
“While this incident stemmed from domestic violence, this sentencing clearly illustrates that individuals who endanger the safety and wellbeing of USPS workers will be held accountable for their actions,” said Tommy D. Coke, Inspector-in-Charge of the Atlanta Division of the U.S. Postal Inspection Service.
United States District Judge Sherri A. Lydon sentenced Ellison to 40 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the U.S. Postal Inspection Service, the Orangeburg County Sheriff’s Office, and the Calhoun County Sheriff’s Office. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
Newburgh Woman Charged with Defrauding Military Charities and the Veteran’s Administration and with Fraudulently Claiming to Be A Purple Heart RecipientRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging SHARON TONEY‑FINCH with defrauding military charities and the Veteran’s Administration (“VA”) and with fraudulently claiming to have received a Purple Heart. TONEY-FINCH was arrested today and will be presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Damian Williams said: “As alleged, Sharon Toney-Finch falsely claimed to have received a military award bestowed on those wounded or killed in the line of duty, and she used this lie to drive donations to her charitable organization, which in fact was a ruse the defendant allegedly used to line her own pockets. The defendant’s alleged crimes are dishonorable to the highest degree, and I thank the career prosecutors of this Office and our law enforcement partners for bringing today’s charges and exposing Toney-Finch’s attempt to profit on stolen valor.”
FBI Assistant Director in Charge James Smith said: “Sharon Toney-Finch allegedly engaged in a series of lies in which she misappropriated donations for military charities and falsely nominated herself as a Purple Heart recipient to receive illicit disability benefits. Acts of stolen valor are especially egregious as they distract from sacrifices of those who were truly injured defending our nation. The FBI does not tolerate those who choose to perpetuate fraudulent schemes at the expense of our armed forces and will continue to aggressively investigate those who choose to do so.”
As alleged in public court filings and the Indictment unsealed today in White Plains federal court:[1]
Between at least July 2019 through about September 2023, TONEY-FINCH engaged in a scheme to defraud donors to her charitable organization by falsely claiming that donation funds would be spent solely to support homeless military veterans, when in fact she spent the funds on personal expenses. She further falsely claimed that she survived and was injured in a terrorist attack to a vehicle convoy in Iraq in or about March 2010 and that she is a Purple Heart recipient.
Between at least March 2016 through the present, TONEY-FINCH knowingly obtained hundreds of thousands of dollars in disability benefits from the VA by fraudulently representing that, during her military service in Iraq, she sustained combat-related injuries during a mortar attack in or about February 2010 and a vehicle rollover that occurred in or about March 2010.
Between about August 2021 through the present, TONEY-FINCH has falsely claimed that she is a Purple Heart recipient in statements made to donors to her charitable organization, an application to the New York Department of Motor Vehicles to obtain a vanity license plate, and an application to the National Purple Heart Hall of Honor to obtain a medallion and recognition on their website. TONEY-FINCH has also used, possessed, and exhibited a military discharge certificate that had been altered to reflect falsely that she is a Purple Heart recipient.
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TONEY-FINCH, 43, of Newburgh, New York, is charged with wire fraud, which carries a maximum potential sentence of 20 years in prison; theft of government funds, which carries a maximum potential sentence of 10 years in prison; stolen valor, which carries a maximum potential sentence of one year in prison; and altering military discharge paperwork, which carries a maximum potential sentence of one year in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of the FBI Hudson Valley White Collar Crime Task Force, the Orange County District Attorney’s Office, the Orange County Sheriff’s Office, the U.S. Department of Veterans Affairs – Office of Inspector General, and the U.S. Army Criminal Investigation Division.
This case is being handled by the Office’s White Plains Division. Assistant U. S. Attorneys Ryan W. Allison and Margaret N. Vasu are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Morgantown Man Charged with Theft of Federal Broadband FundingRead the Press Release
CLARKSBURG, WEST VIRGINIA – The owner of Clearfiber, Inc., an internet service provider in Monongalia County, has been charged with money laundering.
Timothy Chad Henson, 35, of Morgantown, West Virginia, allegedly defrauded the United States Department of Agriculture (USDA). According to court documents, the USDA’s Community Connect Program offered grants to eligible applicants providing broadband services to rural areas. On behalf of Clearfiber, Henson applied and was awarded $1.96 million to offer high-speed internet services in Monongalia and Marion Counties. Henson submitted false invoices to the USDA to receive more than $340,000. Henson then transferred $322,900 into another bank account for his personal use.
Henson faces up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Henson is scheduled for an initial appearance on May 29 before U.S. Magistrate Judge Michael John Aloi.
Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government.
This case was investigated by the Internal Revenue Service-Criminal Investigations.
An information is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Montgomery County Resident Sentenced for Transmitting Threats to North Carolina Jewish OrganizationRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 18 months in prison, after pleading guilty to one count of communicating threats in interstate commerce, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
JEFFREY SCOTT HOBGOOD, age 64, of Troy, North Carolina, was sentenced to an 18-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC, to be followed by a 3-year term of supervised release and 20 hours of community service weekly for twelve weeks. He pleaded guilty on January 3, 2024, to communicating threats in interstate commerce, a violation of Title 18, United States Code, Section 875(c).
According to court records, on October 11, 2023, HOBGOOD sent a threatening email to a Jewish organization located in Charlotte, North Carolina, addressing the recipients as “Israeli jews of David star,” and threatening to “take every one of you out,” writing that “you semite [sic] pieces of s- will be annihilated.” Two days later, HOBGOOD sent a second threatening email to the same organization, again making a reference to the religion of the recipients. In his plea agreement, HOBGOOD admitted that he selected the targets of his offense of conviction because of the actual and perceived religion of the victims.
"It is abhorrent to threaten someone with violence because of who they are or how they worship. The FBI worked tirelessly with prosecutors from the U.S. Attorney’s Office for the Middle District Of North Carolina to ensure Jeffrey Hobgood could not offer excuses for his hate-filled messages and would instead, serve time in federal prison," said Robert M. DeWitt, the FBI Charlotte Special Agent in Charge.
The case was investigated by the Federal Bureau of Investigation’s civil rights and public corruption squad, the Troy Police Department, and the Charlotte-Mecklenburg Police Department. The case was prosecuted by Assistant United States Attorneys JoAnna G. McFadden and Ashley R. Waid.
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Michigan Woman Sentenced to 78 Months in PrisonRead the Press Release
FORT WAYNE – Erin Alldredge, 42 years old, of Sturgis, Michigan, was sentenced by United States District Court Chief Judge Holly A. Brady, after pleading guilty to three counts of Distribution of Methamphetamine, announced United States Attorney Clifford D. Johnson.
Alldredge was sentenced to 78 months in prison followed by 3 years of supervised release.
According to documents in the case, on three separate occasions in September 2022, Alldredge sold 180 grams of pure methamphetamine in Howe, Indiana.
This case was investigated by the Federal Bureau of Investigation with assistance from the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Mexican citizen imprisoned for downloading sexually explicit videos of minorsRead the Press Release
McALLEN, Texas – A 32-year-old Mexican man residing in Donna has been sentenced for using peer-to-peer (P2P) applications to download child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Angel DeJesus Torres pleaded guilty Jan. 19.
Chief U.S. District Judge Randy Crane has now ordered Torres to serve 72 months in federal prison. At the hearing, the court heard additional information that Torres used numerous P2P applications to download child pornography. Torres was found in possession of 43 videos child pornography which equated to 3,225 images including prepubescent children aged four to nine as well as minors subjected to acts of bondage. Torres was further ordered to pay $45,000 in restitution to the victims. He will also serve five years on supervised release following completion of his prison term. Torres will also be ordered to register as a sex offender and as a non-U.S. citizen, he is expected to face removal proceedings.
In October 2018, authorities conducted an investigation identifying persons using P2P software to traffic in child pornography. During that time, they identified an IP address in Donna offering to participate in the distribution of images and child pornography.
In May 2019, authorities executed a federal search warrant at the address in Donna and identified Torres as one of the occupants. At that time, law enforcement seized two cellphones including Torres’ personal phone. Forensic analysis of Torres’ phone revealed 43 videos of child pornography including prepubescent minors under the age of 12.
Torres admitted to frequently downloading, receiving and possessing child pornography.
Torres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation. Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mexican National Pleads Guilty to Cocaine Conspiracy After Officers Seize $1 Million Worth of Cocaine in I-70 Traffic StopRead the Press Release
KANSAS CITY, Mo. – An Oklahoma City, Oklahoma, man has pleaded guilty to his role in a conspiracy to distribute cocaine after law enforcement officers seized more than $1 million worth of cocaine from a rental truck that was stopped on Interstate 70 in Lafayette County, Mo.
Luis Gerardo Nieto-Acosta, 37, a citizen of Mexico, pleaded guilty before U.S. District Judge Stephen R. Bough on Monday, April 29, to one count of conspiracy to distribute cocaine, one count of possessing cocaine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime.
Nieto-Acosta, the fourth and final defendant to plead guilty in this case, entered his plea on the day his trial was scheduled to begin. Co-defendants Wilmer Antony Mendoza-Perez, 25, a citizen of Honduras, and Miguel Angel Anguiano-Viera, 27, both of Oklahoma City, and Jose Eduardo Acosta-Bermejo, 29, a citizen of Mexico, of Bethany, Okla., also have pleaded guilty to their roles in the drug-trafficking conspiracy.
An officer with the Missouri State Highway Patrol stopped Mendoza-Perez on Jan. 24, 2023, as he was driving a Penske rental truck eastbound on Interstate 70 in Lafayette County. A Toyota Highlander, later determined to be occupied by Nieto-Acosta and Acosta-Bermejo, attempted to prevent the officer from getting behind the Penske truck to initiate a stop. When the Penske truck pulled over, the Toyota Highlander continued traveling eastbound on Interstate 70.
According to the rental agreement for the Penske truck, it was rented in Oklahoma City on Jan. 20, 2023, by a woman who was not present in the truck, and scheduled to be returned to Fullerton, California, on Jan. 26, 2023. Mendoza-Perez could not explain why he was driving the truck in Missouri.
The officer searched the rear cargo area of the truck and found two boxes that contained a total of 34 kilograms of cocaine. The average street price in the Kansas City metropolitan area for a kilogram of cocaine was approximately $30,000 at that time, which would make 34 kilograms of cocaine worth approximately $1,020,000.
Mendoza-Perez was arrested. The Toyota Highlander was found abandoned at the Pilot truck stop a few miles away. Investigators later searched the Highlander and found two Taurus 9mm semi-automatic handguns, with four magazines and 9mm ammunition.
Investigators reviewed surveillance video at the truck stop, which showed a third vehicle, a Honda Pilot occupied by Anguiano-Viera and a juvenile female, arrived at the truck stop and picked up Nieto-Acosta and Acosta-Bermejo. A short time later, this vehicle was located, and the occupants arrested when they stopped at a convenience store in Odessa, Mo.
Under federal statutes, Nieto-Acosta is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Robert M. Smith and John C. Constance. It was investigated by the Lafayette County, Mo., Sheriff’s Office, the Kansas City Airport Police, the Missouri State Highway Patrol, and the Drug Enforcement Administration.
Manhattan Man Charged with Running $43 Million Ponzi SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging IDIN DALPOUR with wire fraud in connection with a multi-year Ponzi scheme that defrauded investors of at least $43 million. DALPOUR was arrested this morning and will be presented in Manhattan federal court before U.S. Magistrate Judge Barbara Moses later today.
U.S. Attorney Damian Williams said: “Idin Dalpour told investors that they could reap huge returns by investing through him in a purported Las Vegas hospitality business and a crypto trading operation. As alleged, Dalpour’s promises were a mirage, and he was running a classic Ponzi scheme by paying investors purported returns with other investors’ money. Instead of using investors’ funds as promised, Dalpour spent lavishly on himself, which included racking up gambling losses of approximately $1.7 million and paying for his children’s private school tuition. Now, Dalpour’s gamble has him facing federal criminal charges for his alleged crimes.”
FBI Assistant Director in Charge James Smith said: “For four years, Idin Dalpour allegedly used false promises of high returns to entice victims to invest in his purported hospitality and cryptocurrency trading enterprises, but in reality, used these payments to satisfy other debts or personal expenditures. Cheating investors of millions severs the trust of clients and credibility of prospective advisors, both of which are vital to the success of the investment market. Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others.”
According to allegations contained in the Indictment:[1]
From at least approximately 2020 through April 2024, DALPOUR ran a Ponzi scheme targeting investors located in the U.S. and abroad. DALPOUR solicited investments from victims through an entity that he controlled (“Entity-1”), which purported to have an interest in two business ventures: a Las Vegas hospitality enterprise and a cryptocurrency trading enterprise. In reality, DALPOUR did not use investors’ funds as promised and paid earlier investors purported returns using funds that were contributed by later investors. DALPOUR defrauded investors of at least $43 million over the course of the scheme.
As part of the purported Las Vegas hospitality enterprise, DALPOUR falsely represented that Entity-1 had contracted with a management company (the “Management Company”) and/or a prominent Las Vegas hotel (the “Hotel”) to rent condominiums to Las Vegas visitors for a fee. DALPOUR further claimed that the Hotel arranged entertainment packages for these visitors, including food, nightlife, and sports events, and that DALPOUR and Entity-1 received a portion of these proceeds. DALPOUR also falsely claimed that he owned shares in several Las Vegas-based sports stadiums (the “Stadiums”) and would receive a portion of concessions revenues when these visitors went to the Stadiums.
DALPOUR lured investors into the Las Vegas hospitality enterprise through false promises of lucrative returns beginning at 42% interest per year. In order to further the fraud, DALPOUR provided certain investors with fabricated contracts between Entity-1, the Management Company, and the Stadiums. DALPOUR also fabricated email correspondence from the Hotel falsely claiming that his company, Entity-1, was owed millions of dollars and created phony bank statements overstating the assets in Entity-1’s bank accounts. DALPOUR also claimed that investors’ money was safe because it was insured and/or would be held in escrow. These statements were false.
In connection with the Ponzi scheme, DALPOUR further misrepresented a so-called cryptocurrency trading enterprise that DALPOUR purportedly operated. As part of the cryptocurrency trading scheme, DALPOUR falsely represented to investors that he purchased cryptocurrency at wholesale and sold the cryptocurrency at a profit to retail investors. As with the Las Vegas hospitality enterprise, DALPOUR promised investors lucrative annual returns and that their money was insured. These statements were false.
In reality, DALPOUR did not use investor money for the Las Vegas hospitality enterprise or the cryptocurrency trading enterprise. Instead, DALPOUR used investor money to pay other investors their expected returns, as well as to pay for his own personal expenses. These personal expenses included, among other things, approximately $1.7 million in gambling losses, over $400,000 from Art Direct, and private school tuition for his children.
DALPOUR also lied to investors when they sought to recoup their money. Among other things, DALPOUR claimed that his company’s funds were temporarily frozen because the Hotel’s servers had been hacked and that the Nevada-based bank allegedly holding Entity-1’s funds would not release the proceeds. In fact, Entity-1 did not even have a bank account with the Nevada-based bank, as DALPOUR well knew.
In or about November 2023, a group of victims confronted DALPOUR about the Ponzi scheme. During this conversation, DALPOUR admitted that he had lied to the victims about the operation of the Las Vegas hospitality business, that he had not used investor money for its intended purpose, and that he had fabricated contracts and bank records that he had provided to the victims. DALPOUR further stated, in his own words, “[w]hat you already have, you have, you can put me in jail now. Like right now.”
If you believe you are a victim of these crimes, please contact the FBI at 1-800-CALL-FBI and reference this case.
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DALPOUR, 39, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Mathew Andrews and Kingdar Prussien are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Convicted of Sex Trafficking A Child, Other CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Terrence Clay, age 39, of Kent County, on all charges: (1) sex trafficking of a child; (2) sexual exploitation of a child; and (3) distribution of child pornography. Clay is scheduled to be sentenced on September 17, 2024.
“Treating his victim like nothing more than property, Terrence Clay repeatedly ordered a minor to sell herself for sex,” said U.S. Attorney Mark Totten. “Today’s guilty verdict on all counts secures a measure of justice for the victim and the entire community who is harmed by these heinous crimes. Working with our law enforcement partners, social service providers, and others we will continue our efforts to end the scourge of human trafficking.”
Evidence introduced at trial showed that Clay met the minor victim at a park in the City of Grand Rapids in early October 2022. He had sex multiple times with the victim and ordered her to have sex with other men for money, at one point directing her to “make a sign” and “panhandle,” offering specific sex acts at set prices. After securing nude images of the minor victim, Clay advertised her online.
Police found the minor victim in a library, and she was taken to a foster home in the Upper Peninsula, while law enforcement began its investigation. Meanwhile, Clay located the minor victim and picked her up at her foster home early on the morning of November 12, 2022, without the knowledge of the foster family. Shortly after crossing south of the Mackinac Bridge, law enforcement pulled over the vehicle and found the minor victim in the car with the defendant.
“The conviction of Terrence Clay is a testament to the exceptional investigative work carried out by our WEBCHEX task force in partnership with law enforcement agencies to combat child trafficking,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We are committed to doing everything in our power to protect our children from exploitation and will continue to work tirelessly towards this goal.”
“Our Human Trafficking Task Force continues to make progress in prosecutions and building relationships with area victim service providers to further enhance Kent County’s response to sex and labor trafficking,” said Kent County Sheriff Michelle LaJoye-Young. “It is not lost on us the impact these horrible crimes have on victims and our overall community.”
The case was investigated by the Kent County Sheriff’s Office, the FBI, Kentwood Police Department, Forsythe Police Department, Cheboygan Sheriff’s Office, Tuscarora Township Police Department, the Michigan State Police and prosecuted by Assistant United States Attorney Constance Turnbull.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office for the Western District of Michigan; county prosecutor’s offices; HSI; Michigan State Police’s Internet Crimes Against Children task force; the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Anyone with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, please visit: https://www.justice.gov/usao-wdmi/project-safe-childhood.
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Maida Pharmacy, Inc. Agrees to Pay $25,000 to Resolve Allegations of Inadequate RecordkeepingRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached a $25,000 settlement with the Arlington-based retail and compounding pharmacy Maida Pharmacy, Inc. (Maida) to resolve allegations that it failed to maintain adequate records of controlled substances and improperly disposed of controlled substances.
The Controlled Substances Act (the Act) regulates the manufacturing, purchasing, distribution and maintenance of certain controlled substances. Pursuant to the Act, Maida was required to keep records and follow security protocols for its controlled substances.
As part of the settlement, Maida admitted that during an inspection, the Drug Enforcement Administration found that Maida did not have in place proper security protocols or maintain appropriate records for controlled substances. Maida also admitted that it had not conducted its mandatory inventory accountability audit and failed to maintain an appropriate security system for its controlled substances. Additionally, Maida admitted that, on several occasions, its employees disposed of Ketamine by placing it in the curbside trash, rather than properly destroying it in a manner consistent with the Act.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Assistant U.S. Attorney Julien M. Mundele of the Affirmative Civil Enforcement Unit handled the case.
Magnolia Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Magnolia man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Edward Dewayne Cockerham, 35, of Magnolia, Mississippi was found in possession of a firearm by Mississippi Bureau of Narcotics agents and a Pike County Sheriff’s deputy during a traffic stop. Cockerham had a prior felony conviction for failing to support minor children and was on supervised probation at the time he possessed the firearm.
Cockerham was indicted by a federal grand jury for possessing the firearm as a convicted felon. He is scheduled to be sentenced on August 1, 2024, and faces a maximum penalty of 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The Mississippi Bureau of Narcotics, Pike County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Long Island Woman Arrested for Selling Misbranded and Adulterated Weight Loss Drugs, Including Ozempic, on TikTokRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Fernando P. McMillan, the Special Agent in Charge of the New York Field Office of the Office of Criminal Investigations of the U.S. Food and Drug Administration (“FDA”), announced the unsealing of a criminal Complaint in Manhattan federal court charging ISIS NAVARRO REYES, a/k/a “Beraly Navarro,” with receipt of misbranded drugs in interstate commerce and subsequent delivery thereof, dispensing prescription drugs without a prescription, conspiracy to introduce and deliver for introduction misbranded drugs in interstate commerce, and smuggling. As alleged in the Complaint, from about November 2022 through about January 2024, REYES marketed, advertised, and sold various misbranded weight loss drugs that require a prescription, including Ozempic, Mesofrance, and Axcion, to followers on social media. REYES, who is not licensed by law to prescribe or administer prescription medication, obtained the weight loss drugs that she held for sale from Central and South America. None of the weight loss drugs that REYES sold were approved for sale or dispensing in the United States by the FDA. REYES was arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Barbara Moses.
U.S. Attorney Damian Williams said: “As alleged, Isis Navarro Reyes used her social media following to sell weight loss drugs unapproved for distribution in the United States. Reyes’s alleged unlawful dispensing of these drugs caused significant, life-threatening injuries to some victims and put all of her victims in harm’s way. Recently, public interest in semaglutide and weight loss drugs has skyrocketed, and criminals have sought to take advantage of this interest for their ends. With this, the first misbranding and adulteration charges brought pertaining to Ozempic, Reyes will be held accountable for her conduct, and criminals should think twice before trying to sell weight loss drugs without a license to do so. This case makes clear that extreme caution and physician consultation should always be taken when purchasing medications, especially on social media.”
FDA Office of Criminal Investigations Special Agent in Charge Fernando P. McMillan said: “Selling misbranded prescription drugs, particularly injectable products that should be sterile, in the U.S. marketplace puts all consumers’ health at risk. We will continue to pursue and bring to justice those who jeopardize the public’s health by selling misbranded drugs.”
As alleged in the Complaint:[1]
From about November 2022 through about November 2023, ISIS NAVARRO REYES, using TikTok, posted dozens of videos about weight loss drugs including, but not limited to, Ozempic, Axcion, and Mesotherapy.
In her videos, REYES showcases the weight loss drugs, instructs viewers how frequently they should be used, describes how they should be taken or injected, and claims to describe her personal experiences — for example, side effects and effectiveness in causing weight loss — in detail. In several of these videos, REYES tells viewers that they can contact her via an encrypted messaging application on her cellphone (the “Cellphone”) if they would like to order the weight loss drugs that she is selling.
On about October 11, 2023, REYES posted a video pertaining to Ozempic. In this video, REYES demonstrates how to inject oneself with the medication and shares her experience using the drug. Toward the end of the video, REYES instructs viewers to contact her on the Cellphone if they are interested in having her obtain Ozempic for them. A screenshot from this TikTok post is below:
In about December 2023, a law enforcement officer acting in an undercover capacity (the “UC”) began messaging REYES on the Cellphone. From about December 2023 through about January 2024, the UC and REYES exchanged several messages concerning REYES’s supply of Ozempic and the UC’s interest in purchasing Ozempic from REYES. On about January 7, 2024, pursuant to instructions from REYES, the UC sent $375 to a Zelle account in the name of “Isis Reyes Navarro.” REYES did not ask the UC to provide a prescription, and the UC did not provide one. On about January 9, 2024, REYES dropped off a package intended for the UC at a post office located in or around Shirley, New York.
On about January 12, 2024, law enforcement received a package addressed to the UC from REYES (the “UC Parcel”) in Manhattan. The UC Parcel contained a box containing what purported to be Ozempic.[2] Photos of packaging containing the purported Ozempic that REYES mailed the UC are below:
All of the labeling accompanying the Ozempic in the UC Parcel was in Spanish, in violation of FDA regulations.
In about November 2022, a woman who had viewed content posted to REYES’s TikTok account (“Victim-1”) called the Cellphone for the purpose of ordering weight loss drugs. The individual who answered Victim‑1’s call identified herself as “Isis Navarro Reyes.” In about February 2023, Victim-1 purchased 30 injections of Mesofrance, an injectable weight loss drug, from REYES. REYES mailed the Mesofrance to Victim-1’s residence in White Plains, New York. REYES did not ask Victim-1 to provide a prescription, and Victim-1 did not provide one.
Between about February 2023 and about June 2023, Victim-1 self-administered 28 injections. In an audio message that she recorded and transmitted, REYES provided Victim-1 with instructions on how to administer the drug. REYES told Victim-1, among other things, to inject herself every three days. All of the labeling of the vials that contained the Mesofrance that Victim‑1 purchased from REYES were in a language other than English, in violation of FDA regulations.
On about July 13, 2023, Victim-1 began developing lesions from administering the Mesofrance. Victim-1 sent messages to REYES about her injuries and sent photos. In about October 2023, Victim-1’s physician diagnosed her with a mycobacterium abscessus infection, which is frequently caused by the contamination of medications, medical products, and medical devices with the mycobacterium abscessus bacterium. In about November 2023, the New York Department of Health tested one of the vials of Mesofrance that Victim-1 purchased from REYES. The substance tested positive for mycobacterium abscessus, a species of rapidly growing, multidrug-resistant, nontuberculous mycobacteria.
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REYES, 36, of Shirley, New York, is charged with one count of smuggling, which carries a maximum sentence of 20 years in prison; one count of receipt of misbranded drugs in interstate commerce and subsequent delivery thereof, which carries a maximum sentence of one year in prison; three counts of dispensing prescription drugs without prescriptions, which each carry a maximum sentence of one year in prison; and one count of conspiracy to introduce and deliver for introduction a misbranded drug in interstate commerce, which carries a maximum sentence of one year in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FDA Office of Criminal Investigations, the U.S. Postal Inspection Service, the New York City Police Department, the Customs and Border Protection Task Force Officers of the Drug Enforcement Administration, and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
[2] To date, there is no evidence that the Ozempic that REYES sold the UC is not genuine.
Lexington Man Sentenced for Trafficking Fentanyl and Illegal Possession of FirearmsRead the Press Release
FRANKFORT, Ky. – A Lexington man, Ivan J. Satterfield, 30, was sentenced on Wednesday, by U.S. District Judge Gregory Van Tatenhove, to 72 months in prison, for five counts of possession of firearms by a prohibited person, two counts of distribution of fentanyl, and one count of distribution of fluorofentanyl.
According to his plea agreement, between April 14 and October 31, 2022, law enforcement utilized confidential informants to make multiple firearm and controlled substance purchases from Satterfield, which included purchases of fentanyl, cocaine, and fluorofentanyl, as well as the purchase of six firearms.
Satterfield knew he had prior felony convictions, for receiving stolen property under $10,000 from Fayette Circuit Court in July 2016 and for theft by unlawful taking under $10,000 from Nelson Circuit Court in November 2013, and was prohibited from possessing a firearm.
Under federal law, Satterfield 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 three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Office; and Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP), jointly announced the sentencing.
The investigation was conducted by the ATF and KSP. Assistant U.S. Attorney Paco Villalobos is prosecuting the case on behalf of the United States.
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Las Vegas Woman Sentenced to Prison for $1 Million Medicaid Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas woman, Henrietta Binford, 54, was sentenced Monday to 10 months in prison and ordered to pay $1,250,223.39 in restitution for defrauding the State of Nevada Medicaid healthcare benefit program by falsely billing for services not provided. United States District Judge Jennifer A. Dorsey presided over the sentencing hearing. Binford had previously plead guilty in November 2023 to one count of Health Care Fraud.
According to court documents and admissions Binford made in court, from January 2017 to August 2017, she devised and executed a scheme to defraud the State of Nevada Medicaid (“Nevada Medicaid”). In connection with Binford’s application to enroll her company Shepherd’s Heart Services, as a medical provider, she did not disclose her criminal history, including prior misdemeanor and felony convictions. As a result of her false statements on the application, Shepherd’s Heart Services was enrolled in Nevada Medicaid. As part of her scheme, Binford submitted false bills to Nevada Medicaid for services, including counseling services and training, not rendered. In total, Nevada Medicaid paid Shepherd’s Heart Services in excess of $1,000,000 for services not provided to patients.
“Through her misrepresentations and fraudulent deeds, the defendant bilked over $1,000,000 from Nevada Medicaid,” said United States Attorney Jason M. Frierson for the District of Nevada. “Due to the diligent investigative and prosecutorial work by our partners and Assistant U.S. Attorneys, the defendant was brought to justice and will be held accountable for her crimes, along with others who seek to exploit health care programs for their own financial gain.”
“Nevada Medicaid is a critical health insurance program for eligible members of our community, providing access to medical care that would otherwise be unobtainable,” said Carissa Messick, Acting Special Agent in Charge, IRS Criminal Investigation, Phoenix Field Office. “IRS Criminal Investigation is dedicated to investigating anyone attempting to defraud this program and those who rely on it.”
“My office will always defend against efforts to defraud Nevada Medicaid. Attempts to game the system or con Nevada Medicaid for services are particularly despicable as this program allows members of our community to access health care that would otherwise be inaccessible,” said Nevada Attorney General Aaron D. Ford.
IRS Criminal Investigation and the Nevada Attorney General’s Office, Medicaid Fraud Control Unit (MFCU), investigated the case. Assistant United States Attorneys Justin Washburne and Steven W. Myhre prosecuted the case.
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Kentucky Man Sentenced to 15 Years in Prison for Advertising Child PornographyRead the Press Release
BOSTON – A Kentucky man was sentenced today in federal court in Boston for advertising child sexual abuse material (CSAM) on the dark web.
Scott Allison, 59, of Glasgow, Ky., was sentenced by U.S. District Court Judge Indira Talwani to 15 years in prison followed by five years of supervised release. Allison was also ordered to pay restitution of $100,000. In September of 2023, Allison pleaded guilty to one count of advertisement of child pornography. Allison was initially charged by criminal complaint in November 2021 in the Western District of Kentucky and subsequently indicted by a federal grand jury in Boston in December 2021.
“Mr. Allison deserves to be behind bars for a very long time. He is a reprehensible cog in the market built around the shameful and devastating abuse of innocent children. There is nothing worse. He regularly advertised the sexual abuse and exploitation of kids thinking he was wrapped in the cloak of anonymity in his online world. He also possessed literally hundreds of thousands of images exploiting children on his computer. Child pornography is not a victimless crime – it is an all too active marketplace that thrives on real abuse inflicted upon real children. Each time a sexually explicit image or video of a child is viewed, accessed, possessed, received, sent or produced, that child is being re-victimized. Today’s sentence should make that message clear. Our office and our federal, state and local partners will never cease in our efforts to relentlessly pursue those who engage in this market,” said Acting United States Attorney Joshua S. Levy.
“Scott Allison is a predator who used the exploitation of children as currency to further his horrific enterprise. He and others used the perceived anonymity of the dark web as a safe haven from the public and from law enforcement. As Allison and many others have and will find out, the dark web is no match against the will of law enforcement to protect our children,” said Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England.
In April 2021, Allison was identified advertising and posting links to CSAM, including images of boys as young as approximately two years old, via a website on the dark web for which he served as a moderator. Allison used at least two different usernames on various websites on the dark web. On one website, Allison was responsible for moderation of the website, this included greeting and socializing with guests, reviewing messages and images and ensuring the safety and success of the website. During a search of his home in November 2021, an external hard drive plugged into a computer in his bedroom was found to contain approximately 130,000 images and videos of CSAM. Allison also had the content or text of approximately 108,000 posts to child pornography websites saved on his computer. Additionally, a box containing boy’s underwear, diapers and condoms as well as a silicone mold of a boy’s buttocks with partial genitalia were also found during the search.
Acting U.S. Attorney Levy; HSI SAC Krol; Michael A. Bennett, United States Attorney for the Western District of Kentucky; and Rana Saoud, Special Agent in Charge of Homeland Security Investigations in Nashville made the announcement today. Assistant U.S. Attorneys J. Mackenzie Duane and Luke A. Goldworm of the Criminal Division are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Justice Department, Federal Trade Commission, and Department of Health and Human Services Extend Comment Period on Public Inquiry into Impact of Corporate Ownership Trend in Health CareRead the Press Release
The Justice Department’s Antitrust Division, Federal Trade Commission (FTC) and Department of Health and Human Services are extending the comment period for the Request for Information on Consolidation in Health Care Markets (RFI) by 30 days. The new deadline is June 5.
In March, the agencies issued the RFI to understand how health care mergers, acquisitions and other transactions may decrease the number of firms competing to provide health care products or services. Increased firm consolidation may threaten patients’ health, workers’ safety, quality of care and affordability.
The RFI requests public comment on transactions by health systems, private payers, private equity funds and other alternative asset managers. The agencies want to know more about these types of transactions in the health care industry, which involve direct or indirect providers, services or products. The RFI also seeks information about health care transactions with dollar amounts that are not large enough to require submission to the Justice Department or FTC for review.
The public can submit comments at Regulations.gov. Once submitted, comments will be posted to Regulations.gov. The comment period was originally set to end on May 6.
Justice Department Files Statement of Interest Supporting Private Citizens’ Right to Sue Under Voting Rights Act of 1965Read the Press Release
The Justice Department today announced that it has filed a statement of interest in the U.S. District Court for the Middle District of Pennsylvania supporting the right of private plaintiffs to bring a lawsuit to enforce Section 2 of the Voting Rights Act. This filing is one of many recent briefs by the Justice Department supporting the longstanding principle that private plaintiffs are authorized to bring lawsuits to vindicate important rights protected by the Voting Rights Act.
“The right to vote is the foundation of our democracy, and it is the right on which all other rights depend,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Since the enactment of the landmark Voting Rights Act in 1965 to protect this precious right, private parties have enforced the law in courts across this country, enabling countless Americans to vote free from unlawful discrimination. The Justice Department will continue vigorously enforcing the Voting Rights Act and defending the right of private citizens and organizations to do the same.”
“The Voting Rights Act gives private citizens a voice to stand up to unlawful voting discrimination by their government,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “My office will continue to enforce the civil rights statutes like the Voting Rights Act, and proudly partners with the Civil Rights Division in protecting a private citizens’ right to enforce that Act.”
The department filed its statement of interest in Aquino and Lopez v. Hazleton Area School District, a case in which plaintiffs allege the at-large method of electing the nine-member school board of directors unlawfully dilutes the ability of Hispanic voters to elect candidates of their choice. The school district seeks to dismiss the case, arguing that private parties like the plaintiffs are not able to file lawsuits under Section 2 of the Voting Rights Act. The department’s statement of interest argues that private parties may enforce the Voting Rights Act directly, as well as through another civil rights law on which plaintiffs often rely.
The Justice Department has filed 18 statements of interest and amicus briefs in federal district courts and courts of appeals since January 2021 supporting the right of private parties to file suits under the Voting Rights Act and the Civil Rights Act to protect the right to vote. In all, since January 2021, the Justice Department has filed 32 statements of interest in courts across the country to protect the right to vote.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Individuals may report possible violations of the federal voting rights laws through the Civil Rights Division’s website at civilrights.justice.gov or by telephone toll-free at 800-253-3931.
Jury finds Cincinnati man guilty of sex trafficking, exploiting 2 teensRead the Press Release
CINCINNATI – A federal jury has convicted Kelly Richards, 43, of Cincinnati, with sex trafficking minors, sexually exploiting children and illegally possessing a firearm as a previously convicted felon.
Richards is also known as “Scorpio” and has a tattoo of a scorpion on the left side of his face. The jury found him guilty on all counts following a six-day trial before U.S. District Judge Jeffery P. Hopkins.
According to court documents and trial testimony, investigators were alerted in March 2023 that two juveniles had been screened as potential sex trafficking victims.
Richards picked up two minor victims who had fled a group home in Dayton and drove them to an apartment complex in Cincinnati. At the apartment, Richards provided the minors with cocaine before sexually assaulting them.
Richards also enticed the females into having sex with other men for money that was paid to Richards. The defendant created prostitution advertisements online with explicit pictures of the minor victims and used physical violence against them. Court documents detail that one victim was prostituted up to four times per day in hotels and homes.
Sexually exploiting children is a federal crime punishable by a range of 15 to 30 years in prison. Sex trafficking minors carries a potential penalty of at least 10 years and up to life in prison. Illegal possession of a firearm in this case is punishable by up to 15 years in prison. Sentencing of the defendant will be determined by the Court at a future hearing.
Federal agents arrested Richards on May 16, 2023.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the FBI’s Anti-Trafficking Task Force announced the verdict returned the evening of April 30. Assistant United States Attorneys Kyle J. Healey and Megan Painter Gaffney are representing the United States in this case.
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Jones County Man Sentenced to Two Years in Prison for Assault on the Choctaw Indian ReservationRead the Press Release
Jackson, Miss. – A Jones County man was sentenced to 24 months in federal prison for assault with intent to commit a kidnapping on the Choctaw Indian Reservation.
According to court documents, Tyreese Khalia Kejuan Smith, 23, assaulted an adult tribal female in the Bogue Homa Community of the Mississippi Band of Choctaw Indians.
Smith was indicted by a federal grand jury in September 2023 and pled guilty to the assault on January 30, 2024.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation’s Safe Trails Task Force which is comprised of officers from the Federal Bureau of Investigation, Choctaw Police Department, Jones County Sheriff’s Department, and various state and local law enforcement agencies.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
Jefferson County Contractor Admits Aiding Financial Exploitation of Elderly VictimRead the Press Release
ST. LOUIS – A man from Jefferson County, Missouri on Wednesday admitted helping to defraud an elderly St. Louis woman out of more than $500,000.
Austin James, 27, of Hillsboro, pleaded guilty in U.S. District Court to one felony count of identity theft. He admitted knowingly possessing or using, without lawful authority, a means of identification of another person to commit bank fraud and the financial exploitation of the elderly.
James admitted aiding Gino Rives in exploiting the 80-year-old victim, who had hired Rives sometime before Jan. 17, 2021 to repair her roof for $7,500. Rives falsely claimed to be a licensed contractor and the victim hired him to renovate the interior of her home. Rives told the woman to write checks to himself, James and others that totaled more than $550,000 for renovations on the one-bedroom, one-bath, 1,100 square-foot home that was worth no more than $135,000 in 2021. James received eight checks totaling $94,606 between January 2021 and March 2023 for purportedly performing work on the victims, kitchen, bedroom, bathroom, basement and foundation. But he did not do the work for which he had been paid.
Due to the volume of checks being written on the victim's account and being cashed by Rives, James and others, her bank contacted the St. Louis City Building Inspector’s Office, which determined that any work done on the house was worth no more than $50,000, if it included and plumbing or electrical work.
Rives, 36, of Edmundson, in St. Louis County, pleaded guilty last year and admitted defrauding two elderly victims. He and his mother, Zella Rives, pleaded guilty to separate charges this year and admitted falsely claiming that Rives was too disabled to work. They are scheduled to be sentenced next month.
James is scheduled to be sentenced on August 14. The charge carries a penalty of up to 15 years in prison, a fine of up to $250,000, or both prison and a fine.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with concerns about suspected abuse or neglect of the elderly or disabled should contact Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210.
Indianola Man Sentenced for Armed Robbery of Backyard BurgersRead the Press Release
Greenville, MS – An Indianola man was sentenced today to more than six years in prison for his role in the armed robbery of a Backyard Burgers restaurant in Cleveland, Mississippi.
According to court documents, Leequinn McCloud, 25, previously pled guilty in the U.S. District Court for the Northern District of Mississippi to one count of Hobbs Act robbery pertaining to the armed robbery of the Backyard Burgers restaurant in Cleveland. McCloud was sentenced today by U.S. District Judge Debra M. Brown to 77 months in prison followed by 3 years of supervised release. Following sentencing, McCloud was remanded to the custody of the U.S. Marshals.
McCloud’s co-defendant, Ladarius Snipes was previously sentenced in the U.S. District Court for the District of Minnesota, where he was facing additional charges. Snipes was sentenced to 120 months in prison for his role in the armed robbery of the Backyard Burgers, in addition to 35 months in prison for his Minnesota charges.
“The U.S. Attorney’s Office will do everything in its power to ensure that those who choose to commit violent gun crimes are prosecuted to the fullest extent of the law,” said U.S. Attorney Clay Joyner. “We thank ATF and the Cleveland, Mississippi Police Department for their work on this case and will continue to work alongside our federal, state and local partners to help keep our communities and citizens safer by aggressively investigating and prosecuting violent criminals.”
“ATF and the U.S. Attorney’s Office are dedicated to pursuing and combating those career criminals whose violent criminal activities threaten and severely detract from the welfare of our communities,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “This is another example of our commitment to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Cleveland Police Department investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hopewell man sentenced for illegally possessing a firearmRead the Press Release
A Hopewell man was sentenced today to five years and five months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, on Nov. 19, 2022, Hopewell Police officers found Azontay Malik Perry, 27, passed out in the driver seat of a BMW with the engine running in the intersection of Ashland Street and Oaklawn Boulevard. Officers awakened Perry and ordered him out of the vehicle. Perry ignored their commands and drove into the back of a parked police vehicle. Perry attempted to flee at high speed, but crashed into a dumpster at an apartment complex. Perry then fled on foot.
At the scene, officers observed a.40 caliber handgun on the floor of the vehicle. The firearm included an extended magazine with 27 rounds of ammunition. Officers later obtained a search warrant for the vehicle and recovered 18 grams of methamphetamine and 10.84 grams of fentanyl.
In 2016, Perry was convicted of possession of schedule I or II drugs after being caught with narcotics in his vehicle during a traffic stop. Later that year, Perry was convicted again of possession of schedule I or II drugs, as well as possession of a concealed weapon, possession of a firearm while in possession of schedule I or II drugs, and monument damage. In 2023, Perry was convicted of a probation violation related to his multiple 2016 convictions for not turning himself in on outstanding warrants and absconding from supervised probation. In 2019, Perry once again was convicted of possession of schedule I or II drugs, along with driving on a suspended license.
As a previously convicted felon, Perry cannot legally possess a firearm or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Greg Taylor, Chief of Hopewell Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Erik S. Siebert and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-106.
Honduran National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Doanin Reyes-Diaz, age 24, of Honduras, was indicted today by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Reyes-Diaz was previously removed from the United States on September 3, 2019, through Brownsville, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on March 16, 2024, Reyes-Garcia was encountered in Dauphin County, Pennsylvania.
This case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney Stephen Dukes is prosecuting the case.
The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Hobbs Man Arrested for Illegal Sale of Automatic Weapon Conversion Devices and SilencerRead the Press Release
ALBUQUERQUE – A Hobbs man was arrested for the illegal sale of automatic weapon conversion devices and a silencer after an undercover investigation by the Lea County Drug Task Force.
The criminal complaint alleges that undercover agents from the Lea County Drug Task Force purchased two Glock switches and one silencer from Tevon Wayne Davis Cobbs, 22, in the parking lot of his workplace in Hobbs, New Mexico.
During the transactions, Cobbs admitted to selling switches - devices that convert semi-automatic pistols into fully automatic "machineguns" - for the past 3-4 years. He offered to install the switches for the undercover agents and showed them videos of himself firing weapons with the illegal modifications.
During the transaction, Cobbs also offered to sell the agents a suppressor, stating he did not want to wait the typical 9-month wait time for legal ownership.
This was the second successful controlled purchase from Cobbs, following an initial sale of one switch on February 8, 2024.
Cobbs claimed to have a steady supply of the illegal devices, which he obtained from an unknown source.
The Lea County Drug Task Force is continuing its investigation into Cobbs' illegal firearms trafficking operation. Possession of Glock switches and unregistered suppressors are serious federal crimes that carry lengthy prison sentences.
U.S. Attorney Alexander M.M. Uballez, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives is investigating this case with assistance from the Lea County Drug Task Force. Assistant United States Attorney Ry Ellison is prosecuting the case.
One (1) Glock switch with no markings, disassembled into three pieces.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Hassan Tucker Facing Federal Money Laundering ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Hassan Tucker, age 43, of Baltimore, Maryland, with money laundering and violation of Bank Secrecy Act transaction reporting requirements. The indictment was returned on April 9, 2024, and unsealed today upon Tucker’s recent arrest.
The defendant made an initial appearance on Monday April 29, 2024, in the U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson. Further proceedings will be set at a later date.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Kareem Carter of IRS Criminal Investigation, Baltimore Field Office, and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Baltimore Field Office.
According to the two-count indictment, on January 27, 2023, Tucker accepted $27,000 in U.S. Currency from an undercover federal agent posing as a drug trafficker in exchange for the purchase of a luxury SUV. Before completing the transaction, the undercover federal agent represented to Tucker that the $27,000 in U.S. Currency was the proceeds of drug trafficking activity. To conceal the transaction and the true owner of the SUV, Tucker agreed to place the SUV in the name of a female associate of the undercover federal agent, and did not report the cash transaction as he knew he was required to do under federal law.
If convicted, Tucker faces a maximum sentence of 20 years in federal prison under Count One and five years in federal prison under Count Two. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended IRS-CI and the DEA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Steven T. Brantley, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Guatemalan Citizen Indicted for Illegally Reentering the United StatesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Oseas Froilan Gomez-Tebalan, age 29, a Citizen of Guatemala, was indicted today by a federal grand jury for illegally reentering the United States.
According to United States Attorney Gerard M. Karam, the indictment alleges that Gomez-Tebalan was previously removed from the United States on March 18, 2017, through Phoenix, Arizona, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on March 21, 2024, Gomez-Tebalan was encountered in Franklin County, Pennsylvania.
The case was investigated by the United States Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney K. Wesley Mishoe is prosecuting the case.
The maximum penalty upon conviction for the charged offenses is 20 years imprisonment, three years of supervised release following imprisonment, a fine, and a special assessment. A sentence following a finding of guilt is imposed by a court after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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