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11 June 2024
Former Yukon Resident Turned International Fugitive Arrested in the United Kingdom more than 13 Years After Jury ConvictionRead the Press Release
OKLAHOMA CITY – Today, U.S. Attorney Robert J. Troester announced that MEHRAN KORANKI, 63, formerly of Yukon, has been extradited from the United Kingdom to the United States. In late 2010, Koranki fled the United States following his criminal conviction at trial on mail fraud and money laundering charges.
On February 2, 2010, a federal grand jury returned a 53-count Indictment against Koranki, charging him with numerous counts of mail fraud and money laundering. Between February 2005 and March 2006, Koranki owned and controlled two Oklahoma City companies which maintained, repaired, and sold computer networking components. The companies had extended warranty agreements with Nortel Networks, which allowed the businesses to receive replacements for broken or defective parts.
In November 2010, evidence presented at a jury trial indicated that Koranki’s businesses received hundreds of thousands of dollars’ worth of equipment through the warranty agreement, which they then sold for a profit, in a direct violation of the agreement. After four days of testimony, the jury found Koranki guilty of 48 counts of mail fraud and two counts of money laundering.
After the jury returned the guilty verdicts, and prior to Koranki’s sentencing hearing, he fled the United States. In January 2011, Koranki sent a letter to the court that read in part, “I sincerely regret to inform you I am no longer in the United States and will not be attending the sentencing hearing.” Koranki has been a fugitive since that time.
On September 30, 2013, U.S. District Judge Timothy D. DeGiusti sentenced Koranki in absentia to serve 156 months in federal prison and ordered him to pay $6,010,157.90 in restitution. Click here to read the original press release on the 2013 sentencing.
In November 2015, the United States submitted to United Kingdom government officials an official request to extradite Koranki. On February 5, 2024, Koranki was arrested pursuant to an INTERPOL Red Notice, after traveling on a flight from Doha, Qatar, to Manchester, United Kingdom.
Koranki subsequently consented to extradition, and, on June 3, 2024, the U.S. Marshal’s Service transported Koranki from the United Kingdom to the United States.
“Those who seek to evade justice will eventually be apprehended and held accountable for their crimes” said U.S. Attorney Troester. “I commend the work done by the U.S. Marshals Service, the Department of Justice’s Office of International Affairs, and United Kingdom authorities for their tireless efforts to bring this matter to a close.”
“No matter how far you run, or how long you hide, the U.S. Marshals Service will exhaust all available resources in returning international fugitives to face justice in the United States,” said United States Marshal Johnny L. Kuhlman. “The arrest and extradition of this defendant is further proof of the U.S. Marshals ongoing commitment to locating fugitives around the world. The bottom line is … we never stop looking.”
Today’s announcement is the result of an investigation by the U.S. Postal Inspection Service and the IRS Criminal Investigation. The Department of Justice’s Office of International Affairs and U.S. Marshals Service provided substantial assistance to secure Koranki’s arrest and extradition from the United Kingdom. The United States thanks United Kingdom law enforcement authorities for their valuable assistance with Koranki’s arrest and extradition. Assistant U.S. Attorney Scott E. Williams prosecuted the case for the United States. Assistant U.S. Attorneys Wilson D. McGarry and Stan J. West assisted with Koranki’s extradition.
Reference is made to public filings for additional information.
Former Navy Civilian Employee Pleads Guilty to Bribery Involving Government Contracts Worth Hundreds of MillionsRead the Press Release
NEWS RELEASE SUMMARY – June 11, 2024
SAN DIEGO – James Soriano of Las Vegas, Nevada, pleaded guilty in federal court yesterday to multiple bribery conspiracies, admitting that while he was a public official at Naval Information Warfare Center in San Diego, he accepted hundreds of thousands of dollars from defense contractors in the form of free meals, tickets to premier sporting events, jobs for family and friends, and other things, in exchange for helping those contractors win and maintain hundreds of millions of dollars in government contracts. Soriano also pleaded guilty to filing a false 2018 tax return in connection with the bribes he accepted.
According to Soriano’s plea agreement, the defense contractors – acting through their presidents, officers, and employees – gave various things of value to Soriano, including dinners at Ruth’s Chris, Island Prime, and Providence; tickets to the 2018 MLB All-Star Game, 2018 World Series, and 2019 Superbowl; and jobs for Soriano’s family and friends, including a member of Soriano’s family and Soriano’s family friend, Liberty Gutierrez, who was giving Soriano $2,000 a month from her salary at one of the companies working under a defense contract.
In return, Soriano took official action to aid his benefactors, such as allowing defense contractors to draft government documents in competitive and non-competitive procurements, submitting those documents as part of the procurement process, and advocating for their selection as defense contractors. Soriano also willfully failed to disclose the cash payments he received from Ms. Gutierrez on his federal tax returns.
According to Soriano’s plea agreement, from approximately March 2016 through at least October 2019, Soriano and a coworker, Dawnell Parker, received bribes from Philip Flores, the President and CEO of Intellipeak Solutions, Inc., a defense contractor headquartered in Fredericksburg, Virginia. Soriano also admitted that from approximately May 2015 through at least October 2019, he and Parker separately received bribes from another defense contractor, with offices in San Diego and Stafford, Virginia, who also gave him things of value, such as expensive meals, a job for his wife, and rounds of golf at private country clubs.
Further, according to Soriano’s plea agreement, from approximately June 2014 through at least October 2019, Soriano received bribes from Russell Thurston, the Vice President of Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia. In return for these bribes, Soriano used various methods to steer contracts to these defense contractors and kept his contracting activities hidden from the Naval Information Warfare Center.
“The nation’s robust contracting apparatus relies on honesty and fairness,” said U.S. Attorney Tara McGrath. “This guilty plea demonstrates a commitment to the integrity of the system by holding accountable a defendant who lined his own pockets at the expense of taxpayers.”
“Mr. Soriano betrayed the trust the U.S. Navy placed in him by using his position to wrongfully enrich himself and others, ultimately at the expense of the Department of Defense and the American taxpayer,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “His guilty plea should act as a deterrent for others contemplating or attempting to misuse a position of public trust to subvert the integrity of the government’s acquisition process.”
“Mr. Soriano decided to put his own interests above U.S. Navy warfighters, trustworthy businesses, and our country’s taxpayers,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “Protecting the integrity of the Department of the Navy’s procurement process from individuals abusing their official position to unlawfully seek personal gain remains a core function for NCIS and our partners.”
“Exploiting a position of public trust to fraudulently access federal programs for personal gain is unacceptable,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “This guilty plea underscores our relentless efforts to combat corruption, protect taxpayer dollars, and maintain the integrity of SBA programs. I would like to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to the pursuing justice in this case.”
“Mr. Soriano violated the trust placed in him to responsibly oversee a fair and competitive process in his role as a contracting officer,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Instead, Mr. Soriano selfishly exploited that trust for personal benefit, meanwhile undermining a contracting process that ensures warfighters are equipped to fight and win in a complex and ever-changing global security environment. CI is committed to working with our federal law enforcement partners to help protect our servicemembers from this sort of malign activity that diminishes national security.”
Soriano is next scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on September 6, 2024.
Intellipeak and Flores are charged with conspiracy to commit bribery and bribery in 23-cr-2282-TWR. Thurston is charged with conspiracy to commit bribery and bribery in 24-cr-341-TWR.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Swan and Katherine E. A. McGrath (no relation to U.S. Attorney McGrath).
DEFENDANT Case Numbers 23-cr-2282-TWR-1 and 24-cr-341-TWR-1
James Soriano Age: 63 Las Vegas, NV
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalties (per count): Five years in prison; $250,000 fine
False Statements in Tax Returns – Title 26, U.S.C., Section 7206(1)
Maximum penalties: Three years in prison; $100,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
Former Luxury Homebuilder Convicted of Defrauding the United StatesRead the Press Release
BOSTON – The former project manager of a now-defunct luxury home building business in West Springfield. Mass. has been convicted following a five-day jury trial of conspiring to defraud the United States.
Jason Pecoy, 44, of Wilbraham, was convicted on June 7, 2024 of two counts of conspiracy to defraud the United States. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 12, 2024.
“Jason Pecoy was convicted for his role in an elaborate scheme with his father and Kevin Kennedy to defraud the United States by concealing money and maintaining false books, all so that Kennedy could avoid taxes for the construction of two luxury homes,” said Acting United States Attorney Joshua S. Levy. “Jason Pecoy decided that assisting in his father’s illegal efforts to support Kennedy’s greed was more important than following the law. This conviction is a reminder to others that criminal actions have consequences.”
“The conviction of Jason Pecoy demonstrates the IRS’s commitment to identifying and prosecuting all who choose to violate the tax laws,” said Special Agent in Charge, Harry T. Chavis Jr., Internal Revenue Service Criminal Investigation Boston Field Office. “Pecoy made every effort to conceal his income from the IRS and evade paying his fair share of his taxes. Tax evasion is not a victimless crime, it impacts every American by stealing resources vital to maintaining public infrastructure and enhancing social welfare.”
Jason Pecoy was previously indicted in December 2019 along with his father, Kent Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020. On Dec. 11, 2023, Kennedy was convicted by a federal jury for conspiracy to defraud the United States and making a false statement to a federally insured financial institution. He was sentenced to 13 months in prison, followed by three years of supervised release on April 24, 2024. On May 16, 2024, Kent Pecoy pleaded guilty to two counts of conspiracy to defraud the United States and one count of making a false statement to a federally insured financial institution. Kent Pecoy is scheduled to be sentenced on Aug. 20, 2024.
From 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. Kennedy paid the Pecoys in cash, all of which the Pecoys failed to deposit into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The evidence proved that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy and IRS SAC Chavis made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office are prosecuting the case along with Trial Attorney Eric B. Powers of the Justice Department’s Tax Division.
Former Kentucky State Prison Sergeant Sentenced for Violating Civil Rights of an Inmate and Obstruction of JusticeRead the Press Release
A former Kentucky corrections sergeant, Eric L. Nantell, 48, was sentenced today to 84 months in prison followed by two years of supervised release for one count of deprivation of civil rights for his failure to intervene to stop the assault of an inmate, two counts of obstruction of justice for misleading state investigators and one count of making false statements to a special agent of the FBI. Nantell was convicted after a four-day trial. Six other officers previously pleaded guilty and were sentenced for their roles in the assault and cover-up, and three of those officers testified for the government at trial.
“As the vicious beating of a handcuffed, leg-shackled inmate unfolded, this defendant failed to intervene to stop the assault and then abused his power by obstructing the investigation into the crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This cover-up scheme failed. All seven officers who participated in the brutal assault of the inmate or the coordinated cover-up that followed have been brought to justice. The Justice Department will continue to hold accountable law enforcement officials who engage in misconduct at every level, including those who carry out unlawful assaults, those who fail to intervene to stop them and those who try to cover up the violations.”
“Instead of protecting someone in his custody and care or supervising others under his command, he turned a blind eye to a brutal beating and then tried to cover it up,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That’s not law enforcement; that’s disgraceful criminal conduct. Fortunately, he now faces the consequences of his utter betrayal of responsibility and callous attempts to undermine genuine law enforcement.”
“In this case, one inmate was betrayed by no less than seven corrections officers whose basic duty was to protect the civil rights of all the inmates under their supervision,” said Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office. “With today’s sentencing, all of the officers who took part in the assault, and those who attempted to cover-up the truth, have now been held accountable. Everyone deserves protection under the law, and the FBI is proud to work with the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Kentucky to hold any officer criminally responsible for violating the civil rights of a person in his or her custody.”
According to court documents and evidence introduced at trial, Nantell, who at that time was a sergeant at the Eastern Kentucky Correctional Complex (EKCC), was supervising a routine prisoner escort procedure when three officers, two of whom were members of the prison’s internal affairs department, assaulted a non-violent inmate who was lying face-down, wearing handcuffs and leg shackles and isolated in a prison shower cell. Nantell was standing at the door of the shower when the assault began, and he watched the officers repeatedly punch and kick the inmate in the head and back. After silently observing the beating for more than 20 seconds, Nantell walked away while the officers continued to beat the inmate.
Within hours of the inmate reporting the abuse, supervisors of EKCC and state detectives of the Kentucky State Police had opened an investigation. Nantell joined with other officers in a cover-up scheme to hide the truth. As part of that cover-up, he lied to officers of both agencies as well as a special agent of the FBI.
The FBI Louisville Field Office investigated the case.
Assistant U.S. Attorneys Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division prosecuted the case, with assistance from Assistant U.S. Attorney Mary Melton for the Eastern District of Kentucky.
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Foreign National Sentenced for Advance Fee and Investment Fraud SchemeRead the Press Release
A Kenyan national was sentenced today to 11 years and three months in prison for perpetrating an advance fee and investment scheme that defrauded numerous victims.
According to court documents and evidence presented at trial, Paul Maucha, 59, along with a co-conspirator, engaged in a scheme through a shell company Maucha controlled, American Eagle Services Group Inc. (AESG), to make numerous misrepresentations to victims about AESG, its assets, and its access to money and capital. In particular, Maucha—through AESG—promised victims who were seeking loans that AESG would provide them with these loans. The victims were required to first provide AESG with an advanced fee, but the company misrepresented the purpose of that fee. AESG told victims falsely that the advance fees could be refunded if AESG did not fund the loan. As proven at trial, however, Maucha and his co-conspirator knew that AESG did not have the capital to make these loans at the time the lending agreements were executed, and refunds to victims could not be assured because Maucha and his co-conspirator were splitting the fees between themselves and spending them, such that there was no money left to be refunded.
A federal jury convicted Maucha on Feb. 1 of one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of engaging in monetary transactions in criminally derived property.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Matthew M. Graves for the District of Columbia; and Special Agent in Charge Keri Farley of the FBI Atlanta Field Office made the announcement.
The FBI Atlanta Field Office investigated the case, with substantial assistance from Homeland Security Investigations.
Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine M. Macey for the District of Columbia prosecuted the case. Former Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia provided valuable assistance in the investigation.
Federal Jury Finds Felon Guilty of Possessing Firearms, Ammunition, and SilencersRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Dana Hunter Calley (54, Cocoa) guilty of possessing a firearm and ammunition as a convicted felon and possessing unregistered silencers. Calley faces a maximum penalty of 35 years in federal prison. His sentencing hearing is scheduled for September 9, 2024.
According to the evidence presented at trial, on September 20, 2023, law enforcement executed a search warrant on Calley’s residence and seized four guns, three silencers, and thousands of rounds of ammunition. On April 5, 2024, law enforcement executed a second search warrant on Calley’s residence and seized six silencers at various stages of production. At the time of the offenses, Calley had multiple prior felony convictions, including aggravated battery, and possessing contraband in a prison facility. As a convicted felon, Calley is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Diane Hu and Special Assistant United States Attorney Matthew Del Mastro.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal Grand Jury Indicts Twenty-Six for Drug TraffickingRead the Press Release
WHEELING, WEST VIRGINIA – A Federal grand jury has indicted 26 people in seven cases for the trafficking of fentanyl, cocaine, cocaine base, and methamphetamine.
United States Attorney William Ihlenfeld announced that Quavonte Pugh, also known as “Q,” “Q Man,” and “Brother,” age 28, of Wheeling, West Virginia, and 11 others were named in a 16-count superseding indictment charging them with the operation of a fentanyl, cocaine base, and cocaine trafficking enterprise that spanned from Las Vegas, Nevada to the Ohio Valley. The indictments were the result of a comprehensive investigation that included the execution of five federal search warrants at locations in West Virginia and Ohio on March 29. During the searches, officers seized controlled substances, firearms, and cash.
The others charged in the Pugh indictment are Dalen Cage, 30, of Las Vegas, Nevada; James Galloway, 28, of Bellaire, Ohio; James Kidder, also known as “Jamey,” 47, of Martins Ferry, Ohio; Brady McKinley, 45, of Adena, Ohio; and Maria Cunningham, 46, Quamya Pugh, 25, Steven Aldridge, 26, Caviezz Cunningham, 29, Daryl Smith, 50, Tyrique Anthony Davis, 28, and Matthew Clemont, 31, all of Wheeling.
“The Pugh organization caused significant amounts of illicit drugs to be trafficked throughout the region,” said United States Attorney Ihlenfeld. “The Ohio Valley Drug Task Force worked closely with prosecutors from the U.S. Attorney’s office and together they dismantled the group and disrupted the supply of fentanyl and other dangerous drugs to the area.”
According to Ihlenfeld, the same grand jury returned six additional indictments alleging fentanyl and methamphetamine trafficking, as follows:
Indictment Two: Rodrican M. Pavlick, also known as “Smooth” and “Rico”, of Cleveland, Ohio, Seanelle P. Whorton, of Benwood, West Virginia, and Josie M. Midcap, of Moundsville, West Virginia, for fentanyl trafficking in Marshall County;
Indictment Three: Lawrence “Larry” Reagan and Jennifer Ann Miller, also known as Jennifer Reagan, both of Colliers, West Virginia, for methamphetamine trafficking in Brooke County and Hancock County;
Indictment Four: Amanda Leigh Bush, James Adam Vipperman, Noah Andrew Blake, and Joseph Lee Wells, all of Moundsville, West Virginia, for methamphetamine trafficking in Marshall County;
Indictment Five: Arrests pending of two individuals for methamphetamine trafficking in Marshall County;
Indictment Six: Arrests pending of two individuals for methamphetamine trafficking in Marshall County;
Indictment Seven: Arrest pending of one individual for methamphetamine trafficking in Wetzel County.
Assistant U.S. Attorneys Carly Nogay and Clayton Reid and U.S. Attorney Ihlenfeld are prosecuting the cases on behalf of the United States.
Investigative agencies include the Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Ohio County Sheriff’s Office; the Marshall County Sheriff’s Office; the Wheeling Police Department; the Benwood Police Department; and the Belmont County, Ohio, Sheriff’s Office.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Farrell Resident Sentenced to Seven Years in Prison for Drug Trafficking and Firearm ViolationsRead the Press Release
PITTSBURGH, Pa. - Dimetrius Morris of Farrell, Pennsylvania, has been sentenced to 84 months in federal prison for committing drug trafficking and firearms crimes, United States Attorney Eric G. Olshan announced today.
Morris, 39, was sentenced by United States District Judge Robert J. Colville, who also ordered Morris to serve three years of supervised release following his prison sentence.
Morris previously pleaded guilty in this case to possessing with intent to distribute cocaine, fentanyl, and methamphetamine on February 20, 2020, and to possessing a firearm in furtherance of that drug trafficking crime. Prior to that date, Morris had been convicted in federal and state courts of several drug trafficking and weapons crimes throughout the previous 15 years, and spent nearly 10 of those years in prison serving the various sentences imposed for those crimes and corresponding supervised release/parole violations.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Sharon Police Department, Federal Bureau of Investigation, Farrell Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the successful prosecution of Morris.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fact Sheet: Initiative to Combat Transnational Human Smuggling and Trafficking Networks Marks Third AnniversaryRead the Press Release
Attorney General Merrick B. Garland announced Joint Task Force Alpha (JTFA) in June 2021 in partnership with the Department of Homeland Security (DHS) to strengthen the Justice Department’s efforts to combat prolific and dangerous human smuggling and trafficking emanating from Guatemala, El Salvador, Honduras, and Mexico and impacting our border communities, with a particular focus on individuals and networks that abuse, exploit, or endanger those being smuggled, pose national security threats, or have links to transnational organized crime.
Since its creation in June 2021, JTFA has delivered significant results, including:
- 300+ domestic and international arrests, including against leaders, organizers, and significant facilitators;
- 240+ U.S. convictions;
- 170+ U.S. defendants sentenced, including significant jail sentences imposed;
- Substantial seizures and forfeiture of assets and contraband including hundreds of thousands of dollars in cash, real property, vehicles, firearms and ammunition, and drugs; and
- Multiple indictments and precedent setting extraditions of foreign leadership targets.
Over the past three years, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and with foreign law enforcement partners, targeted those organizations who have the most impact on the United States, and coordinated significant investigations, indictments, extraditions, and successful prosecution efforts both across the Southwest border and overseas.
Prosecutors from the U.S. Attorneys’ Offices for the Southern District of Texas, Western District of Texas, District of New Mexico, District of Arizona, and Southern District of California are detailed to JTFA to pursue its mission. Dedicated personnel and support is also provided by numerous components of the Justice Department that are part of JTFA, led by the Criminal Division's Human Rights and Special Prosecutions Section and supported by the Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section, along with the Executive Office for the U.S. Attorneys (EOUSA).
JTFA is made possible by substantial law enforcement investment from Homeland Security Investigations, Customs and Border Protection, and Border Patrol, along with support from the FBI, Organized Crime Drug Enforcement Task Forces (OCDETF), Drug Enforcement Administration (DEA), Department of State’s Diplomatic Security Service (DSS), Transportation Security Administration (TSA), Federal Air Marshals, and U.S. Coast Guard.
In December 2023, OCDETF announced the creation of a new strategic initiative to expand and further enhance targeting of TCOs and human smuggling and trafficking networks within its framework.
Press release announcing JTFA and readouts from national meetings
- Launch of JTFA (June 2021): Attorney General announces initiatives to combat human smuggling and trafficking and to fight corruption in Central America
- Washington, D.C. Summit (November 2021)
- San Diego Summit (June 2022)
- El Paso Summit (March 2023)
- Washington, D.C. Summit (December 2023)
Key cases
- United States v. Felipe Diego Alonzo, et al. (Western District of Texas)
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U.S. and Guatemalan law enforcement coordination results in arrest of 19 members of human smuggling network, including four Guatemalan human smugglers wanted in the United States.
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Justice Department announces first ever extraditions from Guatemala to the United States on human smuggling resulting in death charges.
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Two Guatemalan defendants residing in Texas pleaded guilty to transporting and harboring illegal migrants for financial gain and resulting in death.
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Four extradited defendants plead guilty and sentenced to nearly 70 years in prison in total.
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- United States v. Ofelia Hernandez-Salas, et al. (District of Arizona)
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Co-conspirators indicted for role in global human smuggling conspiracy.
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Prolific Mexican smuggler arrested in Mexico and extradited pursuant to U.S. request.
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United States v. Maria Mendoza-Mendoza (District of Arizona)
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First ever extradition from Honduras of prolific human smuggler.
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United States v. Erminia Serrano Piedra, et al. (Southern District of Texas
- Eight indicted and arrested in a takedown of prolific human smuggling network.
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Four indicted on charges of conspiracy to launder money.
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Lead defendant and 10 others pleaded guilty to charges related to facilitation of illegal transportation and movement of hundreds of migrants within the United States and agree to over $2 million in forfeitures.
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United States v. Allison, et al. (Eastern District of Louisiana)
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Eight defendants indicted for human smuggling and drug conspiracy offenses, and four convicted thus far, including lead defendant.
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United States v. Ronaldo Galindo Lopez-Escobar, et al. (District of New Mexico)
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Ten indicted and six arrested in investigation of the Lopez Crime Family human smuggling organization operating in Guatemala, Mexico, and the United States.
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Operation Pollos Hermanos (District of Arizona)
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Cooperation between United States and Mexico results in takedown operation to dismantle a prolific transnational human smuggling organization operating in Nogales, Sonora, along the U.S.-Mexico border.
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Man pleaded guilty to operating Phoenix stash house and sentenced to 57 months in prison for conspiracy to transport and harbor illegal migrants for profit.
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Woman pleaded guilty to transporting and harboring over 100 noncitizens.
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Man pleaded guilty for role as coordinator for human smuggling organization in Nogales, Arizona.
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Coordinator sentenced to 78 months in prison for role in conspiracy to transport and harbor illegal migrants for profit and illegal reentry.
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Man sentenced to 46 months in prison for conspiracy to transport and harbor illegal migrants for profit.
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Two men sentenced to 45 months in prison for roles in smuggling noncitizens to the United States.
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- United States v. Victor Alfonso Soto Aguilar, et al. (Southern District of California)
- Two defendant boat operators pleaded guilty for maritime smuggling resulting in the death of one passenger in La Jolla and sentenced to 71 and 60 months in prison.
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United States v. Gilberto Morales (Western District of Texas)
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Jury finds defendant guilty at trial of criminal offenses, including conspiracy, transporting, and harboring noncitizens.
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United States v. Milon Miah (Southern District of Texas)
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Defendant sentenced to 46 months in prison for role in smuggling noncitizens from Mexico to United States.
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United States v. Jose Luis Avalo, et al. (District of New Mexico)
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Nine alleged human smugglers indicted in migrant smuggling organization.
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United States v. Jimenez-Bautista (Southern District of California)
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Man pleaded guilty to sexually assaulting a juvenile while smuggling group from Mexico to United States.
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Ex-finance manager for Kalispell firearms manufacturer admits stealing approximately $159,000 in check schemeRead the Press Release
MISSOULA —A Columbia Falls woman who managed books for a Kalispell firearm manufacturing business today admitted to stealing approximately $159,000 from the company in a check scheme, U.S. Attorney Jesse Laslovich said.
The defendant, Teri Anne Bell, 58, pleaded guilty to wire fraud. Bell faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 8. Bell was released pending further proceedings.
In court documents, the government alleged that from May 2018 until about December 2021, Bell, while working as a finance manager for Falkor SID Inc., a firearm manufacturing and distribution business in Kalispell, stole from her employer. Bell was provided pre-signed checks to make payments to Falkor vendors and had access to Falkor’s bank account and its accounting software. In the fall of 2021, Falkor’s owners suspected Bell was stealing money from the company, and a financial audit determined that Bell completed 45 unauthorized transactions totaling $159,131 in Falkor funds. Bell wrote checks from Falkor to herself or her creditors and then edited the payments in an accounting system so that they appeared to be for legitimate business expenses. Bell used the stolen funds for personal expenses, including hotels in Las Vegas and at Quinn’s Hot Springs, payments to retail and liquor stores, collection agencies and streaming services.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case. The FBI and Flathead County Sheriff’s Office conducted the investigation.
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Etazini Konkli Yon Pwotokòl Antant Ak Biwo Administrasyon Tribinal Yo Nan Eta Nouyòk La Ki Garanti Aksè Ak Tribinal Pou Tretman Kont Dwòg Yo Nan Konte Rockland Lan Pou Patisipan Yo Ki Genyen Yon Konpetans Limite Nan AnglèRead the Press Release
Damian Williams, Pwokirè Etazini an pou Distri Sid Nouyòk la, ak Kristen Clarke, Pwokirè Jeneral Adjwen Divizyon Dwa Sivil Depatman Jistis la, te anonse jodi a Etazini te konkli yon Pwotokòl Antant (“MOU”) ak Sistèm Tribinal Inifye Eta Nouyòk la, Biwo Administrasyon Jidisyè a (“OCA”) ki rezoud analiz li sou konfòmite Tribinal pou Tretman kont Dwòg Konte Rockland la ak Tit VI Lwa 1964 sou Dwa Sivil yo, ki entèdi diskriminasyon sou baz ras, koulè, ak orijin nasyonal nan men benefisyè asistans finansye federal. Diskriminasyon ki entèdi an gendwa gen ladann yon enkapasite pou bay yon aksè lengwistik ki enpòtan.
Pwokirè Etazini an Damian Williams te di: “Yo ta dwe refize manm kominote a yon aksè enpòtan ak pwosedi jidisyè yo e ak pwogram yo ki ofri yon altènativ ak kondanasyon tradisyonèl yo akòz konpetans limite yo nan anglè. Nou remèsye Biwo Pwokirè Distri Konte Rockland la ak OCA paske yo te travay avèk nou pou asire Tribinal pou Tretman kont Dwòg Konte Rockland lan disponib pou tout patisipan ki elijib yo, e nou espere Pwotokòl Antant sa a ka sèvi kòm modèl pou tout tribinal nan distri sa a pou asire yon aksè enpòtan pou moun ki gen konpetans limite nan anglè, nan konfòmite ak Tit VI.”
Pwokirè Jeneral Adjwen an Kristen Clarke te di: “Asire yon jistis egalit devan lalwa vle di fè sa nan yon fason ki jis, egzat ak konpreyansib pou tout moun, men sa ap rive sof si moun yo ki enplike nan pwosesis jidisyè a ka kominike youn ak lòt. Moun pa ta dwe penalize pou konpetans limite yo nan anglè yo epi yo ta dwe resevwa sèvis asistans lengwistik yo bezwen pou yo patisipe san fòs kote nan pwosedi jidisyè yo ak fòmasyon tribinal oswa pwogram tretman la mandate. Akò sa a reprezante yon modèl pou asire aksè ak tribinal yo, ansanm ak pwogram ak sèvis li yo, pou tout moun, kèlkeswa konpetans yo nan anglè, epi li esplike aksyon ki nesesè yo pou elimine baryè pou itilizatè tribinal yo ki gen yon konpetans limite nan anglè.”
Dapre Pwotokòl Antant lan ak fichye epi deklarasyon piblik yo:
An janvye 2023, Biwo sa a te revize yon plent ki te pretann moun ki gen konpetans limite yo nan anglè ("LEP") pa t kapab patisipe totalman nan Tribinal pou Tretman kont Dwòg Konte Rockland la paske tribinal la pa t bay sèvis tradiksyon ak entèpretasyon. Yon ti tan apresa, OCA te enplike l nan pwosedi aksè lengwistik yo pou Tribinal pou Tretman kont Dwòg Konte Rockland la epi li te finalman pran responsablite pou Tribinal la nan mwa mas 2024. Biwo sa a, nan kolaborasyon ak Divizyon Dwa Sivil yo, te travay avèk OCA ak Biwo Pwokirè Distri Konte Rockland la, ki t ap jere Tribinal pou Tretman kont Dwòg la anvan mas 2024, pou idantifye refòm ki nesesè yo pou asire tout moun LEP yo ki kalifye pou patisipe nan Tribinal pou Tretman kont Dwòg la te gen aksè lengwistik ki enpòtan.
Pandan revizyon dosye sa a, Biwo Pwokirè Distri Konte Rockland la ak OCA te pran plizyè mezi pozitif pou bay patisipan nan Tribinal yo ki gen LEP yon aksè enpòtan, sa gen ladan l angajman pou founi sèvis entèprèt pou tout pwosedi jidisyè yo, reyalize aktivite sansibilizasyon ak patisipan yo ki nan Tribinal pou Tretman kont Dwòg Konte Rockland la, epi idantifye yon founisè tretman lokal pou bay sèvis tretman tribinal lan mandate an panyòl.
Dapre Pwotokòl Antant lan, OCA pral pran yon kantite mezi adisyonèl pou garanti yon aksè enpòtan pou patisipan ki gen LEP yo nan Tribinal pou Tretman kont Dwòg Konte Rockland lan. Etap sa yo gen ladan yo tradiksyon tout dokiman yo an panyòl, kreyòl, ak yiddish, ak nan lòt lang sou demann, fè piblikasyon pwogram Tribinal pou Tretman kont Dwòg la nan lòt lang sa yo, epi chèche founisè tretman ki pral ofri pwogram tretman kont dwòg tribinal mandate yo nan yon fason ki bay yon aksè enpòtan ak moun ki gen LEP yo, san patisipan yo pa peye anyen.
Enfòmasyon sou Tit VI ak konpetans limite nan anglè disponib nan www.lep.gov. Manm piblik la gendwa rapòte potansyèl vyolasyon dwa sivil yo nan Distri Sid Nouyòk la nan https://www.justice.gov/usao-sdny/civil-rights oswa avèk Divizyon Dwa Sivil Depatman Jistis la nan www.civilrights.justice.gov/report/.
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Mesye Williams te remèsye Divizyon Dwa Sivil lan, Seksyon Kowòdinasyon ak Konfòmite Federal la, pou kolaborasyon li nan rezoud pwoblèm sa a.
Se Inite Dwa Sivil Biwo an nan Divizyon Sivil la ki ap jere dosye sa a. Asistan Pwokirè Etazini an Christine S. Poscablo se responsab dosye a.
Escaped Drug Trafficker Sentenced to 22 Years in Prison for Making and Possessing Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shane A. Lopez, age 29, of Mahanoy City, Pennsylvania, was sentenced on June 10, 2024, to 22 years’ imprisonment by United States District Court Judge Christopher C. Conner for sexual exploitation of children and escape.
According to United States Attorney Gerard M. Karam, in November 2020, Lopez was serving the remainder of his federal drug trafficking sentence at a residential rehabilitation facility in Harrisburg when he escaped. On May 21, 2021, police arrested him at a residence in Mahanoy City. Police seized his and uncovered evidence of child pornography. An investigation of his phone as well as accounts he controlled revealed that he had over a 1,000 images and videos of child pornography, including a video he made of an 18-month-old girl.
On November 20, 2023, Lopez pleaded guilty to sexual exploitation of children as well as escape from a detention facility.
Judge Conner sentenced Lopez to 20 years in prison for sexual exploitation of children. He also imposed a consecutive sentence of two years in prison for the crime of escape. When he is released from prison, Lopez is to serve five years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the United States Marshal Service. Assistant U.S. Attorney Scott Ford is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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El Departamento de Justicia celebra un acuerdo con el Sistema Judicial Unificado del Estado de New York para resolver la revisión de acceso lingüístico al amparo del Título VIRead the Press Release
El Departamento de Justicia anunció hoy un memorando de entendimiento (MOU, por sus siglas en inglés) con el Sistema Judicial del Estado de New York, la Oficina de Administración del Tribunal (OCA, por sus siglas en inglés) para mejorar el acceso al Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland, New York, para personas con un dominio limitado del inglés (LEP, por sus siglas en inglés). El Departamento hace cumplir el Título VI de la ley de Derechos Civiles de 1964 (Título VI), que prohíbe la discriminación por motivos de raza, color de piel y origen nacional por parte de beneficiarios de apoyo financiero federal. La discriminación prohibida puede incluir la falta de provisión de acceso lingüístico significativo.
«La garantía de la igualdad de justicia en virtud de la ley se asegura de una manera justa, precisa y comprensible para todos, pero eso no sucede a menos que las personas involucradas en el proceso judicial puedan comunicarse entre sí», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Las personas no deben ser penalizadas por su dominio limitado del inglés y deben recibir los servicios de apoyo lingüístico que necesitan para participar de forma justa en procedimientos judiciales y programas de formación o tratamiento exigidos por el tribunal. Este acuerdo sirve como modelo para garantizar el acceso a los tribunales, incluidos sus programas y servicios, para todas las personas, independientemente de su dominio del inglés, y detalla acciones que pueden ayudar a eliminar barreras para los usuarios de tribunales con un dominio limitado del inglés».
«No se debe negar a los miembros de la comunidad el acceso significativo a procedimientos y programas judiciales que ofrezcan alternativas a las sentencias tradicionales debido a su dominio limitado del inglés», afirmó Damian Williams, el Fiscal Federal para el Distrito Sur de New York. «Agradecemos a la Fiscalía de Distrito del Condado de Rockland y a la OCA por trabajar con nosotros para garantizar que el Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland esté disponible para todos los participantes elegibles, y esperamos que este memorando de entendimiento pueda servir como modelo para todos los tribunales de este distrito para garantizar un acceso significativo a las personas con un dominio limitado del inglés, de conformidad con el Título VI».
El Departamento de Justicia revisó una queja alegando que las personas LEP no podían participar plenamente en el Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland porque no proporcionaba un acceso lingüístico significativo. Poco después de esta queja, la OCA se involucró en los procedimientos de acceso lingüístico para el Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland y finalmente, la OCA asumió la responsabilidad del Tribunal en marzo.
Junto con la Fiscalía de Distrito del Condado de Rockland, que dirigió el Tribunal de Tratamiento para Usuarios de Drogas antes de marzo, la OCA tomó varias medidas afirmativas para proporcionar un acceso significativo a todos los usuarios LEP del Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland durante la revisión de este asunto por parte del Departamento. Entre otras acciones, la OCA se comprometió a proporcionar servicios de interpretación gratuitos para todos los procedimientos judiciales y tomó acciones directas en cuanto a las partes interesadas del Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland sobre el acceso significativo para las personas LEP.
En virtud del MOU, la OCA tomará una serie de medidas adicionales para garantizar un acceso significativo para los participantes LEP en el Tribunal de Tratamiento para Usuarios de Drogas del Condado de Rockland. Estos pasos incluyen traducir todos los documentos al español, criollo y yiddish, y a otros idiomas a pedido, y conseguir a proveedores de tratamiento que ofrecerán programas de tratamiento para usuarios de drogas exigidos por los tribunales de manera que proporcione un acceso significativo a las personas LEP, sin costo adicional para los participantes.
Hay más información sobre la División de Derechos Civiles en su sitio web en a www.justice.gov/crt. La información sobre el dominio limitado del inglés y el Título VI está disponible en www.lep.gov. Los miembros del público pueden denunciar posibles vulneraciones de los derechos civiles en www.civilrights.justice.gov/report/ o ante la Fiscalía Federal para el Distrito Sur de New York en www.justice.gov/usao-sdny/civil-rights.
Eight Defendants Charged with Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, an indictment was unsealed charging Noman Ahmed, Adnan Arshad, Rehman Diwan, Jessica Hendrickson, Jose Marte, Mohammed Saleem, Faisal Shamsi and Waqas Shamsi with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, paying health care kickbacks, and money laundering. The defendants allegedly offered and paid health care kickbacks and submitted fraudulent claims to Medicaid for ambulette services to medical appointments that were not performed, or the costs were artificially inflated. The defendants were arrested today and all but Marte will be arraigned this afternoon before United States Magistrate Judge Arlene R. Lindsay. Marte will be arraigned tomorrow.
Breon Peace, United States Attorney for the Eastern District of New York, Naomi Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York, (IRS-CI), and Raymond A. Tierney, Suffolk County District Attorney, announced the arrests and charges.
“As alleged, the defendants abused the trust placed in them by Medicaid by falsely and brazenly treating this essential program like a piggy bank for their own enrichment,” stated United States Attorney Peace. “Their transportation scam ended today with law enforcement providing the defendants a free ride to the courthouse to face serious criminal charges. My Office will prosecute health care providers who steal from taxpayer-funded programs intended to help those in need.”
Mr. Peace also thanked the Office of the New York State Comptroller and the New York Attorney General’s Office, Medicaid Fraud Control Unit for their assistance in the case.
“HHS-OIG will continue to work with our law enforcement partners to ensure that individuals are held accountable if they attempt to exploit federal health care programs for their own greed,” stated HHS-OIG Special Agent-in-Charge Gruchacz. “It is alleged in this case that the defendants offered illegal kickbacks and billed Medicaid improperly for millions of dollars, which can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care.”
“Healthcare fraud is not a victimless crime. The loss created by criminals bilking the system generates a gap in funding that gets filled by law-abiding citizens paying more than their fair share. This team of alleged criminals are charged with a multimillion dollar fraud involving health care kickbacks and false claims. While legitimate claimants continue to work through the Medicaid system, some of the alleged fraudsters purchased luxury vehicles and million-dollar homes. This is unacceptable, and each offender will now face justice for their actions,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“My Office remains committed to stand and work with our federal partners in combatting crime and keeping our citizens safe," stated Suffolk County District Attorney Tierney. “Those who seek to illegally profit off the backs of hardworking U.S. taxpayers will be found out and brought to justice. The defrauding of our citizens will not be tolerated.”
As set forth in court filings, the defendants owned, operated and were employees of several transportation companies. From approximately December 2020 to the present, the defendants paid illegal health care kickbacks to Medicaid beneficiaries so that those beneficiaries would order medical transportation services specifically from the defendants, which generally included transportation to addiction treatment centers for the beneficiaries’ purportedly necessary methadone treatment.
The defendants generally did not provide the medical transportation services ordered by the Medicaid beneficiaries. Yet in total, the defendants and their transportation companies – 668 MTK Taxi LLC, All-Star Taxi LLC, Apollo Transportation, Sunrise Taxi LLC, and Transportation Solution NY Corp. d/b/a A1 Transport – fraudulently billed Medicaid millions of dollars for these services throughout the course of the scheme. At least two claims were submitted to Medicaid for individuals who were deceased, and some claims were submitted for individuals who were hospitalized or incarcerated.
The defendants also submitted artificially inflated claims to Medicaid. Although there were numerous addiction treatment centers on Long Island the beneficiaries could have utilized, the defendants instructed them to order rides to addiction treatment centers in New York City and to list false addresses so they could obtain higher reimbursement rates from Medicaid for longer rides. The transportation companies owned or operated by the defendants billed Medicaid over $16 million for trips to just three addiction treatment centers in New York City.
The defendants Adnan Arshad and Mohammed Saleem used the illicit proceeds of the schemes to purchase approximately 15 additional transport vehicles for use in the scheme and to purchase multimillion-dollar homes and luxury vehicles.
The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Adam Toporovsky and Special Assistant United States Attorney Jennifer Milito, of the Suffolk County District Attorney’s Office, are in charge of the prosecution with the assistance of Paralegal Specialist Adam Bernard. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendants:
NOMAN AHMED
Age: 37
Port Jefferson Station, New YorkADNAN ARSHAD (also known as “Eddie”)
Age: 45
Mount Sinai, New YorkREHMAN DIWAN
Age: 24
Hicksville, New YorkJESSICA HENDRICKSON
Age: 36
Patchogue, New YorkJOSE MARTE
Age: 33
Bronx, New YorkMOHAMMED SALEEM
Age: 38
Dix Hills, New YorkFAISAL SHAMSI (also known as “Jimmy”)
Age: 49
Massapequa, New YorkWAQAS SHAMSI (also known as “Ricky”)
Age: 44
Massapequa, New YorkE.D.N.Y. Docket No. 24-CR-231 (JMA)
District Man Sentenced to 57 Months in Prison for Federal Firearms and Drug Trafficking OffensesRead the Press Release
WASHINGTON – Clarence Faulkner, 43, of Washington, D.C., was sentenced today to 57 months in prison on federal firearms and drug trafficking charges, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Faulkner pleaded guilty on February 27, 2024, in the U.S. District Court for the District of Columbia, to one count of unlawful possession of a firearm and ammunition by a felon and one count of unlawful possession with intent to distribute PCP. He was sentenced by the Honorable Tanya S. Chutkan. Following his prison term, Faulkner will serve three years of supervised release.
According to court documents, on November 4, 2023, MPD officers approached an unoccupied gray Acura in the 300 block of 61st Street Northeast and observed a clear plastic bag filled with suspected marijuana on the rear passenger floorboard. Officers then searched the vehicle and recovered more than two pounds of marijuana, 108 grams of cocaine base, six fluid ounces of liquid PCP, two scales, and over $38,000 in cash. Officers also recovered a loaded Glock semi‑automatic pistol that had been converted into a short-barreled rifle. The firearm was loaded with 28 rounds of ammunition in a 31-capacity feeding device.
The Acura was registered to Faulkner and contained Faulkner’s identification and mail. Police stopped and arrested Faulkner, who was standing on a sidewalk nearby. Faulkner has remained in custody since his arrest.
Federal law prohibits Faulkner from possessing a firearm because he has multiple prior convictions for crimes punishable by imprisonment for a term exceeding one year, including three prior felony firearms convictions.
The case was investigated by the ATF’s Washington Field Division and the Metropolitan Police Department as part of Project Safe Neighborhoods.
The case was prosecuted by Assistant U.S. Attorneys Paul V. Courtney and Cameron A. Tepfer and former Special Assistant U.S. Attorney Katherine M. Toth.
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Depatman Jistis la Siyen yon Akò ak Sistèm Tribinal Inifye nan Eta New York la pou Rezoud Tit VI Evalasyon Aksè ak LangRead the Press Release
Depatman Jistis la te anonse jodi a siyati yon akò (MOU) ak Administrasyon Sistèm Tribinal Eta New York la, Biwo Administrasyon Tribinal la (OCA) pou amelyore aksè nan Tribinal pou Trètman Dwòg nan Distri Rockland, New York, pou moun ki gen konpetans limite nan anglè (LEP). Depatman an aplike Tit VI Lwa sou Dwa Sivil 1964 yo (Tit VI) "Title VI of the Civil Rights Act of 1964 (Title VI)" ki entèdi diskriminasyon sou baz ras, koulè ak peyi kote w soti bò kote benefisyè èd finansye yo. Entèdiksyon diskriminasyon an kapab gen ladan l pa rive bay aksè lengwistik nesesè.
"Asire jistis ekitab dapre lalwa vle di aji nan yon fason ki jis, fyab e konpreyansif pou toutmoun, men sa pa rive sof si moun ki enplike nan pwosesis jistis la kapab kominike ak youn lòt, se sa Asistan Pwokirè Jeneral, Kristen Clarke, Divizyon Dwa Sivil nan Depatman Jistis la te deklare. "Yo pa dwe penalize moun akoz yo gen konpetans ki limite nan anglè epi dwe resevwa sèvis asistans lengwistik yo bezwen pou patisipe yon fason ki jis nan pwosedi tribinal yo ak fòmasyon oswa pwogram trètman tribinal mande ki pou fèt. Akò sa sèvi tankou yon modèl pou asire aksè nan tribinal, ki gen ladan l pwogram ak sèvis yo, pou tout moun, kèlkeswa konpetans anglè yo genyen, epi prezante aksyon yo kapab poze pou kraze baryè pou ki konparèt nan tribinal ak konpetans yo nan anglè ki limite."
"Manm komite a pa dwe nye aksè nesesè nan pwosedi tribinal yo ak pwogram ki ofri altènatif nan santans tradisyonèl yo akoz konpetans yo nan anglè ki limite," se sa Pwokirè Ameriken an Damian Williams se sa li deklare pou Distri Sid New York la. "Nou remèsye Biwo Pwokirè Distri Rockland lan ak OCA paske y ap travay ak nou pou asire Tribinal pou Trètman Dwòg nan Distri Rockland lan disponib pou tout patisipan ki elijib yo, e nou espere pwotokòl akò sa kapab sèvi tankou yon modèl pou tout tribinal nan distri saa pou asire aksè nesesè pou moun ki gen konpetans limite nan anglè, nan konfòmite ak Tit VI la."
Depatman Jistis la te revize yon plent konsèman moun ki gen konpetans limite nan anglè (LEP) pa kapab patisipe konplètmannan Tribinal pou Trètman Dwòg nan Distri Rockland lan paske li pa t bay aksè lengwistik nesesè. Yon ti tan apore plent lan, OCA te in enplike nan pwosedi aksè lengwistik pou Tribinal pou Trètman Dwòg nan Distri Rockland lan ak OCA te finaman pran responsablite pou Tribinal la an mas.
Ansanm ak Biwo Pwokirè Distri Rockland lan, ki responsab Tribinal pou Trètman Dwòg anvan mas, OCA te pase nan lòt etap pou bay aksè nesesè pou itilizatè ki gen konpetans nan anglè nan Tribinal pou Trètman Dwòg nan Distri Rockland lan pandan depatman ap revize dosye sa a. Pami lòt aksyon ki fèt, OCA te pran angajman pou bay sèvis entèpretasyon pou tout pwosedi tribinal yo gratis ak fè dyalòg ak pati enterese yo nan Tribinal pou Trètman Dwòg nan Distri Rockland lan konsènan aksè nesesè pou moun ki gen konpetans limite nan anglè (LEP).
Dapre MOU, OCA ap franchi yon kantite etap anplis pou asire gen aksè nesesè pou patisipan ki gen konpetans limite nan Tribinal pou Trètman Dwòg nan Distri Rockland lan. Etap sa yo ap gen ladan yo tradiksyon tout dokiman yo an espanyòl, kreyòl ak Yidich, ak nan lòt lang sou demann, epi sekirize founisè trètman yo ap ofri pwogram trètman sou lòd tribinal la yon fason ki bay aksè nesesè pou ki gen konpetans limite nan anglè san sa pou koute patisipan yo yon santim anplis.
Enfòmasyon siplemantè sou Divizyon Dwa Sivil yo disponib sou sitwèb li a nan www.justice.gov/crt. Enfòmasyon sou konpetans limite nan anglè ak Tit VI la disponib nan www.lep.gov. Manm popilasyon an kapab denonse vyolasyon dwa sivil posib nan www.civilrights.justice.gov/report/ or with the U.S. Biwo Pwokirè pou Distri Sid New Yorkla nan www.justice.gov/usao-sdny/civil-rights.
Defendants Sentenced to Prison for Conspiracy to Sell Sanctioned Iranian Petroleum to ChinaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zhenyu (“Bill”) Wang, 43, of Dallas, Texas, and Daniel Ray Lane, 42, of McKinney, Texas, who were convicted at trial in November 2023, were sentenced to prison today by United States District Judge Harvey Bartle III on charges of attempting to violate the International Emergency Economic Powers Act (“IEEPA”), conspiracy to violate IEEPA, and conspiracy to commit money laundering, based on their attempt to transact in sanctioned petroleum and launder the proceeds.
Wang, a Chinese citizen, and Lane, a U.S. citizen, were each sentenced to 45 months’ imprisonment followed by three years of supervised release. In January 2024, Wang and Lane’s co-conspirator Nicholas Hovan was sentenced to imprisonment for 12 months and a day, and co-conspirators Nicholas Fuchs and Robert Thwaites were each sentenced to 10 months’ imprisonment.
From July 2019 to February 2020, the defendants schemed to evade United States economic sanctions against the Islamic Republic of Iran (“Iran”) by facilitating the purchase of sanctioned oil from Iran, masking its origins, and selling the oil under masked origins to buyers in the People’s Republic of China. To accomplish their goal, the conspirators communicated among themselves and with third parties concerning, among other things, concealing the origin of the oil and the overall illegal transaction, financing the transaction, preparing contracts and other documents needed to effect the sale, shipping the sanctioned Iranian oil, obtaining Antiguan passports to facilitate the transaction and to establish offshore bank accounts to receive funds, distributing proceeds from the intended sale of the sanctioned Iranian oil, and concealing and disguising the nature, the location, the source, the ownership and the control of the proceeds of the intended transaction.
Wang played a critical role in this conspiracy, providing the connection to the Chinese buyers who would purchase the Iranian oil. As part of his efforts, Wang communicated with multiple parties in China, secured a written offer from a Chinese buyer, and brokered a contract of sale with this buyer. He also arranged for bribe payments to be made to Chinese officials to facilitate the illegal transaction. Lane agreed to help launder the Iranians’ proceeds from the transaction. He offered to use the mineral rights that he sold through his business, Stack Royalties, to conceal the Iranians’ profits, and even purchased a cash machine to count the millions of dollars of laundered proceeds quickly. Wang and Lane worked with three other conspirators who acted as intermediaries seeking buyers for the sanctioned oil.
The conspirators believed that they would profit handsomely from the scheme to evade U.S. sanctions through significant shipments of sanctioned Iranian oil. They planned to start their scheme with a 500,000-barrel shipment of Iranian oil, but intended to increase the shipments to 1 million or 2 million barrels per month for a year or more. Lane and another co-conspirator understood that the scheme was to be funded by an initial $5 million payment, which would include $4 million provided in cash. And the conspirators believed that they would make significant profits, with Wang stating that he planned to make $1.5 million in profit for each 500,000-barrel shipment.
Wang and Lane acted fully aware that the scheme to sell sanctioned Iranian crude oil was in violation of U.S. sanctions against Iran. In fact, both defendants made statements explicitly acknowledging that their conduct was illegal. Wang, for example, acknowledged the profits he stood to make by engaging in illegal transactions, stating that “I love sanction to be honest with you and the sanctions make everybody money.” Similarly, Lane discussed concealing and disguising the proceeds of the transactions in sanctioned Iranian oil, noting that “sanctions can always be massaged . . . you know, there is always a way around it.”
“It’s one thing to be entrepreneurial and take risks, but when your business plan hinges on evading U.S. sanctions, you’re doing it wrong,” said U.S. Attorney Romero. “Wang, Lane, and their co-conspirators’ scheme to make millions also would have enriched Iran, one of our government’s foreign adversaries, in direct contravention of measures meant to protect American interests and national security. Holding accountable those who violate our sanctions laws and export controls is a priority for my office and our partners at the FBI.”
“In seeking personal profits, these co-conspirators attempted to violate sanctions put in place to protect the United States’ national security,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Let this sentence serve as a reminder – those who seek to orchestrate such criminal acts will be brought to justice.”
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Patrick J. Murray and Mary E. Crawley.
Chicago man, woman charged in fraud scheme targeting North Pole businessRead the Press Release
FAIRBANKS, Alaska – A federal grand jury in Alaska returned an indictment charging a Chicago man and woman with allegedly running a scheme to defraud a North Pole restaurant of over $128,000.
According to court documents, from July to August 2022, Jacob Centeno, 39, and Amber Davila, 35, allegedly illegally obtained banking and identification information for the restaurant and restaurant owner by gaining access to their email. The defendants used this information and access to misrepresent themselves as the owner and divert proceeds from the owner’s bank account to a different account registered under a false identity that the defendants created and had access to.
In total, roughly $128,246 was diverted to the defendants’ fraudulent bank account between Aug. 4 and Aug. 9, 2022.
As part of the scheme, Centeno and Davila allegedly purchased over $41,000 worth of money orders from the fraudulent bank account over the course of multiple days in Chicago. They then deposited the money orders into their various personal and business accounts in aggregate amounts of less than $10,000. Finally, to further conceal their scheme, they withdrew money from a business account registered in their names and deposited it into their personal accounts.
Centeno and Davila were arrested in Chicago on June 4 and are charged with one count of aggravated identity theft in violation of 18 U.S.C. §1028A(a)(1), one count of conspiracy to commit wire fraud in violation of 18 U.S.C. §1349, five counts of wire fraud in violation of 18 U.S.C. §1343, one count conspiracy to commit money laundering in violation of 18 U.S.C. §1956(h), 18 U.S.C. §1956(a)(1)(B)(i), and eight counts of money laundering in violation of 18 U.S.C. §1956(a)(1)(B)(i). The defendants will make their initial court appearance on a later date. If convicted, they face a mandatory minimum of two years for aggravated identity theft, which is served consecutive to any other sentence for their alleged crimes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.
The FBI Anchorage Field Office, FBI Fairbanks Resident Agency, FBI Chicago Field Office and North Pole Police Department are investigating the case.
Assistant U.S. Attorneys Carly Vosacek and Michael Heyman are prosecuting the case. The U.S. Attorney’s Office, Northern District of Illinois provided significant legal support in this case.
If you or someone you know might be a victim of fraud or other crime, you can report it to the FBI at tips.fbi.gov or through the Internet Crime Complaint Center (IC3) at ic3.gov.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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UPDATE: This release has been updated to no longer state that the indictment came back "today" and correct the year in paragraph three from "2024" to "2022" in the text.
Chesapeake man sentenced for armed robberies of USPS mail carriersRead the Press Release
NEWPORT NEWS, Va. – A Chesapeake man was sentenced today to 12 years in prison for his role in a conspiracy to rob U.S. Postal Service (USPS) mail carriers at gunpoint for their “arrow keys,” including as a gunman in one of the armed robberies.
According to court documents, O’Sirus Charles Landres Ford, 22, was a member of a social media group identified by three key emojis (“Three Keys”), the members of which conspired to steal arrow keys, the master keys used by USPS mail carriers to access blue collection boxes, outdoor parcel lockers, and apartment mailbox panels. Arrow keys are highly valued by criminals who use them to steal mail in lucrative criminal schemes, such as bank and check fraud and identity theft. Group members discussed how to commit the robberies – including selecting targets, using firearms, and techniques to evade law enforcement and mask their identities – and participating in related financial fraud and identity theft schemes. Ford was explicitly cautioned to proceed carefully since the crime was federal with a more severe penalty.
On May 8, 2023, co-conspirators rented a car for May 8 and 9 through Turo, a peer-to-peer car-sharing platform that allows users to rent cars from each other, to use to commit arrow key robberies. Ford recruited two other individuals, including a minor, to commit the robbery and conducted reconnaissance in Hampton before shifting the target to Norfolk. After identifying a target mail carrier on Ballentine Boulevard, they turned onto Davis Street, where two of the co-conspirators exited the car and the third drove it further down Davis. One of the conspirators (the minor) brandished a firearm and robbed the carrier of his arrow key and USPS identification card. Ford and the minor then fled back toward Davis Street where the third co-conspirator picked them up.
After the robbery, Ford told his two co-conspirators that other co-conspirators did not want arrow keys from Norfolk, but asked them to participate in another robbery the following day in Newport News. The two had other commitments, though, and Ford recruited Jayden Stukes, 21, of Suffolk, to assist him in the robbery.
Ford requested that Stukes drive him “across the water.” Stukes agreed and informed Ford he would be with Da’Twan Watson, 24, of Chesapeake, and that Watson was “a lock.” When Ford, Stukes, and Watson met at the rental car that Ford had used the previous day, they were unable to gain entry to the vehicle, so Stukes arranged for another of his friends to drive the group. Ford, Stukes, and Watson were all armed with handguns and wore masks that could cover their faces.
After they crossed Hampton Roads, Ford diverted the car from the original destination, the downtown Newport News Post Office, and instead directed the vehicle around a light industrial-commercial area of Hampton. Ford and Watson exited the vehicle to continue hunting down the carrier on foot, and Stukes remained in the car with the driver and relayed details about the carrier’s location.
Watson and Ford encountered the carrier on Galax Street in Hampton. Only Ford was armed, but both he and Watson were fully masked as Watson approached from the side. Ford approached the carrier from Galax Street, brandished his firearm, and said, “Give me your keys or I’m gonna shoot you.” He then repeated his demand and began counting down from five. The victim gave Ford his USPS arrow key. Ford and Watson then fled, eventually meeting with Stukes and the driver in an apartment complex nearby, before the driver drove the group back across the water.
On Dec. 21, 2023, Ford pleaded guilty to one count of conspiring to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing a firearm in furtherance of, a crime of violence.
On Dec. 13, 2023, Watson pleaded guilty to interfering with commerce by robbery and aiding and abetting. On April 18 he was sentenced to four years in prison.
On Dec. 15, 2023, Stukes pleaded guilty to interfering with commerce by robbery and aiding and abetting. On April 17 he was sentenced to four years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ajay Lall, Acting Inspector in Charge of the U.S. Postal Inspection Service – Washington Division; Jimmie Wideman, Chief of Hampton Police; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorneys Julie Podlesni and Mack Coleman 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. 4:23-cr-51.
Charity Founder and CEO Charged with Embezzling Millions from Organization and Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of a Complaint charging KEITH TAYLOR with defrauding a charity he ran by embezzling approximately $2.5 million in donations meant for low-income families and spending them instead on personal expenses including rent in a luxury apartment building in midtown Manhattan, food delivery services, cosmetic surgery, and lavish meals at some of New York City’s most expensive restaurants. TAYLOR was arrested today and will be presented in Manhattan federal court before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Damian Williams said: “As alleged, Keith Taylor falsely claimed that donations to his charity would help working families with unexpected expenses that put them at risk of homelessness. Instead, Taylor allegedly took those donations to pay for his meals at upscale restaurants, rent for a luxury apartment in a Manhattan skyscraper, and even cosmetic surgery. Taylor allegedly defrauded the charity’s donors and unconscionably took money from the pockets of those most in need, and he is now facing federal charges for his alleged crimes.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “Taylor acted like a do-gooder, founding a charity meant to help underserved communities. But it’s alleged he later took this as an opportunity to victimize both his donors and his own charity by pocketing millions in donations to live a luxurious lifestyle. Today’s arrest means that Taylor can no longer allegedly exploit the kindness of others for his own gain, and he now faces the consequences of his alleged greed.”
As alleged in the Complaint:[1]
KEITH TAYLOR founded a charity in 2002 that used a crowd-sourcing funding model to help low-income workers pay for unexpected expenses like medical bills or broken appliances. Its mission was to provide short-term financial assistance to individuals and families that were living paycheck-to-paycheck who were faced with an unexpected crisis or expense that they could not pay.
Between at least 2016 and May 2024, TAYLOR embezzled more than $2.5 million from the charity and its donors and used that money to fund his lavish personal spending. TAYLOR regularly dined at Per Se, Jean-Georges, Masa, and Marea in midtown Manhattan, sometimes as often as twice a day, spending more than $320,000 of charity funds at New York City restaurants and steakhouses. Funds donated to the charity paid over $300,000 of TAYLOR’s rent for a luxury apartment on the 30th floor of a midtown Manhattan skyscraper. TAYLOR also used charity funds to buy himself expensive electronics, to pay over $100,000 to food delivery services, and to pay for his own cosmetic surgery. TAYLOR put over $270,000 of charity funds directly into his personal brokerage account. TAYLOR also routinely paid his other personal expenses from the charity’s bank accounts.
TAYLOR attempted to hide his embezzlement of charity funds by creating a fake board of directors and claiming it had approved his personal spending. TAYLOR used the names of his acquaintances and falsely listed them on the charity’s website as board members. TAYLOR’s acquaintances who were listed as the charity’s board members included a bartender from Jean-Georges, a friend, and his house-cleaner, none of whom ever attended a board meeting or even knew that they had been listed on the charity’s website as board members.
For at least the calendars years of 2017 through 2022, TAYLOR did not file personal income tax returns or pay income taxes on the income he received from the charity.
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TAYLOR, 56, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison, and six counts of tax evasion, each of which carry a maximum sentence of five years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the exceptional investigative work of IRS-CI and the Special Agents of the United States Attorney’s Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Rebecca R. Delfiner and Eli J. Mark are 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.
Captain of Oil Tanker Pleads Guilty to Obstruction and Violating Ship Pollution Prevention LawsRead the Press Release
Captain Abdurrahman Korkmaz, 37, pleaded guilty today to a two-count information charging him with violating the Act to Prevent Pollution from Ships (APPS) and for obstructing proceedings. Korkmaz, a Turkish national, was the captain of the PS Dream, a Panama-flagged motor tanker. The two related companies that operated the PS Dream pleaded guilty last month to environmental crimes.
The PS Dream arrived in New Orleans on Jan. 26, 2023. The U.S. Coast Guard conducted an inspection which included a review of the vessel’s oil record books. In his plea, Korkmaz acknowledges presenting the books to the Coast Guard knowing that they omitted information about discharging oily waste to the ocean before arriving in the United States. The falsified logs were intended to conceal the fact that beginning on Jan. 11, the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with international treaties regulating oil pollution from ships.
According to documents and statements filed in court, Korkmaz ordered his crew to pump overboard from the residual oil tank which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew.
Senior managers at Prive Shipping LLC and Prive Shipping Denizcilik Ticaret – two related companies that operated the ship – were aware that the oil-contaminated waste remained in the tank and were informed by Korkmaz that it had been dumped overboard. Both companies pleaded guilty and are scheduled for sentencing on Sept. 26.
Korkmaz is scheduled to be sentenced on Sept. 10. He faces a maximum penalty of six years in prison, with a fine of up to $250,000, or twice the gain or loss from the offense, for the APPS charge. He also faces a maximum penalty of five years in prison, with a fine of up to $250,000, or twice the gain or loss from the offense, for the obstruction charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Damon J. Youmans of the Coast Guard Investigative Service’s Gulf Field Office and Captain Greg Callaghan, Commander of U.S. Coast Guard Sector New Orleans made the announcement.
The Coast Guard Investigative Service and the Environmental Protection Agency’s Criminal Investigations Division investigated the case with assistance from U.S. Coast Guard Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Bridgewater, Vermont Man Sentenced for Conspiracy to Distribute OpioidsRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 10, 2024, Law Zabriskie, 66, of Bridgewater, Vermont, was sentenced by United States District Judge William K. Sessions III to a time-served sentence to be followed by a three-year term of supervised release. As part of Zabriskie’s sentence, the Court also ordered Zabriskie to pay a $10,000 forfeiture money judgment. Zabriskie previously pleaded guilty to conspiracy to possess with intent to distribute Tapentadol, a Schedule II controlled substance, as well as Tramadol, Carisoprodol, and Zolpidem, Schedule IV controlled substances.
According to court records, beginning in or about 2019 through on or about June 29, 2021, Law Zabriskie and others became involved in receiving and redistributing controlled substances and misbranded pharmaceutical drugs. The substances typically were shipped from outside the United States and received in Vermont. Zabriskie and others maintained mailboxes in Vermont and elsewhere where they received packages containing controlled substances and misbranded drugs, and Zabriskie and others also received shipments at their residences in Vermont. These substances included pills containing opioids Tapentadol and Tramadol, as well as Carisoprodol, a muscle relaxant, among others.
During the conspiracy, Zabriskie and others communicated using email and other electronic platforms to discuss shipping arrangements, customer payments, and marketing materials. Zabriskie and others then redistributed the controlled substances and misbranded drugs to customers throughout the United States, typically by U.S. mail. Some shipments were mailed from post offices in the District of Vermont.
In June 2021, law enforcement executed a search warrant at the residence of one of Zabriskie’s coconspirators in Bethel, Vermont and seized about 14,449 pills containing Schedule II and IV drugs. Also in June 2021, law enforcement executed a search warrant at Zabriskie’s residence in West Bridgewater, Vermont and recovered shipping material and approximately 15,000 Zolpidem pills concealed in packages of baked goods.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Food and Drug Administration Office of Criminal Investigations, Homeland Security Investigations, the Drug Enforcement Administration, the United States Postal Inspection Service, and the Rutland City Police Department.
“The FDA is charged with ensuring that prescription drugs distributed to U.S. consumers are safe and effective. When criminals introduce prescription drugs into the U.S. that are not FDA-approved, they jeopardize the public’s health,” said Fernando McMillian, Special Agent in Charge, FDA Office of Criminal Investigations, New York Field Office. “The FDA is committed to doing our part to disrupt and dismantle illegal prescription drug distribution networks, including those that import unapproved drugs from overseas and distribute those drugs with reckless disregard for the risk to all consumers’ health.”
The case was prosecuted by Assistant U.S. Attorney Andrew C. Gilman and, previously, by Assistant U.S. Attorney John J. Boscia. Zabriskie was represented by Brooks McArthur, Esq.
Bay Area Man Sentenced to 24 Months of Imprisonment for Breaking and Entering A Mail Truck and Stealing over 700 Pieces of MailRead the Press Release
OAKLAND – Craig Curtis Freeman was sentenced to 24 months of imprisonment for breaking and entering a U.S. Postal Service mail truck and mail theft, announced United States Attorney Ismail J. Ramsey and U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez. The sentence was handed down on May 29, 2024, by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Freeman, 35, of Sacramento, pleaded guilty pursuant to a plea agreement on the same day he was sentenced. Court filings describe how on December 30, 2022, a mail carrier, while on his route, heard a gunshot and observed two people – Freeman and a co-defendant – taking mail from his mail truck and then fleeing in a vehicle. In his plea agreement, Freeman admitted that he had been driving a stolen car when he pulled up behind the U.S. Postal Service mail truck and exited his vehicle. Freeman admitted he broke the lock of the truck’s rear cargo door, removed more than 700 pieces of mail, placed it into the stolen car and drove away. Within minutes, law enforcement caught up with Freeman, who was still with the co-defendant, and attempted a traffic stop. The defendants’ vehicle crashed into a truck after which both thieves fled from the scene; Freeman jumped into the truck and his co-defendant continued to flee in the stolen car. Freeman drove the truck at a high rate of speed through the streets of San Leandro before entering I-880 North through the exit off-ramp. Freeman was able to evade police while driving the stolen truck in the wrong direction on the freeway but was later apprehended. The co-defendant, who fled in the stolen car Freeman initially drove, was quickly apprehended after crashing and attempting to flee on foot.
A federal grand jury indicted Freeman on March 28, 2023, charging him with breaking and entering into a carrier facility, in violation of 18 U.S.C. § 2117, and possession of stolen mail and mail theft, in violation of 18 U.S.C. § 1708. Freeman pleaded guilty to both counts.
This case was charged in 2023 as part of a law enforcement response to an uptick in burglaries, robberies, assaults, and homicides targeting postal workers. The law enforcement surge was announced at a press conference on October 10, 2023, at which U.S. Attorney Ramsey and Postal Inspector in Charge Nuñez discussed the crimes and the federal response to them. Postal Inspector in Charge Nuñez stated, “there is no more important mission for us as federal agents than protecting postal workers from crime and violence …. To any copycats or wannabes out there who might consider robbing a postal worker, I ask you to consider the years you will face in federal prison, the price on your head, and that postal inspectors will not stop hunting you. The proceeds of this crime are not worth your freedom.” U.S. Attorney Ramsey reinforced Postal Inspector in Charge Nuñez’s remarks by explaining that federal laws have been “carefully crafted to protect the sanctity of the mail, including the sensitive information we entrust to the mail system; the safety of the federal employees and contractors who deliver the mail; and the federal property that is used to ensure mail delivery.”
Special Assistant U.S. Attorney Cynthia Johnson prosecuted the case with the assistance of Beth Margen. The prosecution is the result of an investigation by the U.S. Postal Inspection Service, the Alameda County Sheriff’s Office, and the Oakland Police Department.
Arizona Man Sentenced to 20 Years in Prison for Child Sexual AssaultRead the Press Release
ALBUQUERQUE – An Arizona man was sentenced to 20 years in the Bureau of Prisons for the sexual assault of a 15-year-old girl on the Navajo Nation reservation.
There is no parole in the federal system.
Darwin Chee, 53, an enrolled member of the Navajo Nation, used threats of force and the fear of serious bodily injury to repeatedly sexually assault Jane Doe, a child relative within his care, at a residence located within the exterior boundaries of the Navajo Nation.
After completing his term of imprisonment, Chee will be required to serve a lifetime of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Mark A. Probasco prosecuted the case.
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Arizona Man Charged with Selling Guns for Use in Mass ShootingRead the Press Release
PHOENIX, Ariz. – Mark Adams Prieto, 58, of Prescott, was indicted by a federal grand jury today on Firearms Trafficking, Transfer of a Firearm for Use in a Hate Crime, and Possession of an Unregistered Firearm.
The indictment alleges that, between January 2024 and May 2024, Prieto had discussions with two individuals working with the Federal Bureau of Investigation to devise a plan to commit a mass shooting of African Americans and other minorities to incite a race war prior to the 2024 United States Presidential Election. Prieto did not know the individuals were working with the government, but instead believed that they shared his racist beliefs and wanted to commit a mass shooting to incite a race war. The targeted event was a concert in Atlanta that was going to be held on May 14 and May 15, 2024.
The indictment further alleges that, having discussed specific details about the planned attack, Prieto sold two rifles to one of the individuals, an AK-style rifle on February 25, 2024, and an AR-style rifle on March 24, 2024. During the entire investigation, the Federal Bureau of Investigation closely monitored Prieto’s movements. On May 14, 2024, Prieto was stopped by law enforcement driving east from Arizona through New Mexico along Interstate 40. Prieto was in possession of seven firearms and was taken into federal custody. Law enforcement then executed a search warrant at his home in Prescott. Law enforcement found more firearms in his residence, including an unregistered short-barreled rifle.
Each conviction for Firearms Trafficking and Transfer of Firearm for Use in a Hate Crime carries a maximum penalty of 15 years in prison, a fine of $250,000, or both. A conviction for Possession of an Unregistered Firearm carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Phoenix Field Office of the Federal Bureau of Investigation conducted the investigation in this case, with assistance from the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Field Office of the Federal Bureau of Investigation, the Department of Veteran’s Affairs Office of Inspector General, the Arizona Attorney General’s Office, and the Prescott Police Department. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Mexico. The U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution, along with the U.S Department of Justice, Civil Rights Division, and the U.S. Department of Justice, National Security Division’s Counterterrorism Section.
RELEASE NUMBER: 2024-074_Prieto# # #
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.
10 June 2024
Woman Sentenced for Dozens of Fraudulent Applications for Pandemic Relief Funds Resulting in the Theft of More Than $200,000 from TaxpayersRead the Press Release
CONCORD – A former Derry woman was sentenced today in federal court for her role in submitting fraudulent applications for COVID-19 pandemic relief funds and stealing more than $200,000 from taxpayers, U.S. Attorney Jane E. Young announces.
Tammy Dodge, 44, was sentenced by U.S. District Court Paul J. Barbadoro to 12 months and 1 day in federal prison and 2 years of supervised release. On March 4, 2024, Tammy Dodge plead guilty to one count of bank fraud. Her husband and co-conspirator, David Dodge, was sentenced to 34 months in prison on May 29, 2024. The Dodges were ordered to pay $219,323.34 in restitution.
“The defendant, along with her husband, submitted numerous fraudulent applications for COVID relief funds intended for individuals and businesses who suffered financial harm as a result of the pandemic,” said U.S. Attorney Jane E. Young. “The defendant’s fraud not only resulted in the theft of hundreds of thousands of taxpayer dollars, but her actions also undermined the public of its confidence in pandemic relief programs. The sentence imposed today shows that those who stole from taxpayers during the COVID pandemic face federal prison time for their crimes.”
“The Treasury Inspector General for Tax administration (TIGTA) aggressively investigates the abuse of IRS systems to defraud federal and state relief programs through fraudulent applications,” stated Special Agent-in-Charge Michael Carpenter. “In this case, the defendant diverted COVID-19 pandemic relief funds intended for legitimate businesses and their employees for personal gains.”
The Dodges claimed to own or control multiple businesses in New Hampshire and Massachusetts, including Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right. However, these companies had no operations and served no business purpose.
The Dodges submitted dozens of fraudulent applications for Paycheck Protection Program (PPP) loans from private lenders, Economic Injury Disaster Loans (EIDLs) from the Small Business Administration, and pandemic relief grants from the New Hampshire Governor’s Office for Emergency Relief and Recovery (GOFERR) and the Massachusetts Growth Capital Corporation (MGCC). To commit the fraud, the Dodges also used the Social Security Number of a minor child to apply for and obtain an Employer Identification Number from the IRS for a fictional company called Consulting Services.
The Dodges used fake supporting documents in the applications. For example, on May 6, 2020, Tammy Dodge applied for a $30,064 PPP loan for Teacher Tammy. She provided multiple fake supporting documents, including a fraudulent tax filing claiming she paid employees $132,000 in 2019, and a false Certificate of Formation purportedly issued by the New Hampshire Secretary of State.
Overall, because lenders detected most of the fraudulent applications, the Dodges obtained $219,323.34. They misused the fraudulently obtained funds, including to purchase a hot tub and a diamond ring.
The Treasury Inspector General for Tax Administration led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Windsor Woman Admits Providing Smuggled Narcotics to Inmate at Pennsylvania PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SAMANTHA ELLIS, 34, of Windsor, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to providing contraband to an inmate at a federal prison in Pennsylvania.
According to court documents and statements made in court, Tyshawn McDade was serving a term of incarceration at the U.S. Penitentiary in Allenwood, Pennsylvania (USP Allenwood). On November 12, 2022, Ellis smuggled a small blue balloon containing approximately 20 packaged strips of Suboxone Sublingual Film, which is a Schedule III controlled substance and narcotic, into USP Allenwood’s visiting room and provided the contraband to McDade. McDade then swallowed the balloon. A corrections officer noticed what occurred and immediately ended the visit, and the exchange was captured on video.
On September 28, 2023, a federal grand jury in Williamsport, Pennsylvania, returned an indictment charging McDade and Ellis with the offense. The case against Ellis was subsequently transferred from the Middle District of Pennsylvania to the District of Connecticut for further prosecution.
Judge Nagala scheduled sentencing for September 3, at which time Ellis faces a maximum term of imprisonment of 20 years. She is released on a $10,000 bond pending sentencing.
As to McDade, an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. The case is being prosecuted by Assistant U.S. Attorneys Sean P. Mahard of the District of Connecticut and Geoffrey W. MacArthur of the Middle District of Pennsylvania.
Wanblee Man Sentenced to Ten Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wanblee, South Dakota, man convicted of Discharge of a Firearm During the Commission of a Crime of Violence. The sentencing took place on June 7, 2024.
Francis White Lance, 68, was sentenced to 10 years in federal prison, followed by two years of supervised release, and ordered to pay $100 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
White Lance was indicted for Bank Robbery and Discharge of a Firearm During the Commission of a Crime of Violence by a federal grand jury in November of 2022. He pleaded guilty on March 20, 2024.
On November 7, 2022, White Lance entered the Lakota Federal Credit Union in Kyle, South Dakota, armed with a semi-automatic rifle, and robbed the credit union. He discharged the rifle during the robbery, firing a bullet over the head of one of the tellers. White Lance fled Kyle but was quickly identified by law enforcement. All but $100 of the money White Lance stole from the credit union was recovered by the FBI following his apprehension. At the sentencing, U.S. District Judge Schreier denounced the “horrible message” White Lance’s actions sent to the community and the damage he inflicted by robbing the credit union.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
White Lance was immediately remanded to the custody of the U.S. Marshals Service.
Violent Boston Gang Member Who Posed with Firearms on Snapchat Sentenced to More Than Six Years in PrisonRead the Press Release
BOSTON – A Boston-area man was sentenced on Friday, June 7, 2024 for illegally possessing a firearm while under house arrest for three state firearm charges.
Trevon Bell, 27, of Boston and Lynn, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 78 months in prison, and three years of supervised release. Bell pleaded guilty to being a felon in possession of a firearm in November 2023.
As part of a 2021 investigation into a violent Boston gang, law enforcement intercepted a Snapchat “chat” comprised of individuals who regularly displayed images of themselves in possession of firearms.
One of the individuals identified in the chat was Bell – a member of the violent Boston-based Heath Street gang. Bell had been indicted on three separate unlawful possession of a firearm and ammunition cases in state court for which he was released on home detention with location monitoring via GPS bracelet. However, the investigation revealed that, while on state pre-trial release, Bell had posted numerous videos of himself in possession of firearms to Snapchat, including a Nov. 24, 2021 video that showed him in possession of a black semi-automatic Glock 9 millimeter firearm. The firearm has since been recovered:
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments and the Suffolk County Sheriff’s Department. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit prosecuted the case.
United States Sues Telehealth Providers and Executives for Unfair and Deceptive ConductRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the United States filed an amended complaint against telehealth company Cerebral Inc., Cerebral’s founder and former Chief Executive Officer, Kyle Robertson; former Cerebral executive Alex Martelli; telehealth companies Zealthy Inc., Gronk Inc. and Bruno Health P.A. and an executive of those companies, German Echeverry. The government has settled its claims against Cerebral, Inc. The proposed stipulated order pending approval by the U.S. District Court for the Southern District of Florida would require Cerebral to cease misusing and improperly disclosing patient information, misrepresenting its data privacy or security practices and misrepresenting its cancellation practices. Upon issuance of the order, Cerebral will also be required to pay approximately $5 million in consumer redress in addition to a civil penalty judgment of $10 million, which is suspended to $2 million based on its limited ability to pay.
The Justice Department continues to pursue relief arising from its claims against Robertson and Martelli, as well as telehealth companies Zealthy Inc., Gronk Inc. and Bruno Health P.A. and their executive German Echeverry.
The Unlawful Conduct of Cerebral and Its Executives
The United States alleges that Cerebral and Robertson violated the Federal Trade Commission Act (FTC Act), the Opioid Addiction Recovery Fraud Prevention Act of 2018 (the Opioid Act) and the Restore Online Shoppers’ Confidence Act (ROSCA) in connection with their misuse of patients’ sensitive personal health information, failure to keep that information private and secure and use of deceptive, burdensome and convoluted cancellation practices.
According to the amended complaint, which was filed on May 31, Cerebral and Robertson violated the FTC Act in two primary ways. First, the company failed to protect consumers’ sensitive health information when — at Robertson’s direction — it intentionally deployed online tracking technologies across its website. These tracking technologies collected and transmitted users’ information, without users’ informed consent, to third parties for business purposes such as targeted advertisements. In doing so, the company contravened its own express claims that its services were “private” or “confidential,” and that it would not disclose user data to third parties without the users’ consent.
Second, Cerebral and Robertson failed to safeguard consumers’ sensitive data from unauthorized disclosure, despite claiming that the company’s website offered “secure” services to do so. Cerebral’s deficient practices led to chronic data security breaches and repeated unauthorized disclosures of users’ sensitive health information.
The amended complaint also alleges that Robertson and Martelli violated the FTC Act by causing Cerebral employees to falsely impersonate patients on online review sites, post fictitious reviews praising the company’s services and suppress authentic, negative reviews of the company.
The amended complaint further alleges that Cerebral and Robertson violated ROSCA by failing to clearly disclose material terms related to data privacy, data security and cancellation before obtaining patients’ billing information, by failing to obtain patients’ informed consent before billing them, and by failing to provide consumers with simple mechanisms to cancel their Cerebral subscriptions. As a result, Cerebral obtained millions of dollars from consumers who unsuccessfully attempted to cancel their subscriptions.
Finally, the amended complaint alleges that Cerebral, Robertson and Martelli violated the Opioid Act by engaging in deceptive acts or practices with respect to substance use disorder treatment services.
The Unlawful Conduct of Zealthy Inc. and Its Executives
The amended complaint further alleges that Robertson continued to violate the FTC Act and ROSCA after he left Cerebral. In May 2022, Robertson founded another telehealth company, Zealthy Inc. (later renamed Gronk Inc.), which he heads alongside German Echeverry, its Medical Director. According to the Amended Complaint, through Zealthy and its affiliated medical corporation, Bruno Health, Robertson and Echeverry violated ROSCA by failing to clearly disclose material terms of online subscriptions before obtaining consumers’ billing information, by failing to obtain consumers’ express informed consent to those terms before charging their credit cards and by failing to provide consumers with a simple cancellation process to stop recurring charges. The government also alleges that Zealthy and its executives violated the FTC Act by committing unfair and deceptive business practices. Such practices include billing consumers for costs they did not knowingly agree to; misleading consumers about the terms of their telehealth subscriptions; disregarding consumers’ cancellation requests and making it challenging for consumers to cancel; and tracking, collecting, disclosing and using consumers’ sensitive, personal data in ways that were not fully disclosed to consumers and that consumers did not knowingly authorize.
The department will continue to pursue civil penalties, injunctive relief and monetary relief against Robertson, Martelli, Echeverry, Bruno Health and Zealthy.
“The Justice Department is committed to stopping companies and their executives from mishandling and misusing individuals’ sensitive personal health information, and from implementing predatory billing practices,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Consumers who turn to telehealth companies for treatment expect that their sensitive health information will be handled with great care and that companies will abide by the representations they have made rather than flouting their stated policies for the sake of profits and growth. This case reflects the department’s commitment to making sure that telehealth companies follow the law and safeguard the rights of those who seek treatment from them. We will continue to work with the FTC to vigorously enforce the FTC Act, the Opioid Act and ROSCA.”
“Companies shouldn’t take shortcuts on privacy or security, or hinder patients from cancelling services they no longer want,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “By continuing this case against the company’s former CEO, the government demonstrates its commitment to seeing that executives are held accountable for their misconduct.”
Trial Attorneys Shana C. Priore, Joshua A. Fowkes, Francisco L. Unger and Amber M. Charles of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rosaline Chan, in conjunction with staff at the FTC’s Division of Enforcement, are prosecuting the case.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
The claims made in the amended complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.
U.S. Attorney’s Office for the Eastern District of Washington Commemorates LGBTQ+ Pride MonthRead the Press Release
Spokane, Washington - For the month of June, the U.S. Attorney’s Office for the Eastern District of Washington (EDWA) will honor the vast contributions and important history of the Lesbian, Gay, Bisexual, Transgender, and Queer community during LGBTQ+ Pride Month.
The first presidential proclamation recognizing Pride Month occurred in 1999. On January 20, 2021, President Biden issued Executive Order 13988, directing the heads of every federal agency to take steps to prevent and combat discrimination on the basis of sexual orientation and gender identity, both in the federal government itself and in its enforcement of anti-discrimination laws such as Title VII.
“The enforcement and defense of civil rights for everyone is at the core of the Justice Department’s mission. My office is committed to protecting the rights of all individuals to live free from discrimination and persecution based on who they are or whom they love,” stated U.S. Attorney Waldref. “The members of the LGBTQ+ community are our families, friends, neighbors, and co-workers. We recognize their past struggles to receive equal treatment under the law and will support and defend their efforts to secure justice now and in the future.
In 1969, after a police raid on the Stonewall Inn in New York City, members of the LGBTQ+ community engaged in several days of protest of discrimination against LGBTQ+ people. The following year, activists organized the first annual Pride March on June 28, 1970, a several-thousand-person march from the Stonewall Inn to Central Park commemorating the riots and protesting discrimination against LGBTQ+ people. Although not the first demonstration against LGBTQ+ discrimination, that Pride March marked the beginning of the galvanizing force that became a national civil rights movement to demand equal rights and protections for LGBTQ+ citizens under the law, ultimately culminating in the creation of the first gay pride parades in Chicago, Los Angeles, New York City, and San Francisco. Since 1970, the LGBTQ+ community has celebrated every June as Pride Month and held annual Pride Marches in a growing number of cities, including internationally.
On June 8, 2024, Members of the U.S. Attorney’s Office for the Eastern District of Washington joined with hundreds of others by marching in the Spokane Pride Parade. U.S. Attorney Waldref added, “This was the first time my office joined to march in the Spokane Pride Parade. It is an honor to lead an office committed to enforcing civil rights and ensuring liberty and justice for all.”
More information about the U.S. Attorney’s Office’s Civil Rights and United Against Hate programs are available on our website:
https://www.justice.gov/usao-edwa/pr/us-attorney-announces-anti-hate-crime-initiatives.
If you have witnessed or been a victim of a hate crime, you can report it to the FBI by submitting an online tip at fbi.gov/tips, by calling 1-800-CALL-FBI, or by calling 911 in an emergency.
Federal law protects against discrimination based on race, gender, religion, national origin, sexual orientation, gender identity, disability, age, and citizenship in several important aspects of daily life, such as housing, employment, places of public accommodation, educational opportunities, and other areas. More information about these and other federal civil rights protections is available at https://civilrights.justice.gov/#your-rights.
Additional resources regarding hate crimes and bias incidents are available at https://www.fbi.gov/investigate/civil-rights/hate-crimes.
U.S. Attorney’s Office Recognizes World Elder Abuse Awareness DayRead the Press Release
Spokane, Washington – Vanessa R. Waldref, U.S. Attorney for the Eastern District of Washington, joined national, state, local, and Tribal leaders in recognizing World Elder Abuse Awareness Day (WEAAD) on June 15, 2024. Since 2006, WEAAD has been commemorated to promote awareness and increase understanding of the many forms of elder abuse as well as the resources available to those at risk.
“Seniors in our community are among the most likely to be targeted by fraud, false billing scams, and abuse. Financial exploitation is the most common form of elder abuse and is estimated to cost older adults more than $23 billion every year,” stated U.S. Attorney Waldref. “Combatting elder fraud and abuse is a top priority for the U.S. Attorney’s Office, the Department of Justice, and our law enforcement partners. As part of our elder justice initiative, my office has expanded our health care fraud practice and focused on holding accountable medical providers who put profits before their obligations to patient care and safety. Everyone can protect their loved ones and the community by reporting instances of elder abuse when you see it.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor Schemes, scammers impersonate government employees and falsely report suspicious activity to request that potential victims provide their Social Security numbers for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer to identify a fake problem, and then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
To learn more about the Justice Department’s elder justice efforts please visit the Elder Justice Initiative page.
The U.S Attorney’s Office continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes. Additionally, the Office consistently works with courageous whistleblowers who provide vital information to protect patients and the community from fraud and abuse that targets the elderly.
Representative examples of cases protecting elder members of our community prosecuted by the United States Attorney’s Office in 2023 and 2024 include the following:
- In March 2024, Physician Edward William Salko, D.O., agreed to pay $700,000 to resolve allegations that they participated in a kick-back scheme to bill Medicare for medically unnecessary medical equipment and diagnostic laboratory testing.
- In February 2024, Thomas Andrew Webster, M.D., pleaded guilty to conspiring to accept kickbacks in connection with a fraudulent telemarketing and medical supply scheme throughout Washington and in other states.
- In January of 2024, Physician Daniel Case has agreed to pay $95,000 to resolve allegations that he participated in a kick-back scheme and ordered medically unnecessary durable medical equipment that Case caused to be billed to Medicare, Medicaid, and other federal health care programs.
- In November of 2023, Xander Lee Ostenberg was sentenced to 5 years in prison for an assault that included a violent physical attack against two Kalispel Tribal elders. During the assault, Ostenberg hit one elder in the head causing him to fall to the ground and lose consciousness. Ostenberg then turned to attack another elder, knocking him to the ground, pulling out some of the elder’s hair, and began choking the Tribal elder.
- In August of 2023, Lincare Holdings, Inc., agreed to pay $29 million and perform extensive corrective actions to resolve allegations that it fraudulently overbilled Medicare and Medicare Advantage Plans for oxygen equipment and wrongfully collected co-pays from elderly beneficiaries on fixed incomes and with limited means.
U.S. Attorney Waldref has recorded this message about how we can all protect ourselves and our loved ones from scams targeting the elderly.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
U.S. Attorney's Office Secures Agreement in Sexual Harassment Lawsuit Against Owner and Property Manager of Eagle, Colorado Rental PropertyRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced that a federal judge has approved a consent order that resolves a lawsuit filed in federal district court under the Fair Housing Act by the U.S. Attorney’s Office against Butters Investments, LLC, the owner of a rental property in Eagle, Colorado, and Kathryn Butters, the property manager. The United States alleged that the defendants subjected a family to repeated sexual assault and harassment when they lived in a property owned by Butters Investments. To resolve the lawsuit, Ms. Butters and Butters Investments agreed to several terms, including paying $300,000.00 to compensate the family.
In the complaint filed in the lawsuit, the United States alleged that in 2019 and 2020, the victim family, a couple and their minor children, rented a residential unit owned by Butters Investments, and that Ms. Butters served as the property manager. The complaint alleged that Ms. Butters repeatedly made unannounced visits to the victim family’s home, during which she made unwanted sexual comments and contact with four family members, including a male child who was only eleven or twelve years old at the time of the events and another male child who was only ten years old at the time. The complaint alleges that Ms. Butters made inappropriate sexual comments to the family, including referring to the genitals of one of the children, and on another occasion speculating about the color of one of the children’s pubic hair. The complaint alleged that Ms. Butters’ conduct also included, on several occasions, slapping both parents’ buttocks, and grabbing the children’s genitals. The complaint alleged that this conduct constituted housing discrimination based on sex in violation of the Fair Housing Act.
To resolve the allegations, Ms. Butters and Butters Investments agreed to a consent order, which was signed by the Honorable Kathryn A. Starnella of the United States District Court for the District of Colorado. Under the terms of the consent order, Ms. Butters and Butters Investments agreed to pay $300,000.00 to compensate the victim family. In addition, under the terms of the consent order, Ms. Butters agreed not to have contact with residential housing tenants in the future. Ms. Butters and Butters Investments also agreed that Ms. Butters and the owners and employees of Butters Investments would complete fair housing training, and that their compliance with the Fair Housing Act will be monitored by the U.S. Attorney’s Office under the court’s order.
The lawsuit stems from a complaint that the family filed with the United States Department of Housing and Urban Development (HUD). HUD’s Office of Fair Housing and Equal Opportunity conducted an investigation and found reasonable cause that discrimination based on sex had occurred. The parents then made an election under the Fair Housing Act to have the Department of Justice, through the U.S. Attorney’s Office, file a complaint in federal district court on their behalf.
“Sexual harassment in housing is particularly egregious because people deserve to feel safe in their homes,” said Acting U.S. Attorney Matt Kirsch. “We are committed to protecting tenants who are subjected to sexual assault and harassment, and we will continue to work with HUD to hold accountable landlords and property managers who violate the Fair Housing Act.”
“Absolutely no one, including families with children, should ever have to worry about being sexually harassed by their landlord or property manager,” said Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD’s investigation and charge, which resulted in today’s settlement, should serve as notice that this type of behavior is illegal and will not be tolerated.”
To learn more about the U.S. Attorney’s Office’s civil rights enforcement program, or to file a complaint, please visit www.justice.gov/usao-co/civil-rights-enforcement.
Additional information about the Fair Housing Act, including information about how to file a complaint, can be found on HUD’s website at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview.
The defendants have denied liability, and the claims made in the complaint are allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
This case is being handled by Assistant U.S. Attorneys Alicia Alvero Koski and Zeyen Wu.
Read the complaint here.
U.S. Attorney Recognizes World Elder Abuse Awareness DayRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley joined national, state, and local leaders in recognizing World Elder Abuse Awareness Day (WEAAD), which is on June 15. Since 2006, WEAAD has been commemorated to promote awareness and increase understanding of the many forms of elder abuse and the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Easley emphasized the importance of awareness and education. To help build awareness, the office is hosting three community events with Meals on Wheels, AARP, the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service, where elder abuse will be discussed with the public.
“Respecting our elders is a core American value,” said U.S. Attorney Easley. “But too many crooks see our seniors as targets for financial scams. We are prioritizing cases with elderly victims to help stop the frauds and cheats trying to rob our seniors. Learn the signs of elder fraud and abuse. Together, we can give our older generation the respect they deserve.”
“The U.S. Postal Inspection Service is dedicated to investigating individuals who abuse consumer trust and target the elderly and vulnerable individuals because of greed,” said U.S. Postal Inspector in Charge Tommy D. Coke of the Atlanta Division. “Postal Inspectors, along with our federal partners, are committed to preventing these bad actors from taking advantage of our elderly population by educating the community with common signs that are indicative of fraud.”
Starting this week, the office is hosting three community outreach events, all open to the public. Media interested in attending should RSVP to the email above and plan to arrive at least 15 minutes early for set up.
- Raleigh on Tuesday, June 11 at noon, at the Friendship Café [Capital Towers, 4808 Six Forks Road, Bldg. 2].
- Wake Forest on Wednesday, June 12 at 11:30 a.m., at the Friendship Café - Northern Wake Senior Center [234 E. Holding Ave.].
- Supply on Monday, June 15 at 1 p.m. at The Brunswick Center at Supply, [101 Stone Chimney Road] This event is co-hosted by Brunswick Senior Resources, Inc.
“Scams and fraud that target older adults remain one of the worst forms of elder abuse. When it comes to fighting back, knowledge is power. We are working together so more people know how to prevent, spot, and report scams. We also want victims to know that they are not alone and free help and support from trained volunteers is available,” said AARP North Carolina Director Mike Olender. “Attempts at the financial exploitation of our elderly population are rampant. The resources and information provided by the U.S. Attorney’s Office for our seniors will help them discern fraudulent and predatory practices and provides them with the resources to hold any bad actors accountable. This information ensures safer and more empowered financial futures for seniors and destigmatizes seeking help in the event that a senior does fall victim to a financial scam. We want to thank the U.S. Attorney's office for taking the time to present this information to our senior clients.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. In addition to these prosecutions, the Justice Department maintains various programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, and trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on their targets’ goodwill or financial vulnerability, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security numbers for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
Please visit the Elder Justice Initiative page to learn more about the department’s elder justice efforts.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
Two Ohio Men Sentenced for Operating Illegal Gambling Businesses and Tax Fraud ConspiracyRead the Press Release
Two Ohio men were sentenced to prison for tax, gambling, money laundering, conspiracy and obstruction crimes arising out of their ownership and operation of illegal gambling businesses.
Christos Karasarides Jr., 59, of Canton, Ohio, was sentenced to serve 262 months (more than 21 years) in prison and three years of supervised release, to pay $5,541,520 in restitution to the United States and to forfeit his residence and $419,768 in cash.
Ronald DiPietro, 65, of Clinton, Ohio, was sentenced to 112 months (more than nine years) in prison and three years of supervised release and ordered to pay $4,763,520 in restitution to the United States. A jury previously convicted Karasarides and DiPietro.
According to evidence presented at trial, court documents and statements made in court, from 2009 through July 2018, Karasarides and DiPietro, who was then a Certified Public Accountant, operated multiple illegal gambling businesses together and with others including Skilled Shamrock and Redemption. At Skilled Shamrock, which operated slot machines, patrons gambled more than $34 million between 2012 and 2017 from which the business made more than $7 million in profits. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses by using nominee owners and sham contracts.
Karasarides did not report or pay taxes on much of the income he received from Redemption and Skilled Shamrock. From 2012 through 2018, Karasarides did not report $2.3 million in such income or pay over $800,000 in tax.
Separately from Skilled Shamrock and Redemption, Karasarides owed the IRS millions of dollars in taxes from income he earned from another gambling business. DiPietro assisted Karasarides in thwarting the IRS’ efforts to collect the taxes owed by making false representations to the IRS – including by preparing tax returns for Karasarides – showing that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides sought to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
In total, Karasarides caused a tax loss to the IRS of $5.4 million and DiPietro caused a tax loss to the IRS of $4.7 million.
Karasarides and DiPietro used the criminal proceeds of their schemes to purchase luxury vehicles, maintain country club memberships and buy and sell property. Karasarides also took several extravagant gambling trips during which he made millions of dollars of bets at legal casinos throughout the country. Karasarides and DiPietro also kept large amounts of cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house and $239,000 in cash from a safe deposit box in the name of Karasarides’ son.
Karasarides attempted to obstruct the investigation into his conduct. After a witness received a grand jury subpoena, Karasarides directed that witness to lie to authorities. Karasarides also caused false documents to be created to obstruct the investigation. And in 2022, after some of Karasarides’ co-defendants had been indicted, Karasarides caused another individual to file tax returns that falsely claimed that the individual was a partner in a business when, in fact, Karasarides was the partner in the business.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Department of Homeland Security’s Homeland Security Investigations, the Department of Treasury’s Office of Inspector General, the Stark County Prosecutor’s Office, the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
Two Ohio Men Sentenced for Operating Illegal Gambling Businesses and Tax Fraud ConspiracyRead the Press Release
Two Ohio men were sentenced to prison today for tax, gambling, money laundering, conspiracy and obstruction crimes arising out of their ownership and operation of illegal gambling businesses.
Christos Karasarides Jr. was sentenced to serve 262 months in prison and three years of supervised release, to pay $5,541,520 in restitution to the United States and to forfeit his residence and $419,768 in cash.
Ronald DiPietro was sentenced to 112 months in prison and three years of supervised release and ordered to pay $4,763,520 in restitution to the United States. A jury previously convicted Karasarides and DiPietro.
According to evidence presented at trial, court documents and statements made in court, from 2009 through July 2018, Karasarides and DiPietro, who was then a Certified Public Accountant, operated multiple illegal gambling businesses together and with others including Skilled Shamrock and Redemption. At Skilled Shamrock, which operated slot machines, patrons gambled more than $34 million between 2012 and 2017 from which the business made more than $7 million in profits. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses by using nominee owners and sham contracts.
Karasarides did not report or pay taxes on much of the income he received from Redemption and Skilled Shamrock. From 2012 through 2018, Karasarides did not report $2.3 million in such income or pay over $800,000 in tax.
Separately from Skilled Shamrock and Redemption, Karasarides owed the IRS millions of dollars in taxes from income he earned from another gambling business. DiPietro assisted Karasarides in thwarting the IRS’ efforts to collect the taxes owed by making false representations to the IRS – including by preparing tax returns for Karasarides – showing that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides sought to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.
In total, Karasarides caused a tax loss to the IRS of $5.4 million and DiPietro caused a tax loss to the IRS of $4.7 million.
Karasarides and DiPietro used the criminal proceeds of their schemes to purchase luxury vehicles, maintain country club memberships and buy and sell property. Karasarides also took several extravagant gambling trips during which he made millions of dollars of bets at legal casinos throughout the country. Karasarides and DiPietro also kept large amounts of cash or silver at their homes and other properties they controlled. For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house and $239,000 in cash from a safe deposit box in the name of Karasarides’ son.
Karasarides attempted to obstruct the investigation into his conduct. After a witness received a grand jury subpoena, Karasarides directed that witness to lie to authorities. Karasarides also caused false documents to be created to obstruct the investigation. And in 2022, after some of Karasarides’ co-defendants had been indicted, Karasarides caused another individual to file tax returns that falsely claimed that the individual was a partner in a business when, in fact, Karasarides was the partner in the business.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the Department of Homeland Security’s Homeland Security Investigations, the Department of Treasury’s Office of Inspector General, the Stark County Prosecutor’s Office, the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
Two Life Sentences for DTO Leader Guilty of Massive Drug ConspiracyRead the Press Release
MACON, Ga. – The leader of a violent drug trafficking organization (DTO) who directed approximately 2,000 kilograms of cocaine from Mexico into the U.S.—much of which was distributed into the Middle District of Georgia—was sentenced to two life sentences in prison for his crimes today.
Albert Ross aka “Big,” 53, of Stone Mountain, Georgia, was sentenced to serve the statutory maximum of life imprisonment for each count of conspiracy to possess with intent to distribute cocaine and conspiracy to possess with intent to distribute marijuana for which he pleaded guilty on Jan. 22. In addition, Ross was ordered to serve five years of supervised release and pay a $1 million fine by U.S. District Judge Tilman “Tripp” Self III on June 10. There is no parole in the federal system.
“Keeping our communities safe is our office’s highest priority,” said U.S. Attorney Peter D. Leary. “These life sentences for Albert Ross help to accomplish this goal, thanks to the incredible dedication and courage displayed by our law enforcement partners at the federal, state and local level to shut down this violent drug trafficking organization and hold its leader accountable.”
“Albert Ross deserves every day in prison that he has been sentenced after distributing such a huge amount of drugs into Middle Georgia,” said FBI Atlanta’s Macon Supervisory Senior Resident Agent Robert Gibbs. “FBI Atlanta and our partners across the state will continue to work non-stop to put drug dealers behind bars and stop them from inflicting pain and violence in our communities.”
“The guns, drugs and violence are unfortunately all too common tools of drug traffickers,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division. “Today’s announcement demonstrates DEA’s emphatic commitment to attacking the drug dealers responsible for the devastation in our communities.”
“Cases like this exemplify the value of partnerships between local, state and federal agencies,” said Athens-Clarke County Police Chief Jerry Saulters. “The volume of dangerous drugs, not to mention the firearms and acts of violence, impact our communities beyond comprehension. The sentence in this case should be a stern message to the traffickers who bring their poison into our community and threaten the livelihood of our residents.”
According to the stipulation of fact read in court and other documents, Ross admitted that he was the leader of a large-scale drug trafficking organization, which was responsible for importing approximately 2,000 kilograms of cocaine into the U.S. from Mexico, along with other illegal drugs. Large amounts of cocaine was distributed by Ross’s DTO into the Middle District of Georgia. The FBI-Athens Resident Agency initiated a long-term investigation focused primarily on Ross’s cocaine distribution activities. Through the use of many investigative techniques including wiretaps, physical surveillance, vehicle trackers and confidential informants, agents identified a network of individuals associated with Ross’s DTO.
Working with co-conspirators, investigators discovered that Ross directed individuals to transport large quantities of cocaine from Texas to be distributed to Ross’s customers and associates. Ross’s DTO was supplied cocaine by a source in Mexico affiliated with the Cártel de Jalisco Nueva Generación (CJNG). Money for the cocaine purchases was given to couriers in Atlanta who would then deliver the money to Ross’s cocaine supplier in Mexico.
Agents learned that Ross and co-conspirators flew to Mexico City in August 2019 to meet with Ross’s CJNG cocaine supplier and his cartel boss to negotiate a deal where they would supply Ross’s DTO with 200 additional kilograms of cocaine per month. A text string found on Ross’s seized iPhone detailed that in under a one-month period between March 14 and April 4, 2020, Ross was supplied with 112 kilograms of cocaine. During the same period, Ross sent more than $2.5 million in payment for the drugs to his cocaine source in Mexico. Additional evidence revealed that in a three-month period in 2018, Ross received 1,300 kilograms of cocaine from a different Mexican supplier. Once the cocaine arrived in the Atlanta area, Ross stashed the dope at an elderly family member’s home, who had previously been shot picking up drug proceeds at Ross’s direction.
Co-defendants Lonnie Bennett, 44, of Atlanta, and Brandon Payne, 30, of Atlanta, sold cocaine supplied by Ross out of their stash house on Pittman Road in College Park, Georgia. Co-defendant TaMichael Darden, 43, of Athens, Georgia, made over twenty trips from Athens to the Pittman Road stash house to purchase cocaine that he later sold throughout the Middle District of Georgia.
Ross is tied to past large drug seizures in Georgia. In March 2018, Ross and his business partner purchased approximately $4 million of cocaine for transport from Texas to Georgia; a tractor trailer was stopped on I-20 by a Georgia trooper, who found 152 kilograms of cocaine in a false wall inside the transport truck. Following the cocaine seizure, Ross asked another co-conspirator to kill the person responsible for overseeing the intercepted drug load. The co-conspirator refused the murder order. In Dec. 2018, DEA agents received information from a confidential source that Ross was moving a large amount of cash from illegal drug sales from Atlanta to California using private aircraft. Agents observed men leave Ross’s Bouldercrest Road stash house and board a plane at Peachtree Dekalb Airport with four suitcases and two backpacks. DEA and FBI agents in California were waiting and seized more than $2 million in drug proceeds from the luggage.
In addition, Ross tasked co-conspirators with transporting and distributing large shipments of marijuana from “Murder Mountain,” a region in Humboldt County, California, known for its marijuana production. For example, 24,000 pounds of marijuana was shipped over eight trips from California to Georgia as directed by Ross. Significant amounts were distributed to dealers in the Middle District of Georgia, including co-defendant Reginald Battle, Sr., 49, of Statham, Georgia.
Ross was ultimately arrested on Sept. 23, 2021, at his home in Stone Mountain. Agents found more than $300,000 in cash wrapped in tinfoil and vacuum sealed in black trash bags inside Ross’s bedroom closet. Inside an Atlanta area bar owned by Ross, agents seized more than $600,000 in drug proceeds. As part of this entire investigation, law enforcement seized $3,164,210 cash, 73 firearms, 165.22 kilos of cocaine, 1.32 kilograms of fentanyl, 11.25 ounces of heroin, 1.39 kilograms of crack cocaine, 12.57 lbs. of crystal methamphetamine, 25.35 lbs. of marijuana and 198 dosage units of controlled pharmaceuticals. Ross admits his DTO is responsible for importing approximately 2,000 kilograms of cocaine from Mexico into the U.S. for distribution in Georgia. Ross has a prior felony drug conviction in Fulton County, Georgia, Superior Court and numerous felony arrests for drug trafficking.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by FBI Atlanta – Athens RA Middle Georgia Safe Streets Gang Task Force, DEA, Athens-Clarke County Police Department, Northeast Georgia Regional Drug Task Force, GBI, Georgia Department of Community Supervision, Georgia Department of Corrections, Georgia Department of Revenue, Georgia State Patrol, Forsyth County Sheriff's Office, Fulton County Sheriff’s Office, Gwinnett County Police Department, Oconee County Sheriff’s Office, Oglethorpe County Sheriff's Office, Rockdale County Sheriff's Office, Atlanta Police Department, Brookhaven Police Department, Cobb County Police Department, DeKalb County Police Department, Henry County Police Department, Marietta Police Department and South Fulton Police Department.
Assistant U.S. Attorneys Mike Morrison and Tamara Jarrett prosecuted the case for the Government.
Two Individuals Sentenced to Prison in Connection with $7.5 Million Multi-State PPP Fraud SchemeRead the Press Release
BOSTON – Two individuals have been sentenced in federal court in Boston for their roles in a multi-state scheme to obtain millions of dollars in Paycheck Protection Program (PPP) funds for themselves and others through the submission of dozens of fraudulent applications to PPP lenders.
Adiana Pierre, 39, of Lookout Mountain, Tenn., was sentenced on June 7, 2024 by U.S. District Court Judge Myong J. Joun to 17 months in prison and three years of supervised release on June 7, 2024. On May 28, 2024, Gardy Alexandre, 51, of West Palm Beach, Fla., was sentenced by Judge Joun to 15 months in prison and three years of supervised release in connection with the same scheme. A third defendant, Wallace Ford, 38, of Buford, Ga., will be sentenced at a later date. In February 2024, all three defendants pleaded guilty to one count each of conspiracy to commit wire fraud and conspiracy to engage in unlawful monetary transactions.
Ford, Pierre and Alexandre conspired to submit fraudulent PPP applications on behalf of numerous actual or purported businesses and non-profit organizations across the United States – including businesses operated in Massachusetts – and to collect kickback payments from the borrowers for securing loan amounts.
Shortly after PPP funds first became available in April 2020, Ford began submitting PPP applications on behalf of his own businesses, Pierre, Alexandre and other borrowers. Pierre, Alexandre and others identified potential applicants and provided those applicants’ information to Ford. Ford then submitted applications for those borrowers online, fabricating employee numbers and monthly payroll expenses. Ford also submitted false wage and tax forms in support of the misrepresentations on the applications. As a result, between May and August 2020, Ford, Pierre, Alexandre and others obtained approximately $7 million in PPP funds.
The borrowers who received PPP funds based on these fraudulent applications paid kickbacks to Ford, Pierre, Alexandre and others, commonly in amounts equal to 10 or 20 percent of the loan amount they received. Collectively, Ford, Pierre and Alexandre received over $1 million in kickback payments from borrowers.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Individuals Plead Guilty to Health Care Fraud ConspiracyRead the Press Release
HUNTSVILLE, Ala. – A former doctor and her wife pleaded guilty today to crimes involving the medical practice they ran in north Alabama for many years. United States Attorney Prim Escalona, FBI Special Agent in Charge Carlton Peeples, Drug Enforcement Administration Special Agent in Charge Steven L. Hofer, and Special Agent in Charge Tamela Miles of the Department of Health and Human Service Office of the Inspector General Atlanta Region made the announcement.
Francene Aretha Gayle, 50, of Apopka, Florida, pleaded guilty before U.S. District. Judge Liles Burke to five counts of unlawful drug distribution, one count of health care fraud conspiracy, and one count of wire fraud conspiracy. Gayle’s wife, Schara Monique Davis, 48, also of Apopka, pleaded guilty to one count of health care fraud conspiracy and one count of wire fraud conspiracy.
According to the defendants’ plea agreements, between about 2014 and early 2020, Gayle was a doctor who operated a multi-clinic practice in Huntsville, Athens, and Killen. Davis owned the practice and served as business manager. In 2019, the Killen clinic shut down. In March 2020, the Alabama Medical Licensure Commission revoked Gayle’s license, and the other two clinics closed shortly after that.
Gayle admitted that she had unlawfully distributed drugs, including oxycodone, hydrocodone, and methadone.
Gayle and Davis both admitted to having conspired to commit health care fraud for several years by billing insurers for office visits under Gayle’s name even when she did not see the patients, was not in the same building, and sometimes was not in the same town. The defendants knew that the billing scheme was fraudulent. In 2015, Blue Cross Blue Shield of Alabama audited the practice and discovered that Gayle was absent, other staff were seeing patients, and yet all office visits were being billed under Gayle’s name. Blue Cross flagged the issue, and Gayle promised it would stop. Instead, the practice continued fraudulently billing insurers for office visits for the next four years. In total, between 2015 and 2020, Medicare, Medicaid, and Blue Cross paid more than $2.3 million for office visits billed under Gayle’s name.
Gayle and Davis both also admitted to having conspired to commit wire fraud. In March 2020, based on concerns about her prescribing and billing practices, Gayle’s Alabama medical license was revoked. Months later, Gayle and Davis applied for and obtained more than $450,000 in COVID-19 disaster relief funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Those funds were designed to stabilize businesses struggling because of the pandemic. In their funding applications, Gayle and Davis certified that their medical practice needed the money because of economic uncertainty or injury caused by the pandemic. In reality, Gayle and Davis’s practice had closed, and they used COVID-19 funds they received on other things.
The maximum penalty for unlawful drug distribution is twenty years in prison. The maximum penalty for health care fraud conspiracy is ten years in prison. The maximum penalty for wire fraud conspiracy is twenty years in prison.
The FBI, DEA, and HHS-OIG investigated the case. The Medicaid Fraud Control Unit of the Alabama Attorney General’s Office provided exceptional investigative assistance after the Alabama Medicaid Agency’s Program Integrity Division initiated the case and referred it. Assistant U.S. Attorneys J.B. Ward and Ryan Rummage are prosecuting the case.
Two Hudson County, New Jersey, Men Charged with Drug Offenses in Connection with Jersey City Street GangRead the Press Release
NEWARK, N.J. – Two Hudson County, New Jersey, men have been charged in connection with their respective roles in a Jersey City neighborhood street gang that distributed cocaine and heroin, U.S. Attorney Philip R. Sellinger announced today.
Anthony Phillips, aka “Ant,” aka “Little Ant,” 31, of Jersey City, appeared before U.S. Magistrate Michael A. Hammer in Newark federal court on June 6, 2024, and was detained. Phillips was charged by complaint on April 30, 2024, with conspiring with Shannon Tisdale, aka “Doonk,” 32, of Jersey City, New Jersey, to distribute heroin and cocaine. Phillips was also charged with possession with intent to distribute heroin and cocaine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Phillips pleaded guilty to aggravated manslaughter on June 11, 2015, in Hudson County Superior Court, New Jersey in connection with shooting and killing an individual in Jersey City. He was sentenced to 13 years in prison. Phillips was released from the Department of Corrections under parole supervision on March 14, 2024.
Tisdale appeared before U.S. Magistrate Leda Dunn Wettre in Newark federal court on May 17, 2024, and was detained.
According to documents filed in this case and statements made in court:
In December 2023, law enforcement began investigating individuals distributing narcotics in the area of Lexington and Bergen avenues in Jersey City, including members and associates of “Lex Mob,” a neighborhood street gang. On April 24, 2024, law enforcement observed Tisdale and Phillips distributing controlled substances in the Lexington Area. Law enforcement attempted to arrest Tisdale and Phillips, who both initially ran when law enforcement approached them. During the pursuit of Phillips, law enforcement observed Phillips remove and discard a firearm. Immediately after discarding the firearm, Phillips was apprehended. During a search of Phillips’s person, law enforcement recovered 12 orange containers of suspected cocaine and 13 orange glassine bags of suspected heroin. Law enforcement recovered the firearm that Phillips had discarded. That firearm was loaded with eight rounds of ammunition.
On the count of possession of a firearm as a convicted felon, Phillips faces a maximum penalty of 15 years in prison. On the count of possession of a firearm in furtherance of a drug trafficking crime, Phillips faces a mandatory minimum prison sentence of five years, which must run consecutively to any other prison sentenced imposed. On the count of possession with intent to distribute controlled substances and conspiracy to distribute and possess with intent to distribute controlled substances crime, Phillips and Tisdale each face a maximum penalty of 20 years in prison.
U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Ross A. Marchetti, and the Jersey City Police Department, under the direction of Public Safety Director James Shea.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the ATF, the Drug Enforcement Administration, the Department of Homeland Security – Homeland Security Investigations, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Megan Linares of the Organized Crime/Gang Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
phillipstisdale.complaint.pdfTwo Honduran Nationals Arrested in Charlotte CountyRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the arrests and filing of criminal complaints charging Noe Armando Melendez-Amador (35, Honduras) and Carlos Damian Acosta-Melendez (28, Honduras). Both were arrested in Charlotte County, Florida, on June 7, 2024. Melendez-Amador has been charged with possessing with intent to distribute fentanyl and faces up to 20 years in federal prison. Acosta-Melendez has been charged with illegal re-entry by a previously deported alien and prior convicted felon and faces up to 10 years in federal prison.
According to the complaints and court records, an undercover Drug Enforcement Administration agent negotiated with Melendez-Amador to purchase approximately 15,000 pills of fentanyl. Melendez-Amador then traveled from Denver, Colorado, to Charlotte County, Florida, accompanied by Acosta-Melendez to conduct the drug transaction with the undercover agent. Upon their arrival, both were arrested, and the drugs were seized. The pills, which weighed nearly four pounds in total, bore the counterfeit marking “M 30,” giving them the appearance of pharmaceutical grade oxycodone pills.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the United States Customs and Border Protection. It will be prosecuted by Assistant United States Attorneys Michael V. Leeman and Trenton Reichling.
Two Defendants Charged with Federal Narcotics Offenses in Connection with the Poisoning of Four Children at A Bronx Daycare Plead GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Darcel D. Clark, the Bronx County District Attorney, announced today that, on the morning he was scheduled to begin trial, FELIX HERRERA GARCIA pled guilty to conspiracy to distribute narcotics resulting in death and serious bodily injury, as well as possession of narcotics with intent to distribute, resulting in death and serious bodily injury, all in connection with the poisoning of four children under the age of three, one of whom died, at a daycare facility in the Bronx (the “Daycare”) on September 15, 2023. Approximately two weeks ago, on May 23, 2024, RENNY ANTONIO PARRA PAREDES pled guilty to conspiring to distribute narcotics and stipulated that his conduct caused death and serious bodily injury, in connection with his role in the poisonings.
U.S. Attorney Damian Williams said: “In September 2023, four children at a Bronx daycare were poisoned by fentanyl. The children were seriously injured, and one baby died. This happened because, as they admitted in court, Felix Herrera Garcia and Renny Antonio Parra Paredes operated an illegal fentanyl operation out of the center, where they processed the deadly drugs for sale. We said at the time that this case shocks the conscience of the City, and now Herrera Garcia and Parra Paredes have been brought to justice for this heinous crime.”
Bronx County District Attorney Darcel D. Clark said: “Today, on the morning his trial was set to begin in Manhattan Federal Court, Felix Herrera Garcia pled guilty to Conspiracy to Distribute Narcotics Resulting in Death and other federal charges for causing the fatal fentanyl ingestion of 22-month-old Nicholas Dominici and the injury to three other babies at the Divino Nino Day Care Center in the Bronx on September 15, 2023. Herrera Garcia has now been held accountable in the tragic loss of little Nicholas, the serious injury of Abel, and the harm to Kiara and Jaziel.”
As alleged in public filings:
From at least in or about October 2022 through at least in or about September 2023, HERRERA GARCIA, PARRA PAREDES, and others conspired to distribute fentanyl, para-fluorofentanyl, and heroin, including at the Daycare. There, despite the daily presence of children, including infants, HERRERA GARCIA, PARRA PAREDES, and their co-conspirators maintained large quantities of fentanyl, including more than 10 kilograms of narcotics hidden inside secret compartments, or traps, located beneath the floor of the Daycare’s playroom.
As a consequence of the drug conspiracy perpetrated by HERRERA GARCIA, PARRA PAREDES, and their co-conspirators, on or about September 15, 2023, four children at the Daycare, who were all under three years of age, experienced the effects of poisoning from exposure to fentanyl. Three of the children were hospitalized. The fourth child, a boy just under two years-of-age, died.
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HERRERA GARCIA, 35, of the Bronx, New York, pled guilty to one count of conspiracy to distribute narcotics resulting in death and serious bodily injury, one count of possession with intent to distribute narcotics resulting in death, and one count of possession with intent to distribute narcotics resulting in serious bodily injury. All three counts carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.
PARRA PAREDES, 38, of the Bronx, New York, pled guilty to one count of conspiracy to distribute narcotics resulting in death and serious bodily injury, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration (“DEA”), the New York City Police Department (“NYPD”), the Southern District of New York Digital Forensic Unit, the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, and the United States Marshals Service (“USMS”). Mr. Williams also thanks the NY/NJ Regional Fugitive Task Force of the USMS, the USMS Office of International Operations, the USMS for the Southern District of New York, the USMS for the Southern District of Texas, the USMS for the Southern District of California, the USMS Mexico Field Office, the USMS Investigative Operations Division, the DEA New York Strike Force, the DEA Regional Office in Allentown, Pennsylvania, the DEA Regional Office in McAllen, Texas, the DEA Regional Office in Mexico City, Mexico, the DEA Regional Office in Hermosillo, Mexico, the DEA Regional Office in Monterrey, Mexico, the DEA Special Operations Division, the NYPD 52nd Precinct’s Detective Squad, the NYPD Bronx Homicide Squad, the Office of International Affairs of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Southern District of Texas, the U.S. Attorney’s Office for the Southern District of California, U.S. Customs and Border Protection, and Mexican Federal and State authorities.
The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Brandon C. Thompson, Maggie Lynaugh, and Justin V. Rodriguez, as well as Special Assistant U.S. Attorney Karl P. Miller of the Office of the Bronx County District Attorney’s Homicide Bureau, are in charge of the prosecution.
Tucumcari Man Sentenced for Federal Child Exploitation OffenseRead the Press Release
ALBUQUERQUE – A Tucumcari man was sentenced to 10 years in prison for attempting to engage in sexual conduct with two fictitious minor children after an undercover FBI operation.
There is no parole in the federal system.
According to court documents, the investigation into Joseph Gadman, 42, began in mid-December 2022, when an undercover agent from the FBI engaged him on a social networking website known to be a hub for child sexual abuse material. Using the screen name "Gadmanj40," Gadman contacted the undercover agent and expressed interest in engaging in sexual acts with the undercover agent's fictitious children.
The conversation transitioned from the website to text messages, with Gadman providing his phone number to the undercover agent. In the text messages, Gadman detailed his desire to engage in sex acts with children ages 5 and 8 years old.
On January 13, 2023, Gadman traveled from Tucumcari to a pre-arranged meeting location in Albuquerque with condoms, cash, and snacks for the fictitious children. When he arrived, FBI agents swiftly arrested him. During a subsequent interview, Gadman admitted to being "Gadmanj40" but denied having intentions to follow through on the discussed acts.
After completing his term of imprisonment, Gadman will be required to serve 10 years of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office investigated this case with the assistance of the Bernalillo County Sheriff’s Office as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant United States Attorney Jaymie L. Roybal is prosecuting the case as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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 Justice.gov/PSC.
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Three Essex County Men Indicted for Gunpoint Robbery of Orange, New Jersey, PharmacyRead the Press Release
NEWARK, N.J. – Three Essex County, New Jersey, men were indicted by a federal grand jury today for their role in a January 2024 gunpoint robbery of a pharmacy in Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Reginald Ware, 54, Nyiron Williams, 22, and Jamon Crosby, 35, all of Newark, are charged in a three-count indictment with conspiracy to Commit Hobbs Act Robbery, Hobbs Act Robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence. Ware, Williams and Crosby, who were previously charged by complaint and were detained, will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On Jan. 16, 2024, Ware, Williams, and Crosby drove together to a pharmacy and then entered the pharmacy within minutes of each other while wearing black masks. Once inside the pharmacy, Ware and Williams each brandished a handgun and demanded money. Crosby then entered the pharmacy, brandished a handgun, and the three men demanded that the store employees hand over their cell phones. Ware, Williams and Crosby then took cash and at least 10 bottles of prescription medication. Once they noticed that law enforcement had arrived, Ware, Williams and Crosby ran out of the store toward a parking lot. Ware was immediately apprehended in the parking lot, Williams was apprehended approximately two blocks away, and Crosby was apprehended after breaking into a nearby residence. The handguns that Ware and Williams brandished during the robbery were recovered by law enforcement.
The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison and in this case, a mandatory minimum sentence of seven years in prison for Williams and Crosby, and a mandatory minimum sentence of 25 years in prison for Ware because he was previously convicted of the same crime in 2012 in connection with four gunpoint robberies of pharmacies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. The conspiracy to Commit Hobbs Act Robbery and Hobbs Act Robbery counts each carry a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, and members of the Orange Police Department, under the direction of Police Director Todd Warren, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Ariel Douek of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The Office of the Pardon Attorney Releases New Presidential Pardon ApplicationRead the Press Release
The Office of the Pardon Attorney (Pardon) today released a new version of its application for presidential pardons. The new pardon application is the culmination of a year-long collaboration with the Office for Access to Justice (ATJ) to make the application more user-friendly and accessible. A pardon can help those who have completed their federal sentences receive relief from the collateral consequences of a criminal conviction.
Pardon and ATJ engaged with applicants, stakeholders and advocates to receive and incorporate their valuable feedback. Pardon and ATJ used a people-centered approach and best practices in form design to align with access to justice principles and research. The revisions are part of a department-wide effort to expand access to justice by simplifying public-facing forms and documents, consistent with the recommendations described in the 2022 and 2023 Legal Aid Interagency Roundtable Reports.
Notable changes to the pardon form include:
- Eliminating the requirement for notarized signature pages, to reduce the burden on applicants and their character references;
- Asking for less information about applicants’ histories, to streamline the application and make it easier to complete;
- Reducing legal jargon and implementing plain language throughout; and
- Adding user-focused resources, including enhanced instructions and explanations, a checklist for completion and a table of contents.
“I am very excited to announce the launch of our new-and-improved pardon form, which greatly simplifies and improves the user experience,” said Pardon Attorney Elizabeth Oyer. “It is an important piece of Pardon’s broader efforts to simplify and demystify the clemency process. It is vital that we take data-driven and forward-thinking steps to maintain a clemency process that is accessible and user-friendly. Along with our community outreach and educational visits to the Federal Bureau of Prisons, this form shows our ongoing commitment to the public to reduce the burden of applying for clemency.”
If your application for pardon is already pending, you do not need to resubmit using the new form. Pardon will continue to process any application received using either form. To learn more about the work and outreach of the Office of the Pardon Attorney, visit Office of the Pardon Attorney | Office of the Pardon Attorney (justice.gov).
Texas U.S. Attorney’s announce “Operation Texas Kill Switch” aimed at machinegun conversion devicesRead the Press Release
BEAUMONT, Texas – Today, U.S. Attorneys for the Eastern, Northern, Southern, and Western Districts of Texas announced “Operation Texas Kill Switch,” a statewide initiative targeting illegal machinegun conversion devices, commonly known as “switches.”
At simultaneous press conferences throughout the state, U.S. Attorneys Damien M. Diggs, Leigha Simonton, Alamdar Hamdani, and Jaime Esparza, joined by Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agents in Charge Jeffrey Boshek and Michael Weddel, lambasted switches, which transform commercially available firearms into fully automatic weapons capable of firing faster than military-grade M4s.
“Machinegun conversion devices are incredibly dangerous and pose an unacceptable risk to the public and law enforcement,” said U.S. Attorney Damien M. Diggs. “They’re also illegal and simply possessing a machinegun conversion device—let alone firing one—comes along with a hefty prison sentence. As U.S. Attorney, I am committed to keeping them off the streets of the Eastern District of Texas.”
“Today’s important initiative is aimed at raising awareness of illegal machinegun conversation devices also known as ‘switches,’ said ATF Houston SAC Michael Weddel. “Today’s threat comes from machinegun conversion devices that easily convert a firearm into a machinegun. These ‘switches’ as they are often called on the streets, not only pose a serious threat to those living in our communities but a unique and deadly threat to law enforcement. Simply possessing one of these devices is a federal crime and we will work endlessly in conjunction with our United States Attorney’s Office in addition to our local, state, and federal partners to identify and prosecute these crimes.”
About an inch long, switches may be made of metal or plastic and can be printed on commercially available 3D printers. They generally slot into the butt of a gun and allow the shooter to fire “full auto,” unloading dozens of rounds with a single pull of the trigger. (In contrast, regular semi-automatic firearms require a separate trigger pull for each round fired.) To date, switches have been used in numerous fatal shootings, including at least one juvenile mass shooting and multiple police killings.
Except in very limited circumstances, possession of a switch is illegal, as the National Firearms Act classifies the switch itself as a machinegun.
Yet the number of switches recovered by law enforcement has risen dramatically in the past few years. Between 2017 and 2023, Texas-based ATF agents seized 991 switches; 490 of those, 50 percent, were seized just last year. They are often sold over social media, marketed to adults and juveniles alike.
At Monday’s press conferences, the U.S. Attorneys announced that as part of Operation Texas Kill Switch, they are partnering with Crime Stopper programs statewide to combat the proliferation of these illegal devices.
From now until Aug. 31, local Crime Stopper programs will offer cash rewards for information leading to the apprehension or prosecution of those who possess switches or 3D printers being used to manufacture them. To be eligible for cash rewards, tipsters must provide information to their local Crime Stoppers program. Tipsters may also use **TIPS to be connected to a Crime Stoppers program in their area. Tips can be submitted 24 hours a day, and anonymity is guaranteed by law. Information may also be submitted directly to ATF at www.atf.gov/contact/atf-tips.
U.S. Attorneys Diggs, Simonton, Hamdani, and Esparza also urged local law enforcement to partner with federal authorities on switch cases, which carry maximum sentences of up to 10 years in the federal system. They laid out their case in a joint op-ed published Monday in the Austin American Statesman, which you can read here.
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Texas U.S. Attorneys announce “Operation Texas Kill Switch” aimed at machinegun conversion devicesRead the Press Release
HOUSTON – U.S. Attorneys for the Southern, Northern, Eastern and Western Districts of Texas announced “Operation Texas Kill Switch,” a statewide initiative targeting illegal machinegun conversion devices, colloquially known as “switches.”
At simultaneous press conferences throughout the state, U.S. Attorneys Alamdar S. Hamdani, Leigha Simonton, Damien Diggs and Jaime Esparza, joined Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agents in Charge Michael Weddel and Jeffrey Boshek and lambasted switches, which transform commercially available firearms into fully automatic weapons capable of firing faster than military-grade M4s.
“Today is an important step to put on notice those who traffic in switches and who use switches,” said Hamdani. “We will hold you to account. My office, combining forces with the ATF, and along with the U.S. Attorney’s Offices in the Eastern , Western and Northern Districts, will do everything in our power to continue to make our communities safer by stemming the flow of switches.”
“Today’s important initiative is aimed at raising awareness of illegal machine gun conversation devices also known as ‘switches,’ said Weddel. “Todays’ threat comes from MCDs that easily convert a firearm into a machinegun. These ‘switches’ as they are often called on the streets, not only pose a serious threat to those living in our communities but a unique and deadly threat to law enforcement. Simply possessing one of these devices is a federal crime and we will work endlessly in conjunction with our U.S. Attorney’s Office in addition to our local, state and federal partners to identify and prosecute these criminals.”
About an inch long, switches may be made of metal or plastic and can be printed on commercially available 3D printers. They generally slot into the butt of a gun and allow the shooter to fire “full auto,” unloading dozens of rounds with a single pull of the trigger. (In contrast, regular semi-automatic firearms require a separate trigger pull for each round fired.) To date, switches have been used in numerous fatal shootings, including at least one juvenile mass shooting and multiple police killings.
Except in very limited circumstances, possession of a switch is illegal, as the National Firearms Act classifies the switch itself as a machinegun.
Yet the number of switches law enforcement recovered has risen dramatically in the past few years. Between 2017 and 2023, Texas-based ATF agents seized 991 switches; 490 of those - 50 percent - were seized just last year. They are often sold over social media, marketed to adults and juveniles alike.
At Monday’s press conferences, the U.S. Attorneys announced that as part of Operation Texas Kill Switch, they are partnering with Crime Stopper programs statewide to combat the proliferation of these illegal devices.
From now until Aug. 31, local Crime Stopper programs will offer cash rewards for information leading to the apprehension or prosecution of those who possess switches or 3D printers being used to manufacture them. Tipsters may use **TIPS to be connected to a Crime Stoppers program in their area. Tips can be submitted 24 hours a day, and anonymity is guaranteed by law. Information may also be submitted directly to ATF at www.atf.gov/contact/atf-tips.
U.S. Attorneys Hamdani, Simonton, Esparza and Diggs also urged local law enforcement to partner with federal authorities on switch cases, which carry maximum sentences of up to 10 years in the federal system. They laid out their case in a joint op-ed published Monday in the Austin American Statesman, which you can read here.
Texas U.S. Attorneys Announce “Operation Texas Kill Switch” Aimed at Machinegun Conversion DevicesRead the Press Release
Today, U.S. Attorneys for the Northern, Southern, Eastern, and Western Districts of Texas announced “Operation Texas Kill Switch,” a statewide initiative targeting illegal machinegun conversion devices, colloquially known as “switches.”
At simultaneous press conferences throughout the state, U.S. Attorneys Leigha Simonton, Alamdar Hamdani, Damien Diggs, and Jaime Esparza, joined by Bureau of Alcohol, Tobacco, Firearms, & Explosives Special Agents in Charge Jeffrey Boshek and Michael Weddel, lambasted switches, which transform commercially available firearms into fully automatic weapons capable of firing faster than military-grade M4s.
“We’re here to talk about a roughly one-inch piece of plastic. It looks innocuous enough, a little like a lego or a k’nex block. But this one-inch piece of plastic is killing people,” U.S. Attorney Leigha Simonton said at Monday’s press conference. “Machinegun conversion devices can turn Second Amendment-protected firearms into illegal weapons of war, and petty criminals into brutal killers. We cannot have our streets turned into war zones. We cannot – and we will not – allow switches to proliferate in north Texas.”
“I have been in this business for a long time, and nothing scares me more than the rapid flood of machine gun conversion devices on the streets of Texas and beyond. Rest assured that ATF and its partners are doing everything we can to stop the flow of these things and to prevent the carnage they can create. I applaud our U.S. Attorney partners for their willingness to aggressively prosecute these criminals and gangsters” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
About an inch long, switches may be made of metal or plastic and can be printed on commercially available 3D printers. They generally slot into the butt of a gun and allow the shooter to fire “full auto,” unloading dozens of rounds with a single pull of the trigger. (In contrast, regular semi-automatic firearms require a separate trigger pull for each round fired.) To date, switches have been used in numerous fatal shootings, including at least one juvenile mass shooting and multiple police killings.
Except in very limited circumstances, possession of a switch is illegal, as the National Firearms Act classifies the switch itself as a machinegun.
Yet the number of switches recovered by law enforcement has risen dramatically in the past few years. Between 2017 and 2023, Texas-based ATF agents seized 991 switches; 490 of those, 50 percent, were seized just last year. They are often sold over social media, marketed to adults and juveniles alike.
At Monday’s press conference, the U.S. Attorneys announced that as part of Operation Texas Kill Switch, they are partnering with Crime Stopper programs statewide to combat the proliferation of these illegal devices.
From now until Aug. 31, local Crime Stopper programs will offer cash rewards for information leading to the apprehension or prosecution of those who possess switches or 3D printers being used to manufacture them. To be eligible for cash rewards, tipsters must provide information to their local Crime Stoppers program. Tipsters may also use **TIPS to be connected to a Crime Stoppers program in their area. Tips can be submitted 24 hours a day, and anonymity is guaranteed by law. Information may also be submitted directly to ATF at www.atf.gov/contact/atf-tips.
U.S. Attorneys Simonton, Esparza, Diggs, and Hamdani also urged local law enforcement to partner with the feds on switch cases, which carry maximum sentences of up to 10 years in the federal system. They laid out their case in a joint op-ed published Monday in the Austin American Statesman, which you can read here. Watch clips from a machinegun conversion device shooting demonstration here and here.
Texas U.S. Attorneys Announce “Operation Texas Kill Switch” Aimed at Machinegun Conversion DevicesRead the Press Release
SAN ANTONIO – Today, U.S. Attorneys for the Western, Northern, Southern, and Eastern Districts of Texas announced, “Operation Texas Kill Switch,” a statewide initiative targeting illegal machinegun conversion devices, colloquially known as “switches.”
At simultaneous press conferences throughout the state, U.S. Attorneys Jaime Esparza, Leigha Simonton, Alamdar Hamdani, and Damien Diggs, joined by Bureau of Alcohol, Tobacco, Firearms, & Explosives Special Agents in Charge Jeffrey Boshek and Michael Weddel, and ATF Assistant Special Agent in Charge Robert Topper, lambasted switches, which transform commercially available firearms into fully automatic weapons capable of firing faster than military-grade M4s.
“As U.S. Attorneys and federal law enforcement agents, our offices have been investigating and prosecuting switches for many years, but as the problem continues to escalate, we are determined to do more,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Operation Kill Switch has two main goals. We encourage state and local law enforcement to be on the lookout for machinegun conversion devices, and we urge the public to report switches to law enforcement.”
“Today’s important initiative is aimed at raising awareness of illegal machine gun conversation devices also known as ‘switches,’” said Special Agent in Charge Michael Weddel for ATF Houston. “Today’s threat comes from machinegun conversion devices that easily convert a firearm into a machinegun. These “Switches” as they are often called on the streets, not only pose a serious threat to those living in our communities but a unique and deadly threat to law enforcement. Simply possessing one of these devices is a federal crime and we will work endlessly in conjunction with our United States Attorney’s Office in addition to our local, state, and federal partners to identify and prosecute these crimes.”
About an inch long, switches may be made of metal or plastic and can be manufactured using a 3D printer. They generally slot into the butt of a gun and allow the shooter to fire “full auto,” unloading dozens of rounds with a single pull of the trigger. (In contrast, regular semi-automatic firearms require a separate trigger pull for each round fired.) To date, switches have been used in numerous fatal shootings, including at least one juvenile mass shooting and multiple police killings.
Except in very limited circumstances, possession of a switch is illegal, as the National Firearms Act classifies the switch itself as a machinegun.
Yet the number of switches recovered by law enforcement has risen dramatically in the past few years. Between 2017 and 2023, Texas-based ATF agents seized 991 switches; 490 of those, 50 percent, were seized just last year. They are often sold over social media, marketed to adults and juveniles alike.
At Monday’s press conference, the U.S. Attorneys announced that as part of Operation Texas Kill Switch, they are partnering with Crime Stopper programs statewide to combat the proliferation of these illegal devices.
From now until Aug. 31, local Crime Stopper programs will offer cash rewards for information leading to the apprehension or prosecution of those who possess switches or 3D printers being used to manufacture them. To be eligible for cash rewards, tipsters must provide information to their local Crime Stoppers program. Tipsters may also use **TIPS to be connected to a Crime Stoppers program in their area. Tips can be submitted 24 hours a day, and anonymity is guaranteed by law. Information may also be submitted directly to ATF at www.atf.gov/contact/atf-tips.
U.S. Attorneys Esparza, Simonton, Hamdani, and Diggs also urged local law enforcement to partner with the feds on switch cases, which carry maximum sentences of up to 10 years in the federal system. They laid out their case in a joint op-ed published Monday in the Austin American Statesman.
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Southern District of Mississippi Recognizes World Elder Abuse Awareness DayRead the Press Release
Jackson, Miss. – Todd Gee, U.S. Attorney for the Southern District of Mississippi, joins national, state, local, and Tribal leaders in recognizing World Elder Abuse Awareness Day (WEAAD) on Saturday, June 15, 2024. Since 2006, WEAAD has been commemorated to promote awareness and increase understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Gee emphasized the importance of awareness and education.
“Fraudulent scams targeting elders and other forms of elder abuse happen far too often in Mississippi and throughout the nation,” said U.S. Attorney Gee. “We can see these scams being attempted nearly every day in the junk emails and robocalls targeting elder relatives for money and personal information. World Elder Abuse Awareness Day is a great opportunity to spread information about how to protect elder family and friends from fraud and other abuse.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes.
For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes. To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
The U.S. Attorney’s Office for the Southern District of Mississippi continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes. For example, the office recently prosecuted a case involving six college track and field athletes for their roles in overseas fraud schemes targeting elders and others across the United States in romance scams, fraudulent goods scams and military scams. The victims of the fraud schemes would be instructed to send money to individuals based in the United States, who would then transfer the money ultimately back overseas.
Additionally, a Kiln man was sentenced to 30 months in prison for convincing his elderly neighbors to give him their personal identifying information so he could help them receive benefits related to the COVID pandemic. Evans then used that information to apply for unemployment insurance under the Economic Security (CARES) Act benefits in the victims’ names and had the benefits sent to him at his residence.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.