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Wednesday 24 April 2024
Odessa Man Pleads Guilty to Stealing Veterans Affairs FundsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Anthony J. Salomone (64, Odessa) has pleaded guilty to theft of government property. Salomone faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for July 11, 2024.
According to court documents, Salomone’s mother received Veterans Affairs (VA) benefits as the surviving spouse of a deceased veteran. The benefits were direct deposited into the mother’s checking account to which Salomone had access via a power of attorney. Salomone’s mother died on October 2, 2017. Salomone did not report his mother’s death to the VA, which continued to deposit monthly benefits for her until March 2022, thinking she was still alive. Salomone took those benefits, to which he was not entitled, and spent them on his own personal and business expenses. In total, he stole $63,359.92 in funds belonging to the United States.
This case was investigated by the Department of Veterans Affairs - Office of Inspector General’s Southeast Field Office. It is being prosecuted by Special Assistant United States Attorneys Matthew Del Mastro and Suzanne Huyler.
Newark Resident Admits Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted his role in a scheme to steal checks sent through the mail and commit bank fraud, U.S. Attorney Philip R. Sellinger announced today.
Malachi Jefferson, 25, of Newark, pleaded guilty on April 22, 2024, before U.S. District Judge Julien X. Neals in Newark federal court to an information charging him with bank fraud.
According to documents filed in this case and statements made in court:
From April 2022 through November 2022, Jefferson’s conspirator, a U.S. Postal Service employee, stole checks from a Keansburg, New Jersey, post office. Jefferson and his conspirators then worked to deposit the stolen checks in order to fraudulently obtain more than $150,000 from the victim financial institutions.
The defendant faces a maximum sentence of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Sept 9, 2024.
U.S. Attorney Sellinger credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector Christopher A. Nielsen, Philadelphia Division, officers with the Keansburg Police Department, under the direction of Chief Andrew Gogan, the Hazlet Police Department, under the direction of Chief of Police Robert Mulligan, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
jefferson.information.pdfNew Jersey Couple Convicted of Forced Labor and Other Federal CrimesRead the Press Release
After a two-week trial, a federal jury in Camden, New Jersey, found Bolaji Bolarinwa, 50, and Isiaka Bolarinwa, 67, both of Burlington County, New Jersey, guilty of forced labor and other crimes related to their coercive scheme to compel two victims to perform domestic labor and childcare in their home.
Bolaji Bolarinwa was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude. The jury also convicted Isiaka Bolarinwa of two counts of forced labor and one count of alien harboring for financial gain. The defendants were each acquitted of a second count of alien harboring for financial gain.
“The defendants deceitfully lured the victims to the United States with promises of benefits, but then betrayed them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants confiscated the victims’ passports, threatened them, degraded them, physically abused them and kept them under constant surveillance, all to coerce the victims’ labor and ruthlessly exploit them for the defendants’ own profit. Human trafficking is a heinous crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These defendants engaged in an egregious bait-and-switch, luring the victims with false promises of a life and an education in the United States, and instead subjected them to grueling hours, physical abuse and psychological abuse,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents and support staff for ensuring that justice was done in this case.”
“Imagine showing up in a foreign land, hoping for a better life and ending up trapped with no place to go and no one to turn to for help,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “The victims in this investigation suffered in unimaginable ways at the hands of their captors, enduring years of physical and mental abuse. Human trafficking often takes on many different forms and can hide in plain sight. I want to commend the agents and victim specialists who worked on this case, alongside our partners at the U.S. Attorney’s Office. We want everyone to know if you or anyone you know is a victim – you can come to us for help. We will bring your tormentors to justice.”
The evidence presented at trial, including the testimony of two victims, established that, between December 2015 and October 2016, Bolaji and Isiaka Bolarinwa – originally from Nigeria, but living in New Jersey as U.S. citizens – recruited two victims to come to the United States and then coerced them to perform domestic labor and childcare services for their children through physical harm, threats of physical harm, isolation, constant surveillance and psychological abuse. The defendants engaged in this venture knowing that both victims were out of lawful status while working in their home.
Once Victim 1 arrived in the United States in December 2015, Bolaji Bolarinwa confiscated her passport and coerced her through threats of physical harm to her and her daughter, verbal abuse, isolation and constant surveillance to compel her to work every day, around the clock for nearly a year. Isiaka was aware of his wife’s threats and abusive behavior toward Victim 1 and directly benefited from Victim 1’s cooking, cleaning and childcare. The defendants then recruited Victim 2 to come to the United States on a student visa. When Victim 2 arrived in the United States in April 2016, Bolaji Bolarinwa similarly confiscated her passport and coerced her to perform household work and childcare but relied more heavily on physical abuse. On at least one occasion, Isiaka Bolarinwa also physically abused Vitim 2, and he was aware of his wife’s coercive, abusive behavior toward Victim 2 and directly benefited from her cleaning and childcare. Victim 1 and Victim 2 lived and worked in the Bolarinwa home until October 2016, when Victim 2 summoned the courage to outcry to a professor at her college, who in turn, reported the targets to the FBI.
A sentencing hearing will be scheduled at a later date. Both defendants face a maximum penalty of 20 years in prison for each forced labor count, and a maximum penalty of 10 years in prison for the alien harboring count. Bolaji Bolarinwa faces a maximum penalty of five years in prison for each unlawful document conduct count. They will also be required to pay mandatory restitution to the two victims and each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
The FBI Newark Field Office investigated the case.
Assistant U.S. Attorney Jeffrey Bender for the District of New Jersey and Trial Attorney Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
More Than Six Years After Fleeing the U.S., Dominican Republic Native Sentenced to 6.5 Years in Federal Prison for Smuggling $2 Million in HeroinRead the Press Release
PITTSBURGH, Pa. - A Dominican Republic native and former New York City resident has been sentenced in federal court to 78 months of incarceration, to be followed by five years of supervised release, on his conviction for federal drug trafficking offenses, United States Attorney Eric G. Olshan announced today.
United States District Judge Robert J. Colville imposed the sentence on Habys Omar Meran, age 38.
According to information presented to the Court, on January 26, 2016, Meran was driving a van containing a sophisticated, hydraulically activated hidden compartment when stopped on Interstate 80 by a Pennsylvania State Trooper who specializes in drug interdiction. The compartment was found to contain over four kilograms of heroin, an amount valued at over $2 million when packaged and sold on the street. Meran’s passenger—his relative Juan Wilquin Hernandez-Bourdier—was convicted by a jury of all charges on December 13, 2018, and is currently serving a 10-year sentence in the Federal Bureau of Prisons. But prior to Meran’s trial, Meran removed his ankle monitor and fled the country on November 23, 2017. The United States Marshals Service initiated a fugitive investigation and Meran was arrested in the Dominican Republic in 2023 and subsequently extradited back to the United States under an international treaty with the Dominican Republic government.
Prior to imposing sentence, Judge Colville stated that the seriousness of Meran’s drug-trafficking actions and his subsequent flight from justice warranted the significant sentence imposed. Judge Colville also ordered that the vehicle used to transport the drugs be forfeited to the federal government and noted that Meran will be deported to the Dominican Republic after serving his 78-month term of imprisonment.
Assistant United States Attorneys Ross E. Lenhardt and James R. Wilson prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Homeland Security Investigations for the investigation that led to the prosecution of both Meran and Hernandez-Bourdier, with valuable assistance from the Pennsylvania State Police Interdiction Team, Pennsylvania State Police Crime Lab, Department of Homeland Security Crime Lab, United States Marshals Service, and Drug Enforcement Administration.
Mexican National Sentenced to more than 17 Years’ Imprisonment for Narcotics ChargeRead the Press Release
United States Attorney Susan Lehr announced on April 24, 2024, Fausto Antonia Castro Mendoza, 37, of Guaymas, Sonora, Mexico, was sentenced in federal court in Omaha, Nebraska, after having pled guilty to possession with intent to distribute methamphetamine and fentanyl. United States District Court Judge Brian C. Buescher sentenced Castro Mendoza to 210 months’ imprisonment. After completing his term of imprisonment, Castro Mendoza will be deported to Mexico as he is not a United States citizen.
On March 4, 2023, a Seward County Deputy Sheriff conducted a traffic stop on a white 2021 Chevrolet Tahoe traveling eastbound, near mile marker 382 on Interstate-80. The driver of the Tahoe was identified as Fausto Antonio Castro Mendoza. Codefendant Jesus Villanueva was identified as the front seat passenger. During the course of the traffic stop, the Deputy observed a marijuana product and subsequently searched the Tahoe discovering approximately 44 pounds of meth, and approximately 2 pounds of fentanyl pills.
During a post arrest interviews both Castro Mendoza and Villanueva admitted transporting the meth and fentanyl pills from Denver, Colorado, to Omaha, Nebraska, and that each was being paid to do so.
Villanueva pled guilty to the same narcotics charge and was sentenced to 235 months imprisonment on April 3, 2024.
This case was investigated by the Seward County Sheriff’s Office and the Drug Enforcement Administration.
Mexican National Sentenced to 10 Years in Prison for Trafficking Meth, FentanylRead the Press Release
ALPINE, Texas – A Mexican national was sentenced in a federal court in Alpine to 120 months in prison for possession with intent to distribute fentanyl and methamphetamine.
According to court documents, Marcos Kenedy Ledezma Campos, 35, attempted to enter the Presidio Port of Entry when, during inspection, agents extracted 69 bundles from the gas tank of his vehicle. Further analysis revealed the bundles contained approximately 2.4 kilograms of fentanyl pills and 33.8 kilograms of methamphetamine. Ledezma Campos was taken into custody. He pleaded guilty to the charge on Jan. 24.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
HSI investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
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Marinette County Man Sentenced to 12 years in Federal Prison for Soliciting Sexually Explicit Images of a MinorRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 24, 2024, David A. Johnson (age: 37) of Marinette County County, Wisconsin, was sentenced to 12 years in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, Johnson used various online media platforms to engage in sexual conversations with minors in Florida and Ohio. He requested explicit visual images from the minors and also sent them explicit images of his genitalia. Independently, each minor contacted law enforcement in their respective states. The Federal Bureau of Investigation (FBI) arranged to have an undercover agent converse with Johnson online. Johnson believed the agent was a 14-year-old child. Johnson demanded that the “child” send him explicit images. Within days of commencing the investigation, Johnson was taken into custody at his residence in Marinette.
At sentencing, Judge Griesbach noted the extremely serious nature of the crime and commended the bravery of the victims who reported Johnson’s actions. Judge Griesbach found a strong need to protect the public from Johnson. Ultimately, the judge determined that a sentence of 12 years in federal prison was a fair and just sentence. Upon the completion of his prison sentence, Johnson will spend 15 years on supervised release. He will also have to register as a sex offender under state and federal law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Green Bay Resident Agency, Milwaukee Division, and the Lima Resident Agency, Cleveland Division of the Federal Bureau of Investigations, Marinette County Sheriff’s Office and the Flagler County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Man convicted for sending nude photos and explicit texts to 13-year-old childRead the Press Release
GALVESTON, Texas – A federal judge has returned a guilty verdict against a Brazoria man for sending obscene photos and messages to a minor, announced U.S. Attorney Alamdar S. Hamdani.
U.S. District Judge Jeffrey Brown found George Jimenez, 45, guilty of coercion and enticement of a minor following a one-day trial that commenced April 3. Judge Brown entered the order late April 23. Prior to trial, Jimenez pleaded guilty to two counts of transfer of obscene material to a minor.
In April 2019, law enforcement discovered Jimenez had sent pictures of his genitals to a 13-year-old girl and other contacts in his phone. Five were the minors’ 12 and 13-year-old classmates.
Authorities executed a federal search warrant and discovered Jimenez was using the TextNow application to disguise himself as a teenage boy to engage in sexually explicit conversations with minors.
From March until April 2019, Jimenez engaged in those communications, including sending at least five pictures of his genitals to the 13-year-old child. In approximately 17 communications, Jimenez asked the minor victim for pictures of either her breasts, buttocks or genital area.
In a text exchange, the minor shared information with Jimenez that she shaved her genital region. Jimenez then sent messages asking to see images of it.
At the trial, the defense attempted to convince the court the messages he sent to the minor did not arise to the level of attempting to persuade the minor to send him sexually explicit photos of herself. He did not believe those claims and found Jimenez guilty as charged. In his ruling, the court stated, “these requests were direct, specific and unambiguous. They were not shrouded in innuendo or bashfulness. Simply put, there is no question that Jimenez repeatedly asked [the minor] to take and send him pictures of her genitals and pubic area.”
Judge Brown has sentencing for June 12. At that time, Jimenez faces 10 years to life in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
FBI conducted the investigation.
Assistant U.S. Attorneys Karen M. Lansden and Sherin S. Daniel are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Man Who Claimed to be Delta Force Veteran Found Guilty of FraudRead the Press Release
AUSTIN, Texas – A federal jury convicted a Manor man for four counts of wire fraud and one count of money laundering.
According to court documents and evidence presented at trial, between April 2021 and July 2023, Saint Jovite Youngblood, aka Kota Youngblood, 52, committed wire fraud against his victims by claiming Mexican drug cartel members were planning to commit violence against them. Youngblood falsely claimed to have been part of the U.S. Army’s Delta Force special operations unit and offered protection to his victims from the cartels in exchange for money. Youngblood also represented that funds obtained from his victim “investors” would be paid back with a significant return on the money. Instead, Youngblood allegedly used most of the money on junkets to Las Vegas to gamble in casinos.
Youngblood was arrested July 31, 2023. He now awaits a date to be sentenced before U.S. District Judge Robert Pitman, facing up to 20 years in prison for each of the four wire fraud counts and up to 10 years for the money laundering count.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Daniel D. Guess and Matt Harding prosecuted the case.
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Man Sentenced to Nine Years in Prison for Transporting Two Girls for ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – April 24, 2024
SAN DIEGO – Deonathan Abdul Gaston of Long Beach, California, was sentenced in federal court Monday to nine years in prison for transporting two girls, ages 15 and 16, to San Diego in August 2023 to engage in prostitution.
One of the victims had been reported missing from Arizona prior to being transported by Gaston from Arizona to Los Angeles and then to San Diego to engage in prostitution. Gaston had known one of the victims since she was 14.
The victims were rescued by the National City Police Department on August 13, 2023, when officers conducted a traffic stop on the defendant in a high-crime area known for prostitution. He had no driver’s license on him and was not going to be allowed to drive the car. He called his “girlfriend” to come pick up the car from the traffic stop; the girl turned out to be the missing Arizona teen. Officers then responded to the hotel where the girl said they were staying and found the other victim. The case was turned over to the San Diego Human Trafficking Task Force.
“Selling children for sex is a reprehensible crime that impacts victims for a lifetime,” said U.S. Attorney Tara McGrath. “We can all play a part in protecting the vulnerable by paying close attention to warning signs and reporting concerns. Our children are not necessarily being grabbed from the street. They are being groomed and recruited online.” Please see https://humantraffickinghotline.org/en/human-trafficking/recognizing-signs
If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.
This case was prosecuted by Assistant U.S. Attorneys Lyndzie M. Carter and Derek Ko.
DEFENDANTS Case Number 23-cr-1944-AGS
Deonathan Abdul Gaston Age: 26 Long Beach, CA
SUMMARY OF CHARGES
Transportation for Purpose of Prostitution – Title 18, U.S.C., Section 2421(a)
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
National City Police Department
San Diego County District Attorney’s Office
Homeland Security Investigations
Federal Bureau of Investigation
San Diego Human Trafficking Task Force
MPD Officer and a Maryland Accountant Plead Guilty to COVID Emergency Loan FraudRead the Press Release
Owen M. Grigsby, 44, of Waldorf, Maryland, and Himmeh Kuawogai, 46, of Ellicott City, Maryland, pleaded guilty today in U.S. District Court in connection with filing false and misleading information in order to fraudulently obtain over $95,000.00 in Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans. The announcement was made by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI’s Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department.
Grigsby is a patrol officer with the Metropolitan Police Department (MPD) who is currently on administrative leave with pay. Kuawogai is an accountant and owner of HAK Accounting Services. Both men both pleaded guilty to one count of conspiracy to commit wire fraud by engaging in a scheme to defraud and obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, which carries a potential penalty of five years in prison. The Honorable Randolph D. Moss presided over the guilty pleas and scheduled sentencing for September 10, 2024.
According to court documents, Kuawogai helped Grigsby establish Owen Grigsby Associates (OAG) in Maryland in July 2020. At the time, Grigsby was employed by the MPD. Although Grigsby was required to report any outside business venture to MPD pursuant to MPD policies, Grigsby failed to do so. OGA allegedly had no legitimate purpose and was created only to obtain EIDL and PPP loans.
In October 2020, Grigsby filed an EIDL application on behalf of OGA containing materially false statements to the Small Business Administration (SBA). Grigsby was approved for that loan and fraudulently obtained $53,600.00. In December 2021, Grigsby filed an application containing materially false statements on behalf of OGA to the SBA seeking to modify his original EIDL in the amount of $214,500.00. Grigsby was denied that loan modification. Grigsby applied for the EIDLs despite never intending to use loan funds for a legitimate business purpose.
In April 2021, Grigsby submitted his first PPP loan application on behalf of OGA containing materially false statements to Harvest Small Business Finance, LLC (HSBF), an FDIC-insured financial institution. In April 2021, Grigsby submitted his second PPP loan application on behalf of OGA containing materially false statements to HSBF. As a result of Grigsby’s first fraudulent and misleading PPP loan application, HSBF approved Grigsby’s loan application for OGA for $20,833.00 causing HSBF to disburse $20,833.00 into OGA’s bank account. As a result of Grigsby’s second fraudulent and misleading PPP loan application, HSBF approved Grigsby’s “Second Draw” loan application causing HSBF to disburse $20,833.00 into OGA’s bank account. Grigsby applied for the two PPP loans despite never intending to use loan funds for a legitimate business purpose. In August 2021, Grigsby filed two PPP loan forgiveness applications containing materially false statements. As a result of these fraudulent loan applications, HSBF forgave OGA’s first and second PPP loans.
For each fraudulent loan and forgiveness application Grigsby submitted on behalf of OGA, Kuawogai assisted Grigsby by providing him with amended and fake documents and explaining the loan application process to him via messaging applications, the phone, and email.
This case was investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, Small Business Administration Office of Inspector General, and the U.S. Attorney’s Office for the District of Columbia.
The case is being prosecuted by U.S. Attorney Rebecca G. Ross
Milwaukee Man Convicted of Laundering Proceeds of Business Email Compromise Fraud SchemesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that following a bench trial that concluded on April 23, 2024, Chief U.S. District Judge Pamela Pepper found Corey Lee, Sr. (age: 52) of Milwaukee, Wisconsin, guilty of one count of conspiracy to commit money laundering in violation of 18 U.S.C. § 1956(h) (Count 1), two counts of concealment money laundering in violation of 18 U.S.C. § 1956 (Counts 2 and 4), and two counts of engaging in financial transactions with money derived from criminal activity in violation of 18 U.S.C. § 1957 (Counts 5 and 6).
The evidence presented at trial established that between May 2018 and approximately July 2019, Lee and his co-conspirators laundered over $1.2 million, which were proceeds of four business email compromise (“BEC”) schemes. A BEC scheme is a form of cybercrime in which a fraudster uses false and misleading emails to fraudulently induce a victim to transfer funds to a bank account controlled by the fraudster and the fraudster’s accomplices.
Four businesses fell victim to the BEC schemes, and the evidence presented at trial revealed that Lee and his co-conspirators laundered those funds by transferring the money between and among various bank accounts they controlled, withdrawing large amounts in cash, and by transferring some of the money to others, in an elaborate effort to disguise the nature, location, source, ownership, and control of the fraud proceeds. Lee and his co-conspirators also used some of the victim funds for their own personal purposes, including vacations and luxury cars.
“Mr. Lee consciously and repeatedly laundered funds he knew were illicitly obtained by others. His actions helped cyber criminals victimize businesses by laundering money that was fraudulently obtained, making it more difficult for the victims and law enforcement to track the money,” said U.S. Attorney Haanstad. “We are committed to working with our federal, state, and local partners to hold everyone involved in these schemes accountable for their actions.”
“This case demonstrates the commitment of IRS Criminal Investigation in unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money, “stated Chicago Field Office Special Agent in Charge Justin Campbell. Lee faces a maximum prison sentence of twenty years each for Counts 1, 2, and 4, and 10-years imprisonment each for Counts 5 and 6.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Peter Smyczek.
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Lincoln, Illinois, Man Sentenced to 156 Months for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Lincoln, Illinois, man, Curtis Kelly, 35, was sentenced on April 23, 2024, by U.S. District Judge Colleen R. Lawless to 156 months in prison, to be followed by a 5-year term of supervised release, for conspiring to distribute and distribution of methamphetamine.
Kelly was indicted in January 2023 and pleaded guilty in August 2023. He has been detained by the United States Marshals Service since December 21, 2022.
At sentencing, the government showed that Kelly conspired with Darryl Verser and Richard Dinger to distribute approximately 13 kilograms of methamphetamine to include specific drug transactions in November and December of 2022. Dinger is scheduled to be sentenced on May 17, 2024. The charges against Verser and another co-defendant, Nicholas Steele remain pending. Members of the public are reminded that an indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
The statutory penalties for distributing methamphetamine are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Drug Enforcement Administration, Illinois State Police, and Peoria Police Department. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Kelly 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.
Laboratory Owners Charged in $36M COVID-19 Testing Fraud SchemeRead the Press Release
MIAMI –An indictment was unsealed today in the Southern District of Florida charging three men for their alleged roles in an approximately $36 million health care fraud, wire fraud, and money laundering scheme that involved submitting false and fraudulent claims for COVID-19 testing to health care benefit programs, including Medicare and the Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program.
Enrique Perez-Paris, 47, of Aventura, Florida, and Diego Sanudo Sanchez Chocron, 47, of Venice, California, made their initial appearances today in the U.S. District Court for Southern District of Florida. Gregory Charles “Milo” Caskey, 57, of San Antonio, Texas, made his initial appearance today in the U.S. District Court for the Western District of Texas.
According to court documents, Perez-Paris, Sanchez, and Caskey were owners of Innovative Genomics, an independent laboratory. Between November 2019 and June 2023, the defendants and others allegedly conspired to submit claims for medically unnecessary and non-reimbursable COVID-19 testing. The defendants also allegedly paid illegal kickbacks and bribes to patient recruiters who arranged for health care providers to refer the tests to Innovative Genomics. At times, the defendants allegedly caused the HRSA COVID-19 Uninsured Program to be improperly billed for tests for Medicare beneficiaries. The defendants allegedly further billed for tests that the Food and Drug Administration had not approved for emergency-use authorization.
The defendants are each charged with conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy counts and a maximum penalty of 10 years on each health care fraud count.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office; and Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Reginald Cuyler Jr. of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Laboratory Owners Charged in $36M COVID-19 Testing Fraud SchemeRead the Press Release
Update: On March 27, 2025, defendants Diego Sanudo Sanchez Chocron and Gregory Charles “Milo” Caskey were found not guilty by a federal jury in the Southern District of Florida.
An indictment was unsealed today in the Southern District of Florida charging three men for their alleged roles in an approximately $36 million health care fraud, wire fraud, and money laundering scheme that involved submitting false and fraudulent claims for COVID-19 testing to health care benefit programs, including Medicare and the Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program.
Enrique Perez-Paris, 47, of Aventura, Florida, and Diego Sanudo Sanchez Chocron, 47, of Venice, California, made their initial appearances today in the U.S. District Court for Southern District of Florida. Gregory Charles “Milo” Caskey, 57, of San Antonio, Texas, made his initial appearance today in the U.S. District Court for the Western District of Texas.
According to court documents, Perez-Paris, Sanchez, and Caskey were owners of Innovative Genomics, an independent laboratory. Between November 2019 and June 2023, the defendants and others allegedly conspired to submit claims for medically unnecessary and non-reimbursable COVID-19 testing. The defendants also allegedly paid illegal kickbacks and bribes to patient recruiters who arranged for health care providers to refer the tests to Innovative Genomics. At times, the defendants allegedly caused the HRSA COVID-19 Uninsured Program to be improperly billed for tests for Medicare beneficiaries. The defendants allegedly further billed for tests that the Food and Drug Administration had not approved for emergency-use authorization.
The defendants are each charged with conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy counts and a maximum penalty of 10 years on each health care fraud count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office; and Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Reginald Cuyler Jr. of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Knox county man pleads guilty to committing child pornography crimes while on federal supervised releaseRead the Press Release
COLUMBUS, Ohio – A repeat sex offender pleaded guilty in U.S. District Court to committing new child pornography crimes while on federal supervised release.
Lee Allen Goudy, 30, of Howard, Ohio, admitted to distributing and possessing child pornography. He was sentenced in U.S. District Court in April 2018 to 78 months in prison for distributing pornography of pre-school-aged children.
As a previous offender, Goudy will face a prison sentence of at least 15 years and up to 40 years in prison for his current offense.
According to court documents, in August 2023, the FBI received a tip that Goudy was a Tier II registered sex offender and was believed to have uploaded child pornography online.
At least four cyber tipline reports related to Goudy were generated from the National Center for Missing and Exploited Children (NCMEC).
The investigation revealed that Goudy had distributed child pornography from a Reddit account via Kik messenger and on Twitter. Goudy used the same email address to trade child pornography that he used in his prior federal conviction.
Approximately 650 videos and 100 images of child sexual abuse material were recovered from Goudy’s iPhone. His collection included sexual abuse of infants and toddlers, and the sexual torture of babies. For example, one video depicted a newborn infant being smacked in the face, grabbed by the throat and shaken back and forth.
Goudy’s iPhone search history also included web searches like “supervised release monitoring iPhone” and “does federal monitoring work on iPhone.”
A second cell phone of Goudy’s also revealed searches for content related to violence, rape and sex acts against infants and toddlers. That phone included 150 images of child sexual abuse material that Goudy had traded on Discord.
Goudy was arrested in September 2023 for violating his federal supervised release warrant.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea offered before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Keshena Man Indicted for Kidnapping, Assault with Intent to Murder, and Strangulation on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 23, 2024, a federal grand jury returned a three-count indictment charging John V. Miller, Jr. (age: 42), of Keshena, Wisconsin, with kidnapping, assault with intent to murder, and strangulation on the Menominee Indian Reservation.
The indictment charged Miller as follows:
COUNT
DATE
CHARGE
MAXIMUM PENALTY IF CONVICTED
One
On or about March 29, 2024
Kidnapping in Indian Country, 18 U.S.C. §§ 1201(a)(2) and 1153(a)
Up to 20 years in prison, up to $250,000 fine
Two
On or about March 29, 2024
Assault with Intent to Murder, 18 U.S.C. §§ 113(a)(1) and 1153(a)
Up to 20 years in prison, up to $250,000 fine
Three
On or about March 29, 2024
Domestic Assault by Strangulation, 18 U.S.C. § 113(a)(8)
Up to 10 years in prison, up to $250,000 fine
According to filed court documents, on or about March 29, 2024, while at a location on the Menominee Indian Reservation, Miller allegedly strangled a woman with whom he had a prior intimate relationship, attempted to strangle her to the point of unconsciousness, and assaulted her in an attempt to kill her. Miller then allegedly seized and confined her inside the trunk of a vehicle to conceal his actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case in U.S. District Court in Green Bay.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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KC Tax Preparer Pleads Guilty to False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer pleaded guilty in federal court today to aiding the preparation of dozens of false tax returns.
Linzell Harris, 67, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of aiding and assisting in the preparation of a false tax return.
Harris owned and operated The MJM Group, Inc., a tax preparation business, from 1999 through 2022. By pleading guilty today, Harris admitted that he willfully exaggerated and fabricated multiple deductions and credits for his clients to obtain large refunds. The total tax loss to IRS for tax years 2015 through 2019 as a result of Harris’s false tax returns was $124,308.
Harris prepared returns for at least 12 taxpayer clients, resulting in at least 43 false income tax returns for tax years 2015 through 2019.
In addition to assisting in the preparation of false tax returns, Harris admitted he did not file personal tax returns for 2015 and 2016, causing a tax loss of $60,753.
The total tax loss caused the Harris’s preparation of false tax returns and his failure to file personal tax returns is $185,061.
Under federal statutes, Harris is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by IRS-Criminal Investigation.
Jacksonville Man Sentenced to Federal Prison for Escaping from Halfway HouseRead the Press Release
Jacksonville, FL – Chief U.S. District Judge Timothy J. Corrigan has sentenced Michael A. Crider (44, Jacksonville) to 30 months in federal prison for escaping from custody. Crider entered a guilty plea on January 3, 2024.
According to court documents, in 2018, Crider was adjudicated guilty and sentenced to 6 years and 8 months in federal prison for possessing a firearm as a convicted felon. In January 2023, while Crider was completing that term of imprisonment, the Bureau of Prisons transferred him into the custody of Bridges Federal Reintegration Centers–Jacksonville, a residential re-entry center or halfway house. While in custody there, Crider was subject to drug testing. On the evening of April 11, 2023, Crider was provided a copy of an incident report documenting a recent positive test for cocaine. Later, around midnight, a halfway house staff member noticed that Crider was not in his assigned dormitory. Staff members searched the facility but could not locate Crider.
A month later, on May 13, 2023, at approximately 6:00 a.m., in St. Augustine, Florida, a police officer saw a minivan (which Crider was driving) traveling at over 100 mph, running red traffic lights, and weaving in and out of traffic. The officer attempted to conduct a traffic stop. Crider refused to pull over, and a chase ensued. Crider eventually crashed the minivan and was arrested.
At the crash scene, the officer smelled marijuana coming from the minivan. Crider initially refused to identify himself, but eventually stated that he knew there was a warrant for his arrest. In the backseat of the minivan, police found a backpack, which contained several documents bearing Crider’s name, a scale, and a dose of buprenorphine 8mg, a synthetic opioid and Schedule III controlled substance.
This case was investigated by the U.S. Marshals Service and the St. Johns County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jacksonville Man Pleads Guilty to Making False Statements in an Attempt to Buy A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Peter Alexander Lawrence (41, Jacksonville) has pleaded guilty to making false statements and representations to a federally licensed firearms dealer. Lawrence faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in March 2023, Lawrence completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. On the form, Lawrence indicated that he had not been convicted of a crime where a judge could have imprisoned him for more than one year, and also that he had never been convicted of a misdemeanor crime of domestic violence. Both those statements were false in that, in 2008, Lawrence was convicted of a crime where the prison sentence could have been more than a year, and in 2018, he was convicted of misdemeanor domestic battery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brenna Falzetta.
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.
Jackson Man Sentenced to over 4 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 50 months in federal prison for possession of a firearm by a convicted felon.
According to court documents, on April 16, 2021, Samual McCray, 26, was found in possession of a firearm when Jackson Police officers responded to a domestic disturbance call at an apartment. Upon arrival, officers located two firearms in the apartment that belonged to McCray. When taking McCray into custody, officers found an additional firearm in his front left pants pocket. McCray has a previous felony conviction for manslaughter and is prohibited by federal law from possessing a firearm.
McCray pled guilty on July 26, 2023, to possession of a firearm by a convicted felon.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The FBI and Jackson Police Department investigated the case.
Assistant U.S. Attorney Matt Allen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Iowa City Man Sentenced to 27 Years in Federal Prison Related to Overdose DeathRead the Press Release
DAVENPORT, Iowa– A Iowa City man was sentenced today to 27 years in federal prison for Conspiracy to Distribute a Mixture and Substance Containing a Detectable Amount of Heroin Resulting in Death.
According to public court documents and evidence presented, on January 23, 2021, Iowa City Police officers were dispatched to a residence in Iowa City, Iowa, related to a suspected overdose. After investigation, Dione Dante Mobley (a.k.a. “Flee”), 43, and Lugene Shipp, 43, were identified as the source of the heroin and both were arrested for conspiracy to distribute heroin.
Mobley and Shipp were both convicted after a trial last fall. Today, Mobley was sentenced to 27 years of imprisonment. Shipp was previously sentenced to 25 years of imprisonment. After completing their terms of imprisonment, both Mobley and Shipp will be required to serve 5 years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa City Police Department, the University of Iowa Police Department, and the Johnson County Drug Taskforce.
Instagram Influencer Known as “Jay Mazini” Sentenced to 84 Months in Prison for Overlapping Fraud SchemesRead the Press Release
Earlier today, in federal court in Brooklyn, Jebara Igbara, also known as “Jay Mazini,” was sentenced by United States District Judge Frederic Block to 84 months in prison for wire fraud, wire fraud conspiracy and money laundering arising out of multiple schemes that resulted in millions of dollars in loss to trusting investors. Igbara pleaded guilty to the charges in November 2022. As set forth in the information, up until March 2021, Igbara maintained a popular Instagram account under the name “Jay Mazini,” where he would post videos depicting, among other things, occasions during which he would hand out large amounts of cash to various individuals as gifts. In reality, Igbara was perpetrating overlapping fraud schemes, scamming investors out of at least $8 million. As part of his sentence, Igbara was ordered to pay $10 million in forfeiture. The amount of restitution will be determined at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“The prosecution of Igbara unmasked him as a fraudster who used his social media popularity to con investors out of millions of dollars,” stated United States Attorney Peace. “Shamefully, he targeted his own religious community, taking advantage of their trust in him so he could spend and gamble their hard-earned money. Hopefully today’s sentence will influence fraudsters, like this defendant, to think twice about the consequences before they victimize investors for their own benefit.”
“Igbara was a crypto con man. He not only created a fake online presence to purport that he was a wealthy crypto investor, he used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes. He conned a New York Muslim community out of millions then simply spent it and gambled it away. Igbara had no regard for the victims he affected with his scam, but today’s sentence means that this crypto swindler, along with his social media persona, will now spend years in prison for his criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso.
Igbara maintained a popular social media presence on Instagram, calling himself “Jay Manzini,” with nearly one million followers during the offense period of 2019 to 2021. The defendant portrayed himself as a successful investor and businessman, and also posted material relating to his Muslim faith, portraying himself as religious. Igbara touted his purported wealth by posting videos on his Instagram account showing him handing out large sums of cash to shoppers waiting on the checkout line in grocery stores, individuals working in fast food restaurants and a woman he met at the airport who had lost her purse.
Igbara perpetrated an investment fraud scheme via a company called Halal Capital LLC. The scheme targeted members of the Muslim-American community in New York by soliciting their money for purported investments in stock, electronics resale and the sale of personal protective equipment. In reality, Igbara was operating a Ponzi scheme, and misappropriated nearly all of the money for his personal expenses, luxury vehicles and gambling. To raise money in order to pay his investors “returns,” and keep them on the hook, Igbara also perpetrated a second fraudulent scheme, wherein he posted on his Instagram and other social media accounts that he was willing to pay above-market prices for various cryptocurrencies. He would then send his victims doctored images of wire transfer confirmations that purported to show he had sent money for the cryptocurrency as promised, when in reality, the payment was never sent, and Igbara was merely stealing the cryptocurrency sent by his victim.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Lauren Howard Elbert and Joshua Dugan are in charge of the prosecution.
The Defendant:
JEBARA IGBARA (also known as “Jay Mazini”)
Age: 28
Edgewater, New JerseyE.D.N.Y. Docket No. 22-CR-424 (FB)
Inmate and Corrections Officer Sentenced in Bribery Scheme; Same Inmate Sentenced in Related Covid-Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – April 24, 2024
SAN DIEGO – Shawn Brown, an inmate at Richard J. Donovan Correctional Facility, was sentenced in federal court today to 30 months in prison for bribing a state corrections officer to smuggle contraband into prison, including dental molds and an expensive bejeweled “grill” for the inmate’s mouth.
A separate consecutive sentence of 48 months was also applied for Brown’s role in a scheme to file fraudulent claims with the California Employment Development Department, effectively stealing money that was intended give economic relief to people impacted by the pandemic. Brown was ordered to pay $550,000 in restitution to the State of California.
Benito Jamar Hugie, the corrections officer who helped Brown obtain the grill, was sentenced last month to 24 months in prison. Hugie, who is out on bond, was ordered to surrender by 12 p.m. on May 6, 2024.
Hugie pleaded guilty in November of 2023, admitting that he smuggled the gold-and-diamond grill into the facility in early October, 2020, and delivered it to Brown, who had custom ordered it from a jeweler in Houston, Texas, using a smuggled cell phone. A grill, also known as “fronts” or “golds,” is a type of dental jewelry worn over the teeth. Grills are generally made of metal and precious gems and are generally removable.
According to Brown’s plea agreement, the overall value of the scheme to acquire the custom grill, to bribe the corrections officer and to smuggle the contraband into the prison was more than $30,000.
At today’s hearing, U.S. District Judge Cathy Ann Bencivengo ordered Brown to turn over the grill to the government as part of his forfeiture agreement. Brown had opposed the request, arguing that he was unable to remove the grill because it was glued to his teeth. The government referred to a jail surveillance video that showed that the grill was, in fact, removeable. In this jail surveillance video, Brown was seen removing the grill from his mouth and putting it back in.
The COVID-related fraud scheme was discovered during the investigation of the bribery scheme. Agents learned that while in custody at the Richard J. Donovan Correctional Facility, Brown used his contraband cellular telephone to coordinate the theft of unemployment benefits intended for Californians who were unable to pay for food and housing as a result of the COVID-19 pandemic. Brown and co-conspirators caused an estimated $1.4 million in fraudulent claims to be filed with the state Employment Development Department, resulting in actual cash payouts of more than $695,000 to Brown and his co-conspirators.
Brown was originally serving time at the state prison for first degree murder in violation of California Penal Code Section 187(a). At today’s hearing Judge Bencivengo ordered that today’s two federal sentences be served consecutively to each other and to the original underlying state sentence.
“Diamonds are not always your friend,” said U.S. Attorney Tara McGrath. “These schemes have cost Brown years of his life and Hugie his career and good name. Maybe regular teeth would have been a better option.”
“The FBI and our law enforcement partners remain committed to ensuring the integrity of our criminal justice systems,” said FBI San Diego Acting Special Agent in Charge John Kim. “Those who abuse their positions of trust and those who corrupt the same will be held accountable as demonstrated in this investigation.”
This case was prosecuted by Assistant U.S. Attorney Orlando Gutierrez.
DEFENDANTS Case Number 22CR1238
Shawn Brown Age: 28 California Department of Corrections and Rehabilitation Inmate
Benito Jamar Hugie Age: 49 San Diego, CA
DEFENDANT Case Number 22CR1239
Shawn Brown Age: 28 California Department of Corrections and Rehabilitation Inmate
SUMMARY OF CHARGES
- Corruption Activities Stemming from the Grill
18 USC § 371 Conspiracy to Violate the Travel Act- Bribery (Count 1)
Defendants: Hugie, Brown
28 USC § 2461(c) Criminal Forfeiture
- Indictment 2: Fraud Activities Involving EDD
18 USC § 1349 Conspiracy; Mail Fraud
Defendants: Brown
28 USC § 2461(c) Criminal Forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
California Department of Corrections and Rehabilitation
Houston personal injury attorney and employee indicted for defrauding injured clients of settlement fundsRead the Press Release
HOUSTON – A Houston attorney and his former office manager are charged in federal court for conspiracy to commit mail fraud, announced U.S. Attorney Alamdar S. Hamdani.
Houston residents Clyde J. Moore, 62, and Mark A. Broussard, 63, made their initial appearances before U.S. Magistrate Judge Yvonne Ho at 2 p.m.
A federal grand jury returned the two-count indictment April 17 which was unsealed upon their arrests.
According to the indictment, Moore is an attorney who handles personal injury cases arising from car accidents. From approximately 2012 to 2021, he, Broussard and other employees at Clyde J. Moore Attorney at Law P.C. were allegedly involved in a scheme to defraud clients of settlement proceeds. The estimated amount of the fraud is $2.4 million.
Moore and his staff allegedly inflated the cost of medical expenses and misled injured clients to believe the firm paid certain medical providers more than they actually had, according to the charges.
As a result, clients allegedly received a smaller share of their entitled settlement funds. The charges allege the skimmed funds were diverted to the law firm’s trust account from which Moore allegedly made personal expenditures. These allegedly included luxury sports cars and his children’s private school tuition. The indictment alleges Moore also split the stolen funds with Broussard and other members of his firm who helped to execute the scheme.
For conspiracy to commit mail fraud, Moore and Broussard face up to five years in federal prison and a possible $250,000 maximum fine. Moore is also charged with an additional count of mail fraud which carries a maximum prison sentence of up to 20 years and a possible $250,000 fine.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Henryetta Resident Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenric West, age 47, of Henryetta, Oklahoma, pleaded guilty to one count of distributing methamphetamine.
The Indictment alleged that on September 28, 2023, West knowingly and intentionally distributed 112 grams of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the Oklahoma State Bureau of Investigation.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. West was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Heart Butte woman admits assaulting woman with vehicle on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Heart Butte woman accused of hitting another woman with her vehicle, pinning her between another vehicle, on the Blackfeet Indian Reservation, admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Julia Lee Bigback, 40, pleaded guilty to assault resulting in serious bodily injury. Bigback faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 29. Bigback was released pending further proceedings.
In court documents, the government alleged that on May 18, 2022, Bigback was drinking with others and driving a suburban around Browning. The group stopped at a residence where one of Bigback’s companions got into a physical altercation with the victim, identified as Jane Doe. Bigback remained in the suburban, parked behind two vehicles. After the fight, Bigback pulled forward in the suburban, hitting the car in front, which then struck Doe, who had been walking between two stationary cars. Doe was sandwiched between the two cars. Bigback then reversed out of the driveway and drove away. Doe suffered two broken legs and required extensive surgery.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.
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Group of Mobile Mail Thieves and Fraudsters Sentenced in Federal CourtRead the Press Release
MOBILE, AL – Five defendants from Mobile were sentenced for their roles in a scheme to commit bank fraud relating to theft of mail and fraudulent deposits of counterfeited and forged checks.
According to court documents, Jennifer Denise Johnson, 43, Julian Wayne Roberts, 36, Nicholas O’Neal Martin, 24, Maranda Lynn Slate, 34, and Micki Leigh Walker, 38, each pleaded guilty in federal court to engaging in a conspiracy to commit bank fraud between July 2021 and September 2022. The scheme involved Johnson and her coconspirators stealing mail from homes and businesses in the Mobile area, taking checks and other identification documents from the stolen mail, and generating counterfeits and forgeries to be deposited into bank accounts. Between August and October 2021, Johnson, Roberts, Martin, and Slate made numerous fraudulent check deposits and withdrawals at various Regions Bank branches in Theodore and Tillman’s Corner, as depicted on surveillance video. Federal agents also obtained text messages and Facebook messages that the defendants exchanged with one another in furtherance of the scheme.
In September 2022, Mobile police arrested Johnson and Walker after they attempted to cash another forged check that had been stolen from the mail and bore the identifiers of an elderly victim. Inside Johnson’s vehicle, agents found several bags full of stolen mail, identification cards belonging to mail-theft victims, and numerous stolen debit and credit cards belonging to victims. In a recorded interview with investigators, Johnson admitted that she was “addicted” to stealing mail and had been engaged in a mail-theft and fraud conspiracy with her codefendants for more than a year.
Chief United States District Judge Jeffrey U. Beaverstock sentenced Johnson and Roberts each to 36 months’ imprisonment, and Walker to 12 months and one day in prison Martin and Slate received sentences of time served. Upon release from custody, each defendant will serve a five-year term of supervised release, during which time they will receive drug and/or mental health treatment, and will be subject to credit restrictions. The court did not impose fines, but Chief Judge Beaverstock ordered the defendants to pay a total of $600 in special assessments and victim restitution in the following amounts: $2,500 (Johnson and Roberts); $2,000 (Martin); and $500 (Slate).
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service, the Mobile Police Department, and the Mobile County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Grand jury indicts local man & woman in connection with conspiracy to damage grocery store with an incendiary deviceRead the Press Release
CINCINNATI – A federal grand jury indicted a local man and woman in connection with a conspiracy to damage a Spring Grove Village grocery store with an incendiary device in the style of a Molotov cocktail.
Donald Donatelli, 28, and Angela Schweitzer, 35, are both charged with conspiring to commit malicious damage and destruction of a building in interstate commerce. Donatelli is also charged in a second count of directly causing the damage.
An affidavit filed in support of a criminal complaint details that around 10pm on Nov. 26, Donatelli allegedly threw an incendiary device in the style of a Molotov cocktail into the store. The store’s owner and his wife were inside the store at the time.
Donatelli and Schweitzer allegedly arrived at the store together in a white BMW. It is alleged that Schweitzer moved to the driver’s seat while Donatelli lit the device, opened the store’s door and threw it inside.
According to the affidavit, Schweitzer filmed a Snapchat video of the alleged crime and sent it to Donatelli.
Conspiring to commit malicious damage and destruction of a building, and the act of doing so, are federal crimes punishable by at least five and up to 20 years in prison.
Donatelli and Schweitzer were originally arrested on local charges and have been moved to federal custody. Their federal case was unsealed today.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges and acknowledged the assistance of the Cincinnati Fire Department, Cincinnati Police Department, Hamilton County Sheriff’s Office and Union Township Police Department. Assistant United States Attorneys Megan Gaffney Painter and Julie D. Garcia are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned three indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Two Madison Men Charged with Passing Counterfeit Money
Cornelius Stewart, 30, and Alex J. Stubbs, 26, both of Madison, Wisconsin, are charged in a 32-count indictment with conspiring to pass counterfeit obligations of the United States and with passing counterfeit $100 bills with intent to defraud. The indictment alleges that the two men passed counterfeit bills and attempted to pass counterfeit bills at businesses in Dane, Monroe, and Jefferson Counties between July and December 2023.
If convicted of the conspiracy charge, Stewart and Stubbs face maximum penalties of 5 years in prison. The men face maximum penalties of 20 years on each of the charges involving passing or attempting to pass counterfeit bills.
The charges against Stewart and Stubbs are the result of an investigation by the United States Secret Service and police departments from Madison, Verona, Fitchburg, Shorewood Hills, Cottage Grove, Marshall, Sun Prairie, Tomah, and Oconomowoc. Assistant United States Attorney Robert Anderson is handling the prosecution.
Mexican National Faces Additional Charge of Possessing Cocaine for Distribution
Eli Torres-Banos, 36, a citizen of Mexico residing in Watertown, Wisconsin, is charged with possessing 5 kilograms or more of cocaine intended for distribution. The indictment alleges that he possessed the cocaine on or about December 6, 2023.
Torres-Banos was charged on November 29, 2023, with being found in the United States after having been removed. The indictment alleged that he was found in the United States on June 7, 2023. He pled guilty to the offense on March 15, 2024, and his sentencing is scheduled for June 4, 2024, before U.S. Chief Judge James D. Peterson.
If convicted on the new drug charge, Torres-Banos faces a minimum penalty of ten years and a maximum penalty of life in prison.
The charges against Torres-Banos are the result of investigations conducted by the Drug Enforcement Administration, Jefferson County Drug Task Force, Watertown Police Department, and U.S. Immigration & Customs Enforcement. Assistant United States Attorneys Steven P. Anderson and Steven C. Ayala are handing the case.
Madison Man Charged with Multiple Drug Crimes
Kyle Evans, 33, Madison, Wisconsin, is charged in a nine-count indictment with distributing cocaine and methamphetamine, distributing 50 grams or more of methamphetamine, possessing for distribution and distributing 500 grams or more of methamphetamine, and maintaining a drug trafficking place. The indictment alleges that Evans committed all these acts between January 29, 2024 and April 9, 2024.
If convicted, Evans faces a minimum penalty of 10 years and a maximum penalty of life in prison for each of the charges involving 500 grams or more. He faces a minimum penalty of 5 years and a maximum penalty of 40 years in prison for each of the charges involving 50 grams or more. The remaining charges in the indictment each carry a maximum penalty of 20 years.
The charges against Evans are the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Louis Glinzak is handling the prosecution.
Grady County Man Sentenced to Serve 10 Years in Federal Prison for Child AbuseRead the Press Release
OKLAHOMA CITY – Yesterday, EVANDER DAYLE YANITO, 33, of Grady County, was sentenced to serve 120 months in federal prison for child abuse in Indian Country, announced U.S. Attorney Robert J. Troester.
On May 16, 2023, a federal grand jury charged Yanito with child abuse. According to an affidavit filed in support of a criminal complaint, on August 19, 2022, Yanito reported to medical personnel that a two-month-old infant was having difficulty breathing. The infant was transported to a Grady County hospital and later to OU Children’s Hospital, after which law enforcement began an investigation.
While at OU Children’s Hospital, Yanito spoke with members of the Chickasha Police Department and the Oklahoma Department of Human Services, and admitted to causing bodily harm to the infant victim.
On September 13, 2023, Yanito pleaded guilty, and admitted that he willfully injured and harmed the infant victim, and that he was responsible for the infant victim’s health, safety, and welfare.
At the sentencing hearing yesterday, U.S. District Judge Joe Heaton sentenced Yanito to serve 10 years in federal prison, followed by three years of supervised release. In announcing the sentence, the court noted the vulnerability of the infant victim and evidence indicating the infant victim was abused on more than one occasion.
This case is in federal court because Yanito is a citizen of the Navajo Nation and the crime occurred within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Chickasha Police Department. Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
Reference is made to public filings for additional information.
Founders and CEO of Cryptocurrency Mixing Service Arrested and Charged with Money Laundering and Unlicensed Money Transmitting OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging KEONNE RODRIGUEZ, the Chief Executive Officer and a co-founder of Samourai Wallet (“Samourai”), and WILLIAM LONERGAN HILL, the Chief Technology Officer and also a co-founder of Samourai, with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. These charges arise from the defendants’ development, marketing, and operation of a cryptocurrency mixer that executed over $2 billion in unlawful transactions and facilitated more than $100 million in money laundering transactions from illegal dark web markets, such as Silk Road and Hydra Market; a web-server intrusion; a spearphishing scheme; and schemes to defraud multiple decentralized finance protocols. RODRIGUEZ was arrested this morning and is expected to be presented today or tomorrow before a U.S. Magistrate Judge in the Western District of Pennsylvania. HILL was arrested this morning in Portugal based on the U.S. criminal charges. The United States will seek HILL’s extradition to stand trial in the United States. The case is assigned to U.S. District Judge Richard M. Berman.
In coordination with law enforcement authorities in Iceland, Samourai’s web servers and domain (https://samourai.io/) were seized. Additionally, a seizure warrant for Samourai’s mobile application was served on the Google Play Store. As a result, the application will no longer be available to be downloaded from the Google Play Store in the United States.
U.S. Attorney Damian Williams said: “As alleged, Keonne Rodriguez and William Lonergan Hill are responsible for developing, marketing, and operating Samourai, a cryptocurrency mixing service that executed over $2 billion in unlawful transactions and served as a haven for criminals to engage in large-scale money laundering. Rodriguez and Hill allegedly knowingly facilitated the laundering of over $100 million of criminal proceeds from the Silk Road, Hydra Market, and a host of other computer hacking and fraud campaigns. Together with our law enforcement partners, we will continue to relentlessly pursue and dismantle criminal organizations that use cryptocurrency to hide illicit conduct.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “$2 billion in transactions with an unlicensed money transmitter means $2 billion flowed without any oversight, from whomever to wherever. Because of the company’s disregard for regulation, it’s alleged that Samourai Wallet laundered more than $100 million in criminal proceeds. Special Agents with IRS:CI New York and IRS:CI LA’s Cyber units worked with our federal and international law enforcement partners to not only arrest the founders and CEO, but to also seize their domain. Samourai Wallet is now closed for business.”
FBI Assistant Director in Charge James Smith said: “Threat actors utilize technology to evade law enforcement detection and create environments conducive to criminal activity. For almost 10 years, Keonne Rodriguez and William Hill allegedly operated a mobile cryptocurrency mixing platform which provided other criminals a virtual haven for the clandestine exchange of illicit funds, the facilitation of more than $2 billion in illegal transactions, and $100 million in dark web money laundering. The FBI is committed to exposing covert financial schemes and ensuring no one can hide behind a screen to perpetuate financial wrongdoing.”
According to the allegations in the Indictment unsealed today in Manhattan federal Court:[1]
Background on Samourai
From about 2015 through February 2024, RODRIGUEZ and HILL developed, marketed, and operated a cryptocurrency mixing service known as Samourai, an unlicensed money transmitting business from which they earned millions of dollars in fees. Samourai unlawfully combined multiple unique features to execute anonymous financial transactions valued at over $2 billion for its customers. While offering Samourai as a “privacy” service, the defendants knew that it was a haven for criminals to engage in large-scale money laundering and sanctions evasion. Indeed, as the defendants intended and well knew, a substantial portion of the funds that Samourai processed were criminal proceeds passed through Samourai for purposes of concealment. During the relevant period, Samourai laundered over $100 million of crime proceeds originating from, among other criminal sources, illegal darkweb markets, such as Silk Road and Hydra Market; various wire fraud and computer fraud schemes, including a web-server intrusion, a spearphishing scheme, and schemes to defraud multiple decentralized finance protocols; and other illegal activities.
RODRIGUEZ and HILL began developing Samourai in or about 2015. Samourai is a mobile application that users can download onto their cellphones, and the application has been downloaded over 100,000 times. After users download Samourai, they can store their private keys for any BTC addresses they control inside of the Samourai program. These private keys are not shared with Samourai employees, but Samourai operates a centralized server that, among other things, supervises and facilitates transactions between Samourai users and creates new BTC addresses used during the transactions. Samourai is used by customers all over the world, including customers located in the United States and in the Southern District of New York.
RODRIGUEZ and HILL designed Samourai to offer at least two features intended to assist individuals engaged in criminal conduct to conceal the source of the proceeds of their criminal activities. First, Samourai offers a cryptocurrency mixing service known as “Whirlpool,” which coordinates batches of cryptocurrency exchanges between groups of Samourai users to prevent tracing of criminal proceeds by law enforcement on the Blockchain. Second, Samourai offers a service called “Ricochet,” which allows a Samourai user to build in additional and unnecessary intermediate transactions (known as “hops”) when sending cryptocurrency from one address to another address. This feature similarly may prevent law enforcement and/or cryptocurrency exchanges from recognizing that a particular batch of cryptocurrency originates from criminal activity. Since the start of the Whirlpool service in or about 2019, and of the Ricochet service in or about 2017, over 80,000 BTC (worth over $2 billion applying the BTC-USD conversion rates at the time of each transaction) has passed through these two services operated by Samourai. Samourai collects a fee for both services, estimated to be about $3.4 million for Whirlpool transactions and $1.1 million for Ricochet transactions over the same time period.
RODRIGUEZ and HILL’s Knowledge and Intent for Criminal Proceeds to be Laundered by Samourai
RODRIGUEZ and HILL operated Twitter accounts that encouraged and openly invited users to launder criminal proceeds through Samourai. For example, in or around June 2022, Samourai’s Twitter account — operated by RODRIGUEZ — posted the following message regarding Russian oligarchs seeking to circumvent sanctions:
Similarly, in a private message on or about August 27, 2020, HILL — using a Twitter account with the username “Samourai Dev” — discussed the use of Samourai by criminals operating in online black markets such as Silk Road in private messages with another Twitter user (the “Twitter User”) (emphasis added):
Twitter User: Silk Road is why I first found Bitcoin and the desire to keep engaging in those types of markets is one reason that I want to defend/strengthen those use cases . . .
Samourai Dev: No, not at all. We probably have different views on some basic tenets of bitcoin, you and I – so to each his own so to speak. At Samourai we are entirely focused on the censorship resistance and black/grey circular economy. This implies no foreseeable mass adoption, although black/grey markets have already started to expand during covid and will continue to do so post-covid. . . .
Additionally, in response to Europol highlighting Samourai as a “top threat” to the ability of law enforcement to trace the proceeds of criminal activity, HILL posted a message in or around March 2021 suggesting that Samourai would not change its practices in response to allegations that Samourai was being used for money laundering:
Similarly, RODRIGUEZ and HILL possessed and transmitted to potential investors marketing materials that discussed how Samourai’s customer base was intended to include criminals seeking privacy or the subversion of safeguards and reporting requirements by financial institutions. For example, in Samourai’s marketing materials, RODRIGUEZ and HILL similarly acknowledge that the individuals most likely to use a service like Samourai include individuals engaged in criminal activities, including “Restricted Markets.”
In the below excerpt from Samourai’s marketing materials, RODRIGUEZ and HILL acknowledge that its revenues will be derived from “Dark/Grey Market participants” seeking to “swap their bitcoins with multiple parties” to avoid detection:
In Samourai’s marketing materials, RODRIGUEZ and HILL promoted Samourai’s Wallet and its “Mixing Service” as a “Premium Privacy Service” for transactions involving the proceeds of goods and services that include, among other things, “Illicit Activity.”
* * *
RODRIGUEZ, 35, of Harmony, Pennsylvania, and HILL, 65, a U.S. national who was arrested in Portugal, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The maximum potential 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 investigative work of IRS-CI and the FBI. He also acknowledged the assistance of the Justice Department’s Office of International Affairs. Mr. Williams also thanked Europol, the Portugal Judiciary Police, the Icelandic Police, the FBI Field Office in Pittsburgh, the FBI’s International Operations Division, and the IRS-CI Los Angeles Field Office for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Andrew K. Chan and David R. Felton are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Operator of Two Municipal Golf Courses Sentenced to Prison for Tax Conspiracy and Making False StatementRead the Press Release
BOSTON – The former operator of two municipal golf courses in Western Massachusetts was sentenced yesterday in federal court in Springfield for conspiring to defraud the United States and making a false statement.
Kevin M. Kennedy, 45, of East Longmeadow was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison, followed by three years of supervised release and restitution to be determined at a later date. The government argued for a sentence of 21-27 months in prison, followed by three years of supervised release and restitution in the amount of $351,565. 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. The defendant was acquitted of embezzlement from a local government receiving federal benefits, wire fraud, money laundering and unlawful monetary transactions.
“Stealing from the taxpayers is far from a victimless crime. It diverts scarce resources that are needed to fund important services like education and elder care and public safety,” said Acting United States Attorney Joshua S. Levy. “Every honest law abiding citizen is a victim of this type of embezzlement from the city.”
“Today’s sentencing of Kevin Kennedy demonstrates that no one is above the law,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Kennedy’s status as a professional golfer could not insulate him from the consequences of his actions to defraud the America taxpayers. Today’s sentencing demonstrates IRS Criminal Investigations commitment to investigating all financial crimes and ensuring equity in our tax system.”
Kennedy owned and operated Kennedy Golf Management Inc., through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. Kennedy skimmed money from the company without reporting that money to the IRS. According to court documents and evidence presented at trial, Kennedy conspired with two individuals to evade taxes he owed on money received from his company. Kennedy used a substantial amount of cash to pay for the construction of two custom homes in East Longmeadow and on Cape Cod. To induce the bank to provide him a mortgage for part of the East Longmeadow home, Kennedy submitted a home purchase contract to the bank that falsely reflected a total purchase price reduced by the $160,000 cash downpayment he had made.
Just prior to trial, Kennedy also pleaded guilty to four counts of filing a false individual income tax return for 2011 through 2014, during which he also admitted to filing a false return in 2009 and 2010. For each of those years, Kennedy did not report to his return preparer all of the cash and checks his management company received from his operation of the golf courses.
Acting U.S. Attorney Levy; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and IRS SAC Chavis made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office and Trial Attorney Eric B. Powers of the Justice Department’s Tax Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Operator of Two Municipal Golf Courses Sentenced for Tax Conspiracy and Filing False Tax ReturnsRead the Press Release
A former Massachusetts golf course manager was sentenced to 13 months in prison yesterday for conspiring to defraud the United States, filing false tax returns and making a false statement to a financial institution.
According to court documents and evidence presented at trial, Kevin Kennedy conspired with a luxury home builder in western Massachusetts to evade taxes he owed on money he received from his management of two municipal golf courses owned by the City of Springfield. The home builder constructed custom homes for Kennedy in East Longmeadow and on Cape Cod. Kennedy paid for much of the homes in cash he received from the golf courses. For the East Longmeadow home, Kennedy and the home builder created two contracts, one with the agreed-upon purchase price and one with a deflated purchase price. The latter contract listed a purchase price that was $160,000 lower than the contract price, which was the amount Kennedy had paid in cash as a down payment to the home builder. To induce the bank to provide him a mortgage for part of the East Longmeadow home, Kennedy submitted the deflated home purchase contract to the bank.
Just prior to trial, Kennedy pleaded guilty to filing false individual income tax returns. According to court documents and statements made in court, for tax years 2009 through 2014, Kennedy filed false tax returns that did not report all the cash and checks he received from his golf course management. In total, Kennedy underreported his income by more than $1 million, resulting in a tax loss to the IRS exceeding $300,000.
In addition to his prison sentence, U.S. District Judge Mark G. Mastroianni for the District of Massachusetts ordered Kennedy to serve three years of supervised release. Judge Mastroianni will determine the amount of restitution at a later date.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief Eric B. Powers of the Justice Department’s Tax Division and Assistant U.S. Attorney Neil Desroches for the District of Massachusetts prosecuted the case.
Former Maricopa County Deputy Public Defender Sentenced for Drug TraffickingRead the Press Release
PHOENIX, Ariz. – Sally Joyce Nyemba, 33, of Phoenix, was sentenced on Monday to 18 months in prison by United States District Judge Susan M. Brnovich. Nyemba pleaded guilty to Attempted Possession with Intent to Distribute Methamphetamine on August 31, 2023.
Nyemba was a practicing attorney and is a former Maricopa County Deputy Public Defender. On May 11 and 12, 2020, Nyemba negotiated the purchase of two pounds of methamphetamine for $3,600 and 4,000 M30 pills for $10,000 from an undercover Drug Enforcement Administration (DEA) agent.
On May 12, 2020, Nyemba met with the undercover DEA agent in Phoenix, and was arrested after she provided the agent $3,600 for the drugs. Agents searched Nyemba’s vehicle and seized approximately $14,158 in U.S. currency.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The Drug Enforcement Administration East Valley Drug Enforcement Task Force conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-01094-PHX-SMB
RELEASE NUMBER: 2024-055_Nyemba# # #
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.Former Fall River Police Officer Sentenced to over Two Years in Prison for Assaulting Man in Custody and Filing False ReportsRead the Press Release
BOSTON – A former Fall River Police Officer was sentenced today for assaulting a man in custody with a baton and failing to report the assault in subsequent reports.
Nicholas M. Hoar, 37, was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison, followed by one year of supervised release. In February 2024, Hoar was convicted of one count of deprivation of rights under color of law and two counts of false reports.
On Dec. 21, 2020, while on duty as an officer with the Fall River Police Department, Hoar struck an individual who had been arrested in the forehead with a 22-ounce, steel, expandable police baton, resulting in an injury to the arrestee that required stitches. Hoar then submitted two official police reports which omitted any mention of the fact that he had struck the arrestee in the forehead with a baton; in one of the reports Hoar falsely blamed the victim’s injury on a fall.
“Police officers take an oath to uphold the law and the vast majority of men and women in uniform bravely protect and serve the public across this District each and every day,” said Acting United States Attorney Joshua S. Levy. “Nicholas Hoar violated his oath and broke the law. This lengthy prison sentence sends a message to the entire community that we will continue to hold members of law enforcement accountable when they violate a person’s civil rights.”
“What Nicholas Hoar did is indefensible and a serious divergence from the oath he took to faithfully serve and protect the citizens of Fall River,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “There is no question police officers have a challenging job, but it doesn’t give them the right to beat someone in their custody and lie about it. Those under arrest retain the same civil rights you and I do. Know that the FBI is determined to defend those rights, and root out corrupt law enforcement officers, on behalf of the vast majority who carry out their duties with honor.”
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and John J. Reynolds III of the Criminal Division are prosecuting the case.
Former Comptroller General of Ecuador Convicted for $10M International Bribery and Money Laundering SchemeRead the Press Release
MIAMI – A federal jury in Miami convicted the former Comptroller General of Ecuador yesterday for his role in a multimillion-dollar international bribery and money laundering scheme.
According to court documents and evidence presented at trial, between 2010 to 2015, Carlos Ramon Polit Faggioni, 73, solicited and received over $10 million in bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate. Polit, in his position as Comptroller General of Ecuador, was responsible for protecting public funds against fraud and rooting out corruption. Instead, Polit took bribes from Odebrecht in exchange for removing fines and not imposing fines on Odebrecht’s projects in Ecuador. Additionally, in or around 2015, Polit received a bribe from an Ecuadorian businessman in exchange for assisting the businessman with obtaining certain contracts with the state-owned insurance company of Ecuador.
“This verdict is a reminder of our office’s firm commitment to investigating and prosecuting corrupt foreign officials who bring their criminally obtained funds to South Florida to buy real estate,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida.
“As Comptroller General of Ecuador, Carlos Ramon Polit Faggioni was entrusted to protect the people of Ecuador from the misuse of public funds. Instead, Polit abused his position as a public official by soliciting and pocketing over $10 million in bribes and then laundering the illicit funds in Miami,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division is committed to ensuring that the United States is not a safe haven for the illicit funds of corrupt officials.”
From in or around 2010 and continuing until at least 2017, at the direction of Polit, another member of the conspiracy caused proceeds of Polit’s bribery scheme to “disappear” by using Florida companies registered in the names of friends and associates, often without the associates’ knowledge. The conspirators also used funds from Polit’s bribery scheme to purchase and renovate real estate in Florida.
“This conviction shows that despite your wealth, title, or influence, nobody is above the law,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “HSI and its partners on the El Dorado Financial Crimes Task Forces will continue to pursue corrupt foreign officials who utilize their official positions for their own illicit gain”.
The jury convicted Polit of one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property. He faces a maximum penalty of 20 years in prison on each count of money laundering and conspiracy to commit money laundering and a maximum penalty of 10 years in prison on each count of engaging in transactions in criminally derived property. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Odebrecht S.A. pleaded guilty in December 2016 in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.
HSI’s Miami Field Office investigated this case. The FBI International Corruption Squad investigated the Odebrecht case and provided substantial assistance in this case.
The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also thanks the assistance of law enforcement authorities in Ecuador, Brazil, Panama, and Curacao with the investigation.
Assistant U.S. Attorney Michael N. Berger for the Southern District of Florida and Trial Attorney Jil Simon and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Marx P. Calderon for the Southern District of Florida is handling asset forfeiture.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-CR-20114.
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Former Comptroller General of Ecuador Convicted for $10M International Bribery and Money Laundering SchemeRead the Press Release
A federal jury in Miami convicted the former Comptroller General of Ecuador yesterday for his role in a multimillion-dollar international bribery and money laundering scheme.
According to court documents and evidence presented at trial, between 2010 to 2015, Carlos Ramon Polit Faggioni, 73, solicited and received over $10 million in bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate. Polit, in his position as Comptroller General of Ecuador, was responsible for protecting public funds against fraud and rooting out corruption. Instead, Polit took bribes from Odebrecht in exchange for removing fines and not imposing fines on Odebrecht’s projects in Ecuador. Additionally, in or around 2015, Polit received a bribe from an Ecuadorian businessman in exchange for assisting the businessman with obtaining certain contracts with the state-owned insurance company of Ecuador.
“As Comptroller General of Ecuador, Carlos Ramon Polit Faggioni was entrusted to protect the people of Ecuador from the misuse of public funds. Instead, Polit abused his position as a public official by soliciting and pocketing over $10 million in bribes and then laundering the illicit funds in Miami,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division is committed to ensuring that the United States is not a safe haven for the illicit funds of corrupt officials.”
“This verdict is a reminder of our office’s firm commitment to investigating and prosecuting corrupt foreign officials who bring their criminally obtained funds to South Florida to buy real estate,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida.
From in or around 2010 and continuing until at least 2017, at the direction of Polit, another member of the conspiracy caused proceeds of Polit’s bribery scheme to “disappear” by using Florida companies registered in the names of friends and associates, often without the associates’ knowledge. The conspirators also used funds from Polit’s bribery scheme to purchase and renovate real estate in Florida.
“This conviction shows that despite your wealth, title, or influence, nobody is above the law,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “HSI and its partners on the El Dorado Financial Crimes Task Forces will continue to pursue corrupt foreign officials who utilize their official positions for their own illicit gain”.
The jury convicted Polit of one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property. He faces a maximum penalty of 20 years in prison on each count of money laundering and conspiracy to commit money laundering and a maximum penalty of 10 years in prison on each count of engaging in transactions in criminally derived property. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Odebrecht S.A. pleaded guilty in December 2016 in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.
HSI’s Miami Field Office investigated this case. The FBI International Corruption Squad investigated the Odebrecht case and provided substantial assistance in this case.
The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also thanks the assistance of law enforcement authorities in Ecuador, Brazil, Panama, and Curacao with the investigation.
Trial Attorney Jil Simon and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael N. Berger for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Marx P. Calderon for the Southern District of Florida is handling asset forfeiture.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Berklee College of Music Student Sentenced to Prison for Threatening Individual Promoting Democracy in ChinaRead the Press Release
BOSTON – A former Berklee College of Music student, who is a citizen of the People’s Republic of China (PRC), was sentenced today for stalking and threatening an individual who posted fliers around campus in support of democracy in China.
Xiaolei Wu, 26, was sentenced by U.S. District Court Judge Denise J. Casper to nine months in prison and three years of supervised release. In January 2024, Wu was convicted by a federal jury on one count of cyberstalking and one count of interstate transmissions of threatening communication.
“Mr. Wu’s criminal conduct is very serious. He harnessed the fear of potential retribution from the PRC government to harass and threaten an innocent individual who had posted an innocuous, pro-democracy flier on the Berklee campus. Mr. Wu’s violent threats achieved his goal of instilling fear in his effort to silence this brave victim and others who might want to speak out against the PRC government,” said Acting United States Attorney Joshua S. Levy. “Our office and the Department of Justice will not tolerate efforts to intimidate and threaten people to suppress their First Amendment rights. Censorship and repression campaigns will never be tolerated here.”
“Today, Xiaolei Wu learned there are serious consequences for harassing, threatening, stalking, and infringing on a fellow student’s constitutional rights solely because she was critical of the ruling Communist Party of China,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “What Mr. Wu did – in weaponizing the authoritarian nature of the People’s Republic of China to threaten this woman – is incredibly disturbing. We’d like to thank her for her bravery in coming forward, and remind others that the FBI will do everything it can to ensure that those who try to infringe on our fundamental rights – will face similar consequences.”
On Oct. 22, 2022, while Wu was attending the Berklee College of Music, an individual posted a flier on or near the Berklee College of Music campus which said, “Stand with Chinese People,” as well as, “We Want Freedom,” and “We Want Democracy.” Beginning on or about Oct. 22, 2022 through Oct. 24, 2022, Wu made a series of communications via WeChat, email and Instagram directed towards the victim who posted the flier. Among other things, Wu said, “Post more, I will chop your bastard hands off.”
Wu told the victim that he had informed the public security agency in China about the victim’s actions and that the public security agency in China would “greet” the victim’s family. Additionally, Wu solicited others to find out where the victim was living and publicly posted the victim’s email address in the hopes that others would abuse the victim online. Wu also told the victim that he had reported the victim’s information back to a member of the Chinese government.
Acting U.S. Attorney Levy, FBI SAC Cohen and Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division made the announcement today. Assistant U.S. Attorneys Timothy H. Kistner and Alathea E. Porter of the National Security Unit prosecuted the case with the assistance of Counterintelligence and Export Control Section Trial Attorney Menno Goedman.
Felon Who Possessed A Loaded Handgun Sentenced to Almost Nine Years in PrisonRead the Press Release
SAN FRANCISCO – Lamar Nolan Ryan has been sentenced to 105 months in prison following his conviction at trial for illegally possessing a loaded firearm, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp; and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jennifer Cicolani. The sentence was handed down by the Hon. William H. Orrick, Senior United States District Judge.
Ryan, 42, of San Francisco, was convicted at a bench trial in December 2023 on one count of being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1). A federal grand jury had indicted him on that offense in August 2023.
The evidence presented at trial showed that, on July 1, 2023, Ryan possessed a loaded, semi-automatic Glock handgun with an obliterated serial number that he had concealed in a holster underneath his clothes. Law enforcement officers detained Ryan in South San Francisco after receiving a report that he had taken a woman there and was attempting to coerce her to perform commercial sex work.
According to the government’s sentencing memorandum, the defendant met the woman at a San Francisco motel, where he paid her $500 for sex. After having sex with the woman, however, the defendant took the money back and tried to convince the woman to perform commercial sex acts under his management, in exchange for a 30 percent cut of her profits. The woman reluctantly agreed to go with the defendant, and he brought her to South San Francisco, where the defendant rented a motel room and showed the woman a handgun, telling her she would be “protected” while working for him. Not long thereafter, South San Francisco police officers found the defendant and the woman—whose family had tracked her location using her cellphone—in a car parked outside a laundromat.
In addition to sentencing Ryan to prison, Judge Orrick ordered the defendant to serve three years of supervised release to begin after his prison term is completed.
Assistant U.S. Attorneys Jared Buszin and Alexandra Shepard are prosecuting the case with assistance from Maribel Gallegos. The prosecution is the result of an investigation by the FBI and ATF.
Federal Jury Convicts Okmulgee Resident of First Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Elijha Dewayne Taylor, age 34, of Okmulgee, Oklahoma, was found guilty by a federal jury at trial of one count of Murder in the First Degree in Indian Country, one count of Causing the Death of a Person in the Course of a Violation of Title 18, United States Code, Section 924(c), and one count of Using, Carrying, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence.
The jury trial began with testimony on Monday, April 22, 2024, and concluded on Tuesday, April 23, 2024, with the guilty verdicts.
At trial, the government presented evidence that on March 4, 2023, Taylor approached a Muskogee apartment building, entered an apartment, then intentionally shot the victim with a .22 firearm before fleeing. The victim later died at an area hospital.
The guilty verdicts were the result of an investigation by the Muskogee Police Department, the Muskogee County Sheriff’s Office, and the Federal Bureau of Investigation.
The crimes occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the trial and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. The defendant will remain in custody of the United States Marshal until sentencing.
Assistant United States Attorney Attorneys Richard Lorenz and Gregory Dean Burris represented the United States.
Federal Jury Convicts Man of Illegally Possessing Machine Gun in Chicago SuburbRead the Press Release
CHICAGO — A federal jury has convicted a man on firearm charges for illegally possessing a machine gun in a Chicago suburb.
KEVIN DIXON, 27, of Midlothian, Ill., was found guilty April 19, 2024, of both counts against him, including one count of illegal possession of a machine gun and one count of illegal possession of a firearm as a previously convicted felon. Each count is punishable by a maximum sentence of ten years in federal prison. U.S. District Judge Virginia M. Kendall set sentencing for Sept. 10, 2024.
Evidence at the week-long trial in U.S. District Court in Chicago revealed that Dixon illegally possessed the firearm on June 6, 2021, in his vehicle in Lansing, Ill. The firearm was a Glock handgun equipped with a “switch” device, also known as a “Glock switch,” making it capable of firing in fully automatic mode. Dixon initially crashed his vehicle into another car and then sped off. The victim followed Dixon and eventually was able to block Dixon’s vehicle, at which point Dixon fired several gunshots and then drove off again. Dixon then sped through a red light and collided with two vehicles before running off on foot. Law enforcement apprehended him a short time later.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Alfred Phillips, Chief of the Lansing, Ill. Police Department. Valuable assistance was provided by the Illinois State Police, Illinois Secretary of State’s Office, and Illinois Department of Corrections. The government is represented by Assistant U.S. Attorney Kristen Totten and Special Assistant U.S. Attorney Charles Fox.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Grand Jury Indicts Two Men for Conspiracy to Traffic Heroin, Fentanyl, and CocaineRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on April 17, 2024, charging two Louisville men with conspiracy to traffic heroin, fentanyl, and cocaine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to the indictment, Brent Goldsberry, 40, and Marcus McGinnis, 33, were charged with one count of conspiracy to distribute controlled substances that included heroin, fentanyl, and cocaine. These offenses occurred between January 18, 2024, and April 10, 2024.
McGinnis made his initial court appearance this week before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. The Court ordered McGinnis detained pending trial. Goldsberry is currently in state custody and has not been scheduled for an initial court appearance yet. If convicted, Goldsberry and McGinnis each face a mandatory minimum sentence of 5 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the ATF and LMPD.
Assistant U.S. Attorney Emily Lantz is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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El Paso Man Sentenced to over 21 Years for Deadly Kidnapping in El PasoRead the Press Release
EL PASO, Texas – An El Paso man was sentenced today to 262 months in prison for kidnapping resulting in death.
According to court documents, Armando Leonardo Moreno aka Cholo, 21, served as a soldier in a transnational criminal organization (TCO) and conspired with other TCO members on or around Sept. 13, 2021, to kidnap a subject from an El Paso stash house. The kidnappers drove the subject to another address, dragged him out of the vehicle and beat him in the front yard of the home before taking him inside and beating him further. On Sept. 16, 2021, the subject was found deceased in Las Cruces, New Mexico, with multiple gunshot and stab wounds.
Codefendants Michelle Karen Avila, Ruben Pimentel and Ricardo Matthew Gutierrez were previously sentenced. Avila was sentenced to 60 months in prison, Pimentel was sentenced to 108 months, and Gutierrez received a 135-month sentence. A fourth defendant, Alberto Rodriguez, remains in federal custody and is scheduled to be sentenced May 1.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
Homeland Security Investigations, the El Paso Police Department, the New Mexico State Police, and the Texas Department of Public Safety investigated the case.
Assistant U.S. Attorneys Sarah Valenzuela and Ian Hanna prosecuted the case.
The indictments and convictions of these defendants are the result of the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of JTFA, which was established by Attorney General Merrick B. Garland created JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA, led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Office of International Affairs (OIA), and the Violent Crime and Racketeering Section JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 295 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 230 U.S. convictions; 170+ significant jail sentences imposed; and forfeitures of substantial assets.
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East Hartford Man Charged with Narcotics Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned a five-count indictment charging BRANDON SPENCE, also known as “Spun,” 36, of East Hartford, with fentanyl and cocaine trafficking offenses.
As alleged in court documents, in March and April 2024, the FBI’s Northern Connecticut Gang Task Force made controlled purchases of fentanyl and crack cocaine from Spence. On April 3, 2024, a court-authorized search of Spence’s residence and vehicles revealed distribution quantities of fentanyl.
The indictment, which was returned on April 16, charges Spence with three counts of possession with intent to distribute, and distribution of, controlled substances, and two counts of possession with intent to distribute controlled substances. Each charge carries a maximum term of imprisonment of 20 years.
Spence appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges. He has been detained since his arrest on April 3, 2024.
U.S. Attorney Avery stressed that 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 investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney Shan Patel.
Drug Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JASON COX, 50, formerly of Bridgeport, Connecticut, and Savannah, Georgia, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 125 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, in 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force began investigating an organization that was distributing heroin, fentanyl and crack cocaine in an around Bridgeport. During the investigation, Task Force members made four controlled purchases of heroin and fentanyl from Frank Best. The investigation, which included court-authorized wiretaps and hundreds of consensual recordings, revealed that Frank Best’s uncles, Wallace Best and Jeffrey Thomas, were supplying Frank Best and others with narcotics.
The investigation further revealed that Jeffrey Thomas worked with Jason Cox to establish a connection to Mexican-sourced drug suppliers in California who could provide kilogram quantities of narcotics for distribution on the East Coast. In December 2019, a cooperating source working in conjunction with Wallace Best, Thomas, and Cox, traveled to a Home Depot parking lot in San Diego and purchased from their suppliers 1.1 kilograms of fentanyl, cut with Xylazine, which is a veterinary sedative, and Tramadol, in exchange for $27,000. After this successful transaction, the conspirators arranged to purchase five kilograms of heroin from their Mexican suppliers. On February 10, 2020, four individuals were arrested after they arrived at the same parking lot to conduct the transaction and investigators seized a box containing approximately 4.9 kilograms of heroin. A related search of a storage locker in San Diego revealed an additional five kilograms of heroin.
On October 14, 2022, a jury found Wallace Best, Thomas, and Cox guilty of one count of conspiracy to distribute and to possess with intent to distribute kilogram quantities of heroin and fentanyl, and Wallace Best, Thomas, and Frank Best guilty of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, and cocaine base (“crack”). In addition, Frank Best was found guilty of five counts of possession with intent to distribute, and distribution of, heroin, fentanyl, and cocaine base.
Wallace Best, Thomas and Frank Best await sentencing.
Cox has been detained since his arrest on February 11, 2020.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force with the assistance of the DEA San Diego Field Division. The DEA’s Bridgeport HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Lauren C. Clark, and Katherine E. Boyles through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Dover Man Sentenced for “Straw Purchasing” FirearmsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that Jordan Harmon, 25, of Dover, was sentenced on April 15, 2024, to three years’ incarceration for straw purchasing firearms. The Honorable Colm F. Connolly, Chief Judge, United States District Court for the District of Delaware imposed sentence.
According to court documents, in 2020, Harmon purchased a total of 19 semi-automatic pistols from a federally licensed firearms dealer in Delaware. Federal firearm laws provide that, at the time of purchase, gun buyers must certify in writing that the firearm is being purchased for the buyer and not for someone else. Harmon falsely certified on a federal firearm transaction form that he was purchasing the 19 firearms for himself. In fact, Harmon was illegally purchasing the guns for others, a scheme known as “straw purchasing.” To date, law enforcement officers have recovered seven of the semi-automatic pistols. The investigation to recover the remaining firearms is ongoing.
U.S. Attorney Weiss said, “Straw purchasing firearms for individuals who cannot legally purchase guns is a threat to public safety. I commend the Dover Police Department and the Bureau of Alcohol, Firearms and Explosives for their hard work in investigating this case. For anyone considering purchasing a firearm for someone who cannot legally purchase one on their own, consider the end result in Mr. Harmon’s case – federal prison.”
The case was investigated by the Dover Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Edmond Falgowski.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-110.
Doctor Indicted on Charges of Unlawfully Distributing Controlled Substances and Health Care FraudRead the Press Release
Burlington, VT – A New Hampshire doctor made his initial appearance yesterday afternoon in federal court in Burlington and was arraigned on charges related to his alleged involvement in conspiracies to illegally distribute controlled substances and to commit health care fraud.
According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire orchestrated his alleged illegal prescribing and health care fraud conspiracies through New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics located in Vermont, New Hampshire, and Maine. Through NEMCA, Khan allegedly distributed drugs to individuals outside the usual course of professional practice and without a legitimate medical purpose. Khan allegedly required that patients pay cash in exchange for their prescriptions, despite many of his patients having insurance through Medicare and Vermont Medicaid. Khan allegedly prescribed the drugs knowing that at least some of his patients were abusing and diverting the drugs. In addition, Khan allegedly ordered medically unnecessary definitive urine drug testing while soliciting kickbacks and bribes from laboratories, knowing that federal health care programs would be billed for the medically unnecessary tests.
Khan is charged with one count of conspiracy to commit unlawful distribution of a controlled substance, 12 counts of illegal distribution of a controlled substance, one count of conspiracy to commit health care fraud, and two counts of health care fraud. If convicted, Khan faces a maximum penalty of 20 years in prison on the illegal distribution counts and a maximum penalty of 10 years in prison on each of the health care fraud counts.As a condition of Khan’s release pending trial, he is prohibited from writing prescriptions for controlled substances.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Nikolas P. Kerest for the District of Vermont; Acting Special Agent in Charge Stephen Belleau and Diversion Program Manager Evangela Dortch of the Drug Enforcement Administration (DEA) New England Division; Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Boston Field Office; Special Agent in Charge Craig L. Tremaroli of the FBI Albany Field Office; and Attorney General Charity R. Clark of the Vermont Attorney General’s Office, on behalf of the office’s Medicaid Fraud & Residential Abuse Unit, made the announcement.
DEA, HHS-OIG, the FBI, and the Vermont Attorney General’s Office, Medicaid Fraud and Residential Abuse Unit are investigating the case.
Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Gilman for the District of Vermont are prosecuting the case.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.
The Vermont Attorney General’s Office, Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
District Woman Pleads Guilty to Defrauding the STAY DC Tenant Assistance ProgramRead the Press Release
WASHINGTON – Khin Phoo Ngon, 27, of Washington, D.C., pleaded guilty yesterday in Superior Court to six felony counts arising from her defrauding a Covid-19 tenant assistance program of more than $245,000, announced U.S. Attorney Matthew M. Graves for the District of Columbia, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and D.C. Inspector General Daniel W. Lucas.
According to the government’s evidence, to which Ngon admitted in her plea, in 2021 Ngon submitted seven fraudulent applications to the Stronger Together by Assisting You (STAY DC) program, a DC government program established in 2021 to help cover unpaid rent and utilities for renters suffering hardship from the Covid-19 pandemic. At the time she submitted all seven applications, Ngon was the sole tenant of an apartment at 1111 New Jersey Ave SE in the District. Two of her fraudulent applications listed her actual address and stated accurate information about unpaid rent she owed, but falsely stated that her 2020 income was $17,270 and that her projected 2021 income was $12,000. In 2020, however, Ngon had actually received income well in excess of $57,650, the STAY DC program’s minimum qualifying threshold for a household of one, and was on pace to exceed that threshold for 2021 when she submitted both applications.
Ngon also submitted two applications in which she listed her residence as 3210 ½ O Street NW, an apartment she had moved out of in the summer of 2020 with her rent paid in full. Ngon attached a fictitious lease to that application and falsely stated in her application that she was residing at the O Street address and owed 19 months of unpaid rent. Based on that fraudulent application, Ngon received $37,000 from the program.
In her guilty plea, Ngon also admitted to submitting two STAY DC applications in her stepfather’s name without his knowledge or permission. Ngon falsely stated in those applications that her stepfather lived at 3632 N Street NW in the District and owed tens of thousands of dollars in back rent. In fact, Ngon’s stepfather lived in Virginia, and had never lived at that address. Ngon admitted that she attached stolen and doctored documents to both applications, including her stepfather’s expired driver’s license and federal and DC tax return documents. Ngon fraudulently obtained $82,800 from these two applications.
Finally, Ngon admitted to submitting a seventh STAY DC application, on behalf of an associate of hers. Ngon created a fraudulent lease document for an apartment at 450 Massachusetts Avenue NW, falsifying the lease term and monthly rent due. Based on those and other fraudulent representations, the STAY DC program issued Ngon’s associate a check for $78,200. Through a series of transactions involving other individuals, Ngon received at least $38,500 of those funds.
Ngon pled guilty to two counts of First-Degree Felony Fraud, two counts of First-Degree Felony Theft, and two counts of First-Degree Identity Theft. Her plea included the admission that, in total, she defrauded the DC government out of approximately $246,020.
The Honorable Jason Park accepted Ngon’s guilty plea and scheduled sentencing for August 9, 2024.
This case was investigated by the FBI’s Washington Field Office and the District of Columbia Office of Inspector General. The case is being prosecuted by Special Assistant U.S. Attorney Micah Bluming, on detail from the DC Office of the Attorney General to prosecute matters involving fraud and public corruption.
Colby CPA accused of defrauding business clientRead the Press Release
WICHITA, KAN. – A Kansas man made his initial appearance before a federal judge following an indictment for defrauding clients of his accounting firm.
According to court documents, Quintin Flanagin, 43, of Colby is charged with seven counts of wire fraud, four counts of bank fraud, two counts of false statements, and six counts of money laundering.
Flanagin, a certified public accountant (CPA), is part owner of the accounting firm, Williams Consulting. The owners of Diamond M. Farms in Thomas County contracted the firm to perform CPA duties for the company. Flanagin acted as signatory for Diamond M Farms bank accounts and prepared payroll.
Flanagin created a fictitious business called Middle Finger Ranch and added the company name to his personal bank account. Between December 2021 and August 2022, the defendant allegedly wrote multiple checks and initiated wire transfers totaling approximately $409,710 from Diamond M. Farms to Middle Finger Ranch under the guise of being payments for farm operations.
In 2021, Flanagin hired a construction company to build him a new house. The transaction records indicate he paid the contractor from the Middle Finger Ranch bank account within days of the funds being transferred from Diamond M. Farms
The defendant made his initial court appearance before U.S. Magistrate Judge Gwynne E. Birzer of the U.S. District Court for the District of Kansas.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
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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