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4 June 2024
Marble City Resident Sentenced for Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Corey Ray Pettit, age 31, of Marble City, Oklahoma, was sentenced to 50 months’ imprisonment for illegally possessing ammunition as a prohibited person.
The charge arose from an investigation by the Sequoyah County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 14, 2023, Pettit pleaded guilty to one count of being a felon in possession of ammunition. According to investigators, on December 14, 2022, Pettit fired upon a parked vehicle, striking it twice. Ballistics technicians confirmed that a spent .25 casing recovered from the crime scene was a match to spent .25 casings retrieved from Pettit’s home. At the time of the crime, Pettit knew he had been previously convicted of a crime punishable by a term of imprisonment exceeding one year.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma presided over the sentencing hearing. Pettit will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Manly, Iowa, Man Pleads Guilty to Possession of a Firearm by a Drug UserRead the Press Release
A man who possessed a firearm as un unlawful drug user pled guilty June 3, 2024, in federal court in Sioux City.
Cory Allen More, age 33, from Manly, Iowa, was convicted of one count of possession of a firearm by a drug user.
In a plea agreement, More admitted that on October 23, 2023, his vehicle ran out of gas in Clear Lake, Iowa. A Clear Lake police officer saw More pull his vehicle over to the side of the road. The officer made contact with More while he was outside of his vehicle near the engine bay where he had just opened the hood. At that time, the officer observed 2 marijuana baggies with a green leafy substance on the ground between More’s feet and the officer’s feet. The officer seized the two baggies which were found to contain marijuana. More also had a handgun in a holster on his belt in plain view of the officer. On October 27, 2023, law enforcement executed a search warrant at More’s residence in Manly, Iowa and seized marijuana, scales, drug paraphernalia, and an additional 16 firearms and ammunition.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. More remains free on bond previously set. More faces a potential mandatory minimum sentence of 15 years’ imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Kevin C. Fletcher and was investigated by the Clear Lake Police Department, Cerro Gordo County Sheriff’s Office, Manly Police Department, Worth County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Iowa State Patrol, Cerro Gordo County Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, and United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-03006.
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Kalamazoo Man Sentenced for Possessing Firearm as Felon, Additional Gun Linked to Prior ShootingsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Bilal Rashaad McDaniel, 30, of Kalamazoo, was sentenced to 84 months in prison for being a felon in possession of a firearm.
“Gun violence is an epidemic across America and here in Michigan that inflicts immense trauma on our communities,” said U.S. Attorney Mark Totten. “My office, together with our law enforcement partners, will not relent in our efforts to hold accountable those few individuals who are driving violence in our communities. Every person, regardless of where they live, deserves to live their life, walk their neighborhood, and play in the park free from the fear of gunfire.”
McDaniel was arrested in October 2023, after officers found two handguns, various ammunition, and narcotics while executing a search warrant inside McDaniel’s home and car. One handgun had an extended magazine attached and had previously been transported across the state line. The other firearm was a crime gun linked to two prior shootings and one homicide, which all occurred in the summer of 2023. The homicide is the subject of an ongoing criminal investigation. A crime gun is any gun previously fired in the commission of a crime. On account of this connection to a previous crime, these guns are often passed around inside and outside of groups. As recently announced, the U.S. Attorney’s Office is running a summer program with other law enforcement partners focused on firearms offenders who carry crime guns.
“Removing violent offenders from our communities is ATF’s highest priority,” said ATF Special Agent in Charge James Deir. “We are proud of our long-standing partnerships in the law enforcement community expanding efforts to disrupt and dismantle these violent criminals.”
This case was prosecuted by United States Attorney LaToyia Carpenter and investigated by the Kalamazoo Valley Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted in federal court today of illegally possessing a firearm.
Terrell M. Simpson, 42, was found guilty at trial of being a felon in possession of a firearm.
On May 11, 2020, Kansas City police officers pulled over a vehicle in which Simpson, who had active arrest warrants, was a passenger. After Simpson was ordered to get out of the car and was placed under arrest, officers searched the vehicle because they had seen Simpson moving around as if he was trying to hide something.
Officers found a loaded Smith & Wesson 9mm semi-automatic handgun inside the driver’s purse, which was sitting on the passenger’s side floorboard of the car. The driver denied any knowledge of the handgun. A forensic examination indicated that Simpson’s DNA was located on the handgun. The FBI Crime Laboratory analyzed DNA swabs taken from the trigger and trigger guard and determined there was very strong support that the defendant was the major contributor of the DNA. The lab provided a statistical analysis that the genetic information is 3.9 septillion times more likely to be observed if the defendant and three unknown individuals are the contributors than if it were four unknown individuals that are the contributors.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Simpson has two prior felony convictions for drug trafficking and prior felony convictions for possession of a controlled substance and unlawful use of a weapon. Additionally, Simpson has prior convictions for domestic assault in the second-degree and armed criminal action.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately two hours before returning the guilty verdict to U.S. Chief District Judge Beth Phillips, ending a trial that began Monday, June 3.
Under federal statutes, Simpson is subject to a sentence of up to 10 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 Assistant U.S. Attorneys Stefan C. Hughes and Stephanie Bradshaw. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Iowa Surgical Center Agrees to Pay $125,000 to Resolve Allegations It Violated the Controlled Substances ActRead the Press Release
First Choice Surgical Center, an ambulatory surgical center located in Cedar Rapids, Iowa, has agreed to pay $125,000 to the United States to resolve allegations that it violated civil provisions of the Controlled Substances Act.
First Choice Surgical Center is the surgical center affiliated with Fox Eye Laser & Cosmetic Institute, P.C., a practice performing laser vision correction and cataract surgery. The settlement resolves allegations that First Choice failed to maintain complete and accurate records concerning the controlled substances it purchased and dispensed and failed to provide effective controls and procedures to guard against theft and diversion of controlled substances.
In August 2019, other employees of First Choice discovered that Sabrina Thalblum, a registered nurse at First Choice, had been tampering with vials of fentanyl. The fentanyl was kept at First Choice for patient use during out-patient surgical procedures. A criminal investigation revealed that Thalblum stole the fentanyl for her own use. Thalblum withdrew fentanyl from the vials, reinjected saline into the vials, and returned the vials, which now contained less than declared values of fentanyl, to storage at First Choice. In January 2021, Thalblum pled guilty in federal court in Cedar Rapids, Iowa, to charges related to the theft and, in January 2022, was sentenced to five years-probation.
A related civil investigation identified at least 130 separate occasions in which the record-keeping requirements of the Controlled Substances Act were allegedly violated by First Choice. The DEA’s investigation found that First Choice employees “batch signed” records indicating they had witnessed the wasting of fentanyl remaining after surgery when it was not First Choice’s practice to ensure those employees had witnessed the wasting. Additionally, First Choice failed to make a timely report to DEA after it learned of the fentanyl theft.
With the passage of the Controlled Substances Act, Congress took steps to create “a closed system” of distribution of controlled substances in which every facet of the handling of the substances – from their manufacture to their consumption by the ultimate user – is subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances, while still ensuring that an adequate supply of those substances meet the medical and scientific needs of the United States.
“This settlement highlights one part of our office’s efforts to battle the opioid crisis,” said Timothy T. Duax, United States Attorney for the Northern District of Iowa. “Healthcare providers must do their part to ensure the safety of our community by maintaining accurate records and safeguarding access to dangerous controlled substances.”
“The DEA works vigilantly to make sure hospitals are enforcing the rules and regulations that ensure patient safety,” DEA Omaha Division Special Agent in Charge Steven T. Bell said. “Lives are unnecessarily put at risk when accuracy and good record keeping habits are brushed aside. These rules are in place for a reason and should provide families with peace of mind that they are receiving the best care possible when they walk in the door of any hospital in the United States.”
The claims asserted against First Choice are allegations only; there was no determination of liability.
The case was handled by Assistant United States Attorney Brandon J. Gray and was investigated by the Drug Enforcement Administration’s Office of Diversion Control.
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Harrison County Man Admits to Methamphetamine ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Todd Eugene Haynes, 48, of Clarksburg, West Virginia, pled guilty today to the distribution of 50 grams or more of methamphetamine.
According to court documents, Haynes sold more than 50 grams of methamphetamine in Clarksburg in September 2022.
Haynes faces at least 10 years and up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Greenville Man Sentenced to 7 Years in Federal Prison for Threatening JudgeRead the Press Release
GREENVILLE, S.C. — Alvin Bernard Parks, 44, of Greenville, was sentenced to seven years in federal prison after pleading guilty to threatening a federal judge.
According to court documents, Parks sent a letter to a specifically-named United States District Court Judge for the District of South Carolina. The handwritten letter contained threats to harm the judge. An excerpt from the letter reads: “I have watched you leave the courthouse numerous times and plotted to get my revenge.” The letter goes on to say, “you best to make sure they lock me away for good cause I’m going to kill you or blow that courthouse up.” The return address on the letter was listed as Alvin Parks with the address to the Greenville County Detention Center, where Parks was detained.
“Threats like this endanger our justice system,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “We remain committed to prosecuting illegal threats against public officials to ensure that such officials can do their jobs free from intimidation.”
United States District Judge Donald C. Coggins, Jr. sentenced Parks to 84 months' imprisonment, to be followed by a term of court-ordered supervision. There is no parole in the federal system. Parks pled guilty in February.
This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Max Cauthen is prosecuting the case.
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Founder and Former CEO of Sustainable Fuel Company Sentenced for Multimillion-Dollar Embezzlement and Investor Fraud SchemeRead the Press Release
The founder and former CEO of a sustainable fuel company was sentenced today to three years in prison in connection with a scheme to embezzle at least $5.9 million and to defraud several investors out of approximately $15 million.
According to court documents, between 2021 and 2022, Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board. Sherbacow used embezzled funds to pay for, among other things, a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction operator, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, electronics, and a down payment on a condo.
To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. For example, Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to Sherbacow’s unauthorized transfer of funds. Sherbacow also caused a balance sheet containing false and misleading financial information to be sent to another investor. In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million. Sherbacow also misled an individual who loaned funds to the company regarding the company’s financial state.
Sherbacow pleaded guilty on Feb. 8 to wire fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Assistant Director in Charge David Sundberg of the FBI Washington Field Office; and Director Kelly Mayo of the Defense Criminal Investigative Service (DCIS) made the announcement.
The FBI Washington Field Office and DCIS Charleston Resident Agency investigated the case.
Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section prosecuted the case.
Former Scranton Police Officer and Police Union President Sentenced to Imprisonment for Federal Program Fraud in Connection with Overtime Patrol Shifts at Scranton Area Housing ComplexesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Paul Helring, age 48, a former Scranton police officer and the former elected police union president, was sentenced on June 4, 2024, by United States District Court Judge Robert D. Mariani to 6 months’ imprisonment and a 2-year term of supervised release for the offense of Theft Concerning Programs Receiving Federal Funds.
According to the United States Attorney’s Office, from approximately March 2021 to May 2022, while serving as the coordinator of Scranton Police Department’s extra duty overtime program, Helring knowingly obtained by fraud over $5,000.00 in compensation that was paid to him for certain extra duty patrol shifts at local, Scranton-area, lower-income housing complexes that Helring claimed to work but did not in fact work. In all, the investigation found a total of 526 hours that Helring claimed to work patrolling the complexes but that he did not actually work. At his sentencing, Helring was ordered to pay restitution in the amount of $17,831.40 and to pay a fine of $5000.00. He was also ordered to complete 100 hours of community service as a condition of his supervised release.
This case was investigated by the Federal Bureau of Investigation’s Public Corruption Task Force with assistance from the Office of Inspector General within the U.S. Department of Housing and Urban Development. Assistant United States Attorneys Jeffery St John and Phillip J. Caraballo prosecuted the case.
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Former Rochester couple arrested, charged with defrauding VA out of hundreds of thousands of dollarsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael Joyce, 52, and his wife Sarah Shultis, 32, both formerly of Rochester, NY, now living in New Jersey, were arrested and charged by criminal complaint with theft of government funds, making false statements, wire fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Nicholas M. Testani, who is handling the case, stated that according to the complaint, in April 2016, defendant Joyce submitted claims for disability compensation to the Department of Veterans Affairs for Post-Traumatic Stress Disorder (PTSD), an issue with his left hand, asthma, anxiety disorder, major depressive disorder, panic disorder, sleep apnea, GER, hypertension, tinnitus, gout, an unidentified left knee issue, an unidentified left ankle issue, an unidentified right ankle issue, Traumatic Brain Injury (TBI), and unidentified cardiac issues. Following multiple consultations and examinations for various issues, Joyce was awarded a 100% disability rating for reported PTSD in December 2016. In February 2018, Joyce applied for a status of permanent and total disability (PTD), which removes an individual’s obligation to continue getting re-evaluated for various disabilities, and makes them eligible for other veteran benefits. In his Statement in Support of Claim, Joyce asserted, “Every disability that I have either is the same but will not get better or has gotten worse.” He stated that his PTSD has not improved, that he is more housebound, and feels that he will die if he goes outside. Joyce was subsequently granted a PTD status in April 2018.
In July 2019, Joyce submitted a Declaration of Status of Dependents, listing himself as married and living with his wife and seven additional dependent children, raising his payment for a 100% disabled veteran from $3,171.12 per month, to $3,860.55 per month. Joyce continues to receive VA disability compensation and special monthly compensation in the amount of $4,737.42 per month. He has received over $393,158.14 in payments from VA as of March 2024. In November 2017, Joyce and Shultis applied for Shultis, as Joyce’s purposed caregiver, to receive payments through the VA Caregiver Support Program (CSP), claiming that Joyce is wholly reliant on Shultis for multiple life tasks, including feeding, bathing, and dressing. Shultis was approved and received a retroactive payment of $8,345.82, and began to receive $2,890.14 per month for the care of Joyce. As of March 2024, Shultis has received over $213,000.
A review of Joyce’s Army personnel file and during interviews with former members of Joyce’s unit, investigators found multiple inconsistencies in Joyce’s claims. Unit members described Joyce as competent, intelligent, and physically fit, someone who remodeled multiple bathrooms and repaired a roof, and was never deployed to a combat zone. Subsequent investigation and surveillance documented, on multiple occasions, Joyce walking with no apparent difficulty or assistance, driving a motor vehicle, and performing household maintenance tasks, including climbing a ladder and snow shoveling.
The complaint is the result of an investigation by the Social Security Administration Office of Inspector General, under the direction of Acting Special Agent-in-Charge Bradley Parker, and the Department of Veterans Affairs Office of Inspector, under the direction of Special Agent-in-Charge Christopher F. Algieri, Northeast Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Foreign National Accused of Drug Crimes, Including Attempting to Distribute 10,000 Fentanyl Pills in UtahRead the Press Release
Salt Lake City, Utah – A foreign national living in Utah appeared in court Monday after he was indicted May 29, 2024, by a federal grand jury in Salt Lake City for multiple federal drug crimes involving methamphetamine and 10,000 fentanyl pills.
According to court documents, Francisco Javier Quintero-Obeso, 21, of Magna, Utah, became part of a criminal investigation in December 2023 by the FBI Wasatch Metro Drug Task Force for allegedly intending to distribute large quantities of narcotics into Utah. During the investigation, agents seized approximately 3,758.58 grams (package weight) of a field-tested positive methamphetamine mixture; approximately 1,072.81 grams (package weight) of a field-tested positive fentanyl mixture – which is estimated to be 10,000 pills; and $9,420 at Quintero-Obeso’s residence. As a result, he was arrested.
Quintero-Obeso is charged with possession of methamphetamine with intent to distribute, and possession of fentanyl with intent to distribute. A three day jury trial is scheduled for August 5, 2024, at 8:30 a.m. in courtroom 3.1 at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by the FBI Wasatch Metro Drug Task Force.
Assistant United States Attorney Bryant L. Watson of the U.S. Attorney’s Office for the District of Utah 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 and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fernandina Beach Man Sentenced to 10 Years in Federal Prison for Attempting to Entice an 11-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced William Rand Paige, Jr. (50, Fernandina Beach) to 10 years in federal prison for attempting to entice a 11-year-old child to engage in sexual activity. Paige was also ordered to serve a 10-year term of supervised release and to register as a sex offender. Paige was arrested on December 18, 2023, and has been detained since that time. Paige entered a guilty plea on February 13, 2024.
According to court documents, on November 29, 2023, an undercover FBI agent in Jacksonville was conducting an online undercover operation to identify individuals who were seeking to meet and engage in sexual activity with children. Posing as a person with access to an 11-year-old child, the undercover agent was online in a social messaging app when he was contacted by an individual using the app user name “ah..904,” subsequently identified as Paige. After learning the age of the “child,” Paige asked the agent if he and the “child” would “like her to be touched all over.” In a series of online conversations on this app and emails from November 29 through December 11, 2023, Paige discussed in graphic detail his desire to meet the “child” and engage in sexual activity with “her.” When his account on the app was banned by the administrator, Paige later established a different account on the same app and used it to continue communicating with the agent. On December 4 and again on December 11, 2023, Paige sent the undercover agent three videos depicting young children being sexually abused.
On December 18, 2023, FBI agents executed a search warrant at Paige’s residence and arrested Paige. During an interview, Paige admitted that he had been on the app talking with “a guy” about meeting and “touching” an 11-year-old child. A review of Paige’s cellphone revealed it contained at least one photo and one video depicting the sexual abuse of a child, as well as the same email account used by Paige to communicate with the undercover agent about meeting the “child” for sex.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Felon Who Fled Police Found Guilty of Meth OffenseRead the Press Release
A man who fled from law enforcement while possessing methamphetamine pled guilty May 31, 2024, in federal court in Sioux City.
Chad Hughes, 40, from Sioux City, Iowa, was convicted of possession of methamphetamine with intent to distribute. Hughes was previously convicted of a federal firearms offense in 2005.
At the plea hearing, Hughes admitted possessing almost ½ pound of methamphetamine which he intended to distribute to others in Sioux City. Evidence showed that on June 24, 2023, law enforcement attempted to stop the motorcycle Hughes was operating. Hughes fled from law enforcement with high-speed pursuits overlapping in cities of Sioux City, Iowa and North Sioux City, South Dakota during which Hughes ditched the motorcycle and a backpack to avoid apprehension. Law enforcement seized the backpack which contained methamphetamine, drug paraphernalia, and other items (one shoe, lottery tickets, etc.) which aided in the ultimate identification of Hughes.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Hughes remains in custody of the United States Marshal pending sentencing. Hughes faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa State Patrol, North Sioux City, South Dakota, Police Department, and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4053. Follow us on Twitter @USAO_NDIA.
Ex-Husband of ‘Real Housewives of New Jersey’ Star Convicted of Violent Crime in Aid of Racketeering and Obstruction of JusticeRead the Press Release
NEWARK, N.J. The ex-husband of one of the stars of the Bravo television show “The Real Housewives of New Jersey,” was convicted today on charges of planning an assault of his ex-wife’s current husband in exchange for a lavish wedding reception, U.S. Attorney Philip R. Sellinger announced.
Thomas Manzo, 59, of Franklin Lakes, New Jersey, was convicted after a two and a half week trial before U.S. District Judge Susan D. Wigenton in Newark federal court on one count of committing a violent crime in aid of racketeering activity, one count of conspiracy to commit a violent crime in aid of racketeering resulting in serious bodily injury, and one count of falsifying and concealing documents related to a federal investigation.
“Thomas Manzo hired a soldier in the Lucchese Crime Family to carry out a vicious assault on his ex-wife’s then-boyfriend, causing the victim to suffer significant injuries,” U.S. Attorney Philip R. Sellinger said. “As a unanimous jury found, Manzo committed multiple offenses by providing a free wedding in exchange for the assault and then concealing documents relating to that wedding. He will now face just punishment for his crimes.”
“Manzo now faces a lengthy federal prison sentence because he chose to hire a ‘made man’ to carry out an assault on his ex-wife’s boyfriend,” FBI – Newark Special Agent in Charge James E. Dennehy said. “He then gave away a free wedding and hid the documents to cover it up. The facts and circumstances in this case read like something from a bad TV crime drama, but the evidence and testimony presented in court prove it was reality. We truly hope the victims in this investigation are able to move on with their lives and forget about Manzo and his criminal mafia bedfellows.”
According to documents filed in this case and the evidence at trial:
In the spring of 2015, Manzo hired Lucchese Crime Family soldier John Perna to assault his ex-wife’s then-boyfriend in exchange for a free wedding reception for Perna held at an upscale venue Manzo owned. Perna, who is a “made man” in the Lucchese Crime Family with his own crew, worked with his associates to plan and carry out the violent assault, which took place on July 18, 2015. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s venue for free. During the investigation of the assault, Manzo concealed and falsified documents related to the Perna wedding in response to a grand jury subpoena.
The violent crime in aid of racketeering activity count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The conspiracy to commit violent crime in aid of racketeering carries a maximum potential penalty of three years in prison, and the falsifying and concealing records related to a federal investigation charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for October 15, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges and arrest. He also thanked special agents of the U.S. Department of Labor, Office of the Inspector General, officers of the Lyndhurst Police Department, officers of the Totowa Police Department, investigators of the Monmouth County Prosecutors Office, investigators of the New Jersey State Police, and the Passaic County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Dothan Man Sentenced to over 15 Years in Prison Following Federal Drug and Firearm ConvictionsRead the Press Release
Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced that a federal judge sentenced 36-year-old Jamere Deshun Dowdy, a resident of Dothan, Alabama, to 188 months in prison. Dowdy’s sentence follows his entering a guilty plea for possessing a controlled substance with intent to distribute and being a felon in possession of a firearm. In addition, the judge ordered that Dowdy serve three years of supervised release following his prison term. Federal inmates are not eligible for parole.
According to his plea agreement and other court records, on August 5, 2021, law enforcement attempted to stop a vehicle after observing a traffic violation. The driver, later identified as Dowdy, refused to stop. A pursuit ensued and ended when Dowdy’s vehicle became inoperable. Law enforcement searched the vehicle and found marijuana and a handgun. Dowdy has multiple felony convictions and is prohibited by federal law from possessing a firearm or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dothan Police Department investigated this case, which Assistant United States Attorney Justin L. Jones prosecuted.
District Man Pleads Guilty to Fentanyl Conspiracy that Distributed Hundreds of Thousands of Doses in the DistrictRead the Press Release
WASHINGTON – Columbian Thomas, 26, of Washington D.C., pleaded guilty to participating in a wide-spread narcotics trafficking conspiracy that distributed hundreds of thousands of fentanyl-laced counterfeit oxycodone pills purchased in Southern California to destinations throughout the United States, including the District of Columbia.
The plea was announced by U.S. Attorney Matthew M. Graves, DEA Special Agent in Charge Jarod Forget of the DEA Washington Division, Acting Inspector in Charge Ajay Lall of the US Postal Inspection Service Washington Division, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Thomas, aka “Cruddy Murda,” pleaded guilty on May 30 to a charge of conspiring to distribute 400 grams or more of fentanyl. U.S. District Judge Colleen Kollar-Kotelly scheduled sentencing for October 22, 2024.
According to the statement of offense in support of the plea agreement, Thomas entered into the conspiracy after he was introduced to a Los Angeles-based drug trafficker, who was a distributor of fentanyl-laced counterfeit oxycodone pills. Thomas would travel to Southern California to purchase the fake oxycodone pills from the L.A. supplier and return to the District with the drugs.
Thomas and his co-conspirators employed two primary methods to transport the fentanyl-laced counterfeit oxycodone pills to the District: they smuggled the pills concealed in luggage or carry-on items on commercial airline flights, or they shipped the pills using commercial mail carriers.
On June 2, 2023, the date of his arrest, law enforcement found Thomas in the bedroom of his home and recovered a baggie containing about 100 blue M-30 fentanyl-laced counterfeit oxycodone pills, along with a loaded Glock 21 Gen4 pistol that had been equipped with a “giggle switch” that converted the handgun in a fully automatic machine gun.
The investigation was launched by the DEA after a young woman in Washington, D.C., Diamond Lynch, took one pill and died almost immediately. Twenty-eight defendants have been charged to date as a result of the investigation, and law enforcement have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
By statute, Thomas is eligible for a prison sentence of up to life in prison, with a mandatory minimum sentence of ten years imprisonment to be imposed. A federal judge will determine the sentence based on guidelines established by Congress.
The investigation was conducted by the DEA Washington Division and the US Postal Inspection Service, in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, and the District of Maryland.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie of the Violence Reduction and Trafficking Offenses (VRTO) Section. Valuable assistance was provided by former Assistant U.S. Attorney Andy T. Wang.
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Discord User Who “Catfished” Young Victims Is Sentenced to 21 Years in Prison for Production of Child PornographyRead the Press Release
CHARLOTTE, N.C. B Aaron Joseph Wehrstein, 25, of Columbus, N.C., was sentenced yesterday to 21 years in prison for production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Wehrstein was also ordered to pay a $5,000 special assessment, to serve a lifetime of supervised release, to pay restitution to the victims of his offense, and to register as a sex offender after he is released from prison.
Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Timothy Wright of the Polk County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, law enforcement received a tip from the National Center for Missing and Exploited Children (NCMEC) alerting them that an individual with the screenname JessicaLovesYou#1816 was using Discord to distribute child pornography. Discord is a popular free application that allows users to communicate with each other via voice and video calls and text messaging, and to share media files through private chats or communities.
Court records show that law enforcement initiated an investigation and determined that the Discord user was Wehrstein. The investigation further revealed that Wehrstein would “catfish” minor males via Discord by posing as a female and would send the unsuspecting minors sexually explicit images of females, claiming to the person in those images. Wehrstein would then induce the minor victims to reciprocate by creating and sending him sexually explicit images and videos of themselves.
In September 2021, law enforcement executed a search warrant at Wehrstein’s residence, seizing several electronic devices. A forensic analysis of those devices revealed that, in addition to using Discord, Wehrstein also used Twitter to communicate with minors and to receive child pornography created by the victims. In total, Wehrstein possessed more than 4,197 images and videos of child pornography. The investigation further determined that Wehrstein had induced at least eight male victims, between the ages of 12 and 17, to produce and send him child pornography via Discord and Twitter.
“Wehrstein is an online predator who used a catfishing scheme to prey upon innocent victims, causing them significant emotional distress and mental anguish,” said U.S. Attorney King. “My office and our law enforcement partners are committed to protecting vulnerable young people from predators like Wehrstein and seeking justice for victims harmed by this deplorable criminal conduct.”
“Homeland Security Investigations aggressively pursues child predators, and cases involving child sex abuse material. Now Wehrstein will be held accountable for his predatory and reprehensible behavior,” said Special Agent in Charge Morant. “Today we are once again reminded of the need for constant online vigilance to protect the most vulnerable among us.”
On March 29, 2024, Wehrstein pleaded guilty to using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Wehrstein will remain in federal custody until he is transferred to the custody of the federal Bureau of Prisons.
U.S. Attorney King thanked the HSI and the Polk County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Convicted Felon Charged with Illegal Firearms PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury indicted a convicted felon for illegally possessing firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
A four-count indictment filed in U.S. District Court charges Kelvontae Rashad Wallace, 25, of Talladega, with possession of a machinegun, possession of an unregistered firearm, and two counts of being a felon in possession of a firearm.
According to the indictment, in January 2024, Wallace illegally possessed a Century Arms 7.62x39mm pistol. Also, in December 2023, Wallace illegally possessed a Glock .45 caliber pistol with an installed “Glock switch” – a device designed to illegally convert a semiautomatic Glock pistol into a fully automatic machine gun. Wallace is prohibited from possessing a firearm because of prior felony convictions. Wallace was convicted in the Circuit Court of Talladega County, in July 2022, of the offense of Discharging a Gun into an Occupied Building and Assault, Second Degree.
ATF investigated the case, along with the USMS Gulf Coast Regional Fugitive Task Force, Pell City Police Department, Talladega Police Department, Anniston Police Department, and 7th Judicial Major Crimes Unit. Assistant U.S. Attorney Kristy M. Peoples is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Arrested for Smuggling Machinegun Conversion Devices into the United States and Possession of Firearms, Ammunition, and SilencerRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Phillip Michael Valeriani (41, Plant City) with smuggling machinegun conversion devices into the United States, possession of firearms and ammunition as a convicted felon, and possession of unregistered machineguns and a silencer. If convicted, Valeriani faces up to 20 years in federal prison for smuggling machinegun conversion devices, up to 15 years for possession of a firearm as a convicted felon, and up to 10 years’ imprisonment for possession of an unregistered machinegun and silencer.
According to the complaint, in April 2024, U.S. Customs and Border Protection seized a suspicious package shipped from Shenzhen, China and destined for a residence in Plant City. The package contained 63 machinegun conversion devices, commonly referred to as “Glock switches.” A Glock switch is an illegal conversion device that converts a semi-automatic pistol into a fully automatic weapon. Under the National Firearms Act, a Glock switch is classified as a machinegun.
(Pictured below: Glock Switches)
After confirming Valeriani was the intended recipient of the package containing the 63 Glock switch parts, law enforcement conducted a search warrant at Valeriani’s residence. During the search, law enforcement seized firearms, including a pistol with a foldable stock and Glock switch, ammunition, a silencer, narcotics, a tactical vest with ballistic plates, and FBI and DEA raid jackets.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plant City Police Department, the U.S. Postal Inspection Service, and the Tampa International Airport Police Department. It is being prosecuted by Special Assistant United States Attorney Ashley Haynes.
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.
Columbia Man Sentenced to 14 Years for Unlawful Possession of 60 Firearms and Distribution of MethamphetamineRead the Press Release
COLUMBIA, S.C. —Christopher Miles Huntington, 33, of Lugoff, was sentenced to 14 years in federal prison after pleading guilty to being a felon in possession of firearms and distribution of methamphetamine.
Evidence presented to the court showed that on multiple occasions in March through May 2023, Huntington sold 37 firearms, including stolen weapons, short-barreled rifles, and firearms with high-capacity magazines to undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Huntington also sold more than 2,400 grams of methamphetamine to undercover agents during these transactions. On June 29, 2023, Huntington was arrested with 23 additional firearms. Huntington is a felon and prohibited from possessing firearms. Huntington has prior convictions for assault and battery of a high and aggravated nature, burglary, grand theft of motor vehicle, and safecracking.
United States District Court Judge Sherri Lydon sentenced Huntington to 168 months in prison to be followed by a term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), West Columbia Police Department, Lexington County Sheriff’s Department, and Richland County Sheriff’s Department. The South Carolina Attorney General’s Office is handling the prosecution of additional defendants facing state charges related to this investigation. Assistant U.S. Attorney Elle E. Klein prosecuted the case.
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Columbia Man Sentenced to 10 Years and Ordered to Pay $35,000 for Gun ChargesRead the Press Release
COLUMBIA, S.C. —Joseph Dean Dyches, 42, of Orangeburg, was sentenced to 10 years in federal prison after pleading guilty to being a felon in possession of firearms.
Evidence presented to the court showed that on Nov. 13, 2019, Dyches sold a .45 caliber handgun and a loaded, stolen, unregistered, short-barreled shotgun to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). During the transaction, Dyches admitted to being a “five-time felon.” Approximately one week later, Dyches was pulled over by the South Carolina Highway Patrol and found to be in possession of a .40 caliber handgun, a loaded .22 caliber handgun, multiple rounds of ammunition, and methamphetamine. Dyches is a felon and prohibited from possessing firearms. Dyches has prior convictions for assault and battery of a high and aggravated nature, strong armed robbery, assault and battery 1st degree, and criminal domestic violence of a high and aggravated nature.
United States District Court Judge Mary Geiger Lewis sentenced Dyches to 120 months in prison to be followed by a term of court-ordered supervision. Dyches was also ordered to pay a $35,000 fine. There is no parole in the federal system.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Elle E. Klein.
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Clearwater Man Charged with Producing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Brett Michael Reichold (34, Clearwater) with production of child sexual abuse material. Reichold was arrested on May 28, 2024, and has been ordered detained pending trial.
According to court documents, Reichold coerced several minors to send sexually explicit photos of themselves via a mobile application in exchange for money. Reichold also went to one minor victim’s home four to five times and asked the victim to engage in sexual conduct.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Ross Roberts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clay County Man Sentenced to 10 Years in Federal Prison for Using the Internet to Distribute Videos of Young Children Being Sexually AbusedRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Carl Stephen Smith, Jr. (34, Green Cove Springs) to 10 years in federal prison for distributing child sexual abuse materials using the internet. Smith was also ordered to serve a 20-year term of supervised release, register as a sex offender, and pay $12,000 in restitution to victims. Smith was arrested on January 31, 2023, at his residence in Green Cove Springs and has been detained since that time.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a CyberTipline report in July 2022 from a popular online social media application (app) that three child sexual abuse videos had been uploaded on the app by a user named “daddysir142.” The Internet Protocol (IP) address used to upload these materials was traced to an internet service provider in Green Cove Springs, Florida.
On January 31, 2023, agents from Homeland Security Investigations (HSI), together with other law enforcement personnel, executed a federal search warrant at Smith’s residence. During an interview with law enforcement, Smith admitted that he communicated with purported minors on social media, that he used two different social media apps to search for child sexual abuse materials, and that he masturbated while viewing such materials.
During the search, HSI agents seized a cellular phone belonging to Smith. A forensic review of this device revealed that it contained at least 22 videos and 37 photos depicting minors engaging in sexually explicit conduct. The cellular phone contained online conversations between Smith and other users in which Smith distributed materials depicting the sexual abuse of young children.
On December 30, 2022, Smith messaged another user, “Well, id love to send you cp at least.” On January 6, 2023, Smith distributed a video to this same user that depicted a prepubescent child wearing an animal costume while being sexually abused by an adult male.
“This sentencing reflects the severity of this predator’s reprehensible actions and the harm inflicted upon innocent victims by possessing and distributing child sexual abuse material,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge Nicholas Ingegno. “United in purpose, the Northeast Florida INTERCEPT Task Force law enforcement partners stand in the gap to intercept and erase this vile content from existence.”
This case was investigated by the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Putnam County Sheriff’s Office, the Florida Department of Law Enforcement, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was investigated by the Northeast Florida INTERCEPT Task Force, to include Homeland Security Investigations (HSI) Jacksonville, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, and the Columbia County Sheriff’s Office.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cheektowaga man going to prison for possessing 200,000 images of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael P. Daly, 49, of Cheektowaga, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 48 months in prison, and 25 years supervised release, by U.S. District Judge Lawrence J. Vilardo. Daly was also ordered to pay $23,000 in victim-related assessments.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in June 2019, the National Center for Missing and Exploited Children (NCMEC) received a report from Microsoft Bing that one of their users uploaded an image of child pornography. Subsequent investigation traced the image to Daly. On October 22, 2020, investigators executed a search warrant at Daly’s residence in Cheektowaga, seizing a laptop computer, a flash drive, and an iPhone. A forensic search of all three items recovered over 200,000 images and 95 videos of child pornography. Some of the images include prepubescent minors and depictions of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Miraglia, the New York State Police, under the direction of Major Stanley Edwards, III, and the Cheektowaga Police Department, under the direction of Chief Brian Coons.
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Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Chidi Anthony Okafor, 26, of Charleston, pleaded guilty today to distribution of 50 grams or more of methamphetamine.
According to court documents and statements made in court, on October 31, 2022, Okafor sold approximately 338.3 grams of methamphetamine to a confidential informant in Charleston.
Okafor is scheduled to be sentenced on September 11, 2024, and faces a mandatory minimum of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a $10 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorneys Alexander A. Redmon and Ryan A. Keefe are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-75.
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Buffalo man pleads guilty to buying stolen data from Genesis MarketRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Wul Isaac Chol, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of 15 or more unauthorized access devices with intent to defraud. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that Genesis Market is an online marketplace whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin. Between June 2019, and January 2021, Chol deposited approximately $105.08 worth of bitcoin in a Genesis account that he had created. Chol used the funds he deposited in his Genesis account to purchase 21 packages of unauthorized access devices. Those packages contained, in total, approximately 778 unauthorized access devices. In addition, Chol admits that he obtained, without authorization, $25,164.00 from the New York State Department of Labor.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for September 13, 2024, before Judge Sinatra.
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Brooklyn Man Arrested for Illegal Sports Betting Scheme Involving National Basketball Association PlayerRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Long Phi Pham, also known as “Bruce,” with conspiring with others to defraud a sports betting company (Betting Company 1) by placing “under prop” bets on a National Basketball Association (NBA) player (Player 1) in NBA games on January 26, 2024 and on March 20, 2024. Pham was arrested on Monday and made his initial appearance this afternoon before United States Magistrate Judge Cheryl L. Pollak. Pham was ordered detained pending trial. Three co-conspirators charged in the scheme remain at large.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.
“Whether on the court or in the casino, every point matters. As alleged, the defendant and his co-conspirators, as well as an NBA player, participated in a brazen, illegal betting scheme that had a corrupting influence on two games and numerous bets,” stated United States Attorney Peace. “This prosecution serves as a warning that fraud and dishonesty in professional sports will not be tolerated and those who engage in this flagrant flouting of the law will be prosecuted.”
"Long Phi Pham allegedly participated in a conspiracy to defraud an online sports betting website, encouraging an NBA player to unnecessarily withdraw himself from select games in an attempt to profit from personal bets made with this advanced, insider knowledge. These alleged actions violated the prohibition of using non-public information - eliminating the risk associated with the unpredictable nature of the betting world – an unfair advantage not afforded to other bettors. There is no 'over/under' when intentionally circumventing rules for financial gain, the FBI remains vigilant in its investigations of those who engage in such fraudulent conspiracies," stated FBI Assistant Director-in-Charge Smith.
The Betting Scheme
The NBA is a professional basketball league in North America. The NBA maintains a code of conduct for all of its players which prohibits wagering in connection with NBA games.
As alleged in the complaint, Pham and his co-conspirators placed “under prop” bets on Player 1’s performance in two NBA games, knowing in advance that Player 1 planned to withdraw from those games for purported health reasons. A “prop,” or proposition bet is a wager placed on a player’s performance, rather than the outcome of the game. For example, a betting platform could offer users a wager that a player would score more (referred to as betting the “over”) or fewer (betting the “under”) points than a certain number of points designated by the betting platform for a given game.
The January 26, 2024 Game
In early 2024, Player 1 had amassed large gambling debts to certain of the co-conspirators. Player 1 was encouraged to clear those debts by withdrawing from certain games prematurely to ensure that under prop bets on Player 1’s performance were successful. On January 22, 2024, Player 1 sustained a purported eye injury during a game. He was evaluated and diagnosed with a corneal abrasion, but was not placed on the NBA injury list. Shortly before the game on January 26, 2024 (the January 26 Game) Player 1 told the defendant that he would be removing himself early from the game, claiming that he was injured. Player 1 entered the January 26 Game midway through the first quarter. After playing just four minutes and recording zero points, three rebounds and one assist, Player 1 removed himself from the game after he complained to team officials that he had reaggravated the eye injury.
Player 1’s performance in several statistical categories during the January 26 Game was under the designated amounts set by Betting Company 1 in its prop bets related to Player 1. Thus, several bettors, including co-conspirators, who wagered the “under” on prop bets related to Player 1’s performance for the January 26 Game won those bets.
For example, a relative of a co-conspirator placed a $10,000 parlay bet through Betting Company 1 on the “under” for Player 1’s three pointers, assists and steals. As a result of Player 1 removing himself from the January 26 game, the bet was successful and the relative won $85,000 (netting a profit of $75,000). Additionally, a co-conspirator placed a $7,000 parlay bet through Betting Company 1 on the “under” for Player 1’s three pointers, points, assists and rebounds. As a result of Player 1 removing himself from the January 26 Game, the bet was successful and the co-conspirator won $40,250 (netting a profit of $33,250).The March 20, 2024 Game
Prior to a game on March 20, 2024 (the March 20 Game), Pham and his co-conspirators discussed in a Telegram group chat that Player 1 would be removing himself early from the game, claiming that he felt ill. They agreed to share the profits for money won on successful under bets placed on Player 1, and that Pham would receive approximately 24% of the profits. On March 20, 2024, Pham and his co-conspirators met at a casino in Atlantic City, New Jersey, and placed several bets on Player 1. After playing just three minutes and recording zero points, three rebounds and zero assists, Player 1 removed himself from the March 20 Game, complaining he felt ill. Several bettors, including the co-conspirators, who wagered the under on prop bets related to Player 1’s performance won those bets. In total, the defendant and his co-conspirators netted over $1 million in profits.
On April 4, 2024, in a group chat between Player 1 and the conspirators, Player 1 wrote to the group that they “might just get hit w a rico,” referring to a racketeering charge, and asked if the group chat participants had “delete[d] all the stuff” from their personal cell phones.The charge in the complaint is based on allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of wire fraud, the defendant faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and General Crimes Sections. Assistant United States Attorneys Kaitlin Farrell, Benjamin L. Weintraub and David Berman are in charge of the prosecution.
The Defendant: LONG PHI PHAM (also known as “Bruce”)
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No.: 24-MJ-404
Brimhall Man Sentenced for Murder and Attempted Cover-UpRead the Press Release
ALBUQUERQUE – A Brimhall man was sentenced to 21 years in prison after pleading guilty to second-degree murder of a man whose body he later burned in an attempt to conceal the evidence.
There is no parole in the federal system.
According to court documents, on July 1, 2019, an individual brought Gilbert John, Jr. a stolen car and told him to "get rid of" a person locked in the trunk. John and the individual drove around smoking meth before stopping in a remote area using back roads.
When the victim tried to escape from the trunk, John stabbed the victim repeatedly with a machete and slammed the trunk door on him. After driving the car to a residence and leaving it for days, John later towed the car to a remote area and set it on fire with the body inside.
The charred remains were identified by medical device serial numbers, as the body was almost entirely burned.
After completing his term of imprisonment, John will be required to serve 5 years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office made the announcement today.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorneys Mark A. Probasco and Alexander F. Flores are prosecuting the case.
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Bridgeport Man Sentenced for Bank Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RONALD BOYD, 38, of Bridgeport, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 27 months of imprisonment, followed by three years of supervised release, for operating a bank fraud scheme.
According to court documents and statements made in court, between November 2021 and April 2022, Boyd and others recruited individuals (“runners”) to open bank accounts at Newtown Savings Bank. Boyd and others then used the bank accounts to conduct transactions so that the accounts appeared legitimate, known as “seasoning” the account. Boyd deposited into the runners’ accounts counterfeit checks, as well as checks that were stolen from the U.S. Mail with the original payee and amount information “washed” and altered. Boyd often obtained the illegitimate checks from other coconspirators and either provided the checks to the runners for deposit into their Newtown Savings Bank accounts, or he made the deposits himself through ATM transactions and through mobile deposits. He then withdrew money from the accounts using a runner’s debit card to make purchases and obtain cash back, or to conduct ATM and in-branch withdrawals.
Boyd has been detained since May 8, 2023, when he was arrested on unrelated state charges. On March 8, 2024, he pleaded guilty in federal court to conspiracy to commit bank fraud.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Robert S. Dearington.
Bremerton Washington, man sentenced to 3 years in prison for extensive swatting campaign targeting victims in US and CanadaRead the Press Release
Tacoma –A 21-year-old Bremerton, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison for four federal felonies stemming from his extensive illegal harassing activity known as “swatting,” announced U.S. Attorney Tessa M. Gorman. Ashton Connor Garcia pleaded in January 2024 to two counts of extortion, and two counts of threats and hoaxes regarding explosives. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “Swatting is cruel. It is uncivilized. It is the willful terrorizing of other human beings.” Judge Settle added that he saw great need to “send a message that engaging in swatting will get more than a slap on the hand.”
“This conduct is not only outrageous, it is dangerous for the victims, for first responders and for members of the public who may need emergency response but cannot get it because resources are tied up at a false report,” said U.S. Attorney Gorman. “I hope this prosecution and sentence is a wake-up call for those who think swatting is fun or entertaining. It is a federal crime with potentially fatal consequences.”
According to the plea agreement and records in the case, from early June 2022 through March 2023, Garcia used voice over internet technology and social media platforms to make false emergency calls to dispatch services while urging others watch his illegal activity via social media. In his plea agreement, Garcia admits he intended his calls to cause a large-scale deployment of special weapons and tactics (SWAT) teams, bomb squads, and other police units to the targeted locations. He made these calls with malicious intent to harass, intimidate, and retaliate against certain individuals and organizations, and to obtain items of value through extortion.
The plea agreement details 20 different false emergency reports targeting victims in California, Illinois, Kentucky, Michigan, Minnesota, New Jersey, Ohio, Pennsylvania, Colorado, Washington, and Edmonton, Alberta, Canada. Garcia gathered personal information about his victims, and then threatened some of his victims with harm, including placing swatting calls to send an armed police presence to their home. Garcia demanded money, virtual currency, credit card information, or sexually explicit photos from some of the people he threatened.
Garcia made fake reports to non-emergency police numbers claiming things such as that he and others had planted explosive devices in particular locations. He falsely accused other individuals of committing crimes, such as murder, rape, and kidnapping, and he falsely claimed that these individuals possessed dangerous weapons, such as knives, firearms, and explosive devices. Frequently, he used the same scripts claiming that his father was holding him hostage, false claims that he shot his parents, false claims that his father stabbed his mother, and false claims that his father had raped female members of the family.
The false reports tied up law enforcement resources that could have been used for actual emergencies. In some instances, law enforcement entered the victim residence with weapons drawn and detained people at the residence.
In asking for a four-year prison sentence, Assistant United States Attorney Jessica Manca described some of the people harmed by Garcia’s crimes. In her sentencing memo, she wrote, “In Edmonton, Alberta, an 8-year-old boy and his mother were woken up in the night by a team of law enforcement officers with rifles. 20 officers and 7 civilian staff members were directly involved in that law enforcement response. In New Jersey, a man was removed from his house and detained at gunpoint, and an elementary school was locked down on the first day of school. Over 19 officers responded to the area, along with several officers from a neighboring police agency. In Colorado, a family was traumatized when officers suddenly broke down their front door to rescue a woman whom they believed was bleeding to death on the floor. At least 9 police units were dispatched to that incident.”
Commander Dan Grispino from the Shaker Heights Ohio Police Department traveled to Tacoma for the sentencing to ensure Garcia was held accountable. He recalled how a 12-year-old girl, was home alone when Garcia’s false call sent armed police to her home. “To see the terrified look on her face will always be with me,” Grispino said. “Swatting is not a prank, real lives were at stake…. Mr. Garcia showed no regard for the lifelong trauma he imposed on a 12-year-old girl.”
Garcia treated the swatting calls like entertainment. He broadcasted his swatting calls via the internet platform Discord. Garcia told other Discord users that he considered himself a “cyber terrorist.”
Today in court he expressed remorse saying, “I knew what I was doing was wrong…. I just didn’t realize the trauma I was causing.”
Garcia has been detained at the Federal Detention Center at SeaTac, Washington since he violated the terms of his pretrial release last year.
The case was investigated by the FBI, with substantial assistance from numerous local law enforcement agencies throughout the United States and in Canada.
The case is being prosecuted by Assistant United States Attorney Jessica Manca.
Belgrade felon sentenced to two years in prison for illegal possession of firearmRead the Press Release
MISSOULA — A Belgrade felon who admitted illegally possessing a firearm for five years and while on state probation was sentenced today to two years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Mark John Littlefield, 49, pleaded guilty in January to prohibited person in possession of a firearm.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that Littlefield was convicted in December 2011 of felony driving under the influence in Gallatin County District Court. One of the conditions of Littlefield’s sentence was that he could not own or possess firearms. In 2020, Littlefield was explicitly informed he could not possess firearms, and he signed a form affirming his understanding of the prohibition. Littlefield illegally possessed a firearm for five years, beginning with his acquisition of a .357 pistol in 2018. For all the time from 2018 until June 2023, when probation officers found the pistol in his bedroom, Littlefield was on supervision with the Montana Department of Corrections. Once Littlefield became aware officers had located the firearm, he stated, “I’m going federal, I’m going federal.”
Assistant U.S. Attorneys Brian C. Lowney and Zeno B. Baucus prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation and Parole conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Arizona man sentenced to 10 years for role in trafficking fentanyl to AlaskaRead the Press Release
ANCHORAGE, Alaska – An Arizona man was sentenced today to 10 years in prison and three years’ supervised release for supplying hundreds of thousands of fentanyl pills to Alaska over multiple months.
According to court documents, Odarious Shaw, 25, distributed fentanyl pills to Alaska twice a week for over six months in quantities of 40-50,000 pills per shipment. In some instances, the defendant would ship as many as 500,000 pills at a time.
Law enforcement learned that Shaw would obtain pills in Arizona and instruct buyers in Alaska to send him $150 via a money transferring service to confirm the transaction. He would then provide a date when a courier would arrive on a commercial flight at the Anchorage airport with the drugs in their checked luggage. Upon arrival, the courier would deliver the pills to the buyer, pick up the cash payment for the drugs and immediately board a flight back to Arizona to deliver the money to Shaw.
On June 25, 2023, Shaw’s courier and codefendant, Corrion James, 26, arrived at the Ted Stevens International Airport in Anchorage on a flight from Phoenix, Arizona, with a package containing over 41,000 fentanyl pills. James was arrested at the airport after attempting to sell the pills to the arranged buyer. Those pills had an estimated street value of $400-600,000 in Anchorage, and as much as $4.8 million in rural Alaska.
Shaw continued to try to sell drugs in Alaska after James was arrested but was subsequently arrested in Arizona in August 2023. James pleaded guilty in February 2024 and was sentenced to over three years in prison for his role in the conspiracy.
At sentencing, Chief U.S. District Court Judge Sharon Gleason found that Shaw was a leader or organizer of the drug trafficking activity in this case and said that she hopes this sentence deters people motivated by greed from trafficking this deadly drug to Alaska.
“A single pill can destroy someone’s life and the amount of fentanyl Mr. Shaw supplied to Alaska could destroy entire communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Illegal fentanyl has absolutely no place here. My office will continue to hinder the inflow of illegal fentanyl into our state by working with our law enforcement partners to disrupt the supply and distribution of this poisonous drug.”
“During the course of this investigation, the FBI and our law enforcement partners intercepted tens of thousands of illicit fentanyl pills before reaching local Alaska communities, preventing untold violence and devastation,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “With a task force approach, the FBI and our law enforcement partners will continue to identify, disrupt, and hold accountable those who are fueling drug trafficking activities in Alaska.”
The Alaska State Troopers, Anchorage Police Department and the FBI Anchorage Field Office investigated the case as part of the FBI Safe Streets Task Force and the Alaska High-Intensity Drug Trafficking Area (HIDTA) initiative.
Assistant U.S. Attorney Christopher Schroeder prosecuted the case.
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Amtrak Employee Arrested on Charges of Lying to Federal AgentRead the Press Release
WASHINGTON – A five-count indictment, filed in U.S. District Court and unsealed today, charges Maurice Driver, 35, of Gloucester City, New Jersey, with lying to a Federal Agent. The charges were announced today by U.S. Attorney Matthew M. Graves and Special Agent in Charge Mike Waters of the Amtrak Office of Inspector General Eastern Area Field Office.
According to the indictment, Driver was employed by Amtrak and was working as a Lead Service Attendant in the café car on an Amtrak train, which departed from Washington, D.C. in the afternoon of January 3, 2024, and ended in Chicago, Illinois, in the morning of January 4, 2024. While working on that train, Driver met a passenger. Driver spoke and texted with the passenger, and Driver allowed her to use a vacant sleeper car on the train. On January 4, in Chicago, that passenger reported to Amtrak Police that Driver sexually assaulted her in a sleeper car on the train. Amtrak-OIG then initiated an investigation of the sexual assault allegations.
As the indictment alleges, on January 5, 2024, during an interview with an Amtrak-OIG Special Agent, Driver made multiple false and misleading statements about his communications and contacts with the passenger. These false and misleading statements included (1) Driver’s falsely denying his personal phone number; (2) Driver falsely denying that he gave the passenger his personal phone number; (3) Driver falsely denying that he texted with the passenger; and (4) Driver falsely denying that he showed the passenger to a sleeper car.
If convicted, the defendant faces a maximum statutory sentence of five years in prison for the charged offenses of making false statements. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. If convicted, the defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the Amtrak Office of the Inspector General’s Eastern Region. It is being prosecuted by Assistant U.S. Attorneys Rebecca G. Ross and Brian P. Kelly, of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
3 June 2024
Winter Haven Man Sentenced to 18 Years in Federal Prison for Fraud and Sexually Exploiting A 15-Year-Old GirlRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Billie Harold McDuffie, Jr. (37, Winter Haven) to 18 years in federal prison for enticement of a minor to engage in sexual activity, possession of device making equipment, possession of 15 or more unauthorized access devices, and aggravated identity theft. The court also ordered McDuffie to forfeit a cellphone, two black card encoders, and two desktop computers, which McDuffie used to commit the offenses in this case. McDuffie entered a guilty plea on February 15, 2024.
According to court documents, McDuffie met a 15-year-old child victim online and enticed her to engage in sexually explicit conversations via cellphone and social media. For five months, McDuffie repeatedly engaged in sexual contact with the child victim, even after she confirmed that she was a minor. An online tipster notified the Federal Bureau of Investigation of McDuffie’s sexual misconduct with the child.
On July 21, 2022, a search warrant was executed at McDuffie’s residence, where agents found McDuffie and the child victim. Agents returned the child to her family and arrested McDuffie.
During their search of McDuffie’s residence, agents also found evidence of fraud committed by McDuffie. Evidence included blank check paper, packets of stolen identities, multiple fraudulent debit and credit cards, fraudulent driver licenses, card encoders, and printers.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
West Covina Man Pleads Guilty to Possessing and Distributing Hundreds of Sexually Explicit Images and Videos of ChildrenRead the Press Release
LOS ANGELES – A San Gabriel Valley man pleaded guilty today to federal criminal charges for knowingly distributing, receiving, and possessing child sexual abuse material (CSAM) from his home and admitted to possessing hundreds of images and videos of sexually explicit material involving children, including infants and toddlers.
Herbert Redholtz, 74, of West Covina, pleaded guilty to five felonies: two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography. Redholtz remains free on $20,000 bond.
According to his plea agreement, from at least April 2014 to November 2014, Redholtz knowingly distributed, received, and possessed CSAM using his personal email account. Specifically, he possessed hundreds of videos and images of CSAM via this email account, which he accessed from his personal computer while at home.
Redholtz’s email account contained approximately 448 images and 109 videos depicting sexually explicit content involving children as well as 402 images and 25 videos depicting child erotica. This account also contained approximately 1,109 emails containing evidence of similar images sent to or from Redholtz’s email address.
Redholtz admitted in his plea agreement that he knew the production of such visual depictions involved minors, including victims under the age of 12 years old being used for sexual acts, including infants and toddlers.
United States District Judge Mark C. Scarsi scheduled an October 7 sentencing hearing, at which time Redholtz will face a mandatory minimum sentence of five years in federal prison for each child pornography distribution and receipt count, and a statutory maximum sentence of 20 years in federal prison for each count charged.
Redholtz was charged in Los Angeles Superior Court after his arrest in March 2021 for allegedly possessing CSAM. That charge was dismissed so the federal case against Redholtz could proceed.
Homeland Security Investigations and the United States Postal Inspection Service investigated this matter.
Assistant United States Attorneys Nisha Chandran of the Cyber and Intellectual Property Crimes Section and Amanda B. Elbogen of the Terrorism and Export Crimes Section are prosecuting this case.
U.S. Attorney’s Office, District of New Jersey, and U.S. Justice Department to Monitor Compliance with Federal Voting Rights Laws in New JerseyRead the Press Release
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NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the U.S. Justice Department announced today that they will monitor compliance with federal voting rights laws in Union County, New Jersey, for the June 4 primary election.
The Justice Department will assign federal observers to monitor the election in Union County to observe the county’s compliance with the Voting Rights Act. In 2023, a federal court approved a consent decree to resolve the department’s claims under Sections 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency in Union County. Section 203 requires that certain jurisdictions, including Union County, provide election materials and assistance in other languages, in addition to English. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive that assistance from the person of their choice, with certain limited exceptions. The consent decree authorizes federal observers to monitor election day activities in the county’s polling places.
The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities across the country. In addition, the department also deploys federal observers from the Office of Personnel Management, when authorized by federal court order.
The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey at https://www.justice.gov/usao-nj/civil-rights-enforcement or by telephone at 1-855-281-3339.
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U.S. Attorney’s Office Recognizes Medicare Fraud Prevention WeekRead the Press Release
SIOUX FALLS – United States Attorney Alison J. Ramsdell announced that Medicare Fraud Prevention Week is being observed June 3–June 9, 2024. The Department of Justice prioritizes combating health care fraud, a commitment reflected in fiscal year 2023's outcomes. Over $2.68 billion in fraud settlements and judgments were secured, with more than $1.8 billion relating specifically to the health care sector.
These recoveries replenish funds to federal programs like Medicare, Medicaid, and TRICARE, the health care program for service members and their families. Equally important is the role of federal fraud statutes enforcement and the prosecution of offenders, which serve as deterrents against fraudulent schemes. These actions not only prevent financial loss but also shield patients from unnecessary or potentially harmful medical interventions.
Join us in observing Medicare Fraud Prevention Week by visiting the U.S. Attorney’s Office for the District of South Dakota Twitter/X account @DSDNews1 to learn about ways to stop Medicare fraud from occurring.
U.S. Attorney Damian Williams Announces the Selection of Deputy U.S. Attorney and Executive Assistant U.S. AttorneyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the selection of Edward Y. Kim as Deputy U.S. Attorney and Lillian Evans as Executive Assistant U.S. Attorney, as well as the departure of Andrea Griswold, Deputy U.S. Attorney, and Neil M. Corwin, Executive Assistant U.S. Attorney.
Since February 2024, Mr. Kim has served as the Chief Counsel to the U.S. Attorney for the Southern District of New York. Mr. Kim was previously an Assistant U.S. Attorney in the Office from 2008 to 2017, serving in the Criminal Division. From 2015 to 2016, Mr. Kim was Chief of the General Crimes Unit, and from 2016 to 2017, he was Chief of the Complex Frauds and Cybercrime Unit. During his tenure, Mr. Kim twice received the Attorney General’s Distinguished Service Award. He also received the Assistant Attorney General’s Exceptional Service Award and was named a prosecutor of the year by the Federal Law Enforcement Foundation. From 2017 to 2024, Mr. Kim was a partner at Krieger Kim & Lewin LLP, a firm which he co-founded, where he represented individuals and entities in white collar criminal and regulatory matters. Mr. Kim graduated magna cum laude from Brown University in 1998 and cum laude from Harvard Law School in 2004. Upon graduation from law school, Mr. Kim served as a law clerk to the Honorable Naomi Reice Buchwald of the U.S. District Court in the Southern District of New York.
Ms. Evans joins the Office from the New York City Law Department, where she has worked since 2012. Since 2021, she has served as that office’s Director of Legal Recruitment, in which capacity she has overseen recruiting, hiring, and career counseling. Ms. Evans graduated from the University of Michigan in 2005 and from Benjamin N. Cardozo School of Law in 2011.
In making these selections, U.S. Attorney Damian Williams said: “I am pleased to appoint Ed Kim as Deputy United States Attorney. Ed’s intellect and leadership have already been invaluable to the Office, and I look forward to benefiting from his wise counsel as the newest Deputy. Lillian Evans’s impressive work in recruiting, hiring, and career counseling at the New York City Law Department makes her an ideal person to continue the uniquely important role of staffing this Office with the most talented lawyers in the country. Lillian has big shoes to fill, and I commend and thank Neil Corwin for his remarkable tenure in this Office and wish him well in retirement. Neil’s reputation for combining excellence and kindness is reflected in the many AUSAs and interns he has recruited and mentored. Lastly, I want to thank Andrea Griswold for her service to this Office. Having worked side-by-side with Andrea for nearly a decade, I know Andrea to be a relentless investigator, a talented trial lawyer, and a strategic counselor and leader with excellent judgement. Andrea is a generational talent. I will miss her dearly.”
Two Detroit Men Sentenced to Prison for Roles in Huntington Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Today, Talon Aaron McIntosh, also known as “Trey” and “T,” 28, of Detroit, Michigan, was sentenced to eight years and one month in prison, to be followed by three years of supervised release, and Mario Alonzo Pettway III, also known as “Mike,” 23, of Detroit, was sentenced to six years in prison, to be followed by three years of supervised release, each for distribution of a quantity of mixture and substance containing methamphetamine. Both men admitted to their roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Huntington area.
According to court documents and statements made in court, on February 3, 2023, McIntosh sold a half-pound of methamphetamine for $1,000 to a confidential in Huntington. McIntosh admitted to that transaction and to selling approximately 439 grams of methamphetamine to a confidential informant for $2,000 in Huntington on September 7, 2023.
On October 3, 2023, Pettway sold approximately 2 ounces of methamphetamine to a confidential informant for $200 in Nitro. Pettway admitted to that transaction and to selling a total of approximately 8 grams of fentanyl to the confidential informant in St. Albans on three occasions between April 13, 2023, and May 2, 2023. Pettway further admitted to selling approximately 29 grams of methamphetamine to the confidential informant in St. Albans on June 26, 2023.
McIntosh and Pettway admitted that they participated in the DTO from at least February 2023 through November 2023. McIntosh and Pettway also admitted that on August 14, 2023, McIntosh arranged for Pettway to distribute approximately 55 grams of methamphetamine and 3.5 grams of fentanyl to a confidential informant in Huntington.
On November 15, 2023, law enforcement officers arrested McIntosh and Pettway and executed search warrants at two residences in Nitro. McIntosh and Pettway each admitted that the DTO conspirators used the residences to store and distribute methamphetamine and fentanyl. Officers seized approximately 206 grams of methamphetamine and a Ruger LCP .380-caliber pistol and ammunition at one of the residences, and seized 11 firearms and quantities of methamphetamine, fentanyl, and ammunition at the other residence. Pettway admitted that he possessed the firearms and intended to sell the methamphetamine and fentanyl seized at the second Nitro residence.
McIntosh and Pettway are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit in Huntington and other locations within the Southern District of West Virginia.
McIntosh and Pettway are also among 21 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Springfield Man Pleads Guilty to Possessing Fentanyl and Cocaine with Intent to DistributeRead the Press Release
BOSTON – A Springfield man pleaded guilty on May 31, 2024 in federal court in Springfield to a drug offense involving fentanyl and cocaine.
Christian Caballero, 31, pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 1, 2024.
On July 31, 2023, Caballero possessed fentanyl and cocaine with the intent to distribute. At the time of his arrest, Caballero possessed 501 bags of fentanyl and 10.82 grams of cocaine.
The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, four years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Chicopee Police Chief Patrick J. Major made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.
Seventeen Southwest Virginia Co-Conspirators Face Federal Fraud Charges in Pandemic Unemployment Benefit SchemeRead the Press Release
ABINGDON, Va. – A federal grand jury in Abingdon, Virginia returned an indictment May 21, 2024 charging 17 individuals with conspiring to defraud the United States by filing fraudulent claims for pandemic unemployment benefits.
The grand jury has charged Josef Ludwig Brown, Crystal Samantha Shaw, Jonathan Scott Webb, Christopher Kirk Webb, Stephanie Amber Barton, Haleigh McKenzie Wolfe, Terrence Brooks Vilacha, Cara Camille Bailey, Jessica Dawn Lester, Brian Edward Addair, Russell Eric Stiltner, Joseph Frederick Hass, Daneil Wayne Horton, Justin Warren Meadows, Jason Dale Worley, Jeramy Blake Farmer, and Clinton Michael Altizer with conspiring to defraud the United States, fraud in connection with emergency benefits, and conspiring to commit mail fraud.
“The COVID-19 global pandemic significantly influenced the world economy and caused increased unemployment and jobless claims throughout our country,” United States Attorney Christopher R. Kavanaugh said today. “Many Virginians who lost their jobs due to the pandemic were able to endure because of the CARES Act. However, some cheated the system and diverted resources intended to help those most affected by the pandemic, and my Office remains committed to not only recovering fraudulently obtained funds, but also vigorously prosecuting those responsible.”
“Special agents from our office teamed up with our federal and local law enforcement partners and the United States Attorney to take down a conspiracy of incarcerated individuals alleged to have defrauded the unemployment insurance benefits program under the CARES Act,” said Brian D. Miller, Special Inspector General for Pandemic Recovery. “SIGPR will remain dedicated to holding accountable those who targeted pandemic recovery funds until it is disbanded in March 2025.”
“These defendants took advantage of a global pandemic that caused immense suffering across the country and exploited relief programs intended to help those in dire need. We remain committed to holding criminals accountable for their crimes,” said FBI Richmond Special Agent in Charge Stanley M. Meador. “We are proud to have worked this investigation with our law enforcement partners and the United States Attorney’s Office to bring justice to these victims.”
“Bad actors seized on the opportunity to exploit the chaos and uncertainty brought on by the pandemic and shamelessly pocketed CARE Act funds intended to support unemployed Virginians whose lives were uprooted by COVID-19,” said Attorney General Miyares. “Collaboration among local, state, and federal law enforcement agencies yield results, and I'm proud to be one step closer to justice.”
According to court documents, in March of 2020, Josef Brown, Jonathan Webb, and Crystal Shaw began their scheme to steal money intended for legitimate victims of the severely impacted Virginia economy by gathering the dates of birth, social security numbers, and other personal identification information of friends and acquaintances incarcerated at Haysi Regional Jail in Dickenson County, and then filling out pandemic unemployment claim forms for each of the ineligible inmates via the Virginia Employment Commission’s website dedicated to pandemic relief.
In all, the defendants stole $341,205 in pandemic relief to which they were not entitled.
As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20-member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.
Agencies that assisted with this investigation included the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the Federal Bureau of Investigation, the U.S. Department of Labor, and the Virginia Employment Commission.
Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant U.S. Attorney Danielle Stone are prosecuting the case for the United States.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Bernardino Man Sentenced to 15½ Years in Federal Prison for Marijuana Armed Robbery that Led to Victim’s DeathRead the Press Release
RIVERSIDE, California – A San Bernardino man who arranged a drug deal that resulted in a 21-year-old man being shot and killed was sentenced today to 186 months in federal prison.
Dillion Jones, 20, was sentenced by United States District Judge Jesus G. Bernal, who also ordered him to pay $14,342 in restitution.
Jones pleaded guilty in March 2023 to one count of conspiracy to interfere with commerce by robbery, one count of interference with commerce by robbery (Hobbs Act), one count of discharging a firearm during and in relation to a crime of violence resulting in death, one count of discharging a firearm during and in relation to a crime of violence, and one count of possessing a stolen firearm.
Previously in this case, Rontrell Brainell Shaw, 22, of San Bernardino, the robbery crew’s getaway driver, was sentenced to 14 years in federal prison and his brother, Martrell Patrick Shaw, 20, also of San Bernardino, who participated in the fatal robbery, was sentenced to 20 years in federal prison.
“This defendant’s reckless disregard for human life resulted in a senseless murder and a grieving family left behind,” said United States Attorney Martin Estrada. “We cannot accept violence on our streets. Today’s sentence sends a message that my office is committed punishing and deterring violent gun crime.”
“These violent criminals create unsafe communities with their horrific acts,” said Acting Special Agent in Charge of ATF Los Angeles Field Division Jose Medina. “ATF is dedicated to using all its federal tools and resources to make our communities safer. Our agents will continue to work alongside state and local law enforcement targeting violent career criminals while protecting our neighborhoods.”
In July 2021, Jones placed an order with the victim for one pound of marijuana. Jones placed the order knowing that neither Martrell Shaw nor Rontrell Shaw nor he had enough money to pay for it. Instead, the trio planned to rob the victim at gunpoint. Jones and Martrell Shaw brought a loaded firearm with them while Rontrell Shaw acted as their driver.
Once the victim arrived at what he thought was the drug deal location in San Bernardino County, Martrell Shaw and Jones robbed him at gunpoint. During the robbery, one of the robbers discharged the firearm twice, striking the victim in the neck and torso. Martrell Shaw and Jones then stole the marijuana and a firearm belonging to the victim, who later died from the gunshot wounds he suffered. Rontrell Shaw then picked up Martrell Shaw and Jones and fled the scene.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Bernardino Police Department investigated this case.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
Assistant United States Attorney Peter H. Dahlquist of the Riverside Branch Office prosecuted this case.
Repeat Offender Sentenced to Prison for Felony Second-Degree Theft for a Series of Package Thefts Near Adams MorganRead the Press Release
WASHINGTON –Rodrigo Miranda, 43, of Washington, D.C., was sentenced today in Superior Court to more than seven years in prison for felony second-degree theft, unlawful entry, and destruction of property stemming from events occurring between July 19, 2022, and April 4, 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
After hearing the impact of Miranda’s conduct on the community, the Court imposed 60 months for one theft conviction, 24 months for another theft conviction, and 180 days for a third theft, all to run consecutively, resulting in a total sentence of seven years plus 180 days in prison.
According to the government’s evidence, between July 19, 2022, and April 4, 2023, Miranda took packages from several locations in the Adams Morgan area. In doing so, Miranda unlawfully entered areas he was not legally allowed to be in and destroyed property to gain access. Miranda had multiple prior theft convictions and was therefore subject to the enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in prison. The government had indicted Miranda on 43-counts, and Miranda had accepted a plea agreement to resolve all his charges on March 29, 2024.
At sentencing, the Court heard several victim impact statements, including one victim who shared that “Miranda’s crimes have . . . . left [him] feeling deeply unsafe in [his] own home and neighborhood.” The Court learned that the “community has vested a good amount of time and effort into bring Mr. Miranda to justice. And it appears to have paid off, as, interestingly, once Mr. Miranda was arrested, the attempted package thefts in [the] building plummeted. It’s barely a problem at all now. His absence has brought a sense of relief to [the] community.”
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Special Assistant U.S. Attorney Connor Mulvey and Assistant U.S. Attorney Natalie Anderson.
Plymouth Man Sentenced for Submitting Multiple Fraudulent Claims for Pandemic ReliefRead the Press Release
BOSTON – A Plymouth, Mass. man was sentenced today for his involvement in a COVID-19 relief fund fraud scheme.
Ferris Brooks, 41, was sentenced by U.S. Senior District Court Judge William G. Young to three years of supervised release, with the first six months to be served in home confinement. In February 2024, Brooks pleaded guilty to theft of government property.
From April to December 2020, Brooks submitted multiple applications for government benefits, both in his own name and in the names of friends and family, that contained false information. Specifically, Brooks submitted an application for an Economic Injury Disaster Loan with the U.S. Small Business Administration in the name of a fake business. Brooks also submitted applications for Pandemic Unemployment Assistance and filed tax returns for Economic Impact Payments in the names of friends and family that contained false employment information. Brooks directed payments on the various fraudulent claims to bank accounts that he controlled and split the proceeds with his friends and family. The various fraudulent claims paid out more than $150,000 in pandemic relief funds.
Acting United States Attorney Joshua S. Levy; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Pittsburgh Woman Sentenced to 30 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carla Brown, age 45, of Pittsburgh, Pennsylvania, was sentenced on May 31, 2024, by U.S. District Court Judge Christopher C. Conner, to 30 months’ imprisonment following her conviction on the charges of conspiracy and possession with intent to distribute cocaine.
According to United States Attorney Gerard M. Karam, the charges stem from an investigation in which the Pennsylvania State Police made a traffic stop on May 14, 2020, in Lebanon County, of a vehicle in which Brown was an occupant. A subsequent search of the vehicle resulted in the seizure of approximately 350 grams of cocaine, and $5,020 in U.S. currency.
The driver of the vehicle, William Shaw, was convicted on the charges of conspiracy and possession with intent to distribute cocaine and was sentenced to 60 months’ imprisonment.
The charge against the defendant resulted from an investigation conducted by the Drug Enforcement Administration, and the Pennsylvania State Police. Assistant United States Attorney Scott R. Ford 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.
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Norman Gray, Founder and CEO of A Biomedical Company, Convicted at Trial for Defrauding Victim of Nearly $1.5 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that on May 29, 2024, a jury returned a guilty verdict against NORMAN GRAY for wire fraud in connection with a scheme to defraud a victim (“Victim-1”) of nearly $1.5 million through false promises and bogus documents. GRAY falsely represented to Victim-1 that Victim-1’s funds would be invested in GRAY’s biomedical company (the “Biomedical Company”) and in deals to support the Biomedical Company through the sale of personal protective equipment (“PPE”) during the height of the COVID-19 pandemic. In reality, Victim-1’s funds were not used by GRAY as promised, and he instead used Victim-1’s funds to, among other things, retire prior debts and purchase himself a high-end automobile and a large home in Connecticut. GRAY’s scheme to defraud Victim-1 also involved the use of fabricated documents and the wholesale invention of a fake mortgage company and a fictitious mortgage broker. GRAY was found guilty after a seven-day trial before U.S. District Judge Paul A. Engelmayer. Judge Engelmayer remanded GRAY to the custody of the U.S. Marshals Service earlier today.
U.S. Attorney Damian Williams said: “Norman Gray meticulously crafted a relationship of trust and confidence with his victim by lying about his background, the financial health of his company, and how he would invest the victim’s money. Over the course of just a few weeks in 2020, Gray induced his victim to send him nearly $1.5 million after learning that the victim had recently been awarded a substantial sum of money in a commercial arbitration. Gray’s brazen scheme involved lie after lie, which included the use of fake documents and a made-up mortgage company. Gray’s lies have finally caught up with him, and he now faces substantial time in prison.”
According to the Superseding Indictment, public filings, public court proceedings, and the evidence presented at trial:
At all relevant times, GRAY was the founder and CEO of the Biomedical Company, which is headquartered in Hamden, Connecticut. GRAY presented himself to Victim-1 and others as a billionaire scientist with a Ph.D. from MIT at the helm of a company he was personally funding that was potentially worth hundreds of millions of dollars. In reality, GRAY did not have a Ph.D., and, as of August 2020, both he and the Biomedical Company were in significant debt. In or about August 2020, GRAY induced Victim-1 to send him $250,000 as a purported investment in the Biomedical Company. Rather than purchase equity for Victim-1, GRAY used nearly all of Victim-1’s $250,000 payment to repay a loan that GRAY had taken out from a tenant in the same building where the Biomedical Company is headquartered in order to make payroll. In the ensuing weeks, GRAY extracted an additional $1,217,000 from Victim-1, representing that Victim-1’s funds would be invested in deals involving the procurement of PPE for two major universities in the tristate area. GRAY falsely represented that his prior PPE deals had turned a 40% profit within 90 days, that he already had purchase orders in hand for PPE worth nearly $8 million, and that, therefore, the risk was “virtually zero.” In reality, over the preceding months, GRAY had accumulated a vast inventory of unsellable PPE, the purported purchase orders were fake, and GRAY did not invest Victim-1’s funds in PPE. Instead, GRAY misappropriated Vicitm-1’s funds, in part, to purchase himself a nearly $1 million home, a $50,000 luxury SUV, and to pay down $200,000 of his and his family’s credit card debt.
As part of his scheme to defraud Victim-1, and as a means of dispelling Victim-1’s concern that an investment with GRAY might require Victim-1 to forego the purchase of a home, GRAY offered Victim-1 a mortgage from a purported boutique mortgage company of which he was the sole investor. GRAY directed Victim-1 to a purported mortgage broker that worked for this boutique mortgage company. In reality, both the mortgage company and the mortgage broker were completely fabricated by GRAY and did not exist. To further this aspect of the fraud on Victim-1, GRAY registered an internet domain in the name of the purported mortgage company and created an email address in the name of the invented mortgage broker contemporaneously with making his false representations to Victim-1. As GRAY’s fraud began to unravel in or about early November 2020, GRAY promised to return all of Victim-1’s money. Ultimately, GRAY never returned any money to Victim-1, and after Victim-1 asked GRAY to provide her with the purported PPE purchase orders from the two universities, she never heard from GRAY again.
As demonstrated at trial, at the outset of the scheme to defraud Victim-1, GRAY separately attempted to defraud a board member of the Biomedical Company who had introduced Victim-1 to GRAY. GRAY solicited a $150,000 loan from the board member to make the Biomedical Company’s payroll and sent the board member a fake wire transfer supposedly demonstrating that GRAY would soon receive over half a million dollars and therefore would be able to repay the board member in short order. In reality, GRAY forged the wire transfer document, and no such money actually arrived.
If you believe you are a victim of any crimes related to NORMAN GRAY, please email [email protected].
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GRAY, 68, of Hamden, Connecticut, was convicted of one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.
The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. GRAY is scheduled to be sentenced by Judge Engelmayer on September 12, 2024, at 2:30 p.m.
Mr. Williams praised the outstanding investigative work of the Special Agents of Homeland Security Investigations. Mr. Williams also thanked the New Haven Police Department, as well as law enforcement authorities in the United Kingdom and Spain and the Justice Department’s Office of International Affairs, for their assistance.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti, Vladislav Vainberg, and Jessica Greenwood are in charge of the prosecution.
New Orleans Man Sentenced for Role in Drug ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – DERRICK BRUMFIELD (“BRUMFIELD”), age 23, of New Orleans, was sentenced on May 28, 2024 by U.S. District Judge Jay C. Zainey to 45 months in prison followed by 3 years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to conspiracy to distribute and possess with intent to distribute cocaine and tapentadol, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), and 846.
According to court documents, BRUMFIELD conspired with three of his co-defendants to sell cocaine and tapentadol. On May 19, 2023, the Federal Bureau of Investigation (FBI) executed a search warrant at his co-conspirators’ residence in the Lower Ninth Ward area of New Orleans. Inside the residence, the FBI found several baggies of cocaine, seven boxes of tapentadol pills, a digital scale and other drug trafficking supplies, large amounts of cash, and five firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Jersey Man Sentenced to 10 Years in Prison for Leading One of the Largest No-Fault Insurance Frauds in New York HistoryRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRADLEY PIERRE was sentenced to 10 years in prison by U.S. District Judge Paul G. Gardephe for conspiracy to commit bribery and conspiracy to defraud the Internal Revenue Service (“IRS”) in connection with his orchestration of a $60 million fraud targeting No-Fault automobile insurance companies. PIERRE pled guilty before Judge Gardephe on December 18, 2023.
U.S. Attorney Damian Williams said: “Bradley Pierre’s deceitful orchestration of a $60 million fraud — the largest in New York’s history — targeting No-Fault automobile insurance companies exemplifies a blatant disregard for justice and fairness. Through bribery and manipulation, Pierre callously exploited the system, denying accident victims the rightful care they deserved. We commend the diligent work of the investigative team and career prosecutors whose dedication ensured accountability in this complex case.”
According to the Indictment, the plea agreement, and statements made in court:
New York and New Jersey No-Fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate and below a particular monetary threshold. Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes and the costs associated with an extended investigation of the accident.
From at least in or about 2008 through in or about 2021, PIERRE agreed with others (the “Clinic Controllers”) to unlawfully own and run medical clinics located in the New York area, including, among others, Veda Medical, Sky Medical, Sun Medical, and Rutland Medical (the “Clinics”). PIERRE knew that clinics are unable to bill insurance companies for No-Fault benefits if the medical facilities are controlled by non-physicians. PIERRE nonetheless agreed with others, including doctors, to submit bills to insurance companies falsely representing that the Clinics were owned and operated by licensed doctors and to direct doctors to lie under oath during Examinations under Oath (“EUOs”) about the ownership, control, and finances of the Clinics. PIERRE personally coached doctors to lie under oath in these EUOs.
PIERRE used his control of the Clinics for personal profit. Between 2008 and 2021, PIERRE took over $20,000,000 from the Clinics by either transferring the funds directly to bank accounts under his control or using the Clinics’ bank accounts to pay his personal finances. PIERRE also used his control of the Clinics to steer prescriptions to pharmacies in return for over a million dollars in kickbacks and to steer patients to seek legal representation from his wife’s law firm, the Law Firm of Nonna Shikh (the“Shikh Firm”). The Shikh Firm then filed lawsuits against insurance companies on these patients’ behalf. PIERRE maintained an office at the Shikh Firm and was actively involved in the legal practice as a “manager.” The Shikh Firm made millions of dollars from the scheme and transferred over $4 million of illegal proceeds to PIERRE through a “marketing” arrangement between PIERRE’s shell companies and the Shikh Firm.
PIERRE used his control of the Clinics and his managerial role at the Shikh Firm to also steer patients to seek MRIs at a medical facility over which he exercised substantial control (the “MRI Facility”). PIERRE also agreed with the purported sole owner of the MRI Facility, who was a doctor, that the doctor would falsely report injuries in MRI reports. These falsified injuries allowed the Clinics to bill insurance companies for additional, unnecessary medical services and allowed attorneys to falsely claim injuries in lawsuits against insurance companies. PIERRE and the doctor agreed that the doctor would lie to insurance companies during EUOs about PIERRE’s role in the MRI Facility.
PIERRE hid his control over several of the Clinics and the MRI Facility using phony loan arrangements. These agreements claimed that PIERRE was making non-recourse loans to the Clinics and the MRI Facility, which would only have to be paid back if insurance companies paid the medical practices’ claims. The agreements also set PIERRE’s “fee” as twice the amount loaned to the practices. However, in reality, PIERRE took almost $10,000,000 in excess of what these purported loan agreements permitted.
PIERRE further agreed to pay bribes to fill the Clinics and the MRI Facility with patients. From at least in or about 2015 up to and including 2021, PIERRE agreed with others to pay bribes to hospital employees, 911 dispatchers, and other individuals (collectively, “lead sources”) for the confidential names and numbers of motor vehicle accident victims. PIERRE agreed that others, including Anthony Rose, a/k/a “Todd Chambers,” would then call victims and lie to them to induce victims to receive medical treatment at the Clinics and legal representation from the Shikh Firm. PIERRE helped Rose expand his bribery operation to New Jersey by recommending clinics and attorneys in the state that would pay kickbacks for referrals. PIERRE also recommended that Rose open a shell company to hide the illegality of the payments, which Rose in fact did. PIERRE paid Rose over $800,000 as part of the bribery scheme.
PIERRE further recruited his own lead sources to participate in the bribery scheme. For instance, in or about 2017, PIERRE recruited Andrew Prime, knowing that Prime was bribing 911 operators and a hospital employee for confidential information. PIERRE paid Prime over $800,000 as part of the bribery scheme. PIERRE also personally recruited and bribed several of his own lead sources, including 911 operators and a source in 2019 that PIERRE codenamed the “Motherload” or “ML.”
PIERRE also agreed to bribe medical offices to send patients to the MRI Facility for MRIs. These medical offices included, among others, Epione Medical Center and Modern Brooklyn Medical. PIERRE facilitated these bribe payments through several intermediaries, including Anthony Rose, Jelani Wray, and others. PIERRE paid Jelani Wray over $800,000 in connection with these bribes.
PIERRE then engaged in tax evasion. PIERRE utilized two companies in connection with the healthcare fraud and bribery schemes: Medical Reimbursement Consultants (“MRC”) and Marketing 4 You (“M4Y”). PIERRE hid income from the IRS by concealing multiple bank accounts for MRC and using a series of check cashers for checks made out to MRC and M4Y. PIERRE also paid personal expenses from MRC and M4Y’s bank accounts but improperly reported these payments as “business expenses.” These included payments for his wedding, home renovations, jewelry, furniture, luxury clothing, travel, and gifts. In total, PIERRE underreported income, falsely reported expenses of over $4 million, and deprived the IRS of approximately $1.5 million in taxes due.
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In addition to the prison term, PIERRE, 41, of Closter, New Jersey, was sentenced to three years of supervised release. PIERRE was also ordered to forfeit a money judgment of $3,500,000 and pay $1,500,000 in restitution.
Mr. Williams praised the investigative work of the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division. Assistant U.S. Attorneys Mathew Andrews, Qais Ghafary, and Michael Lockard are in charge of the prosecution.
New Assistant United States Attorney Appointed to Serve in the District of Rhode IslandRead the Press Release
PROVIDENCE, RI – United States Attorney Zachary A. Cunha today announced the appointment and swearing-in of Rachna Vyas as an Assistant United States Attorney for the District of Rhode Island. Ms. Vyas will serve in the Office’s Civil Division, focusing on complex, white collar matters with a particular emphasis on health care fraud cases related to the opioid crisis.
Prior to joining the District of Rhode Island, Ms. Vyas served as an Associate with the law firm of Verrill Dana, LLP, where she handled health care and life science matters. Prior to that, Ms. Vyas was a Senior Associate at Choate, Hall, & Stewart, LLP, where she specialized in government enforcement and white collar matters. She is a graduate of Princeton University and the University of California, Berkeley, School of law, and served as a legal affairs intern with International Maritime Organization, London, UK, and as a judicial intern in Suffolk Superior Court, Boston.
“Rachna Vyas is an exceptionally talented lawyer whose ability and experience make her a tremendous addition to the District,” remarked U.S. Attorney Zachary A. Cunha. “She joins an exceedingly capable group of civil litigators and prosecutors who work tirelessly to pursue corporate accountability and protect Rhode Islanders, and I have every confidence that she will make a great contribution to our team.”
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Maryland Man Sentenced for His Role in a Drug Trafficking OperationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcus Deon Longus, age 44, of Hagerstown, Maryland, was sentenced today to 168 months in federal prison for his role in a conspiracy to distribute heroin, fentanyl, cocaine base, and cocaine hydrochloride.
According to the evidence established through court documents and statements made in court, Longus worked with others to distribute the drugs from a Hagerstown, Maryland appliance store named Top 3 Sources. Longus supplied a number of drug dealers in the Eastern Panhandle of West Virginia. As part of the drug enterprise, Longus traveled to New York where he picked up the drugs and transported them back to Hagerstown for redistribution.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The large scale investigation included the following agencies: FBI-Pittsburgh Division; the U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Drug Enforcement Administration; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative (which includes the West Virginia State Police, the Berkeley County Sheriff’s Department, the Jefferson County Sheriff’s Department, the Ranson Police Department, the Charles Town Police Department, and the Martinsburg City Police Department); the West Virginia State Police; Customs and Border Protection; the Hagerstown Police Department; the National Resources Police Department; FBI-New York Safe Streets Task Force; the New York City Police Department; the New Jersey State Police; the Washington County (Maryland) Drug Task Force; the Maryland State Police; the U.S. Attorney’s Office for the District of Maryland; and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
U.S. District Judge Gina M. Groh presided.