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30 May 2024
Mexican Man Charged with Illegal Re-Entry of a Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BALTAZAR GARCIA-MENDOZA, age 33, was charged on May 24, 2024, in a bill of information, with reentry of a previously removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to the bill of information, BALTAZAR GARCIA-MENDOZA reentered the United States after being previously deported on February 3, 2014.
He faces a maximum term of imprisonment of two (2) years followed by up to one (1) year of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
Member of Violent Gang Pleads Guilty to Racketeering and Drug Trafficking OffensesRead the Press Release
BOSTON – A Boston-area man pleaded guilty today to his role in Cameron Street, a violent Boston gang.
Devante Lopes, a/k/a “D-Lopes,” 30, of Boston and Quincy, pleaded guilty to conspiracy to participate in a racketeering enterprise (more commonly referred to as RICO or racketeering conspiracy); conspiracy to distribute marijuana; and possession with intent to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for Oct. 3, 2024.
According to court documents, the Cameron Street gang is a violent criminal enterprise whose members and associates are involved in a variety of criminal activities – including murders, attempted murders, armed robberies, carjackings, home invasions, human trafficking, as well as drug and firearms trafficking, among other offenses – in the Dorchester neighborhood of Boston and surrounding areas. It is alleged that Cameron Street members use violence against rival gangs and witnesses, typically with the use of firearms, to maintain and enhance their status and the overall reputation of the gang, as well as to protect the gang’s power, reputation and territory. Members engage in drug trafficking activity and distributed kilograms of cocaine, cocaine base (crack cocaine), oxycodone and marijuana throughout Massachusetts. During the investigation, 21 firearms and hundreds of rounds of ammunition were allegedly seized from 11 of the defendants.
Lopes was identified by several cooperating witnesses as a member of Cameron Street. From 2019 through 2020, Lopes regularly received large quantities of marijuana from California, for which he shipped packages containing between $40,000 to $50,000 in cash in exchange.
During a search of Lopes’ residence in April 2022, 800 grams of cocaine was seized from inside a bench by his bed. Also discovered during the search were two hidden compartments in Lopes’ apartment, including one concealed inside a shelf that contained approximately $5,000 in cash, a box of ammunition and foam cut-outs for a firearm. The second hidden compartment was found inside a mirror and contained a foam insert.The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute marijuana and possession with intent to distribute cocaine provide for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of $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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; United States Postal Inspection Service; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Narcotics & Money Laundering Unit are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 20 Years’ Imprisonment for Attempting to Engage in Sexual Activity with a MinorRead the Press Release
BENTON, Ill. – A federal judge in southern Illinois sentenced an Indiana man to 20 years’ imprisonment after he admitted to traveling across state lines with intent to engage in sexual activity with a minor.
Diego A. Montes-Roldan, 27, of Indianapolis, pleaded guilty in February to one count of travel with intent to engage in illicit sexual conduct. Following imprisonment, he will serve a lifetime term of supervised release.
“Predators are actively scouting for victims online, but quick detection by parents and strong action by law enforcement can help to safeguard children,” said U.S. Attorney Rachelle Aud Crowe. “The U.S. Attorney’s Office is proud to work with our partners to help keep children safe.”
According to court documents, Montes-Roldan’s charges stem from conversations he had via text message with two 14-year-old victims he met through social media. In separate conversations, Montes-Roldan discussed having sexual intercourse with both victims.
“The FBI prioritizes protecting our most vulnerable and, in this case, combined law enforcement efforts saved young victims from irreparable harm,” said FBI Springfield Field Office Acting Special Agent in Charge Joe Rodriguez. “This sentence puts Montes-Roldan behind bars for a significant amount of time and prevents further exploitation of innocent children.”
In October 2021, police received reports of Montes-Roldan’s conversations with one of the minors. Following an FBI investigation, he was arrested by law enforcement.
“Preying on youth is a diabolical crime and ISP is relentless when it comes to investigating predators,” said ISP Director Brendan F. Kelly. “ISP will continue to work with our law enforcement partners at all levels to identify child predators and successfully bring them to justice."
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
The FBI Springfield Field Office led the investigation, with assistance from the Illinois State Police Division of Criminal Investigation and the Porter County, Indiana, Sheriff’s Office. Assistant U.S. Attorney Casey Bloodworth prosecuted the case.
Man Sentenced to 28 Years in Prison for Child Sex Abuse Following Extradition from SpainRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Kristian Ignacio Feliz, age 24, of Connecticut, was sentenced to 28 years in federal prison for sexually exploiting a child. Feliz was indicted in March 2023, and extradited from Spain to face federal charges in November 2023. In sentencing Feliz, U.S. District Court Judge Jane Beckering emphasized the “manipulative” and violent nature of his crimes, which the Court stated will impact the victim “for the rest of her life.”
“Every child deserves to grow up safe, healthy, and free from abuse,” said U.S. Attorney Mark Totten. “In this case, a sexual predator living abroad targeted a child in Kalamazoo, traveled here to abuse her, and then left the country. Working closely with state, federal, and international partners, we made sure Feliz was hauled back to Michigan to face justice in our courts. Let today’s sentence serve as a warning that my office takes the protection of children extremely seriously.”
In October 2022, Feliz was a 23-year-old graduate student in Barcelona, Spain, studying quantum physics. He had also struck up an online relationship with a 12-year-old girl living in Kalamazoo, Michigan. Feliz told the girl that he loved her and called her “my little wife,” while at the same time repeatedly pressuring her to create and send him pornographic videos. Then, in January 2023, Feliz traveled to Kalamazoo and recorded videos of himself abusing the girl in her home over a three-day period. After he left town, Feliz instructed the girl to sell the videos online, and to have the money sent to his accounts.
“Today's sentencing is a shining example of the brilliant interagency and international coordination between the FBI's Western Michigan Violent Crime Task Force, the Kalamazoo Department of Public Safety, the U.S. Attorney's Office, and the Government of Spain,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. No matter how far away those who commit these crimes may be, we will use all of our available resources to extradite you to the U.S. to face justice.”
The U.S. Attorney’s Office worked with the FBI and the U.S. Department of Justice’s Office of International Affairs (OIA) to prepare and submit a request for Kristian Ignacio Feliz’s provisional arrest, with a plan to seek his extradition soon after. U.S. Attorney Totten and Special Agent in Charge of the FBI Michigan Cheyvoryea Gibson extend their appreciation and thanks to Spain’s Ministry of Justice, Spanish National Police, and Guardia Civil.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case is being prosecuted by Assistant U.S. Attorney Patrick Castle, and investigated by the FBI the Kalamazoo Department of Public Safety. The U.S. Department of Justice’s Office of International Affairs and the U.S. Department of State provided critical assistance in securing Feliz’s arrest and extradition.
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Lone Grove Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Danny Ray Gordon, III, age 33, of Lone Grove, Oklahoma, entered a guilty plea to illegal possession of a firearm and ammunition.
The Indictment filed on March 13, 2024, charged Gordon with one count of Felon in Possession of Firearm and Ammunition.
The charge arose from an investigation by the Carter County Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
At the plea hearing, Gordon admitted that on December 16, 2024, he was found in possession of a Colt, Model 1903, .32ACP caliber, semi-automatic pistol, and several rounds of ammunition. Gordon also admitted that at the time he possessed the firearm and ammunition, he knew he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Gordon will remain in custody of the U.S. Marshall pending sentencing.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Local man sent to prison for trying to intimidate witnessesRead the Press Release
McALLEN, Texas – A 20-year-old Mission man has been ordered to federal prison for obstructing justice by threatening communication and assault on a federal officer, announced U.S. Attorney Alamdar S. Hamdani.
Hector Reyes Jr. pleaded guilty March 18,2024.
Chief U.S. District Judge Randy Crane has now ordered him to serve 30 months in federal prison to be immediately followed by one year of supervised release.
“The Gulf Cartel is a brutal and violent organization, one that this office seeks to disrupt and dismantle,” said Hamdani. “So, there is no patience in my office when criminals, like Reyes, use the cartels to intimidate law enforcement and scare witnesses. We take such attempts seriously and will vigorously pursue those who, through such intimidation, seek to subvert our system of justice.”
At the time of his plea, Reyes admitted he had uploaded a threatening message from Commandante Siete, a high-ranking member of the Gulf Cartel to SnapChat. This message was transmitted on handheld radios the Gulf Cartel used and warned certain people to stand down while they still “had time.”
Reyes posted this message intending to intimidate individuals who were searching for his father and hoped that it would impede his arrest. He also wanted the message to intimidate those individuals intending to cooperate with the government.
Reyes also admitted that after a detention hearing for another individual, he spit at a federal officer in the courthouse parking lot. Reyes also admitted that in a jail house phone call he had bragged to his father that the agent had gotten scared, in part because of the things that were said at the detention hearing.
Drug Enforcement Administration, FBI, Homeland Security Investigations, and IRS Criminal Investigation conducted the Organized Crime and Drug Enforcement Task Force investigation with the assistance of local task force officers. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorneys Patricia Cook Profit and Ted Parran prosecuted the case.
Local Rapper Sentenced to over 14 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Mississippi – A local rapper was sentenced to 170 months in federal prison for possession with intent to distribute over 37 grams of methamphetamine.
According to court documents, Ronald Cobbs, Jr. a/k/a Lil Ron a/k/a Reverend Bankroll, 39, of Jackson, was distributing narcotics at his t-shirt business located in North Mart Plaza in Jackson.
Cobbs was indicted by a federal grand jury and pled guilty in February 2024 to possession with intent to distribute methamphetamine.
U.S. Attorney Todd Gee and Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, the Rankin County Sheriff’s Office, and Ridgeland Police Department.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
The case is the result of an extensive investigation targeting illegal drug trafficking in the Jackson, Mississippi, and surrounding areas. The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Leaders of Drug Trafficking Organization That Distributed Fentanyl Linked to Eight Overdose Deaths in the Bronx Plead GuiltyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JESUS CABRERA, a/k/a “Gee,” and MICHAEL AMAYA, a/k/a “Miz,” pled guilty to participating in a conspiracy to distribute fentanyl and fentanyl analogue, and CABRERA also pled guilty to a related firearm count. As part of the conspiracy, CABRERA and AMAYA distributed the fentanyl and fentanyl analogue that resulted in the death of Malik Rahman on August 25, 2021. CABRERA and AMAYA pled guilty today before U.S. District Judge Naomi Reice Buchwald.
U.S. Attorney Damian Williams said: “In broad daylight, Jesus Cabrera and his lieutenant, Michael Amaya, sold massive amounts of fentanyl in New York City, feeding addiction and causing untold tragedy. Their drugs were in the fatal dose that killed Malik Rahman, and glassines stamped with the defendants’ logo ‘Supreme’ were found at the scene of multiple other overdoses in the Bronx. This Office and our law enforcement partners will continue to hold accountable the dealers who peddle this poison, exploit addiction, and cause senseless death in our community.”
As alleged in the charging instruments, court filings, and statements in the public record:
CABRERA and AMAYA were the leaders of a drug trafficking organization (“DTO”) that operated principally from a block on 142nd Street between Brook Avenue and St. Ann’s Avenue in the Bronx (the “Set”), where its members sold glassines of fentanyl in bulk to dealers who then re-distributed the DTO’s product on the Set and in other areas of the Bronx. Members of the DTO also sold individual glassines to users who lined up on the Set on an almost daily basis. CABRERA was the ultimate leader of the DTO, and AMAYA worked as the second in command, managing and overseeing the DTO’s various street-level dealers, baggers, and lookouts, including the other defendants charged in this case. In the fall and winter of 2021 alone, the DTO distributed an estimated five to six kilograms of fentanyl per month.
The DTO frequently used a signature “stamp” on the glassines of fentanyl it sold. For many months, the DTO stamped its glassines with a “Supreme” logo. Starting in or around December 2021, the DTO began using an “Off White” logo and then switched to a “Thriller” logo.
Despite the DTO’s leadership’s awareness of the potential deadly impact of fentanyl, members of the DTO continued pushing the DTO’s product. For example, as early as about January 2019, CABRERA sent AMAYA a link to a news article that described law enforcement’s crackdown on heroin dealers in the Bronx who were “pushing a deadly cut of heroin . . . using a new drug known as fentanyl,” which had led to a rash of overdose deaths.
On about August 25, 2021, one of CABRERA and AMAYA’s co-defendants, Alberto Concepcion, sold a quantity of loose “Supreme”-stamped glassines to an individual on the Set, who subsequently provided one of those glassines to Rahman. Rahman died from an overdose shortly after ingesting the substances in the “Supreme”-stamped glassine, the residue of which later tested positive for, among other things, fentanyl and fentanyl analogue. Both CABRERA and AMAYA were directly involved in overseeing Concepcion’s narcotics sales at that time. Indeed, in the days leading up to Rahman’s fatal overdose, AMAYA and CABRERA exchanged text messages referencing certain quantities of narcotics that were going to Concepcion for resale on the Set.
Including Rahman’s fatal overdose, between around March 2021 and around December 2021, there were at least eight confirmed fatal overdoses in the Bronx at which the DTO’s “Supreme”-stamped glassines were found on the scene.
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JESUS CABRERA, 44, of the Bronx, New York, pled guilty to conspiracy to distribute and possess with intent to distribute 400 grams and more of fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and to using, carrying, and possessing a firearm in furtherance of the drug trafficking conspiracy, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison, which must run consecutively to any other prison term imposed.
MICHAEL AMAYA, 42, of the Bronx, New York, pled guilty to conspiracy to distribute and possess with intent to distribute 400 grams and more of fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York City Police Department and the Drug Enforcement Administration, as well as the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this matter. He also thanked the Bronx District Attorney’s Office for its assistance in the case.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Matthew J. King, Kaylan E. Lasky, and David J. Robles are in charge of the prosecution.
Lawrence Man Sentenced to More Than One Year in Prison for Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a fentanyl trafficking conspiracy.
Fredis Manuel Guerrero Guzman, 28, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor, IV to 21 months in prison to be followed by two years of supervised release. In March 2024, Guzman pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl; and aiding and abetting.
Guzman was indicted by a federal grand jury along with Melvin Antonio Perez Medina and Fraily Rodriguez Morillo in November 2022.
Between March 2022 and August 2022, Guzman, Morillo and Medina conspired to distribute and possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, in Lawrence, Woburn, Wilmington and Andover. Specifically, in March 2022, Guzman and Morillo met with a cooperating witness to negotiate future drug deals, including the price that Guzman would charge for fentanyl and cocaine. Thereafter, Guzman and Morillo distributed 50 grams of fentanyl to a cooperating witness in April 2022. In July 2022, Morillo and Perez Medina distributed an additional nearly 130 grams of fentanyl to a cooperating witness on one occasion, as well as over 560 grams of a fentanyl and fentanyl analogue mixture to cooperating witnesses on another occasion.
In August 2022, Perez Medina was arrested and found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue hidden inside of a cereal box.
On Jan. 18, 2024, Perez Medina was sentenced to 64 months in prison and three years of supervised release after previously pleading guilty to his role in the conspiracy. Morillo pleaded guilty on Feb. 12, 2024 and is scheduled to be sentenced on May 31, 2024.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Watertown, Reading, Peabody, Hudson, Concord and Waltham Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lawrence Man Indicted for Drug Conspiracy Involving 32 Kilograms of CocaineRead the Press Release
BOSTON – A Lawrence man was indicted today by a federal grand jury in Boston for his involvement in a conspiracy to distribute cocaine.
Victor Berroa Mercedes, 31, has been charged with one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of possession with intent to distribute cocaine. Berroa Mercedes will appear in federal court in Boston at a later date.
According to the charging document, on May 4, 2024, Berroa Mercedes allegedly met with a cooperating source and accepted delivery of 32 kilograms of suspected cocaine in a Woburn parking lot. During his subsequent arrest, it is alleged that Berroa Mercedes dropped a plastic bag containing $32,800 in cash while attempting to flee from officers. He was immediately apprehended.
The charges of conspiracy to distribute and possess with intent to distribute cocaine and possession with intent to distribute cocaine each provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon on 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 Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Boston Police, Massachusetts State Police and Illinois State Police. Assistant U.S. Attorney John Mulcahy is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department and State Coalition Restore Competition for College Athletes at NCAA Division I InstitutionsRead the Press Release
Today, the Justice Department filed a proposed consent decree to prohibit the National Collegiate Athletic Association (NCAA), the largest national organization regulating intercollegiate athletics, from enforcing the Transfer Eligibility Rule, from enforcing the Rule of Restitution against anyone in connection with the Transfer Eligibility Rule and from implementing rules imposing similar restrictions between Division I colleges and universities.
On Jan. 18, the Justice Department’s Antitrust Division joined a civil lawsuit under the Sherman Act against the NCAA to end the NCAA’s Transfer Eligibility Rule. The department alleged that the rule limited competition for college athletes and restricted their ability to transfer to colleges and universities that provided better educational and athletic opportunities for them. The amended complaint, filed by the Justice Department, 10 states and District of Columbia, also alleged that the NCAA’s Rule of Restitution was anticompetitive because it deterred college athletes from challenging anticompetitive rules in court.
The proposed consent decree, if approved by the court, enjoins the NCAA from enforcing the Transfer Eligibility Rule and from adopting any similar rule in the future. In order to remedy harms caused to college athletes by the Transfer Eligibility Rule, the proposed consent decree requires the NCAA to issue an additional year of eligibility to certain qualifying college athletes who were previously deemed ineligible to participate as a result of the Transfer Eligibility Rule for a season or any portion of a season.
“Free from anticompetitive rules that unfairly limit their mobility, Division I college athletes will now be able to choose the institutions that best meet their academic, personal and professional development needs,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This resolution is a testament to the benefits of federal and state enforcers working together to ensure free markets and fair competition for all Americans.”
The amended complaint alleged that the NCAA’s one-time-transfer rule unreasonably restrained competition in the markets for athletic services in men’s and women’s Division I basketball and Football Bowl Subdivision (FBS) football, as well as for athletic services in all other men’s and women’s Division I sports. The rule forced college athletes who transfer more than once to sit on the sidelines for an entire season before they were eligible to compete in NCAA athletic competitions at their new school. The amended complaint further alleged that the restriction limited college athletes’ bargaining power and harmed both their educational and athletic experiences. The NCAA’s Division II, which had a similar Transfer Eligibility Rule, has already revised its rule to remove a year-in-residence requirement for transfer students.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person should submit written comments concerning the proposed settlement within 60 days following the publication to Chief, Media, Entertainment & Communications, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 7000, Washington, D.C. 20530. At the conclusion of the public comment period, the U.S. District Court for the Northern District of West Virginia may enter the final judgment upon finding it is in the public interest.
Anyone with information about anticompetitive conduct in college sports or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].
View the complaint here.
View the consent decree here.
View the competitive impact statement here.
Johnson, Vermont Man Sentenced to 57 Months for Drug and Gun OffensesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 30, 2024, George Goins, 66, of Johnson, Vermont, was sentenced by United States District Judge William K. Sessions III to a term of 57 months’ imprisonment to be followed by a 3-year term of supervised release. Goins previously pleaded guilty to possession with intent to distribute cocaine and being a felon in possession of a firearm.
According to court records, on June 8, 2022, Goins was arrested following an investigation into a shooting that occurred outside of Goins’ apartment complex in Johnson, Vermont on June 7, 2022. In the early morning hours of June 7, 2022, the victim, who lived in the same apartment building as Goins, confronted Goins near his apartment. Goins took a handgun from his pocket, shot the victim in the neck, and fled. Law enforcement later obtained a warrant to search Goins’ apartment where they recovered a Smith & Wesson SD9 VE 9mm semi-automatic pistol. From a riverbank behind the Johnson apartment complex, investigators recovered a Smith & Wesson .40 caliber pistol. Based on the caliber and characteristics of the weapon, investigators believe that the gun found near the riverbank was used to shoot the victim. The victim was treated at a hospital for injuries and later released. Goins is prohibited from possessing firearms due to his criminal history.
On June 8, 2022, law enforcement located Goins outside of a hotel in South Burlington, Vermont. Law enforcement recovered fentanyl and cocaine base in Goins’ hotel room. Goins also had four bags of fentanyl on his person at the time of his arrest.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Lamoille County Sheriff’s Department, the Morristown Police Department, the South Burlington Police Department, and the Burlington Police Department.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Goins was represented by Federal Public Defender Michael Desautels.
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.
Jersey City Attorney Sentenced to 66 Months in Prison for Wire Fraud, Aggravated Identity Theft, and Tax CrimesRead the Press Release
NEWARK, N.J. – A Jersey City attorney was sentenced today to 66 months in prison for defrauding his clients of more than $2 million dollars and other crimes, U.S. Attorney Philip R. Sellinger announced.
James R. Lisa, 68, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of wire fraud, one count of aggravated identity theft, one count of obstructing the IRS, one count of failing to file an individual income tax return, and one count of wire fraud while on pretrial release. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.
“James Lisa used his law license to execute a multimillion-dollar fraud scheme and rip off clients who placed their trust in him. Then, after being charged for that fraud, Lisa committed another when, posing as his own lawyer, he sent a bogus letter to a lender that falsely described the status of his criminal case. Lisa’s multiple criminal acts were serious violations of his oath as an officer of the court and a betrayal of his clients’ trust. The sentence imposed today is his just punishment for these crimes.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.
Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so. When one member of the family was audited by the IRS, the IRS issued Lisa a summons for records related to the family’s assets. In response to the summons, Lisa produced false and fraudulent documents suggesting that the IRS had agreed to closing agreements with the family.
In January 2023, Lisa was arrested after being charged with this fraud scheme and placed on pretrial release. One condition of his pretrial release was that he not commit another crime. In April 2023, Lisa committed wire fraud when he applied for a $22,000 loan. In order to obtain the loan, Lisa caused the creation and submission to the lender of a fraudulent document that purported to be a letter from the attorney then representing him in his criminal prosecution. Lisa caused the letter to be sent in order to defraud the lender about the status of the criminal prosecution so that the lender would approve the loan.
Lisa also admitted that he failed to file individual income tax returns for tax years 2015 through 2022, and as a result, caused a tax loss to the IRS of at least $550,000.
In addition to the prison term, Judge Neals sentenced Lisa to three years of supervised release and ordered him to pay $2.05 million in restitution to his fraud victims and $550,000 to the IRS.
U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Irvine Man Sentenced to 6 Years in Prison for Firebombing Planned Parenthood Clinic and Plotting to Attack Electrical Substation in O.C.Read the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 72 months in federal prison for firebombing a Planned Parenthood clinic in Costa Mesa in March 2022 and planning to attack an electrical substation in Orange.
Tibet Ergul, 22, of Irvine, was sentenced by United States District Judge Cormac J. Carney, who also ordered him to pay $1,000 in restitution.
Ergul pleaded guilty on February 29 to one felony count of conspiracy to damage an energy facility and one misdemeanor count of intentional damage to a reproductive health services facility.
“This defendant’s hatred toward others led him to plotting and carrying out violence,” said United States Attorney Martin Estrada. “We will not allow bigoted intolerance to divide us. My office will continue to aggressively investigate and prosecute crimes motivated by hate in order to keep our community safe.”
“Mr. Ergul chose violence and destruction while targeting a wide array of innocent victims with whom he disagreed ideologically, putting their lives at risk,” said Amir Ehsaei, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI and our partners on the JTTF will continue to seek out violent extremists before they strike and ask anyone with information about potential attacks to contact us immediately.”
“I'm proud of the successful interagency coordination as seen in this case to prevent further acts of violence by Mr. Ergul,” said Special Agent in Charge Todd Battaglia of the NCIS Marine West Field Office. “NCIS, along with our partners, remain committed to deter domestic terrorism against our fellow Americans.”
In February and March of 2022, Ergul and Chance Brannon, 24, of San Juan Capistrano, agreed to use a Molotov cocktail to damage a Planned Parenthood clinic in Orange County. Ergul and Brannon, who at the time was an active-duty United States Marine, targeted the clinic because it provided reproductive health services and they wanted to encourage others to engage in similar violent acts. Ergul and Brannon also wanted to make a statement about abortion, scare pregnant women away from obtaining abortions, deter doctors, staff, and employees at the clinic from providing abortions, and intimidate the clinic’s patients.
On March 12, 2022, in Ergul’s garage, Ergul and Brannon knowingly assembled a Molotov cocktail. During the early morning hours of March 13, Ergul and Brannon – disguised in dark clothing, masks, hoods, and gloves – drove to a Planned Parenthood clinic in Costa Mesa, ignited the Molotov cocktail and threw it at the clinic’s entrance, intentionally starting a fire. Due to the fire and the resulting damage, the clinic was forced to temporarily close and reschedule approximately 30 patient appointments.
Ergul further admitted in his plea agreement that in June 2022, following the Supreme Court’s decision to overturn Roe v. Wade, he and Brannon planned to use a second Molotov cocktail to attack another Planned Parenthood clinic. Ergul and Brannon abandoned this plan after seeing law enforcement near the targeted clinic.
Ergul also conspired with others, including Brannon, to damage a Southern California Edison electrical substation to debilitate Orange County’s power grid. Ergul and his accomplices planned to attack the substation by using firearms or a Molotov cocktail that Ergul possessed in his garage. Ergul and Brannon consulted with an associate about surveillance, drone operations and firearms. In March 2023, Ergul messaged an associate to say he had found a substation in Orange to target. Ergul sent the associate aerial photographs of the substation and suggested doing a “drive-thru” at 3 a.m. At one point, Ergul also sent Brannon a letter in which he wrote: “The rifle is in a box in my room waiting to be used in the upcoming race war” and discussed a desire to murder politicians and journalists. Ergul and Brannon did not carry out this attack prior to their arrest in this case.
During the early summer of 2023, Ergul and Brannon also discussed and researched how to attack the Dodger Stadium parking lot or the stadium’s electrical room on a night celebrating LGBTQ pride, including by using a device that could be detonated remotely, Ergul admitted in his plea agreement. Brannon and Ergul exchanged sabotage manuals and discussed doing “dry runs” to “case” the stadium. Law enforcement arrested Ergul and Brannon two days before Dodger Stadium’s scheduled “Pride Night.”
Ergul, who has been in federal custody since June 2023, is the third and final defendant to be sentenced in this case.
Last month, Brannon was sentenced to nine years in federal prison for his role in the attack and plots. Brannon pleaded guilty in November 2023 to one count of conspiracy, one count of malicious destruction of property by fire and explosives, one count of possession of an unregistered destructive device, and one count of intentionally damaging a reproductive health services facility in violation of the Freedom of Access to Clinic Entrances Act.
On May 13, Judge Carney sentenced Xavier Batten, 21, of Brooksville, Florida, to 3½ years in federal prison for advising Ergul and Brannon on how to construct the Molotov cocktail used in the Planned Parenthood attack. Batten pleaded guilty on January 19 to one count of possession of an unregistered destructive device and one count of intentional damage to a reproductive health services facility.
The FBI’s Joint Terrorism Task Force and the Naval Criminal Investigative Service investigated this matter. The Costa Mesa Police Department and the Costa Mesa Fire Department provided substantial assistance.
Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case with substantial assistance from Justice Department Trial Attorney Jacob Warren from the National Security Division’s Counterterrorism Section.
Illinois Resident Charged with Online Crimes Aimed at ChildrenRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 29, 2024, a federal grand jury returned] an indictment alleging that Terrence E. Fabino (age: 61) of Grayslake, Illinois, engaged in the attempted sexual exploitation of a minor and attempted transfer of obscene matters to a minor in violation of Title 18, United States Code, Sections 1470 and 2251(a) and (e).
The indictment alleges that on November 20, 2023, Fabino “knowingly attempted to employ, use, persuade, induce, entice, and coerce a minor” to engage in sexually explicit conduct. It further alleges that on October 26, 2023, Fabino attempted to transfer obscene material to a minor under 16 years of age. Fabino faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment if convicted of the enticement charge. He faces up to 10 years’ imprisonment if convicted of the transfer of obscenity charge.
This case was investigated by the Manitowoc County Sheriff’s Office with the assistance of the Lake County Illinois Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Illegal Possession of Drugs and Guns and Threatening Communications Being Sent Result in Federal Prison Sentences for Three Alexandria Area MenRead the Press Release
ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced the resolution of three separate cases in the Alexandria Division of the Western District of Louisiana late yesterday. United States District Judge Dee D. Drell has sentenced the following defendants:
Kenneth Wayne Williams, Jr., 33, of Pineville, Louisiana, was sentenced to 180 months in prison, followed by 5 years of supervised release, on drug and firearms charges. Williams was arrested on May 23, 2023, after a Louisiana State Police trooper stopped his vehicle for a traffic violation. When Williams exited the vehicle, the trooper observed Williams put a plastic bag containing a crystal-like substance into his pocket. After an open-air K-9 sniff of Williams’ vehicle, the dog alerted to the presence of narcotics. A subsequent search of the vehicle led to the discovery of two bags of methamphetamine. Meanwhile, a search warrant was obtained and executed at Williams’ residence. Law enforcement agents searched Williams’ room and found more than one kilogram of methamphetamine, digital scales, over $20,000 in cash, an AK-style rifle, and a Glock 22 semi-automatic pistol. The total amount of methamphetamine seized was approximately 1,305.85 grams.
The case was investigated by the Federal Bureau of Investigation and Louisiana State Police and prosecuted by Assistant United States Attorney Robert F. Moody.
Daniel Lee Ellsworth, 33, of Alexandria, was sentenced to a total of 42 months in prison, followed by 1 year of supervised release, for possession of a firearm by a convicted felon. On November 16, 2022, Ellsworth was a passenger in a vehicle fleeing from an Alexandria Police Department officer. The vehicle was pursued by police across the City of Alexandria. Once the vehicle stopped, Ellsworth attempted to flee on foot, and was subsequently arrested. Law enforcement officers found a loaded Manual Escodin revolver on his person. Ellsworth was previously convicted in the Western District of Louisiana in 2020 of being a felon in possession of a firearm and was on supervised release at the time of his arrest. As a convicted felon, he was prohibited from possessing any firearm or ammunition. As a result of this offense, Ellsworth’s supervised probation was revoked.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Alexandria Police Department and prosecuted by Criminal Chief Allison L. Duncan.
James Gantt, 55, of Alexandria, was sentenced to 20 months in prison, followed by 3 years of supervised release, for sending threatening communications to a Social Security Administrative Law Judge. On December 15, 2022, Gantt placed a handwritten letter into an authorized depository for United States Mail matter in Alexandria. The letter written and signed by Gantt contained a threat to injure the Administrative Law Judge. Gantt pleaded guilty to the charge on February 5, 2024.
This case was investigated by the Social Security Administration and prosecuted by Assistant United States Attorney Craig R. Bordelon.
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Houston fraudster heads to prison for possessing counterfeit identities, checks and credit cardsRead the Press Release
HOUSTON – A 43-year-old man has been sentenced for possessing counterfeit or unauthorized access devices, announced U.S. Attorney Alamdar S. Hamdani.
Wade Zollinger pleaded guilty Nov. 13, 2023.
U.S. District Judge George C. Hanks Jr. has now ordered Zollinger to serve 63 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted it had a duty to issue a fair sentence on behalf of Zollinger’s victims.
At the time of the plea, Zollinger admitted to fleeing from law enforcement in a stolen vehicle. They apprehended him and located numerous counterfeit identification documents. These included credit and debit cards, personal checks belonging to others, counterfeit U.S. currency as well as counterfeit U.S. currency plates used for the manufacture of currency. They also found multiple ledgers detailing the personal identifiable information of others.
Shortly thereafter, law enforcement executed a search warrant at Zollinger’s residence and recovered additional evidence of the same type.
Secret Service conducted the investigation with the assistance of the Harris County Sheriff’s Office. Assistant U.S. Attorneys Grace Murphy and James Hu prosecuted the case.
Honduran Man Charged with Transporting AliensRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that WILFREDO GARCIA-HERNANDEZ, age 31, was charged on May 24, 2024 in a bill of information with transporting illegal aliens within the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(ii).
According to the bill of information, WILFREDO GARCIA-HERNANDEZ was encountered during a traffic stop, knowing that the passengers he was transporting were in the United States illegally. He faces a maximum term of imprisonment of five (5) years followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
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Holyoke Man Sentenced to 13 Years in Prison for Armed RobberyRead the Press Release
BOSTON – A Holyoke man was sentenced today in federal court in Springfield in connection with a string of nine armed robberies of convenience stores across Western Massachusetts.
Alfredo Aldeco, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 years in prison to be followed by three years of supervised release. Aldeco was also ordered to pay forfeiture and restitution of $7,375. In March 2024, Aldeco pleaded guilty to one count of interference with commerce by robbery, one count of using a firearm in relation to crime of violence and one count of being a felon in possession of a firearm and ammunition.
On Nov. 14, 2018 Aldeco, and co-defendant Emilio Rivera, robbed a clerk in a West Springfield convenience store at gunpoint. After forcibly taking cash and cigarettes from the clerk, Aldeco warned the clerk, “If you call the cops, I will come back and kill you.” The firearm used in the robbery was later found during a search of Rivera’s home – in a bedroom being occupied by Aldeco. At the time, Aldeco was prohibited from possessing a firearm or ammunition due to a prior felony conviction.
The November 2018 robbery was the last in a string of nine robberies that took place in Holyoke, Chicopee, Northampton, West Springfield and Agawam over the two-week period. In each of the robberies, Aldeco held store clerks at gunpoint. In total, Aldeco robbed the stores of almost $8,000 in cash.
On July 6, 2023, Rivera was sentenced to six years in prison followed by three years of supervised release.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Valuable assistance was provided by the Massachusetts State Police and the West Springfield, Holyoke, Agawam, Chicopee, Northampton and Springfield Police Departments. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, prosecuted the case.
Havre meth dealer sentenced to more than five years in prisonRead the Press Release
GREAT FALLS — A Havre man who admitted selling methamphetamine was sentenced today to five years and four months in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Stephen Eric Engelhardt, Jr., 41, pleaded guilty in December 2023 to distribution of meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged that in March 2023, members of the Montana Tri-Agency Task Force began investigating Engelhardt’s involvement in meth trafficking. On two occasions, Engelhardt and his co-defendant, Tayla Wren Overlie, sold meth in a controlled operation in April 2023. Law enforcement executed a search warrant at their residence and recovered drug paraphernalia, meth, ammunition, numerous firearms and U.S. currency. Overlie was sentenced to five years and four months in prison for her conviction in the case.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case. The Tri-Agency Task Force and the FBI 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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Hancock Man Sentenced for Assaulting FBI Special AgentRead the Press Release
BANGOR, Maine: A Hancock man was sentenced today in U.S. District Court in Bangor for assaulting a federal officer.
Chief U.S. District Judge Lance E. Walker sentenced Alan Howell Parrot, 69, to probation for two years and a $5,000 fine. A federal jury found Parrot guilty on November 29, 2023, following a one-day trial.
According to evidence presented at trial, on June 22, 2023, FBI special agents were executing a federal search warrant at Parrot’s residence in Hancock. While the agents were trying to enter the residence, Parrot attempted to close the door and became combative, kicking one agent in the abdomen and pushing her backwards, resulting in injuries to her arm and elbow.
The FBI investigated the case.
“Alan Parrot’s attack on an FBI special agent is yet another reminder of the danger law enforcement officers face on a daily basis – and the successful prosecution of Mr. Parrot should serve as a warning to all that if you assault and injure a law enforcement officer, the consequence is a felony conviction. Assaults on officers will be met with a swift response and will not be tolerated,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division.
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Hamilton man sentenced for defrauding investors of more than $700,000Read the Press Release
BILLINGS — A Hamilton man who admitted devising a years-long scheme that defrauded investors in Hamilton and Billings of more than $700,000 was sentenced today to five years of probation and ordered to pay $722,808 restitution, U.S. Attorney Jesse Laslovich said today.
The defendant, Richard William Brooks, 78, pleaded guilty in January to wire fraud.
Under the terms of a plea agreement, the government recommended a probationary sentence. The government requested an aggressive payment schedule for restitution because of Brooks’ available disposable income.
U.S District Judge Susan P. Watters presided. The court ordered Brooks to pay $722,808 restitution at the rate of $3,000 per month to two victims.
The government alleged in court documents that as far back as 2016, Brooks orchestrated a scheme to defraud individuals of significant sums of money. Contending that he fell “on hard times,” Brooks, often using third parties as intermediaries, claimed that his daughter-in-law was scheduled to receive a large inheritance but for legal and court costs that were required to release it. Brooks deceptively assured multiple victims that if they provided him with money on an expedited timeline, he would return their funds in addition to a premium of between 25 percent and 100 percent. Brooks insisted his victims pay him in cash. When pressed by his victims about non-payment or supporting documentation, Brooks demurred or lied again. He claimed that the inheritance was under seal and that he was unable to provide any documentation. Brooks’ scheme lasted for years, and, in February 2021, law enforcement interviewed Brooks. Brooks contended that he intended to pay back this money, which he never did, and that he was going to receive a settlement in connection to his exposure to Agent Orange. He claimed to have documentation to support his theory that the funds were temporary loans. When law enforcement followed up for the documentation, Brooks ended the communication and never provided any materials to support his position.
One of Brooks’ victims told the court that he lost his business of 10 years and his life savings because of Brooks’ scheme. Another victim told the court that she had been subjected to threatening phone calls, was displaced from her home and forced to sell treasured antiques to survive because of Brooks. “He did more than steal our money. He stole our peace,” the victim said.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case. The FBI conducted the investigation.
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Georgia Man Pleads to Bank Fraud Charge for Stolen Check SchemeRead the Press Release
PORTLAND, Maine: An Atlanta, Georgia man pleaded guilty today in U.S. District Court in Portland to conspiring to commit bank fraud.
According to court records, in March 2022, Rasheed Colbert, 32, and a coconspirator, Mantavious Jones, stole checks from the mailboxes of local businesses then used the stolen checks to create counterfeit checks. Unhoused individuals who could provide identification were recruited for what they were told was a job in exchange for money. Counterfeit checks were made payable to the individuals, and they were provided with work-style clothing and driven to bank branches to cash the checks. Colbert and Jones netted just under $70,000 from the cashed counterfeit checks.
Rasheed Colbert faces up to 30 years imprisonment and a maximum fine of $1 million, followed by up to five years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Mantavious Jones, 35, also of Atlanta, is currently serving 16 months in prison for his role in the scheme.
The New England Cyber Fraud Task Force and Kennebunk Police Department investigated the case with valuable assistance from the Saco and Scarborough police departments.
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Georgetown County Man Sentenced to One Year and One Day in Federal Prison for Money LaunderingRead the Press Release
FLORENCE, S.C. — William Dallis, 57, of Murrells Inlet, was sentenced to one year and one day in federal prison after pleading guilty to money laundering.
Evidence presented to the court showed that from June 2021 to April 2022, Dallis conducted financial transactions with cash he believed was obtained from transporting and harboring illegal aliens. To conceal and disguise the nature of the illegal cash, Dallis would take the cash received and deposit it into a bank account he controlled. Dallis would then write a check to the individual that had provided the cash after taking a percentage fee per transaction. The evidence presented revealed that Dallis received approximately $560,000.00 in cash from the individual.
United States District Judge Joseph Dawson, III sentenced Dallis to 12 months and one day imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. As part of his plea agreement with the Government, Dallis also forfeited approximately $75,000.00.
This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
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Gautier Man Sentenced to 16 Years in Prison for Conspiracy to Possess with Intent to Distribute over 1800 Grams of MethamphetamineRead the Press Release
Gulfport, Miss. – A Gautier man was sentenced to 192 months in federal prison for conspiracy to possess with intent to distribute over 1800 grams of methamphetamine.
Tevin Lashonfloyd Minor, 32, was sentenced in U.S. District Court in Gulfport.
According to court documents, Minor sold narcotics to buyers on three separate occasions. On July 11, 2022, Minor sold approximately 206 grams of methamphetamine at a residence in Moss Point, Mississippi. On July 26, 2022, Minor sold 446 grams of methamphetamine at a residence in Moss Point; and on October 11, 2022, Minor sold 1209 grams of methamphetamine in Pascagoula.
Minor was indicted by a federal grand jury on January 10, 2023. He pled guilty on June 22, 2023, to conspiracy to possess with intent to distribute methamphetamine.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation Safe Streets Task Force Pascagoula Resident Agency and the Mississippi Bureau of Narcotics.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor- led, intelligence driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Gangster Disciple Leader Sentenced to 35 Years in Prison for Three Shootings in 2020 and Related Firearms OffensesRead the Press Release
Earlier today, in federal court in Brooklyn, Jean Fremont, also known as “Juno” and “Bigga Twirl,” was sentenced by United States District Judge William F. Kuntz II to 35 years in prison for his participation in three shootings occurring on November 7 and 9, 2020, committed by members and associates of the No Love City (NLC) gang, a subset of the Flatbush-based Folk Nation Gangster Disciples gang (GD). Fremont was convicted by a jury in November 2022 on eight counts of a superseding indictment charging him with conspiracy to murder rival gang members in-aid-of racketeering, two counts of attempted murder in-aid-of racketeering, two counts of assault in-aid-of racketeering, one count of attempted assault in-aid-of racketeering and two counts of discharging a firearm during a crime of violence in connection with multiple shootings in Brooklyn in November 2020.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Fremont will spend decades in prison for attempting to murder individuals for the sole purpose of defending his gang’s reputation,” stated United States Attorney Peace. “Incarcerating Fremont and his co-defendants for a long period of time for their ruthless acts of violence and complete disregard for human life will serve to protect the community while sending a message of deterrence to others who foolishly seek status by choosing to join violent gangs.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office and the New York City Police Department for their assistance in the case.
As proven at trial, Fremont and his co-defendants are all members or associates of NLC. Fremont was also a leader of NLC, having served on its five-member “Steering Committee.” The November 2020 shootings, in which several individuals were injured, were committed on behalf of GD in retaliation for the theft of a gold chain and pendant from Fremont by rival gang members following the filming of a music video in Brooklyn. On November 7, 2020, a chain with a pendant featuring the letters “SPMB” that was closely associated with NLC’s leader was stolen from the defendant by gang rivals. In response, members of NLC retaliated by engaging in a series of shootings in rival gang territory. In the resulting violence, three victims were shot and survived their wounds.
Seven other members and associates of GD that were charged with Fremont have been convicted of crimes including conspiracy to commit murder, attempted murder, assault and firearms-related offenses for their conduct related to the November 2020 shootings. Lorenzo Bailey was sentenced to 34 years’ imprisonment; Quincy Battice was sentenced to 32 years’ imprisonment; Oluwagbenga Agoro was sentenced to 30 years’ imprisonment; Hans Destine was sentenced to 20 years’ imprisonment; Deryck Thompson was sentenced to 210 months’ imprisonment; Ricardo Hapburn was sentenced to 135 months’ imprisonment; and McKoy Lima was sentenced to 108 months’ imprisonment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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 government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Dana Rehnquist and Sophia Suarez are in charge of the prosecution.
The Defendant:
JEAN FREMONT (also known as “Juno” and “Bigga Twirl”)
Age: 32
Brooklyn, New YorkOther Defendants Convicted at Trial:
OLUWAGBENGA AGORO (also known as “Gee Banga”)
Age: 24
Brooklyn, New YorkLORENZO BAILEY (also known as “Renzo” and “St. Clair Bailey”)
Age: 35
Brooklyn, New YorkQUINCY BATTICE (also known as “Hush Dinero” and “George Ayala”)
Age: 35
Brooklyn, New YorkDefendants Who Pleaded Guilty
HANS DESTINE (also known as “YL Flocks”)
Age: 32
Brooklyn, New YorkRICARDO HEPBURN (also known as “Riko Floxks”)
Age: 22
Brooklyn, New YorkMCKOY LIMA (also known as “Mak”)
Age: 29
Brooklyn, New YorkDERYCK THOMPSON (also known as “Benzo,” “DBenzo” and “Kenzie”)
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-293 (S-1) (WFK)
Fraudster Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN VOLOSHIN, also known as “Josh Thomas,” 68, formerly of New Haven and Woodbridge, pleaded guilty today in Hartford federal court to fraud and identity theft offenses.
According to court documents and statements made in court, in May 2012, Voloshin was sentenced in Hartford federal court to 33 months of imprisonment and three years of supervised release for operating multiple fraud schemes that caused losses of more than $1.5 million to individuals and lenders. He was released from prison in May 2014. In November 2014, he was sentenced to an additional nine months of imprisonment for violating the terms and conditions of his federal supervised release for repeatedly lying to his supervising probation officer by concocting a bogus job for a real estate concern in London. He was released from prison in June 2015. In the fall of 2015, Voloshin engaged in another fraud scheme by soliciting money from individuals and falsely representing that the money would be fully invested to generate very high returns. In November 2017, he was sentenced to 27 months of imprisonment for the offense and for violating his supervised release. He was also ordered to pay $275,000 in restitution, in addition to his restitution obligation from his 2012 conviction. He was released from prison in May 2018.
Between January and April 2019, Voloshin defrauded a company in Bloomfield that provided accounting and tax preparation services to individuals and companies. Voloshin stole blank checks for both the company’s business account and the company owner’s personal account, forged the owner’s name on the checks, and negotiated the checks for his own benefit. Voloshin also stole and negotiated checks and money orders that were written out as payment by third parties to the company. As part of the scheme, Voloshin incorporated an entity in Wyoming with a name very similar to that of the company, opened a bank account in the name of the sham company, deposited misappropriated checks into the account, and used the stolen funds for his own benefit. Through this scheme, Voloshin defrauded victims of $56,548.71.
On September 23, 2020, a federal grand jury in New Haven returned an indictment charging Voloshin. He was arrested on July 14, 2021, in Sao Paulo, Brazil, and has been detained since his arrest.
Voloshin pleaded guilty to one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of aggravated identity theft, which carries a mandatory term of imprisonment of two years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 22.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Bloomfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Sean P. Mahard.
U.S. Attorney Avery thanked Interpol and Brazilian authorities for their assistance in apprehending Voloshin, and the U.S. Department of Justice’s Office of International Affairs for coordinating the extradition proceedings in this matter.
Fourteen People Charged in International Drug Trafficking and Money Laundering SchemeRead the Press Release
NEWS RELEASE SUMMARY – May 30, 2024
SAN DIEGO – A federal grand jury has charged 14 people with participating in an international multi-million-dollar cocaine trafficking and money laundering scheme.
According to an indictment unsealed today, plus additional information in a related search warrant, the alleged leader of the trafficking organization, Jesus Ruiz-Sandoval, managed the smuggling and distribution of large quantities of cocaine from Tijuana into the United States, and the movement of cash proceeds back to Mexico. Ruiz is a United States citizen who fled the U.S. for Mexico several years ago, in violation of his terms of supervised release for a prior federal drug-trafficking crime (Case number 08-cr-00713-DSF in the Central District of California).
The search warrant said Ruiz worked closely with other co-conspirators, including John Joe Soto and Esteban Sinhue Mercado, who are also U.S. citizens currently residing in Mexico. The alleged conspiracy involved smuggling large multi-kilo quantities of cocaine from Tijuana through San Diego to Los Angeles. From there, commercial trucks transported the cocaine from Los Angeles to the Mid-Atlantic for distribution in the Eastern United States. Commercial trucks also transported cash proceeds from the cocaine sales back across the United States to Los Angeles, where it was packaged and loaded into cars that couriers drove through San Diego and into Tijuana, delivering the proceeds to Ruiz there. To date, investigators have seized more than $5 million in cash proceeds and more than 130 kilos of cocaine.
“This office targets sophisticated international trafficking cells by hitting them where it hurts — their wallets,” said U.S. Attorney Tara K. McGrath. “Following the money takes you to the heart of a trafficking organization and this prosecution aims to drive a stake through it.” U.S. Attorney McGrath expressed her gratitude to the Los Angeles Police Department and the Hawthorne Police Department, which provided invaluable partnership in this investigation.
“One of the pillars of Homeland Security Investigations (HSI) is to identify and dismantle international drug trafficking organizations who poison our communities,” said Christopher Davis, Acting Special Agent in Charge for HSI San Diego. “Throughout this investigation and with the unwavering support from our law enforcement partners, we further discovered their involvement in a money laundering scheme. This indictment serves as a warning to those believing they can remain undetected by HSI – our message is clear. You will be found and you will be brought to justice.”
“This indictment marks a significant milestone in our relentless pursuit of justice against transnational criminal organizations. By leveraging collaborative efforts, CBP alongside our partner agencies are able to target the root causes of crime and dismantle organized criminal enterprises,” said Sidney K. Aki, Director of Field Operations for San Diego Field Office. “Ultimately, this unified approach promotes public safety, reduces the flow of illegal drugs and laundered funds, and strengthens the resilience of communities against these threats.”
This investigation is one of two into Ruiz. Several months after a grand jury in San Diego first indicted Ruiz, a separate grand jury in the Central District of California indicted him and others for a separate, but similar, international trafficking scheme. See United States v. Sandoval et al., 24-CR-008 AB (C.D. Cal.). The prosecutions of Ruiz and others indicted in both cases will proceed in coordinated fashion.
Another defendant, Ricardo Miranda-Beltran (aka Ricardo Miranda-Benitez), appeared Tuesday for his initial appearance on the indictment. Miranda was arrested in the Eastern District of California and ordered detained, and then ordered to appear in San Diego on these charges.
DEFENDANTS Case Number 23cr1574 AJB
*Jose Ruiz-Sandoval Age: 45 Mexico
*John Joe Soto Age: 43 Mexico
*Esteban Sinhue Mercado Age: 24 Mexico
Brittany Mangrum Age: 36 Van Nuys, CA
Liliana Ruvalcaba-Gonzalez Age: 25 Anaheim, CA
Yessenia Lazo Age: 23 Los Angeles, CA
Ricardo Miranda-Beltran Age: 57 Bakersfield, CA
Edwin Rafael Hernandez Age: 32 Pasadena, CA
*Denotes fugitives who are not in custody
**Additional defendants’ names are redacted and not listed here
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, United States Code, Sections 841(a) & 846
Maximum Penalty: Life in custody, $10 million fine, and a life term of supervised release
Conspiracy to Import Controlled Substances – Title 21, United States Code, Sections 952, 960, and 963
Maximum Penalty: Life in custody, $10 million fine, and a life term of supervised release
Consp. to Launder Monetary Instruments – Title 18, United States Code, Sections 1956(a)(2)(B)(i) & (h)
Maximum Penalty:- Twenty years in custody, $500,000 fine or twice the laundered amount, and a 3-year term of supervised release
Bulk Cash Smuggling – Title 31, United States Code, Section 5332
Maximum Penalty: Five years in custody, $250,000 fine, and a 3-year term of supervised release
AGENCIES
Homeland Security Investigations
Customs and Border Protection
Los Angeles Police Department, Transnational Organized Crime Section
Hawthorne Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Williamson Memorial Hospital CEO Pleads Guilty to Federal Theft CrimeRead the Press Release
CHARLESTON, W.Va. – Charles Hatfield, 61, of Williamson, pleaded guilty today to theft or bribery concerning programs receiving federal funds. Hatfield, who recently resigned as mayor of Williamson, admitted that while chief executive officer of Williamson Memorial Hospital he stole $34,872.62 in hospital funds for personal use and without authorization.
According to court documents and statements made in court, Hatfield became the hospital’s interim CEO in September 2018. As CEO, Hatfield had control over the hospital’s finances and bank accounts, directed payments of the hospital’s funds, and had custody and control of the hospital’s checkbook. Hatfield was the permanent CEO when he was relieved of those duties in September 2019. Around that time, on Oct. 21, 2019, the rural, 76-bed hospital filed for bankruptcy.
On May 16, 2019, Hatfield directed that $9,197.62 in hospital funds be used to purchase a cashier’s check made payable to an individual at Venice Sands Apartments-Argus Management of Venice in Florida. Hatfield admitted that he used the hospital funded-check to settle a personal lawsuit demanding the payment of delinquent real estate taxes and homeowners’ fees he owed for personal condominium property he owned in Venice.
On September 25, 2019, Hatfield directed the transfer of $25,675 in hospital funds to Mid Mountain Properties, a real estate company owned and operated by Hatfield. The transaction occurred just days prior to Hatfield being relieved as CEO, and shortly before the hospital filed for bankruptcy. Hatfield admitted that he was aware that the hospital could not appropriately fund its employee benefits programs, including retirement and healthcare plans at the time he directed the transfer. Hatfield further admitted to telling his business partners that he used the transferred funds to pay a personal obligation.
Hatfield also admitted that he never requested or received authorization from the hospital’s board of directors or anyone else at the hospital to direct the payments from the hospital to himself.
Hatfield is scheduled to be sentenced on September 12, 2024, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine. Hatfield also owes $34,872.62 in restitution.
“Charles Hatfield abused a position of trust and diverted funds for personal gain from a community hospital at a time when he knew the hospital and its employees were financially vulnerable,” said United States Attorney Will Thompson. “I commend the Federal Bureau of Investigation (FBI), the West Virginia State Police-Bureau of Criminal Investigation (BCI), the United States Secret Service, the U.S. Department of Labor- Employee Benefits Security Administration (EBSA) and investigator Steve Rowley in this office for their investigative work, and Assistant United States Attorney Andrew J. Tessman for the prosecution of this case.”
United States District Judge Irene C. Berger presided over the hearing.
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-74.
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Former Professor Sentenced for Setting Multiple Fires Blocking in Firefighters Responding to the Dixie FireRead the Press Release
SACRAMENTO, Calif. — Gary Stephen Maynard, 49, of San Jose, was sentenced today to five years and three months in prison, three years of supervised release and ordered to pay $13,081 in restitution for three counts of arson on federal property, U.S. Attorney Phillip A. Talbert announced.
“Maynard went on an arson spree on federal land while California faced one of the worst fire seasons in history. He intentionally made a dangerous situation more perilous by setting some of his fires behind the men and women fighting the Dixie fire, potentially cutting off any chance of escape,” said U.S. Attorney Talbert. “It is only because of the quick response by the U.S. Forest Service — and the actions of civilian witnesses — that those fires were extinguished as quickly as they were. Today’s sentence underscores the danger that Maynard’s fires created and serves as a reminder that federal law enforcement takes seriously the threats to life, property, and our national forests caused by arson.”
U.S. Forest Service Assistant Special Agent in Charge Tony Magarrell praises the actions of his Agents and fellow cooperating law enforcement agencies who identified Maynard early in the investigation, “These actions led to the quick arrest of Maynard before more damage was done to Forest Service lands and increasing the threat of firefighter lives. This is a great example of how cooperation between law enforcement agencies serves our public and makes us safe.”
According to court documents, Maynard set a series of fires in the Shasta Trinity National Forest and in the vicinity of the then-ongoing Dixie Fire in the Lassen National Forest. Maynard set some of his fires behind firefighters who were actively fighting the Dixie Fire, effectively surrounding these firefighters as they responded to one of the largest wildfires in California history. Maynard admitted to setting the following fires during this arson spree: the Cascade Fire (July 20, 2021), the Everitt Fire (July 21, 2021), the Ranch Fire (Aug. 7, 2021), and the Conard Fire (Aug. 7, 2021).
This case was the product of an investigation by the U.S. Forest Service with assistance from the Federal Bureau of Investigation, CalFire, the California Highway Patrol, and the Lassen County Sheriff’s Department. Assistant U.S. Attorneys Shea J. Kenny and Sam Stefanki prosecuted the case.
Former King County Jail Guard pleads guilty to bribery and drug distributionRead the Press Release
Seattle – A former King County Jail guard pleaded guilty today in U.S. District Court in Seattle to bribery and distributing methamphetamine and fentanyl pills, announced U.S. Attorney Tessa M. Gorman. Former jail employee Mosses Ramos, 40, of Milton, Washington had been a King County jail guard for 17 years before he was fired last year. When sentenced by U.S. District Judge Ricardo S. Martinez 0n September 13, 2024, Ramos will face up to 20 years in prison.
According to records filed in the case, between March and May 2023, Ramos accepted bribes to bring about a pound of methamphetamine and 100 fentanyl pills into the jail for the benefit of inmates Michael Anthony Barquet, 37, and Francisco Montero, 25. Both men are currently incarcerated. Montero is facing trial in King County Superior Court for a double homicide. Barquet is scheduled for trial on drug and bribery charges in October 2024.
The web of bribes and drug trafficking extended outside the jail with three female coconspirators who are alleged associates of the two inmates: Neca Silvestre, 38, of Kent; Katrina Cazares, 38, of Burien; and Kayara Zepeda Montero, 27, of Seattle. All three remain charged in the case.
Bribery is punishable by up to 10 years in prison. Drug distribution is punishable by up to 20 years in prison.
While Ramos has accepted responsibility and pleaded guilty, the other defendants in this case have not and are presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and the King County Sheriff’s Office with support from the King County Prosecuting Attorney’s Office.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Vince Lombardi.
Former Investment Banker and Registered Broker Sentenced to 41 Months’ Imprisonment for Cryptocurrency Investment Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Rashawn Russell, a former investment banker, who was formerly a registered broker with the Financial Industry Regulatory Authority, was sentenced by United States District Judge Hector Gonzalez to 41 months in prison for a cryptocurrency fraud scheme that resulted in approximately $1.5 million in investor losses and for a separate access device fraud scheme. Russell was also ordered to pay more than $1.5 million in restitution to victims of his fraud scheme. Russell pleaded guilty in September 2023 to wire fraud and access device fraud.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, and Eric Shen, Inspector-in-Charge, United States Postal Inspection Service, Criminal Investigations Group (USPIS), announced the sentence.
From November 2020 to August 2022, Russell engaged in a scheme to induce multiple victims to invest with him based on false promises that he would use their funds for cryptocurrency investments and that they would earn large—and sometimes guaranteed—returns. Russell misappropriated much of the victims’ assets and used them for his personal benefit, to gamble, and to repay other investors. Russell also repeatedly failed to repay the victims’ principal investments and failed to provide them with promised rates of return. After some victims requested to be repaid their investments, Russell falsely represented that he had wired them money.
In a separate scheme, between September 2021 and June 2023, Russell fraudulently obtained at least 97 credit/debit cards and at least 43 identification cards in the names of third parties, often from gym lockers in New York and New Jersey. Russell obtained these devices with the intent to use them to complete unauthorized transactions.
Assistant United States Attorney Drew Rolle of the Eastern District of New York, Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section prosecuted the case.
The Defendant:
RASHAWN RUSSELL
Age: 28
Brooklyn, New YorkE.D.N.Y Docket No.: 23-CR-152 (HG)
Former Investment Banker and Registered Broker Sentenced for Operating $1.5M Cryptocurrency Investment Fraud SchemeRead the Press Release
A former investment banker, who was formerly a registered broker with the Financial Industry Regulatory Authority, was sentenced today to three years and five months in prison for a fraud scheme that resulted in approximately $1.5 million in investor losses and for a separate access device fraud scheme.
According to court documents, from November 2020 to August 2022, Rashawn Russell, 28, of Brooklyn, New York, engaged in a scheme to defraud multiple investors by inducing them to invest with him based on false promises that, among other things, he would use their funds for cryptocurrency investments and that the investors would earn large—and sometimes guaranteed—returns from those investments. Russell misappropriated much of the investors’ assets and used them to fund personal expenses, to gamble, and to repay other investors. Russell also repeatedly failed to repay investors’ principal investments and failed to provide investors with promised rates of return. After certain investors requested to be repaid their investments, Russell also falsely represented that he had wired the money to them.
In a separate fraud scheme, between September 2021 and June 2023, Russell fraudulently obtained at least 97 credit and debit cards and at least 43 identification cards in the names of third parties, often from gym lockers in New York and New Jersey. Russell used the stolen card information to complete unauthorized transactions, including opening online gambling accounts and making fraudulent purchases.
Russell was also ordered to pay more than $1.5 million in restitution to victims of his cryptocurrency fraud scheme. Russell pleaded guilty in September 2023 to wire fraud and access device fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
USPIS investigated the case.
Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Drew Rolle for the Eastern District of New York prosecuted the case.
Former Indiana State University Student Federally Indicted on Extortion and Threat Charges Against University OfficialsRead the Press Release
TERRE HAUTE – A federal grand jury returned an indictment charging Nicholas Wheeler, 27, with four counts of transmitting extortionate threats via interstate commerce and three counts of transmitting threats via interstate commerce.
According to the indictment and other court documents, on March 16th and 17th of 2024, Wheeler made violent threats over “X” (formerly Twitter) against Indiana State University, Indiana State University professors, and two of his former attorneys. Wheeler threatened that if the individuals did not give him $500,000 or investigate his claim that he was the victim of a crime, he was going to kill or injure them.
Some of Wheeler’s messages included threats such as, “I’m coming to take your souls… closed casket funerals,” and “empty your bank accounts, I’m coming for blood Indiana State University,” accompanied by posts claiming to own a loaded machine gun and body armor.
Wheeler attended Indiana State University from August 2018 through August 2023. At the time Wheeler sent the threats, he was living in California.
The FBI is investigating this case. If convicted of the most serious offense, Wheeler could face up to 20 years in federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jordan Oliver, who is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Executive of Airline Pleads Guilty to Participating in A Money Laundering ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SHUKHRATJON MIRSAIDOV pled guilty to participating in a money laundering conspiracy from June 2019 to February 2022, while MIRSAIDOV was a senior executive for an international airline (“Airline-1”) with a hub at John F. Kennedy International Airport in New York. MIRSAIDOV pled guilty before U.S. District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “For years, Shukhratjon Mirsaidov used his position as an executive for an international airline to participate in a complex scheme to launder the proceeds of healthcare fraud. While all forms of money laundering are pernicious, such conduct is particularly severe when it involves executives at major businesses abusing their positions to launder the proceeds of fraud. This case demonstrates that money launderers – no matter what their station – will be held accountable by this Office.”
According to allegations in the Indictment, the criminal Complaint, public filings, and statements made in court:
In the course of the money laundering conspiracy charged in the Indictment, MIRSAIDOV used a U.S. company bank account for Airline-1 (the “Airline-1 Bank Account”) to operate a check-cashing scheme and to launder hundreds of thousands of dollars of healthcare fraud proceeds. As a senior executive, MIRSAIDOV was one of two signatories for the Airline-1 Bank Account. Between approximately June 2019 and August 2021, MIRSAIDOV deposited into the Airline-1’s Bank Account over 100 checks drawn from accounts controlled by seven shell companies that were used to launder the proceeds of healthcare fraud. For example, the shell companies had received insurance payments for medical services purportedly provided by a doctor, but the doctor did not, in fact, provide such services. The shell companies were primarily funded by payments from medical clinics, physicians, and medical diagnostic testing companies and had no relation to the airline industry. MIRSAIDOV obtained the checks from the shell companies from his co-defendant, SHUKHRAT ABDULLAEV. In exchange for the checks, MIRSAIDOV provided cash generated from Airline-1 ticket sales to ABDULLAEV to give to the perpetrators controlling the shell companies.
MIRSAIDOV not only used the Airline-1 Account to launder healthcare fraud proceeds from the shell companies, but also used the Airline-1 Account to launder funds represented to be fraud proceeds in a series of sting transactions. Between approximately June 2021 and February 2022, law enforcement, with the assistance of a confidential source (“CS-1”), conducted a series of sting money laundering transactions involving MIRSAIDOV, ABDULLAEV, and the Airline-1 Bank Account. CS-1 asked ABDULLAEV to cash checks and transmit funds abroad and agreed to pay ABDULLAEV a four percent fee to do so. ABDULLAEV told CS-1 a portion of the fee went to MIRSAIDOV. During the transactions, CS-1 represented to ABDULLAEV that the funds were healthcare fraud proceeds. Overall, CS-1 provided ABDULLAEV with 14 checks totaling $210,000 issued from a covert law enforcement account held in the name of a fictitious company. MIRSAIDOV, working with ABDULLAEV, deposited 12 of the checks totaling $190,000 into the Airline-1 Bank Account. CS-1 received cash from ABDULLAEV in exchange for the checks, and in one instance, ABDULLAEV coordinated the delivery of U.S. currency to an individual abroad in exchange for some of the checks. During the course of these sting transactions, in a recorded conversation with CS-1, MIRSAIDOV admitted, in sum and substance, that he received many checks from ABDULLAEV and that MIRSAIDOV gave ABDULLAEV cash in exchange for the checks. CS-1 informed MIRSAIDOV, in sum and substance, that the checks from CS-1 came from a medical company and that the company disguised the check payments in its financial reporting by claiming the check deposits were for business class flight tickets. MIRSAIDOV nevertheless expressed a willingness to work directly with CS-1 to conduct check cashing using the Airline-1 Bank Account.
* * *
MIRSAIDOV, 46, of Fort Lee, New Jersey, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. As part of his guilty plea, MIRSAIDOV agreed to forfeit to the U.S. $674,171, as well as funds seized from the Airline-1 Bank Account. MIRSAIDOV will be sentenced on September 4, 2024, at 10:30 a.m. by U.S. District Judge Loretta A. Preska.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Cecilia Vogel, Christopher Brumwell, and Vladislav Vainberg are in charge of the prosecution.
Former Chief Financial Officer Is Sentenced to Prison for Embezzlement SchemeRead the Press Release
CHARLOTTE, N.C. – John M. Casper, 60, of Charlotte, was sentenced today to 24 months in prison followed by one year of supervised for embezzling thousands of dollars from his employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, between 2018 and 2020, Casper misused his position as Chief Financial Officer (CFO) to embezzle more than $694,000 from the victim company. Court documents show that Casper executed the embezzlement scheme by conducting approximately 112 unauthorized financial transactions, transferring funds from the victim company’s accounts to bank accounts under Casper’s control. As the victim company’s CFO, Casper used his access to the company’s accounting system to disguise the fraud, by creating fake or incorrect financial entries in the company’s books and records so that the victim company’s books would reconcile.
On September 19, 2023, Casper pleaded guilty to wire fraud. Casper will be ordered to report to a designated United States Bureau of Prisons facility to begin serving his sentence of incarceration.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte for their investigation of the case.
Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Former Broward Deputy Sheriff Sentenced to Federal Prison for COVID-19 Relief FraudRead the Press Release
MIAMI – Stephanie Diane Smith, 54, of Sunrise, Florida, was sentenced yesterday to 7 months in prison for participating in a COVID-19 relief fraud scheme in which she received two loans from the Paycheck Protection Program (“PPP”). In March 2024, a federal jury in Fort Lauderdale found Smith guilty of two counts of wire fraud in connection with the scheme.
Smith was employed as a deputy sheriff with the Broward Sheriff’s Office when she applied for the PPP loans in 2021. As established at trial, the PPP loans were based upon materially false gross income information for two sole proprietorship businesses, Children 1st Basketball Training and Agape Smith Vending. The fruits of this scheme resulted in Smith’s unlawful receipt of $31,108.
U.S. District Judge James I. Cohn imposed the sentence following a hearing. The sentence includes a 3-year term of supervised release following imprisonment, restitution in the amount of $31,108, a $2,000 fine, and forfeiture.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker of the Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG); and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
FBI Miami, FRB-OIG, and BSO investigated this case. Assistant U.S. Attorneys David Snider and Trevor Jones prosecuted the case. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60203.
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Former Boy Scout Camp Employee Admits Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Morris County, New Jersey, man today admitted possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
William Mickel, 70, of Lake Hopatcong, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an indictment charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to the documents filed in this case and statements made in court:
From February 2022 through April 2022, Mickel, who was employed by Boy Scout camps in New Jersey, distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Oct. 3, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
mickel.indictment.pdfForeign National Sentenced for Kidnapping and Assaulting U.S. Army Soldiers in ColombiaRead the Press Release
MIAMI – A Colombian national was sentenced today to 48 years and nine months in prison for his role in kidnapping and assaulting two U.S. Army soldiers who were on temporary duty in Bogota, Colombia.
According to court documents, Jeffersson Arango Castellanos, 36, and his co-conspirators targeted, incapacitated, and kidnapped two U.S. soldiers in Bogota to rob them of their valuables. On the evening of March 5, 2020, the two victims went to an entertainment district in Bogota to watch a soccer game. They visited a pub, where Arango Castellanos incapacitated the two victims by putting drugs, including benzodiazepines, in their drinks. Arango Castellanos and one of his co-conspirators then escorted the victims into a waiting car driven by another co-conspirator, kidnapped them, and took their wallets, debit and credit cards and cell phones. Arango Castellanos and his co-conspirators used one victim’s credit card and the other victim’s debit card to make purchases and withdraw money. The two victims lost consciousness until the following day, by which point they had been separated.
In May 2023, Arango was extradited from Colombia to the United States pursuant to a U.S. extradition request. On Jan. 26, he pleaded guilty to kidnapping an internationally protected person, conspiracy to kidnap an internationally protected person, assaulting an internationally protected person, and conspiracy to assault an internationally protected person.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
The Justice Department’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché Office in Bogota, and the U.S. Marshals Service provided significant assistance in securing the arrest and extradition of the defendant. The United States also thanks Colombian law enforcement authorities for their valuable assistance.
Assistant U.S. Attorney Bertila L. Fernandez for the Southern District of Florida and Trial Attorneys Clayton O’Connor and Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20173.
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Foreign National Sentenced for Kidnapping and Assaulting U.S. Army Soldiers in ColombiaRead the Press Release
A Colombian national was sentenced today to 48 years and nine months in prison for his role in kidnapping and assaulting two U.S. Army soldiers who were on temporary duty in Bogota, Colombia.
According to court documents, Jeffersson Arango Castellanos, 36, and his co-conspirators targeted, incapacitated, and kidnapped two U.S. soldiers in Bogota to rob them of their valuables. On the evening of March 5, 2020, the two victims went to an entertainment district in Bogota to watch a soccer game. They visited a pub, where Arango Castellanos incapacitated the two victims by putting drugs, including benzodiazepines, in their drinks. Arango Castellanos and one of his co-conspirators then escorted the victims into a waiting car driven by another co-conspirator, kidnapped them, and took their wallets, debit and credit cards and cell phones. Arango Castellanos and his co-conspirators used one victim’s credit card and the other victim’s debit card to make purchases and withdraw money. The two victims lost consciousness until the following day, by which point they had been separated.
In May 2023, Arango was extradited from Colombia to the United States pursuant to a U.S. extradition request. On Jan. 26, he pleaded guilty to kidnapping an internationally protected person, conspiracy to kidnap an internationally protected person, assaulting an internationally protected person, and conspiracy to assault an internationally protected person.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
The Justice Department’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché Office in Bogota, and the U.S. Marshals Service provided significant assistance in securing the arrest and extradition of the defendant. The United States also thanks Colombian law enforcement authorities for their valuable assistance.
Trial Attorneys Clayton O’Connor and Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Bertila L. Fernandez for the Southern District of Florida prosecuted the case.
Florida Man Charged with Paycheck Protection Program Loan FraudRead the Press Release
Wilmington, Del. – A federal grand jury returned an indictment on May 28, 2024, charging Blaine Murphy, 56, of Naples, Florida with wire fraud and making false statements in connection with fraudulent loan applications submitted as part of the federal Paycheck Protection Program (“PPP”) authorized by the Coronavirus Aid, Relief, and Economic Security Act, announced David C. Weiss, U.S. Attorney for the District of Delaware.
According to the indictment, Murphy fraudulently applied for loans designed to support small businesses during the COVID-19 pandemic. Between March and June 2020, using the names of nine separate businesses, Murphy submitted, or participated in the submission of, PPP loan applications to the U.S. Small Business Administration and its authorized lenders. These applications falsely inflated average monthly payroll and number of employees of those companies in an attempt to obtain funds from the PPP. Murphy also falsely stated that he did not own or commonly manage other businesses, and he provided false and fraudulent tax documents in connection with most of his loan applications. Murphy obtained over $350,000 as a result of this fraudulent scheme.
U.S. Attorney Weiss stated, “During a generational public health crisis, this defendant took advantage of a federal government program intended to help keep small businesses and their employees afloat. The defendant’s fraudulent behavior came at the expense of his fellow citizens. The U.S. Attorney’s Office for the District of Delaware brings these charges to hold him accountable for his actions.”
Murphy is charged with wire fraud and making false statements on loan applications. If convicted, he faces up to 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties.
The FBI Baltimore Division’s Dover Resident Agency conducted the investigation in this matter. Assistant U.S. Attorneys Bryan C. Williamson and Jesse S. Wenger are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the U.S. District Court for the District of Delaware or on PACER.
On May 17, 2021, the U.S. Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the U.S. Department of Justice in partnership with agencies across the federal 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 combat 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 combating COVID-19 fraud, please visit https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of fraud or attempted fraud involving COVID-19 funding 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.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
blaine_murphy.pdfFlorida Felon Sentenced to Prison for Role in Multi-Million Dollar Health Care Kickback Scheme After Pleading Guilty to COVID-19 Fraud and Unlawfully Possessing FirearmRead the Press Release
MIAMI – A Florida man was sentenced yesterday to 96 months in federal prison, to be followed by three years of supervised release, by U.S. District Judge Raag Singhal, after admitting his role in a multimillion-dollar durable medical equipment (DME) kickback scheme and pleading guilty to carrying out a COVID-19 fraud scheme and being a felon in possession of firearms and ammunition.
On Feb. 8, 2024, Kareem Memon, 34, of Coral Springs, Florida, pled guilty to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute (Case No. 24-cr-60004).
According to documents filed in the health care fraud case and statements made in court, Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.
On Sept. 21, 2023, Memon pled guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal (Case No. 23-cr-80068). According to documents in the wire fraud case and statements made in court, Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. Moreover, at the time of Memon’s arrest he was a convicted felon and illegally possessed 12 firearms and ammunition.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Attorney for the United States Vikas Khanna for the District of New Jersey (for the health care fraud matter); Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Special Agent in Charge James E. Dennehy of the FBI, Newark Field Office, made the announcement.
FBI West Palm Beach and Newark Field Offices investigated the cases. Invaluable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Department of Health and Human Services-Office of Inspector General; U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorneys Robin W. Waugh for the Southern District of Florida and Matthew Specht for the District of New Jersey prosecuted these cases. Assistant U.S. Attorney Mitchell Hyman for the Southern District of Florida is handling asset forfeiture.
In May 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 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 23-cr-80068 and 24-cr-60004.
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First Degree Murder Charges Filed in 2023 Killing Near Catholic UniversityRead the Press Release
WASHINGTON – Jaleil Jones, 19, of Washington, D.C., was charged by indictment, filed yesterday, for killing Robert Lavender, the manager of the BGR “Burgers Grilled Right” restaurant on July 17, 2023, near Catholic University in Northeast D.C.
Jones was indicted by a grand jury in the District of Columbia on charges of conspiracy, first degree murder while armed (felony murder), robbery, and two counts of possession of a firearm during a crime of violence.
According to the government’s evidence, on July 17, 2023, Jaleil Jones and another person came across Mr. Lavender on a bench on the 600 block of Monroe Street, Northeast, D.C. Mr. Lavender was waiting for a ride home after work. Jones and the other person agreed together to rob Mr. Lavender. In the course of that robbery, Jones shot Mr. Lavender in the head.
The case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Alec Levy.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Final Texas Defendants Plead Guilty to Conspiracy to Commit Mail and Wire Fraud and Aggravated Identity TheftRead the Press Release
A Texas man pleaded guilty on Friday to conspiracy to commit mail and wire fraud and aggravated identity theft, and a Texas women pleaded guilty yesterday to conspiracy to commit mail and wire fraud both in connection with a wide-ranging scheme to defraud the IRS. In all, seven defendants have now pleaded guilty to this scheme that sought over $111 million in fraudulent tax refunds.
According to court documents, from 2018 to 2021, Abraham Yusuff, of Round Rock, led a stolen-identity-refund-fraud scheme by knowingly conspiring with Meghan Inyang, of San Antonio, Christopher Eduardo, of Round Rock, Christian Mathurin, of Nashville, Tennessee, Dillon Anozie, of San Antonio, Babajide Ogunbanjo, of Austin, and Aydin Mammadov, of Houston.
As part of the scheme, Yusuff recruited and directed the co-conspirators to provide addresses for the purpose of receiving mail, including IRS correspondence such as identity verification letters. Yusuff and others then registered with the IRS, posing as authorized agents of multiple taxpayers. They used stolen information relating to the taxpayers and their real tax preparers to falsely persuade the IRS they were legitimate representatives. The conspirators then directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses and emails the conspirators controlled.
The conspirators used this information to electronically file more than 370 tax returns claiming fraudulent refunds and directed the IRS to split the refunds among several prepaid debit cards. Prior to issuing tax refunds to some taxpayers, the IRS sent verification letters to the addresses controlled by the conspirators, and the conspirators and others, pretending to be the taxpayers, instructed the IRS to release the refunds.
Yusuff and the co-conspirators obtained the prepaid debit cards that were to be used to receive the fraudulently claimed refunds. Once the refunds were deposited onto the prepaid debit cards, the funds were laundered by purchasing, among other things, money orders from local stores in amounts that were designed to avoid having to furnish identification or trigger reporting requirements. Prepaid debit cards and money orders were used to purchase designer clothing, home renovation materials and used cars at auction. The defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds.
Yusuff pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of aggravated identity theft. Inyang pleaded guilty to one count of conspiracy to commit mail and wire fraud.
Mammadov, Ogunbanjo, Eduardo and Anozie each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Mathurin pleaded guilty to one count of aiding and assisting in the filing of a false tax return.
The defendants each face a maximum penalty of 20 years in prison for conspiracy to commit mail and wire fraud. Yusuff also faces a mandatory penalty of two years in prison for aggravated identity theft, to be served consecutively. Mathurin faces a maximum penalty of three years in prison for aiding and assisting in the filing of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation and the Treasury Inspector General for Tax Administration investigated the case.
Assistant Chief Michael Boteler and Trial Attorneys Mary Frances Richardson and Curtis Weidler of the Tax Division are prosecuting the case. The U.S. Attorney’s Office for the Western District of Texas assisted in this matter.
Federal Inmate Indicted for Threatening Federal Court Employee in MassachusettsRead the Press Release
BOSTON – A federal inmate was indicted by a federal grand jury in Boston today for allegedly sending several threatening letters to an employee at the John Joseph Moakley United States Courthouse.
Devin James Melycher, 31, has been indicted on three counts of mailing threatening communications. He will appear in federal court in Boston at a later date.
According to the charging documents, Melycher is a federal inmate who, since 2023, has been in the custody of the Bureau of Prisons. It is alleged that on three separate occasions – Dec. 16, 2022; Jan. 3, 2023; and Jan. 12, 2023 – Melycher sent letters addressed to a U.S. official at the John Joseph Moakley U.S. Courthouse in Boston threatening to injure the victim employee.
The charges of using of mailing threatening communications each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. 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 Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Indictment in Chicago Charges Man with Illegally Importing Suicide Drug into the U.S. from MexicoRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a Mexican resident on drug charges for allegedly illegally importing the drug Pentobarbital into the United States from Mexico for use in committing suicide.
A superseding indictment returned Tuesday in U.S. District Court in Chicago charges DANIEL GONZALEZ-MUNGUIA, also known as “Alejandro Vasquez,” 40, of Puebla, Mexico, with importing and distributing a controlled substance. The charges in the indictment are punishable by up to 60 years in federal prison.
Gonzalez-Munguia is currently detained in U.S. custody. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by U.S. Customs and Border Protection, the Illinois Army National Guard Counterdrug Program, the U.S. Attorney’s Office for the Southern District of Texas, and law enforcement agencies in Australia, Canada, China, France, Germany, Ireland, South Korea, Spain, Switzerland, and the United Kingdom. Assistant U.S. Attorney Kartik K. Raman is prosecuting the case. The officials noted that the investigation remains ongoing.
Pentobarbital, also known as Nembutal, is a drug sold in Mexico in commercially available bottles for the purpose of euthanizing animals. Pentobarbital is a controlled substance in the U.S. and has been used in state-sponsored executions.
According to the indictment and a criminal complaint previously filed in the case, Gonzalez-Munguia operated an online drug business to facilitate the sale and distribution of Pentobarbital to individuals in the U.S. and throughout the world who were contemplating suicide. During the investigation, law enforcement located numerous mail parcels that appear to have been shipped out of Mexico by Gonzalez-Munguia. Authorities in the U.S. and several foreign countries conducted well-being checks and recovered pentobarbital from numerous individuals who admitted to being despondent and ordering the suicide drug online via email addresses operated by Gonzalez-Munguia, the charges allege. Law enforcement offered assistance to these individuals. In other instances, individuals who purchased Pentobarbital via the email addresses were later found to be deceased, including individuals in Illinois and several other states and countries, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Gonzalez-Munguia complaint Gonzalez-Munguia superseding indictmentFall River Man Sentenced to More Than Three Years in Prison for Oxycodone Pill ConspiracyRead the Press Release
BOSTON – A Fall River man was sentenced today for his role in a drug distribution conspiracy involving thousands of oxycodone pills.
Austin Gonsalves, 37, was sentenced by U.S. District Court Judge Denise J. Casper to 41 months in prison, to be followed by three years of supervised release. Gonsalves was also ordered to forfeit $16,130. In May 2024, Gonsalves pleaded guilty to one count of conspiracy to distribute controlled substances. Gonsalves was arrested and charged along with five others in July 2023 for their alleged involvement in a drug trafficking organization that distributed oxycodone pills across Southeastern Massachusetts. The defendants were subsequently indicted by a federal grand jury in August 2023.
Between at least February 2023 and May 2023, Gonsalves obtained hundreds of pills at a time, allegedly from co-defendant Kenneth Veiga, in exchange for tens of thousands of dollars and redistributed the pills to others. On one occasion alone, Gonsalves paid $22,000 to obtain 800 oxycodone for further distribution. A search of Gonsalves’ Fall River residence in July 2023 resulted in the seizure of approximately $16,000 in cash and approximately 400 oxycodone pills.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives; U.S. Coast Guard Investigative Service; Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Mashpee, Yarmouth, Sandwich and Falmouth Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Extranjero sentenciado por secuestro y agresión a soldados del ejército estadounidense en ColombiaRead the Press Release
Un ciudadano colombiano fue sentenciado hoy a 48 años y nueve meses de prisión por su participación en el secuestro y agresión de dos soldados del ejército estadounidense que se encontraban de servicio temporal en Bogotá, Colombia.
Según documentos judiciales, Jeffersson Arango Castellanos, de 36 años, y sus cómplices atacaron, incapacitaron y secuestraron a dos soldados estadounidenses en Bogotá para robarles sus objetos de valor. La noche del 5 de marzo de 2020, las dos víctimas fueron a un sector de entretenimiento de Bogotá para ver un partido de fútbol. Visitaron un bar, donde Arango Castellanos incapacitó a las dos víctimas colocando drogas, inclusive benzodiazepinas, en sus bebidas. Luego, Arango Castellanos y uno de sus cómplices escoltaron a las víctimas a un automóvil conducido por otro cómplice que les estaba esperando, los secuestraron y se apoderaron de sus billeteras, tarjetas de débito y de crédito, y los teléfonos celulares. Arango Castellanos y sus cómplices utilizaron la tarjeta de crédito de una de las víctimas y la tarjeta de débito de la otra víctima para realizar compras y retirar dinero. Las dos víctimas perdieron el conocimiento hasta el día siguiente, momento en el que ya habían sido separadas.
En mayo de 2023, Arango fue extraditado de Colombia a los Estados Unidos de conformidad con una solicitud de extradición de los Estados Unidos. El 26 de enero, él se declaró culpable de secuestro de una persona protegida internacionalmente, concierto para secuestrar a una persona protegida internacionalmente, agredir a una persona protegida internacionalmente y concierto para agredir a una persona protegida internacionalmente.
La fiscal general principal adjunta Nicole M. Argentieri, jefa de la División Penal del Departamento de Justicia; el fiscal federal Markenzy Lapointe para el Distrito Sur de Florida; y el agente especial a cargo Jeffrey B. Veltri de la oficina local del FBI en Miami hicieron el anuncio.
La Oficina de Asuntos Internacionales del Departamento de Justicia, la Agregaduría Judicial de la Sección de Narcóticos y Drogas Peligrosas en Bogotá y el Servicio de Alguaciles de los Estados Unidos brindaron asistencia significativa para asegurar el arresto y la extradición del acusado. Los Estados Unidos también agradecen a las autoridades colombianas del orden público por su valiosa asistencia.
Los abogados litigantes Clayton O’Connor y Elizabeth Nielsen de la Sección de Enjuiciamientos Especiales y Derechos Humanos de la División Penal, y la fiscal federal adjunta Bertila L. Fernández para el Distrito Sur de Florida procesaron el caso.
Extradited Bloomington Fugitive Sentenced to 40 Years in Prison for Producing Sexually Explicit Images and Videos of MinorsRead the Press Release
ST. PAUL, Minn. – A Bloomington man has been sentenced to 480 months in prison, followed by a lifetime of supervised release, for attempted production and production of child pornography, receipt of child pornography, and enticement of a minor, announced U.S. Attorney Andrew M. Luger.
According to court documents, between October 2020 through March 2023, Ibrahim Ghassan Sleyman, 31, used Snapchat and other messaging apps to solicit sexually explicit material and sex acts from minor girls and boys, some as young as nine years old. Additionally, Sleyman groomed and enticed a minor victim to produce child pornography and engage in sexual activity with Sleyman by providing the minor with drugs and gifts. Once Sleyman became aware of law enforcement’s investigation, he fled to Abu Dhabi, United Arab Emirates (UAE), on September 6, 2022. While Sleyman was a fugitive in the UAE, he continued to use Snapchat to engage in sexually explicit conversations with minors in the United States, and he attempted to obstruct justice by contacting minor victims to influence their actions in the ongoing investigation.
On September 15, 2023—one year after Sleyman fled to the UAE—UAE authorities returned Sleyman to the United States. Upon his return, he was taken into federal custody by the FBI. To date, the United States has identified at least 22 minor victims who Sleyman solicited and used to produce and receive child pornography and attempted to entice to engage in unlawful sexual acts.
On December 14, 2023, Sleyman pleaded guilty to one count of attempted production and production of child pornography, one count of receipt of child pornography, and one count of enticement of a minor. As a part of his plea, Sleyman admitted to criminal conduct relating to 22 minor victims. He was sentenced today in U.S. District Court by Judge Donovan W. Frank, who remarked that he has presided over “hundreds of child pornography cases,” and that Sleyman’s case was “distinguishable” from many of those prior cases, in part, due to the severity of the offenses and hands-on sexual abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by the FBI, Homeland Security Investigations, U.S. Customs and Border Protection, the Elk River Police Department, and the Pleasant Hill, Missouri Police Department, with assistance from the St. Paul Police Department. The Justice Department’s Office of International Affairs, the State Department, the Ministries of Justice and Interior of the United Arab Emirates, UAE Interpol, Abu Dhabi Airport Police and Abu Dhabi International Airport – Airport Security provided significant support and assistance in Sleyman’s extradition from the United Arab Emirates.
Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.
Essex County Man Sentenced to 108 Months in Prison for Illegally Possessing Firearm and Cocaine, Heroin, and FentanylRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man was sentenced today to 108 months in prison for illegally possessing fentanyl, heroin, and cocaine for distribution and possessing a firearm as a convicted felon and in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Taurean Gordon, 40, of Irvington, New Jersey, previously pleaded guilty before U.S. Circuit Judge Stephanos Bibas to a superseding information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Bibas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Gordon admitted that on February 11, 2021, he possessed heroin, fentanyl, and cocaine packaged for distribution with the intent to distribute. Gordon, a previously convicted felon, also admitted that he possessed a North American Arms Inc. revolver loaded with five rounds of ammunition.
In addition to the prison term, Judge Bibas sentenced Gordon to 3 years of supervised release and ordered him to forfeit the weapon and ammunition he used during the commission of the offense, as well as the $526 seized from him at the time of the offense.
U.S. Attorney Sellinger credited officers of the Newark Police Division under the direction of Director Fritz Fragé and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys DeNae Thomas of the Health Care Fraud Unit and George Barchini of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.