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21 May 2024
Justice Department Secures Landmark Agreement with City of Anoka, Minnesota, to End Disability Discrimination in “Crime-Free” Housing ProgramRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree to resolve allegations that the city of Anoka, Minnesota, violated the Americans with Disabilities Act (ADA) and the Fair Housing Act by denying tenants with mental health disabilities an equal opportunity to receive emergency assistance.
Under Anoka’s rental licensing and “crime free” housing ordinance, the city can penalize landlords for “nuisance calls” to their properties. Nuisance calls include disorderly conduct and “unfounded” calls to the police. The department previously found that because of the nuisance ordinance, when tenants with mental health disabilities and those associated with them (like their families or landlords) request or receive emergency assistance, they risk eviction, fines or loss of a rental license.
“So-called ‘crime-free’ ordinances are often fueled by discriminatory objectives, and have the effect of destabilizing communities and promoting fear intended to drive people from their homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Anoka’s so-called ‘crime-free’ housing program does not protect public safety but rather risks lives by discouraging people with disabilities and their loved ones from calling for help when needed most. No person should feel discouraged from seeking help during a mental health crisis. The Justice Department is committed to contesting discriminatory ‘crime free’ ordinances and programs that block, discourage or penalize people for simply accessing emergency services.”
For years, the city also sent weekly reports to landlords detailing calls for emergency service from all rental properties. These reports often revealed personal and sensitive information about residents’ mental health disabilities, such as their diagnoses, medications or even suicide attempts. The city used these reports to notify landlords of potential nuisance calls and encourage landlords to evict tenants.
The proposed consent decree resolves the department’s allegations that the city, through its “crime-free” housing program, discouraged and prevented tenants with mental health disabilities and those associated with them from seeking emergency assistance, including during medical or mental health crises.
Under the proposed consent decree, which must be approved by the U.S. District Court for the District of Minnesota, the city has agreed to pay a total of $175,000 to compensate individuals harmed by the program; end its practice of publicizing the disability, medical and health information of individuals with mental health disabilities; adopt non-discrimination policies and complaint procedures; notify landlords, property owners and tenants of changes to the program; designate an ADA coordinator; train staff and provide reports to the department during a monitoring period.
Individuals who believe they were harmed by the city’s “crime-free” housing program may be entitled to compensation under the settlement fund and should contact the Justice Department at [email protected] or by calling the toll-free number 888-473-3940.
In late 2022, the department also settled a lawsuit against the City of Hesperia, California, and the San Bernardino County Sheriff’s Department alleging that their implementation of a “crime-free” program and ordinance discriminated on the basis of race and national origin in violation of the Fair Housing Act and Title VI of the Civil Rights Act of 1964. Black renters were almost four times more likely, and Hispanic renters 29% more likely, to be evicted under Hesperia’s program than white renters.
For more information on the Civil Rights Division and the civil rights laws it enforces, please visit www.justice.gov/crt. Individuals may submit a report of discrimination online, call 833-591-0291 to report housing discrimination or call 800-514-0301 (TTY 1-833-610-1264) to report disability discrimination and to reach the department’s ADA Information Line.
Justice Department Files Lawsuit Against the State of Oklahoma Regarding Unconstitutional State Immigration LawRead the Press Release
The Justice Department today filed suit against the State of Oklahoma to challenge House Bill 4156 (HB 4156) under the U.S. Constitution’s Supremacy Clause and Foreign Commerce Clause. The Constitution assigns the federal government the authority to regulate immigration and manage our international borders. Pursuant to this authority, Congress has established a comprehensive immigration framework governing noncitizens’ entry, reentry and presence. Because HB 4156 is preempted by federal law and violates the U.S. Constitution, the Justice Department seeks a declaration that HB 4156 is invalid and an order enjoining the state from enforcing the law.
“Oklahoma cannot disregard the U.S. Constitution and settled Supreme Court precedent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We have brought this action to ensure that Oklahoma adheres to the Constitution and the framework adopted by Congress for regulation of immigration.”
As outlined in the complaint, Oklahoma’s law would create new state crimes to regulate noncitizens’ entry and reentry into and presence in, the United States, with charges ranging from a misdemeanor to a felony. In particular, HB 4156 requires noncitizens convicted of violating its provisions to leave the State, effectively granting Oklahoma the independent authority to exile noncitizens from the State and permitting a patchwork of state immigration schemes. The Supreme Court recognized in Arizona v. United States, 567 U.S. 387 (2012), however, that the authority to admit noncitizens and to determine their status in the United States is a core responsibility of the federal government. HB 4156 impedes the federal government’s comprehensive immigration scheme and interferes with its conduct of foreign relations.
The suit was filed on behalf of the United States, including the Justice Department, Department of Homeland Security and Department of State.
ComplaintJury Finds Woman Guilty of Kidnapping Her RoommateRead the Press Release
WASHINGTON – Antoinette Gilmore, 28, of Washington, DC was convicted yesterday of kidnapping, after a three-day jury trial before the Honorable Errol Arthur in the Superior Court of the District of Columbia, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD). Sentencing is scheduled for July 23, 2024.
On October 12, 2023, the victim got into an argument on the phone, with his roommate, defendant Gilmore. During the argument, the defendant told the victim she wanted him to move out of her apartment. They agreed that the defendant would pick up the victim from downtown and bring him back to her apartment so that he could remove his belongings. Defendant Gilmore and her cousin went to pick up the victim.
Once inside the car, the defendant instructed her cousin to punch and beat the victim and take his belongings as the defendant drove. The victim tried to get out of the car, but they locked the doors and trapped him from within. At one point, he was able to get the back door open and escape. At the defendant’s direction, her cousin jumped out and chased the victim down, eventually catching him and dragging him by the collar of his shirt back into the defendant’s car. Once they reached their destination, the victim was pulled out of the car where he managed to break free and ran straight to the Sixth District Police substation where he reported the assault to police.
This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Sara Hanson and Lauren Miller of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia.
Joplin Man Sentenced for $300,000 Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for two fraud schemes, totaling nearly $300,000, including fraudulent loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and a so-called “transaction reversal” bank scheme.
Deaviyon Rockett, 22, was sentenced by U.S. District Judge Roseann A. Ketchmark to five years and three months in federal prison without parole. The court also ordered Rockett to pay $260,000 in restitution.
On April 5, 2023, Rockett pleaded guilty to two counts of wire fraud. Rockett admitted that he submitted at least $119,262 in fraudulent Paycheck Protection Program loan applications. Rockett also admitted that he engaged in a $176,007 “transaction reversal” fraud scheme.
PPP Fraud Scheme
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide Paycheck Protection Program (PPP) loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.
Rockett admitted that, from March 26 to May 17, 2021, he submitted six PPP loan applications using the names of other individuals that falsely claimed a business, its employees, and/or the amount of the salaries to be covered through these loans existed. In reality, those representations were entirely false. Rockett then accessed the bank accounts of these individuals, withdrawing much of the money that had been fraudulently received, and used those funds for expenses that were unrelated to and prohibited to be used under the PPP loan program.
“Transaction Reversal” Fraud Scheme
Law enforcement in Neosho and Jasper Counties was contacted in August 2022 by numerous individuals who reported that Rockett had contacted them through various media platforms. Rockett told these individuals that he was part of a business that involved “transaction reversal,” and that if they would give him their bank account information, he would make himself and the victim money by conducting these transactions on their bank account.
Rockett accessed the victims’ bank accounts in order to deposit fraudulent checks written on the bank accounts of Coffeyville Community College and/or Santander Consumer USA. Once the checks were deposited, the bank would credit the account on a preliminary basis. However, those checks were not authorized by either entity and were not honored by either entity.
Rockett immediately withdrew either the amount of the checks or, in some cases, completely emptied the bank account of all funds before the bank reversed the deposits. At least $176,007 in total was fraudulently withdrawn from the bank accounts of fraud victims.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Irmo Man Sentenced to 11 Years in Federal Prison for Fentanyl Distribution and Gun ViolationsRead the Press Release
COLUMBIA, S.C. — Joseph Anthony Johnson, 34, of Irmo, was sentenced to 11 years in federal prison after pleading guilty to distributing fentanyl and for two convictions of felon in possession of a firearm.
On Jan. 24, 2022, according to evidence presented in court, officers with the West Columbia Police Department found Johnson in possession of fentanyl and a loaded .380 caliber handgun with an obliterated serial number. That firearm was stolen, and Johnson was prohibited from possessing any firearm at the time due to multiple prior felony convictions. Johnson had 19 prior convictions, including for assault and battery 3rd degree, methamphetamine distribution, seven drug possessions, an illegal firearm possession, resisting arrest, failure to stop on police command, and financial transaction card theft.
On Feb. 15, 2022, and again on Feb. 24, 2022, while out on bond for the conduct above, Johnson sold heroin and another loaded .380 caliber pistols to an undercover source. Johnson was armed with a firearm in his waistband during one of the drug transactions. On July 22, 2022, when Johnson was arrested for the conduct above, he was again found with heroin and fentanyl.
United States District Judge Mary Geiger Lewis sentenced Johnson to 11 years in federal prison with six years of court-ordered supervision to follow. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Columbia Police Department, the Lexington County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED). Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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Huntington Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Amy Lynn Carter, 40, of Huntington, was sentenced today to six years and 15 days in prison, to be followed by four years of supervised release, for possession with intent to deliver 5 grams or more of methamphetamine.
According to court documents and statements made in court, on January 20, 2021, Carter was a passenger in a vehicle parked at a Barboursville convenience store when a law enforcement officer approached the vehicle. The officer observed drug paraphernalia in plain view within the vehicle. A police K-9 alerted to the presence of controlled substances in the vehicle. Officers searched the vehicle and found 19 grams of a heroin and fentanyl mixture, more than 242 grams of methamphetamine and $10,300. Carter admitted that she possessed the seized methamphetamine and intended to distribute it. Carter further admitted that she intended to buy approximately 8 pounds of methamphetamine in Ohio with the cash found in the vehicle for distribution within the Southern District of West Virginia.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Troy D. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-19.
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Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Tyson Davis Sr., 45, of Huntington, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on June 14, 2023, Davis sold approximately 2.93 grams of fentanyl to a confidential informant while in a parked vehicle in Huntington. Davis admitted to the transaction.
Davis is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff's Office, and the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-23.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Quintez Robert Kilgore, also known as “Cortez Robert Jackson,” 28, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 6, 2023, law enforcement officers encountered Kilgore on the 200 block of Olive Street in Huntington while searching for a fugitive. Kilgore admitted that he possessed a Glock Model 33 .357-caliber pistol that he placed underneath a nearby vehicle to conceal it as the officers approached him. The officers saw Kilgore’s attempt to hide the firearm and seized it. Kilgore admitted that he also possessed 12.64 grams of cocaine base, also known as “crack,” and 9.78 grams of fentanyl that the officers found and seized. Kilgore further admitted that he intended to distribute the seized controlled substances.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kilgore knew he was prohibited from possessing a firearm because of his prior felony convictions for possession with intent to distribute a controlled substance in Cabell County Circuit Court on October 12, 2017, and being a person prohibited from possessing firearms in Wayne County Circuit Court on January 8, 2020.
Kilgore is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-6.
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Houstonian heads to prison in $1.7M insider trading scheme using wife’s private company informationRead the Press Release
HOUSTON – A 42-year-old man has been sentenced for securities fraud, announced U.S. Attorney Alamdar S. Hamdani.
Tyler Loudon pleaded guilty Feb. 22.
U.S. District Judge Sim Lake has now ordered Loudon to serve 24 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Lake noted a significant sentence of incarceration was required to reflect the seriousness of the offense, promote respect for the law and afford adequate deterrence to this type of criminal conduct.
“Insider trading is rampant, extremely difficult to uncover and adversely affects the integrity of the financial markets and the public perception of the markets,” said Hamdani. “These types of offenses erode the public’s confidence in the integrity of the markets and lead to widespread cynicism that the markets are rigged in favor of a fortunate few. Mr. Loudon was only able to commit this crime because he had an unfair advantage: his spouse was an insider who gave him material nonpublic information. This sentence sends a clear message to those who would take advantage of their access to confidential insider information to personally profit are not above the law.”
“Mr. Loudon took advantage of his and his wife’s ‘work from home’ situation and betrayed his spouse by eavesdropping on her confidential business calls to realize a profit of $1.7M in less than two months,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Insider trading cases like this one cause damage to everyday investors, our economy and the public’s trust in the fairness of our financial markets. Fair trading laws and regulations are in place so that anyone who can, and wants to, participate in the stock market does, but on an equal playing field.”
Loudon made $1.7 million in illegal profits from the purchase and sale of stock market shares.
Loudon’s wife was an associate manager in mergers and acquisitions at international oil and gas company. Loudon learned her company was planning to purchase a travel center operator business.
Unbeknownst to his spouse, Loudon used the non-public information about the expected acquisition to purchase 46,450 shares ahead of the public notice.
After the announcement, the travel center’s stock price increased. Loudon then sold his shares for a substantial profit.
Prior to sentencing, Loudon forfeited the $1.7 million in illegal proceeds to the United States.
Loudon will self-surrender to a Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.
Former teacher pleads guilty to possession of child pornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Anthony V. Giambrone, 40, of Kenmore, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession of child pornography involving prepubescent minors, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in April 2020, Giambrone, a former teacher with Erie One BOCES working at Maryvale Intermediate School, possessed images of child pornography on two separate laptop computers. Giambrone possessed approximately 1,052 images and 381 videos of child pornography, some of which included prepubescent minors.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger.
Sentencing is scheduled for August 27, 2024, at 12:00 p.m. before Judge Arcara.
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Former Program Director at the U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights and Nephew Arrested in Kickback SchemeRead the Press Release
WASHINGTON – Kirk Perry, 59, of Lorain, Ohio, and his nephew Jamarea Grant, 30, of Cleveland, Ohio, were arrested this morning on wire fraud and conspiracy charges filed in U.S. District Court in Washington, D.C., announced U.S. Attorney Matthew M. Graves, and Inspector General Phyllis K. Fong of the U.S. Department of Agriculture Office of Inspector General.
Both defendants are expected to make their initial appearance in the Northern District of Ohio today.
According to the indictment, from August 2015 through November 2022, Perry, a United States Department of Agriculture (USDA) Program Director, arranged for Grant to be hired by two companies under contract with the USDA Office for Civil Rights. Court documents allege that Grant reported directly to Perry, and the two of them conspired to bill the government for work that Grant did not actually perform. Grant is alleged to have received nearly $400,000 for work he did not do, and, in return, kicked back approximately $125,000 to Perry as part of the criminal scheme.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison for the charged offenses of Money, Property, and Honest Services Wire Fraud, and Conspiracy to Commit Money, Property, and Honest Services Wire Fraud. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. If convicted, the defendants’ sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the U.S. Department of Agriculture Office of Inspector General, Sensitive Investigations Office (SIO). It is being prosecuted by Assistant U.S. Attorneys Brian P. Kelly and Joshua Rothstein of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the U.S. Attorney’s Office for the Northern District of Ohio.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Professor Charged with Obstructing Justice by Falsifying RecordsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a Criminal Information charging MATTHEW QUEEN with falsification of records in connection with falsified notes Queen produced to the FBI related to an ongoing federal investigation. QUEEN was arraigned on the Information before U.S. District Judge Lewis Kaplan earlier today.
U.S. Attorney Damian Williams said: “As alleged, Matthew Queen attempted to interfere with a federal grand jury investigation by creating false notes in an attempt to corroborate his own lies. The criminal obstruction charge announced today should exemplify the seriousness of attempts by any individual to manipulate or interfere with a federal investigation.”
FBI Assistant Director in Charge James Smith said: “Matthew Queen, an interim Provost, allegedly failed to inform the FBI of a conspiracy to destroy evidence related to the ongoing investigation of sexual misconduct and instead produced falsified notes to investigators. Queen’s alleged actions deliberately violated a court order and delayed justice for the sexual abuse victims. The FBI will never tolerate those who intentionally lie and mislead our investigation in an attempt to conceal their malicious behavior.”
According to the allegations in the Information filed today in Manhattan federal court and other public statements made in court:[1]
Since approximately 2022, the U.S. Attorney’s Office for the Southern District of New York (“U.S. Attorney’s Office”) and the FBI have been investigating allegations of sexual abuse and misconduct related to a national religious denomination (the “Denomination”) and its affiliated entities, and the alleged cover-up of such allegations by individuals and entities associated with the Denomination. In October 2022, as part of that investigation, a grand jury subpoena was issued to a seminary that is affiliated with the Denomination (the “Seminary). Among other things, the subpoena required the production of all documents in the Seminary’s possession related to allegations of sexual abuse against anyone employed by or associated with the Seminary.
The following month, in November 2022, a Seminary employee (“Employee-1”) received a report alleging that a current Seminary student had committed sexual abuse. Employee-1 immediately notified the campus police at the Seminary. No further action was taken by the Seminary at that time, however, and the allegation was not reported to the U.S. Attorney’s Office.
In January 2023, Employee-1 created a document describing the sexual abuse allegation Employee-1 received in November 2022, and the failure of the Seminary to take action regarding the allegation at that time (the “Document”). On January 26, 2023, Employee-1 met with MATTHEW QUEEN, the then-Interim Provost and professor at the Seminary, and a member of the Seminary’s executive staff (“Employee-2”). During that meeting, and in QUEEN’s presence, Employee-2 directed Employee-1, in sum and substance, to destroy the Document.
In May 2023, the U.S. Attorney’s Office and the FBI interviewed MATTHEW QUEEN in Fort Worth, Texas regarding the January 26, 2023 meeting with Employee-2 and Employee-1. During that interview, QUEEN falsely stated that he had not heard Employee-2 direct Employee-1 to destroy the document. Three days after the interview, QUEEN falsely stated to another Seminary employee (“Employee-3”) that he had just located a notebook in his office containing purportedly contemporaneous notes of the January 26, 2023 meeting. The notes falsely stated that during the January 26, 2023 meeting, Employee-2 and Employee-1 merely discussed providing the Document to a different department at the Seminary, and omitted the fact that Employee-2 had directed Employee-1 to destroy the Document. Queen provided the falsified notes to Employee-2 to produce in response to the grand jury subpoena.
In June 2023, MATTHEW QUEEN provided the U.S. Attorney’s Office with a copy of his notes. On June 20, 2023, QUEEN met again with the U.S. Attorney’s Office and the FBI in New York and produced the original notebook containing his notes. During his second interview, QUEEN initially falsely stated that he had written the notes contemporaneously with the January 26, 2023 meeting, but then during the same meeting, QUEEN falsely stated that he instead had written the notes months later, in April 2023. In truth and in fact, QUEEN had written the notes following his initial May 2023 interview with the U.S. Attorney’s Office and the FBI.
On June 21, 2023, MATTHEW QUEEN testified under oath that he had in fact heard Employee-2 direct Employee-1 to make the Document “go away.”
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QUEEN, 49, of Greensboro, North Carolina, is charged with one count of falsification of records, which carries a maximum sentence of twenty years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of the FBI. He added that the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Jacqueline Kelly is in charge of the prosecution.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Mexican Police Officer Pleads Guilty to Trafficking Meth into U.S.Read the Press Release
ALPINE, Texas – A Mexican national, formerly a Mexican police officer, pleaded guilty in a federal court in Alpine to possession with intent to distribute methamphetamine.
According to court documents, Cesar Alonzo Lopez Ruiz, 34, of Rosales, Mexico, attempted to enter the United States from Mexico at the Presidio Point of Entry. A search revealed 50 packages of methamphetamine hidden inside the gas tank of his vehicle. The total weight of the meth was approximately 27.8 kilograms.
Lopez Ruiz pleaded guilty to one count of possession with intent to distribute methamphetamine. He is scheduled to be sentenced on Aug. 26 and faces a penalty of 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations and Customs and Border Protection are investigating the case.
Assistant U.S. Attorneys Scott Greenbaum and Amy Greenbaum are prosecuting the case.
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Food Suppliers to Pay $395,000 to Resolve Claims of Mislabeled Inspection Dates on Frozen Beef Patties Sold to Federal PrisonsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that four related food supply companies will pay $395,000 to resolve claims that frozen ground beef patties they supplied to the Federal Bureau of Prisons (the BOP) were misleadingly labeled.
The United States contends that, in early 2020, the companies — Prime Food Sales, Inc. of Port Washington, N.Y., Prime Food Sales LLC of Dresher, Pennsylvania, JTP Sales, LLC of Atlanta, Georgia, and JW Sales & Distribution, LLC of Dresher, Pennsylvania — sold 190,000 pounds of the patties to the BOP for distribution to federal prisons nationwide. Though the supply contract with the BOP required that the patties be no more than 6 months old when delivered, re-inspection labels on the product packaging created the false appearance that the patties were younger than six months old at delivery when they were actually older. This non-compliance with the contract’s terms resulted in the companies making false payment claims to the BOP.
The U.S. Attorney’s Office coordinated its investigation with the U.S. Department of Justice’s Office of the Inspector General (DOJ-OIG), which began investigating after the U.S. Department of Agriculture’s Food Safety and Inspection Service detained some of the patties in February 2020. The government’s investigation concluded that, although product labeling misrepresented inspection dates and the patties’ age, product quality and safety were unaffected.
“When supplying food to federal agencies, federal contractors are in a position of public trust and must adhere to contract specifications, especially those like product-age requirements that may impact food safety or quality,” said U.S. Attorney Romero. “Today’s resolution should send a message to firms supplying food to the Federal Bureau of Prisons and other federal agencies that we will hold these contractors responsible for violations of law, including when they present claims for payment while disregarding contract terms. We will continue to work with law enforcement partners to identify federal contractors and subcontractors who risk the health or safety of consumers and to hold them accountable.”
“Contractors that are selected and paid by the government to supply food to inmates are expected to comply with contractual and other standards. When they provide mislabeled products, as the companies allegedly did here, the government is deprived of what it bargained for and the health and safety of inmates is potentially placed at risk,” said Andrew B. Hartwell, Special Agent in Charge of DOJ OIG’s Fraud Detection Office. “The DOJ OIG is committed to rooting out this type of contract fraud.”
The settlement resolves civil claims under the False Claims Act that are allegations only. There has been no determination of liability, and the companies did not admit liability. They generally cooperated with the U.S. Attorney’s Office’s investigation.
The matter was handled in the U.S. Attorney’s Office by Assistant U.S. Attorney Gerald B. Sullivan and Auditor Dawn Wiggins, with support from the Department of Justice Office of Inspector General and the U.S. Department of Agriculture Food Safety and Inspection Service.
The Department of Justice’s investigation was part of its enforcement focus on combatting federal procurement fraud. The False Claims Act is one of the most powerful tools in this enforcement effort. Although there was no whistleblower in this matter, the False Claims Act includes whistleblower provisions allowing a private party to file an action on behalf of the United States and to receive a portion of any recovery. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement in connection with Federal Bureau of Prison contracts or against other Department of Justice components can be reported at https://oig.justice.gov/hotline.
Florida Man Arrested for Embezzling from EmployerRead the Press Release
BOSTON – A Florida man has been arrested and charged for allegedly embezzling approximately $4 million from his employer, a Florida-based portfolio company owned by a Massachusetts investment firm.
Paul Schnitzer, 51, of Clermont, Fla., was charged with one count of wire fraud. Schnitzer was arrested this morning and will make an initial appearance in the Middle District of Florida tomorrow. He will appear in federal court in Boston at a later date.
According to the charging document, Schnitzer worked as the finance director for the portfolio company. It is alleged that between January 2023 and May 2024, Schnitzer made over 90 transfers, each of tens of thousands of dollars disguised as “equity distributions,” from the company’s operating account into his personal account. To hide these transfers, Schnitzer allegedly provided falsified financial reports with inflated cash balances for the company to the investment firm. It is also alleged that Schnitzer secretly used a line of credit to replenish the company’s operating account after he had stolen from it.
The charge of wire fraud provides a sentence of up to 20 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 Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Florida Man Admits Defrauding Zelle UsersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that KADER GAHMAAL BIWAKI EDMOND, 24, of Miami, Florida, pleaded guilty today in New Haven federal court to an offense stemming from his role in a scheme that defrauded individuals who use the electronic payments system Zelle.
According to court documents and statements made in court, law enforcement has been investigating crimes against users of digital payment applications, including Zelle. Typically, a scheme victim receives a fraudulent text message, purporting to be from the victim’s bank, asking the victim to confirm whether a Zelle transaction was authorized. When the victim denies the transaction, the victim receives a response that a bank representative will be in contact. The victim then receives a phone call from an individual impersonating a bank representative, who informs the victim that an unauthorized transaction has occurred and that they need to work together to reverse the transaction. By this point, without the victim’s knowledge, the fraudsters have linked the victim’s actual phone number or email address via Zelle to a bank account that does not belong to the victim. The victim is then instructed to “reverse” the fictional fraudulent transaction by making a Zelle payment to what they believe is their own account, but is, in fact, an account controlled by the fraudsters.
From approximately February 2021 through August 2023, Edmond and others defrauded numerous victims, including victims in Connecticut, of a total of more than $250,000 through this Zelle scheme and other fraud schemes.
Edmond was arrested on August 31, 2023.
Edmond pleaded guilty to conspiracy to commit bank fraud, an offense that carries a maximum term of imprisonment of 30 years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on August 14 in Hartford.
Edmond is released on a $100,000 bond pending sentencing.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Edward Chang.
Victims can report Zelle fraud to their bank or credit union, or to the Internet Crime Complaint Center (IC3), which is run by the FBI and serves as the country’s hub for reporting cybercrime, at www.ic3.gov.
Additional information about digital payment application schemes is available at https://www.ic3.gov/Media/Y2022/PSA220414.
Flight Attendant and Two Bank Employees Charged in Federal Indictment of Alleged Mexico-Based Drug Trafficking OrganizationRead the Press Release
CHICAGO — A flight attendant and two bank employees in Indiana have been charged in a federal indictment that accuses a Mexico-based drug trafficking organization of moving thousands of kilograms of cocaine into the United States and laundering tens of millions of dollars in proceeds.
A superseding indictment unsealed Friday in U.S. District Court in Chicago charges flight attendant GLENIS ZAPATA, 34, of Lafayette, Ind., with assisting the traffickers in the transportation of drug proceeds on commercial airline flights. Glenis Zapata possessed a “Known Crew Member” badge and used her authority to help the traffickers move cash drug proceeds from the Midwest to the southern part of the U.S. and into Mexico, the indictment states. The traffickers also allegedly used other means to ship the money, including semi-trailer trucks and a private charter airplane that was seized by federal authorities in 2021 at the Gary/Chicago International Airport in Gary, Ind.
The two bank employees – ILENIS ZAPATA, 33, of Lafayette, Ind., and GEORGINA BANUELOS, 39, of Lafayette, Ind. – helped launder the drug proceeds by exchanging lower denominated bills for higher denominated bills, the indictment states. Ilenis Zapata and Banuelos, who worked together at a bank in Lafayette, Ind., also knowingly and willfully failed to file currency reports for the transactions, as required under federal law, the indictment states.
The superseding indictment added Glenis Zapata, Ilenis Zapata, and Banuelos as defendants and renewed conspiracy and money laundering charges previously filed against 15 others, including the alleged leader of the drug trafficking organization, OSWALDO ESPINOSA, 41, of Mexico; the organization’s primary manager, JORGE BORBON-OCHOA, 46, of Mexico; and the head of its Chicago operations, RICARDO TELLO, 37, of Mission, Texas. Espinosa’s organization allegedly transported the cocaine in wholesale quantities from Mexico to various U.S. cities, including Chicago, from 2018 to 2023. The traffickers used warehouses, garages, and stash houses in Chicago to receive and store the cocaine and cash, the indictment states.
Arraignments on the superseding charges have not yet been scheduled.
The superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, LaFonda Sutton-Burke, Director of the Chicago Field Office of U.S. Customs and Border Protection, Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office. Substantial assistance was provided by the Federal Deposit Insurance Corporation’s Office of Inspector General and the Lafayette, Ind. Police Department. The government is represented by Assistant U.S. Attorneys Andrew Erskine, Ashley Chung, and Adam Rosenbloom.
The case is part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders 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 against criminal networks.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Espinosa et al indictmentFinal two defendants, a mother and daughter, were sentenced to prison for their involvement in elder fraud schemeRead the Press Release
MIAMI – Five people, to include a mother and her daughter, were sentenced to federal prison for their involvement in a South Florida elder fraud scheme.
Aisladys Diaz, 45, of Miami, Florida was a private duty health aide who worked with a home health aide agency. The agency provided home health aides to residents at senior communities in Miami-Dade County. From May to June 2020, Aisladys Diaz stole the personal identifiable information of two elderly residents under her care. Aisladys Diaz then shared the information with her daughter, Ailensy Buron Diaz, 29, also of Miami, Berto Omar Rodriguez Fonseca, a finance manager at a car dealership in Miami Lakes, and husband and wife Yandys Diaz, 30, and Yainelis Perez Diaz, 34, both of Hialeah, who used the information to purchase numerous new and used vehicles at car dealerships, at a cost totaling over $500,000, and apply for credit cards, an Economic Disaster Injury Disaster Loan (EIDL), and a Small Business Administration (SBA) loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
A jury previously convicted Aisladys Diaz and Ailensy Buron Diaz of conspiracy to commit access device fraud, use of an unauthorized access device, conspiracy to commit wire fraud, aggravated identity theft, and wire fraud. On May 3, Aisladys Diaz and Ailensy Buron Diaz were sentenced to 52 months and 48 months in prison, respectively, to be followed by three years of supervised release. A restitution hearing is scheduled for August 1.
Rodriguez Fonseca previously pleaded guilty to conspiracy to commit access device fraud, aggravated identity theft, and conspiracy to commit wire fraud. Yainelis Perez Diaz and Yandys Diaz each pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. On Dec. 20, 2023, Yainelis Perez Diaz, Yandys Diaz, and Rodriguez Fonseca were sentenced to 30 months, 36 months, and 40 months in prison, respectively, to be followed by three years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Scott H. Moffit of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Cybercrime Investigations Division, made the announcement.
FBI Miami and TIGTA’s Cybercrime Investigations Division investigated the case. Assistant U.S. Attorney Robert Moore prosecuted the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20354.
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Federal Grand Jury Indicts Three Men in Connection with Violent Robberies of Chicago BusinessesRead the Press Release
CHICAGO — A federal grand jury has indicted three men for allegedly conspiring to violently rob several liquor stores and convenience stores in Chicago.
Charged with federal conspiracy and firearm offenses are ARDARIES HARRIS, 26, of Chicago, JORDAN FOX, 24, of Chicago, and ROOSEVELT VEAL, 26, of Rockford, Ill., and formerly of Chicago. All three defendants have been ordered detained in federal custody pending trial.
According to an indictment returned Monday in U.S. District Court in Chicago, the robbers wore masks and brandished firearms in five heists in November 2023 and January 2024:
- Nov. 24, 2023: Veal and a co-conspirator robbed Super Saving Food, located in the 4400 block of West Belmont Avenue in Chicago.
- Jan. 13, 2024: Harris, Fox, and a co-conspirator robbed Buchanas Food & Liquor, located in the 1800 block of West 47th Street in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Mr. P Beverage Depot, located in the 2000 block of West Division Street in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Before You Go Liquor, located in the 1900 block of West Fullerton Avenue in Chicago.
- Jan. 15, 2024: Harris, Fox, Veal, and a co-conspirator robbed Clybourn Market, located in the 2800 block of North Clybourn Avenue in Chicago.
In addition to the five robberies, the indictment alleges that the conspiracy continued until May 4, 2024, and involved additional heists, including robberies of bars in Chicago. The federal investigation remains ongoing.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by Homeland Security Investigations in Chicago and the Illinois State Police. The government is represented by Assistant U.S. Attorneys Emily C.R. Vermylen and Stephanie Stern.
The investigation was conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago. The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes.
Holding firearm offenders accountable through federal prosecution is the centerpiece of Project Safe Neighborhoods, a nationwide Department of Justice initiative that brings together law enforcement officials, prosecutors, community leaders, and other stakeholders to develop comprehensive solutions to the most pressing violent crime problems. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Harris et al indictmentFederal Court Permanently Shuts Down Connecticut Tax Preparer and BusinessesRead the Press Release
The U.S. District Court for the District of Connecticut issued a permanent injunction today against a Connecticut tax return preparer, Juan Carlos Frias, and his businesses, USA Tax LLC, Multi Latin Services LLC and Connecticut Tax and Services Inc., permanently barring them from preparing federal tax returns for others.
According to Justice Department’s complaint, from 2017 through 2021, Frias and his companies prepared over 10,000 tax returns for customers. The complaint alleges that, during those years, Frias and his companies displayed a pattern of filing tax returns that understated customers’ liabilities and inflated their refunds by falsifying business expenses, reporting false filing statuses and qualifying children or dependents, claiming false education and residential energy credits and fabricating erroneous itemized deductions, including medical and dental expenses, charitable deductions and impairment-related work expenses.
According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Personal Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on the return. Not signing the return, commonly known as “ghost preparation” is often a red flag that a preparer is attempting to avoid detection by the IRS. The United States alleges that Frias acted as a ghost preparer.
According to the court’s order, Frias and his businesses consented to entry of the injunction, which permits the United States is permitted to conduct post-judgment discovery to monitor compliance with the injunction. The order requires that they (1) send notice of the injunction to each person for whom Frias and his companies prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2018, to the present and (2) post a paper copy of the injunction at all physical locations where they conducted business and an electronic copy of the injunction on any business website, social media site or social media profile they maintain and create over the next five years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Frias Permanent Injunction Order.pdfEl Paso Man Arrested for Firearm Trafficking, Dealing Without a LicenseRead the Press Release
EL PASO, Texas – An El Paso man was arrested in El Paso for alleged crimes related to trafficking and selling firearms without a license.
According to court documents, Jesse Garay, 26, allegedly purchased numerous firearms between Sept. 7, 2022 and March 24, 2023, answering on each Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was “the actual transferee/buyer of the firearm(s) listed on this form.” Private messages obtained in a search warrant allegedly revealed that Garay sold the firearms to other individuals, including a minor. Additionally, at least three of the firearms purchased by Garay are alleged to have been recovered at either crime scenes or in Mexico.
Garay is charged with one count of trafficking in firearms, one count of dealing firearms without a license, and two counts of false statement during a firearm acquisition. If convicted, he faces a maximum penalty of 15 years in prison for the trafficking charge, five years for the dealing without a license charge, and 10 years for each false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey C. Boshek II for the ATF Dallas Field Division made the announcement.
ATF is investigating the case.
Assistant U.S. Attorney Mathew Engelbaum is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Disbarred Attorney Sentenced to Nine Years in Prison for COVID-19 Relief Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DOUGLAS RAYMOND ARNTSEN was sentenced to nine years in prison for his scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $1.4 million in government-funded loans designed to provide relief to small businesses during the COVID-19 pandemic. ARTSEN previously pled guilty before U.S. District Judge P. Kevin Castel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Douglas Raymond Arntsen, a disbarred attorney and recidivist fraudster, took advantage of a national emergency to line his pockets, masterminding a scheme to defraud the government out of more than $1.4 million by submitting fraudulent COVID-19 relief loan applications. Thanks to the hard work of this Office and our law enforcement partners, Arntsen is being held accountable for his fraud.”
According to the Indictment, other public filings, and statements made in court:
Between about June 2020 through about August 2020, DOUGLAS RAYMOND ARNTSEN orchestrated a scheme to defraud the SBA by submitting fraudulent loan applications through the Economic Injury Disaster Loan (“EIDL”) Program. In doing so, ARNTSEN recruited multiple co-conspirators. ARNTSEN promised potential co-conspirators a way out of their difficult financial circumstances. Certain of those co-conspirators trusted ARNTSEN because they thought he was an attorney. In reality, ARNTSEN had been disbarred.
ARNTSEN asked his co-conspirators to give him their personal information, including social security and driver’s license numbers, and then used this information to submit fraudulent loan applications to the EIDL program. The applications submitted by ARNTSEN falsely claimed that the co-conspirators owned businesses that had substantial revenue. Often, the co-conspirators named as owners of the businesses, in fact, had no legitimate connection to the businesses at all. After the loan applications were submitted, ARNTSEN directed his co-conspirators to lie to the SBA during the loan diligence process.
ARNTSEN also directed his co-conspirators to recruit additional participants to his fraudulent scheme. After one co-conspirator had obtained a fraudulent loan, ARNTSEN directed him, in sum and substance, to “[g]et me one more warm body.” The co-conspirator proceeded to give ARNTSEN the personal information of a relative, which was then used to obtain another fraudulent loan.
In total, ARNTSEN and his co-conspirators obtained at least approximately $1.4 million in fraudulent loans and attempted to obtain hundreds of thousands of dollars of additional loans that the SBA declined to fund. After one fraudulent loan was approved by the SBA, ARNTSEN texted a co-conspirator, in sum and substance, “Need how you want your bank checks. Your chariot has arrived this morning.”
Prior to the instant offense, in 2012, ARNTSEN, then a barred attorney working for Crowell & Moring, was convicted and sentenced to four to 12 years in prison for engaging in a multi-year scheme to steal more than $10 million in clients’ money from escrow accounts.
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In addition to his prison term, ARNTSEN, 45, of Staten Island, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,430,200 and to forfeit the same amount.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and additionally thanked the Suffolk County District Attorney’s Office for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
Dark Web drug vendor and clandestine lab manufacturer sentenced to prison for trafficking in methamphetamine and fentanylRead the Press Release
MIAMI – On May 17, an Orange County, California, resident, Tenzin Orgil, 24, was sentenced to 168 months in federal prison for participating in a drug trafficking enterprise that included the sale of methamphetamine and fentanyl on the dark web, as well as the manufacture of ecstasy (also known as MDMA) and methamphetamine in clandestine laboratories. Orgil pleaded guilty in July 2023 and was sentenced by U.S. District Judge Kathleen M. Williams in the Southern District of Florida.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment synthetic drugs have resulted in the most dangerous and deadly drug crisis the United States has ever faced. These synthetic drugs, such as fentanyl and methamphetamine, are responsible for nearly all of the fatal drug poisonings in our nation. Fentanyl killed 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl.
Since at least 2020, until the time of his arrest, Orgil worked under the dark web vendor monikers iEUROPA, iUSA, iAMERICA, UNITEDAIRLINES and SVR667, to distribute large amounts of narcotics via various dark web marketplaces, as well as the peer-to-peer encrypted chat platform, Wickr. Orgil was based in California and sold cocaine, MDMA, heroin, fentanyl, and methamphetamine via the U.S. mail system to customers all over the United States, to include in South Florida. Between 2020 and 2021, through undercover purchases from Orgil via the dark web or Wickr, law enforcement officers in South Florida seized 2.54 grams of fentanyl, in the form of counterfeit oxycodone pills, and 4.965 kilograms of methamphetamine, which was 100% pure. Orgil was also a major manufacturer of MDMA and methamphetamine. He operated numerous clandestine laboratories in California.
Photo of one of Orgil’s dark web vendor pages, included in the Government’s Reply to Defendant’s Response to Motion for Revocation of Magistrate Court’s Order of Bond (DE 15-1)
On Dec. 23, 2022, Irvine Police Department officers in California stopped Orgil while he was driving a vehicle. During a search of his vehicle, Orgil had in his possession several precursor chemicals, obtained from Chinese chemical companies, that are used to produce MDMA, as well as two cellphones. A search of these phones found photos of narcotics, as well as evidence of Orgil’s dark web vendor moniker name of “iBULK” and his access of darknet marketplaces. The search also revealed photos of clandestine laboratories and screenshots of text messages explaining how to manufacture illicit narcotics. Orgil’s phones also revealed that he was in communication with several Chinese chemical manufacturing companies in order to purchase precursor chemicals.
Photo of one of Orgil’s clandestine laboratories, included in the Government’s Response to the Defendant’s Sentencing Memorandum (DE 67).
Photo of Orgil’s text communications regarding drug manufacturing, included in DE 67
On Jan. 18, 2023, law enforcement agents arrested Orgil and a search warrant was executed at his residence in California. A search of his residence revealed a gun with a loaded magazine, numerous fake identification cards, a recipe for manufacturing methamphetamine, and a computer. A search of his computer revealed photographs of counterfeit blue M30/oxycodone pills with a Dark Market/United Airlines label, bags of methamphetamine with an iUSA label and cocaine with a SVR667 label. Additionally, copies of the mailing labels for the packages sent in the undercover purchases were preserved on Orgil’s computer.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, Special Agent in Charge Jeffery B. Veltri of the FBI, Miami Field Office, Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami announced the sentence imposed.
DEA Miami Field Division’s Counternarcotic Cyber Investigations Task Force, FBI Miami, USPIS Miami, IRS-CI Miami Field Office and HSI Miami investigated the case with assistance from DEA San Jose, United States Postal Inspection Service San Jose, DEA New England, Massachusetts State Police - Gaming Enforcement Unit, DEA Orange County, DEA Omaha, DEA Forth Worth, Irvine Police Department, and the Costa Mesa Police Department. Assistant U.S. Attorney Monique Botero prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff handled asset forfeiture.
The indictment is a result of Organized Crime Drug Enforcement Task Force (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
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-20018.
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Court Orders Durham Practitioner to Pay $500,000 for Writing Unauthorized Prescriptions for Controlled SubstancesRead the Press Release
GREENSBORO - United States Attorney for the Middle District of North Carolina Sandra J. Hairston announced today that a federal court entered a consent judgment ordering Sharon Raynes Halliday (Halliday) and her practice, RAPHA Healthcare Services, LLC (RAPHA), located in Durham, to pay $500,000 in civil penalties to resolve allegations that she violated the Controlled Substances Act and the False Claims Act by writing invalid prescriptions and by causing Medicare and North Carolina Medicaid to pay for those prescriptions.
The consent judgment resolves a complaint filed by the United States and the State of North Carolina on July 17, 2022, alleging that Halliday wrote prescriptions for controlled substances without authorization, and, through RAPHA, caused Medicare and Medicaid to pay for these unauthorized and invalid prescriptions. The complaint alleges that Halliday obtained a medical school faculty license, also known as a faculty limited license, under false pretenses from Duke University Medical School. A faculty limited license is intended to allow medical schools in North Carolina to benefit from expertise or specialized skills of physicians who are not otherwise eligible for full licensure in North Carolina. The faculty limited license only allows physicians holding such license to practice to the extent authorized by its sponsoring university. According to the complaint, Duke University never authorized Halliday to write prescriptions, nor was Halliday authorized to open RAPHA, which had multiple locations.
Halliday and her practice, RAPHA, agreed to pay the $500,000 civil penalty and be bound by the terms of the consent judgment.
“It is essential to the health and safety of all citizens that medical practitioners only write prescriptions for controlled substances when authorized and legitimate,” said U.S. Attorney Hairston. “The laws surrounding prescriptions exist to ensure the legitimacy and safety of every controlled substance prescription, and our office will continue to hold responsible those violating these laws.”
The resolutions obtained in this matter were the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Drug Enforcement Administration, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The United States was represented by Assistant U.S. Attorney Rebecca Mayer.
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Convicted Sex Offender Sentenced to Federal Prison for Illegal Reentry to the United StatesRead the Press Release
PROVIDENCE, RI – A convicted sex offender deported to his native Guatemala from the United States in April 2019 following his conviction and incarceration on a Rhode Island state charge of indecent solicitation of a minor was sentenced today to twelve months and one day in federal prison for illegally reentering the United States, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, Carlos Gregorio Santos, 52, was arrested by Providence Police on September 29, 2023, following an investigation into an alleged altercation between himself and another man over a dispute about wages. At the time of his arrest, in an apparent effort to shield his true identity, the defendant provided police with a false name and false date of birth. The FBI later confirmed his real identity.
Santos pleaded guilty in U.S. District Court on February 15, 2024, to a charge of illegal reentry after removal. He was sentenced today by U.S. District Court Judge Mary S. McElroy to twelve months and one day in prison to be followed by one year of federal supervised release. Santos faces deportation upon completion of his current term of incarceration.
The case was prosecuted by Assistant U.S. Attorney Julie M. White.
The matter was investigated by U.S. Immigration and Custom Enforcement, with the assistance of the FBI and Providence Police Department.
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Companies that Own and Operate Oil Tanker Plead Guilty to Environmental CrimesRead the Press Release
Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.
Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG.The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.
The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.
“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”
“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”
“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."
“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.”
The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.
The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.
Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdfCompanies that Own and Operate Oil Tanker Plead Guilty to Environmental CrimesRead the Press Release
Two related companies that operated the motor tanker PS Dream – Prive Overseas Marine LLC and Prive Shipping Denizcilik Ticaret – pleaded guilty today to conspiracy, knowingly violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice related to the falsification of the tanker’s Oil Record Book, which is a required log.
Exhibit 1 in U.S. v. Prive Overseas Marine, LLC and Prive Shipping Denizcilik Ticaret, A.S., case number 24-cr-00074. Credit: USCG.The guilty pleas were entered in federal court in New Orleans before Chief U.S. District Court Judge Nannette Jolivette Brown. If the court approves the plea agreement, the companies will be fined a total of $2 million and serve four years of probation. Separate charges have been filed against Captain Abdurrahman Korkmaz, a Turkish national who was the ship’s master.
The criminal case stems from the report of a crew member who, on Jan. 11, 2023, contacted the Coast Guard in New Orleans, which was the next port-of-call, and shared a video showing oil being pumped overboard and trailing behind the tanker. When the ship arrived in New Orleans two weeks later, this individual and another crew member blew the whistle and provided evidence to the Coast Guard. Video and photographic images were filed in court today by the prosecutors.
“Deliberate pollution from ships, intentional falsification of records and obstruction of justice are serious environmental crimes that will be vigorously prosecuted to the full extent of the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Maritime laws regulating pollution from ships are intended to ensure that ocean waters are not used as a dumping ground.”
“This case involved deceit and willful pollution, and this prosecution is intended to hold both the corporations and individuals accountable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Criminal prosecutions are needed to deter deliberate efforts to circumvent our Nation’s anti-pollution laws. Importantly, $500,000 of the criminal penalty will go toward environmental protection of the marine environment in our area.”
“Today's outcome sends a powerful message: those who falsify logs and take deliberate actions to conceal pollution will face significant consequences,” said Captain Greg Callaghan, Deputy Commander of U.S. Coast Guard (USCG) Sector New Orleans. “The Coast Guard and our partners remain steadfast in our shared commitment to safeguarding our waters and holding accountable those who threaten our marine ecosystems. We encourage individuals to continue reporting any suspicious activities, as each report plays a crucial role in protecting the marine environment."
“It is long past time for the maritime industry to meet its obligations under international law and stop illegal pollution from ships,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Illegal ocean dumping and falsifying records to conceal those violations will not be tolerated by EPA and our federal law enforcement partners.”
The falsified logs, presented to the Coast Guard during its inspection, were intended to conceal the fact that the crew had dumped oil-contaminated waste overboard on the voyage to New Orleans and was not complying with MARPOL Annex I, an international treaty regulating oil pollution from ships. According to court documents, the ship’s master ordered crew members to pump overboard from the residual oil tank, which contained oily waste. A portable pump placed inside the tank and connected to a long flexible hose was used to discharge directly into the ocean without any required pollution prevention equipment or monitoring. The waste oil, including sludge, originated in the engine room and had been improperly transferred into the residual oil tank on the deck of the ship by a prior crew. Senior managers at Prive Shipping were aware that the oil-contaminated waste remained in the tank and were informed by the ship’s master that it had been dumped overboard.
The proposed $2 million criminal penalty includes $500,000 in organizational community service payments that will fund various maritime environmental projects in the Eastern District of Louisiana. Those projects will be managed by the congressionally established National Fish & Wildlife Foundation. The court also has authority to award up to $500,000, half of the APPS portion of the fine, to the whistleblowers that provided evidence leading to conviction.
Prive Overseas Marine is based in Dubai and Prive Shipping is based in Turkey. The corporations were charged with four felonies: conspiracy, an APPS violation and two counts of obstruction of justice. Captain Korkmaz was charged with two counts: a violation of APPS and obstructing the Coast Guard’s inspection of the ship.
The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from USCG Sector New Orleans.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Ryan Connors of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys G. Dall Kammer and Christine M. Calogero for the Eastern District of Louisiana are prosecuting the case.
Exhibits in U.S. v. Prive Overseas et al. 24-cr-00074.pdf
Columbia Man Sentenced to 15 Years for Armed Bank Robbery in BoonvilleRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was involved in a string of armed robberies across the state has been sentenced in federal court for the armed robbery of a Boonville, Mo., bank.
Drake Adam Stockton-Kenney, 32, was sentenced by U.S. District Judge Rosann A. Ketchmark on Monday, May 20, to 15 years in federal prison without parole. The court ordered the federal sentence to be served consecutively to the state sentence he is currently serving for a robbery conviction in a separate and unrelated case.
On Oct. 6, 2023, Stockton-Kenney pleaded guilty to one count of armed bank robbery. Stockton-Kenney admitted that he stole $22,027 from Alliant Bank in Boonville on June 25, 2021. Stockton-Kenney pointed a Taurus 9mm semi-automatic handgun at bank employees and ordered them to put their hands up. After putting the money in a white shopping bag, Stockton-Kenney ordered the employees to lie on the floor and count to 60 as he left the bank.
A nearby resident saw Stockton-Kenney cross her yard and get into a vehicle immediately after the robbery. Within about 10 minutes of the robbery, a license plate reader captured the license plate of the Chevrolet Spark rented by Stockton-Kenney traveling on Interstate 70.
According to court documents, Stockton-Kenney was involved in a string of robberies across the state between April 17 and June 25, 2021, committed within weeks of his release from a prior robbery sentence. Stockton-Kenney also robbed Check into Cash in Moberly on April 17, 2021; World Finance in Mexico on May 4, 2021; Advance America in Marshall on May 6, 2021; Check ‘n Go in Hannibal on May 20, 2021; and Alliant Bank in Pilot Grove on June 2, 2021. In each of those robberies, Kenney brandished a firearm and threatened to shoot anyone who did not comply with his demands.
Under the terms of his plea agreement, the government dismissed federal charges related to the additional robberies but took them into account in seeking a longer sentence than the federal sentencing guidelines recommendation.
Stockton-Kenney’s history of criminal activity includes felony convictions for two burglaries, tampering with a motor vehicle, and robbery. Stockton-Kenney committed the robbery four months after being paroled on his first three convictions in 2011. Stockton-Kenney remained in custody for his robbery conviction until Feb. 21, 2021, when he was again paroled. Stockton-Kenney’s most recent spree of criminal conduct began weeks after his February 2021 parole.
This case was prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County, Mo., Sheriff’s Department, the Booneville, Mo., Police Department, the Columbia, Mo., Police Department, the Cooper County, Mo., Sheriff’s Department, the Hannibal, Mo., Police Department, the Marion County, Mo., Sheriff’s Department, the Marshall, Mo., Police Department, the Mexico, Mo., Police Department, the Moberly, Mo., Police Department, the Pilot Grove, Mo., Police Department, the Missouri State Highway Patrol, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Columbia County Man Indicted for Forcibly Assaulting and Threatening to Kill Two United States Secret Service AgentsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Eric Evan Brown (57, White Springs) with interstate transmission of a threat to injure, threatening a United States Secret Service Protectee, two counts of forcibly assaulting a federal officer without use of a deadly weapon, and two counts of threatening a federal official. If convicted, Brown faces up to 10 years in federal prison for each count of threatening a federal official, up to 8 years in prison for each count of forcibly assaulting a federal officer, and up to 5 years in prison for the transmission of a threat and threat against a U.S. Secret Service Protectee. Brown made his appearance in federal court on May 20, 2024, and was ordered detained.
According to court documents, on April 7, 2024, Brown posted on X/Twitter a threatening communication to kill the spouse of a former president of the United States. On May 9, 2024, while two U.S. Secret Service agents were conducting a follow up investigation regarding the threat against the Protectee, Brown threatened to assault and murder both agents.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Secret Service – Jacksonville Field Office, with assistance from the Columbia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Chinese national charged in “pig butchering” schemeRead the Press Release
TYLER, Texas – A Chinese national has been charged with participating in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Fei Liao, 29, of San Gabriel, California, was brought into federal custody on May 3, 2024. On May 20, 2024, Liao waived arraignment and pleaded not guilty to the charges. The indictment charges Liao with conspiracy to commit wire fraud and conspiracy to commit money laundering. Liao and others allegedly conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency investment scams – also known as “pig butchering” – and other fraudulent schemes. Then, they allegedly transferred the funds involved in the fraud schemes to domestic and international financial institutions. Each of the charges for conspiracy to commit wire fraud and conspiracy to commit money laundering carry a maximum statutory sentence of 20 years in federal prison.
According to court documents, pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme operating fraudulent cryptocurrency investment platforms and applications, where victims are persuaded to make financial investments. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their money, often resulting in significant losses for the victims.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the U.S. Secret Service, Tyler Resident Office. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells.
If you or someone you know is a victim, report it to the www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
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Cedar Rapids Man Charged with Attempted Sex Trafficking of a Child and Destruction of EvidenceRead the Press Release
Joshua Johnson, age 49, of Cedar Rapids, Iowa, has been charged with attempted sex trafficking of a child and destruction of evidence. The charges are contained in an Indictment filed on May 9, 2024, in United States District Court in Cedar Rapids.
The Indictment alleges that, in December 2023, Johnson attempted to recruit, entice, obtain, patronize, and solicit a person he believed to be under 14 to engage in a commercial sex act. The Indictment also alleges that Johnson destroyed electronic data with the intent to impede, obstruct, and influence the investigation.
If convicted, Johnson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Johnson appeared for a detention hearing on May 20, 2024, in federal court in Cedar Rapids and was held without bond. Johnson’s next appearance for trial is set for July 15, 2024.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 24-38.
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California Woman Sentenced to Nearly Four Years in Federal Prison for Trafficking Methamphetamine in Rhode IslandRead the Press Release
PROVIDENCE, RI – A Mexican national who, at the direction of an individual incarcerated in a Maine prison, participated in the delivery of four pounds of methamphetamine to a courier who drove to Rhode Island from Maine to take possession of the drugs, has been sentenced to nearly four years in federal prison, announced United States Attorney Zachary A. Cunha.
According to court documents, while under law enforcement surveillance in Rhode Island on June 6, 2022, Nora Cecilia Carranza Reyes, 52, of Huntington Park, CA, participated in the delivery of a paper bag that contained four pounds of crystal meth to an individual who, at the direction of the Maine inmate, traveled to Rhode Island from Maine to retrieve the drugs. That individual was kept under constant law enforcement surveillance while returning to Maine, and the drugs were seized by law enforcement during a traffic stop in Maine.
A court-authorized search of Carranza Reyes’ motor vehicle in Rhode Island at the time of her arrest on June 8, 2022, resulted in the discovery of more than two-and one-half pounds of methamphetamine stashed inside a duffel bag and in a sophisticated hide located within the engine compartment of the vehicle.
Carranza Reyes pleaded guilty on January 25, 2024, to a charge of conspiracy to distribute and possess with intent to distribute methamphetamine and to a charge of possession with intent to distribute methamphetamine. She was sentenced today by U.S. District Court Judge Mary S. McElroy to forty-six months of incarceration to be followed by three years of federal supervised release.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by the Drug Enforcement Administration.
United States Attorney Cunha thanks the United States Attorney’s Office for the District of Maine and the DEA in Bangor, Maine, for their assistance.
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Brooklyn Man Sentenced to Nearly Six Years in Prison for Role in Drug Trafficking Conspiracy Involving over 50 Kilograms of CocaineRead the Press Release
BOSTON – A Brooklyn man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) wherein he transported kilograms of cocaine from New York to Boston in August 2020.
Dinelson Hernandez-Rodriguez, 30, was sentenced by U.S. District Court Judge Patti B. Saris to 68 months incarceration and three years of supervised release. In February 2024, a jury found Hernandez-Rodriguez guilty of conspiracy to distribute and to possess with intent to distribute cocaine.
In October 2019, an investigation began into a DTO trafficking cocaine and fentanyl in Boston and Taunton. Intercepted communications established that the DTO was supplied in part by individuals in New York. In August 2020, Hernandez-Rodriguez drove from New York to Hyde Park with kilograms of cocaine hidden in a trap compartment inside a Honda Pilot automobile. One day prior, a co-conspirator also transported kilograms of cocaine from New York to Hyde Park. In total, Hernandez-Rodriguez and his co-conspirator transported more than 50 kilograms of cocaine intended for distribution in Boston.
After cocaine was distributed in the Boston area, Hernandez-Rodriguez attempted to transport $240,240 in drug proceeds – again, hidden in the trap inside his car – back to New York but was intercepted by law enforcement.
Hernandez-Rodriguez is the ninth defendant to be convicted in this case, either by guilty plea or following a jury trial.
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 Connecticut State Police and the Boston, Taunton and Stratford (Conn.) Police Departments. Assistant U.S. Attorneys Samuel R. Feldman and K. Nathaniel Yeager of the Narcotics & Money Laundering Unit are prosecuting the case.
This case 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 documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bristol Man Admits Committing Numerous Violent Robberies Across Connecticut in 2022Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LONNY CROSS, 45, of Bristol, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to charges related to his commission of numerous violent robberies across Connecticut in September and October 2022.
According to court documents and statements made in court, between September 5 and October 13, 2022, Cross committed 37 robberies and attempted robberies of gas station convenience stores, mini-markets, and liquor stores in North Branford, Waterbury, Wolcott, Plymouth, New Haven, North Haven, Orange, West Haven, Wethersfield, Bristol, Southington, Naugatuck, Watertown, Franklin, Norwich, Waterford, Groton City, Stonington, Ledyard, Darien, Norwalk, Stratford, and Seymour, Connecticut, and Port Chester, New York. (See attached list) Several of the robberies occurred on the same day, only minutes apart. Cross typically traveled to the victim-store with an accomplice who would sometimes enter the store to determine the number of employees and customers in the store, exit the store, and then report that information to Cross. Cross then entered the store, displayed a knife or facsimile firearm while threatening employees, and stole cash and other items.
On October 14, 2022, investigators conducted court-authorized searches of Cross’s residence and a black 2014 Chevrolet Impala that Cross was known to drive. The search of the residence revealed clothing consistent with clothing worn by Cross in several of the robberies, as well as quantities of heroin, crack cocaine, and narcotics paraphernalia. A search of the car revealed 120 bags heroin, approximately 14 grams of crack, and a knit hat matching the description of one worn by Cross during a robbery the day before. Cross, who was on state parole, was arrested on state charges on that date. He has been detained since his arrest.
Cross pleaded guilty to one count of conspiracy to commit Hobbs Act Robbery, and one count of Hobbs Act Robbery. Judge Dooley scheduled sentencing for August 21, at which time Cross faces a maximum term of imprisonment of 40 years.
This investigation has been conducted by the FBI, Connecticut State Police, Orange Police Department, Port Chester (N.Y.) Police Department, and numerous other police departments from the municipalities where the robberies occurred, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff.
Baltimore BGF Gang Member Sentenced to 28 Years in Federal Prison for Racketeering Conspiracy Charge, Including MurderRead the Press Release
Baltimore, Maryland – On Tuesday, May 21, U.S. District Judge James K. Bredar sentenced Wayne Prince, a/k/a “Taz,” age 24, of Baltimore to 28 years imprisonment, followed by 5 years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement and other court documents, beginning in 2018 Prince was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder, a drug distribution conspiracy, possession with intent to distribute drugs and robbery. BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland.
As detailed in his plea agreement, on August 7, 2018, Prince and two co-conspirators attempted to murder an individual at a home that the intended target owned and was having renovated. A construction crew was on site at the time. During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers using a .40 caliber handgun. They also shot a second construction worker in the head, but that person survived the attack.
Later that day, Prince bragged to an associate during a recorded jail call, “I’m about to get some money soon,” referring to an expected payment from Co-Conspirator 2 for Prince’s role in the attempted murder of the target. From August 7 to August 9, 2018, Prince exchanged messages with a now-deceased member of Co-Conspirator 2’s inner circle, in which Prince made arrangements to collect payment from Co-Conspirator 2 for his role in the attempted murder of the target.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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20 May 2024
“Incognito Market” Owner Arrested for Operating One of the Largest Illegal Narcotics Marketplaces on the InternetRead the Press Release
Rui-Siang Lin, also known as Ruisiang Lin, 林睿庠, Pharoah, and faro, 23, of Taiwan, was arrested today in connection with his operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. Lin was arrested at John F. Kennedy Airport on May 18, and will be presented in Manhattan federal court before U.S. Magistrate Judge Willis later today.
“Drug traffickers who think they can operate outside the law on the dark web are wrong,” said Attorney General Merrick B. Garland. “As alleged, Rui-Siang Lin was the architect of Incognito, a $100 million dark web scheme to traffic deadly drugs to the United States and around the world. The long arm of the law extends to the dark web, and we will bring to justice those who try to hide their crimes there.”
As alleged in the complaint and the indictment, Incognito Market was an online narcotics bazaar that existed on the dark web. Incognito Market formed in October 2020. Since that time, and through its closing in March, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines. Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.” Lin operated the Incognito market under the online pseudonym “Pharoah” or “faro.” As “Pharoah” — the leader of Incognito market — Lin supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.
“As alleged, Rui-Siang Lin operated a sophisticated and dangerous online narcotics marketplace through which he profited millions of dollars at the community’s expense,” said U.S. Attorney Damian Williams for the Southern District of New York. “The dedicated prosecutors from the Southern District of New York and our law enforcement partners will pursue criminal actors regardless of whether they operate on street corners or in the dark corners of the internet. The so-called ‘dark web’ is not a safe haven for those who seek to break the law.”
“For nearly four years, Rui-Siang Lin allegedly operated ‘Incognito Market,’ one of the largest online platforms for narcotics sales, conducting $100 million in illicit narcotics transactions and reaped millions of dollars in personal profits,” said Assistant Director in Charge James Smith of the FBI New York Field Office. “Under the promise of anonymity, Lin’s alleged operation offered the purchase of lethal drugs and fraudulent prescription medication on a global scale. The FBI is committed to targeting and dismantling all criminal enterprises, especially those whose leaders distribute illegal substances on the dark web.”
“As alleged, Rui-Siang Lin’s brazen operation resulted in the illicit sale of over $100 million in narcotics, including those that were mislabeled and later found to include deadly fentanyl,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “The defendant’s greed and disregard for others was further demonstrated by his alleged extortion attempt during the platform’s final days. The El Dorado Task Force’s Darkweb and Cryptocurrency Task Force leverages cutting-edge techniques to target even the Internet’s most savvy criminals. HSI New York, in coordination with law enforcement partners, remains resolute in its commitment to protecting the public from individuals utilizing dangerous means to make a profit.”
“The arrest of ‘Incognito Market’ owner Rui-Siang Lin is a result of the continued working relationship the DEA has with our law enforcement partners in targeting individuals who use the dark web as a marketplace to promote the sale of illicit narcotics,” said Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration (DEA)’s New York Division. “Mr. Lin’s alleged actions of putting profits before public health were not only reckless and dangerous, but unconscionable. We will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives face justice.”
“The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences,” said Special Agent in Charge Charles Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Kansas City Field Office. “We will continue to monitor, investigate, and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”
“This arrest underscores the dedicated, ongoing efforts of law enforcement to identify and dismantle illicit drug networks operating from every shadowy recess of the marketplace,” said Commissioner Edward A. Caban of the New York Police Department (NYPD). “I commend our NYPD investigators and all of our state and federal partners for their unwavering commitment to public safety.”
Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is picture below:
After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics and misbranded prescription medication, including, heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below:
Listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.
Each listing on Incognito Market was sold by a particular vendor. To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee. In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers. Lin collected millions of dollars of profits from Incognito. To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected. The bank enabled buyers and sellers to stay anonymous from each other. The bank’s graphic interface is picture below:
If convicted, Lin faces a mandatory minimum penalty of life in prison for engaging in a continuing criminal enterprise; a maximum penalty of life in prison for narcotics conspiracy; a maximum penalty of 20 years in prison for money laundering; and a maximum penalty of five years in prison for conspiracy to sell adulterated and misbranded medication. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, HSI, DEA, FDA-OCI, and NYPD investigated the case.
Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo for the Southern District of New York are 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-drive, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Incognito Market” Owner Arrested for Operating One of the Largest Illegal Narcotics Marketplaces on the InternetRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Charles Grinstead, the Special Agent in Charge of the Kansas City Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations (“FDA-OCI”); Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”); and Elana Iatarola, the Special Agent in Charge of the Cincinnati Field Office of the FBI, announced today the arrest of RUI-SIANG LIN, a/k/a “Ruisiang Lin,” a/k/a “林睿庠,” a/k/a “Pharoah,” a/k/a “faro,” in connection with his operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. LIN was arrested at John F. Kennedy Airport on May 18, 2024, and will be presented in Manhattan federal court before U.S. Magistrate Judge Willis later today.
U.S. Attorney Damian Williams said: “As alleged, Rui-Siang Lin operated a sophisticated and dangerous online narcotics marketplace through which he profited millions of dollars at the community’s expense. The dedicated prosecutors from the Southern District of New York and our law enforcement partners will pursue criminal actors regardless of whether they operate on street corners or in the dark corners of the internet. The so-called ‘dark web’ is not a safe haven for those who seek to break the law.”
Attorney General Merrick B. Garland said: “Drug traffickers who think they can operate outside the law on the dark web are wrong. As alleged, Rui-Siang Lin was the architect of Incognito, a $100 million dark web scheme to traffic deadly drugs to the U.S. and around the world. The long arm of the law extends to the dark web, and we will bring to justice those who try to hide their crimes there.”
FBI Assistant Director in Charge James Smith said: “For nearly four years, Rui-Siang Lin allegedly operated ‘Incognito Market,’ one of the largest online platforms for narcotics sales, conducting $100 million in illicit narcotics transactions and reaping millions of dollars in personal profits. Under the promise of anonymity, Lin’s alleged operation offered the purchase of lethal drugs and fraudulent prescription medication on a global scale. The FBI is committed to targeting and dismantling all criminal enterprises, especially those whose leaders distribute illegal substances on the dark web.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Rui-Siang Lin’s brazen operation resulted in the illicit sale of over $100 million in narcotics, including those that were mislabeled and later found to include deadly fentanyl. The El Dorado Task Force’s Darkweb and Cryptocurrency Task Force leverages cutting-edge techniques to target even the Internet’s most savvy criminals. HSI New York, in coordination with law enforcement partners, remains resolute in its commitment to protecting the public from individuals utilizing dangerous means to make a profit.”
DEA Special Agent in Charge Frank A. Tarentino III said: “The arrest of ‘Incognito Market’ owner Rui-Siang Lin is a result of the continued working relationship the DEA has with our law enforcement partners in targeting individuals who use the dark web as a marketplace to promote the sale of illicit narcotics. Mr. Lin’s alleged actions of putting profits before public health were not only reckless and dangerous, but unconscionable. We will continue to make sure those who hide behind a keyboard and use the dark web to profit off lives face justice.”
FDA-OCI Special Agent in Charge Charles Grinstead said: “The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences. We will continue to monitor, investigate and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”
NYPD Commissioner Edward A. Caban said: “This arrest underscores the dedicated, ongoing efforts of law enforcement to identify and dismantle illicit drug networks operating from every shadowy recess of the marketplace. I commend our NYPD investigators and all of our state and federal partners for their unwavering commitment to public safety.”
As alleged in the Complaint and the Indictment unsealed today:[1]
Incognito Market was an online narcotics bazaar that existed on the dark web. Incognito Market formed in October 2020. Since that time, and through its closing in March 2024, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines. Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.” LIN operated the Incognito market under the online pseudonym “Pharoah” or “faro.” As “Pharoah” — the leader of Incognito market — LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.
Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is picture below:
After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics and misbranded prescription medication, including, heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below:
Listings included offerings of prescription medication that was advertised as being authentic but was not. For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market. Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.
Each listing on Incognito Market was sold by a particular vendor. To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee. In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers. LIN collected millions of dollars of profits from Incognito. To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected. The bank enabled buyers and sellers to stay anonymous from each other. The bank’s graphic interface is picture below:
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RUI-SIANG LIN, 23, of Taiwan, is charged with one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum sentence of life in prison; one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of money laundering, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to sell adulterated and misbranded medication, which carries a maximum potential sentence of five years in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI, HSI, DEA, FDA-OCI, and NYPD.
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-drive, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, Indictment and the descriptions of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Zone Fifth Street Gang Members Convicted for Racketeering (RICO), Drug, and Firearms Charges in Federal CourtRead the Press Release
DAVENPORT, Iowa – A federal jury in Davenport convicted five gang members yesterday, May 16, 2024, for Conspiracy to Engage in Racketeering Activity, Possession with Intent to Distribute a Controlled Substance, and Possession of Firearms and Ammunition as a Felon.
According to public court documents and evidence presented during the two-week jury trial, Don Christopher White, Jr., 37, Raheem Jacques Houston, 30, Deaguise Ramont Hall, 34, Devell Carl Lewis, 35, and Simmeon Terrell Hall, 34, among others, were members and associates of a criminal organization or Enterprise known as the “Arsenal Courts Posse a/k/a Zone Fifth a/k/a Fifth Street Mafia a/k/a Rock Town Money Getters (RTMG) a/k/a Money Team,” whose members and associates engaged in acts of violence. The Enterprise’s origins began in Rock Island, Illinois, in the late 1990s and early 2000s. At that time, members and associates of the Enterprise referred to themselves as the Arsenal Courts Posse. Arsenal Courts was the former name of Century Woods, a housing complex which members or associates of the Enterprise lived in or frequented on a regular basis. The housing complex is located in the 1400 block of Fifth Street. Between 2009 and 2011, the younger members and associates of the Enterprise began referring to themselves as “Zone Fifth” or “Fifth Street Mafia” continuing to represent the location of the Enterprise’s territory. As alleged in the indictment, the principal purposes and objectives of the Enterprise were to distribute controlled substances, obtain money and things of value, and earn and maintain respect in the Quad Cities.
White, Houston, Lewis, Deaguise Hall, and Simmeon Hall were all found guilty of conspiracy to engage in racketeering activity. As part of this racketeering activity, the jury further found that this gang committed multiple acts involving murder and trafficking in controlled substances.
Additionally, Houston and White were found guilty of felon in possession of firearms and ammunition; Deaguise Hall and Simmeon Hall were found guilty of possession of cocaine base with an intent to distribute.
Defendants’ sentencings have not been scheduled. White faces a maximum of 40 years in prison. Houston faces a maximum of 30 years in prison. Lewis, Deaguise Hall and Simmeon Hall each face a maximum of 20 years in prison. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors. There is no parole in the federal court system.
Co-defendants, Devante Atwell French, Michael Linn Cross, Lashawn D. James Hensley, Ricky Lee Childs, Jr., Timothy Justin Beaver, Rasheem Damonte Bogan, Kylea Dapri Cartwright, Jr., and Cortez Deangelo Cooper, Jr. were also charged as part of the investigation. Jury trial for co-defendants French, Cross, and Hensley, is scheduled for August 5, 2024. Jury trial for co-defendants Beaver, Bogan, Cartwright, Childs and Cooper is scheduled for November 4, 2024.
“The Quad Cities community deserves to go about their days free from the threat of violence used by these defendants,” stated United States Attorney Richard Westphal. “Whether individually or as part of a gang, people that choose to use violence as part of their criminal enterprise will be held accountable. Our gratitude to the multiple local, state and federal law enforcement officers who spent countless hours working on this investigation. Showing, as police officers do every day, that the protection of the community is their highest priority.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, the Rock Island Police Department, the Iowa Department of Criminal Investigation, the Iowa State Patrol, the Moline Police Department, the Scott County Sheriff’s Office, the Bettendorf Police Department, the Des Moines Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco and Firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Window Rock Man Sentenced for Sexual AbuseRead the Press Release
ALBUQUERQUE – A Window Rock man was sentenced to three years in prison after pleading guilty to abusive sexual conduct that occurred 20 years prior.
There is no parole in the federal system.
According to court documents, in 2021, Jane Doe reported that Tom Tso, 85, an enrolled member of the Navajo Nation, had sexually abused her approximately 20 years earlier when she was between 15 and 17 years old while she was asleep at Tso's home. Jane Doe stated that she woke up to find Tso's hand inside her pants. She kicked him away, locked herself in the bathroom, and he tried to unlock the door to get to her before leaving.
The FBI interviewed Tso, a Navajo medicine man and Native American Church Road Man, in December 2021 and March 2022. Tso admitted to touching Doe inappropriately, but he denied penetrating her. He claimed that she had initiated sexual contact.
Jane Doe explained that the delay in reporting was due to fear, and that she reported these years later because, "There are children/women still in his reach" as a medicine man and road man.
After completing his term of imprisonment, Tso will be required to serve five years of supervised release and must register as a sex offender.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
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Warren County Man Sentenced to 2 Years in Federal Prison for Federal Sex Offender Registry ViolationRead the Press Release
Bowling Green, KY – A Warren County, Kentucky man was sentenced today to 2 years in federal prison for failing to update his Sex Offender Registration as required by the Sex Offender Registration and Notification Act.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and United States Marshal Gary B. Burman of the Western District of Kentucky made the announcement.
According to court documents, Kelly Lamont Mason, 52, of Bowling Green, Kentucky, was sentenced to 2 years in prison, followed by a 5-year term of supervised release, for one count of failing to register under the Sex Offender Registration and Notification Act (SORNA). Mason was required to register by reason of a conviction under state law and knowingly failed to update a registration as required by SORNA.
On June 26, 2003, Mason pleaded guilty to counts of sexual battery by an authority figure in violation of Tenn. Code Ann. § 39-13-527, in the 20th Judicial District, Judicial Division III, Criminal Court of Davidson County, Tennessee, Case Number 2002-C-1636. This prior criminal conviction carries a lifetime registration requirement under SORNA, which Mason was both aware of and previously affirmed his knowledge of by signed document. In the summer of 2023, Mason moved to Warren County, Kentucky, where he knowingly failed to update his SORNA registration.
There is no parole in the federal system.
The case was investigated by the United States Marshals Service.
Assistant U.S. Attorney R. Nicholas Rabold, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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U.S. Attorney’s Office for D.C. Aids Justice Department’s Creation of Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
WASHINGTON - U.S. Attorney Matthew M. Graves commends the announcement of the Department of Justice’s new resource for prosecutors, “Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims,”
The announcement was made today in Dallas, TX at the Conference on Crimes Against Women by Rosemarie Hidalgo, Director of the Office on Violence Against Women (OVW). The guide, written by prosecutors for prosecutors, sets out five principles that, if implemented, will lead to better outcomes for victims, safer communities, and greater accountability for perpetrators of sexual assault and domestic violence.
“The framework announced today reaffirms our commitment to expanding access to justice for all survivors, who deserve respect and the right to be heard,” said the Department’s Office on Violence Against Women (OVW) Director Rosie Hidalgo. “Enhancing the prosecution response to sexual assault and domestic violence in a trauma-informed manner is a key piece in ending gender-based violence, as part of a broader coordinated community response that includes services and support for survivors, and can have a real, immediate impact on the safety of survivors and entire communities.”
“This Office sees daily the impact of domestic violence,” said U.S. Attorney Graves. “It is why we have so many dedicated and highly trained prosecutors, victim advocates, and staff members working in the space to support survivors, and why we have implemented innovative and effective programs such as the Sexual Assault Cold Case Initiative and the Intimate Partner Violence Prevention Initiative created and staffed by members of the Office’s Sexual Assault and Domestic Violence Section. We were proud to participate in this effort and to help draft a framework that will be implemented across the country.”
Declinations of meritorious allegations may result from misconceptions about how crimes involving sexual assault and domestic violence are committed and reported, how victims give their accounts, and the evidence required to prove their accounts. This guide equips prosecutors to build provable cases by: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) meeting with victims and working with investigators and victim specialists to do so; (3) using the law and evidentiary rules effectively; (4) being thoughtful about what justice and accountability look like; and (5) sustaining a productive, healthy, and committed workforce by redefining success– all of which are rooted in a prosecutor’s primary obligation to seek the truth and uphold the U.S. Constitution and the rule of law.
Staff from the U.S. Attorney’s Office for D.C. joined more than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions to aid the developers of this guide. This guide is designed to encourage prosecutors with all levels of experience to implement its principles when evaluating, investigating, and prosecuting allegations involving sexual assault and domestic violence. In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles. This guide further serves as a complement to the Justice Department’s 2022 updated guidance on Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias.
U.S. Attorney's Office for the Western District of North Carolina Commends the Release of Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King of the Western District of North Carolina commends the announcement of the Department of Justice’s new resource for prosecutors, “Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims.”
The announcement was made today in Dallas, Texas, at the Conference on Crimes Against Women by Rosemarie Hidalgo, Director of the Office on Violence Against Women (OVW). The guide, written by prosecutors for prosecutors, sets out five principles that, if implemented, will lead to better outcomes for victims, safer communities, and greater accountability for perpetrators of sexual assault and domestic violence.
“The framework announced today reaffirms our commitment to expanding access to justice for all survivors, who deserve respect and the right to be heard,” said the Department’s Office on Violence Against Women (OVW) Director Rosie Hidalgo. “Enhancing the prosecution response to sexual assault and domestic violence in a trauma-informed manner is a key piece in ending gender-based violence, as part of a broader coordinated community response that includes services and support for survivors, and can have a real, immediate impact on the safety of survivors and entire communities.”
“I commend the guidance announced today and reaffirm my Office’s dedication to strengthening the prosecution of sexual assault and domestic violence crimes in the Western District of North Carolina,” said U.S. Attorney King. “This framework is a vital resource for federal prosecutors because it underscores that justice and healing are interconnected and mutually reinforcing concepts. The guidance guarantees that we will do all we can to hold perpetrators accountable for their actions, while ensuring that we support victims and survivors every step of the process, protect their health and safety, respect their experiences, and promote their healing.”
Declinations of meritorious allegations may result from misconceptions about how crimes involving sexual assault and domestic violence are committed and reported, how victims give their accounts, and the evidence required to prove their accounts. This guide equips prosecutors to build provable cases by: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) meeting with victims and working with investigators and victim specialists to do so; (3) using the law and evidentiary rules effectively; (4) being thoughtful about what justice and accountability look like; and (5) sustaining a productive, healthy, and committed workforce by redefining success– all of which are rooted in a prosecutor’s primary obligation to seek the truth and uphold the U.S. Constitution and the rule of law.
In making today’s announcement, U.S. Attorney King said, “The framework emphasizes the importance of supporting and advocating for victims and survivors of domestic violence and sexual assault within our criminal justice system. Equally important are our ongoing efforts to educate the public about sexual assault and domestic violence prevention, and to administer federal grants that support organizations dedicated to individuals whose lives have been affected by gender-based violence. When victim advocacy remains central in our collective efforts, we ensure that impacted individuals have access to the care, support, and resources they need and the justice they deserve, and we empower communities to take proactive steps to foster safe environments for all.”
More than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions were consulted in developing this guide. This guide is designed to encourage prosecutors with all levels of experience to implement its principles when evaluating, investigating, and prosecuting allegations involving sexual assault and domestic violence. In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles. This guide further serves as a complement to the Justice Department’s 2022 updated guidance on Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias.
For additional information about the U.S. Attorney’s Office please visit our website. Contact details and information about our Victim Witness Unit can be found here.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at https://www.justice.gov/ovw.
Two Northern Kentucky Men Sentenced for Role in Conspiracy to Illegally Distribute FirearmsRead the Press Release
COVINGTON, Ky. – Two Covington men, Cylis Rowe, 23, and Clifton Barnett, 25, have been sentenced, by U.S. District Judge David Bunning, to 124 months and 70 months in prison respectively, for conspiring to distribute firearms to others who could not legally possess them. Rowe’s sentencing also included one count of possession of a firearm in furtherance of drug trafficking.
According to his court documents, in 2022, law enforcement began investigating individuals regularly selling and possessing firearms and machinegun conversion devices, known colloquially as Glock switches, to individuals engaged in drug trafficking and other criminal offenses. The investigation showed that Rowe and Barnett conspired with Demarco Sturgeon, 23, and others, to distribute the firearms illegally. Sturgeon admitted he was aware of the conspiracy’s straw purchases and distributed over 100 firearms between 2020 and 2022.
Evidence showed that Rowe and Barnett purchased numerous firearms, and Sturgeon sold the guns directly, and through Facebook Messenger. Law enforcement searched all three defendants’ residences; at Rowe’s and Sturgeon’s residences, they found firearms and marijuana. Both Rowe and Sturgeon admitted to extensive firearms trafficking and regularly distributed marijuana, while in possession of firearms, and that they possessed the firearms at their residences to protect them against the dangers associated with drug trafficking.
Sturgeon was previously sentenced, in March 2024, to 130 months in prison and five years of supervised release.
Under federal law, Rowe and Barnett must serve 85 percent of their prison sentences. Upon their release from prison, Rowe will be under the supervision of the U.S. Probation Office for five years, and Barnett will be under supervision for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Shawn Morrow Special Agent in Charge, ATF Louisville Field Division, jointly announced the sentences.
The investigation was conducted by ATF. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.
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Tulare County Man Indicted for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — On April 25, 2024, a federal grand jury returned an indictment against Boyce Isaiah Cervantez, 27, of Dinuba, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following his arrest on Friday, May 17.
According to court documents, between March 1, 2024, and March 16, 2024, Cervantez received at least one visual depiction of children engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation and the Dinuba Police Department. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.
If convicted, Cervantez faces a maximum statutory penalty of up to 20 years in prison, with a mandatory minimum of five years in prison, and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Third Mortgage Professional Pleads Guilty to Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — German Antonio Lopez-Velasquez, 55, of Modesto, pleaded guilty today to conspiring to commit bank fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, German Antonio Lopez-Velasquez, a real estate agent, worked with Lisa Santos, 48, of Long Beach, a mortgage loan officer, and Marko Antonio Lopez, 27, of Modesto, a real estate agent and notary public, to obtain fraudulent mortgage loans for properties based in Stanislaus, San Joaquin, and Santa Clara Counties, and elsewhere. The three defendants used false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans.
“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent-in-Charge Mark Kaminsky with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to jeopardize this program and the health and stability of our nation’s housing market.”
Santos pleaded guilty on May 13, 2024, to conspiring to commit bank fraud, and is scheduled to be sentenced on Sept. 30, 2024. Marko Antonio Lopez previously pleaded guilty and was sentenced on April 1, 2024.
Lopez-Velasquez is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Lopez-Velasquez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG) and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
Texas Man Arraigned for Defrauding State and Federal TaxpayersRead the Press Release
CONCORD – A Texas man was indicted for his involvement in a scheme to fraudulently obtain CARES Act funds from the United States government and the State of New York, U.S. Attorney Jane E. Young announces.
Dyetaniel Washington, 29, was indicted on one count of conspiracy to commit wire fraud. Washington was arrested in the Southern District of Texas on May 7, 2024. He appeared in federal court in Concord today, and he was released on conditions. Dyetaniel Washington and his two co-defendants, Kyereem Sackey and Jerred Beniquez, were indicted on October 25, 2023. Sackey was indicted on one count of conspiracy to commit wire fraud and one count of bank fraud. Beniquez was indicted on one count of conspiracy to commit wire fraud.
According to the charging documents, Washington obtained Beniquez’s personal identifying information and provided this information to Sackey. Sackey then used the information to make unemployment insurance claims in the State of New York in Beniquez’s name. On two occasions, the money was deposited into Beniquez’s bank account, and a portion of the money was sent to Washington.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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.
The Federal Bureau of Investigation and the Department of Labor Office of Inspector General led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney John J. Kennedy 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.
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Tahlequah Resident Sentenced for Involuntary Manslaughter and Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kiah John Pritchett, age 39, of Tahlequah, Oklahoma, was sentenced to 63 months for one count of Involuntary Manslaughter in Indian Country, and 63 months for one count of Felon in Possession of a Firearm. The terms will run concurrently.
The charges arose from investigations by the Cherokee County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 15, 2023, Pritchett pleaded guilty to one count of Involuntary Manslaughter, and one count of Felon in Possession of a Firearm. According to investigators, on July 4, 2021, Pritchett gave the victim a ride in his vehicle. An altercation broke out between Pritchett and his passenger along the route. During the altercation, Pritchett unlawfully shot and killed the victim.
Pritchett, who had previously been convicted of a felony punishable by more than one year imprisonment, was prohibited at the time from possessing a firearm.
The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
ATF Dallas Field Division Special Agent in Charge Jeffrey Boshek II said, “Our agents worked countless hours in the pursuit of justice for the victim and his family. ATF is committed to combatting violent crime in our communities no matter how long it takes. There is no amount of time in federal prison that will bring the victim back. Our thoughts and prayers are with the family as we know Pritchett’s time in federal prison won’t ease their pain.”
“I commend the work of law enforcement in compiling an extensive and thorough investigation which allowed the government to prosecute the defendant for unlawfully taking the victim’s life,” said United States Attorney Christopher J. Wilson.
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Pritchett will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Jarrod Leaman and Patrick Flanigan represented the United States.
St. Cloud Man Sentenced to More Than 24 Years in Prison for Enticement of A Child to Engage in Sexual Activity and Possession of Child Sexual Abuse Images and VideosRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Joshua Douglas Dodson (41, St. Cloud) to 24 years and 5 months in federal prison for enticing a minor to engage in sexual activity and possessing images and videos of children being sexually exploited. Dodson entered a guilty plea on November 13, 2023.
According to court documents, in November 2021, investigators received a cyber tip that Dodson had received child sexual abuse material on a social media platform. When the investigation became public knowledge, a child victim (“CV1”) came forward and told investigators that Dodson asked her to sit on his lap and attempted to touch her by putting his hands down her pants. CV1 stated that these events occurred in March 2020.
CV1 and her mother gave investigators authority to take over CV1’s phone and pose as CV1. During conversations with the investigators posing as CV1, Dodson sent multiple pictures of himself nude and a video of him masturbating. The conversation continued with Dodson asking for “naughty pics” of CV1’s private parts in exchange. The conversation then turned to a meeting to have sex on a day that CV1 was supposed to be in school. Dodson joked that CV1 had him “...talking and feeling like I’m 15 again.” In their text exchanges, Dodson warned CV1 to be cautious and delete their communications.
A meeting was agreed to between Dodson and the law enforcement officer posing as CV1 for November 7, 2022. When Dodson arrived as scheduled, an arrest team swarmed his truck and seized his cellphone. The phone contained child sex abuse images that appeared to have been taken using a hidden camera.
This case was investigated by the Federal Bureau of Investigation and the Osceola County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Noah P. Dorman
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springfield, Vermont Man Sentenced to 72 Months for Drug Conspiracy and Possession of Pipe BombRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 20, 2024, Anibal Castro, Jr., 35, of Springfield, Vermont, was sentenced by Chief United States District Judge Geoffrey W. Crawford to a term of 72 months’ imprisonment to be followed by a 3-year term of supervised release. Castro previously pleaded guilty to knowingly possessing a firearm, that is a destructive device, not registered to him in the National Firearms Registration and Transfer Record and conspiracy to distribute controlled substances.
According to court records, on April 6, 2022, while the Springfield Police Department and Vermont State Police were executing a state search warrant at Castro Jr.’s Valley Street residence, they discovered a ten and one-half inch pipe bomb. The pipe was made of aluminum with crimped metal ends covered in tape and had a pyrotechnic fuse extending out from inside the pipe. The words “BYE BYE !!” were written on the outside of the pipe. The pipe contained 650 BB pellets and black powder. The presence of BBs “further weaponized” the device. An examination by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that an explosion of the device would produce blast effects capable of causing property damage, injury or death to people or property nearby. Additionally, from March 2022 to May 5, 2022, Castro Jr. worked with others to distribute heroin, cocaine base, and fentanyl on Valley Street in Springfield and elsewhere. Also, Castro, Jr. armed himself with a firearm in connection with the drug trafficking. A case against Castro Jr.’s co-conspirators is still pending before the United States District Judge Christina Reiss.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the ATF, the Federal Bureau of Investigation, the Vermont Drug Task Force, the Drug Enforcement Administration, Homeland Security Investigations, the Springfield Police Department, the Vermont State Police and the Windsor County State’s Attorney’s Office.
The case was prosecuted by former Assistant U.S. Attorney Joe Perella and Assistant U.S. Attorney Zachary Stendig. Castro, Jr. was represented by Karen Shingler, Esq.
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.
Russian Citizen Charged with Fraud, Selling Access to Victim Computer NetworksRead the Press Release
NEWARK, N.J. – A Russian citizen has been indicted for working as an “access broker” and selling unauthorized access to computer networks, including a victim company in New Jersey, U.S. Attorney Philip R. Sellinger, District of New Jersey.
Evgeniy Doroshenko, 31, aka “Eugene Doroshenko”, aka “FlankerWWH,” aka “Flanker,” of Astrkhan, Russia, is charged by indictment with one count of wire fraud and one count of fraud and related activity in connection with computers.
According to documents filed in this case and statements made in court:
From February 2019 to May 2024, Doroshenko devised a scheme whereby he gained unlawful access to victim computer systems and sold this access to others for a profit through a Russian language cybercrime forum located on the dark web. In January 2024, Doroshenko gained unauthorized access to the computer network of a victim company located in Bergen County, New Jersey. Doroshenko then offered to sell access to the victim company’s network to other cybercriminals via the cybercrime forum.
Cybercrime forums, like the one used by Doroshenko to sell access to victim computer networks, are online forums where cybercriminals promote and facilitate a wide variety of criminal activities including, among other activities, computer hacking and trafficking in stolen data.
The count of wire fraud carries a maximum punishment of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss resulting from the offense, whichever is greatest. The count of computer fraud carries a maximum punishment of five years in prison and a fine of $250,000, or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge, Aaron Hatley, Newark Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
doroshenko.indictment.pdf