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20 May 2024
Rock Rapids Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender pled guilty on May 17, 2024, in federal court in Sioux City.
Melvin Geovani Aguilar-Lopez, age 31, from Rock Rapids, Iowa, was convicted of one count of Failure to Update his Registration as required by the Sex Offender Registration and Notification Act, in violation of 18 U.S.C. § 2250(a).
In a plea agreement, Aguilar-Lopez admitted that he was required to register and update his registration under the Sex Offender Registration and Notification Act by reason of a conviction of Sexual Abuse in the Third Degree in the Iowa District Court for Lyon County Criminal No. FECR005748 on December 9, 2016. Aguilar-Lopez admitted he knew he needed to update his sex offender registration to reflect the fact he had been living in Rock Rapids for approximately 5 months and working in Lyon County for approximately 2 months.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Aguilar-Lopez was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Aguilar-Lopez faces a term of imprisonment of between 15 to 21 months, a $250,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Kevin Fletcher and was investigated by the Lyon County Sheriff’s Department, the Iowa Division of Criminal Investigations (Sex Offender Unit) and the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-04004.
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Richmond County man pleads guilty to a federal charge for bomb scare at Social Security officeRead the Press Release
AUGUSTA, GA: A Richmond County man entered a guilty plea to a federal charge related to a bomb threat targeting the Social Security Administration’s Augusta office.
Keyon Tishaye Dickens, 38, of Augusta, pled guilty to Using a Telephone to Make a Threat to Injure a Person or Damage a Building by Explosives, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The plea subjects Dickens to a potential sentence of up to 10 years in prison, and there is no parole in the federal system.
As described in the plea agreement, Dickens received a notice in September 2023 that the Social Security Administration intended to recoup overpayments to his Supplemental Security Income from future SSI checks. He called the Social Security Administration office in Augusta to complain and stated, “I’m going to shoot the office up and I’m going to blow it up. I haven’t decided yet what I’m going to do.”
Dickens later visited the office carrying a backpack and showed a note that read “I have a bomb” to a security officer. The officer notified the Richmond County Sheriff’s Office, and the building was locked down and evacuated. No bomb was found, and Richmond County deputies took Dickens into custody.
U.S. District Court Judge J. Randal Hall will schedule sentencing for Dickens upon completion of a pre-sentence investigation by U.S. Probation Services.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Social Security Administration Office of the Inspector General, and the Richmond County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney George J.C. Jacobs III.
Previously Convicted Sex Offender Pleads Guilty to Producing Child PornographyRead the Press Release
WASHINGTON – Victor Armando Simms, 54, a previously convicted sex offender who most recently lived in Southeast Washington D.C., pleaded guilty today to sexually abusing multiple young girls, recording many of the incidents, and amassing a library of 3,300 still images and over 250 videos depicting the sexual abuse of children. The plea agreement was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Chief David J. Scott of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Simms, aka “Stacey Patrick Simms,” pleaded guilty before U.S. District Judge Tanya S. Chutkan in Washington D.C. to First Degree Child Sexual Abuse with Aggravating Circumstances, two counts of Aggravated Sexual Abuse with Children, three counts of Sexual Exploitation of Children, and Possession of Child Pornography.
Judge Chutkan scheduled sentencing for October 22, 2024. Simms faces a sentencing range of 37 years up to lifetime in prison on the seven counts to which he plead guilty. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, law enforcement was called on January 15, 2023, when a young girl discovered explicit images of child sexual abuse on an iPad belonging to Simms. The same day, Simms was formally placed under arrest and charged by complaint with one count of first-degree child sexual abuse in D.C. Superior Court.
On January 17, 2023, the FBI’s Child Exploitation and Human Trafficking Task Force executed a search warrant at Simms’s residence and seized multiple electronic devices including an iPad and a one-terabyte external hard drive. In addition, law enforcement agents seized numerous pills and pill bottles, which were believed to be used to sedate the young victims. Many of the videos produced by Simms showed the young victims asleep during the sexual assaults.
The forensic examination of the external hard drive revealed 3300 still images and 250 videos depicting the sexual abuse of children, many of which included metadata indicating the date, time, and location where the file was initially produced. The metadata indicated that the minor female victims were sexually exploited and abused by Simms in Washington D.C., and at hotels in Maryland and Virginia.
According to court documents, Simms is a previously adjudicated sex offender. He was convicted in North Carolina in 2005 of indecent liberties with a six-year-old child and a felony child sex act.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents and detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case is being prosecuted by Assistant U.S. Attorneys Jocelyn Bond, Sarah Folse, and Caroline Burrell.
Ponte Vedra Beach Man Indicted for Fraud Scheme Involving COVID-19 Personal Protective EquipmentRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Elliott Davis II (35, Ponte Vedra Beach) with 16 counts of bank fraud, 12 counts of wire fraud, and 1 count of money laundering and theft of mail. If convicted, Davis faces up to 30 years in federal prison for each count of bank fraud, up to 20 years in prison for each count of wire fraud, up to 10 years in prison for the money laundering count, up to 5 years’ imprisonment on the theft of mail count, and payment of restitution to the victims he defrauded.
According to court documents, from March 2018 through 2022, Davis ran a purported medical supply company named Medisale, Inc. By using false representations, Davis enticed individuals and business entities to invest over $7 million in Medisale. He falsely represented to victim-investors that Medisale was making significant profits on the sale of COVID-19 Personal Protective Equipment (PPE). He claimed to have contact with CEOs at various hospitals and that Medisale had contracts with hospitals to sell large volumes of N95 masks and other PPE. As part of his sale’s pitch, Davis showed bank statement with large balances, claiming the money was from the sale of PPE.
In reality, Medisale had no such contracts and had no true revenue from the sale of PPE. Davis kited checks and conducted fraudulent ACH/wire transfers between multiple financial institutions to artificially inflate the apparent balances on his bank accounts. Utilizing victim-investor money, Davis paid off previous debts, paid other investors purported profits from the sale of PPE, and paid for personal expenses. This included Davis using victim-investor money to purchase a membership at a luxury club in Ponte Vedra Beach and spending more than $27,000 on custom clothing.
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 Federal Deposit Insurance Corporation - Office of Inspector General, Florida Department of Law Enforcement, and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Oklahoma City Resident Sentenced for Theft in Indian Country and Failure to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Kelly Graham, age 26, of Oklahoma City, Oklahoma, was sentenced to 21 months’ imprisonment, with three years of supervised release, for one count of Failure to Register as Sex Offender, and a concurrent term of 15 months’ imprisonment, with three years of supervised release, for one count of Theft in Indian Country.
The charges arose from an investigation by the Muskogee County Sheriff’s Office and the United States Marshals Service.
On October 4, 2023, Graham pleaded guilty to one count of Theft in Indian Country, and one count of Failure to Register as a Sex Offender.
According to investigators, on January 26, 2023, Graham stole a fleet truck containing a GPS relay tracker from a Muskogee gas station. Muskogee deputies responding to the GPS location data discovered the truck stuck in the mud, and Graham attempting to attach a tow strap to the front bumper. Graham fled on foot. A K-9 unit tracked Graham and he was later arrested.
On September 13, 2023, Graham was indicted by a federal grand jury on one count of Failure to Register as a Sex Offender. In 2015, Graham was convicted of Rape, Second Degree, and was required to register as a sex offender. On April 4, 2022, Graham registered with the Cherokee County Sheriff's Office in Tahlequah, Oklahoma. At the time of registration, Graham was advised that he must notify law enforcement at least three days before any change of address. An investigation by U.S. Marshals revealed that between July 4, 2022, and March 21, 2023, Graham failed to report any change of address despite residing at various residences in and around Indian Country in the Eastern and Western Districts of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Graham was transferred into federal custody September 14, 2023, and will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Assistant United States Attorneys Joshua Satter and Richard J. Lorenz represented the United States.
Ohio Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Antione Terren Glanton, also known as “Twan” and “T,” 46, of Columbus, Ohio, was sentenced today to seven years in prison, to be followed by three years of supervised release, for distribution of methamphetamine and cocaine base, also known as “crack.”
According to court documents and statements made in court, on October 27, 2022, Glanton sold approximately 27.5 grams of methamphetamine and a quantity of crack to a confidential informant in the area of the 2500 block of Washington Boulevard in Huntington. Glanton admitted to the transaction and to arranging it with the confidential informant beforehand.
Glanton further admitted to selling approximately 2.7 grams of crack to the confidential informant in the area of the 200 block of Olive Street in Huntington on October 24, 2022, and to selling approximately 2.9 grams of crack and 1.3 grams of fentanyl to the confidential informant on the 2500 block of Washington Boulevard in Huntington on January 5, 2023.
On January 11, 2023, law enforcement officers executed a search warrant at Glanton’s Marcum Terrace residence in Huntington and found approximately 15 grams of crack, 32 grams of fentanyl, a quantity of heroin, digital scales, fentanyl test strips and $501. Officers also found a loaded Glock 19 9mm pistol and a loaded Smith & Wesson 9mm pistol in Glanton’s possession. Glanton admitted that he possessed the seized crack, fentanyl and heroin and intended to distribute the controlled substances.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney L. Finney and Lesley C. Shamblin 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. 3:23-cr-113.
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North Chesterfield insurance agent sentenced for defrauding employer and clientsRead the Press Release
RICHMOND, Va. – A North Chesterfield insurance and annuities agent was sentenced today to one year and three months years in prison for mail fraud after swindling his employer and clients in multiple schemes.
According to court documents, from August 2017 through March 2020, Joseph O’Carroll III, 52, scammed his employer for commissions and incentives by writing insurance policies for individuals without their consent or knowledge.
O’Carroll used the personal identifying information (PII) of clients, including their names, dates of birth, social security numbers, and bank account numbers, to apply for fraudulent life insurance policies in their names and forged their signatures on the applications. O’Carroll created and maintained email addresses purportedly belonging to his clients, which he then listed on the insurance applications to facilitate communications with the insurance companies. For one client, O’Carroll listed his own BB&T checking account from which the issuing insurance company was to automatically withdraw the premiums on applications for the policies. For other clients, O’Carroll listed the clients’ bank accounts. When the policies were issued, the insurance companies began withdrawing and attempting to withdraw premium payments from the listed bank accounts. While attempts to withdraw payments from O’Carroll’s bank account were unsuccessful, resulting in the cancellation of those policies, premiums were withdrawn from other client accounts, resulting in thousands of dollars being taken from them.
On at least one policy, O’Carroll listed himself as the beneficiary. During an Aug. 4, 2020, interview with the Virginia State Corporation Commission’s Bureau of Insurance, O’Carroll admitted that the client was “out of it” at the time due to the death of the client’s wife, and ultimately admitted that he wrote that policy and others to assist himself in winning a 2019 incentive trip to the Riviera Maya in Mexico from his employer.
In addition to applying for fraudulent life insurance policies in that client’s name, O’Carroll obtained most of the balance of an Employee Stock Ownership Plan (“ESOP”) account belonging to the client with the promise to reinvest the funds in another qualified retirement account. After gaining access to the client’s ESOP account portal, a request was submitted directing the ESOP servicer to remit two checks on December 31, 2019: one to Equitable Financial Group at O’Carroll’s home address in the amount of $57,659.28, and a second in the amount of $4,627.92 to the client’s home address. O’Carroll deposited the $57,629.28 check into a bank account he controlled, and kept and used the funds for his own personal expenses without the client’s knowledge or consent.
O’Carroll pled guilty on Jan. 18.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Ajay Lall, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge David J. Novak.
The U.S. Attorney thanks the Virginia State Corporation Commission’s Bureau of Insurance for their assistance in the investigation.
Assistant U.S. Attorneys Kashan Pathan and Mike C. Moore and former Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
The Central Virginia Financial Crimes Task Force, created in 2022, is a partnership between federal, state, and local law enforcement agencies and representatives of local financial institutions. Co-chaired by the Richmond Field Office of the United States Secret Service and the Washington Division of the United States Postal Inspection Service, the Task Force utilizes the knowledge and experience of its many partners to develop intelligence and pursue investigations into crimes that target or involve financial institutions located throughout the Central Virginia region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-3.
North Carolina Woman Pleads Guilty to Embezzling More than a Half Million Dollars from Farwell Funeral Service in NashuaRead the Press Release
CONCORD – A North Carolina woman pleaded guilty today in federal court to charges arising out of her embezzlement of funds from her previous employer, Farwell Funeral Service in Nashua, U.S. Attorney Jane E. Young announces.
LaSaundra Simmons, 51, pleaded guilty to one count of wire fraud. U.S. District Court Joseph Laplante scheduled sentencing for August 29, 2024.
Simmons worked as the bookkeeper for Farwell Funeral Service, Inc. for several years. Starting in 2015, and continuing until it was discovered in January 2023, Simmons employed a scheme to embezzle funds from the company. On more than 100 occasions, she either made unauthorized wire transfers of funds from the funeral home’s bank account to her own account, or drafted unauthorized checks which she deposited by electronic wire transfer into her own account. She would often describe these checks as “commissions” or “consulting fees.” She embezzled more than $500,000 over the course of the scheme.
The charging statute provides a sentence of no greater than 20 years in prison, 3 years of supervised release, and a fine of $250,000. Restitution is mandatory. 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 Nashua Police Department led the investigation. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
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Mission stash house operator imprisonedRead the Press Release
McALLEN, Texas – A 37-year-old man has been sentenced for harboring aliens, announced U.S. Attorney Alamdar S. Hamdani.
Miguel Angel Nunez-Urrea pleaded guilty Nov. 30, 2023.
Chief U.S. District Judge Randy Crane has now ordered Nunez-Urrea to serve 41 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional testimony that the firearms Nunez-Urrea possessed were capable of accepting large capacity magazines. In handing down the sentence, Judge Crane noted the effect these actions had on Nunez-Urrea’s family.
On Sept. 26, 2023, authorities encountered a group of undocumented aliens near Falfurrias. The investigation led to a stash house in Mission where Nunez resided with his wife. They also believed firearms to be in the home.
On Oct. 11, 2o23, law enforcement conducted a search at the couple’s residence in the early hours of the day. At that time, they discovered seven undocumented aliens - Nunez-Urrea, his wife and five others who were in the attic above a child’s bedroom.
Authorities also found a loaded pistol, a .22 caliber rifle and high-capacity magazines within the couple’s bedroom, all of which belonged to Nunez-Urrea.
Further investigation revealed text messages detailing the undocumented migrants were to be transferred to the Houston area after staying with the couple.
Nunez-Urrea’s wife, Kenia Anguiano-Sanchez, 30, a Mexican national, also pleaded guilty and was previously sentenced.
Nunez-Urrea and Anguiano-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.
Mexican National Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DEL RIO, Texas – A Mexican national was sentenced in a federal court in Del Rio to 121 months in prison for access with intent to view child pornography.
According to court documents, Felipe De Jesus Solis-Rivera, 32, of Piedras Negras, Coahuila, Mexico was reported for taking photos of a man in the restroom of an Eagle Pass store on July 14, 2019. Solis-Rivera voluntarily allowed authorities to look at the contents of his phone. Eagle Pass Police discovered videos and photos depicting child sexual abuse material.
Solis-Rivera was arrested July 14, 2019 and transferred into federal custody July 23, 2019. He pleaded guilty July 10, 2021.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The HSI and Eagle Pass Police Department investigated the case.
Assistant U.S. Attorneys Sarah Spears, Rex Beasley and Antonio Franco Jr. prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Memphis Man Sentenced to 12 Years for Possession of Methamphetamine and a Firearm in a Stolen VehicleRead the Press Release
Memphis, TN – A federal judge recently sentenced a Memphis man to 12 years in federal prison for being a convicted felon in possession of a firearm and methamphetamine. United States Attorney Kevin G. Ritz announced the sentence today.
According to information presented in court, on October 27, 2022, Memphis Police Department observed a black Dodge Charger driven by Jeffery Cervero, 27, in the parking lot of the Boulevard Apartments in the Hickory Hill community. The Dodge Charger was stolen, and it was bearing tags registered to a second vehicle previously stolen from the Dallas-Fort Worth Airport. Officers pulled in front of the Dodge Charger, but Cervero sped away. He was quickly disabled after he struck a MPD vehicle and a large rock.
Cervero ran away from the vehicle but was caught after a brief foot pursuit. In Cervero’s pants, officers located a Glock 9mm pistol equipped with a Glock switch. In the vehicle, officers recovered a backpack with 46 grams of actual methamphetamine, digital scales, and assorted pills. MPD also located $14,432 in cash, approximately 4.3 kg of vacuum sealed marijuana, a Glock 9mm, a Glock .45, a 5.56 caliber rifle, 5 iPhones, and Cervero’s ID in the stolen vehicle. One of the passengers was also apprehended attempting to run from the disabled vehicle.
On May 15, 2024, Cervero pled guilty to possession with intent to distribute 5 grams or more of actual methamphetamine, and possession of a Glock 9mm in furtherance of drug trafficking and was sentenced. United States District Court Judge Thomas L. Parker sentenced Cervero to 144 months incarceration with the Bureau of Prisons, followed by 4 years of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives - Memphis Office and the Memphis Police Department. The Drug Enforcement Administration - Memphis Office and Nashville Laboratory, the Oklahoma Highway Patrol, and ATF Oklahoma provided additional assistance.
United States Attorney Ritz thanked Assistant United States Attorney Gregory D. Allen, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Mason County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – James Franklin Will III, 42, of Point Pleasant, was sentenced today to three years and nine months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on June 15, 2023, law enforcement officers encountered Will while responding to reports of a suspicious person at a Point Pleasant residence. The residents told officers that Will had entered their home with two firearms. Officers recovered a loaded Sig Sauer AR-15 .223-caliber rifle and a Smith & Wesson .22-caliber revolver at the residence. Will admitted to possessing the firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Will knew he was prohibited from possessing a firearm because of his prior felony convictions for attempt to commit a felony on December 7, 2015, and conspiracy on November 13, 2017, both in Mason County Circuit Court, and for unlawful possession of a deadly weapon by a felon in Wood County Circuit Court on April 16, 2021.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Point Pleasant Police Department and the Mason County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-148.
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Man Arrested for Producing, Distributing, and Possessing AI-Generated Images of Minors Engaged in Sexually Explicit ConductRead the Press Release
A Wisconsin man was arrested last week on criminal charges related to his alleged production, distribution, and possession of AI-generated images of minors engaged in sexually explicit conduct and his transfer of similar sexually explicit AI-generated images to a minor.
“Technology may change, but our commitment to protecting children will not,” said Deputy Attorney General Lisa Monaco. “The Justice Department will aggressively pursue those who produce and distribute child sexual abuse material—or CSAM—no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and we will hold accountable those who exploit AI to create obscene, abusive, and increasingly photorealistic images of children.”
According to court documents, Steven Anderegg, 42, of Holmen, allegedly used a text-to-image generative artificial intelligence (GenAI) model called Stable Diffusion to create thousands of realistic images of prepubescent minors. Many of these images depicted nude or partially clothed minors lasciviously displaying or touching their genitals or engaging in sexual intercourse with men. Evidence recovered from Anderegg’s electronic devices revealed that he generated these images using specific, sexually explicit text prompts related to minors, which he then stored on his computer.
“As alleged, Steven Anderegg used AI to produce thousands of illicit images of prepubescent minors, and even sent sexually explicit AI-generated images to a minor,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s announcement sends a clear message: using AI to produce sexually explicit depictions of children is illegal, and the Justice Department will not hesitate to hold accountable those who possess, produce, or distribute AI-generated child sexual abuse material.”
Additionally, Anderegg allegedly communicated with a 15-year-old boy and described how he used Stable Diffusion to convert his text prompts into images of minors. Anderegg also allegedly used Instagram direct message to send the boy several GenAI images of minors lasciviously displaying their genitals. Anderegg came to the attention of law enforcement through a CyberTip from the National Center for Missing and Exploited Children (NCMEC) after Instagram reported Anderegg’s account to NCMEC for distributing these images.
Anderegg remains in federal custody pending a detention hearing scheduled for May 22.
A federal grand jury in the Western District of Wisconsin returned an indictment on May 15 charging Anderegg with producing, distributing, and possessing obscene visual depictions of minors engaged in sexually explicit conduct and transferring obscene material to a minor under the age of 16. If convicted of all four counts alleged in the indictment, he faces a total statutory maximum penalty of 70 years in prison and a mandatory minimum of five years in prison.
The Wisconsin Department of Justice’s Division of Criminal Investigation is investigating the case.
Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) is prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Wisconsin.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Government’s Brief in Support of DetentionLowell Man Sentenced to Prison for Gun TraffickingRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Boston for firearms trafficking charges.
Isael Rodriguez, 29, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and three years of supervised release. In January 2024, Rodriguez pleaded guilty to one count of dealing in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer.
In January 2021 and June 2021, Rodriguez purchased a dozen Glock pistols from a licensed dealer for $500 each, falsely claiming that he was purchasing them for himself. Rodriguez then resold the firearms for profit to individuals in Massachusetts. Rodriguez is not a licensed importer, manufacturer, or dealer and Glock firearms are only allowed to be sold to active law enforcement officers.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Boston Police Commissioner Michael Cox; Lowell Superintendent of Police Gregory C. Hudon; Brookline Police Chief Jennifer M. Paster; and Brockton Police Chief Brenda I. Perez made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lincoln Man Sentenced to 60 Years for Production and Possession of Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Amikhet En Maati, also known as Warren Coker, 53, of Lincoln, Nebraska, was sentenced on May 20, 2024, in federal court in Lincoln for two counts of production of child pornography concerning two separate victims, two counts of committing production of child pornography while on the Sex Offender Registry, and one count of possession of child pornography. Senior United States District Judge John M. Gerrard sentenced Maati to a total of 720 months’ (60 years’) imprisonment. There is no parole in the federal system. He was further sentenced to a lifetime of supervised release following his release from prison. Additionally, Maati is ordered to pay $6,000 to a federal fund established to assist victims of child exploitation crimes.
On September 9, 2022, Lincoln Police Department (LPD) received a report regarding the sexual abuse of a minor female where Maati was the subject. A search of the residence was conducted and a cellphone belonging to Maati was seized. Around that same time, LPD determined that Maati was also the subject of a recent tip made to the FBI. A forensic examination was completed on Maati’s cellphone. Law enforcement discovered multiple child exploitation videos of minor Victim 1 and one video of minor Victim 2. Maati uploaded and distributed these videos to a cloud-storage website where his friend, who was another registered sex offender, had access to them. Further review of Maati’s cloud-storage account revealed additional child exploitation videos of each of the victims.
Maati was charged in April 2023 and proceeded to a bench trial before Senior District Judge Gerrard in February of this year. He was found guilty on all counts.
Maati was previously convicted on or about January 2, 1997, for Attempted Sex Assault of a Child in Douglas County District Court, Nebraska, and on or about July 1, 1999, for one count of Second-Degree Sexual Assault and one count Sexual Assault of a Child in Sarpy County District Court, Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.
Life sentence imposed for murder on the Wind River Indian ReservationRead the Press Release
Francis James Acebo Jr., age 34, of Arapaho, Wyoming, was sentenced to life imprisonment for first-degree murder and causing death with a firearm; followed by a 10-year term of imprisonment for discharging a firearm during and in relation to a crime of violence. U.S. District Court Judge Alan B. Johnson imposed the sentence on May 16.
Acebo was convicted by a federal jury on Feb. 16. The trial lasted five days and was held in Cheyenne before Judge Johnson. The defendant had been indicted by a grand jury and pleaded not guilty to the charges in May 2023.
According to evidence presented at trial and witnesses to the crime, Acebo entered the victim’s Riverton residence in the early morning of Mar. 25, 2023, and shot the victim in the back of the head. He fled the scene and later turned himself in to the Fremont County Sheriff’s Office.
“The successful prosecution of homicides and other violent crimes on the Wind River Indian Reservation is one of our highest priorities,” said U.S. Attorney Nicholas Vassallo. “Mr. Acebo’s life sentence is the result of a well-coordinated investigation by the FBI and the Bureau of Indian Affairs and this office’s commitment to obtaining a first-degree murder conviction.”
“FBI Denver takes seriously all major crimes on the Wind River Indian Reservation, with murders like this one getting our full attention,” said Special Agent in Charge Mark Michalek. “This sentence demonstrates the FBI's steadfast commitment to working with our tribal partners to solve MMIP cases and promote public safety on reservations across the country.”
Special agents with the Bureau of Indian Affairs and the FBI investigated this crime. Assistant U.S. Attorneys Kerry J. Jacobson and Timothy J. Forwood prosecuted the case.
Case No. 23-CR-00081
Leader of Sophisticated Sinaloa Cartel Money Laundering Organization Sentenced to 120 MonthsRead the Press Release
NEWS RELEASE SUMMARY – May 20, 2024
SAN DIEGO – Luis Reinaldo Ramirez of Mesa, Arizona, was sentenced in federal court today to 120 months in prison for his role as a leader in a transnational criminal organization that laundered $16.5 million dollars in narcotics proceeds for the Sinaloa Cartel. Ramirez was also sentenced for his role in an extortion plot.
Ramirez was one of 12 people indicted on charges ranging from money laundering, narcotics trafficking, and extortion as part of a two-year investigation by FBI and DEA. The investigation resulted in the takedown of the organization that laundered millions of dollars for the Sinaloa Cartel, and the rescue of two victims of an extortion plot in February of 2021. To date the investigation has resulted in the seizure of more than $1.3 million in illicit assets.
According to his plea agreement, Ramirez played a key role in the day-to-day operations of the organization. He created a network of incorporated shell companies in Wyoming that were used to launder illicit bulk cash. Ramirez directed and facilitated employees of the money laundering organization to travel to cities throughout the United States to pick up bulk cash belonging to narcotics traffickers. The employees picked up the bulk cash in Chicago, Omaha, Boston, New York City, Baltimore, Charlotte, and Philadelphia.
Narcotics traffickers delivered bulk cash in amounts of up to $200,000 to the employees in hotel rooms and parking lots. Following the delivery of the illegal monies, the criminal organization laundered the funds through the shell companies and transferred the monies to bank accounts in Mexico. To demonstrate the drug money connection, in November 2020 the FBI conducted surveillance on a bulk cash delivery from Idsel Valenzuela and Sugey Caro Salazar in Chicago. The operation led to a subsequent search of Caro and Valenzuela’s home and vehicle, which led to the discovery and seizure of 368 pounds of crystal methamphetamine, 10 kilograms of heroin, and $97,390 in bulk cash.
Earlier this year, several of Ramirez’s co-defendants were sentenced to prison, including Cristian Amaya Nava, 60 months; Christian Cruz Polanco, 30 months; Sugey Caro Salazar, 48 months; and Idsel Valenzuela, Cheliann Rivera Vazquez and Kimberly Reyes to probationary sentences. Additional co-defendants — Hector Vizcaino Moreno, Ricardo Torres, and Luis Armando Avila — are scheduled to be sentenced in the coming months. Three of Ramirez’s indicted co-defendants remain fugitives in Mexico, including the alleged former Mexico-based leader of the organization, Enrique Esparragoza Rosas of Culiacan, Sinaloa, Mexico.
The FBI’s investigation, in partnership with the United States Attorney’s Office, pursued an aggressive strategy of asset seizures in order to disrupt the money laundering organization’s activities. In total, dozens of bank accounts used by the organization were targeted, resulting in the seizure of more than $1 million from U.S.-based bank accounts. Agents also conducted operations that resulted in the seizure of $197,430 in bulk cash and a Volvo tractor-trailer that was purchased with drug money. Agents also seized illicit funds that were used to purchase aircraft and aircraft engines for export to Mexico in several instances.
The FBI’s efforts also resulted in a successful rescue of two victims who were being extorted by the money laundering organization in February 2021. Prior to the extortion, one of the victims, an employee of the money laundering organization, began stealing illicit funds from a bank account he controlled for the organization. In February 2021, when Esparragoza and Ramirez learned of the theft, they conspired to threaten and extort the pair to repay the funds. Esparragoza sent Cristian Amaya-Nava to threaten the men and their families. Amaya-Nava then drove the two men around Imperial and San Diego counties to collect money from accounts they controlled. Esparragoza also directly threatened the men and their families during several phone conversations that day, telling them that two truckloads of men from Tijuana would “take care of them” if they did anything stupid.
Once the FBI learned of the ongoing extortion, they began tracking the victim’s and Amaya Nava’s movements. FBI agents coordinated with the National City Police Department to conduct a traffic stop wherein Amaya Nava was arrested and the two victims were rescued.
“In cases like this we strike at the life blood of the drug trafficker,” said U.S. Attorney Tara McGrath. “Money launderers provide the means for cartels to produce and import their deadly poison into the United States.”
“The sentencing of Mr. Ramirez is a major step toward dismantling the Sinaloa Cartel,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We remain committed to working collaboratively with our law enforcement partners to disrupt and dismantle organized crime activity not only in San Diego, but wherever our investigations may lead.”
“There is no place for drug trafficking in San Diego,” said DEA Acting Special Agent in Charge Anthony Chrysanthis. “Drug trafficking is a violent crime that harms our citizens and weakens our communities. The DEA and our partners will continue to be vigilant in dismantling these operations.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being prosecuted by Assistant U.S. Attorney Joshua Mellor.
DEFENDANTS Case Number 22cr2185-BAS
Luis Reinaldo Ramirez Age: 41 Mesa, Arizona
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Organized Crime Drug Enforcement Task Forces
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Laguna Man Pleads Guilty to Three Counts of Second-Degree MurderRead the Press Release
ALBUQUERQUE – A Laguna man has pleaded guilty in federal court to charges stemming from a fatal DWI crash on Laguna Pueblo in 2022 that killed three members of the same family.
In his plea agreement, Cody Allen Charlie, 37, an enrolled member of the Pueblo of Acoma, admitted that on August 7, 2022, he was driving drunk, traveling at 116 miles per hour while also using his cell phone when he crashed into another vehicle on Interstate 40, near mile marker 130.
The impact caused the other vehicle to veer off the interstate, onto the shoulder where it rolled over. All three occupants of that vehicle—identified as John Doe 1, John Doe 2, and Jane Doe—were killed in the crash.
Instead of rendering aide, Charlie fled the scene on foot.
The Court ordered that Charlie remain in custody pending sentencing, which has not been scheduled. At sentencing, Charlie faces between 10 and 20 years in prison. Upon his release from prison, Charlie will be subject to up to five years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department and New Mexico State Police. Assistant U.S. Attorneys Brittany DuChaussee and Zachary C. Jones are prosecuting the case.
View the Plea Agreement# # #
Justice Department Sues Two Organizations and Seven Individuals for Physically Obstructing Access to Reproductive Health Services in Violation of the FACE ActRead the Press Release
The Justice Department filed a federal lawsuit today in the Northern District of Ohio against two organizations and seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act prohibits anyone from using force, threats of force or physical obstruction against any person because they are seeking or providing reproductive health services.
The complaint alleges that the defendants, two organizations – Citizens for a Pro Life Society and Red Rose Rescue – and seven individuals – Laura Gies, Lauren Handy, Clara McDonald, Monica Miller, Christopher Moscinski, Jay Smith and Audrey Whipple – violated the FACE Act on June 4 and 5, 2021, by engaging in physical obstruction at two Ohio reproductive health facilities to prevent the facilities from providing, and patients from receiving, reproductive health care services. The complaint seeks compensatory damages, monetary penalties and injunctive relief as provided by the FACE Act.
“Obstructing people from accessing reproductive health care and physically obstructing providers from offering it are unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Congress passed the FACE Act 30 years ago this month in response to acts of violence, threats of violence and physical obstruction at reproductive health clinics in our country. The Civil Rights Division is committed to enforcing federal law to protect the rights of those who seek and those who provide access to reproductive health services.”
“Federal and state laws protect access to reproductive health care services,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Individuals have the right to access facilities in Ohio to make decisions about their own bodies, health and futures, in consultation with health care providers, free from force, threats of force, intimidation or physical obstruction. Our office remains committed to enforcing the FACE Act to protect these important rights of both individuals and providers, whether or not the services provided include abortion care options, as they do here. We encourage anyone with information about potential FACE Act violations to contact our office.”
The Civil Rights Division's Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio are handling the case.
Civil rights complaints can be submitted online at civilrights.justice.gov.
Anyone in imminent danger should call 911 or local police. Contact your local FBI field office by calling 1-800-CALL-FBI (or 1-800-225-5324) or via tips.fbi.gov.
Anyone in the Northern District of Ohio may report potential FACE Act or other civil rights violations by calling the Civil Rights Hotline at 855-365-2485.
Justice Department Sues Two Organizations and Seven Individuals for Physically Obstructing Access to Reproductive Health Services in Violation of the FACE ActRead the Press Release
The Justice Department filed a federal lawsuit today in the Northern District of Ohio against two organizations and seven individuals for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act prohibits anyone from using force, threats of force or physical obstruction against any person because they are seeking or providing reproductive health services.
The complaint alleges that the defendants, two organizations – Citizens for a Pro Life Society and Red Rose Rescue – and seven individuals – Laura Gies, Lauren Handy, Clara McDonald, Monica Miller, Christopher Moscinski, Jay Smith and Audrey Whipple – violated the FACE Act on June 4 and 5, 2021, by engaging in physical obstruction at two Ohio reproductive health facilities to prevent the facilities from providing, and patients from receiving, reproductive health care services. The complaint seeks compensatory damages, monetary penalties and injunctive relief as provided by the FACE Act.
“Obstructing people from accessing reproductive health care and physically obstructing providers from offering it are unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Congress passed the FACE Act 30 years ago this month in response to acts of violence, threats of violence and physical obstruction at reproductive health clinics in our country. The Civil Rights Division is committed to enforcing federal law to protect the rights of those who seek and those who provide access to reproductive health services.”
“Federal and state laws protect access to reproductive health care services,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Individuals have the right to access facilities in Ohio to make decisions about their own bodies, health and futures, in consultation with health care providers, free from force, threats of force, intimidation or physical obstruction. Our office remains committed to enforcing the FACE Act to protect these important rights of both individuals and providers, whether or not the services provided include abortion care options, as they do here. We encourage anyone with information about potential FACE Act violations to contact our office.”
The Civil Rights Division's Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio are handling the case.
Civil rights complaints can be submitted online at civilrights.justice.gov.
Anyone in imminent danger should call 911 or local police. Contact your local FBI field office by calling 1-800-CALL-FBI (or 1-800-225-5324) or via tips.fbi.gov.
Anyone in the Northern District of Ohio may report potential FACE Act or other civil rights violations by calling the Civil Rights Hotline at 855-365-2485.
Justice Department Secures Award Against Owner of Massachusetts Sober Homes for Sexual HarassmentRead the Press Release
Peter McCarthy, 51, of Lynn, Massachusetts, the owner of Steps to Solutions Inc., a group of residential sober homes, was found liable following a five-day jury trial. In August 2021, the U.S. Attorney’s Office for the District of Massachusetts and the Justice Department’s Civil Rights Division filed a lawsuit alleging that McCarthy subjected female tenants to sexual harassment in violation of the Fair Housing Act.
“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the survivors who came forward to testify about the heinous conduct that they experienced. This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.”
“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads. Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be denied housing because of their refusal to submit to unwanted sexual harassment and intimidation,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants”
Since at least 2012 through 2021, McCarthy — the registered agent and sole officer of Steps to Solutions Inc. — sexually harassed residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges or waiving security deposits in exchange for engaging in sex acts or sexually explicit photographs; and making unwanted sexual comments.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered over $16.4 million for victims of such harassment.
Individuals who have information about this case can contact the U.S. Attorney’s Office for the District of Massachusetts by calling 617-748-3274, emailing [email protected] or visiting the case webpage.
Assistant U.S. Attorneys Gregory Dorchak, Michelle Leung and Eve Piemonte for the District of Massachusetts handled the matter, along with the Justice Department’s Civil Rights Division’s Housing Section.
Justice Department Secures $3.8 Million Award Against Owner and Operator of Massachusetts Sober Homes for Sexual HarassmentRead the Press Release
BOSTON – The owner and operator of Steps to Solutions, Inc., a group of residential sober homes, has been found liable by a federal jury in Boston for sexual harassment of tenants.
Peter McCarthy, 51, of Lynn was found liable on May 17, 2024 for sexual harassment and retaliation in violation of the Fair Housing Act. Following a five-day trial, a federal jury awarded $3.8 million in damages to seven identified victims who rented from McCarthy. In August 2021, the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division filed a lawsuit alleging that McCarthy subjected tenants to sexual harassment in violation of the Fair Housing Act. The jury award includes compensatory damages for the emotional harms the victims suffered as a result of McCarthy’s conduct as well as punitive damages to punish the defendant. The Justice Department also intends to seek a civil penalty against McCarthy to vindicate the public interest and a court order for injunctive relief to prevent McCarthy from, among other things, managing Steps to Solutions sober homes or having contact with residents or prospective tenants.
“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads. Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be subjected to unwanted demands for sex acts from their landlord,” said Acting United States Attorney Joshua S. Levy. “This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants.”
“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the survivors who came forward to testify about the heinous conduct that they experienced. This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.”
Since at least 2009 through 2021, McCarthy — the registered agent and sole officer of Steps to Solutions, Inc. — sexually harassed residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges, or waiving security deposits in exchange for engaging in sex acts or sexually explicit photographs; and making unwanted sexual comments.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered over $16.4 million for victims of such harassment.
Individuals who have information about this case can contact the U.S. Attorney’s Office by calling 617-748-3274, by e-mailing [email protected] or by visiting the case webpage.
Acting U.S. Attorney Levy and AAG Clarke made the announcement today. Assistant U.S. Attorneys Gregory Dorchak, Michelle Leung and Eve Piemonte of the Civil Division handled the matter along with the Housing Section of the Justice Department’s Civil Rights Division.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2016 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Justice Department Leadership Honors Service and Sacrifice of Nation’s Law Enforcement for Police WeekRead the Press Release
Last week, in recognition of National Police Week, Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Acting Associate Attorney General Benjamin C. Mizer joined law enforcement partners to honor those who made the ultimate sacrifice to our nation.
According to the FBI’s most recent statistics, 60 law enforcement officers were killed in the line of duty in 2023. As of April 29, 19 law enforcement officers have lost their lives in the line of duty this year.
In 1962, President John F. Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the week in which May 15 falls as National Police Week. Established by a joint resolution of Congress in 1962, National Police Week is a collaborative effort of many organizations dedicated to honoring the service and sacrifice of America’s law enforcement community. This year, police week ran May 12 – 18.
Attorney General Garland, Deputy Attorney General Monaco, and Acting Associate Attorney General Mizer began the week by visiting the National Law Enforcement Memorial and laying a wreath in honor of the men and women who have died in the line of duty.
Throughout the week, to recognize not only Justice Department employees who died in the line of duty but also their surviving family members and friends, Attorney General Garland and Deputy Attorney General Monaco attended memorial services for the Justice Department’s four law enforcement components: the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service (USMS), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Principal Associate Deputy Attorney General Marshall Miller also delivered remarks at a memorial service to honor fallen federal correctional officers from the Federal Bureau of Prisons, during National Correctional Officers Week, which ran May 5 – 11.
Attorney General Garland and Deputy Attorney General Monaco also attended the Fraternal Order of Police (FOP)’s National Peace Officers’ Memorial Service. Additionally, Attorney General Garland attended the National Law Enforcement Officers Memorial Fund’s annual candlelight vigil honoring the officers who lost their lives over the past year, where the Attorney General joined senior officials to read the names of the fallen.
On Thursday, Attorney General Garland, Deputy Attorney General Monaco, and Acting Associate Attorney General Mizer also convened the Justice Department’s law enforcement components and external law enforcement associations with whom they regularly meet to discuss the Justice Department’s continued partnership with state and local law enforcement.
Justice Department Announces Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
The Justice Department today announced an important new resource for prosecutors. The Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims, 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.
“When investigating and prosecuting the heinous crimes of sexual assault and domestic violence, prosecutors must pursue justice in a manner that does not retraumatize victims and survivors,” said Attorney General Merrick B. Garland. “This framework for prosecutors reflects the Justice Department’s commitment to strengthening our collective response to sexual assault and domestic violence, and to setting the standard for how prosecutors should respond to victims and survivors.”
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 beyond a reasonable doubt. This guide addresses that phenomenon by discussing: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) the fundamental importance of prosecutors, investigators, and victim specialists working together and meeting with victims; (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.
“Achieving justice for victims and survivors of sexual assault and domestic violence is one of the Department’s highest priorities,” said Deputy Attorney General Lisa Monaco. “This guide provides a framework that we encourage prosecutors throughout the country to use when evaluating, investigating, and prosecuting these critically important cases.”
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. The principles set forth in this guide are designed to encourage and assist prosecutors of all levels of experience to handle cases involving sexual assault and domestic violence. 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.
“The Justice Department is committed to strengthening the prosecution of sexual assault and domestic violence crimes and ensuring a trauma-informed approach to working with victims,” said Acting Associate Attorney General Benjamin C. Mizer. “This guide provides a practical, accessible framework that prosecutors can use when evaluating, investigating, and prosecuting these crimes. We thank everyone who contributed to this guide for sharing their expertise and experience and for their years of dedicated work to address and combat 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 Director Rosie Hidalgo of the Justice Department’s Office on Violence Against Women (OVW). “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.”
In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles.
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 www.justice.gov/ovw.
Justice Department Announces Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
WASHINGTON – The Justice Department today announced an important new resource for prosecutors. The Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims, 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.
“When investigating and prosecuting the heinous crimes of sexual assault and domestic violence, prosecutors must pursue justice in a manner that does not retraumatize victims and survivors,” said Attorney General Merrick B. Garland. “This framework for prosecutors reflects the Justice Department’s commitment to strengthening our collective response to sexual assault and domestic violence, and to setting the standard for how prosecutors should respond to victims and survivors.”
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 beyond a reasonable doubt. This guide addresses that phenomenon by discussing: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) the fundamental importance of prosecutors, investigators, and victim specialists working together and meeting with victims; (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.
“Achieving justice for victims and survivors of sexual assault and domestic violence is one of the Department’s highest priorities,” said Deputy Attorney General Lisa Monaco. “This guide provides a framework that we encourage prosecutors throughout the country to use when evaluating, investigating, and prosecuting these critically important cases.”
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. The principles set forth in this guide are designed to encourage and assist prosecutors of all levels of experience to handle cases involving sexual assault and domestic violence. 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.
“The Justice Department is committed to strengthening the prosecution of sexual assault and domestic violence crimes and ensuring a trauma-informed approach to working with victims,” said Acting Associate Attorney General Benjamin C. Mizer. “This guide provides a practical, accessible framework that prosecutors can use when evaluating, investigating, and prosecuting these crimes. We thank everyone who contributed to this guide for sharing their expertise and experience and for their years of dedicated work to address and combat 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 Director Rosie Hidalgo of the Justice Department’s Office on Violence Against Women (OVW). “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.”
In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles.
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 www.justice.gov/ovw.
Indictment Charges Tobacco Wholesaler with Operating Tax Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a 10-count indictment charging KHAWAR M. KHOKHAR, 35, of Ellington, with offenses stemming from an alleged tax fraud scheme.
The indictment was returned on May 15, 2024. Khokhar appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford, pleaded not guilty, and was released on a $100,000 bond.
As alleged in the indictment and statements made in court, Khokhar operated Smokin’ Wholesale LLC, a Connecticut-licensed tobacco wholesale business that acquired smokeless tobacco and other tobacco products from out-of-state distributors, including businesses in Pennsylvania and Illinois, and sold the products to retail merchants in Connecticut. Between approximately May 2017 and June 2019, Khokhar and Smokin’ Wholesale purchased approximately $2 million in tobacco products from the distributors, but failed to report accurately to the Connecticut Department of Revenue Services the value of the products imported into the state, and failed to pay to the state the associated tobacco taxes owed. Through this scheme, Khokhar and others caused Connecticut to suffer a tax loss of approximately $1 million.
The indictment charges Khokhar with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years; eight counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; and one count of engaging in an illegal monetary transaction, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Postal Inspection Service and the Connecticut Department of Revenue Services, Criminal Investigations Division. This case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Indian National Pleads Guilty to Wire Fraud Conspiracy for Stealing over $37 Million by Spoofing Coinbase's WebsiteRead the Press Release
CHARLOTTE, N.C. – Chirag Tomar, 30, a citizen of the Republic of India, appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to federal charges for stealing more than $37 million through a spoofing scheme of the Coinbase website, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tomar was arrested at the Atlanta airport on Dec. 20, 2023, upon entering the United States, and remains in federal custody.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, in or about June 2021, Tomar and his co-conspirators engaged in a scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Tomar and his co-conspirators executed the fraud by “spoofing” the Coinbase website. Coinbase is one of the largest virtual currency exchanges in the world, that allows customers to buy, sell or trade cryptocurrencies. Coinbase users can also store their cryptocurrencies in their virtual exchange wallets. Upon logging in, users are able to quickly access their wallets and transfer the cryptocurrencies to other wallets or other outside linked accounts. Coinbase operated a “Pro” version of its exchange, which was found at the URL “Pro.Coinbase.Com.”
According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com. In order to deceive unsuspecting users into believing they were accessing the legitimate Coinbase webpage, the fraudulent website was crafted to mimic the authentic website. Once victims entered their login credentials into the fake website, an authentication process was triggered. In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters. Other times, victims were tricked into allowing fake Coinbase representatives into executing remote desktop software, which enabled fraudsters to gain control of victims’ computers and access their legitimate Coinbase accounts. The fraudsters also impersonated Coinbase customer service representatives and tricked the users into providing their two-factor authentication codes to the fraudsters over the phone. Once the fraudsters gained access to the victims’ Coinbase accounts, the fraudsters quickly transferred the victims’ Coinbase cryptocurrency holdings to cryptocurrency wallets under the fraudsters’ control.
In February 2022, a victim located in the Western District of North Carolina attempted to log into his Coinbase account through the fraudulent website. The spoof website immediately notified the victim that his account was locked and prompted the victim to use a number provided to call a fake Coinbase representative. The fake representative tricked the victim into providing his two-factor authentication information, ultimately gaining access into the victim’s real Coinbase account. Using the information, fraudsters stole cryptocurrency from the victim’s Coinbase wallet worth over $240,000.
As Tomar admitted in court today, Tomar controlled several cryptocurrency wallets that received hundreds of transactions of cryptocurrency stolen from victim accounts at Coinbase, totaling tens of millions of dollars. After Tomar received the stolen cryptocurrency, he would quickly convert it to other forms of cryptocurrency or move the funds amongst many wallets controlled by Tomar and others. Ultimately, the cryptocurrency was converted into cash which was then distributed to Tomar and his co-conspirators.
According to court documents, Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase a Rolex and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.
Tomar pleaded guilty to wire fraud conspiracy, which carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.
U.S. Attorney King commended the U.S. Secret Service for their investigation of the case and thanked the FBI in Nashville for their invaluable assistance.
Assistant U.S. Attorney Matthew T. Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Huntington Man Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
HUNTINGTON, W.Va. – Andrew Nicholas-Scott Titus, 33, of Huntington, pleaded guilty today to failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, in June 2023, Titus relocated from Michigan to Lavalette, West Virginia. In October 2023, Titus relocated from Lavalette to Huntington, where he lived in a residence with four minor children. Titus failed to register or update his registration as required by SORNA after each relocation.
Titus is required to register as a sex offender and comply with SORNA because of his prior convictions for gross indecency between a male and female on March 21, 2022, and for distributing obscene materials to a minor on August 6, 2015, both in Wexford County, Michigan, Circuit Court.
Titus is scheduled to be sentenced on September 3, 2024, and faces a maximum penalty of 10 years in prison, 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).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
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-26.
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Grand Haven Man Sentenced to 27 Years for Child ExploitationRead the Press Release
Man sexually assaulted and exploited 4-year-old child
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Brian Ray Stefono, 55, from Grand Haven, Michigan, was sentenced to serve 27 years in prison for the sexual assault and exploitation of a 4-year-old child. After his release from prison, Stefono will serve 10 years of supervised release.
“Brian Stefono committed horrific crimes against children and will spend the next 27 years in prison because of it,” said U.S. Attorney Mark Totten. “I’m grateful for our partners in the private sector who help report these crimes and for our partners in law enforcement who help investigate them. We urge anyone aware of child exploitation to contact law enforcement and we commit to doing everything we can to protect these victims.”
Stefono pleaded guilty to sexually assaulting the child on multiple occasions in a residence in Grand Haven. He produced multiple videos that depicted the sexual assaults. The victim was approximately 4 years old at the time. Stefono came to the attention of law enforcement after a cloud-storage provider discovered videos in Stefono’s accounts that depicted sexual assaults of very young children. Michigan State Police and Homeland Security Investigations executed a search warrant on Stefono’s home and uncovered his collection of child pornography—including the self-produced exploitative content.
“Our children and our communities are safer with this predator behind bars,” said HSI Detroit Acting Special Agent in Charge Jared Murphey. “Through law enforcement partnerships and the vigilance of private industry, we can help hold these offenders accountable and deliver justice for the victims of these heinous crimes.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by Michigan State Police ICAC taskforce and Homeland Security Investigations.
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Government Contractor Settles Claims That It Billed for Personnel Who Lacked Required Security ClearancesRead the Press Release
ALEXANDRIA, Va. – Deloitte Consulting LLP, located in New York, agreed to pay $220,885.77 to settle claims that it billed the Department of Health and Human Services, Program Support Center (HHS-PSC) for labor performed by personnel who did not possess the security clearances required by a government contract.
Deloitte Consulting submitted a written contractor disclosure to HHS-PSC. Specifically, the disclosure stated that Deloitte Consulting was unable to validate the clearance status of seven employees who performed work on a contract awarded by HHS-PSC. As a result, Deloitte Consulting considered those employees not to have met the base clearance level in the contract. Following an investigation by the U.S. Attorney’s Office, Deloitte Consulting agreed to pay the amounts billed for personnel whose clearance status could not be validated.
Deloitte Consulting received full credit under the Department of Justice’s guidelines for taking disclosure, cooperation, and remediation into account: Justice Manual § 4-4.112.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Health and Human Services, Office of General Counsel; the Department of Health and Human Services, Office of Inspector General; Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Department of the Army Criminal Investigation Division, Fraud Field Office; and the Naval Criminal Investigative Service – Economic Crimes Field Office, Washington, DC.
This matter was investigated by Assistant U.S. Attorney Tanya Kapoor.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Fruitland Man Pleads Guilty to Charges Arising from Machete Attack on MotoristRead the Press Release
ALBUQUERQUE – A Fruitland man pleaded guilty in federal court to threatening a driver, brandishing a machete and hatchet, stealing her car, and leading police on a high-speed chase.
In his plea agreement, Brandon Barber, 38, an enrolled member of the Navajo Nation, admitted that on May 9, 2022, Jane Doe was driving her Jeep when his co-defendant, Lindsey Yazzie, threw a large rock at the windshield, forcing her to stop. Barber then attacked Jane Doe’s vehicle with a machete and hatchet, smashing the windshield and windows.
Barber and Yazzie then pulled Jane Doe from the vehicle, and Barber proceeded to steal Jane Doe's Jeep, briefly stopping to allow Yazzie to enter the vehicle as a passenger. As Barber drove away in the stolen Jeep, he saw Jane Doe standing in the roadway and accelerated the vehicle towards Jane Doe, who had to jump out of the way to avoid being struck.
When encountered by the Navajo Police Department, Barber led them on a high-speed chase until the police were forced to terminate the pursuit due to public safety risks.
The Court ordered that Barber remain in custody pending sentencing, which has not been scheduled.
At sentencing, Barber faces up to 15 years in prison. Upon his release from prison, Barber will be subject to up to three years of supervised release.
Lindsey Yazzie is currently scheduled to stand trial on July 8, 2024.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Plea Agreement# # #
Four men federally indicted on attempted child sexual enticement chargesRead the Press Release
SAVANNAH, GA: Four men have been indicted on federal charges after a multi-agency sting operation targeting online predators.
The men are all charged with Attempted Enticement and Inducement of a Minor to Engage in Sexual Activity, a charge that carries a statutory penalty upon conviction of 10 years to life in prison, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. A conviction subjects the defendants to lifetime registration as a sex offender; at least five years to life of supervised release, upon completion of any prison term; and substantial financial penalties.
There is no parole in the federal system.
“As exemplified in Operation Nightfall, the dangers of the internet require the collaboration of multiple law enforcement agencies in identifying adults who are using online platforms to target children,” said U.S. Attorney Steinberg. “We will continue our work protecting our most vulnerable citizens.”
Those indicted on federal charges in Operation Nightfall include:
- Bobby Edwards Crews-Couch, 41, of Pooler, Ga.;
- Lancaster Graham, 38, of Garden City, Ga.;
- Clifton Newman, 34, of Savannah; and,
- Henry London Taylor, 69, of Savannah.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Operation Nightfall, a proactive undercover child exploitation investigation, was coordinated and investigated by the Georgia Internet Crimes Against Children Task Force, Homeland Security Investigations, the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit, and the Savannah Police Department, with assistance from multiple state and local law enforcement agencies, the Southern District of Georgia U.S. Attorney’s Office, and the Chatham County District Attorney’s Office.
The operation targeted those who communicate online with children in order to engage in illegal sex acts. A total of seven individuals, including the named four federal defendants, were arrested on multiple state charges involving online sexual communications with purported children, and attempting to meet a child for illegal sex acts.
The defendants are being prosecuted for the United States by Sherri A. Stephan and Timothy P. Dean, Assistant U.S. Attorneys for the Southern District of Georgia.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Former Trading Firm Executives Found Guilty of FraudRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Michael Shawn Stewart, 61, of Scottsdale, Arizona, and Bryant Edwin Sewall, 57, formerly of Little Elm, Texas, were found guilty by a jury of 14 counts of wire fraud and conspiracy to commit wire fraud.
Evidence presented at the three-week trial showed that Stewart and Sewall were owners and executives of companies operating on various Caribbean islands under the names Mediatrix Capital and Blue Isle Markets. As part of the scheme Stewart and Sewall provided false and fraudulent information about an algorithm-based foreign currency exchange (“ForEx”) trading program to potential investors and to salespeople they were using to solicit investors. For example, Stewart and Sewall falsely represented that Mediatrix had a history of successful ForEx trading going back to 2013 with no months of losses when, instead, Mediatrix did not exist until 2014 and its trading history included many months of net losses. Mediatrix promised its investors “100% Transparency,” “100% Liquidity” and “World Class Returns.”
Additional evidence at trial showed that after luring investors into the scheme Stewart and Sewall fraudulently induced them to stay by manipulating account statements to show only positive trades while intentionally hiding massive losses that substantially reduced those investors’ accounts. By the end of the scheme, Stewart and Sewall had promised investors over $179 million but had only $9.8 million in their accounts, a gap that they internally referred to as “the hole.” Even as they lost approximately $32 million in trades, Stewart and Sewall rewarded themselves with approximately $30 million in performance fees. They also used their brokerage, Blue Isle, to fraudulently convert investor money into over $40 million in markup fees. They spent the money on real estate, boats, cars, jewelry, and other luxuries.
“Holding white-collar criminals accountable for fraud like this is a key part of the work that we do," said United States Attorney for the District of Colorado Cole Finegan. “This was a complex scheme and these guilty verdicts are a reflection of the outstanding work of our prosecutors as well as the exceptional work of our partners at the FBI.”
“The defendants orchestrated an elaborate foreign currency investment fraud scheme that caused extensive financial harm to unsuspecting victims,” said Special Agent in Charge Mark Michalek.” “FBI Denver will continue to investigate and seek justice for individuals who fall victim to criminals who cheat and lie their way into victims’ pockets.”
United States District Judge William J. Martinez presided over the trial. Sentencing will be held in November 2024. Each count of wire fraud carries a maximum penalty of twenty years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment. The conspiracy count carries a maximum penalty of five years of imprisonment, three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, and a $100 special assessment.
A third partner involved with Mediatrix and Blue Isle — Michael Young — previously pleaded guilty to making a false statement to the Securities and Exchange Commission and will be sentenced on June 11, 2024.
The Federal Bureau of Investigation’s Denver Field Office conducted the investigation. Assistant United States Attorneys Anna Edgar, Bryan Fields, and former AUSA Pegeen Rhyne handled the prosecution.
Case number: 21-cr-00034-WJM
Former Insider at TIAA-CREF Sentenced to 70 Months in Prison for Involvement in Multimillion-Dollar Insider Trading RingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that LAWRENCE BILLIMEK was sentenced by U.S. District Judge Paul G. Gardephe to 70 months in prison for engaging in a multi-year insider trading scheme resulting in tens of millions of dollars in profits. BILLIMEK previously pled guilty to one count of securities fraud before Judge Gardephe.
U.S. Attorney Damian Williams said: "Lawrence Billimek shamelessly abused his position, orchestrating an insider trading scheme that pocketed tens of millions in illicit gains. Billimek thought that hiding his conduct behind burner phones and lies would shield him from detection from law enforcement. He was mistaken. Prosecuting white collar crimes like this sends a clear message that no one, regardless of their position, privilege, or the type of crime they commit, is outside the reach of the law.”
According to the filings and statements made during court proceedings:
Through his employment at TIAA-CREF, BILLIMEK had advance access to certain of TIAA-CREF’s anticipated trades. Due to the size of certain of these TIAA-CREF trade orders, they often caused market movement in the securities they traded. From at least 2016 through his arrest in December 2022, BILLIMEK abused his insider access and provided inside information about these trades to his co-conspirator (“CC-1”) who then bought or sold the same securities in advance of the TIAA-CREF trading. CC-1 then provided BILLIMEK with a portion of the profits on these trades.
BILLIMEK and CC-1 engaged in these front-running trades on over a thousand occasions between in or about 2016 and December 2022. In an effort to hide their scheme, BILLIMEK used prepaid, unregistered “burner” phones to communicate with CC-1 throughout the trading day. BILLIMEK and CC-1 also lied to various financial institutions about the source of funds they received during the scheme, claiming that they were, among other things, gifts. In total, BILLIMEK and CC-1 generated tens of millions of dollars in profits. BILLIMEK bought multiple homes and funded an active social lifestyle through the proceeds of his criminal scheme.
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In addition to a prison term, BILLIMEK, 52, of Hailey, Idaho, was sentenced to three years of supervised release and ordered to pay forfeiture of $12,249,000.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason A. Richman is in charge of the prosecution.
Five Members of Multi-State Gas Pump Skimming Device and Fuel Theft Ring Arrested on Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging five individuals with conspiracy, 4 counts of wire fraud, 15 counts of access device fraud, and 3 counts of aggravated identity theft. The following individuals have been charged in the indictment in connection with their participation in a multi-state gas pump skimming device conspiracy involving the theft of diesel fuel:
- Luis Edel Trujillo Pena (29, Miami)
- Deyvis Hernandez (37, Miami)
- Luis Ernesto Vigil Ochoa (32, Miami)
- Isvaldo Guerra Perdomo (38, Jacksonville)
- Deonelky Tabares Cid (36, Tampa).
If convicted each faces up to 20 years in federal prison for each count of wire fraud, up to 10 years’ imprisonment for each count of access device fraud, up to 5 years in prison on the conspiracy count, a consecutive minimum mandatory penalty of 2 years’ imprisonment for each aggravated identity theft count, and payment of restitution to the victims they defrauded.
According to court documents, the individuals worked together, and with others, to place skimmers on gas pumps in the north Florida area and other states. Using the account numbers stolen by the skimmers, they made counterfeit credit and debit cards and then used them to purchase primarily diesel fuel. Utilizing vehicles with a bladder/container to pump the fraudulently purchased diesel fuel into, the conspirators would offload the stolen fuel into containers at a fuel yard. The stolen fuel was then sold to a gas station associated with one of the co-conspirators.
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 Federal Bureau of Investigation, the Florida Department of Agriculture and Consumer Services, the Florida Highway Patrol, the Jacksonville Sheriff’s Office, U.S. General Services Administration - Office of Inspector General and the U.S. Secret Service – Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Final Elite Assassin Milla Gang Member Sentenced to More Than 18 Years in Prison for Violent Crimes in Two Separate CasesRead the Press Release
Earlier today, in federal court in Brooklyn, Qawon Allen, also known as “40” and “Phorty Wap,” was sentenced by United States District Judge Kiyo A. Matsumoto to 140 months in prison for assault in-aid-of-racketeering in connection with his role in the shooting and attempted murder of a rival. Allen pleaded guilty to the charges in May 2022. Today’s sentence will be served consecutive to the seven-year term of imprisonment imposed earlier this year by United States District Judge Nicholas G. Garaufis for brandishing a firearm in furtherance of a crime of violence. Allen pleaded guilty to the firearm charge in January 2020.
Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, announced the sentence.
Allen was a long-time member of the East New York-based Elite Assassin Millas (E.A.M.), a set of the Bloods street gang that operated primarily in East New York. The gang made money through fraud and drug dealing, particularly sales of crack cocaine and marijuana. The gang murdered or attempted to murder its rivals to maintain its power and referred to East New York as “Gun Town” for the level of violence its members and associates committed and perpetuated. Allen helped track down rivals so E.A.M members could shoot them.
In United States v. Allen, Docket No. 19-CR-128, Allen pleaded guilty to robbing a drug dealer at gunpoint. In United States v. Allen, Docket No. 20-CR-213, Allen pleaded guilty to his role in the shooting of a victim. Specifically, Allen alerted the gang’s so-called “Godfather” Quandel Smothers and another member of E.A.M. to the victim’s location so that the victim could be murdered. Allen also provided the location of a hidden firearm that others could pick up to use in the shooting.
All other members and associates of E.A.M. that were charged with Allen have been convicted of crimes including conspiracy to commit murder, using firearms in connection with murder, assault, and interstate stalking causing life threatening injury and sentenced for their conduct. Tyshawn Corbett was sentenced to 45 years’ imprisonment; Smothers was sentenced to 23 years’ imprisonment after being convicted at trial; Marlon Bristol was sentenced to 135 months’ imprisonment; Devon Bristol was sentenced to 80 months’ imprisonment; and Desmonn Beckett was sentenced to 64 months’ imprisonment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Genny Ngai, and Matthew Galeotti are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.
The Defendant:
QAWON ALLEN (also known as “40” and “Phorty Wap”)
Age: 28
Brooklyn, New YorkDefendant Convicted at Trial:
QUANDEL SMOTHERS (also known as “Chucky”)
Age: 32
Brooklyn, New YorkDefendants Who Pleaded Guilty
TYSHAWN CORBETT (also known as “Reck”)
Age: 32
Brooklyn, New YorkDESMONN BECKETT (also known as “Des”)
Age: 30
Brooklyn, New YorkDEVON BRISTOL (also known as “D”)
Age: 32
Brooklyn, New YorkMARLON BRISTOL (also known as “Marlo”)
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-213 (KAM); E.D.N.Y. Docket No. 19-CR-128 (NGG)
Eureka Resident Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – William Wood has been sentenced to 120 months in prison following his conviction on a charge of possession of child pornography, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was imposed by the Hon. Trina L. Thompson, United States District Judge, on May 17, 2024.
Wood, 62, of Eureka, California, pleaded guilty in October 2023 to one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). He was originally indicted on that charge by a federal grand jury in December 2022.
According to the government’s sentencing memorandum, the defendant possessed more than 300 images and videos depicting child pornography on his electronic devices, including approximately 24 images depicting infants or toddlers and hundreds more depicting prepubescent children. The government further argued in its sentencing papers that the defendant used social media to send child pornography to another individual, including images depicting infants or toddlers and prepubescent children engaged in sexually explicit conduct.
In addition to sentencing Wood to prison, Judge Thompson ordered the defendant to serve five years of supervised release to begin after his prison term is completed and to pay $35,000 in restitution.
Assistant United States Attorney Kelsey Davidson is prosecuting the case with the assistance of Sara Slattery. The prosecution is the result of an investigation by the FBI, with assistance from the Humboldt County Sheriff’s Office.
Domino’s Pizza Franchisee Sentenced to a Year and a Day in Prison, Ordered to Pay $2.5 Million to IRS for Tax CrimesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ammar Jali, 56, of Bethlehem, PA, was sentenced today by United States District Judge Joshua D. Wolson to 12 months and one day in prison, one year of supervised release, and a $50,000 fine, and ordered to pay $2.5 million to the Internal Revenue Service for filing false tax returns.
The defendant was the sole shareholder of 36 Domino’s Pizza restaurants located throughout Pennsylvania and Ohio. On January 29, 2024, Jali pleaded guilty to filing a false tax return for his businesses and himself.
From 2014 to 2016, Jali underreported the gross receipts for his Domino’s stores by $10,000,000 and caused his accountant to file false tax returns. Accordingly, Jali caused over $2.5 million of tax loss to the federal government.
“Owning your own business often requires taking some risks,” said U.S. Attorney Romero. “But in underreporting his restaurants’ earnings by millions and millions of dollars, Mr. Jali went beyond risk-taking straight to law-breaking. In doing so, he was effectively thumbing his nose at both the IRS and all the honest filers who accurately report their income and pay what they owe. This case should send the message that my office and IRS-CI won’t put up with tax cheats, and we will pursue and prosecute these crimes to ensure they’re held accountable.”
“Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes,” said IRS Criminal Investigation Acting Special Agent in Charge Denise Leuenberger. “Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes.”
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Tiwana Wright.
Detroit Man Pleads Guilty to Conspiracy Involving More Than $14 Million in Fraudulent Pandemic Relief LoansRead the Press Release
PITTSBURGH, Pa. - A resident of Detroit, Michigan, pleaded guilty in federal court on May 15, 2024, to a fraud conspiracy charge involving the largest known Paycheck Protection Program (PPP) fraud in the Western District of Pennsylvania, United States Attorney Eric G. Olshan announced today.
Matthew Lloyd Parker, 37, pleaded guilty before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Court was advised that, between March 2020 and August 2021, Parker conspired with others to defraud lenders of more than $14 million through false PPP loan applications for COVID-19 pandemic relief. Parker, a licensed CPA from Detroit, recruited hundreds of small businesses in Pittsburgh and Detroit and falsified PPP loan applications in their names. The Small Business Administration approved 226 of those applications, resulting in loans totaling approximately $14.5 million to various businesses.
Judge Hardy scheduled sentencing for September 17, 2024. The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Parker.
Columbia Man Sentenced to 22 Years for Fentanyl Trafficking, Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for distributing fentanyl and illegally possessing several firearms.
Robert Jevon Bean, also known as “Shaq,” 37, was sentenced by U.S. District Judge Roseann A. Ketchmark to 22 years and six months in federal prison without parole.
On Nov. 30, 2023, Bean pleaded guilty to one count of conspiracy to distribute fentanyl and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Bean was stopped by Columbia police officers on June 22, 2022. During the traffic stop, he was found to be in possession of 12.5 grams of fentanyl. Officers executed a search warrant at Bean’s apartment and found his 10-year-old child at home alone. According to court documents, unsecured firearms were found next to video game controllers, lying next to the couch, at the entry of the kitchen pantry where food was kept, and alongside a bed.
Officers seized from Bean’s residence a Glock 9mm handgun that had been converted into a machine gun, an American Tactical AR-15 .223/5.56 pistol, a Glock .40-caliber handgun, an Extro 12-gauge shotgun, an Anderson AR-15 .223/5.56 pistol, a Keltec .40-caliber rifle, 46.71 grams of fentanyl, drug paraphernalia, multiple firearm magazines, including a drum magazine, multiple boxes of ammunition, and $23,235 in cash, which must be forfeited to the government.
Bean told investigators that he paid $1,400 per ounce for the approximately two ounces of fentanyl they found at his residence. Bean sold fentanyl for $210 per gram. Based on Bean’s statements, he has distributed at least four kilograms (8.8 pounds) of fentanyl from a source in Detroit, Michigan, and approximately two ounces from a more recent source in St. Louis, Mo.
Bean stated he buys all his guns off the streets locally, and often takes guns in trade for drugs. Bean told investigators all the guns came from Columbia except the Glock machine gun, which he purchased in St. Louis for $1,500. Investigators found multiple posts and livestream videos on Bean’s Facebook profile that show Bean with a variety of firearms, including a black Taurus 9mm handgun with an extended magazine and a laser attachment and what appeared to be a Glock handgun with an extended magazine. Another video posted showed Bean with three handguns with high-capacity drum magazines, a semi-automatic shotgun, an AK-47 with an extended magazine, an AR-15 with dual 30-round magazines, and a Kel-tec Sub-2000 with a brass catcher. Other videos showed Bean with an AR-style pistol and an AK-47-style rifle.
This case was prosecuted by Assistant U.S. Attorney Melissa Ann Pierce. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cole County Jail Inmate Sentenced for Contraband DrugsRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was sentenced in federal court today for possessing illegal drugs while incarcerated in the Cole County Jail.
Waun Ramon Ivory, 32, was sentenced by U.S. District Judge Roseann A. Ketchmark to eight years in federal prison without parole.
On Oct. 26, 2023, Ivory pleaded guilty to possessing contraband in prison. Ivory admitted that he was in possession of cocaine while incarcerated in the Cole County Jail.
According to court documents, Ivory was incarcerated pending a supervised release revocation hearing in an earlier case. In 2017, Ivory was convicted in federal court of being a felon in possession of a firearm, after a family member called 911 reporting that Ivory was carrying a firearm and threatening to “put a hole” in another person’s head. Ivory was sentenced to five years in prison; he was released to supervision on June 7, 2022.
Ivory failed to comply with the conditions of his supervision, and a warrant was issued for his arrest. Before he could be arrested, he was charged with a new offense after a woman reported she was assaulted by Ivory. The court revoked Ivory’s supervision and sentenced him to two years in prison.
While in the Cole County Jail pending the supervised release revocation, Ivory was caught in possession of cocaine on March 6, 2023. According to court documents, he also possessed a razor, unsheathed from its safety case. While this case has been pending, Ivory also was caught in possession of a weapon made from a toothbrush, as well as another razor.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the U.S. Marshal’s Service and the Cole County, Mo., Sheriff’s Department.
Buffalo man who killed two people going to prison for 20 yearsRead the Press Release
Buffalo, N.Y. -- U.S. Attorney Trini E. Ross announced today that Brandon Jonas, 39, of Buffalo, NY, who was convicted of discharge of a firearm in furtherance of a crime of violence, was sentenced to serve 240 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joseph M. Tripi, who handled the case, stated that Jonas shot and killed Nelson and Miguel Camacho, who were brothers, inside a residence on Niagara Street on Buffalo’s West Side. Jonas, along with co-defendants Efrain Hidalgo and Misael Montalvo, received information that the brothers might have large amounts of money or drugs and would be good targets to rob. On November 11, 2004, defendant Montalvo drove Jonas and Hildalgo to the vicinity of the Niagara Street residence. Jonas was armed with an AK-47 style rifle and Hidalgo had a baseball bat. After surveilling the residence, Jonas and Hildalgo forced their way into the residence in an attempt to rob money and drugs from the brothers. During the robbery attempt, Jonas shot and killed the Camachos. Josue Ortiz served 10 years in state prison for the murders of Nelson and Miguel Camacho. In 2015, his conviction was vacated by an Erie County Court judge based on the findings of this federal investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Stanley Edwards, III, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller.
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Boone County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kevin Wayne Britton, 54, of Danville, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on September 1, 2023, Britton possessed a Savage model 67F 12-gauge shotgun and a Hoban Manufacturing model 45 .22-caliber rifle in the South Charleston area.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Britton knew he was prohibited from possessing firearms because of his prior felony conviction for obstruction of justice in United States District Court for the Southern District of West Virginia on November 15, 2012.
Britton is scheduled to be sentenced on August 21, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Troy D. 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. 2:24-cr-30.
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Bakersfield Man Sentenced for Role in Sex Trafficking Enterprise at Desert Star MotelRead the Press Release
FRESNO, Calif. — A federal judge sentenced Roy Gene Drees, 48, of Bakersfield, today to four years in prison for use of facilities of interstate commerce in aid of a racketeering enterprise, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Jatin Bhakta purchased and began operating the Desert Star Motel at 516 South Union Avenue in Bakersfield in 2015. From 2015 through late 2020 the Bakersfield Police Department made numerous prostitution-related arrests and child rescues at the property. Drees lived and worked at the motel until a federal search warrant was executed on Jan. 22, 2021, at which time 15 prostitutes and three pimps were encountered along with Drees and Bhakta. While working at the motel, Drees intentionally helped the management and carrying on of the prostitution activity through various means, including through telephone calls, text messages, providing transportation, and making motel arrangements.
One pimp, Darnell Edwards, who had forced two minor females to engage in prostitution at the Desert Star, was sentenced on May 1, 2023, to 19 years and seven months in federal prison.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Bakersfield Police Department, and the Parole Division of the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney David L. Gappa 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 those who exploit children via the internet, as well as to identify and rescue victims.
Arizona Tax Preparer Pleads Guilty to Filing False Tax Returns as Part of a Nationwide Abusive-Trust Tax Shelter SchemeRead the Press Release
An Arizona man pleaded guilty on Friday to two counts of assisting in the preparation of false tax returns for individuals who used an abusive-trust tax shelter to underreport their income and tax liabilities.
According to court documents and statements made in court, from 2017 to 2023, Kent Ellsworth operated Ellsworth Stauffer P.C., a return preparation business. During that time, Ellsworth participated in a scheme to defraud the IRS that involved the promotion, sale and implementation of a fraudulent tax shelter. Ellsworth participated by preparing and filing over 500 false tax returns for approximately 60 clients nationwide who used the tax shelter to conceal income from the IRS and not pay tax. Ellsworth intentionally caused more than $60 million in income to be fraudulently sheltered from the IRS, which resulted in a tax loss to the IRS of approximately $17 million.
Ellsworth prepared the false tax returns to further the abusive-trust tax shelter scheme carried out by others. Clients who purchased the tax shelter – most of whom were successful business owners – were directed to assign or “donate” nearly all of their income to sham trusts and a so-called “private family foundation” to create the illusion that the income was not theirs. However, the sham trusts and foundations were nothing more than bank accounts designed to hold funds the clients earned and continued to control.
To carry out the scheme, Ellsworth was taught how to prepare tax returns utilizing the scheme’s fraudulent methods. He was instructed to report all income assigned to a sham trust as income of the trust and to offset that income by deducting all expenses paid for by the trust, including the clients’ personal living expenses. Ellsworth was paid fees for preparing the returns by the clients participating in the tax shelter.
Ellsworth is scheduled to be sentenced on Aug. 14. He faces a maximum penalty of three years in prison for each count of preparing and filing false tax returns. Ellsworth also faces a maximum fine of $250,000, a period of supervised release and the costs of prosecution for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Special Agent in Charge Andy Tsui of IRS Criminal Investigation’s (IRS-CI) Denver Field Office made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.
Albuquerque Man Sentenced for Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – An Albuquerque man was sentenced to 15 years in prison after pleading guilty to being a felon in possession of a firearm. This case was adopted from state prosecution in cooperation with the Second Judicial District Attorney’s Office.
According to court documents, on November 13, 2022, a husband and wife were waiting for food at a Church's Chicken drive-thru on Broadway Blvd SE. Joseph Dino Lopez, 59, approached their car, banged on the window, and yelled at them while appearing under the influence.
Surveillance footage shows Lopez retrieving a blue bag containing a shotgun and approaching the victims' parked car. After an altercation where the male victim pepper sprayed him, Lopez pulled out the shotgun, loaded it, and pointed it at the couple before they fled. Lopez briefly left the scene to wash the pepper spray out of his eyes, but returned, and APD arrested him as he exited the Church's Chicken restaurant. The loaded shotgun was recovered from the blue bag he had left behind, and additional ammunition was discovered in his shirt pocket.
At the time of the offense, Lopez had previously been convicted of a total of nine felonies.
After completing his term of imprisonment, Lopez will be required to serve 3 years of supervised release.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Bernalillo County District Attorney Sam Bregman made the announcement today.
The Albuquerque Police Department investigated this case with assistance from the FBI Albuquerque Field Office. Special Assistant U.S. Attorney Peter Haynes prosecuted the case as part of an agreement with the Second Judicial District Attorney’s Office.
Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.
The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state.
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22 Alleged Drug Traffickers Charged in Wichita FallsRead the Press Release
Twenty-two alleged drug dealers in Wichita Falls, Texas have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Sixteen of the 22 defendants were arrested during a takedown on Thursday that included the use of multiple tactical units, including SWAT teams from five FBI divisions, the FBI’s Hostage Rescue Team (HRT), the Texas Department of Public Safety Special Response Teams, the U.S. Marshals, and the Wichita Falls Police Department. Six defendants had been previously taken into custody.
Twenty-one of the 22 defendants were charged via criminal complaint with conspiracy to possess with intent to distribute controlled substances:
- Dywane Cecil Graham, aka “D”
- Dmetrius Lakeith Brooks, aka “D Blocc”
- Dominique Equincy Hall, aka “Playa D”
- Nicholas Bryan Darcus, aka “Locc D”
- Brandy Lynn Flowers, aka Brandy Mason
- Jaryd Blake Howard
- Jewel Wayne Fletcher, Sr., aka “Goofi”
- Sarah Leann Parker, aka Sarah Davis
- Robert “Bobby” Lee Collins
- Madeline Josephine Stephens, aka Madeline Kearney
- Elisha Earl Johnson, aka “Cash”
- Samuel Conta Manuel, aka “Butterman”
- Kiesha Tanga Wyatt, aka “Tanga”
- Shedrick “Sed” Cortez Cyrus
- Robert Thomas Bustamante
- Kenzie June Lozano
- William Lee Freeman, aka “Ghost”
- Jack Bishop Cline
- Dwight Albert Simpson, aka “Tray”
- Jimmie Scott Williams, aka “Motorcycle Man”
- Stanley Wayne Britt
The 22nd defendant, Ujamaa Jelani Rashaun Ballard, was charged in a sperate criminal complaint with conspiracy to possess with intent to distribute controlled substances.
According to the 21-defendant criminal complaint, the investigation began in March 2023, when law enforcement learned from confidential informants that Dwayne Graham and Dmetrius Brooks – both associated with the notoriously violent Crips street gang – were operating a methamphetamine distribution ring in Wichita Falls, Vernon, and its environs.
Over the ensuing months, law enforcement deployed several confidential sources to make multiple drug buys, which were video and audio recorded. They also searched several suspects’ vehicles and residences, where they recovered copious amounts of methamphetamine and numerous firearms. On one occasion, a defendant led police on a 9.5- mile pursuit, tossing a Ziploc baggie full of meth out his window as he sped off.
To date, law enforcement has recovered 7,229.46 grams of methamphetamine, approximately 719 grams of powder cocaine, approximately 55 grams of crack cocaine, approximately 49.75 grams of powdered fentanyl, approximately 2,197 counterfeit Percocet pills laced with fentanyl, and nine firearms in the course of the investigation.
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, they each face a minimum of 10 years and up life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office - Wichita Falls Resident Agency, the Wichita Falls Police Department, the Wichita County Sheriff’s Office, the U.S. Marshals Service, and the Texas Department of Public Safety conducted the investigation with assistance from the Drug Enforcement Administration’s South Central Lab. Valuable assistance was also provided by Wichita County District Attorney’s Office Drug Enforcement Division, Wilbarger County District Attorney’s Office, Vernon Police Department, Crowell Police Department, Oklahoma Bureau of Narcotics, and the Clay County Sheriff’s Office. Assistant U.S. Attorney Laura Montes is prosecuting the case.
17 May 2024
West Roxbury Man Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A West Roxbury man pleaded guilty on May 15, 2024 in federal court in Boston to a fraud charge in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP).
Donovan Scarlett, 25, pleaded guilty to one count of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 5, 2024.
Scarlett was charged and arrested in February 2024 along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy; drug trafficking; firearms charges; and financial frauds, including COVID-related fraud.
In March 2021, Scarlett submitted a fraudulent PPP loan application on behalf of his purported business. The fraudulent PPP loan application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2020 and Scarlett’s criminal history. Scarlett also submitted false tax records in support of his loan application. Based on the fraudulent application, Scarlett received approximately $13,600 which he spent on non-business-related expenses.
The CARES Act created a temporary loan program directed at small businesses called the PPP. PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit 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-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Watauga Man Convicted by Federal Jury of Assault by Striking, Beating or WoundingRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that Justin James Schneider, age 38, of Watauga, South Dakota, was found guilty of Assault by Striking, Beating or Wounding as a result of a two-day federal jury trial in Aberdeen, South Dakota.
The charge carries a maximum penalty of one year in federal prison and/or a $100,000 fine, one year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Schneider was indicted by a federal grand jury in January of 2023.
On October 26, 2022, in McIntosh, South Dakota, within the Standing Rock Indian Reservation, Schneider, a non-Indian man, was taking out the trash when he saw another man. Schneider believed the other man, a tribal member, had wronged him several months earlier. Schneider gestured for the man to join him in a neighbor’s yard. When they met, Schneider accused the man of misconduct, then punched him several times in the face. Schneider walked the man to his wife’s workplace, forced him to apologize for the alleged misdeed, and then punched him once more on the nose, breaking it.
This case was investigated by the Corson County Sheriff’s Office and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case.
A presentence investigation report was ordered and a sentencing date of August 1, 2024, was set. Schneider remains in the custody of the U.S. Marshals Service pending sentencing.
Virginia Man Admits to Online and Sexual Contact with MinorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Daniel Eliazar Ramos Rosa, 24, of Manassas, Virginia, has admitted to the coercion and enticement of a 10-year-old Jefferson County girl.
According to court documents and statements made in court, Rosa, also known as “Jay,” exchanged over 1,000 messages, photos, and videos with the victim via Snapchat, later traveling to the victim’s Harpers Ferry home and engaging in sexual activity with her. Rosa recorded the encounter on his phone.
Rosa faces at least 10 years and up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting this case on behalf of the government.
The FBI and Jefferson County Sheriff’s Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.