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Tuesday 9 April 2024
Fort Myers Man Sentenced to over Eighteen Years in Federal Prison for Distributing Child Sexual Abuse VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jesus Rojas Vera (25, Fort Myers) to 18 years and 4 months in federal prison for distribution of videos depicting the sexual abuse of children. Vera was also ordered to register as a sex offender. He entered a guilty plea on October 6, 2023.
According to court documents, beginning in June 2021, and continuing through July 27, 2022, several social media applications provided CyberTips to the National Center for Missing and Exploited Children to report that Vera was involved in the possession and distribution of child sex abuse material on various social media platforms.
On November 8, 2022, the FBI executed a search warrant at Vera’s residence and seized his cellphone and laptop. In addition, agents spoke with Vera who admitted that the cellphone belonged to him and no one else used it. Vera also admitted to using the various social media accounts, and he provided his email address.
On December 2, 2022, the FBI obtained a search warrant for information associated with Vera’s cloud account and email address. There were 59 images and 75 videos depicting child sexual abuse material. Further, investigators located child sexual abuse material that Vera had sent within group messages using his social media account. On August 7, 2022, Vera participated in a chat on social media with other participants. He sent a video of a child being sexually abused to the participants in the group chat.
The subsequent forensic examination of Vera’s cellphone and laptop revealed child sexual abuse material.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, which includes the Lee County Sheriff’s Office that assisted with this investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fort Lawn Man Returning to Federal Prison for Possessing FirearmsRead the Press Release
COLUMBIA, S.C. —Jonathan Neely, 34, of Ft. Lawn, was sentenced to 46 months of incarceration after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented to the court showed that on March 3, 2023, the Chester County Sheriff’s Office, United States Probation Office, and the United States Marshals’ Service (USMS) obtained an arrest warrant for Neely, for violation of his federal supervised release and a state search warrant for his residence, located in Ft. Lawn. Neely was on federal supervised release based upon convictions for knowingly possessing an unregistered firearm, knowingly possessing an unregistered firearm silencer, knowingly possessing of an unregistered firearm silencer without a serial number and possessing a firearm by an unlawful drug user. These convictions happened in federal court in Asheville, North Carolina in 2018.
A search of the residence resulted in the seizure of multiple rounds of ammunition, a pistol and a plastic baggie containing methamphetamine. Neely was not home during the search. Law enforcement then went to another residence in Ft. Lawn where one of Neely’s family members lived. Investigators noted a white colored trailer on the property. The police spoke to the family member who stated that the trailer belonged to Neely, that he had dropped it off on the property, and that only Neely had access to it. The family member stated that they did not have keys to the trailer or knew what was inside of it. The police obtained a search warrant for the trailer. A search of the trailer was then executed. In the trailer, the police found a large amount of ammunition and six firearms.
On March 14, 2023, the USMS located Neely and placed him under arrest. Following his arrest, Neely acknowledged that he owned the firearms found in the trailer.
United States District Judge Mary Geiger Lewis sentenced Neely to 46 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by United States Probation Office, United States Marshals’ Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Chester County Sheriff’s Office. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Former corrections officer charged with accepting bribesRead the Press Release
CORPUS CHRISTI, Texas – A Three Rivers resident and former Bureau of Prisons (BOP) employee is expected to appear in federal court on two counts of bribery of a public official, announced U.S. Attorney Alamdar S. Hamdani.
Justin Matthew Gonzalez, 26, is scheduled to appear before U.S. Magistrate Judge Julie K. Hampton at 9:45 a.m.
According to the indictment, returned April 4 and unsealed upon his arrest April 8, Gonzalez formerly served as a corrections officer at the Federal Correctional Institution Three Rivers. The charges allege he accepted cash as payment to smuggle contraband into the correctional institution.
If convicted, Gonzalez faces up 15 years in federal prison and a possible $250,000 maximum fine.
Department of Justice – Office of Inspector General South Central Region conducted the investigation. Assistant U.S. Attorneys Lisa Collins and Carolyn Ferko are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Postal Worker Charged with Theft of Mail from Elmwood Post OfficeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that DAVID RAYFORD, age 40, of Kenner, La., was indicted on April 5, 2024 for Mail Theft, a violation of Title 18, United States Code, Section 1709.
The indictment charged RAYFORD with stealing a greeting card containing a Visa Gift Card and $100.00 cash from the United States mail on June 14, 2021.
If convicted, RAYFORD faces up to five (5) years imprisonment, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit, is in charge of the prosecution.
Final Defendant Sentenced in Connection with $1.3 Million Fraud Scheme Involving U.S. Postal EmployeesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that NATHANAEL FOUCAULT — a former U.S. Postal Service (“USPS”) letter carrier who was charged with eight other defendants in connection with their theft and unauthorized use of credit cards to defraud several national financial institutions, credit card companies, and major retailers — was sentenced today by U.S. District Judge Paul G. Gardephe. FOUCAULT’s co-defendants, JOHNNY DAMUS, a/k/a “Ace,” RASHAAN RICHARDS, a/k/a “Jay Dee,” a/k/a “JD,” a/k/a “Payso,” DEVON RICHARDS, a/k/a “Dev,” CONRAD HERON, a/k/a “Conny Cash,” LOUIS JEUNE VERLY, a/k/a “Luis Jesus Virola,” KAREEM SHEPHERD, a/k/a “Reem,” a/k/a “Marcus Ford,” a/k/a “Frank James,” FABIOLA MOMPOINT, a/k/a “Lady Fab,” and JOHNATHAN PERSAUD were previously sentenced by Judge Gardephe.
U.S. Attorney Damian Williams said: “These individuals participated in a years-long scheme to manipulate credit card companies and major retailers across New York and New Jersey in order to enrich themselves. The sprawling scheme was sophisticated, organized, and efficient. The USPS employees involved in this scheme abused their positions of trust in order to supercharge the fraud, which caused serious financial loss and compromised the identities of hundreds of victims. Thanks to the diligence of our law enforcement partners and the career prosecutors of this Office, the defendants have now been held accountable for their brazen criminal conduct.”
According to the allegations contained in the Superseding Indictment and statements made in public filings:
The defendants were convicted and sentenced for their participation in a multi-year scheme to steal credit cards from the mail spanning from approximately December 2018 to September 2022; use those stolen credit cards at a variety of stores, including high-end retailers; and sell some of the merchandise purchased with the stolen cards online. In order to obtain credit cards for use in the scheme, beginning in December 2018, RASHAAN RICHARDS, DEVON RICHARDS, and SHEPHERD conspired with USPS letter carriers, including MOMPOINT, FOULCAULT, and PERSAUD, to steal credit cards directly from mail routes. At the direction of DAMUS, members of the conspiracy, including RASHAAN RICHARDS, DEVON RICHARDS, SHEPHERD, HERON, and VERLY used the stolen credit cards at a variety of stores, including high-end retailers in Manhattan, resulting in over $1.4 million in charges to the credit card companies. In order to use the stolen credit cards, the defendants worked together to obtain personal identification information for hundreds of victims using a variety of internet-based sources so that they could provide credit card companies with the information necessary to activate the stolen credit cards. Following their purchases, the defendants transferred some of the fraudulently obtained items to DAMUS who, working together with a close associate, sold the items on a particular website, LuxurySnob.com, which purported to be an “online consignment and personal shopping company” specializing in “pre-owned luxury items,” but, in truth and in fact, many of the items it sells were purchased using stolen credit cards.
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FOUCAULT, 30, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay $11,803.91 in restitution and $11,803.91 in forfeiture.
A chart containing the sentences of FOUCAULT’s co-defendants is below.
Mr. Williams praised the outstanding investigative work and diligence of the U.S. Postal Inspection Service, USPS – Office of the Inspector General, and the New York City Police Department.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Ashley C. Nicolas, Madison Reddick Smyser, and Chelsea Scism are in charge of the prosecution.
DEFENDANT
SENTENCE IMPOSED
RASHAAN RICHARDS*
Six years in prison, forfeiture of $536,434.01 and 90 luxury goods and electronics
JOHNNY DAMUS*
63 months in prison, forfeiture of $536,434.01, over 600 luxury items, and the URL www.luxurysnob.com
KAREEM SHEPHERD
Seven years in prison and forfeiture of $536,434.01
DEVON RICHARDS
Three years in prison, forfeiture of $369,543.43 and 15 luxury goods
CONRAD HERON
Three years in prison and forfeiture of $536,434.01
LOUIS JEUNE VERLY
Two years in prison
FABIOLA MOMPOINT
One year in prison and forfeiture of $91,456.39
JOHNATHAN PERSAUD
Three years of probation and forfeiture of $29,104.73
Federal judge convicts Stafford man for his role in dogfighting ringRead the Press Release
ALEXANDRIA, Va. – A federal judge convicted a Stafford man yesterday on a charge of conspiracy to engage in an animal fighting venture.
According to court records and evidence presented at trial, from at least May 2015 through August 2020, Mark Joseph Rodriguez, aka “Slow Poke,” 45, and other conspirators from Virginia, Washington, D.C., and Maryland used a messaging app private group, which they generally referred to as "The DMV Board" or "The Board," as a place where they and their associates could discuss training fighting dogs, exchange videos about dogfighting, and arrange and coordinate dog fights, out of view of law enforcement. Members of the DMV Board also used the app to compare methods of killing dogs that lost fights, as well as to circulate media reports about conspirators who had been caught by law enforcement and discuss methods to minimize the likelihood that they would be caught themselves.
At various times throughout the conspiracy, Rodriguez actively participated in arranging dog fights. Rodriguez officiated dog fights, with one co-conspirator characterizing him as "the most recognized ref on the east coast." Rodriguez also regularly engaged in the DMV Board private group, providing results and narratives of fights, explanations of his refereeing decisions, and articles regarding the prosecutions of other defendants.
Rodriguez’s conviction follows the recent pleas of six of his codefendants to conspiracy to engage in an animal fighting venture. Eldridge Jermaine Jackson, aka “Big Head,” “4bhead,” and “4b,” 48, of Temple Hills, Maryland, pleaded guilty on March 18. Larry Alston, aka “Big Goon,” 49, of Windsor Mill, Maryland; Bashawn Allen, aka “Bey,” “425,” and “425 Money Boy$,” 34, of Trenton, New Jersey; and Dandre Patrick Wallace, aka “Abstract,” 47, of Upper Marlboro, Maryland, pleaded guilty on March 21. Isacc Jermaine Weathersby, aka “Big Fist,” “CROUSA,” “KingCro TC,” and “Team CRO,” pleaded guilty on March 22. Charles Edward Davis Jr aka “Cat Daddy” and “Deep in the Game,” 44, of Woodbridge, Virginia, pleaded guilty on March 28. Jackson, Alston, Allen, Weathersby, and Wallace are scheduled to be sentenced on June 18. Rodriguez and Davis are scheduled to be sentenced on July 2.
On Nov. 29, 2022, Derek Aaron Garcia, aka “Fatal Attraction,” 40, of Woodbridge, pleaded guilty to conspiracy to engage in an animal fighting venture, and Ricardo Glen Thorne, aka “Rip,” 53, of Camp Springs, Maryland, pleaded guilty to advertising an animal for use in an animal fighting venture. On March 7, 2023, U.S. District Judge Leonie M. Brinkema sentenced Garcia to 10 days in prison and Thorne to one year in prison.
On Nov. 9, 2022, Michael Roy Hilliard, aka “No Dayz Off,” 38, of Fort Washington, Maryland, pleaded guilty to conspiracy to engage in an animal fighting venture. On March 1, 2023, Judge Brinkema sentenced Hilliard to six months in prison.
On Nov. 4, 2022, Charles Edward Williams III, aka “Never Say Never,” 50, of Capital Heights, Maryland, pleaded guilty to conspiracy to engage in an animal fighting venture. On Feb. 21, 2023, Judge Brinkema sentenced Williams to two years in prison.
On June 16, 2023, Tarry Jeron “TJ” Wilson, aka “Tejai” and “City Limits,” 39, of Warsaw, Virginia, pleaded guilty to conspiracy to engage in an animal fighting venture. On June 20, 2023, Judge Brinkema sentenced Wilson to two years in prison.
On Nov. 10, 2022, Laron Mecco West, aka “Frog” and “Get Sick,” 47, of Capital Heights, Maryland, pleaded guilty to conspiracy to engage in an animal fighting venture. West passed away on Feb, 10, 2023, prior to sentencing.
Rodriguez faces a maximum penalty of five years in prison when sentenced on July 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Judge Brinkema announced the verdict.
Assistant U.S. Attorneys Gordon Kromberg and Vanessa Strobbe prosecuted the case.
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. 1:23-cr-176.
Fact Sheet: COVID-19 Fraud Enforcement Task Force 2024 ReportRead the Press Release
Since its inception in May 2021, members of the COVID-19 Fraud Enforcement Task Force (CFETF) have used a full range of tools to hold accountable fraudsters and other criminals who sought to exploit the government’s pandemic response for their personal gain. This work has resulted in:
- More than 3,500 defendants charged with federal crimes.
- More than $1.4 billion in seizures and forfeiture orders to recover stolen CARES Act funds.
- More than 400 civil settlements and judgments.
To achieve these results, CFETF members have built a comprehensive program to identify fraud, recover assets, and hold wrongdoers accountable. This has included:
- Five prosecutorial COVID-19 Fraud Enforcement Strike Forces—based in California, Colorado, Maryland, New Jersey, and Florida—with dedicated funding to pursue pandemic fraud.
- A first-of-its-kind National Unemployment Insurance Fraud Task Force that leverages data from state workforce agencies and the Small Business Administration to identify those who exploited pandemic relief programs.
- A Pandemic Analytics Center of Excellence that creates sophisticated data products designed to detect, deter, and stop pandemic fraud across multiple government agencies.
But our work isn’t done. To continue CFETF’s essential mission—and to ensure that COVID-19 fraudsters don’t get away with it—legislation is required. This includes:
- Extending the statute of limitations for all COVID-19 fraud-related offenses.
- Extending the statutory authorization for the Pandemic Response Accountability Committee (PRAC), a body of 20 federal Inspectors General overseeing pandemic relief spending.
- Adequately resourcing COVID-19 anti-fraud efforts, including data sharing, lead development, criminal prosecutions, and asset recoveries.
To learn more, download CFETF’s 2024 Annual Report, available at justice.gov.
FCC Petersburg corrections officer pleads guilty to taking bribesRead the Press Release
RICHMOND, Va. – The final defendant in a bribery conspiracy within the Federal Correctional Complex at Petersburg, Virginia (FCC Petersburg), pleaded guilty today to conspiracy to solicit and accept a bribe by a public official.
According to court documents, Daniel Thomas, 37, of Colonial Heights, Virginia, has been a correctional officer at FCC Petersburg since February 2015, leading a prisoner work detail as a Pipe Fitter Supervisor. William R. Hall, 49, of Lexington, Kentucky, was a prisoner assigned to Thomas’ work detail from June 29, 2022, until he was transferred to FCC Fort Dix, New Jersey, on Nov. 17, 2022.
During the time Hall was assigned to Thomas’ work detail, Hall paid bribes to Thomas through Kayla Cronin, 29, who was Hall’s associate from Lexington. In exchange, Thomas provided contraband, including tobacco products and anabolic steroids, to Hall in prison. Hall then sold contraband to other prisoners. Hall transferred proceeds from those sales to Cronin through an intermediary. Cronin would then send bribes to Thomas by mail through the U.S. Postal Service, keeping some of the money for herself. Hall directed Cronin by coded conversations.
On Oct. 25, 2023, Cronin pleaded guilty to conspiracy to commit bribery. She is scheduled to be sentenced on May 9. On April 5, Hall pleaded guilty to conspiracy to commit bribery. He is scheduled to be sentenced on July 11. Thomas is scheduled to be sentenced on July 18. Each defendant faces up to five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Mid-Atlantic Region, made the announcement after Magistrate Judge Summer L. Speight accepted the plea. The cases are assigned to Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorneys Avi Panth and Robert Day are prosecuting these cases.
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 Nos. 3:24-cr-36, 3:24-cr-18, and 3:23-cr-132.
Erie Man Indicted on Methamphetamine ChargeRead the Press Release
JOHNSTOWN, Pa. – A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Shawn Geer, 47, as the sole defendant.
According to the Indictment, on or about July 2, 2023, in the Western District of Pennsylvania, Geer possessed with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation leading to the Indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Durant Man Sentenced to 44 Months in Federal Prison for Bank RobberyRead the Press Release
Jackson, MS – A Durant man was sentenced to 44 months in federal prison for bank robbery. He was also ordered to pay $6,506.00 in restitution to the bank.
According to court documents and statements made in court, Curtis Lee Williams, 22, robbed a Durant bank on July 7, 2022. The same day, one of the $50 bait bills from the bank was used to purchase three firearms from a pawn shop in Kosciusko. An arrest was made in Durant later that day following a traffic stop.
Williams was indicted by a federal grand jury on April 4, 2023, and pleaded guilty on December 21, 2023.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation and the Durant Police Department.
Assistant U.S. Attorney Kimberly T. Purdie prosecuted the case.
Duquesne Resident Sentenced to Three Decades of Prison for Production of Child Sexual Abuse MaterialsRead the Press Release
PITTSBURGH, Pa. - A resident of Duquesne, Pennsylvania, has been sentenced in federal court to 30 years of incarceration on each of three counts, to be served concurrently and then followed by lifetime supervised release, on his conviction of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge W. Scott Hardy imposed the sentence on George Cobbs, 41.
According to information presented to the Court, on multiple occasions, Cobbs attempted to and did use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
Prior to imposing sentence, Judge Hardy noted that Cobbs had violated the minor victim’s trust for his own gratification and denounced Cobbs’ memorialization of his sexual abuse of the minor as degrading the minor’s personhood.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Olshan commended the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation, Allegheny County Police Department, and Duquesne Police Department, for the investigation leading to the successful prosecution of Cobbs.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dontrell Nance Pleads Guilty to Role in Dunham’s Handgun TheftRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Dontrell Nance, 25, pled guilty to kidnapping and brandishing a firearm during and in relation to a crime of violence. Nance faces a maximum possible penalty of life in prison. The previous press releases, complaint, and press conference can be viewed here and here.
“Illegal firearms flood our communities and are responsible for so much trauma and so many tears,” said U.S. Attorney Mark Totten. “Without the quick and careful work of law enforcement, these guns would have done more of the same. No level of violence is acceptable, and we will remain laser focused on the few who drive violence in their communities.”
Nance was charged along with his codefendant, Darnell Bishop, for the theft of 123 handguns from the Benton Harbor Dunham’s Sports. As part of his plea agreement, Nance admitted that he and Bishop kidnapped the Dunham’s manager from outside the manager’s home using a pistol, took him to a second location, and convinced the manager to provide keys and the alarm code for Dunham’s. Nance said he stayed with the manager while Bishop went to the store, returning with the handguns packed in two large coolers. Law enforcement has since recovered all 123 firearms.
“This investigation represents the worst of the worst type of scenario for our industry partners and their innocent employees. Everybody needs to be able to go to work and feel safe. Armed robberies of federal firearms licensees are one of ATF’s top priorities,” said Detroit Field Division Special Agent in Charge James Deir. “The message is clear: There is no place in our community for illegal firearms traffickers and those who choose to target and victimize business owners and employees who are just trying to provide for their families. In the end, ATF’s partnerships with other state and federal law enforcement agencies resulted in the shift disruption of this firearms trafficking scheme.”
“The increasing prevalence of illegal firearms poses a significant threat to the safety of our citizens,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The disruption of this scheme undoubtedly prevented numerous deaths. This case exemplifies the effectiveness of collaboration and coordination, and I am thankful for the prompt actions of our law enforcement partners, particularly the members of the Benton Harbor Safe Streets Task Force.”
This case was investigated by the Benton Charter Township Police Department, Benton Harbor Department of Public Safety, Berrien County Sheriff’s Department, Michigan State Police, ATF, and FBI.
Bishop pled not guilty to kidnapping, interference with commerce by robbery, brandishing a firearm during and in relation to a crime of violence, and theft of firearms from a federal firearms licensee. The charges against him in the indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Defendant who admitted to filing thousands of COVID-relief applications sentenced to 6 years in prisonRead the Press Release
COLUMBUS, Ohio – A Columbus man who estimated he filed more than 3,000 fraudulent COVID-relief applications was sentenced in U.S. District Court today to 72 months in prison.
The fraud scheme perpetuated by Ousmane Diane, 24, caused a loss of more than $908,000. He submitted applications for more than $2 million in funding.
Diane pleaded guilty in October 2023 to wire fraud and aggravated identity theft.
According to court documents, Diane used the identities of willing participants and stole identities to submit fraudulent federal fund applications. He submitted the fraudulent applications for both Economic Injury Disaster Loans and Pandemic Unemployment Assistance.
Diane organized the scheme for more than a year and recruited his six co-defendants in this case and others into the scheme. The defendant referred to the pandemic as the “bandemic” in reference to the stacks of federal cash he received.
Diane even advertised his fraudulent filing service through social media by posting: “Hey My Name is Ous And I Sell Methods To Help You Get Approved For Funds!!!”
Diane and six others were indicted in February 2023. All have pleaded guilty.
“Mr. Diane stole critical taxpayer money intended to help families during an unprecedented national pandemic,” said Special Agent-in-Charge Shawn Rice with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with Federal prosecutors and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Shawn Rice, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG); and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the sentence imposed today by U.S. District Court Judge Michael H. Watson. Assistant United States Attorney David J. Twombly is representing the United States in this case.
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Cumberland Man Convicted in Federal Court of Producing, Distributing, and Possessing Child PornographyRead the Press Release
PROVIDENCE, RI – A Cumberland man has admitted that he produced, distributed, and possessed child pornography, including videos he created while molesting two prepubescent girls, announced United States Attorney Zachary A. Cunha.
Michel Rodrigues, 21, pleaded guilty to two counts of sexual exploitation of a minor/producing child pornography; and one count each of distribution of child pornography and possession of and accessing child pornography. He is scheduled to be sentenced on July 16, 2024, and faces statutory penalties totaling between 15 and 100 years of incarceration. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to charging documents and information presented to the court, in July 2023, the Rhode Island State Police Internet Crimes Against Children (ICAC) task force received information from the National Center for Missing and Exploited Children that they had been notified by Twitter that and account belonging to Rodrigues was used to download and distribute images and videos of child sexual abuse. A review of the files by members of the ICAC Task Force and a Homeland Security Investigations agent determined that the files appeared to be self-produced, and involved six-and seven-year-old females with whom the defendant had contact.
On July 22, 2023, members of the ICAC task force and a Homeland Security Investigations agent executed a court-authorized search of Rodrigues’ residence. Both images and video files of child pornography were discovered stored on a cellphone owned by Rodrigues.
The case is being prosecuted by Assistant United States Attorney Peter I. Roklan.
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Court Enjoins Philips Respironics from Manufacturing and Distributing Adulterated and Misbranded Sleep and Respiratory Devices at or from Three Pennsylvania FacilitiesRead the Press Release
A federal court today ordered Philips RS North America LLC (Philips Respironics) to stop manufacturing most sleep and respiratory devices at three Pennsylvania facilities, and to stop distributing such devices from those facilities, until the company takes specific measures designed to increase the safety of its devices and ensure compliance with the Federal Food, Drug, and Cosmetic Act (FDCA).
In a complaint filed April 4, in federal court in the Western District of Pennsylvania, the United States alleged that Philips Respironics, a subsidiary of Philips Holding USA Inc., violated the FDCA by manufacturing and distributing adulterated and misbranded medical devices. Specifically, the complaint alleged that Philips Respironics manufactured continuous positive airway pressure (CPAP) machines, bi-level positive airway pressure (BiPAP) machines, and mechanical ventilators at facilities in Murrysville and New Kensington, Pennsylvania, and remediated certain ventilators at a facility in Mt. Pleasant, Pennsylvania, under conditions and using practices that failed to comply with the FDCA and with Good Manufacturing Practice regulations designed to assure the safety and effectiveness of the devices. The complaint also alleged that Philips Respironics failed to submit to FDA written reports of manufacturer-initiated corrections or removals for its devices, and further failed to validate and approve the process the company used to perform remediation work on certain recalled ventilators according to established procedures. The complaint further alleged that these violations were similar to violations observed during previous inspections that resulted in two FDA Warning Letters to Philips Respironics (for its Murrysville facility), a Warning Letter to its subsidiary Respironics California LLC (for another facility in Carlsbad, California) and a civil lawsuit and consent decree with another subsidiary of Philips Holding USA Inc., Philips North America LLC.
According to the complaint, millions of CPAP machines, BiPAP machines, and mechanical ventilators manufactured at the Murrysville and New Kensington facilities were recalled in June 2021 due to potential health risks. The recalled devices contained polyester-based polyurethane (PE-PUR) foam, which was used for sound abatement. According to the recall notices issued at that time, the PE-PUR sound abatement foam “may degrade into particles which may enter the device’s air pathway and be ingested or inhaled by the user,” and “the PE-PUR foam may off-gas certain chemicals.” The FDA classified the recalls as Class I, the most serious type of recall. Philips Respironics’ efforts to remediate the PE-PUR foam in those recalled devices are ongoing, and some of the remediated devices have themselves been the subject of additional recalls.
Defendants Philips Respironics, its parent company Philips Holding USA Inc., and subsidiary Respironics California (collectively Philips), along with Philips executives Thomas Fallon, Daniel Leonard, and Jeff DiLullo, as well as executives Roy Jakobs and Steven B. C de Baca from Philips’s Dutch parent company, all agreed to resolve the complaint through a consent decree of permanent injunction. Under the consent decree, entered today by U.S. District Judge Robert J. Colville, the defendants are barred (subject to certain limited exceptions, such as for “medically necessary” devices) from manufacturing and distributing devices at or from the three Pennsylvania facilities — or resuming such activities at the other facility in Carlsbad, California — unless and until Philips meets certain conditions. Those conditions include retaining an outside expert to inspect the defendants’ facilities, methods and controls to determine whether they conform to Good Manufacturing Practice regulations; completing activities described in an FDA-approved recall remediation plan and receiving written notification from FDA that the defendants appear to be in compliance with the FDCA and the decree.
“Medical device manufacturers have a responsibility to comply with requirements designed to ensure the safety and effectiveness of their products,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “Today’s action reflects our commitment to vigorously enforce federal law and prevent manufacturers from marketing adulterated and misbranded devices to vulnerable patients who need them.”
“Today’s consent decree requires Philips Respironics to meet a series of stringent thresholds before restarting production and establishes safeguards against future violations of the Food, Drug and Cosmetic Act,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This office, the FDA and our partner agencies are committed to holding manufacturers accountable when they violate the law and put the public at risk.”
“The finalization of this decree is a significant milestone,” said Director Jeff Shuren, M.D., J.D., of the FDA’s Center for Devices and Radiological Health. “Throughout this recall, we have provided patients with important health information by issuing numerous safety communications and have taken actions rarely used by the agency to help protect those impacted by this recall. Today’s action is a culmination of those efforts and includes novel provisions aimed at helping ensure that patients receive the relief they have long deserved. This also marks the first time a device company is providing a remediation payment option for a recalled device under a consent decree.”
The consent decree also requires the defendants to retain outside experts to inspect their other Sleep and Respiratory Care facilities to evaluate whether those facilities are operating in compliance with the FDCA, to correct any identified deficiencies, and to evaluate the testing that the defendants have performed and are performing on foam being used to replace the sound abatement foam in the recalled devices. The consent decree also allows FDA to subject other facilities owned by the corporate defendants to certain provisions of the injunction if a future inspection shows that those facilities are not operated in conformity with the FDCA and applicable regulations.
Trial Attorneys Natalie N. Sanders and Ryan E. Norman of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Adam B. Fischer for the Western District of Pennsylvania handled this matter, with the assistance of Senior Counsel Paige H. Taylor of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Pennsylvania, visit www.justice.gov/usao-wdpa.
The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability.
Consent Decree
Court Enjoins Philips Respironics from Manufacturing and Distributing Adulterated and Misbranded Sleep and Respiratory Devices at or from Three Pennsylvania FacilitiesRead the Press Release
A federal court today ordered Philips RS North America LLC (Philips Respironics) to stop manufacturing most sleep and respiratory devices at three Pennsylvania facilities, and to stop distributing such devices from those facilities, until the company takes specific measures designed to increase the safety of its devices and ensure compliance with the Federal Food, Drug, and Cosmetic Act (FDCA).
In a complaint filed April 4, in federal court in the Western District of Pennsylvania, the United States alleged that Philips Respironics, a subsidiary of Philips Holding USA Inc., violated the FDCA by manufacturing and distributing adulterated and misbranded medical devices. Specifically, the complaint alleged that Philips Respironics manufactured continuous positive airway pressure (CPAP) machines, bi-level positive airway pressure (BiPAP) machines, and mechanical ventilators at facilities in Murrysville and New Kensington, Pennsylvania, and remediated certain ventilators at a facility in Mt. Pleasant, Pennsylvania, under conditions and using practices that failed to comply with the FDCA and with Good Manufacturing Practice regulations designed to assure the safety and effectiveness of the devices. The complaint also alleged that Philips Respironics failed to submit to FDA written reports of manufacturer-initiated corrections or removals for its devices, and further failed to validate and approve the process the company used to perform remediation work on certain recalled ventilators according to established procedures. The complaint further alleged that these violations were similar to violations observed during previous inspections that resulted in two FDA Warning Letters to Philips Respironics (for its Murrysville facility), a Warning Letter to its subsidiary Respironics California LLC (for another facility in Carlsbad, California) and a civil lawsuit and consent decree with another subsidiary of Philips Holding USA Inc., Philips North America LLC.
According to the complaint, millions of CPAP machines, BiPAP machines, and mechanical ventilators manufactured at the Murrysville and New Kensington facilities were recalled in June 2021 due to potential health risks. The recalled devices contained polyester-based polyurethane (PE-PUR) foam, which was used for sound abatement. According to the recall notices issued at that time, the PE-PUR sound abatement foam “may degrade into particles which may enter the device’s air pathway and be ingested or inhaled by the user,” and “the PE-PUR foam may off-gas certain chemicals.” The FDA classified the recalls as Class I, the most serious type of recall. Philips Respironics’ efforts to remediate the PE-PUR foam in those recalled devices are ongoing, and some of the remediated devices have themselves been the subject of additional recalls.
Defendants Philips Respironics, its parent company Philips Holding USA Inc., and subsidiary Respironics California (collectively Philips), along with Philips executives Thomas Fallon, Daniel Leonard, and Jeff DiLullo, as well as executives Roy Jakobs and Steven B. C de Baca from Philips’s Dutch parent company, all agreed to resolve the complaint through a consent decree of permanent injunction. Under the consent decree, entered today by U.S. District Judge Robert J. Colville, the defendants are barred (subject to certain limited exceptions, such as for “medically necessary” devices) from manufacturing and distributing devices at or from the three Pennsylvania facilities — or resuming such activities at the other facility in Carlsbad, California — unless and until Philips meets certain conditions. Those conditions include retaining an outside expert to inspect the defendants’ facilities, methods and controls to determine whether they conform to Good Manufacturing Practice regulations; completing activities described in an FDA-approved recall remediation plan and receiving written notification from FDA that the defendants appear to be in compliance with the FDCA and the decree.
“Medical device manufacturers have a responsibility to comply with requirements designed to ensure the safety and effectiveness of their products,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “Today’s action reflects our commitment to vigorously enforce federal law and prevent manufacturers from marketing adulterated and misbranded devices to vulnerable patients who need them.”
“Today’s consent decree requires Philips Respironics to meet a series of stringent thresholds before restarting production and establishes safeguards against future violations of the Food, Drug and Cosmetic Act,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This office, the FDA and our partner agencies are committed to holding manufacturers accountable when they violate the law and put the public at risk.”
“The finalization of this decree is a significant milestone,” said Director Jeff Shuren, M.D., J.D., of the FDA’s Center for Devices and Radiological Health. “Throughout this recall, we have provided patients with important health information by issuing numerous safety communications and have taken actions rarely used by the agency to help protect those impacted by this recall. Today’s action is a culmination of those efforts and includes novel provisions aimed at helping ensure that patients receive the relief they have long deserved. This also marks the first time a device company is providing a remediation payment option for a recalled device under a consent decree.”
The consent decree also requires the defendants to retain outside experts to inspect their other Sleep and Respiratory Care facilities to evaluate whether those facilities are operating in compliance with the FDCA, to correct any identified deficiencies, and to evaluate the testing that the defendants have performed and are performing on foam being used to replace the sound abatement foam in the recalled devices. The consent decree also allows FDA to subject other facilities owned by the corporate defendants to certain provisions of the injunction if a future inspection shows that those facilities are not operated in conformity with the FDCA and applicable regulations.
Trial Attorneys Natalie N. Sanders and Ryan E. Norman of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Adam B. Fischer for the Western District of Pennsylvania handled this matter, with the assistance of Senior Counsel Paige H. Taylor of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Pennsylvania, visit www.justice.gov/usao-wdpa.
The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability.
Consent DecreeCoordinator of Alien Smuggling Organization Sentenced to 37 Months in PrisonRead the Press Release
TUCSON, Ariz. – Juan Manuel Soto-Guzman, 41, of El Mirage, was sentenced last week by United States District Judge Rosemary Márquez to 37 months in prison. Soto-Guzman pleaded guilty to Conspiracy to Transport and Harbor Illegal Aliens for Profit on January 23, 2024.
Soto-Guzman was a United States-based human smuggling coordinator. For approximately 13 months, he worked with his brother Adulfo Soto-Guzman to coordinate the illegal entry and transportation of hundreds of undocumented non-citizens into the United States. During that time, Juan Soto-Guzman’s actions resulted in a large amount of illicit revenue for the smuggling organization. Adulfo Soto-Guzman was sentenced on January 31, 2024, to 27 months in prison for his role in the conspiracy. In addition to their sentences, the brothers agreed to forfeit a Rolex watch, a Movado watch, currency, and gold medallions.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations – Douglas Office conducted the investigation in this case, with significant assistance from the Customs and Border Protection’s United States Border Patrol Sonoita Sector, and Immigration and Customs Enforcement ERO Phoenix. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-23-00386-TUC-RM
RELEASE NUMBER: 2024-048_Soto-Guzman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Columbus Men Sentenced for Helping Supply Stolen Guns to Rival GangsRead the Press Release
COLUMBUS, Ga. – Two Columbus residents who admitted to helping supply stolen guns to warring criminal street gangs in the community were sentenced to federal prison today.
Daquan Braxton, 20, of Columbus, was sentenced to serve 120 months in prison to be followed by three years of supervised release after he previously pleaded guilty to one count of theft of firearms from a federal firearms licensee on Jan. 23.
Tarcus Sanders, aka “TJ,” 22, of Columbus, was sentenced to serve 33 months in prison to be followed by three years of supervised release after he previously pleaded guilty to one count of theft of firearms from a federal firearms licensee on Jan. 24.
U.S. District Judge Clay Land handed down the sentences on April 9. There is no parole in the federal system.
“Our office prioritizes the prosecutions of gun traffickers supplying stolen firearms to criminal organizations, which pose a serious threat to a community’s safety,” said U.S. Attorney Peter D. Leary. “Firearms traffickers and straw purchasers—individuals who purchase guns for those who are prohibited from possessing them—will be held accountable at the federal level for illegally providing guns to dangerous people.”
“The unlawful acquisition and selling of firearms are serious crimes that feed and intensify the violence that plagues so many communities," said Assistant Special Agent in Charge Beau Kolodka. "This investigation illustrates the collective resolve of ATF and our law enforcement partners working together to make a safer community.”
The following co-defendants entered guilty pleas:
Joshua Holland aka “Lou” aka “Luke,” 24, of Columbus, pleaded guilty to two counts of theft of firearms from a federal firearms licensee on Jan. 24, and faces a maximum sentence of ten years in prison and a $250,000 fine on each count;
Robert Holman, 34, of Columbus, pleaded guilty to one count of theft of firearms from a federal firearms licensee on Feb. 13, and faces a maximum sentence of ten years in prison and a $250,000 fine;
James David Lowery, 28, of Columbus, pleaded guilty to one count of conspiracy to commit theft of firearms from a federal firearms licensee on Feb. 27, and faces a maximum of five years in prison and a $250,000 fine; and
Jerry Starks aka “John Hill,” 31, of Columbus, pleaded guilty to one count of conspiracy to commit theft of firearms from a federal firearms licensee on Feb. 24, and faces a maximum of five years in prison and a $250,000 fine.
Sentencing dates will be determined by the Court. There is no parole in the federal system.
According to court documents, the co-conspirators admitted to stealing firearms from area businesses in 2022 to sell to warring criminal street gangs in Columbus, including the Zohannon and the Marlo organizations. Sanders admitted to taking part in the burglary of the Northside Money Mizer Pawn Shop on Manchester Expressway in Columbus on Aug. 9, 2022. At approximately 1:35 a.m., co-defendant Holland crashed a stolen car through the front door of the pawn shop. Holland entered the business and stole five firearms, while Sanders and other co-conspirators assisted by carrying the stolen guns or acting as lookouts. Five firearms were stolen: two pistols and three rifles.
On Sept. 7, 2022, around 1:46 a.m., Holland and his co-conspirators—including Braxton—forced entry into A Better Pawn on 2nd Ave in Columbus and stole 19 firearms. Prior to the burglary, Sanders admitted that he and some of his co-conspirators scoped out the store and checked its locks to prepare for and carry out the burglary. The co-conspirators stole 11 rifles, seven shotguns and one pistol from the store.
On Sept. 16, 2022, the Money Mizer Pawn shop in Phenix City, Alabama, was burglarized. Six burglars, including Braxton, forced entry into the store and stole eight firearms. The Phenix City Police Department (PCPD) responded to an alarm call at the store and encountered a white Ford- F-150 truck backed up to the front door. The truck sped off and the chase ended when the truck got stuck in a ditch. Braxton and Holland were arrested, and the firearms were recovered.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
This case was investigated by the Columbus Police Department, the Phenix City Police Department and ATF.
Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government.
Columbus Man Sentenced to Prison for Assaulting a Federal OfficerRead the Press Release
COLUMBUS, Ga. – A Columbus resident with prior felony convictions was sentenced to serve more than 11 years in prison today for injuring a federal officer as he attempted to flee arrest during an investigation into armed drug trafficking in the community.
Christopher Upshaw aka “Trouble,” 24, was sentenced to serve 136 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land on April 8. Upshaw pleaded guilty to one count of forcible assault on a federal officer with a deadly weapon on Jan. 23. Upshaw is not eligible for parole.
“Chris Upshaw acted with utter disregard for the lives and safety of others when he injured law enforcement and endangered community members during his frantic flight,” said U.S. Attorney Peter D. Leary. “Ultimately, Upshaw couldn’t evade justice, thanks to the tireless efforts of the FBI and others to hold him accountable.”
“This case shows the risk law enforcement officers face on a daily basis” said FBI Atlanta’s Columbus Resident Agency Supervisory Senior Resident Agent Rich Bilson. “Upshaw violently assaulted both our Task Force Officer and a Special Agent. The FBI stands ready to investigate any crimes against officers. More than anything, we are thankful that the injuries were not more severe, and that this incident did not result in a loss of life.”
According to court documents and the plea agreement, authorities identified a suspicious package from Northern California that was addressed to Upshaw’s residence on Buxton Drive in Columbus; it was set for delivery on Aug. 4, 2023. Upshaw was wanted on outstanding warrants at the time. FBI, DEA, Muscogee County Sheriff’s Office and Coweta County Sheriff’s Office members conducted physical surveillance at Buxton Drive on Aug. 4. The suspicious parcel was delivered at 3:30 p.m. and left on the front porch. The defendant drove up in his Dodge Charger approximately 30 minutes later to retrieve the package, which he put inside his vehicle and then entered the driver’s side.
At this time, multiple unmarked law enforcement vehicles with at least one flashing its emergency lights approached Upshaw. Law enforcement officers and federal agents—all of whom were wearing agency issued body armor equipped with law enforcement insignia—exited their vehicles and advanced towards Upshaw’s car in an attempt to arrest him. Upshaw began forcibly operating his vehicle in an effort to evade arrest. FBI Special Agent (SA) M.M. attempted to open the passenger side door. Rather than complying with law enforcement’s demands to stop, Upshaw accelerated instead. Simultaneously, as a result of the vehicle’s acceleration, FBI SA M.M. was unable to release the passenger door handle and was forcibly pulled into a nearby stationary vehicle. Upshaw also struck and damaged three occupied law enforcement vehicles. Other members of law enforcement were injured on scene.
Upshaw sped away at a high rate of speed through the residential area and escaped but was captured several days later. During his flight from law enforcement, he discarded the suspicious package which was recovered by agents and contained approximately 17 pounds of marijuana divided into 14 bags. Upshaw has prior felony convictions for drug possession in Muscogee County, Georgia, Superior Court. Upshaw is charged with attempted murder in Phenix City, Alabama, and is wanted for resisting arrest in Miami, Florida. These charges in Alabama and Florida are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by FBI, DEA, the U.S. Postal Inspection Service, the Muscogee County Sheriff’s Office and the Coweta County Sheriff’s Office.
Assistant U.S. Attorney Christopher Williams prosecuted the case.
Cincinnati woman sentenced to 7 years in prison for crimes related to COVID-19 relief fraudRead the Press Release
CINCINNATI – A Cincinnati woman convicted at trial last summer of fraud crimes was sentenced in U.S. District Court today to 84 months in prison.
Kelli Prather, 52, fraudulently requested more than $1.2 million in pandemic relief loans. She was convicted on all 14 counts following a trial in July 2023 before U.S. District Judge Matthew W. McFarland.
According to testimony and evidence presented during the trial, Prather applied for six Paycheck Protection Program (PPP) loans as part of the CARES Act COVID-19 pandemic relief. She claimed to own six businesses – Enhanced Healthcare Solutions, Life Skills Enhancement, Prather Property Management, Reliable Ambulette Services, Rich Glo Management Services and Tots R Us.
Separately, Prather also applied for eight Economic Injury Disaster Loans (EIDL). In three of the EIDL applications she filed in November 2020, she represented that the businesses were majority owned by her disabled nephew.
Prather sought more than $1.2 million in fraud relief and fraudulently received approximately $19,700. As part of her sentence, she will pay $19,682 in restitution.
The jury convicted her of bank fraud, making false statements in connection to credit or loan applications, wire fraud and aggravated identity theft.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, the Federal Bureau of Investigation (FBI), the Social Security Administration Office of the Inspector General, and other members of the Financial Crimes Working Group Pandemic Fraud Committee announced the sentence imposed today by Judge McFarland. Assistant United States Attorneys Anthony Springer and Ebunoluwa A. Taiwo are representing the United States in this case.
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Child Pornographer Sentenced to 50 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Timothy Baker, age 42, of Wyoming, Michigan, was sentenced to 50 years in federal prison. Baker is a previously convicted sex offender who was convicted by a federal jury of multiple child exploitation offenses.
“The crime of child exploitation is so depraved in part because its victims are so vulnerable,” said U.S. Attorney Mark Totten. “My office, along with our law enforcement partners, commits to protect our kids and bring these offenders to justice.”
Authorities began investigating Baker in 2023, after a minor reported to local authorities that Baker had sexually assaulted her. The report triggered an investigation by the Ottawa County Sheriff’s Office, which uncovered evidence of the assault as well as evidence that Baker had been conspiring with another adult to produce child pornography of a second victim. FBI agents followed these leads and identified a third child victim whom Baker had sexually assaulted.
Baker was arrested and ultimately charged with three federal offenses: conspiracy to sexually exploit a child, coercion and enticement of a child, and the separate crime of committing both offenses while being required to register as a sex offender. In December of 2023, a jury convicted Baker of all three offenses after a two-day trial.
“The exploitation and coercion revealed in this case was extremely disheartening,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “It is our mission to protect our youth by aggressively investigating individuals like these defendants, and we will continue this important work every day.”
Baker was investigated and prosecuted as a part of Project Safe Child, the Department of Justice’s unified and comprehensive strategy to combat child exploitation. To learn more about the Department’s interagency effort, visit the Project Safe Childhood website at https://www.justice.gov/psc/about-project-safe-childhood.
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Caribou Man Sentenced to 13+ Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Caribou man was sentenced today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
U.S. District Judge Lance E. Walker sentenced James King, 54, to 165 months in prison followed by five years of supervised release. King pleaded guilty on September 25, 2023.
According to court records, between January 2018 and December 2021, King and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. King, an Aroostook County distributor, regularly obtained quantities of drugs from his source in the Bangor area. Others then would distribute the drugs to dealers who, in turn, would distribute the drugs to customers. King knowingly and intentionally joined and participated in the conspiracy.
King is the tenth participant involved in the northern Maine conspiracy to be sentenced. Seven of the remaining 11 defendants have pleaded guilty:
Sentenced:
- Andrew Adams (32, Aroostook County) – 10 years
- Wayne Smith (33, Bangor) – 85 months
- Danielle McBreairty (33, Glenburn) – 20 years
- Blaine Footman (37, Bangor) – 5 years
- Nicole Footman (41, Holden) – 3 years
- Dwight Gary, Jr. (53, Medway) – Time served
- Matthew Catalano (37, Penobscot County) – 165 months
- Thomas Hammond (25, Charleston) – 84 months
- Christopher Coty (43, Bangor) – 4 years
- James King (54, Caribou) – 165 months
Pleaded Guilty:
- Sarah McBreairty (35, Dixmont)
- John Miller (23, Caribou)
- Shelby Loring (28, Bangor)
- Joshua Young (48, Presque Isle)
- Joshua Jerrell (30, Orrington)
- Carol Gordon (53, Bangor)
- Jason Cunrod (42, Caribou)
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: 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.
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COVID-19 Fraud Enforcement Task Force Releases 2024 ReportRead the Press Release
The Justice Department’s COVID-19 Fraud Enforcement Task Force (CFETF) today released its 2024 report detailing the efforts of the task force and its member agencies in response to widespread fraud involving many COVID-19 relief programs targeted by fraudsters and other criminals who sought to exploit the government’s relief efforts for their personal gain.
“Since I established the COVID-19 Fraud Enforcement Task Force three years ago, we have charged more than 3,500 defendants, seized or forfeited over $1.4 billion in stolen COVID-19 relief funds, and filed more than 400 civil lawsuits resulting in court judgements and settlements,” said Attorney General Merrick B. Garland. “Our work is not over. We will continue our efforts to investigate and prosecute pandemic relief fraud and to recover the assets that have been stolen from American taxpayers.”
To date, the efforts of the task force’s member agencies has led to criminal charges against more than 3,500 defendants for losses of over $2 billion, civil enforcement actions resulting in more than 400 civil settlements and judgments of over $100 million, and over $1.4 billion seized or forfeited.
“Working with law enforcement and the Inspector General community, the Department of Justice has deployed a data-driven prosecution strategy to combat COVID-19 fraud—to the tune of over 3,500 defendants charged and more than $1.4 billion seized or forfeited,” said Deputy Attorney General Lisa Monaco. “But the time is now to ensure law enforcement has what it needs to finish the job. The statute of limitations must be extended and the necessary funding and data analytic tools secured for our prosecutors to recover hundreds of millions of dollars more in fraud proceeds, bring remaining offenders to justice, and disrupt criminal networks that continue to victimize our citizens.”
“While I am incredibly proud of the work of the CFETF and the significant law enforcement accomplishments, much work remains in the fight against COVID-19 fraud,” said Director Michael C. Galdo of the COVID-19 Fraud Enforcement Task Force. “The CFETF and its member agencies have ongoing investigations into hundreds of identity thieves, transnational fraud and money laundering networks, large-dollar individual fraudsters, and the businesses that facilitated these crimes. CFETF member agencies have improved their data analytics capabilities and are using these new skills to investigate fraud more efficiently and effectively.”
In addition to the efforts noted above, the CFETF has established five strike forces to focus on the most complex and harmful pandemic fraud—often committed by overseas, organized, or violent actors. Those strike forces, located in the U.S. Attorneys’ Offices across the country including the Districts of Maryland, New Jersey, Colorado, the Southern District of Florida, and a joint task force co-located in the Eastern and Central Districts of California, are responsible for indicting 250 defendants to date, including gang members, inveterate fraudsters, and overseas rings committing a myriad of cyber-enabled fraud against our citizens and government programs.
CFETF members also established the National Unemployment Insurance Fraud Task Force, a first-of-its-kind task force that developed a data sharing and lead development process within OCDETF’s International Organized Crime Intelligence Operation Center (IOC-2), using data from pandemic relief programs. The NUIFTF has used that process to disseminate over 100 leads and intelligence associated with over $3 billion in suspected pandemic fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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.
The CFETF members include Justice Department components, including the Criminal Division, Civil Division, U.S. Attorneys, Executive Office for U.S. Attorneys, FBI, Organized Crime Drug Enforcement Task Forces, Office of the Inspector General, National Unemployment Insurance Fraud Task Force, and INTERPOL Washington; and key interagency partners, including Homeland Security Investigations, IRS Criminal Investigations, U.S. Secret Service, U.S. Postal Inspection Service, and multiple representatives of the Office of Inspector General community, including Department of Labor, Department of Treasury, Tax Administration, Department of Homeland Security, Small Business Administration, Department of Health and Human Services, Department of Veterans Affairs, Social Security Administration, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Federal Reserve Board, Special Inspector General for Pandemic Relief, and the Pandemic Response Accountability Committee.
CFETF 2024 Report
Fact Sheet
Boston Man Pleads Guilty to Sex Trafficking a MinorRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to trafficking a minor for sex and persuading and coercing multiple women to travel across state lines to engage in prostitution.
Jimall Dawn Brown, 35, pleaded guilty to one count of sex trafficking of a minor; one count of transporting an individual in interstate commerce with the intent that they engage in prostitution; and two counts of persuading and coercing an individual to travel in interstate commerce to engage in prostitution. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 9, 2024. Brown was indicted by a federal grand jury in November 2022.
“Jimall Brown is one of far too many people this office has prosecuted for human trafficking. The pattern is remarkably predictable and it is happening far too often right here in our backyard. Brown promised his victims a better life, but in reality, he exploited them for his financial gain, selling them for sex repeatedly,” said Acting United States Attorney Joshua S. Levy. “No child or person must ever be treated this in this dehumanizing manner. This Office will not cease in our efforts to prosecute individuals who engage in human trafficking.”
“Jimall Dawn Brown lured this child into his clutches, with the promise of a better life, specifically to abuse and exploit her,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It will be a gratifying day when his sentence is handed down and the cell door shuts behind him so he can’t victimize anyone else. FBI Boston’s Child Exploitation – Human Trafficking Task Force will never stop working to find and help trafficked victims, to prevent them from further abuse, and keep their traffickers from hurting anyone else.”
“The scars borne by sex trafficking victims are certainly emotional, often physical, and always long-lasting. Targeting traffickers and bringing them to justice is a vitally important mission for law enforcement and a major benefit to society itself,” said Suffolk County District Attorney Kevin Hayden.
In 2022, Brown trafficked a 17-year-old, identified as Victim 1, to engage in commercial sex acts. He first met the victim, who was living outside Massachusetts, on social media and convinced her to fly to Boston, with promises of a “better lifestyle.” Brown posted advertisements of Victim 1 online and arranged “dates” for Victim 1 to have sex in exchange for money. Brown set the pricing for the commercial sex acts she engaged in, for which he collected all of the money. In April 2022, Brown transported Victim 1 to Nevada, again arranging for her to engage in commercial sex and keeping all the money.
In March 2019, Brown persuaded and coerced a another woman, identified as Victim 2, to travel from Connecticut to Massachusetts to engage in prostitution. He met her in Connecticut and told her that she had potential and that he could provide a better, luxurious life for her if she would come to Boston, where he lived. Victim 2 came to Massachusetts and Brown posted online advertisements containing photos of Victim 2 on commercial sex websites. Victim 2 engaged in commercial sex and was required to give all of the money she made to Brown.
In May 2016, Brown persuaded and coerced a different woman, identified as Victim 3, to travel from Pennsylvania to Massachusetts to engage in prostitution. He contacted Victim 3 on social media, told her that she was beautiful, that he had a modeling agency, and that he wanted to work with her. Brown said he would pay for her plane ticket to fly to Boston and provide everything for her once she arrived. Victim 3 traveled by plane from Pennsylvania to Massachusetts. After she arrived, Brown took photos of her, purportedly for modeling, but instead he posted them on websites advertising commercial sex. Brown then coerced and forced Victim 3 to engage in commercial sex in Massachusetts and required her to give him all the money.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
The charge of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of $250,000. The charge of transporting a person for purposes of prostitution provides for a maximum of 10 years in prison, three years of supervised release and a fine of $250,000. The charge of persuading and coercing a person to travel across state lines to engage in prostitution provides for a maximum of 20 years in prison, three years of supervised release and a fine of $250,000. Each count also provides for mandatory restitution and forfeiture. 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 U.S. Attorney Levy; FBI SAC Cohen; DA Hayden; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Arlington and Randolph Police Departments. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit is prosecuting the case.
Bangor Man Pleads Guilty to Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Aaron Rodgers, 43, and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. Rodgers knowingly and intentionally joined and participated in the conspiracy.
Twenty-one defendants have been charged in this and related cases for their part in the northern Maine drug trafficking conspiracy. To date, ten of the defendants have been sentenced and eight have pleaded guilty:
Sentenced:
- Andrew Adams (32, Aroostook County) – 10 years
- Wayne Smith (33, Bangor) – 85 months
- Danielle McBreairty (33, Glenburn) – 20 years
- Blaine Footman (37, Bangor) – 5 years
- Nicole Footman (41, Holden) – 3 years
- Dwight Gary, Jr. (53, Medway) – Time served
- Matthew Catalano (37, Penobscot County) – 165 months
- Thomas Hammond (25, Charleston) – 84 months
- Christopher Coty (43, Bangor) – 4 years
- James King (54, Caribou) – 165 months
Pleaded Guilty:
- Sarah McBreairty (35, Dixmont)
- John Miller (23, Caribou)
- Shelby Loring (28, Bangor)
- Joshua Young (48, Presque Isle)
- Joshua Jerrell (30, Orrington)
- Carol Gordon (53, Bangor)
- Jason Cunrod (42, Caribou)
- Aaron Rodgers (43, Bangor)
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: 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.
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Monday 8 April 2024
Woman Convicted by Federal Jury of Burning Down Local San Diego BusinessRead the Press Release
NEWS RELEASE SUMMARY – April 8, 2024
SAN DIEGO – A federal jury has convicted Carey Alice Hernandez, bookkeeper for Off Road Warehouse headquartered in Kearny Mesa, of intentionally setting fire to the business to cover up the disappearance of more than $700,000 while she was in charge of company finances.
After a four-day trial, jurors found Hernandez guilty of malicious destruction of a building by means of fire, witness tampering and making false statements.
In late 2018, the owner of Off Road Warehouse, also known as ORW, which sold and installed automotive parts and gear for off-roading, decided to sell the business located at 7915 Balboa Avenue. The purchaser began an audit of ORW. The audit revealed that during Hernandez’s tenure as bookkeeper and controller in charge of the company books and records, $744,621 went missing between January 2015 and March 2019.
The jury found that in the early morning hours of March 28, 2019, Hernandez started the fire at Off Road Warehouse, causing the building to burn to the ground.
According to evidence presented at trial, shortly before the fire, local surveillance video showed an SUV with dark wheel rims driving near the defendant’s house in Point Loma. Further video surveillance showed the defendant driving the same vehicle to the scene of the arson before she started the inferno. Surveillance also showed her driving back home after the fire, in the same dark-rimmed SUV.
The day after the fire, Hernandez sent misleading texts to ORW employees in an attempt to convince them her wheel rims were light, not dark. Specifically, after learning that law enforcement was searching for a dark- rimmed SUV, she tried to convince employees who had changed her vehicle’s distinctive rims before the fire that her vehicle had light rims during the time of the fire and thus, the SUV spotted on surveillance cameras could not be hers.
During a subsequent interview with special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Hernandez lied about the distinctive rims on her vehicle. However, the lies to law enforcement and attempts to tamper with witnesses were contradicted by the video surveillance from the day after the fire, showing the defendant driving around San Diego in her dark-rimmed, not light-rimmed, SUV. These acts resulted in her convictions for witness tampering and false statements.
ATF’s National Response Team (NRT) investigated this case in conjunction with San Diego’s Metro Arson Strike Team (MAST). The NRT is ATF’s mobile, rapid response team which investigates the cause and origin of large fires, explosions and bombings at the request of local public safety agencies.
“While it is extremely fortunate that no one was physically hurt in this blaze, it was a devastating loss for the company,” said U.S. Attorney Tara McGrath. “This defendant used arson, tampering with witnesses, and deceit to put the community in danger, but the jury held her accountable.”
“ATF’s National Response Team responded to this multimillion-dollar loss within 24 hours determining the fire was deliberately set,” said ATF Los Angeles Field Division Special Agent in Charge Chris Bombardiere. “Arson crimes are not victimless fires. This criminal act devastated a business and the livelihood of several individuals and families. ATF stands willing and ready to partner with federal, state, and local public safety officials to keep our communities free from dangerous arsonists.”
Hernandez is scheduled to be sentenced July 12, 2024, at 9:30 a.m. before U.S. District Judge Jinsook Ohta.
This case is being prosecuted by Assistant U.S. Attorneys Matthew Brehm and Carl Brooker.
DEFENDANT Case Number 22cr145-JO
Carey Alice Hernandez Age: 46 Rathdrum, Idaho
SUMMARY OF CHARGES
Malicious Destruction of Building by Means of Fire – Title 18, U.S.C., Section 844(i)
Maximum penalty: No less than five years in prison and no more than 20 years and $250,000 fine
Witness Tampering – Title 18, U.S.C., Section 1512(b)(3)
Maximum penalty: Twenty years in prison and $250,000 fine
False Statements – Title 18, U.S.C., Section 1001(a)(2)
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Waveland Man Sentenced to over 7 Years in Prison for Possession with Intent to Distribute 167 Grams of MethamphetamineRead the Press Release
Gulfport, Miss. – A Waveland man was sentenced to 87 months in prison for possession with intent to distribute 167 grams of pure methamphetamine.
Lance Ali Vaughn, 41, was sentenced in U.S. District Court in Gulfport.
According to court documents, on July 12, 2023, law enforcement officials received information that Vaughn was selling methamphetamine in Hancock County. Agents set up a controlled purchase and when Vaughn arrived at the predetermined location for the drug buy, agents conducted a K9 sniff of his vehicle. The K9 alerted to drugs in the vehicle and a subsequent search yielded 167 grams of 100% pure methamphetamine.
Vaughn pled guilty on December 6, 2023, to one count of Possession with Intent to Distribute a Controlled Substance.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office.
Assistant U.S. Attorney Erica Rose prosecuted the case.
Washington County Woman Who Embezzled over $230,000 from HOA, Sentenced to 12 Months of Home DetentionRead the Press Release
ST. GEORGE, Utah – Sharon Lee Ann Gordon, 66, of Hurricane, Utah, was sentenced today to 12 months and one day of home detention, and three years’ probation as a result of a guilty plea for stealing over $230,000 from an HOA during her time as the HOA Treasurer. In addition to her sentence, United States District Court Chief Judge Robert J. Shelby ordered Gordon to pay the remaining $63,448.32 in restitution to the HOA and $20,490 in restitution to the IRS for tax loss for unreported income.
According to court documents and statements made at the change of plea hearing, Gordon embezzled approximately over $232,000 from four Lava Bluff HOA bank accounts between 2016 and March 2022. In execution of the scheme, Gordon diverted the funds electronically by transferring them directly to her personal account, writing checks to herself and her boyfriend and forging other board members’ signatures, depositing checks representing HOA member fees directly into her personal accounts, writing checks to casinos from HOA accounts, and withdrawing cash from HOA accounts. Additionally, Gordon falsely reported to the Internal Revenue Service her total income from 2017 through 2021.
“Gordon abused her HOA position of power to steal thousands of dollars for her own personal benefit,” said U.S. Attorney Trina A. Higgins for the District of Utah. “Gordon’s greed further emboldened her to hide money from the IRS. By teaming up with our federal partners we will continue to investigate and prosecute these cases.”
“This case not only saw that those members of the Lava Bluff HOA, were directly harmed by Ms. Gordon’s embezzlement, but as is always the case with tax fraud, the American taxpayers as a whole were victimized,” said IRS-Criminal Investigation Special Agent in Charge Carissa Messick. “Gordon believed that she could shirk her responsibility to her community as well as to the American tax system; however, IRS-Criminal Investigation takes its responsibility seriously and will investigate and assist in the prosecution of any violators of these laws.”
“Money that was designated for the community’s management went to line Gordon’s own pockets,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “This case should serve as an example that fraud never pays. The FBI and our partners are committed to identifying and investigating those who abuse their trusted positions.”
The case was investigated jointly by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI Salt Lake City Field Office, St. George Resident Agency.
Assistant United States Attorney Stephen Dent of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
United States Files Lawsuit Alleging Medicaid Fraud by Philadelphia Mental Health Clinic and Its OwnerRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced today that the United States filed a civil complaint against Nueva Vida Multicultural/Multilingual Behavioral Health, Inc. (“Nueva Vida”) and its owner and principal, Dr. Ghodrat Pirooz Sholevar, alleging that they violated the False Claims Act and state common law by billing Medicaid for psychiatric medication management appointments (known as “med checks”) and other services that did not occur as billed.
In its complaint, the United States alleges that Nueva Vida provided psychiatry and therapy services to economically disadvantaged adults and children at three locations in Philadelphia under the Medicaid program. Among the services that Nueva Vida provided were med checks, appointments during which a psychiatrist is supposed to assess the efficacy and effects of a prescribed drug, including controlled substances, on patients within the doctor’s care. The United States alleges that between at least 2009 and 2017, Nueva Vida and Sholevar fraudulently billed Medicaid for thousands of med checks as though Sholevar had met with each patient for at least 15 minutes — when in reality, Sholevar spent well below the required time meeting with patients.
“This civil complaint reflects our focus on pursuing individuals who defraud Medicaid, especially when doctors in the Medicaid program should be providing complete and comprehensive mental health services to vulnerable populations,” said U.S. Attorney Romero.
“Civil enforcement is an important component in safeguarding the integrity of the Medicaid and Medicare Programs,” said Maureen Dixon, Special Agent in Charge of the Philadelphia Regional Office for the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s civil complaint shows our commitment to ensuring Medicaid program dollars are only paid for services that were properly provided to patients.”
Among other things, the United States alleges that the defendants repeatedly billed Medicaid for days during which Sholevar allegedly performed more than 84 full-length med checks on the same day, which would amount to at least 21 hours of appointments. According to the United States, the defendants also repeatedly billed Medicaid for services that were never provided—because the relevant patients were receiving in-patient treatment at different hospitals at the alleged time of service. The United States also alleges that Nueva Vida failed to adhere to corporate formalities and was merely an alter ego for Sholevar. As a result, Sholevar personally pocketed millions of dollars in compensation through his control over Nueva Vida and defendants’ fraudulent billing, with an annual income as much as double the median compensation for child psychiatrists in Philadelphia. The United States’ civil lawsuit seeks damages for the false Medicaid claims submitted by defendants as well as the imposition of civil penalties.
The civil complaint details years of audits of Nueva Vida by Community Behavioral Health (CBH), the managed care organization that contracts with healthcare providers who provide mental health services for Medicaid recipients in Philadelphia. Over the years, as outlined in the complaint, CBH found repeated errors and significant problems in these audits. In 2017, Nueva Vida was terminated from the Medicaid program.
The matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General. The matter is handled by Assistant U.S. Attorneys Erin E. Lindgren and Gregory B. in den Berken of the Civil Division and healthcare fraud auditor George Niedzwicki.
The claims asserted against the defendants are allegations only — there has not yet been any determination of liability.
U.S. Attorney Jesse Laslovich announces settlement with University of Montana over access to Adams Center’s arena for persons with disabilitiesRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich today announced a settlement agreement between the United States and the University of Montana over access to the Adams Center’s Dahlberg Arena for persons with disabilities. The settlement agreement will result in more wheelchair spaces and improve wheelchair seating for events at the arena, which hosts athletic events, concerts, graduation ceremonies and various other activities.
The U.S. Attorney’s Office investigated the Adams Center after it received a complaint alleging the complainant was unable to use an accessible seating area during a graduation ceremony in June 2019. Title II of the Americans with Disabilities Act (ADA) prohibits discrimination in “the services, programs, or activities of a public entity” based on disability.
The parties voluntarily agreed to the terms of the settlement agreement, under which the University of Montana will disperse additional courtside ADA-compliant accessible seating when the Dahlberg Arena is configured for basketball, beginning with the 2024/25 season. The university will also continue to provide ADA-compliant accessible seating when the Dahlberg Arena is configured for other events, including concerts and graduations. The University of Montana cooperated with the government throughout the investigation.
“This agreement brings the seating plans for the Adams Center into compliance with the ADA by addressing issues with wheelchair spaces and seating. I appreciate the University of Montana’s cooperation with our investigation and its commitment to upholding the rights of persons with disabilities to ensure they can participate in a concert or graduation or cheer on the Grizzlies in Dahlberg Arena,” U.S. Attorney Laslovich said.
“The Adams Center welcomes tens-of-thousands of visitors annually for some of Montana’s most celebrated events. These changes are in line with UM’s efforts to be a campus that is accessible and open to all. We thank U.S. Attorney Laslovich and his staff for their hard work and partnership on this agreement,” said Dave Kuntz, UM spokesperson.
Assistant U.S. Attorney Paul Vestal handled the case in coordination with the Disability Rights Section of the Justice Department’s Civil Rights Division.
For more information on the ADA, please call the department’s toll-free Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint. For complaints of civil rights violations occurring in the District of Montana, please visit justice.gov/usao-mt/civil-rights.
See settlement agreement here: https://www.justice.gov/usao-mt/media/1347036/dl?inline
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Two Charged in Connection with Scheme to Operate Industrial-Scale Illegal Narcotics Pill Pressing Operations Throughout New York CityRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Darren B. McCormack, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced today the filing of a Complaint in Manhattan federal court charging JUAN MOISES PEREZ MENDEZ, a/k/a “Caballero,” and ODALIS EUSEBIO PERALTA BAUTISTA, a/k/a “Luis Collazo Santos,” with conspiracy to distribute narcotics and distribution of narcotics. PEREZ MENDEZ and PERALTA BAUTISTA were arrested on Saturday evening, April 6, 2024, in the Bronx. They were presented this afternoon before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Damian Williams said: “Over the past year, this Office has worked with laser focus to disrupt industrial-scale pill mills that press powdered narcotics into pills. In the process, we have removed millions of deadly fentanyl pills, meant to mimic legitimate prescription drugs, from the street. This past weekend, we acted again, shutting down an alleged pill mill in the Bronx and seizing large amounts of fentanyl and methamphetamine. We also arrested the two individuals who allegedly operated that pill mill. As alleged, one of those individuals, Juan Moises Perez Mendez, is a prolific narcotics trafficker, connected to at least two other major pill presses this Office has disrupted in the last year. I am deeply grateful for the efforts of our law enforcement partners and the career prosecutors of this Office as we work to save lives by keeping fentanyl off the streets of our community.”
HSI Acting Special Agent in Charge Darren B. McCormack said: “These arrests are the result of the exceptional work our El Dorado Task Force does to remove the threat of lethal amounts of fentanyl-laced counterfeit prescription pills that are wreaking havoc in our communities. HSI New York, along with our law enforcement partners, remain determined to shut down these underground poison mills and dismantle the flow of deadly substances into our communities. The criminals who operate these illegitimate manufacturing sites will face justice for their production and distribution of illicit synthetic opioids which are responsible for perpetuating the public safety epidemic across the country.”
DEA Special Agent in Charge Frank A. Tarentino III said: “Over the weekend, the DEA New York and our law enforcement partners conducted another successful operation resulting in two arrests and shutting down another illegal pill mill located near a school in the Bronx. Fake pills, laced with fentanyl and methamphetamine, like the ones seized this weekend, come in every color, shape, and form, and are disguised to mirror the appearance of prescription pills, making them hard to detect by sight and extremely deadly. This operation emphasizes our commitment to protecting communities from these fake pills and those responsible for producing them. I commend our special agents and law enforcement partners on this successful operation.”
As alleged in the Complaint filed today in Manhattan federal court:[1]
Law enforcement has been investigating a network of drug traffickers operating industrial-scale illegal narcotics pill pressing operations in multiple locations throughout New York City. As part of those operations, the traffickers have converted spaces in residential buildings to press large quantities of powder narcotics, including fentanyl and methamphetamine, into pill form for wholesale distribution. At these locations, drug traffickers have manufactured millions of pills for further distribution, sometimes manufacturing hundreds of thousands of pills in a single session.
In or about May 2023, law enforcement searched the basement of a particular building in Washington Heights (the “Washington Heights Building”), where they found large quantities of narcotics, as well as the materials and equipment necessary to press narcotics into pill form, including commercial-grade pill presses. In connection with that search, law enforcement officers arrested Juan Efren Paulino.
PEREZ MENDEZ appears to have entered the basement of the Washington Heights Building in the days leading up to the search and communicated with Paulino regarding narcotics.
A photograph of the narcotics recovered from the Washington Heights Building is below:
In or about October 2023, law enforcement officers searched the basement of a building located on Beaumont Avenue in the Bronx (the “Beaumont Building”) and arrested four individuals. In the basement of the Beaumont Building, law enforcement officers found hundreds of thousands of pills and over 20 kilograms of narcotics, along with three industrial pill press machines, one disassembled pill press, a kilogram press, and narcotics mixing and repackaging materials including blenders, dyes, jars of calcium citrate (frequently used as a narcotics cutting agent), and industrial-grade gas masks (used for protection when handling narcotic powders intended for pill pressing).
In or about August 2023, law enforcement officers observed PEREZ MENDEZ appearing to enter or exit the Beaumont Building.
A photograph of the narcotics recovered from the Beaumont Building is below:
In light of PEREZ MENDEZ’s involvement in the pill mills at the Washington Heights and Beaumont Buildings, law enforcement officers began conducting surveillance of PEREZ MENDEZ. During the course of that surveillance, law enforcement officers identified a storage room (the “Storage Room”) in the basement of a particular building located on Gerard Avenue in the Bronx (the “Gerard Avenue Building”) that was frequented by PEREZ MENDEZ and PERALTA BAUTISTA.
On April 6, 2024, at approximately 7:15 p.m., law enforcement officers arrested PEREZ MENDEZ as he was exiting the Gerard Avenue Building, only minutes after leaving the Storage Room. After the arrest of PEREZ MENDEZ, law enforcement officers approached the door to the Storage Room. A loud pounding sound could be heard emanating from within the Storage Room, which was consistent with the operation of a pill press.
Not long after, the loud pounding sound stopped, and PERALTA BAUTISTA exited the Storage Room. At the time, PERALTA BAUTISTA’s shirt appears to have had white powder on it. As PERALTA BAUTISTA exited the Storage Room, he was placed under arrest.
Law enforcement officers then searched the Storage Room, which was used by PEREZ MENDEZ and PERALTA BAUTISTA to store powdered narcotics, combine the narcotics with other fillers, use dyes to color the combined powders, and then use large industrial-scale pill presses to create hundreds of thousands of deadly pills. Many of the pills appear to have been manufactured to be indistinguishable from prescription medications such as Xanax, Adderall, and OxyContin, though in fact they contain, among other things, varying quantities of fentanyl.
Among other things, law enforcement officers found two industrial-scale pill presses; approximately 130,000 pills, the vast majority of which field tested positive for the presence of fentanyl (the remainder of which field tested positive for the presence of methamphetamine); approximately three kilograms of a powder in zip lock bags that tested positive for the presence of fentanyl; a bucket containing approximately 20 pounds of powdered narcotics, which field tested positive for the presence of methamphetamine; and approximately 3.5 pounds of suspected crystalized methamphetamine. The suspected narcotics and pill presses are depicted, in part, below:
Additionally, law enforcement officers found materials used to mix powdered narcotics with fillers as well as packaging materials used to package narcotics for further distribution. Those items included mixing bowls, a blender, strainers, dyes, thousands of glassine envelopes, and empty bottles of calcium citrate. From on or about June 10, 2023, to on or about March 3, 2024, PEREZ MENDEZ and his girlfriend purchased approximately 1,274 bottles of calcium pills from a particular retail chain of consumer products. This amounts to approximately 356,720 calcium pills.
* * *
JUAN MOISES PEREZ MENDEZ, 56, of the Bronx, New York, and ODALIS EUSEBIO PERALTA BAUTISTA, 53, of New York, New York, are each charged with one count of conspiracy to distribute narcotics and one count of narcotics distribution, both of which carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the El Dorado Task Force International Narcotics and Money Laundering Unit, which is comprised of law enforcement officers and investigators from HSI, the DEA, the New York City Police Department, the New York State Police, the U.S. Postal Service, the Kings County District Attorney’s Office, and the New York High Intensity Drug Trafficking Area Task Force, in connection with this investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Maggie Lynaugh and Adam Sowlati are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Three More Defendants Plead Guilty to Roles in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Three more defendants pleaded guilty today to roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.
Hakeem Rashad Mack, also known as “Paper,” 31, of Detroit, Michigan, pleaded guilty to distribution of 50 grams or more of methamphetamine. Georgia Alice Jackson, 31, of Huntington, pleaded guilty to possession with the intent to distribute 40 grams or more of fentanyl. Walter Alvin Cremeans, 56, of Culloden, pleaded guilty to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on June 28, 2023, Mack distributed approximately 283 grams of methamphetamine to a confidential informant at Mack’s Eighth Avenue residence in Huntington. Mack admitted to arranging the transaction beforehand with the informant via a video call with the FaceTime mobile device app. Mack further admitted to distributing a total of approximately 306 grams of methamphetamine to a confidential informant on May 10, 2023 and June 5, 2023.
On November 15, 2023, law enforcement officers arrested Mack and executed a search warrant at his residence. Officers seized approximately 165 grams of methamphetamine, 108 grams of fentanyl and a Charter Arms .38-caliber revolver during the search. Mack admitted that he possessed the firearm and intended to distribute the methamphetamine and fentanyl.
Officers also arrested Jackson and executed a search warrant at her Wiltshire Boulevard residence in Huntington on November 15, 2023. Officers seized approximately 380 grams of fentanyl, a Phoenix Arms HP22A .22-caliber pistol, a Sun City Stevens 320 12-gauge shotgun and various rounds of ammunition. Jackson admitted to possessing the seized fentanyl and intending to distribute it. Jackson further admitted to distributing a total of 1.35 kilograms of methamphetamine on four occasions between February 15, 2023, and August 24, 2023.
Jackson also admitted to participating in the DTO from at least February 2023 through November 2023, distributing methamphetamine and fentanyl on numerous occasions and using her residence to store and distribute drugs.
On October 28, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by Cremeans on the 4200 block of Ohio River Road in Huntington. Cremeans admitted that he placed approximately 97 grams of methamphetamine in a cup that was thrown from his vehicle during the traffic stop. The officer located and seized the methamphetamine on the ground outside of Cremeans’ vehicle. Cremeans further admitted that investigators had observed him acquiring the seized methamphetamine just before the traffic stop, and that he had arranged to receive the methamphetamine during multiple phone calls that were intercepted by investigators.
Mack, Jackson and Cremeans are scheduled to be sentenced on August 12, 2024. Mack faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine. Jackson faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine. Cremeans faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Mack, Jackson and Cremeans are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.
Mack, Jackson and Cremeans are also among 17 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearings. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.
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Spotsylvania man pleads guilty to coercing a child to produce pornographic materialRead the Press Release
RICHMOND, Va. – A Spotsylvania man pleaded guilty today to production of child pornography.
According to court documents, in July 2023, Homeland Security Investigations (HSI) Toronto contacted HSI Richmond regarding a Discord account with username “FairyHunter.” HSI identified Shane Johnston, 46, as the account user. In August 2023, HSI agents obtained a search warrant for five electronic devices belonging to Johnston. The devices contained 7,453 media files constituting child pornography. A review of Johnston’s Discord account revealed a conversation in June 2023 between Johnston and a nine-year-old child during which Johnston induced the child to produce and send to him images of herself engaging in sexual activity.
Johnston is scheduled to be sentenced on Aug. 13. He faces a mandatory minimum penalty of 15 years and up to 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Roger L. Harris, Spotsylvania County Sheriff, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorney Shea Gibbons is prosecuting 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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-51.
Southern District of New York Court Employee and Criminal Defense Attorney Sentenced for Decade-Long Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DIONISIO FIGUEROA, a/k/a “Dionicio,” a former employee of the U.S. District Court for the Southern District of New York (“SDNY”) Magistrate Clerk’s Office, and TELESFORO DEL VALLE, JR., a now-disbarred criminal defense attorney who practiced in SDNY and elsewhere for more than 20 years, were sentenced to two years and one year and one day in prison, respectively, following their convictions on conspiracy, bribery, and false statements charges. The defendants were sentenced by U.S. District Judge Mae A. D’Agostino, sitting by designation from the U.S. District Court for the Northern District of New York.
U.S. Attorney Damian Williams said: “The public relies on attorneys and court employees to maintain and validate its faith in our criminal justice system. Del Valle, a former criminal defense attorney, and Figueroa, a longtime employee of the SDNY Clerk’s Office, betrayed criminal defendants, the public, and those who rely on the court to remain impartial. Through their actions, Del Valle and Figueroa undermined the fair administration of justice and the work of the many good people in the courthouse who serve the criminal justice system with honesty and integrity. Let these sentences serve as a warning to those who seek to pervert justice for personal gain.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
As a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, FIGUEROA was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases; making summary entries of documents and proceedings on case dockets; and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases. FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release.
SDNY District Court personnel policies prohibited FIGUEROA from having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the District Court; and recommending particular attorneys to members of the public. FIGUEROA also was subject to the U.S. Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties. These include: 18 U.S.C. § 201 (bribery of public officials and witnesses) . . . .” The Code of Conduct likewise admonished that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.”
DEL VALLE was a private attorney who, over the course of more than two decades, had appeared in numerous federal criminal cases pending before the SDNY District Court.
Between at least 2011 and 2022, FIGUEROA and DEL VALLE engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY Magistrate Clerk’s Office to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases. In return, DEL VALLE paid FIGUEROA a portion of the fees that referred clients paid to DEL VALLE. Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and, in exchange, DEL VALLE paid FIGUEROA tens of thousands of dollars in bribes. DEL VALLE paid FIGUEROA directly and through FIGUEROA’s romantic partner, who would travel to DEL VALLE’s law office and pick up envelopes of cash for FIGUEROA. Many of the clients who retained and paid DEL VALLE based on FIGUEROA’s referral were originally assigned free, court-appointed counsel. Nevertheless, FIGUEROA encouraged those individuals to change counsel, including by vouching for DEL VALLE’s abilities as a lawyer.
In November 2022, federal law enforcement agents separately interviewed both FIGUEROA and DEL VALLE. After agents advised each that lying to federal law enforcement agents is a crime, FIGUEROA and DEL VALLE each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions. In particular, FIGUEROA denied making any referrals to DEL VALLE, except on a small number of occasions concerning close relations or friends, and further denied ever having received payments from DEL VALLE for referrals. DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, falsely denied having any records reflecting client referrals from, or payments to, FIGUEROA or anyone else.
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In addition to the prison sentence, FIGUEROA, 66, of New York, New York, was sentenced to one year of supervised release and was ordered to forfeit $40,000. DEL VALLE, 65, of Leonia, New Jersey, was sentenced to one year of supervised release and was ordered to pay a fine of $10,000.
Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank Balsamello and Stephanie Simon are in charge of the prosecution.
Separate Indictments Charge Two Individuals with Possession of A MachinegunRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced federal charges against two individuals charged via criminal indictments with possession of machinegun conversion devices, commonly known as “Glock switches.”
A Glock switch, or “auto sear,” is an illegal conversion device that enables a conventional semi-automatic pistol to function as a fully automatic firearm. Federal law prohibits the possession of a machinegun and defines as a machinegun the converted firearm or a device designed or intended for use in converting a firearm into a machinegun. Furthermore, under federal law, the conversion device is illegal and classified as a machinegun whether it is affixed to a firearm or not.
Trevaris Devar Kennedy, 21, of Statesville, N.C., is charged with possession of a machinegun and possession of a firearm by a felon. Kennedy was arrested this morning and will have his initial appearance in Charlotte on Tuesday, April 9, at 10:20 a.m. According to allegations in the indictment, on December 22, 2023, in Iredell County, Kennedy did knowingly possess a machinegun, that is a device intended to convert a semiautomatic handgun into a machinegun capable of fully automatic fire, without manual reloading, by a single function of the trigger. The indictment further alleges that, on that date, Kennedy did illegally possess two Glock semi-automatic pistols, knowing he had been convicted of at least one crime punishable by imprisonment for a term exceeding one year.
In the second case, a criminal indictment charges Tiquavion Davonta Ervin, 21, of Charlotte, with possession of a machinegun. As alleged in the indictment, on July 25, 2023, in Mecklenburg County, Ervin knowingly and willfully possessed a machinegun, that being a 9x19mm caliber handgun of undetermined origin, also known as a ghost gun, manufactured utilizing a Polymer80 brand kit and affixed with a Glock switch.
The charges contained in these indictments are allegations and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Statesville Police Department handled the investigation into Kennedy. Assistant U.S. Attorney Shavonn Bennette is prosecuting the case.
The ATF and the Charlotte Mecklenburg Police Department investigated Ervin’s case. Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte is prosecuting the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.
Both cases are 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. In July 2022, as part of PSN, the U.S. Attorney’s Office launched Think Again, a local initiative aiming to raise awareness about gun crimes and illegal firearms purchasing or misuse and to increase the reporting of illegal firearms activity to law enforcement.
Second Defendant Sentenced to 20 Years in Prison for Odessa Fentanyl DistributionRead the Press Release
MIDLAND, Texas – An Odessa man was sentenced in a federal court in Midland to 20 years in prison for conspiracy to possess with intent to distribute fentanyl, which resulted in the death of a local minor.
According to court documents, law enforcement and medical personnel responded to an Odessa residence for a suspected drug overdose on Oct. 2, 2023. The 16-year-old male victim was found nonresponsive and was transported to the hospital where he later died. Forensic pathologist reports and the medical examiner confirmed fentanyl as the cause of death.
An investigation revealed that Nathaniel Martinez, 18, sold fentanyl pills to the juvenile the night before.
Codefendant Jae Lynn Esparza aka Nova, 22, also of Odessa was identified as the supplier of the pills. Esparza was sentenced on March 7 to 20 years in federal prison for her role in the fentanyl conspiracy causing death.
“The substantial sentences handed down in this case reflect the gravity of it, but the punishment cannot bring back the child who died,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This death of a child is a recurring nightmare for far too many parents and families across this country who are losing loved ones to fentanyl. We will continue to vigorously pursue and prosecute the suppliers and dealers of this deadly drug.”
The Odessa Police Department investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
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Queens Man Sentenced to Five Years in Prison for Multimillion-Dollar Bank Fraud and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that CHINWENDU ALISIGWE was sentenced to five years in prison for his role in a wide-ranging bank fraud and money laundering conspiracy, which resulted in the misappropriation of approximately $4.5 million in victim funds. ALISIGWE was previously convicted by a jury following a trial before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Over the course of years, Chinwendu Alisigwe used fake IDs to open dozens of bank accounts, which he then used to launder proceeds obtained from victims of business email compromise and other fraud schemes. Alisigwe’s co-conspirators scammed dozens of victims — including individuals, businesses, a county government, and a charity that provides wheelchairs for children — into sending money to Alisigwe’s network of bank accounts. Alisigwe then laundered the money, spending his cut on shopping sprees and sending the rest to his co-conspirators overseas. As today’s sentence demonstrates, money launderers who assist scammers abroad, like Alisigwe, will be held accountable by this Office.”
According to the allegations contained in the Superseding Indictment, the evidence offered at trial, and statements made in public filings:
From approximately 2017 to 2020, ALISIGWE used fake identifications to open 36 separate bank accounts at six different financial institutions. He opened those accounts with over a dozen fraudulent passports and other fraudulent identity documents bearing his photograph but the names of other individuals. In the course of this criminal conduct, ALISIGWE used the names and social security numbers of real people who were completely unaware that ALISIGWE was using them in his fraud.
After ALISIGWE opened the fraudulent bank accounts, the accounts received millions of dollars from a variety of fraud schemes, including business email compromise schemes. The funds came from numerous victims, including a children’s charity, individual bank accounts, a public company, a life insurance company, and a county government. In total, ALISIGWE received approximately $4.5 million of fraud proceeds into his network of bank accounts.
After the fraud proceeds were deposited into the accounts opened by ALISIGWE, he laundered the proceeds through a series of transactions designed to disguise their nature and source. For example, ALISIGWE consistently transferred large sums of the victims’ money from account to account that he had opened in other people’s names. After disguising the nature and source of the fraud proceeds through these transactions, ALISIGWE wired these funds to bank accounts in foreign countries, including China and the United Kingdom. ALISIGWE also spent large portions of the stolen money on clothing and other personal items. For example, ALISIGWE used fraud proceeds to make approximately $100,000 in purchases from retail stores like Zara, Nordstrom, Macy’s, Best Buy, and Rockaway Liquor. He also withdrew approximately $650,000 of the fraud proceeds in cash. Ultimately, the transactions into and out of the 36 accounts opened by ALISIGWE amounted to nearly $6 million.
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In addition to his prison term, ALISIGWE, 38, of Jamaica, New York, was sentenced to five years of supervised release and ordered to pay $499,949.88 in restitution and $4,463,475.80 in forfeiture.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation in the course of this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys William C. Kinder, Meredith Foster, and Adam Hobson are in charge of the prosecution, with assistance from Paralegal Specialists Phineas Santello and Olivia Sebade.
Previously extradited Nigerian national pleads guilty for his role in multimillion dollar business email compromise schemeRead the Press Release
HOUSTON – A 45-year-old Nigerian national previously extradited from the United Kingdom has pleaded guilty to wire fraud conspiracy, announced U.S. Attorneys Alamdar S. Hamdani and Dena J. King for the Southern District of Texas (SDTX) and Western District of North Carolina (WDNC), respectively.
Oludayo Kolawole John Adeagbo aka John Edwards and John Dayo arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges brought against him by federal prosecutors in Charlotte and Houston. Adeagbo has now pleaded guilty for his criminal conduct in both cases following the transfer of the case in the U.S. District Court in the SDTX to the U.S. District Court in the WDNC.
A business email compromise scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.
There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.
The BEC scheme in the SDTX
According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.
The BEC scheme in the WDNC
According to filed plea documents and court proceedings, from Aug. 30, 2016, to Jan. 12, 2017, Adeagbo, his co-conspirator - Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States - and others defrauded a North Carolina university (the victim university) of more than $1.9 million via a BEC scheme.
Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multimillion dollar project at the victim university. To execute the scheme, Adeagbo, Echeazu and others registered a domain name similar to that of the legitimate construction company in charge of the university’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the university to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.
Adeagbo remains in federal custody. At sentencing, he faces a maximum of 20 years in federal prison on each count. According to the plea agreements, Adeagbo will be required to pay a money judgment to be determined by the court and restitution in the full amount of the victims’ losses, which is alleged to be at least $14,185,847.42. A sentencing date has not been set.
U.S. District Judge Kenneth D. Bell in the WDNC sentenced Echeazu to 18 months in prison followed by a year of supervised release and ordered him to pay $655,408.87 in restitution for his role in the conspiracy.
U.S. Attorney King and U.S. Attorney Hamdani commended the FBI’s Charlotte Field Office for handling the North Carolina investigation and the FBI’s Houston Cyber Task Force for conducting the investigation in Texas with the assistance of the FBI’s Cyber and Criminal Investigative Divisions. They also thanked the United Kingdom’s National Crime Agency, the Metropolitan Police Service, the City of London Police, and the Crown Prosecution Service for their substantial assistance, and the Department of Justice’s Office of International Affairs for securing the arrest and extradition of Adeagbo and Echeazu.
Assistant U.S. Attorney (AUSA) Graham Billings of the WDNC in Charlotte is in charge of the prosecution. AUSA Rodolfo Ramirez of the SDTX handled the criminal proceedings in Houston, along with Trial Attorney Brian Mund of the Justice Department’s Criminal Division Computer Crime and Intellectual Property Section (CCIPS).
If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Cetner (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution.
Previously Extradited Nigerian National Pleads Guilty for His Role in Multimillion-Dollar Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – Oludayo Kolawole John Adeagbo, 45, a Nigerian national previously extradited from the United Kingdom, has pleaded guilty to wire fraud conspiracy for his role in a multimillion-dollar business email compromise (BEC) scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina (WDNC), and Alamdar S. Hamdani, U.S. Attorney for the Southern District of Texas (SDTX).
Adeagbo, aka John Edwards and John Dayo, arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges brought against him by federal prosecutors in Charlotte and in Houston. Adeagbo has now pleaded guilty for his criminal conduct in both cases, following the transfer of the case in the U.S. District Court in the SDTX to the U.S. District Court in the WDNC.
A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.
There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.
The BEC scheme in the WDNC
According to filed plea documents and court proceedings, from Aug. 30, 2016, to Jan. 12, 2017, Adeagbo, his codefendant, Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, and others defrauded a North Carolina university (the University) of more than $1.9 million via a BEC scheme.
Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the victim University. To execute the scheme, Adeagbo, Echeazu, and others registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.
The BEC scheme in the SDTX
According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated, and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.
Adeagbo remains in federal custody. At sentencing, he faces a maximum of 20 years in federal prison on each count. According to the plea agreements, Adeagbo will be required to pay a money judgment to be determined by the court and restitution in the full amount of the victims’ losses, which is alleged to be at least $14,185,847.42. A sentencing date has not been set.
U.S. District Judge Kenneth D. Bell in the WDNC sentenced Echeazu to 18 months in prison followed by a year of supervised release and ordered the defendant to pay $655,408.87 in restitution for his role in the conspiracy.
U.S. Attorney King and U.S. Attorney Hamdani commended the FBI’s Charlotte Field Office for handling the North Carolina investigation and the FBI’s Houston Cyber Task Force for conducting the investigation in Texas with the assistance of the FBI’s Cyber and Criminal Investigative Divisions. They also thanked the United Kingdom’s National Crime Agency, the Metropolitan Police Service, the City of London Police, and the Crown Prosecution Service for their substantial assistance, and the Department of Justice’s Office of International Affairs for securing the arrest and extradition of Adeagbo and Echeazu.
Assistant U.S. Attorney Graham Billings of the WDNC is in charge of the prosecution. Assistant U.S. Attorney Rodolfo Ramirez of the U.S. Attorney’s Office in the SDTX handled the criminal proceedings in Houston, along with Trial Attorney Brian Mund of the Justice Department’s Criminal Division Computer Crime and Intellectual Property Section (CCIPS).
If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Cetner (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise.
Postal Workers Indicted for Destroying MailRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of indictments charging Austin Engler (26, St. Augustine) and Teron Haywood, Sr. (46, Jacksonville) with destruction or delay of mail by a United States Postal Service (USPS) employee. If convicted, each faces a maximum penalty of five years in federal prison.
According to the indictments, Engler and Haywood were employed by USPS as Rural Carrier Assistants assigned to routes in the St. Augustine and Jacksonville areas, respectively. In June 2023, Engler and Haywood knowingly and unlawfully destroyed or delayed mail which had been provided to them for delivery in their capacity as mail carriers.
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.
These cases were investigated by the United States Postal Service – Office of Inspector General. They will be prosecuted by Assistant United States Attorney David B. Mesrobian.
Phoenix Police Officer Arrested and Charged for Receiving and Possessing Child PornographyRead the Press Release
PHOENIX, Ariz. – Alaa Robert Bartley, 41, of Gilbert, was arrested on Friday for receiving and possessing child sex abuse images. He was charged by federal criminal complaint on Friday with one count of Knowingly Receiving Child Pornography and one count of Knowingly Possessing Child Pornography. Bartley is an officer with the Phoenix Police Department.
The complaint alleges that, between August 2020 and February 2022, while living in Gilbert, Bartley used a social media platform to communicate with an adult woman, with the two expressing their sexual interest in children and the woman sending Bartley child pornography images. The affidavit alleges that Bartley used a fictitious name, but identified himself as a police officer and sent a picture of himself that showed his face to her. The adult woman has been charged separately in the Eastern District of Michigan in CR-23-20653.
A count of Knowingly Receiving Child Pornography carries a minimum mandatory sentence of five years and a maximum sentence of 20 years in prison, a fine of up to $250,000, and up to a lifetime of supervised release. A count of Knowingly Possessing Child Pornography carries a maximum sentence of 10 years in prison; if the offense involved a visual depiction of a prepubescent minor or minor who had not attained the age of 12, the offense carries a maximum sentence of 20 years in prison, a fine of up to $250,000, and up to a lifetime of supervised release.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.,
Bartley - Complaint
CASE NUMBER: 24-6161MJ
RELEASE NUMBER: 2024-047_Bartley# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Owner of Chicago-Area Child Care Centers Sentenced to Four Years in Prison for Fraudulently Obtaining More Than $3.3 Million in State SubsidiesRead the Press Release
CHICAGO — The owner of Chicago-area child care centers has been sentenced to four years in federal prison for scheming to fraudulently obtain more than $3.3 million in State of Illinois subsidies designed to help low-income families afford child care.
ALEESHA McDOWELL owned child care providers A&A Kiddy Kollege Inc. in Calumet City, Ill., A&A Kiddy Kollege 2 in Calumet Park, Ill., and Kreative Kidz Academy Inc., Kreative Kidz Academy II Inc., and Kreative Kidz Academy III Inc. in Chicago. From 2012 to 2020, McDowell schemed with directors of her centers and others to defraud the Illinois Department of Human Services’ Child Care Assistance Program by submitting applications containing materially false information, including fraudulent paystubs and income verification letters regarding a parent’s eligibility to qualify for state subsidy payments. In many instances, McDowell or the directors falsely represented in the applications that a parent was employed by one of McDowell’s child care centers in order to satisfy IDHS’s requirement that recipients of the funds either be in school or employed and earning less than a certain income threshold.
As a result of the scheme, McDowell and her co-schemers caused IDHS to pay McDowell’s child care centers more than $3.3 million in subsidy payments for services purportedly provided to children who were not eligible to receive such benefits. McDowell spent some of the criminally derived money on a Bentley Bentayga and a house in Mokena, Ill.
McDowell, 44, of Mokena, Ill., pleaded guilty last year to a federal wire fraud charge. In addition to the prison sentence, U.S. District Judge Manish S. Shah on March 27, 2024, ordered McDowell to pay restitution of $3,339,563.
Seven other defendants charged as part of the investigation also pleaded guilty to federal criminal charges.
McDowell’s sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, and Shantel R. Robinson, Special Agent-in-Charge of the Midwest Region of the U.S. Department of Agriculture, Office of Inspector General. The government was represented by Assistant U.S. Attorneys Kate McClelland and Brian Hayes.
OMB Gang Member Sentenced on Firearms Trafficking and Fentanyl Distribution Charges to 276 Months in Federal PrisonRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 276 months in federal prison after pleading guilty to charges related to firearms straw purchasing and trafficking, illegally possessing firearms, and the distribution of fentanyl.
According to public court documents and evidence presented at sentencing, Armani Eugene Gates, 20, an OMB gang member, organized for the illegal acquisition of firearms via multiple straw purchasers. Gates then trafficked the guns to other OMB members and associates, in whose possession they were recovered by law enforcement. One of the guns recovered had been converted to a machinegun, and two of the guns had high-capacity magazines. Two of these firearms were determined to have been used in gang-related shootings.
Additionally, Gates led efforts to acquire and distribute over 3.5 kilograms of fentanyl. Gates employed others to assist him in his drug operation, including at least one minor. He also possessed a firearm in connection with his drug trafficking, as well as utilized residences to store his fentanyl.
In July 2023, federal search warrants were executed related to this investigation, during which approximately 13,000 fentanyl pills, seven firearms, one machinegun conversion device, and $23,000 in cash were seized. Gates was arrested at that time on the federal charges. The press release regarding those warrants is available here: https://www.justice.gov/usao-sdia/pr/defendants-charged-joint-federal-state-and-local-investigation-firearms-trafficking.
After completing his term of imprisonment, Gates will be required to serve five years of supervised release. There is no parole in the federal system.
“Since the inception of ‘Project Safe Neighborhoods’, there have been numerous investigations and prosecutions that have had a significant impact on violent crime in Central Iowa,” stated Des Moines Police Chief Dana D. Wingert. “This is simply another example of what success looks like, which should send a clear message to those in our communities who are involved in violent crime. The United States Attorney’s Office and law enforcement agencies at all levels are committed to identifying, investigating and prosecuting violent criminals and removing them from our communities. This collective mindset is what underpins our success, yet we will remain diligent in our efforts to keep our citizens safe through the continued work of “Project Safe Neighborhoods.’ ”
“The Bipartisan Safer Communities Act has given ATF additional tools needed to go after straw purchasers and firearms traffickers who flood our streets with weapons that pose a threat to every single person in Des Moines,” said ATF Kansas City Field Division Special Agent in Charge Bernard Hansen. “This sentence sends a clear message to those who think they can illegally traffic guns into our communities or straw purchase firearms. ATF’s NIBIN technology has proven to be an invaluable resource for law enforcement in our continued pursuit to reduce violent crime and we will never waiver on our commitment to protect the public and to aggressively target firearms traffickers. This is a huge win for public safety that will reduce the proliferation of illegal guns that represent a grave danger to the public, but law enforcement is united and strong. I thank the U.S. Attorney’s Office and all our law enforcement partners for their diligent work and tireless dedication to our shared public safety mission.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant United States Attorneys Kristin M. Herrera and Mallory E. Weiser prosecuted the case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Des Moines Police Department – Intelligence Division; and the United States Postal Inspection Service, with assistance from the Iowa Division of Narcotics Enforcement, Iowa State Patrol, and the Iowa Division of Intelligence and Fusion Center.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
North Port Registered Sex Offender Indicted for Attempting to Transfer Obscene Materials to A MinorRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of a two-count indictment charging Imran Siddiqi (40, North Port) with attempting to transfer obscene material to a minor and committing a felony offense involving a minor as a registered sex offender. If convicted on all counts, Siddiqi faces a maximum penalty of 20 years in federal prison, including a 10-year minimum mandatory sentence.
According to court documents, between January 31 and March 6, 2024, Siddiqi engaged in a conversation with an undercover law enforcement officer who was posing online as a 13-year-old girl. During the conversation, Siddiqi repeatedly described his desire to have sex with the child, sending multiple explicit photographs of himself and other explicit images to the undercover officer. Siddiqi is a registered sex offender. According to the Florida Department of Law Enforcement Sex Offender Predator System, Siddiqi was convicted in 2016 of traveling to meet a minor to commit an unlawful sexual offense.
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 brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
New Jersey man indicted for nationwide scheme to tamper with diesel pollution control systems in violation of the Clean Air ActRead the Press Release
Tacoma – A 43-year-old Columbia, New Jersey man was arraigned today on an indictment charging him with conspiracy and thirteen counts of violating the Clean Air Act for his scheme to interfere with pollution control software on diesel trucks, announced U.S. Attorney Tessa M. Gorman. Jonathan Achtemeier entered pleas of not guilty to all counts. Trial is scheduled in front of U.S. District Judge Tiffany M. Cartwright on June 10, 2024.
“Working with a laptop from the comfort of his own home, the defendant allegedly remotely tampered with pollution control systems to enable trucks nationwide to cause massive amounts of unlawful pollution. His actions degraded the air in the Western District of Washington and nationwide in a manner that harms us all,” said U.S. Attorney Gorman. “I am grateful to the employee of a local company who came forward and exposed the fact that trucks in his company’s fleet had been altered by the defendant.”
According to the indictment, Achtemeier conspired with mechanics in garages and operators of truck fleets to disable the anti-pollution software installed on diesel trucks. Achtemeier allegedly disabled the software remotely by connecting to laptops he had provided to various coconspirators. Some of the coconspirators would pass the laptop on to others seeking to have the anti-pollution software disabled on their trucks. Once the laptop was hooked up to the truck’s onboard computer, Achtemeier could access it from his computer and delete the software designed to slow the truck if the pollution control device was missing or malfunctioning. Achtemeier allegedly altered the software after the mechanic had removed the pollution control equipment or in coordination with that process.
Removing the pollution control equipment and disabling the software results in trucks polluting at 30 to 1,200 times the level of a truck with pollution control systems. Tampering with pollution control software is a violation of the Clean Air Act.
Achtemeier charged as much at $4,500 per truck for work that often took him two hours or less. Achtemeier advertised his services on social media nationwide, doing business as Voided Warranty Tuning (VWT) or Optimized Ag. Between 2018 and 2021 his company took in more than $5 million in gross profits.
The coconspirators in this case have service garages or truck fleets in various areas of Washington. The trucks that were altered range from pick-ups such as a Dodge R3500 to Kenworth and Freightliner semi-trucks.
Conspiracy is punishable by up to five years in prison and a $250,000 fine. Violating the Clean Air Act is punishable by up to two years in prison per count and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID).
The case is being prosecuted by Assistant United States Attorneys Lauren Watts Staniar and Seth Wilkinson, and Special Assistant United States Attorney Karla Perrin. Ms. Perrin is an attorney with the EPA.
achtemeier_indictment.pdfMoorpark Man Sentenced to More Than 11 Years in Federal Prison for Trying to Entice Sexual Activity from Someone He Thought Was a MinorRead the Press Release
LOS ANGELES – A Ventura County man was sentenced today to 140 months in federal prison for soliciting on social media platforms sexually explicit photos from an individual he thought was a 14-year-old girl.
Thomas Kern Gissell, 29, of Moorpark, was sentenced by United States District Judge John F. Walter, who also placed Gissell on 20 years of supervised release when Gissell eventually is released from prison and ordered him to pay $5,100 in special assessments and $27,000 in restitution.
Gissell pleaded guilty on January 5 to one count of attempted enticement of a minor to engage in criminal sexual activity.
The Ventura County District Attorney’s Office began investigating Gissell after receiving information that he had contacted undercover law enforcement officers posing as teenage girls. According to the affidavit in support of a complaint filed in this case, Gissell engaged in online chats with the individuals and asked them to send nude photos.
Specifically, in August and September of 2022, Gissell knowingly attempted to entice a person whom he believed was a 14-year-old girl to engage in sexual activity. Gissell further admitted in his plea agreement to sending the purported 14-year-old girl images of a lingerie gift card and images of the lingerie he wanted her to purchase with the gift card that he provided.
Gissell was originally arrested in February 2023 pursuant to charges filed by the Ventura County District Attorney’s Office. The matter was subsequently presented to the United States Attorney’s Office, which filed the federal complaint in late February 2023.
The Ventura County Child Exploitation and Human Trafficking Task Force is comprised of investigators and prosecutors with the Ventura County Sheriff's Office, the Ventura County District Attorney’s Office, the Simi Valley Police Department, the Oxnard Police Department, the Santa Barbara County Sheriff's Office, the FBI, and the United States Attorney’s Office.
Members of the Task Force are specially trained in investigating online child sexual exploitation and human trafficking, and they strive to provide rapid responses to the sexual victimization of children. The Gissell investigation is the first criminal case brought by the Task Force.
Assistant United States Attorney Kellye M. Ng of the Violent and Organized Crime Section prosecuted this case.
Mississippi Man Sentenced for Luring Columbia Teen for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A Bay Springs, Mississippi, man was sentenced in federal court today for luring a 16-year-old victim in Columbia, Mo., to meet him at a hotel for illicit sexual activity.
Zachary Wes Buckley, 49, was sentenced by U.S. District Judge Brian C. Wimes to 16 years in federal prison without parole.
On Nov. 7, 2023, Buckley pleaded guilty to one count of enticing a minor to engage in illegal sexual activity. Buckley admitted that he traveled to Columbia and rented a room at a local hotel, where he had sex with the child victim.
Buckley and the child victim began communicating in an online chat room in January 2023 then moved their conversations to GoogleChat. The chats, which included sexually explicit conversations, photos and videocams, led to plans to meet in person. Buckley traveled to Columbia on Jan. 30, 2023, and met the child victim at a local park. He then drove to a Columbia hotel, where he engaged in sexual intercourse with the child.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department, and the Jasper County, Mississippi, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mexican Man Sentenced to Two Years in Prison for Illegally Reentering the United States After Being Deported Six TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to two years in federal prison.
Miguel Araujo-Rocha, age 38, a citizen of Mexico illegally present in the United States and residing in Tama, Iowa, received the prison term after a November 8, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Araujo-Rocha admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Araujo-Rocha was previously deported in April 2018, September 2018, October 2019, February 2021, September 2021, and October 2021. On October 6, 2023, immigration officials learned Araujo-Rocha had illegally returned to the United States and found Araujo-Rocha at the Tama County Jail following his arrest on state charges. Araujo-Rocha was previously convicted in the Western District of Texas in August 2018 and in February 2019 of illegally reentering the United States. He was also convicted in the Iowa District Court for Tama County in March 2014 of operating a motor vehicle while intoxicated and child endangerment for driving drunk with minor children in the car, including a two-year-old.
Araujo-Rocha also knowingly used a fraudulent Social Security card and alias to prove his authorization to work in the United States when he completed employment and tax forms in March 2022 at a business in Grinnell, Iowa. Illegal aliens are not authorized to work in the United States. The name and number on the Social Security card was a real Social Security number assigned to a United States citizen whose name was on the card.
Araujo-Rocha was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Araujo-Rocha was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Araujo-Rocha is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-73.
Follow us on Twitter @USAO_NDIA.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Two TimesRead the Press Release
A man who illegally returned to the United States after being deported two times was sentenced April 5, 2024, to almost three months in federal prison.
Javier Juarez-Cuaquehua, age 35, a citizen of Mexico illegally present in the United States and residing in Cresco, Iowa, received the prison term after a February 15, 2024, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Juarez-Cuaquehua admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Juarez-Cuaquehua was previously deported in July 2009 and November 2019. On December 19, 2023, immigration officials learned Juarez-Cuaquehua had illegally returned to the United States and found Juarez-Cuaquehua at the Howard County Jail following his arrest on state charges.
Juarez-Cuaquehua was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Juarez-Cuaquehua was sentenced to 81 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Juarez-Cuaquehua is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 24-CR-2001.
Follow us on Twitter @USAO_NDIA.
McDowell County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Lansen Sharif Waugh, 44, of Kyle, pleaded guilty today to distribution of cocaine and methamphetamine.
According to court documents and statements made in court, on June 15, 2021, Waugh sold controlled substances that contained cocaine and methamphetamine to a confidential informant at a residence in Kyle where Waugh was staying. Waugh admitted to the transaction and further admitted to selling cocaine and a controlled substance containing heroin and fentanyl to the confidential informant on two other occasions.
On July 2, 2021, law enforcement officers executed a search warrant at Waugh’s residence in Kyle, and found two firearms and additional quantities of cocaine. Waugh admitted that he intended to distribute the cocaine found during the search.
Waugh is scheduled to be sentenced on August 12, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-121.
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