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16 May 2024
Tampa Methamphetamine Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge William F. Jung has sentenced Cameron Mosley (30, Tampa) to 10 years and 7 months in federal prison for possession with intent to distribute methamphetamine. Mosley pleaded guilty on February 2, 2024.
According to court documents, on March 31, 2023, Mosley spoke on the phone with co-conspirator Enock Edouard and, using a codename, asked for methamphetamine. They also discussed what Mosley’s customers would do with the methamphetamine. Edouard and Mosley later agreed to meet at a restaurant in Tampa. Law enforcement conducted surveillance of the drug transaction and then attempted to pull over Mosley, who fled. Helicopter surveillance captured Mosley throwing an object from his car as he was fleeing from law enforcement. Mosley and Edouard spoke on the phone later that evening and discussed Mosley having to throw the methamphetamine from the car while trying to evade police. Law enforcement arrested Mosley the next day and recovered over 40 grams of methamphetamine from the spot where Mosley was seen throwing the narcotics.
For his role in this case, Enock Edouard was convicted following a bench trial and is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. It was prosecuted by Assistant United States Attorney Michael R. Kenneth.
Tampa Man Indicted for Making A Bomb Threat to A Congressional OfficeRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg the return by a grand jury of an indictment charging Rigoberto Albizar Martinez (56, Tampa) with making a telephonic threat to damage and destroy a building with an explosive. If convicted, Martinez faces a maximum penalty of 10 years in federal prison.
According to the indictment, on May 1, 2024, Martinez called the District Office of a Member of the United States House of Representatives. During the call, Martinez threatened to place a bomb in the Congressional member’s Tampa office.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Capitol Police – Threat Assessment Section. It will be prosecuted by Special Assistant United States Attorney Joe Wheeler III.
St. Louis County Cab Driver’s Shooter Sentenced to 22 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Thursday sentenced a man who fatally shot a cab driver in Hazelwood, Missouri in 2022 to 22 years in prison.
Trishawn Jones, 20, was one of four teens involved in the robbery of Dewight Price, 54, on April 24, 2022. All four pleaded guilty and two await sentencing. Coron Dees, 20, and Jeremiah Allen, 20, pleaded guilty to a robbery charge. Jones and Tywon Harris, 20, pleaded guilty to one count of aiding and abetting in the commission of a murder. Judge Autrey sentenced Dees to 17 years in prison in April.
After leaving a party in downtown St. Louis, the four teens stopped at a downtown gas station and called for a cab at 5:23 a.m. They planned to take the taxi to a fake address near Allen’s home, then run away without paying. After learning that they would have to prepay, they began discussing plans to rob Price.
They told Price to drive to Hazelwood Central High School, thinking there would be no witnesses there at that time. Dees and Jones then robbed Price at gunpoint. Price begged the teens not to shoot. After Price handed cash to Jones, Price grabbed a firearm he kept in his door. Allen warned the others that Price had a gun.
Price began to get out of the cab, but Harris opened his door, knocking Price to the ground. Jones saw Price’s gun and fired once, striking Price in the torso. The teens then ran away without rendering aid to Price or calling for help.
In a letter to Judge Autrey, one of Price’s daughters wrote that her father “was the happiest joyful person just trying to get his customers to their destinations safely and satisfied.”
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Spokane Police Department Receives Nearly $120,000 Forfeiture Award from U.S. Department of Justice as a Result of Forfeiture of Spokane Home Used for Methamphetamine TraffickingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today and presented the Spokane Police Department with $119,621.45 in asset forfeiture equitable sharing funds. Spokane Police Chief Justin Lundgren accepted the funds, which may be used for further law enforcement purposes, on behalf of the Spokane Police Department.
The asset forfeiture funds are the result of an Organized Crime Drug Enforcement Task Force (OCDETF), Drug Enforcement Administration (DEA), and Spokane Police Department (SPD) investigation which targeted drug traffickers in the Spokane area and Eastern Washington more broadly.
The nearly $120,000 in forfeiture funds shared with the Spokane Police Department were the result of the seizure and forfeiture of Defendant Helmut Uwe Borchert’s residence in Spokane. Helmut Borchert had a long history of drug possession and distribution in Spokane dating back to the late-1980s. In this case, Defendant Borchert used his residence to store methamphetamine to facilitate his drug trafficking of the drug in the Spokane area. At the time of his arrest, law enforcement agents seized approximately 20 pounds of methamphetamine from Borchert’s home.
Borchert pleaded guilty to Possession with Intent to Distribute 500 grams or More of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, and was sentenced October 14, 2021, to a 12-year term of imprisonment, to be followed by a 5-year term of court supervision. He was also ordered to forfeit his residence located at 1903 E. Main Avenue, Spokane, Washington. Following the sentence, the United States Marshals Service sold the forfeited residence, proceeds of which are now shared with the Spokane Police Department.
As a result of the same OCDETF investigation, the United States has convicted the following defendants and seized and forfeited assets from them:
- Michael Paul Swanson, pleaded guilty to Possession with Intent to Distribute 50 grams or More of Methamphetamine, and was sentenced on April 25, 2023, to a 7.5-year term of imprisonment, to be followed by a 5-year term of court supervision. He was also ordered to forfeit $17,780 in U.S. currency seized by the United States.
- Jorge Octavio Valenzuela-Medrano, pleaded guilty to Possession with Intent to Distribute 500 grams or More of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, and was sentenced on February 26, 2024, to a 3-year term of imprisonment, to be followed by a 5-year term of court supervision. The United States seized and forfeited $30,290 and a firearm from Valenzuela-Medrano.
- Leonardo Martinez is a fugitive. Notwithstanding Martinez’s fugitive status, the United States seized $72,354 and two firearms from him. On July 6, 2022, he was indicted by a grand jury in the Eastern District of Washington for one count of Possession with Intent to Distribute 400 grams or More of a Mixture or Substance Containing a Detectable Amount of Fentanyl. The public is reminded that charges contained in an indictment are only accusations and are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Pursuant to applicable regulations, an 80% share of the funds from the sale of Borchert’s forfeited residence are being shared with the Spokane Police Department in recognition of its significant contribution to this investigation. The shared asset forfeiture funds will assist in further crime-fighting efforts.
The Department of Justice Asset Forfeiture Program is, first and foremost, a law enforcement program. It removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The Department of Justice underscores these law enforcement purposes with all federal, state, local, and tribal law enforcement agencies.
One of the ancillary benefits of asset forfeiture is sharing federal forfeiture proceeds with cooperating state and local law enforcement agencies through equitable sharing as is occurring here. The Department of Justice Equitable Sharing Program enhances cooperation between federal, state, local, and tribal law enforcement by providing valuable additional resources to those law enforcement agencies.
United States Attorney Vanessa R. Waldref said, “Removing pounds of illicit narcotics from our community is a great victory and saves lives. Our asset forfeiture program seeks to deprive wrongdoers of the proceeds of their crimes and to compensate victims. I am pleased that these funds will assist in further crime-fighting efforts. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the DEA and Spokane Police Department who investigated this case. This investigation exemplifies the positive crime fighting results that can be achieved when federal, state, local, and Tribal law enforcement agencies collaborate and work together.”
“The reason why methamphetamine traffickers, like Mr. Borchert, deal drugs dangerous to our community is to enrich themselves,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “Asset forfeiture is an important tool to strip traffickers of their ill-gotten gains while, at the same time, giving something back to the communities they preyed upon. It is gratifying to see the Drug Enforcement Administration’s partnership with the Spokane Police Department result in this notable forfeiture that accomplishes these goals.”
“This case was the result of a joint DEA/SPD investigation, marked by seamless collaboration between members of SPD pro-active units, the SPD Special Investigations Unit (SIU), and DEA agents. Every member who participated in the investigation of this drug trafficking organization played an invaluable role that culminated in multiple arrests, sentencings, and the removal of dangerous drugs from the streets of Spokane,” said Chief Lundgren. “We are grateful to our partners at the U.S. Attorney’s Office for awarding SPD significant dollars which will be used to continue the effort to shut down other drug operations that threaten our community and put the vulnerable and increasingly, our children, at risk.”
Spokane Police DepartmentThe enforcement action resulting in this forfeiture was part of an OCDETF investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the Drug Enforcement Administration.
This case was investigated by the Spokane Resident Office of the Drug Enforcement Administration in partnership with the Spokane Police Department.
This case was prosecuted by Caitlin Baunsgard and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
More information regarding the DOJ Equitable Sharing Program can be found here: DOJ Guide to Equitable Sharing.
Southampton Investment Advisor Convicted of Fraud and Money Laundering ChargesRead the Press Release
Jeffrey Slothower, a former registered investment adviser and founder of the New York investment advisory firm Battery Private, Inc. (Battery Private), was convicted today by a federal jury in Central Islip of all three counts of an indictment charging him with wire fraud, investment adviser fraud and money laundering in connection with a scheme to misappropriate more than $1 million from clients. The verdict followed a three-day trial before United States District Judge Gary R. Brown. When sentenced, Slothower faces up to 30 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“This case was about greed and betrayal of clients who trusted the defendant and thought their money was safely invested with him,” stated United States Attorney Peace. “Slothower tricked those clients so he could steal their money and lavish himself with a new car, high-end clothing and jewelry, and a membership at an East End country club. Protecting investors from fraudsters like the defendant has always been a priority of this Office and today’s verdict underscores our resolve to vigorously prosecute those who enrich themselves at the expense of victims.”
Mr. Peace thanked the Special Agents of the Federal Bureau of Investigation, New York Field Office, for their outstanding investigative work on the case.
As proven at trial, Slothower orchestrated a scheme to misappropriate more than $1 million from current and prospective clients. Specifically, while operating Battery Private, Slothower solicited business from Victim-1 and Victim-2, a couple from California whose money Slothower had managed at another financial services firm where he was previously employed. Slothower promised the victims he could beat any rate of return they were receiving and do so without market risk. In 2017, he offered to invest Victim-1’s money into what Slothower described as bonds backed by homeowner’s association fees (the “HOA Bonds”), which would pay an eight percent return.
Slothower sent Victim-1 wiring instructions for his investment and attached a document that made additional representations about Victim-1’s purported investment, claiming that Victim-1’s money would be held in the “capital reserves” of Battery Private. Between January 25, 2017 and January 27, 2017, Victim-1 sent more than $500,000 to Slothower at Battery Private to be invested in the purported HOA Bonds. Instead of investing in HOA Bonds or holding the funds in “capital reserves,” Slothower funneled the money into his personal bank accounts, and then used those funds to purchase a $125,000 Mercedes Benz SUV, and membership dues at Long Island National Golf Club, a private East End country club. To further the fraudulent scheme, Slothower made payments to Victim-1 that were falsely represented as quarterly distributions from Victim-1’s “investment.”
Later, Slothower solicited Victim-1 to invest additional moneys, including funds controlled by Victim-1’s spouse, who was then a Battery Private client. Enticed by the supposedly steady rate of return, Victim-2 agreed to invest in the same purported HOA Bonds, and in December 2017, Victim-2 sent more than $500,000 to Slothower at Battery Private. However, like Victim-1, Victim-2’s money was not invested in HOA Bonds or held in “capital reserves” as represented by Slothower. Instead, he used that money to pay tens of thousands of dollars in personal credit card debt traced to an approximately $6,500 Chanel purse, an approximately $13,000 Rolex watch, and more than $11,000 in Ralph Lauren clothing, among other things. To further the fraudulent scheme, Slothower made payments to Victim-2 that were falsely represented as quarterly distributions from Victim-2’s investment.
In June 2018, still unaware of the fraudulent scheme, Victim-1 made an additional investment of approximately $84,000 into the purported HOA Bonds. Slothower used Victim-1’s money to make purported quarterly payments to Victim-1 and Victim-2 that were falsely represented as their investment returns and to pay membership dues at the private golf club.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Office’s Business and Securities Fraud Section. Assistant U.S. Attorneys Drew G. Rolle, Anthony Bagnuola, Adam Toporovsky and Benjamin Weintraub are in charge of the prosecution, with the assistance of Paralegal Specialists Adam Bernard and Michael Compitello.
The Defendant:
JEFFREY SLOTHOWER
Age: 46
Southampton, New YorkE.D.N.Y. Docket No. 21-CR-602 (GRB)
Smuggler sent to prison in conspiracy resulting in two deathsRead the Press Release
LAREDO, Texas - A 35-year-old citizen of the Dominican Republic has been sentenced to federal prison for conspiracy to transport individuals within the United States resulting in death, announced U.S. Attorney Alamdar S. Hamdani.
Wilkin Perez-Perez pleaded guilty Jan. 12, 2023.
U.S. District Judge Keith P. Ellison found him to be a leader in the conspiracy and ordered Perez-Perez to serve 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Perez-Perez was involved in numerous alien smuggling events, engaged in violent conduct both in and outside the scope of this conspiracy, to include the possession of a weapon, and that Perez-Perez fled the United States when he learned of his arrest.
“ ‘Two bodies found along the banks of the Rio Grande,’ a tragic and all too often headline made possible by ruthless and reckless human smugglers like Perez-Perez and the transnational criminal organizations that employ the likes of him,” said Hamdani. “We will go to any lengths necessary to prosecute the leaders and members of these organizations who care only about cash and not about they humans they transport. Let this case be an example to anyone thinking about becoming a part of the deadly smuggling industry in the United States, you will be held accountable…no matter how long it takes.”
Perez-Perez had been in charge and managing the transportation of people into the United States as well as their harboring in the country.
On Sept. 21, 2017, Melvin L. Barahona-Godoy and Yoryi Alexis Perez led several people to the Rio Grande River. Two drowned while trying to cross into the United States. Authorities discovered their bodies along the river bank.
The investigation led to Perez-Perez who had returned to the Dominican Republic following the discovery of the deceased individuals. He was determined to being in charge of and managing the U.S. branch of the organization. He had coordinated the transportation of these and other individuals, including the two that died, into the interior of the United States and harboring them in Laredo.
Perez-Perez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Barahona-Godoy, 27, Guatemala, and Perez, 34, Dominican Republic, were also charged in relation to the transportation and harboring of the men and others and were later sentenced to 57 and 78 months in prison, respectively.
Homeland Security Investigations, Border Patrol and U.S. Marshals Service conducted the investigation.
Assistant U.S. Attorney Brandon Scott Bowling prosecuted the case.
Seven Sinaloa Cartel members and associates sentenced to prison for trafficking fentanyl, methamphetamine and cocaineRead the Press Release
MIAMI – Seven members and associates of the Sinaloa Cartel have been sentenced to federal prison for their role in a drug trafficking conspiracy involving fentanyl, methamphetamine, and cocaine. The sentences come after the defendants had previously pleaded guilty in this matter.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa Cartel is at the heart of the fentanyl crisis. The cartel has developed global supply chain networks and operate clandestine labs in Mexico where they manufacture these drugs and then utilize their vast distribution networks to transport the drugs into the United States. Fentanyl is the deadliest drug threat the United States has ever faced, killing 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl.
“When you consider the quantity of drugs being trafficked and the deleterious impact illicit narcotics have on our community, it is readily apparent that these defendants sold drugs for the sole purpose of profiting off a public health crisis – addiction,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The fentanyl epidemic, to include here in south Florida, has caused a deafening silence as thousands of people have overdosed and died. We commend our partner agencies, as we work collectively to prosecute the members and associates of cartels that fuel the drug poisoning crisis and traffic in firearms.”
“The significant sentences imposed by the court reflect the deadly nature of the crimes committed by Mexican cartel members in flooding our communities with fentanyl and other lethal drugs,” said Deputy Attorney General Lisa Monaco. “Our law enforcement officers work across the U.S. and around the globe to combat the cartels’ firearms and drug trafficking, which wreak so much violence and devastation in our communities.”
“Guns and drugs are often linked, particularly when it comes to the cartels,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF is committed to working with all our partners to hold accountable those who spread poison in our streets and arm those who supply that poison. This case exemplifies the incredible work going on every day by ATF agents and analysts around the country to protect the American public from dangerous criminals.”
“This investigation is a testament to the combined efforts of multiple Field Divisions of ATF in collaboration, conjunction, and synthesis with our federal, state, and local partners,” said Special Agent in Charge Christopher A. Robinson of the ATF, Miami Field Division. “Combating violent crime is one of ATF’s core missions, and this case demonstrates how this relationship works to collectively keep American communities and the communities of our neighbors to the south safe from one of the most violent drug trafficking organizations in the world.”
Hector Alejandro Apodaca-Alvarez, 53, of Somerton, Arizona; Mark Anthony Roque Bustamante, 33, of Yuma, Arizona; Jorge Moreno, 28, of San Luis Rio Colorado, Mexico; Jonathan Nicholas Chavez, 25, of Brawley, California; Luis Tejada Velasquez, 37, of San Luis Rio Colorado, Mexico; Austin Toma Grupee, 43, of Providence, Rhode Island; and Jose Chavez Zaragoza, 38, of Yuma, Arizona, participated in the drug trafficking conspiracy to distribute the controlled substances. The defendants were arrested in the United States.
From June 2022 through May 2023, Apodaca-Alvarez, who was previously convicted of narcotics trafficking-related offenses in three federal districts prior to his arrest in this case, used the U.S. mail and his own trucking business to send tens of thousands of pressed fentanyl pills and kilogram-quantities of fentanyl, methamphetamine, and cocaine to an undercover agent based in South Florida. The undercover agent also conducted narcotic and monetary transactions with Apodaca-Alvarez and codefendants in California, Arizona, and Massachusetts. Apodaca-Alvarez told the undercover agent he was coordinating directly with members of the Sinaloa Cartel to facilitate the large-scale distribution of narcotics and stated that the potency of the pressed fentanyl pills that he sold “was dropping people everywhere.” Apodaca-Alvarez worked directly with Ismael “El Mayo” Zambada Garcia, a co-founder of the Sinaloa Cartel.
During the conspiracy, Apodaca-Alvarez coordinated with the remaining codefendants to assist in distributing the controlled substances throughout the United States, to include Arizona, California, Florida, Kentucky, Massachusetts, Rhode Island, Texas, and Virginia.
Law enforcement officers identified Roque Bustamante, nicknamed the “Skittles Man” due to his distribution of rainbow-colored fentanyl pills, as Apodaca-Alvarez’s primary source of supply. In recorded conversations, Apodaca-Alvarez and Roque Bustamante inquired if the undercover agent would supply them with firearms, including .50 caliber high powered rifles to be smuggled into Mexico.
Apodaca-Alvarez was ultimately arrested in South Florida while delivering 16 kilograms of fentanyl and 2 kilograms of cocaine to the undercover agent during an undercover operation. Moreno was present with Apodaca-Alvarez during the arrest operation.
In total, law enforcement seized approximately twenty-one kilograms of pure fentanyl; seventy thousand rainbow-colored, pressed fentanyl pills; three thousand M30 pressed fentanyl pills, blue in color; two hundred and forty-three pounds of crystal methamphetamine; two kilograms of cocaine; and twenty-four firearms (to include eighteen rifles and six pistols) related to this conspiracy.
Photo is of seized rainbow-colored, pressed fentanyl pills.
Photo was introduced into the court record during Tejada Velasquez’s sentencing hearing on May 15.
Tejada Velasquez was sentenced yesterday to 242 months in prison.
On May 2, Roque Bustamante was sentenced to life in prison, Grupee was sentenced to 262 months in prison and Chavez was sentenced to 57 months in prison.
On March 21, Apodaca-Alvarez was sentenced to life in prison, Moreno was sentenced to 121 months in prison and Zaragoza was sentenced to 47 months in prison. In addition, Apodaca-Alvarez agreed to the forfeiture of his entire trucking business and Arizona-based residence.
ATF Fort Lauderdale investigated the case with assistance from DEA, Homeland Security Investigations (HSI), Miami, Broward Sheriff’s Office (BSO), ATF Yuma, U. S. Marshals Service, U.S. Postal Inspection Service.
Assistant U.S. Attorneys Ajay J. Alexander, M. Catherine Koontz, and Brooke Latta of the Southern District of Florida, along with Assistant U.S. Attorney Addison Owen of the District of Arizona, prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60111.
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Seven Sinaloa Cartel Members and Associates Sentenced to Prison for Trafficking Fentanyl, Methamphetamine, and CocaineRead the Press Release
Seven members and associates of the Sinaloa Cartel have been sentenced to prison for their role in a drug trafficking conspiracy involving fentanyl, methamphetamine, and cocaine. The defendants previously pleaded guilty in this matter.
Hector Alejandro Apodaca-Alvarez, 53, of Somerton, Arizona; Mark Anthony Roque Bustamante, 33, of Yuma, Arizona; Jorge Moreno, 28, of San Luis Rio Colorado, Mexico; Jonathan Nicholas Chavez, 25, of Brawley, California; Luis Tejada Velasquez, 37, of San Luis Rio Colorado, Mexico; Austin Toma Grupee, 43, of Providence, Rhode Island; and Jose Chavez Zaragoza, 38, of Yuma, Arizona, participated in the drug trafficking conspiracy to distribute the controlled substances. The defendants were arrested in the United States.
According to the Drug Enforcement Administration’s (DEA) National Drug Threat Assessment, the Sinaloa Cartel is at the heart of the fentanyl crisis. The cartel has developed global supply chain networks and operate clandestine labs in Mexico where they manufacture these drugs and then utilize their vast distribution networks to transport the drugs into the United States. Fentanyl is the deadliest drug threat the United States has ever faced, killing 38,000 Americans in the first six months of 2023 alone. Just one fentanyl pill can kill. Two milligrams of fentanyl is considered a potentially fatal dose and laboratory testing indicates seven out of 10 pills seized by the DEA contain a lethal dose of fentanyl.
“The significant sentences imposed by the court reflect the deadly nature of the crimes committed by Mexican cartel members in flooding our communities with fentanyl and other lethal drugs,” said Deputy Attorney General Lisa Monaco. “Our law enforcement officers work across the U.S. and around the globe to combat the cartels’ firearms and drug trafficking, which wreak so much violence and devastation in our communities.”
“Guns and drugs are often linked, particularly when it comes to the cartels,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF is committed to working with all our partners to hold accountable those who spread poison in our streets and arm those who supply that poison. This case exemplifies the incredible work going on every day by ATF agents and analysts around the country to protect the American public from dangerous criminals.”
“When you consider the quantity of drugs being trafficked and the deleterious impact illicit narcotics have on our community, it is readily apparent that these defendants sold drugs for the sole purpose of profiting off a public health crisis — addiction,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The fentanyl epidemic, to include here in south Florida, has caused a deafening silence as thousands of people have overdosed and died. We commend our partner agencies, as we work collectively to prosecute the members and associates of cartels that fuel the drug poisoning crisis and traffic in firearms.”
From June 2022 through May 2023, Apodaca-Alvarez, who was previously convicted of narcotics trafficking-related offenses in three federal districts prior to his arrest in this case, used the U.S. mail and his own trucking business to send tens of thousands of pressed fentanyl pills and kilogram-quantities of fentanyl, methamphetamine, and cocaine to an undercover agent based in South Florida. The undercover agent also conducted narcotic and monetary transactions with Apodaca-Alvarez and codefendants in California, Arizona, and Massachusetts. Apodaca-Alvarez told the undercover agent he was coordinating directly with members of the Sinaloa Cartel to facilitate the large-scale distribution of narcotics and stated that the potency of the pressed fentanyl pills that he sold “was dropping people everywhere.” Apodaca-Alvarez worked directly with Ismael “El Mayo” Zambada Garcia, a co-founder of the Sinaloa Cartel.
During the conspiracy, Apodaca-Alvarez coordinated with the remaining codefendants to assist in distributing the controlled substances throughout the United States, including in Arizona, California, Florida, Kentucky, Massachusetts, Rhode Island, Texas, and Virginia.
Law enforcement officers identified Roque Bustamante, nicknamed the “Skittles Man,” due to his distribution of rainbow-colored fentanyl pills, as Apodaca-Alvarez’s primary source of supply. In recorded conversations, Apodaca-Alvarez and Roque Bustamante inquired if the undercover agent would supply them with firearms, including .50 caliber high powered rifles to be smuggled into Mexico.
Apodaca-Alvarez was ultimately arrested in South Florida while delivering 16 kilograms of fentanyl and 2 kilograms of cocaine to the undercover agent during an undercover operation. Moreno was present with Apodaca-Alvarez during the arrest operation.
In total, law enforcement seized approximately 21 kilograms of pure fentanyl; 70 thousand rainbow-colored, pressed fentanyl pills; 3,000 M30 pressed fentanyl pills, blue in color; 243 pounds of crystal methamphetamine; two kilograms of cocaine; and 24 firearms (including 18 rifles and six pistols) related to this conspiracy.
Seized rainbow-colored, pressed fentanyl pills. Photo was introduced into the court record during Tejada Velasquez’s sentencing hearing on May 15.Tejada Velasquez was sentenced yesterday to 242 months in prison.
On May 2, Roque Bustamante was sentenced to life in prison, Grupee was sentenced to 262 months in prison, and Chavez was sentenced to 57 months in prison.
On March 21, Apodaca-Alvarez was sentenced to life in prison, Moreno was sentenced to 121 months in prison, and Zaragoza was sentenced to 47 months in prison. In addition, Apodaca-Alvarez agreed to the forfeiture of his entire trucking business and Arizona-based residence.
The ATF Miami Field Division* investigated the case, with assistance from DEA, Homeland Security Investigations Miami, Broward Sheriff’s Office, ATF Los Angeles* Field Division, U.S. Marshals Service, and U.S. Postal Inspection Service.
Assistant U.S. Attorneys Ajay J. Alexander, M. Catherine Koontz, and Brooke Latta for the Southern District of Florida and Assistant U.S. Attorney Addison Owen for the District of Arizona prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
*This has been updated to reflect the correct ATF Field Divisions.
Secret Service Seizes a Web Domain Used in Furtherance of a Cryptocurrency “Pig Butchering” SchemeRead the Press Release
ALBANY, NEW YORK – The U.S. Secret Service has seized a web domain used in a recent cryptocurrency confidence crime known as “pig butchering.”
United States Attorney Carla B. Freedman; William Mancino, Special Agent in Charge, Criminal Investigative Division of the U.S. Secret Service; and James Bensley, Resident Agent in Charge of the U.S. Secret Service’s Albany Resident Office, made the announcement.
In pig butchering schemes, scammers encounter victims through a variety of ways, including on dating applications and social media websites, and even random text messages masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scheme running fraudulent cryptocurrency investment platforms, where victims are persuaded to invest money. Once the money is sent to the fake investment application, the scammer vanishes, taking all the money with them, often resulting in significant losses for the victim.
According to court records, between about August 2022 and July 2023, scammers induced a Warren County victim to wire monies to the now-seized domain OKEX-NFT.net. The scammers — using the confidence-building techniques described above — convinced the victim that he/she was investing in a legitimate cryptocurrency opportunity. After the victim transferred investments into the deposit addresses that the scammers provided in connection with the seized domain name, the victim’s funds were immediately transferred through numerous bank accounts in an effort to conceal the source of the funds. In total, the victim lost over $341,000.
Assistant U.S. Attorneys Elizabeth Conger and Rick Belliss represented the U.S. Attorney’s Office in this matter.
Related court documents and information are located on the online docket for the United States District Court for the Northern District of New York (available via www.pacer.gov), by searching for Case No. 24-MJ-00038 (DJS).
If you believe you are a victim of this type of scheme, please contact [email protected] or IC3.gov to file a report. Please provide detailed information in your report, including any purported investment websites visited, telephone numbers, email accounts, and social media profiles used by scammers, and any cryptocurrency addresses, transaction hashes, and dates of transactions. Your responses are voluntary. Based on the information provided, you may be contacted by the Secret Service or another law enforcement agency and asked to provide additional information.
This case is part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
Sacramento Man Indicted for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Anthony Coates, 28, of Sacramento, charging him with distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Coates distributed 1 pound of methamphetamine in March 2024 and 3 pounds of methamphetamine in April 2024.
This case is the product of an investigation by the Drug Enforcement Administration and the U.S. Postal Inspection Service, with assistance from the High-Intensity Drug-Trafficking Area Task Force. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case.
If convicted, Coates faces a maximum statutory penalty for each count of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pensacola Man Pleads Guilty to Threatening to Kill A Federal JudgeRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Stephen Jay Thorn (66, Pensacola) has pleaded guilty to interstate transmission of a threat to injure a Federal District Court Judge. Thorn faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, on October 24, 2022, Thorn, unhappy with a judicial opinion that he had read about online, made an interstate telephone call to the District Court Judge’s chambers. Thorn left a vulgar, obscenity-laden voicemail threatening to harm the judge as well as members of the judge’s immediate family.
This case was investigated by the United States Marshals Service. It is being prosecuted by Special Assistant United States Attorney Joe Wheeler III.
Oro Valley Man Indicted for Assaulting a Border Patrol Agent with a FirearmRead the Press Release
TUCSON, Ariz. – Erik Alberto Beal, 26, of Oro Valley, was indicted by a federal grand jury in Tucson on May 1, 2024, on two counts of Assault of a Federal Officer with a Dangerous Weapon, that is, a Firearm, and Brandishing a Firearm During a Crime of Violence.
The indictment alleges that, on April 11, 2024, in Nogales, Arizona, Beal assaulted a United States Border Patrol Agent with a firearm while the agent was on duty. Border Patrol agents were working near the United States-Mexico Border when a subject jumped the International Boundary Fence and ran onto a nearby property. The victim agent ran in search of the suspected undocumented non-citizen. During the search, Beal came out of a residence adjacent to the border fence and confronted the agent. Beal pointed his firearm, a Sig Sauer, Model P250, .45 caliber pistol, at the victim agent before eventually being subdued and arrested.
A conviction for Assault of a Federal Officer with a Dangerous Weapon carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. A conviction for Brandishing a Firearm During a Crime of Violence carries a mandatory minimum sentence of seven years up to life imprisonment, a fine of $250,000 or both.
An indictment 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, with the assistance of United States Customs and Border Protection’s Office of Professional Responsibility, is conducting the investigation in this case. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-24-02352-TUC-SHR
RELEASE NUMBER: 2024-064_Beal# # #
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.Orleans Parish Woman Pleads Guilty to Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHAVONDA CHAMBERS, age 43, of New Orleans, Louisiana pleaded guilty on May 14, 2024, before the Honorable Susie Morgan, U.S. District Judge, Eastern District of Louisiana, to defrauding her prior employer. Sentencing is set for September 10, 2024.
According to documents filed in federal court, SHAVONDA CHAMBERS was employed as a bookkeeper for a local business and was apprehended submitting false electronic payroll authorizations to an out-of-state payroll processing company. As a result of her false submissions, CHAMBERS was able to steal and fraudulently divert more than $2.5 million dollars from her employer to financial accounts she controlled.
The maximum penalty for the offense is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three years of supervised release, and a mandatory special assessment fee of one hundred dollars.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Nashville Man Indicted for Bank Robbery While on Supervised Release from Federal Prison for Two Other Bank Robbery ConvictionsRead the Press Release
NASHVILLE – A federal grand jury returned an indictment yesterday charging Jeremy Stacey Godwin, 44, of Nashville, Tennessee, with one count of bank robbery, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
According to the indictment and publicly available information, on April 9, 2024, Godwin entered a Truist Bank on Nolensville Pike in Nashville, and demanded money while threatening the use of a firearm. The bank teller gave Godwin approximately $2,400, then Godwin fled on foot. Godwin was arrested when a concerned citizen contacted law enforcement after seeing local media reports of the bank robbery which showed bank video images of the suspect.
At the time of the robbery, Godwin was on supervised release after serving his prison sentences for prior convictions in the Middle District of Tennessee of robbing a Sun Trust Bank in Nashville on September 3, 2016, and robbing a Chase Bank in Indianapolis, Indiana on September 8, 2017.
If convicted, Godwin faces up to 20 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and the Metro Nashville Police Department. First Assistant U.S. Attorney Thomas J. Jaworski is prosecuting the case.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Muskogee Resident Sentenced for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Karrie Michelle Brown, age 32, of Muskogee, Oklahoma, was sentenced to time served for one count of Distribution of Methamphetamine.
The charges arose from investigations by the Oklahoma Bureau of Narcotics and the Oklahoma State Bureau of Investigation.
On March 27, 2023, Brown pleaded guilty to one count of Distribution of Methamphetamine. According to investigators, Brown sold approximately 55.25 grams of methamphetamine on December 11, 2019.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee.
Assistant United States Attorney Joshua Satter represented the United States.
Muskogee Resident Pleads Guilty to Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Patrick Lamar Tims, Jr., age 22, of Muskogee, Oklahoma, pleaded guilty to an Information of one count of Robbery in Indian Country.
The Information alleged that on or about January 16, 2024, Tims took by force, violence, and intimidation, a thing of value, namely, United States currency, from a Family Dollar located in Muskogee, Oklahoma. The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, United States Magistrate Judge for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Tims was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Mexico Resident Arrested on Complaint Alleging She Drove Car Containing More Than 90 Pounds of Fentanyl Pills Stored in ItRead the Press Release
RIVERSIDE, California – A U.S. citizen living in Mexico is expected to make her initial appearance in federal court today on a criminal complaint alleging she possessed more than 90 pounds of fentanyl pills in her car, which was pulled over on Interstate 10 in Indio earlier this week.
Adriana Galindo, 34, of San Luis Río Colorado, Mexico, is charged in the complaint with one count of possession with intent to distribute a controlled substance.
Galindo is expected to make her initial appearance this afternoon in United States District Court in Riverside. The complaint was filed May 15.
According to an affidavit filed with the complaint, Border Patrol agents on May 14 were conducting vehicle stops along I-10 in the Indio area. Agents stopped a 2015 black Chevrolet Malibu in Indio. Galindo, accompanied by her juvenile son, was the car’s driver and she allegedly told agents they were driving to Los Angeles to purchase clothing for a retail store in Mexico and were planning to return home later that day.
Galindo consented to a search of the car, and a trained narcotics K-9 conducted a free-air sniff of the vehicle and alerted fellow law enforcement to the presence of narcotics odor, the affidavit alleges.
An initial search of the vehicle yielded a single blue pill of suspected fentanyl, the affidavit states. After seizing the vehicle to a nearby Border Patrol station for further search, law enforcement seized approximately 93.3 pounds (42.3 kilograms) of fentanyl pills were discovered in a non-factory compartment located under the car’s front seats. Agents then arrested Galindo. Her son was released to the custody of his aunt, a California resident.
A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Galindo would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
The Drug Enforcement Administration and United States Border Patrol are investigating this matter.
Assistant United States Attorney Danbee C. Kim of the General Crimes Section is prosecuting this case.
Memphis Men Plead Guilty to String of Arsons at Tax Service BusinessesRead the Press Release
Memphis, TN – Dantoni Colbert, 35, and Edward Matthews, Jr., 33, pled guilty to charges of conspiracy to commit arson, and arson of three separate tax service businesses. The arson crimes occurred in Memphis in February 2023. United States Attorney Kevin G. Ritz announced the guilty pleas today.
According to the information presented in court, on February 6 and 7, 2023, Colbert and Matthews conspired to set fire to three different buildings that were occupied by Washington Tax Services in the Memphis area.
On February 8, 2024, Matthews pled guilty to all four counts of the indictment before United States District Judge Thomas L. Parker. On May 15, 2024, Colbert also pled guilty as charged to all four counts before Judge Parker.
Both defendants face a mandatory minimum sentence of 5 years in prison and a maximum of up to 20 years in federal prison, plus up to a $250,000 fine, and up to 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Fire Department.
United States Attorney Ritz stated: “Arson is a dangerous crime that threatens the safety of the community—and in particular, the safety of first responders in our city. Individuals who commit arson of businesses in West Tennessee will continue to get the full attention of law enforcement.”
“The criminal act of arson poses an unnecessary risk to the citizens and the first responders of the city of Memphis as well as having a negative impact on the financial systems of the community,” said ATF Nashville Special Agent in Charge Marcus Watson. “Arson is used to intimidate, harm, or for criminal profit through fraudulent insurance proceeds. ATF is committed to protecting the public and will continue to vigorously investigate these criminal acts.”
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Greg Wagner and Stephen Hall, who are prosecuting this case, as well as law enforcement partners investigating the case.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates
Massachusetts Business Owner Arrested for over $18 Million PPP FraudRead the Press Release
BOSTON – A Carlisle man has been arrested and charged for allegedly submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of multiple companies he owns and controls.
Durgaprasad Rao, 65, was charged with two counts of wire fraud. Rao was arrested yesterday and will make an initial appearance in federal court in Boston at 2 p.m. this afternoon. He remains in custody pending a detention hearing scheduled for May 17, 2024.
According to the charging documents, Rao is the owner and operator of Accelerated Engineering, LLC., a product engineering service provider, and Upstream Global Services, Inc., a software company that provides software consulting services and temporary staffing needs.
It is alleged that, between April 2020 and May 2021, Rao submitted numerous fraudulent applications seeking over $18 million in PPP funds for various companies in multiple states including companies in Massachusetts, Wisconsin and Georgia. Nine of the fraudulent PPP loan applications Rao allegedly submitted were for companies he owned and controlled. For Rao’s Massachusetts-based companies, he received nearly $7 million in PPP loans – of which, $1.5 million was approved for forgiveness.
Rao’s PPP loan applications allegedly contained false statements regarding payroll and the number of employees that worked for his companies and included fraudulent supporting documents, including false tax return documents and false payroll records. It is further alleged that Rao misused the funds he received by, among other things, transferring the funds to foreign businesses he owned and purchasing a luxury condominium in New York City.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Carlisle Police Chief Andrew Amendola made the announcement today. Assistant U.S. Attorneys Brian Sullivan and David Tobin of the Major Crimes Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Pleads Guilty to Multi-Million Dollar Scheme to Defraud ConsumersRead the Press Release
PEORIA, Ill. –Jeffrey D. Gibbs, 58, of Farmer City, Illinois pleaded guilty on May 14, 2024, to 6 felony charges related to his scheme to defraud local boat owners and the banks that financed his business.
Gibbs and co-defendant Kara M. Wilkey, 49, of Maroa, Illinois, were indicted in December 2020, with multiple counts of wire fraud, bank fraud, mail fraud and aggravated identity theft. Wilkey pleaded guilty to 6 of the charges in August 2021. Sentencings for both Gibbs and Wilkey have been scheduled for September 19, 2024, at 9:00 am in the U.S. Courthouse in Peoria, Illinois before U.S. District Judge James E. Shadid.
Gibbs and Wilkey were two employees of the now defunct boat and watercraft dealership, Mid Illinois Boats, Inc., that did business as Clinton Marine II. Gibbs and Wilkey used the dealership to defraud customers and lending institutions out of approximately $4.7 million.
In pleading guilty, Gibbs and Wilkey admitted that, from January 2014 to July 2019, they used their positions with Clinton Marine II, which included management of day-to-day operations, to carry out a fraud involving floorplan financing. The fraud included obtaining loans on fictitious boats and on false transactions; taking out loans using forged signatures; selling boats on behalf of customers, but not paying off the customer’s loan or remitting payment to the seller; and, collecting payment for taxes, titles, and fees, but failing to pay those expenses.
Both Gibbs and Wilkey were released on statutory conditions of release pending sentencing.
Gibbs plead guilty to 3 counts of wire fraud, 2 counts of mail fraud and 1 count of aggravated identity theft. He faces total statutory penalties of up to 102 years’ imprisonment, a fine of $1,250,000, or twice the loss to the victims, and up to 4 years’ supervised release upon completion of imprisonment.
Wilkey pleaded guilty to 3 counts of wire fraud, 2 counts of bank fraud and 1 count of aggravated identity theft. She faces total statutory penalties of up to 122 years’ imprisonment, a fine of $3,000,000, or twice the loss to the victims, and up to 5 years’ supervised release upon completion of imprisonment.
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, with the assistance of the DeWitt County Sheriff’s Office; the Illinois Department of Natural Resources; and the Illinois Secretary of State. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the case prosecution.
Man Charged with Murder in Relation to Methamphetamine TraffickingRead the Press Release
A California man made his initial appearance in the District of Hawaii today to face charges related to his role in the murder of another man in connection with drug trafficking.
According to court documents, on March 27, 2021, Filimone Tavake, 36, of San Francisco, allegedly killed a Hawaii resident at the victim’s home in connection to a drug distribution conspiracy. Tavake was arrested on March 22 in California.
Tavake is charged with carry, use and discharge of a firearm during and in relation to a drug trafficking crime; causing the death of a person through use of a firearm; killing while engaged in conspiracy to distribute and possess with intent to distribute methamphetamine; and conspiracy to distribute and possess with intent to distribute methamphetamine. If convicted, Tavake faces a mandatory minimum sentence of 20 years in prison and a maximum penalty of life in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Clare E. Connors for the District of Hawaii; Special Agent in Charge Steven Merrill of the FBI; and Chief Arthur “Joe” Logan of the Honolulu Police Department made the announcement.
The FBI and Honolulu Police Department are investigating the case.
Trial Attorney Christina Taylor of the Criminal Division’s Violent Crime and Racketeering Section and the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Admits Phelps County Carjacking and Gun Store BurglaryRead the Press Release
ST. LOUIS – A Phelps County, Missouri man on Thursday admitted carjacking someone at knifepoint in 2023 and stealing pistols from a gun store.
Martavious Jones, 19, pleaded guilty to one carjacking charge and a charge of stealing a firearm from a federally licensed dealer. He admitted that on Sept. 11, 2022, he and another person broke a window at a Rolla gun store to get inside. They stole four handguns, including an AR-style pistol, as well as a large quantity of ammunition and firearm accessories. Two of the guns were later found in a bag near Jones’ home.
Jones also admitted that on March 1, 2023, in Rolla, he asked a man for a ride in his 2013 Nissan Altima. The driver agreed. Once they were moving, Jones pulled out a large knife and held it to the driver’s throat. He told the victim to turn over his keys and get out the car. Jones took the driver’s cell phone, telling him he would drop it out of the window before driving away. Jones did, but also dropped his own phone. He was later spotted by police and fled in the car before fleeing on foot. He left his wallet and the knife behind.
Jones is scheduled to be sentenced on August 21. The carjacking charge carries a penalty of up to 15 years in prison, a fine of up to $250,000 or both prison and a fine. The stealing charge carries a penalty of up to 10 years in prison, a $250,000 fine, or both.
The Rolla Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Luzerne County Man Charged with Threatening to Murder the PresidentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jordan Gee, age 37, of Nanticoke, Pennsylvania, was indicted by a federal grand jury on charges of threats against the President and interstate communications with a threat.
According to United States Attorney Gerard M. Karam, the indictment alleges that Gee posted several videos on the Internet shortly before President Joseph Biden’s visit to Scranton, Pennsylvania, for a campaign event on April 16, 2024. In those videos, Gee made several threats to the President and others, including, “Joe Biden: I’m going to kill you and your whole cabinet,” and, “If you come to my city in Scranton, Pennsylvania, I’m cutting your f**king head off in front of everybody; I promise.”
This matter is being investigated by the United States Secret Service. Assistant United States Attorney Kyle A. Moreno is prosecuting the case.
The maximum penalty under federal law for these offenses is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Louisville Woman Sentenced to over 1 Year in Federal Prison for CARES Act FraudRead the Press Release
Louisville, KY – A Louisville, Kentucky, woman was sentenced yesterday to 1 year and 2 months in federal prison for charges related to her submission of four fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, made the announcement.
According to court documents, Darlene McCoy, 67, was sentenced to 1 year and 2 months in prison, followed by a 3-year term of supervised release, for four counts of wire fraud, one count of bank fraud, and two counts of money laundering related to fraud involving the CARES Act financial assistance program.
There is no parole in the federal system.
McCoy was also ordered to pay $165,416 in restitution.
McCoy filed, or caused to be filed, one fraudulent application for an Economic Injury Disaster Loan (EIDL) and three applications for Paycheck Protection Program (PPP) loans between June 18, 2020, and May 19, 2021, seeking more than $182,000 and resulting in the theft of $165,416. McCoy utilized the entities Letz Get It Crackin’, LLC and Darlene McCoy d/b/a Reds Creative Events to file the applications. McCoy organized Letz Get It Crackin’ after the onset of the Covid 19 pandemic and did not register the entity Darlene McCoy with the Commonwealth of Kentucky. McCoy falsely exaggerated the number of employees, revenue, cost of goods sold, and payroll expenses of those entities in the fraudulent applications and provided false tax forms in support of the applications.
This case was investigated by the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorney Nicole Elver prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Laredoan sent to prison for producing child pornography of sexual abuse of minor relativeRead the Press Release
LAREDO, Texas – A 26-year-old man has been ordered to prison for production and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Aaron Negrete pleaded guilty March 7, 2023.
U.S. District Judge Keith P. Ellison has now sentenced Negrete to 225 and months for the production and possession of child pornography convictions, respectively. They will run concurrently for a total 225-month-term of imprisonment. At the hearing, the court also heard additional information including testimony from the minor victim’s mother, detailing the impact of Negrete’s actions. In handing down the prison terms, the court noted severity of the his crimes. Negrete was further ordered to pay $30,000 in restitution to known victims of the child pornography possessed and will serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Negrete will also be ordered to register
“The homes of relatives are supposed to be safe places, especially for kids, but Aaron Negrete used his residence to harm his relative numerous times, committing the most heinous acts one can perpetrate on another, let alone a child," said Hamdani. "He filmed himself molesting the minor then shared the videos and images on the internet, extending the child’s victimization into perpetuity. Our hope is this significant sentence can give the victim some peace knowing Negrete is not lurking in anyone’s home, but instead behind bars for nearly 20 years to come.”
“The Aaron Negrete sentence today sets the tone for how we will handle child predators in our state,” said Special Agent in Charge Craig Larrabee, Homeland Security Investigations (HSI) San Antonio. “If you harm a child, we will investigate you, we will arrest you, and we will bring the full weight of the law against you. HSI urges our South Texas community to remain vigilant against child predators and to immediately report suspected cases of child exploitation to HSI.”
The investigation began when authorities learned an IP address associated with Negrete had uploaded child pornography online.
On Oct. 12, 2022, law enforcement executed a search warrant at his home. At that time, they found and seized several electronic devices which contained child pornography and took Negrete into custody. He ultimately admitted to downloading an application he used to search for child pornography which included abuse of babies and toddlers.
The investigation further revealed he had sexually abused a minor relative. He recorded himself doing so and shared the recordings and photographs online. The child had visited Negrete and stayed at his residence in Laredo. On more than 50 instances, Negrete forced the victim to rub his genitals and took naked pictures, among other things. The minor was told to keep it a secret to prevent “something bad” from happening.
Negrete will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department as part of the Child Exploitation Task Force which also includes FBI, Texas Department of Public Safety, U.S. Marshals Service and United Independent School District Police.
Assistant U.S. Attorney Michael Makens prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Kansas woman sentenced for drug conspiracy crimesRead the Press Release
TOPEKA, KAN. – A Kansas woman was sentenced to 20 years in prison after being found guilty of multiple charges related to drug trafficking.
According to court documents, a federal jury convicted Theresa Hight, 60, of Topeka, of one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of maintaining a drug-involved premises, and two counts of distribution of a controlled substance. The jury found Hight not guilty of one count of distribution and posses with the intent to distribute controlled substances.
Three additional co-defendants pled guilty in the case. Shelli Lynn Zarazua, 59, of Topeka pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances. On May 1, 2024, Zarazua was sentenced to 120 months in prison.
Anabell Madrigal, 58, of Chula Vista, California, pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances and on April 24, 2024, was sentenced to 24 months in prison.
Allen Joseph Baker, 45, of Topeka pled guilty to one count of conspiracy to distribute and possess with the intent to distribute controlled substances and on May 1, 2024, was sentenced to 105 months in prison.
In March 2021, law enforcement officers received information that a courier was scheduled to drop off illegal narcotics at Hight’s residence in Topeka. While conducting surveillance, officers observed Madrigal arrive at the house. After a short time inside, Madrigal, Zarazua, Hight, and Baker all left in separate vehicles. Officers conducted traffic stops on each of the suspects. They found a pound of methamphetamine on Baker’s person as well as 17 bundles of methamphetamine in his vehicle. Hight had an ounce of methamphetamine and digital scales. Officers discovered three bundles of cash concealed in the panels of Madrigal’s vehicle. The total weight delivered on this occasion was approximately 20 pounds. Officers learned this was the second delivery which occurred at Hight’s residence.
The Shawnee County Sheriff’s Office and the Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorneys Lindsey Debenham and Sara Walton prosecuted the case.
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Justice Department Submits Proposed Regulation to Reschedule MarijuanaRead the Press Release
The Justice Department today announced that the Attorney General has submitted to the Federal Register a notice of proposed rulemaking initiating a formal rulemaking process to consider moving marijuana from a schedule I to schedule III drug under the Controlled Substances Act (CSA).
Marijuana has been classified as a schedule I drug since Congress enacted the CSA in 1970. On Oct. 6, 2022, President Biden asked the Attorney General and the Secretary of Health and Human Services (HHS) to launch a scientific review of how marijuana is scheduled under federal law. After receiving HHS’s recommendations last August, the Attorney General sought the legal advice of the Justice Department’s Office of Legal Counsel (OLC) on questions relevant to this rulemaking. In light of HHS’ medical and scientific determinations, and OLC’s legal advice, the Attorney General exercised his authority under the law to initiate the rulemaking process to transfer marijuana to schedule III.
The rescheduling of a controlled substance follows a formal rulemaking procedure that requires notice to the public, and an opportunity for comment and an administrative hearing. This proposal starts the process, where the Drug Enforcement Administration will gather and consider information and views submitted by the public, in order to make a determination about the appropriate schedule. During that process, and until a final rule is published, marijuana remains a schedule I controlled substance.
The notice of proposed rulemaking submitted by the Department can be viewed here, and the OLC memorandum regarding questions related to the potential rescheduling of marijuana can be found here.
Learn more about the rulemaking process here.
Justice Department Secures Agreement with Shelby County, Tennessee, District Attorney General to Cease Enforcement of State Law that Discriminates Against People with HIVRead the Press Release
The Justice Department announced today that the Shelby County, Tennessee, District Attorney General (DA) has agreed to cease prosecution of individuals living with human immunodeficiency virus (HIV) under Tennessee’s aggravated prostitution law. The DA will also adopt reforms to correct discrimination against people living with HIV who were subjected to discriminatory and harsher penalties under the law.
This agreement resolves the Justice Department’s finding that the Shelby County DA violated the Americans with Disabilities Act (ADA) by enforcing Tennessee’s aggravated prostitution law that imposed enhanced criminal penalties based on a person’s HIV status. The prosecutions were carried out without consideration of risk of transmitting HIV, and the harsher penalties included being charged with a felony (as opposed to a misdemeanor) and being required to register for life as a sex offender.
“Living with HIV is not a crime and the continued enforcement of laws that criminalize a person based on their HIV status, regardless of risk, perpetuate bias, stereotypes and ignorance about HIV,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are pleased that Shelby County District Attorney has agreed to cease enforcement of this discriminatory law, and that future prosecution decisions will reflect the significant advances made in HIV prevention and treatment, consistent with the ADA.”
Under this agreement, the DA will not prosecute individuals under the aggravated prostitution law or for violations of the sex offender registry requirements that have resulted from prior convictions under that law. The DA will also notify anyone eligible of their ability to petition for vacatur of their convictions, termination of the remainder of their sentences and elimination of fees owed.
This agreement also requires the Shelby County DA to adopt policies and train prosecuting attorneys on the ADA’s anti-discrimination requirements relating to HIV, a disability under the ADA. Under the agreement, the DA will also report its compliance with the agreement to the department.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Justice Department Announces Arrest, Premises Search, and Seizures of Multiple Website Domains to Disrupt Illicit Revenue Generation Efforts of Democratic People’s Republic of KoreaRead the Press Release
The Justice Department today announced a series of coordinated and court-authorized actions to disrupt the illicit revenue generation efforts of Democratic People’s Republic of Korea (DPRK) information technology (IT) workers. As part of a Department-wide initiative – the DPRK RevGen: Domestic Enabler Initiative – the Department will continue to prioritize high-impact, strategic, and unified enforcement and disruption operations across the U.S. Government targeting U.S.-based enablers of unlawful DPRK IT workers overseas. Today’s announcement follows successful Department-led action in October 2023 which targeted similar and related conduct.
Under the Initiative, launched in March 2024 by the National Security Division and FBI Cyber and Counterintelligence Divisions, Department prosecutors and agents are prioritizing:
- The identification and shuttering of U.S.-based “laptop farms” (i.e., locations hosting laptops provided by victim U.S. companies to individuals they believed were legitimate U.S.-based freelance IT workers);
- Investigations and prosecutions of U.S.-based witting enablers, as appropriate;
- International partnerships with like-minded countries that also host IT worker support networks;
- Improved speed, tempo, and content of notifications to victims, primarily unwitting U.S. companies; and
- Enhanced partnerships with private sector online service providers, including in terms of identifying IT worker infrastructure and personas, improving the providers’ in-house fraud detection methods, and educating compliance personnel and the public regarding the threat (see e.g., May 2022 and October 2023 advisories, as well as a new advisory released today by the FBI).
“Today’s announcement reveals the complex web of deception and facilitators that is central to the North Korean regime’s schemes to evade international sanctions to finance its weapons program,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The disruptions announced today represent a focused and continuing effort to dismantle these illicit networks and thereby prevent North Korean IT workers from victimizing unwitting U.S. companies. Through such sustained campaigns against this threat, the Department will continue to enhance our collective national security and cybersecurity.”
“The FBI and its partners are committed to leveraging everything at our disposal to disrupt North Korean IT workers from subverting the rule of law in order to fund the DPRK’s weapons of mass destruction program,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We will continue our work of maintaining order in the cyber space and preventing bad actors from taking advantage of it for their strategic geopolitical objectives.”
As alleged in court documents, the DPRK government dispatched thousands of skilled IT workers to live abroad, primarily in China and Russia, with the aim of deceiving U.S. and other businesses worldwide into hiring them as freelance IT workers, to generate revenue for its weapons of mass destruction (WMD) programs. The DPRK IT workers’ scheme involved the use of pseudonymous email, social media, payment platform and online job site accounts, as well as false websites, proxy computers, and witting and unwitting third parties located in the United States and elsewhere. As described in a May 2022 tri-seal public service advisory released by the FBI, Department of the Treasury and Department of State, such IT workers have been known individually earn up to $300,000 annually, generating hundreds of millions of dollars collectively each year, on behalf of designated entities, such as the North Korean Ministry of Defense and others directly involved in the DPRK’s UN-prohibited WMD programs.
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Consistent with the goals of this initiative and prior to its inception, the District of Maryland led enforcement actions against Minh Phuong Vong of Bowie, Maryland, who was arrested this morning for his alleged participation in a scheme to assist overseas IT workers – posing with his identity – in working at U.S. companies in remote IT positions. Earlier this week, the FBI executed a premises search at Vong’s residence.
Separately, the Eastern District of Missouri led a seizure action against 12 website domains used by DPRK IT workers to mimic western IT services firms to support the bona fides of their attempts to secure remote work contracts for U.S. and other businesses worldwide.
“The alleged schemes likely benefitted the Democratic People’s Republic of Korea in evading U.S. sanctions and victimizing American businesses,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “By stealing the identities of American citizens to commit fraud, they obtained proceeds which likely helped fund the North Korean regime’s priorities including nuclear weapons programs. The FBI and our partners are committed to rooting out insidious efforts that undermine our economic and national security.”
Vong Premises Search, Complaint, and Arrest – District of Maryland
As part of an investigation pre-dating the initiative, Vong was arrested today and charged by criminal complaint with conspiracy to commit wire fraud.
According to the criminal complaint, Vong and other conspirators engaged in a scheme to fraudulently gain employment at companies located in the United States. These U.S. companies provided information technology services, including software development services, to the U.S. government. While Vong was nominally employed by these U.S. companies, he was not in fact the individual performing work for them. Remote IT workers based overseas instead posed as Vong and performed Vong’s job duties.
According to the affidavit in support of the criminal complaint, in March 2023, as part of Vong’s hiring process with a U.S. company, the Chief Executive Officer of the U.S. company conducted a video call with Vong where he verified Vong’s identity with a U.S. passport and Maryland driver’s license. A different individual, however, had appeared for an earlier interview for the position and later for work meetings during the course of Vong’s employment. That individual, charged as a John Doe defendant in the criminal complaint, is a native of North Korea and a self-described software developer who claimed to be living in Shenyang, China.
As alleged in the complaint, throughout the course of Vong’s employment with U.S. company, remote IT workers based overseas performed Vong’s job duties by accessing protected victim computer systems via remote internet connections and posing as Vong on work-related videoconferences. Vong also shipped one or more laptops to an address in China. Vong also received payment from U.S. Company and other employers, which he then transmitted to individuals located overseas, keeping a percentage for himself.
The FBI Baltimore Field Office is investigating the case.
Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland is prosecuting the case with valuable assistance provided by Trial Attorney Alexandra Cooper-Ponte of the National Security Division’s National Security Cyber Section.
Fraudulent DPRK IT Work Website Seizures – Eastern District of Missouri
On May 15, pursuant to a court order issued in the Eastern District of Missouri, the Department seized 12 website domains used by DPRK IT workers to hide their true identities and locations when applying to do remote work for U.S. and other businesses worldwide. The specific group of DPRK IT workers who created these domains work for the PRC-based Yanbian Silverstar Network Technology Co. Ltd. and the Russia-based Volasys Silver Star, both of which were sanctioned in 2018 by the Department of the Treasury. These IT workers funneled income from their fraudulent IT work back to North Korea using online payment services and Chinese bank accounts.
“Shutting down these websites is just one of the ways we are working to disrupt the flow of money to the North Korean weapons program,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “The business community can do their part by carefully vetting their online hires.”
The 12 website domains seized yesterday, partial images of which are included in the unsealed affidavit, were designed to appear as domains of legitimate, U.S.-based IT services companies located in Portland, Oregon; Houston; Lancaster, Pennsylvania; Oklahoma City; Indianapolis; New York; and Richmond, Virginia. Three of the entities that claimed to own these domains were officially registered in Wyoming. The website contents included a variety of designed to entice potential victims, such as claims that the firms assisted hundreds of “happy clients” including Fortune 500 companies (potentially a fictitious claim) and completed hundreds of projects over thousands of work hours. Other websites included claims of having helped clients benefit from new technologies, such as artificial intelligence and machine learning, “blockchain solutions,” cloud computing skills, and internet of things knowledge.
However, the website domains also included indicia that should have aroused suspicion about their bona fides. For example:
- The phone numbers used to register these domains, or advertised as belonging to these businesses, did not have area codes that corresponded with the locations where these businesses claimed to have offices;
- Some of the addresses listed were homes, versus office buildings;
- The content included disjointed phrases that appeared to be attempts at inspirational quotes – e.g., “Nor, moreover, is there anyone who loves pain because it is pain, pursues it, wants to gain it, but;” and
- Awkward promotional phrases such as “here are our main features & many more features.”
The National Security Division’s National Security Cyber Section and the U.S. Attorney’s Office for the Eastern District of Missouri are investigating this case. The FBI St. Louis Field Office conducted the investigation, with the assistance of the FBI Cyber Division.
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The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
Concurrent with today’s announcement and consistent with the initiative’s goals, two additional criminal prosecutions in the District of Columbia were unsealed today, resulting in two arrests and the execution of related seizures and search warrants in multiple jurisdictions. Both prosecutions reflect investigations that predate the initiative’s inception. Arizona woman Christina Marie Chapman was arrested on May 15 and three foreign nationals were charged on May 8 in connection with a similar IT worker scheme associated with North Korea. As part of this case, the U.S. Attorney’s Office seized wages earned by more than 19 overseas IT workers and will seek their forfeiture. Additionally, the District of Columbia charged Ukrainian national Oleksandr Didenko for similar conduct. As alleged, Didenko created fake accounts at U.S. IT job search platforms and with money service transmitters. Didenko was arrested in Poland on May 6 pursuant to an arrest warrant from the United States.
The U.S. Department of State has offered potential rewards for up to $5 million in support of international efforts to disrupt North Korea’s illicit financial activities, including for certain information related to individuals who are sent outside of North Korea to work to generate money for the North Korean government or who facilitate the activities of such North Korean nationals.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
EDMO seizure applicationJamestown man going to prison for more than 19 years for selling heroin and fentanyl which resulted in two deathsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven Mojica Medina, 36, of Jamestown, NY, who was convicted of possession with intent to distribute, and distribution of, heroin, fentanyl, and acetyl fentanyl, and being a felon in possession of a firearm and ammunition, was sentenced to serve 235 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on August 30, 2018, an individual identified as J.H., fatally overdosed after ingesting a substance containing fentanyl, and acetyl fentanyl. Medina provided J.H. with the fentanyl and fentanyl analogue mixture shortly before J.H. died. Approximately a week later, on September 9, 2018, an individual identified as J.T. fatally overdosed after ingesting a substance containing heroin, fentanyl, and acetyl fentanyl. Medina provided the substance to a third party who then provided it to J.T.
On December 1 and 2, 2020, the Jamestown Police Department conducted controlled purchases of heroin and fentanyl from Medina. Subsequently, a search warrant was executed at Medina’s Euclid Avenue residence during which investigators recovered two loaded firearms, a drug ledger, 48 bags of fentanyl weighing 1.76 grams, and cocaine. On November 1, 2021, Medina was pulled over in his vehicle by the Jamestown Police Department. Officers recovered a 9mm semi-automatic pistol, six magazines and approximately 167 rounds of 9mm ammunition. Medina also had 24 wrapped baggies of crack cocaine weighing 3.8 grams. In July 2015, Medina was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Hospice Owner Sentenced to 240 Months Imprisonment and Ordered to Repay $42,000,000 for Defrauding MedicareRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on May 15, 2024, U.S. District Judge Lance Africk sentenced SHIVA AKULA (“AKULA”), age 68, of New Orleans, to 240 months of imprisonment, three years of supervised release and $2,300 in mandatory special assessment fees, in relation to an extensive health care fraud scheme orchestrated by AKULA. In November 2023, a federal jury convicted AKULA of all 23 counts of his underlying indictment. AKULA owned and oversaw the day-to-day operations of Canon Healthcare, LLC, a hospice facility with offices in the New Orleans area, Baton Rouge, Covington, and Gulfport, Mississippi. At sentencing, the Court found that between January 2013 and December 2019, Canon billed Medicare approximately $84 million in fraudulent claims and was paid approximately $42 million relating to these fraudulent claims. The Court ordered that AKULA repay the $42 million of fraudulent proceeds back to Medicare.
On November 6, 2023, a jury convicted AKULA on all 23 counts of health care fraud charged in the indictment relating to overbilling for hospice patients for expensive General Inpatient (“GIP”) services and for multiple counts related to manipulating Medicare billing codes, known as Common Procedural Terminology (“CPT”) codes despite such services being medically unnecessary, or despite their inclusion in the daily hospice benefit Canon already received for its patients.
“Today’s sentencing signals the end of a long, complicated, and challenging prosecution,” said U.S. Attorney Duane A. Evans. “However, this conclusion exhibits our commitment to fighting health care fraud in our district. Our office, along with our investigative partners, will continue to work diligently to preserve taxpayer confidence in our medical institutions and seek justice for all victims of fraud.”
“Shiva Akula showed no regard for quality end-of-life hospice care,” said Jason E. Meadows, Special Agent in Charge at the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “Instead, Akula’s motivation centered around multiple fraud schemes to maximize profit and steal from American taxpayers. HHS-OIG will continue to work with our federal and state law enforcement partners and the U.S. Attorney’s Office to hold accountable those who steal from Medicare and other federal health care programs.”
“Each fraudulent claim filed by Mr. Akula potentially deprived another deserving and suffering individual from the emotional and physical comfort of end-of-life care,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Division. “The FBI thanks its partners the US Attorney's Office for the Eastern District, HHS, and Louisiana's Medicaid Fraud Control Unit for their painstaking work to ensure that justice would be done in this case.”
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. Assistant U.S. Attorneys Kathryn McHugh, Financial Crimes Unit, and J. Ryan McLaren, Appellate Unit, are in charge of the prosecution, with assistance from Financial Litigation Coordinator, Assistant U.S. Attorney Churita Hansell of the Monetary Penalty and Recovery Unit.
Helena man sentenced to prison for trafficking fentanyl purchased on dark web using cryptocurrencyRead the Press Release
HELENA — A Helena man who admitted buying fentanyl on the dark web using cryptocurrency and distributing some of it while using the rest was sentenced on May 13 to 15 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, Jarek William Hahn, 30, pleaded guilty in December 2023 to possession with intent to distribute fentanyl.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that between December 2022 and December 2023, Hahn obtained fentanyl in the mail after arranging its purchase on illicit internet sites on the dark web. Hahn then used some of it and sold some to support his habit. Hahn used sophisticated means to seek out illicit sites on the internet’s dark web, which are unindexed sites on the internet that require special internet browsers to access. He then accessed a site where he purchased fentanyl using cryptocurrency and had it delivered in the mail. In a search of Hahn’s home, law enforcement recovered 64 fentanyl pills.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The FBI, Missouri River Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Postal Inspection Service conducted the investigation.
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Grand Jury Indictment Unsealed Against Milwaukee Man Charged with Sex Trafficking a MinorRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced today the unsealing of an indictment that charges Stelio Kalkounos, 51, Milwaukee, Wisconsin, with sex trafficking of a minor and producing child pornography. The indictment was returned by a federal grand jury sitting in Madison, Wisconsin, on May 15, 2024. The indictment was unsealed today following Kalkounos’ arrest.
The indictment alleges that from July 16, 2023, to March 1, 2024, Kalkounos recruited, enticed, and obtained a minor, knowing she would be caused to engage in commercial sex acts. The indictment further alleges that on November 20, 2023, Kalkounos used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
Kalkounos was arrested yesterday at a hotel in Hollywood, Florida, and made his initial appearance in U.S. District Court for the Southern District of Florida. He is currently being held at the Broward County Jail until he is transported to U.S. District Court in Madison for further proceedings.
If convicted, Kalkounos faces a minimum penalty of 10 years and a maximum of life in prison on the sex trafficking charge. He faces a minimum of 25 years and a maximum of 50 years in prison on the production charge.
The FBI is asking anyone with information about Stelio Kalkounos to contact the FBI in Milwaukee at 414-276-4684, option 7. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
The charges against Kalkounos were the result of an investigation by the FBI Madison Field Office. FBI Tampa and Miami Field Offices and the Seminole Police Department in Florida provided assistance in arresting Kalkounos. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Former enlistee admits to theft from U.S. ArmyRead the Press Release
HOUSTON – A 26-year-old man has pleaded guilty to selling stolen government property, announced U.S. Attorney Alamdar S. Hamdani.
Tamoshion Rucker previously served in the U.S. Army from 2018 to 2022 as a radio and communications security repairer and was a former member of the U.S. Army Reserves.
As part of his plea, Rucker admitted he attempted to sell Image Intensifier Tubes (IITs) for personal gain. Manufacture of IITs fulfill government contracts which are not available or authorized for sale to the public.
The investigation began in December 2022 when authorities attempted to retrieve stolen IITs Rucker posted for sale on eBay.
To safeguard this technology and equipment, IITs require demilitarization at the end-of-life cycle use. The instructions allegedly involve striking them with a ball peen hammer, ensuring destruction and that disposal of the fragments are made in accordance with hazardous waste guidelines. IITs cannot be resold or otherwise transferred to anyone after already being used.
Rucker agreed to sell five IITs for $3,000. After the transaction, Rucker then also agreed to exchange the remaining 50 IITs for an additional $32,000. Authorities detained Rucker later that day carrying a box containing 45 IITs bearing contract numbers. The total estimated value of all recovered IITs exceeds $103,000.
U.S. District Judge David Hittner accepted the plea and has set sentencing for Aug. 8. At that time, he faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI and Army Criminal Investigative Division conducted the investigation with assistance from Texas Department of Public Safety. Assistant U.S. Attorney Carolyn Ferko is prosecuting the case.
Former State Official Indicted, Arrested for School Construction Extortion and Bribery SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the FBI, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a 22-count indictment charging KONSTANTINOS “KOSTA” DIAMANTIS, 67, of Farmington, with extortion, bribery, conspiracy, and false statement offenses related to his conduct as director of Connecticut’s Office of School Constructions Grants and Review (“OSCGR”), the state agency responsible for the grant administration of all Connecticut public school construction projects seeking state funding.
The indictment (link below) was returned yesterday, and Diamantis was arrested this morning. He appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford, pleaded not guilty to the charges, and was released on a $500,000 bond.
In addition, three related cases were unsealed today. On May 13, 2024, SALVATORE MONARCA, 53, of Durham, the president and director of Acranom Masonry, Inc. (“Acranom”), a masonry contractor located in Middlefield, and JOHN F. DUFFY, 63, of Westerly, Rhode Island, vice president of Acranom, each pleaded guilty to conspiring to bribe Diamantis to obtain masonry contracts on school construction projects. On May 14, 2024, ANTONIETTA ROY, 41, of Plainfield, the owner of Construction Advocacy Professionals, LLC (“CAP”), pleaded guilty to conspiring to bribe Diamantis to obtain business as a construction administrator on school construction projects.
The indictment alleges that Diamantis demanded and received bribes from Acranom, Monarca, and Duffy in connection with multi-million dollar school construction projects Diamantis supervised as director of OSCGR. In exchange for those bribes, and promises to pay bribes, Diamantis used his official position to assist Acranom to obtain and maintain contracts to perform masonry work for state-funded school construction project. Diamantis helped Acranom resolve a dispute on phase two of Hartford’s Weaver High School renovation project around 2018; obtain the contract for masonry work on phase four of the same project; and, in and around 2019, obtain the masonry contract for the emergency rebuild of the Birch Grove Primary School in Tolland. In numerous electronic messages recounted in the indictment, Diamantis, Duffy, and Monarca discussed their plan to pay Diamantis in exchange for his official action on behalf of Acranom. Diamantis also demanded payment in exchange for his actions, and threatened to remove Acranom as mason on the Weaver and Birch Grove projects if he was not paid. The indictment also alleges incidents where cash was provided by Acranom to Diamantis.
The indictment further alleges that Diamantis demanded and received bribes from Roy in her capacity as the owner of CAP. In exchange for those bribes, Diamantis used his official position to assist CAP in obtaining contracts to provide construction administrator and related services on state school construction projects, including a 2019 contract on the Birch Grove project in Tolland, a 2019 contract to assist New Britain in obtaining state reimbursement for school construction projects, and a 2019 contract related to the renovation project at Hartford’s Bulkeley High School. Roy paid Diamantis via cash and check, and hired Diamantis’s daughter at an inflated salary.
The indictment also alleges that on three different occasions in 2023, Diamantis made multiple false statements to FBI agents investigating this matter.
“Constructing and renovating schools is an important, and very expensive, endeavor for our state and municipalities, and corruption within a program that manages and funds them adds cost, seriously erodes trust in government, and raises questions about work quality and the potential harms to students and educators in the classroom,” said U.S. Attorney Avery. “This indictment contains allegations of a civil servant who committed multiple felonies, including extorting contractors, demanding and receiving bribes, and repeatedly lying to federal agents investigating his conduct. This kind of criminal behavior can never be tolerated, and the U.S. Attorney’s Office and our investigative partners will work to uncover it, no matter how long it takes. I thank the FBI and IRS-Criminal Investigation for their diligent work here. This investigation is ongoing.”
“The depth of deception, collusion, and abuse of power by the defendants in this case, as alleged, is glaring,” said FBI Special Agent in Charge Robert Fuller. “The willingness to manipulate contracts and blatantly steal by abusing a position of public trust is intolerable. We have a long history in this state of rooting out corruption and delivering white collar criminals to justice. Today’s arrest further indicates that we are continuing to protect taxpayers from criminal actors.”
“The indictment and arrest of Konstantinos Diamantis demonstrates IRS-CI’s commitment to halting public corruption at the source,” said IRS CI Special Agent in Charge Harry T. Chavis Jr. “Pay to play schemes, such as the alleged scheme orchestrated by Diamantis, Monarca, Duffy, and Roy are not only detrimental to the business community but also the community at large. Unjustly bribing public officials for municipal contracts circumvents the bidding process which can result in subpar construction, delays, and costly overages that directly impact the American taxpayers.”
The indictment charges Diamantis with two counts of extortion and two counts of conspiracy to commit extortion, offenses that carry a maximum term of imprisonment of 20 years on each count; two counts of bribery, an offense that carries a maximum term of imprisonment of 10 years of each count; two counts of conspiracy to commit bribery, an offense that carries a maximum term of imprisonment of five years on each count; and 14 counts of making false statements, an offense that carries a maximum term of imprisonment of five years on each count.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Monarca and Roy have agreed to cooperate with the government’s prosecution of this matter.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and David E. Novick.
diamantis_kosta_indictment.pdfFormer Shreveport Police Officer Sentenced on Wire Fraud ChargeRead the Press Release
SHREVEPORT, La. – Former Shreveport Police Department officer Jeffrey L. Peters, 55, of Shreveport, was sentenced today for one count of wire fraud, announced United States Attorney Brandon B. Brown. United States District Judge S. Maurice Hicks, Jr. sentenced Peters to 3 years of supervised probation and he was ordered to pay restitution in the amount of $13,084.74.
Peters pleaded guilty on January 12, 2024 to the charge which was the result of his actions while employed as a Lieutenant with the Shreveport Police Department (SPD). While working at SPD, Peters was allowed to work overtime on the Community-Based Crime Reduction (CBCR) Program, which is a grant program administered by the U.S. Department of Justice (DOJ) that pays officers at 1.5 times their normal hourly rate for overtime worked.
Between January 2020 and January 2021, Peters and a fellow supervisor, James Cisco, devised a scheme to defraud the SPD by claiming overtime for hours they had not worked. Peters and Cisco would each fill out and sign a Report of Overtime which stated they worked a specific time and date on the CBCR grant. Peters, in his role as Cisco’s supervisor, would certify that Cisco had actually worked the dates and times listed on the Report of Overtime. Peters would also create and submit an SPD activity report which would falsely state that he and Cisco were doing patrols in District 3, an area around SPD Headquarters. On these reports, Peters and Cisco were the only officers listed. When in truth and in fact, neither Peters nor Cisco were working overtime for SPD.
Peters submitted false Reports of Overtime and Activity Reports on over 50 dates falsely claiming he worked overtime that he had not. He was paid for hours he did not work in is bi-weekly paychecks which were deposited into his own personal account. Peters received a total of $13,084.74 in overtime that he was not entitled to receive.
Cisco was also charged in connection with this case and was sentenced to one year of supervised probation and ordered to pay restitution in the amount of $1,681.29 and a fine in the amount of $2,500.
The case was investigated by FBI, DOJ-Office of Inspector General, and Internal Revenue Service-Criminal Investigation, and prosecuted by Assistant United States Attorney Seth D. Reeg.
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Former FCI Beckley Correctional Officer Sentenced to Prison for Contraband CrimeRead the Press Release
BECKLEY, W.Va. – Cody Adam Bays, 32, of Beaver, was sentenced today to one year and six months in prison, to be followed by three years of supervised release, for providing contraband to an in inmate of a federal prison.
According to court documents and statements made in court, between November 7, 2022, and February 14, 2023, Bays was a correctional officer at Federal Correctional Institution (FCI) Beckley when he provided contraband items to FCI Beckley inmates. Bays admitted that he provided various controlled substances including suboxone, marijuana, synthetic marijuana and tobacco. Bays also attempted to smuggle fentanyl into FCI Beckley but sampled the substance, which led to a serious overdose.
Bays admitted that he profited from this illicit activity in the amount of $20,800. Bays received approximately $5,000 for the suboxone, $4,000 for the fentanyl substance, $3,500 for the synthetic marijuana and $2,000 for the marijuana.
Bays was paid in cash or through financial mobile applications. By accepting these illicit payments, Bays became part of a multi-state drug trafficking criminal enterprise that engaged in a complex system of electronic money transfers to facilitate the sale of illegal drugs in the federal prison system.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Justice-Office of Inspector General (DOJ-OIG).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Brian D. Parsons prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-165.
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Former Executive Director of South Bend Housing Authority Sentenced to 108 Months in PrisonRead the Press Release
SOUTH BEND – Tonya Robinson, 61 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after being found guilty of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, one count of wire fraud, and one count of federal program theft on November 1, 2023, following an eight-day jury trial, announced United States Attorney Clifford D. Johnson.
Robinson was sentenced to 108 months in prison, 2 years of supervised release, and was ordered to pay $3,236,949.97 in restitution to the victims of the offense.
According to documents in the case, the Housing Authority of South Bend (HASB) provides housing opportunities and services to the South Bend community, managing more than 800 public housing residential units. From approximately 2015 through 2019, Robinson served first as Interim Executive Director and then Executive Director of the HASB. She was found guilty of conspiring with employees at the HASB and with outside contractors to defraud the HASB. The fraud scheme involved the issuance of HASB payment checks to four outside contractors for contracting work that had not actually occurred. These contractors would then deposit the HASB payment checks, withdraw a portion of each check in cash, and hand-deliver the cash back to co-conspirators at the HASB’s main office. Robinson was involved in creating hundreds of fraudulent documents to conceal the fraud.
“This Office continues to focus on prosecuting public corruption and fraud,” said United States Attorney Clifford D. Johnson. “Defrauding taxpayers in schemes that divert federal funds from their intended purpose will not be tolerated. Ms. Robinson’s criminal scheme injured both federal taxpayers and South Bend Housing Authority tenants because federal monies that were intended to keep those housing units safe and habitable were not available for that purpose. This case demonstrates how our law enforcement partners and my Office will work together to hold federal fraudsters accountable.”
“Robinson was supposed to be a public servant in her role at the South Bend Housing Authority, but she chose to use her position of trust to line her own pockets,” said Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Office. “The FBI and its law enforcement partners will continue to investigate all public officials who use their positions for personal gain.”
“Tonya Robinson and her co-conspirators engaged in an egregious false billing and kickback scheme resulting in the theft of critical taxpayer dollars,” said Acting Special Agent-in-Charge Manuel Colin with the U.S. Department of Housing and Urban Development, Office of Inspector General. “Moreover, they violated the trust of the communities who rely on HUD programs and risked damaging the programs’ integrity. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
“Stealing from taxpayers is not just theft—it’s a betrayal of the public trust and an assault on our democracy,” said Jason Bushey, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Trust in our institutions at every level of government is non-negotiable, and IRS Criminal Investigation and its fellow law enforcement partners will continue to hold individuals like Robinson accountable for betraying the trust taxpayers bestow upon public servants.”
Robinson’s co-defendants who were previously convicted, received the following sentences:
Tyreisha Robinson was sentenced to a total term of time served, 2 years of supervised release, and was ordered to pay $363,122.00 in restitution to victims of the offense.
Douglas Donley was sentenced to a total term of 27 months in prison, 2 years of supervised release, and was ordered to pay $303,920.00 in restitution to victims of the offense.
Archie Robinson III was sentenced to a total term of 6 months of imprisonment, 2 years of supervised release, and was ordered to pay $1,152,636.00 in restitution to victims of the offense.
Ronald Taylor, Jr. was sentenced to term of imprisonment of 44 months, 2 years of supervised release, and was ordered to pay $1,714,956.87 in restitution to victims of the offense.
This case was investigated by the Department of Housing and Urban Development Office of Inspector General, the Internal Revenue Service-Criminal Investigation Division, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Luke N. Reilander, Joel Gabrielse, and Jerome W. McKeever.
Former Central Georgia Teacher Charged with Distributing, Possessing Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A former teacher and volunteer leader of a church youth ministry had his initial appearance in federal court this afternoon after a grand jury returned a four-count indictment this week charging him with allegedly distributing and possessing child sexual abuse material (CSAM).
Christian Baumgarth, 27, of Atlanta and formerly of Macon, is charged with two counts of distribution of child pornography and two counts of possession of child pornography. If convicted, Baumgarth faces a mandatory minimum of five years in prison up to a maximum sentence of 20 years in prison for each count of distribution of child pornography and a maximum sentence of 20 years in prison for each count of possession of child pornography. In addition, Baumgarth faces a maximum $250,000 fine per count and up to a lifetime of supervised release. The federal grand jury returned the indictment on May 14. The indictment was unsealed today. Baumgarth had his initial appearance this afternoon before U.S. Magistrate Judge Charles H. Weigle.
The indictment alleges that Baumgarth distributed digital video files on July 23, 2023, depicting a minor engaging in sexually explicit conduct. The indictment also alleges that Baumgarth possessed child pornography of a prepubescent minor and a minor under the age of 12 years old on his cellular devices on Aug. 1, 2023.
Baumgarth was a teacher and coach at First Presbyterian Day (FPD) School in Macon from 2018-2023. Additionally, he was a volunteer small group leader in the student ministry at Northway Church in Macon from 2019-2023. Parents and guardians of children who may have encountered Baumgarth and have concerns related to this investigation can contact Homeland Security Investigations (HSI) at 1-866-347-2423.
The case is being investigated by Homeland Security Investigations (HSI) with assistance from the FBI. Deputy Criminal Chief Will Keyes is prosecuting the case for the Government.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Foreign National Sentenced for Cocaine TraffickingRead the Press Release
A national of the Dominican Republic was sentenced yesterday to 15 years and four months in prison for his role in an international conspiracy to distribute 385 kilograms of cocaine for unlawful importation into the United States.
According to court documents and evidence presented at trial, from October 2016 through May 2019, Cesar Gomez Almonte, 51, participated in a drug trafficking network based in the Dominican Republic that transported cocaine from South America, through the Caribbean, to the United States. The drug trafficking network used vessels, such as sailing yachts and sport fishing boats, to transport the cocaine, often stopping in various Caribbean ports while transporting the cocaine to give a cover of legitimacy to each voyage. One of these vessels, the Casablanca, was interdicted by the U.S. Customs and Border Protection’s Marine Interdiction Unit in November 2018 as it entered U.S. waters near Key Biscayne, Florida. Officers boarded and searched the Casablanca, seizing more than 327 kilograms of cocaine.
Gomez had several roles in the conspiracy. He brokered the use of the Casablanca by another drug trafficking network to send cocaine directly to the United States, and was involved in locating and purchasing vessels for use by the drug trafficking network to transport cocaine. Additionally, Gomez attempted to change the ownership of one of the network’s boats from one straw purchaser to another to disguise the true owners and possessors of the boat, which was used in a prior voyage to transport approximately 500 kilograms of cocaine.
A federal jury in the District of Columbia convicted Gomez in November 2023 of conspiracy to import five kilograms or more of cocaine into the United States.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI); and Administrator Anne Milgram of the Drug Enforcement Administration (DEA) made the announcement.
The case is supported by the Organized Crime and Drug Enforcement Task Forces (OCDETF) and HSI’s El Dorado Task Force.
HSI New York and DEA New York investigated the case.
Acting Assistant Deputy Chief Melanie L. Alsworth and Trial Attorneys Samantha Thompson and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
The Justice Department’s Office of International Affairs provided significant assistance. The Justice Department thanks authorities in the Dominican Republic for their assistance in the investigation.
Flushing, NY, man arrested charged with possession and importation of MDMARead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Yong Chen, 37, of Flushing, NY, was arrested and charged by criminal complaint with possession with intent to distribute MDMA and importation of MDMA. The charges carry a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the complaint, in the early morning hours of September 21, 2022, U.S. Border Patrol Buffalo Sector spotted a drone launch originating at a residence in Youngstown, NY. The drone traveled across the Lower Niagara River into Ontario, Canada, and landed in Niagara-on-the-Lake, Ontario, Canada, before returning a short time later to its original launch location. Law enforcement responded to the residence and observed the drone hovering in the back yard with an attached package hanging from the chassis. The drone made landfall near an individual later identified as Edvin Yug. Another individual at the residence fled from law enforcement. The package was transported to the Niagara Falls Border Patrol Station for analysis, and found to contain three vacuum sealed bags of MDMA. A short time later, Yong Chen was found by the Niagara County Sheriff’s Department when a 911 call came in for an individual requesting medical attention for shortness of breath. Chen was identified as the individual that fled from the Youngstown residence.
A search warrant was executed at the residence, which was barely furnished, with only mattresses on the floor and almost no other furniture. The residence also contained few comfort items and no clothing to suggest individuals were using it as a primary residence. During the search, investigators seized numerous commercial grade drones, controllers, electronics, cell phones and a video hard drive containing the residence’s security camera footage, which showed Chen at the residence around the time the drone was spotted. Additionally, rolls of paracord were found on that were consistent to the cord holding the package of MDMA to the drone.
An analysis of the seized drones recovered data indicating that they had conducted five cross-border flights into Canada and back prior to September 21, 2022, all originating and concluding at the Youngstown residence. Chen’s flight records also coincide with the dates of the cross-border drone activity. Chen is not known to have any ties to the Buffalo/Youngstown area. According to the complaint, the Youngstown residence was purchased by a business owned by Chen’s sister.
The complaint is a result of an investigation U.S. Border Patrol, Buffalo Sector, under the direction of Chief Patrol Agent Thomas G. Martin, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Florida Man Charged with Conspiracy to Distribute Oxycodone for Prescription Drug Diversion SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, a three-count indictment was unsealed charging Devin Anthony Magarian with conspiracy to distribute oxycodone and possessing oxycodone with intent to distribute. Magarian is charged with orchestrating a years’ long conspiracy to commandeer physicians’ e-prescribing privileges in order to divert Oxycodone and other controlled substances into the illicit market.
Breon Peace, United States Attorney for the Eastern District of New York, Anne T. Donnelly, District Attorney of Nassau County, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA) and Patrick Ryder, Nassau County Police Commissioner, announced the indictment and charges.
“As alleged, Magarian led the conspiracy to pirate the digital prescription pads of physicians, putting thousands of lives at risk through this illicit diversion scheme,” stated United States Attorney Breon Peace. “This Office will continue doing its part to find and hold responsible individuals at all levels who, motivated by greed, perpetuate the opioid and prescription drug epidemic with careless disregard for the safety of the communities in this district and nationwide.”
United States Attorney Peace thanked the New York State Bureau of Narcotic Enforcement for their significant contributions to the investigation.
“Devin Magarian was the primary facilitator of a complex narcotics conspiracy, coordinating drug-running operations in dozens of states across the county and maximizing profits for the illicit venture,” said Nassau County District Attorney Anne T. Donnelly. “Tens of thousands of prescriptions for narcotics and other controlled substances were filled in Nassau County and beyond at this defendant’s direction using pirated e-prescribing credentials of unwitting doctors, putting our communities at risk. Magarian was an important cog in a much larger machine – one that we will dismantle piece by piece with our federal partners at the U.S. Attorney’s Office and the Drug Enforcement Administration.”
“The indictment against Devin Anthony Magarian for conspiracy to distribute oxycodone through a diverted e-prescription scheme and distribute on the illicit market for the purpose of putting profits above public health is not only reckless and dangerous, but unconscionable” stated DEA New York Special Agent-in-Charge Frank Tarentino. “Trading in lives for profit is a dark path and we will continue to work with our law enforcement partners to make sure those responsible face justice.”
As alleged in the indictment, in or around and between December 2022 and March 2024, the defendant was the key driver of a wide-ranging conspiracy in which he and his associates surreptitiously commandeered the e-prescribing credentials of doctors throughout the country, and then used those compromised accounts to issue and fill thousands of prescriptions for narcotics and other controlled substances, including Oxycodone and Promethazine with Codeine syrup, commonly known as Codeine, throughout Nassau County and nationwide. These highly abused substances were then diverted into the illicit market, where the defendant often advertised them for sale to street-level resellers and buyers on his social media accounts and elsewhere.
Over the course of this investigation, law enforcement identified dozens of medical practitioners who experienced a similar series of occurrences which ultimately resulted in the defendant and his associates issuing and filling thousands of illicit prescriptions in the names of countless fictitious patients. Many of the physicians experienced unusual activity on their cellphones, including being flooded with text messages in the days leading up to losing control of their cellphones and e-prescribing accounts. Unbeknownst to the physicians, these text messages were related to efforts by the defendant and his associates to “clone” the SIM card of the doctors’ cellphone, thereby giving the defendant full access to the phone, and ultimately, the physicians’ e-prescribing credentials.
Once the credentials were compromised, the defendant advertised the prescriptions and controlled substances he had for sale on social media. Using automated “bots,” the defendant would generate and transmit thousands of prescriptions using the compromised doctor’s e-prescribing credentials within a matter of hours. These bots generated fictitious names, dates of birth, and addresses, and sent electronic prescriptions for controlled substances and narcotics to pharmacies in specific areas where the defendant’s associates were waiting. The defendant transmitted thousands of prescriptions, which when filled, resulted in thousands of pills of pharmaceutical grade narcotics being illicitly diverted and re-sold at a premium. The defendant’s profits from the resale of those illegally procured narcotics ranged from $75,000 to $250,000 per month, in the form of payments which were primarily made via cryptocurrency, at the defendant’s request.
The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Adam Toporovsky and Kaitlin McTague, and Special Assistant United States Attorney Brian Rodriguez, of the Nassau County District Attorney’s Office, are in charge of the prosecution with assistance from Paralegal Specialists Adam Bernard and Samantha Schroeder.
The Defendant:
DEVIN ANTHONY MAGARIAN
Age: 21
Kissimmee, New YorkE.D.N.Y. Docket No. 24-CR- 178
Felon Who Threatened Mail Carrier Sentenced to 10 Years on Gun ChargeRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man who threatened a mail carrier when he hadn’t received a package containing marijuana to 10 years in prison.
Marquis Melton, 31, pleaded guilty in January to one count of being a felon in possession of a firearm. Melton admitted that on Feb. 27, 2023, he confronted a U.S. Postal Service mail carrier in the 4700 block of Farlin Avenue in St. Louis, Missouri, demanding a package that he expected. After being told by the carrier that he did not have that package, Melton followed the carrier back to the Post Office and again tried to locate the package.
The next day, St. Louis Metropolitan Police Department officers stopped the vehicle Melton was riding in the day before. They found a .40-caliber pistol. Melton is a convicted felon and is barred from possessing a firearm. He was also wanted by police on other matters.
Evidence photo.Melton denied threatening the carrier with a firearm and claimed there was no evidence that the gun he purportedly had while interacting with the carrier was the same one police found a day later.
But based on testimony and evidence presented during a sentencing hearing Wednesday, Judge Ross found that Melton did have the gun and did threaten the mail carrier. Melton was impatient about shipment of marijuana that he was expecting, evidence and testimony showed.
Evidence photo.The St. Louis Metropolitan Police Department and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Linda Lane prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal grand jury indicts three additional defendants for their roles in scheme that defrauded thousands of companies out of millions of dollarsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging John Engler, Alec Dierna, And Nicholas Scarantino with conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Also named in the superseding indictment are three defendants previously charged in the case: Tommy Lee Coburn, Kyle Paul Edward Gibson, and Heather Dierna.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the superseding indictment, in January 2019, defendant Engler began mailing fictitious invoices to primarily large companies located throughout the United States for cleaner/degreaser products that the victim companies would believe they had previously ordered and received. In August 2020, Engler recruited defendant Dierna to participate in his scheme, which began the conspiracy. Defendants Coburn and Heather Dierna joined the conspiracy in January 2021, Gibson in February 2021, and in July 2021, Scarantino joined the conspiracy.
Large companies were targeted because it was less likely during the COVID-19 pandemic that account payable departments in these companies would question whether cleaner/degreaser products listed on the fraudulent invoices were ordered and received. Large companies were targeted because the relatively small amounts owed on the fraudulent invoices would be less likely to raise questions regarding the legitimacy of the invoices, and because the accounts payable departments do not order products for their companies, and would be less likely to question or be suspicious of the grossly inflated prices for the cleaner/degreaser products. Fraudulent invoices were mailed from Florida and from Rochester. Intended to look like legitimate invoices, the defendants placed statements that the documents were merely “solicitations,” and that there was no obligation to pay the amounts listed on the fraudulent invoices, in hard-to-find places on page two of the invoice. The statements were inserted so that if the defendants were ever later questioned, they could falsely claim that the intended purpose of the documents was merely to “solicit” future business from the victim companies.
As a result of the conspiracy, approximately 5,458 victim companies were tricked into believing that they had received a legitimate invoice for cleaner/degreaser products, paying approximately $8,010,543.50 to the sham companies. After receiving payment, the defendants attempted to cover up their fraud by having inexpensive cleaner/degreaser products delivered to the victim companies. Several companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.
The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Elkhart Man Sentenced to 51 Months in PrisonRead the Press Release
SOUTH BEND – Nathan Keosackdy, 24 years old, of Elkhart, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after being found guilty following a two-day jury trial on November 14, 2023, for being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Keosackdy was sentenced to 51 months in prison followed by 2 years of supervised release.
According to documents in the case, in September 2022, Keosackdy, a felon, who was prohibited from possessing or purchasing a firearm, took another individual to a federally licensed firearm dealer to complete the purchase of a firearm he had chosen. After the firearm purchase, Keosackdy carried the gun out of the store and paid the individual for the gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department and the Mishawaka Police Department. The case was prosecuted by Assistant United States Attorneys Jerome W. McKeever and Lydia T. Lucius.
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.
Egyptian National Sentenced to 18 Months in Prison for Wire Fraud Scheme to Defraud Former Employer in New JerseyRead the Press Release
CAMDEN, N.J. – An Egyptian national living in New Jersey was sentenced to 18 months in prison for engaging in a fraudulent scheme to misappropriate more than approximately $430,000 belonging to his former New Jersey employer, U.S. Attorney Philip R. Sellinger announced today.
Abdelrahman Ahmed-Elkilani, 28, a citizen of Egypt who formerly resided in Florida, and now resides in Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of wire fraud. Judge Kugler imposed the sentence on May 15, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2017 through July 2019, Ahmed-Elkilani misappropriated more than $430,000 in funds belonging to his former employer by taking advantage of his role as a marketing manager for the company and his access to other employees’ operator codes, as well as the company’s membership accounts to create and execute multiple false transactions. These transactions enabled Ahmed-Elkilani to misappropriate funds for his own personal use and benefit.
Ahmed-Elkilani misappropriated $417,075 held in the company’s deposit account and caused approximately $275,000 of those funds to be transferred to his personal credit or debit cards. He also misappropriated $13,674 in additional company funds through other fraudulent methods.
In addition to the prison term, Judge Kugler sentenced Ahmed-Elkilani to three years of supervised release and ordered restitution and forfeiture in the amount of $430,749.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the Economic Crimes Unit in Newark.
Eastern Oregon Man Sentenced to More Than 12 Years in Federal Prison for Sexually Abusing Two Minors He Met OnlineRead the Press Release
PORTLAND, Ore.—A La Grande, Oregon man was sentenced to more than 12 years in federal prison Wednesday for sexually abusing and transporting two minors from Washington State he met through Snapchat.
Albert Wayne Johnson, 42, was sentenced to 151 months in federal prison and 10 years’ supervised release.
According to court documents, on August 8, 2022, deputies from the Clackamas County Sheriff’s Office responded to a call of two minors abandoned at Barton Park in Boring, Oregon. The children told the deputies they met Johnson on Snapchat and that he had driven them from Washington State through Idaho and into Oregon, and had sexually abused both during the trip. Along the way, Johnson stopped at a motel in Othello, Washington, where he abused the children, and a campground near La Grande, where he continued to abuse one of the children. After arriving in Boring, Johnson left the children at a campsite in Barton Park and never returned.
In August 2022, after receiving information about the abduction and abuse that had occurred, detectives from the Othello Police Department contacted the motel in Othello and obtained surveillance footage showing Johnson with the two children.
On August 30, 2022, officers and deputies from the La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, and Umatilla Tribal Police Department located Johnson at his residence in La Grande and arrested him on an outstanding parole violation warrant.
On October 5, 2022, Johnson was charged by criminal complaint with coercing and enticing a minor and transporting a minor with intent to engage in criminal sexual activity. Later, on November 2, 2022, a federal grand jury in Portland returned a three-count indictment charging Johnson with traveling across state lines to engage in a sexual act with a minor, transporting a minor with intent to engage in criminal sexual activity, and commission of a sex offense by a registered sex offender.
On January 24, 2024, Johnson pleaded guilty to transporting a minor with intent to engage in criminal sexual activity.
This case was investigated by the FBI Pendleton Resident Agency with assistance from the Othello Police Department, La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, Umatilla Tribal Police Department, and Clackamas County Sheriff’s Office. It was prosecuted by Cassady Adams, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
East Boston Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man pleaded guilty yesterday to possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 25, pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography. U.S. District Judge Richard G. Stearns scheduled sentencing for Aug. 14, 2024. Pineda was arrested and charged by criminal complaint in January 2023 and has remained in federal custody since.
Law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. On Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups. An additional 54 videos of CSAM, involving children as young as six years old, were found within an application on Pineda’s personal cell phone.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
District Man Pleads Guilty to Carjacking in NortheastRead the Press Release
WASHINGTON – Antwan Mitchell, 19, of Washington D.C., pleaded guilty to one count of carjacking arising from a February 2024 offense committed in Northeast Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
On May 14, 2024, Mitchell pleaded guilty in the Superior Court of the District of Columbia to carjacking before the Honorable Jason Park. Judge Park scheduled sentencing for August 5, 2024.
During that plea hearing, Mitchell admitted that he and two co-conspirators, who have never been identified, carjacked a rideshare driver on February 6, 2024. The victim had just dropped off his rideshare passengers in the 200 block of Kenilworth Avenue NE when Mitchell and his accomplices surrounded the victim’s SUV. One of Mitchell’s accomplices held the victim at rifle-point while Mitchell and another accomplice demanded the victim’s car keys and wallet. After the victim got out of his SUV and handed over his car key, Mitchell and his accomplices drove off in the victim’s SUV. MPD Officers responded immediately, canvassed the area, and located the victim’s stolen SUV. While inspecting that vehicle, police also located a second vehicle that Mitchell and his accomplices had used to commit this carjacking. Officers pursued that vehicle and ultimately apprehended Mitchell after he ran from it. Police recovered a firearm in the vehicle, but Mitchell’s accomplices escaped.
This case was investigated by the Metropolitan Police Department and is being prosecuted by Assistant United States Attorney Sabena Auyeung.
District Man Indicted for House Party ShootingRead the Press Release
WASHINGTON – Darrious Johnson, 23, of the District of Columbia, has been charged in a 10-count indictment for unleashing gunfire into a crowded living room during a house party in the Hillbrook neighborhood in Northeast, D.C., in May 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court grand jury returned the indictment that was filed on May 16, 2024, which charges Johnson with two counts of assault with intent to kill (adults) while armed, one count of assault with intent to kill a minor while armed, aggravated assault while armed, second degree cruelty to children, and related firearm offenses. According to the Government’s evidence, after an argument at the party, Defendant Johnson walked upstairs, retrieved a firearm, walked halfway down the stairs, and fired numerous shots into the crowded living room with adults and children present. One of the bullets hit the arm of an adult victim who was holding an infant, causing serious injuries.
This case is being investigated by the Metropolitan Police Department and is being prosecuted by Assistant U.S. Attorneys Anthony Cocuzza, Megan McFadden, and Sabena Auyeung.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.