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Friday 29 March 2024
Bellingham, Washington drug dealer sentenced to ten years in prison for distributing fentanyl while possessing firearmsRead the Press Release
Seattle – A 39-year-old Bellingham, Washington man was sentenced today in U.S. District Court in Seattle to ten years in prison for drug distribution and firearm crimes, announced U.S. Attorney Tessa M. Gorman. Daniel Faix was arrested in April 2023, and pleaded guilty in January to possession of controlled substances with intent to distribute, unlawful possession of firearms, and possession of a firearm in furtherance of a drug trafficking crime. At today’s sentencing hearing U.S. District Judge Richard A. Jones said, “You were caught and charged, and returned to dealing drugs.”
“When Mr. Faix encountered law enforcement in late December 2022, he was carrying thousands of fentanyl pills, and drug proceeds,” said U.S. Attorney Gorman. “But one arrest didn’t stop him, and four months later a search of his RV home turned up thousands more pills and four guns he kept to protect his drug business. Spreading such poison in our community while illegally
possessing guns, and the defendant’s extensive criminal history, merits a ten-year-prison term.”
According to records filed in the case, Faix was one of six people charged federally in a months-long investigation of fentanyl dealing in Whatcom County. The ring was actively moving fentanyl from the Seattle area to redistributors in Bellingham. Law enforcement officers observed various drug transactions and interdicted the drug loads. In one instance, law enforcement was called to a mini-mart where two people involved with the drug ring overdosed on fentanyl and had to be revived and transported to the hospital.
In asking Judge Jones to impose the ten-year-sentence, Assistant United States Attorney Stephen Hobbs wrote to the court, “The Court is certainly aware of the dangers that these drugs – particularly fentanyl – pose to those who use them. And Faix must be aware of the harm caused by these drugs as his own life has been consumed and upended by drug use. Ultimately, Faix – for whatever reason – was willing to personally profit from the distribution of an addictive and often deadly controlled substance.”
One other member of the drug ring has been sentenced: 33-year-old Ahbdurman Ahmed of Seattle was sentenced in January 2024 to six years in prison. On Wednesday, defendant Natasha Parkhill, 38, of Bellingham, pleaded guilty and is scheduled for sentencing in July. Defendant Mohamed Abdirisak Mohamed, 35, of Seattle pleaded guilty in January and is scheduled for sentencing in June. Defendant Matthew Anderson, 35, of Bellingham, is scheduled for trial in July. Defendant Robel Sisay Gebremedhin, A/K/A Robel Sisay Gebremedhui, 41, of Burien, WA is being sought by law enforcement.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
This investigation was led by the Drug Enforcement Administration (DEA) and the Whatcom County Drug and Gang Task Force, with valuable assistance provided by the Whatcom County Sheriff’s Office, Washington State Patrol, and the Whatcom County Prosecutor’s Office.
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Beckley Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Quantel O. Saunders, 29, of Beckley, was sentenced today to three years and ten months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on September 19, 2022, law enforcement officers observed Saunders with a firearm tucked in the front of his waistband outside a service station on the 200 block of North Eisenhower Drive in Beckley. Officers stopped Saunders as he was entering his vehicle and recovered a Ruger-57 5.7x28mm handgun from the driver’s side floorboard of the vehicle. Saunders admitted to the officers that he possessed the firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Saunders knew he was prohibited from possessing a firearm because of his prior felony convictions for possession of a firearm by a prohibited carrier and three counts of wanton endangerment with a firearm in Raleigh County Circuit Court on August 3, 2015.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Brian Parsons prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-108.
Alex Murdaugh to Be Sentenced for Federal Conspiracy, Wire Fraud, Bank Fraud, and Money Laundering ChargesRead the Press Release
CHARLESTON, S.C. — Richard Alexander “Alex” Murdaugh, 55, of Hampton, is scheduled to be sentenced in federal court on 22 charges including conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering. Murdaugh pleaded guilty in September 2023. Read the previous release here.
United States District Judge Richard M. Gergel will impose the sentence.
WHEN: Monday, April 1, 2024, at 10 a.m.
WHERE: United States District Courthouse
The hearing will be held in Courtroom 3 and Courtroom 1 will serve as overflow space
83 Meeting Street
Charleston, South Carolina
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NOTE: United States Attorney Adair F. Boroughs along with Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office and SLED Chief Mark Keel, will be available outside the courthouse following the hearing. The hearing could last approximately three hours. No cameras or cell phones are allowed in the federal courthouse.
Alabama Resident Sentenced to 30 Years for Aggravated Sexual AbuseRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Dennis Hebert, age 39, of Phenix City, Alabama, was sentenced to 360 months of imprisonment, followed by a lifetime term of supervised release for one count of Aggravated Sexual Abuse in Indian Country.
On May 17, 2023, Hebert was found guilty of the charge by a federal jury.
The guilty verdict was the result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
During the trial, the United States presented evidence that on July 21, 2021, Hebert engaged in a sexual act with a minor victim who had not reached 10 years of age. The United States also presented evidence that Hebert had previously sexually abused another child under the age of 10. The crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Hebert will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Caila M. Cleary represented the United States.
Thursday 28 March 2024
Zuni Man Sentenced to Prison for Sexual Contact of a MinorRead the Press Release
ALBUQUERQUE – A federal judge handed down an eight-year prison sentence to a Zuni man after he pleaded guilty to abusive sexual contact in Indian Country. Upon his release from prison, Phillip Edward Lahi, Sr., 72, an enrolled member of the Pueblo of Zuni, will be subject to five years of supervised release with standard sex-offender-specific conditions, and must register as a sex offender. Lahi, Sr. must also pay a fine of $83,400.00 to offset the costs associated with his incarceration and supervised release.
There is no parole in the federal system.
According to publicly available court records, between November and December of 2021, Lahi, Sr. engaged in sexual contact with Jane Doe, a child relative under the age of 12.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Brittany DuChaussee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
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Woman who embezzled nearly $400,000 from Renton, Washington company sentenced to 10-month prison termRead the Press Release
Seattle – A 32–year-old Des Moines, Washington woman was sentenced today in U.S. District Court in Seattle to 10 months in prison for her scheme to steal nearly $400,000 from her employer, announced U.S. Attorney Tessa M. Gorman. Trixie Dela Cruz was employed by a Renton, Washington company that administers employee benefits for employers nationwide. Within six months of her hiring and immediately after she had been promoted, Dela Cruz began her embezzlement scheme. Judge Lauren King sentenced Dela Cruz to three years of supervised release to follow the prison term, saying Dela Cruz had “abused the trust” of her employer with a scheme that “involved planning and continuous affirmative conduct.”
According to records filed in the case, Dela Cruz was hired by the company in October 202o and in March 2021, was promoted to Account Associate. In that role, she managed client accounts and approved claims for benefits. Using her access, she created a duplicate account for a deceased employee of one of the clients. She connected the profile to her own bank account and then submitted and approved 58 fraudulent claims totaling $397,942. Dela Cruz would activate the profile for the fraudulent claim and then deactivate it so no record would show up for her company.
In January 2022, the company discovered the fraud and dismissed Dela Cruz. The company reimbursed the client for the fraudulent claims. Forensic analysis indicated Dela Cruz spent the money on gambling, cash application transfers to family and friends, and to pay for jewelry, travel, car payments and other shopping.
Judge King ordered full restitution to Dela Cruz former employer and its insurance company, which paid the bulk of the company’s losses.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorney Michelle Jensen.
Waterloo Man Sentenced to Prison for Shooting at Crowd Outside of BarRead the Press Release
A Waterloo man who shot at a crowd outside a Waterloo nightclub was sentenced today to more than five years in prison.
O’Shea Taelly Wright, age 27, from Waterloo, received the prison term after a November 3, 2023, guilty plea to possession of ammunition by a felon.
Information disclosed during the plea and sentencing hearing revealed that Wright was involved in a fight outside a Waterloo nightclub on December 31, 2022. Multiple people were involved in the fight. During the fight, Wright walked to the SUV he had arrived at the nightclub in and retrieved a firearm from the front passenger seat. Wright then fired multiple shots toward a group of people fighting nearby. No one was shot or injured by Wright. At the time, Wright was a felon based on a drug conviction and was on probation for that felony conviction.
Wright was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Wright was sentenced to 66 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Waterloo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2036.
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Waterloo Felon Returned to Federal Prison for Possessing FirearmRead the Press Release
A Waterloo man who illegally possessed a firearm shortly after his release from federal prison for illegally possessing a firearm was sentenced to more than seven years in federal prison. Shaquan Coffer, age 25, from Waterloo, Iowa, received the prison term after a September 26, 2023, guilty plea to one count of possession of a firearm by a felon.
Evidence at Coffer’s guilty plea and sentencing hearings established that, in 2018, Coffer was sentenced in federal court to 34 months’ imprisonment and three years of supervised release after a conviction on one count of possession of a firearm by a felon. Coffer has an extensive prior criminal history in state court, including convictions for possessing a firearm by a felon, first-degree harassment, escape from custody, and theft. In early March 2023, the U.S. Bureau of Prisons released Coffer after he completed his federal sentence, and he began his three-year term of supervised release.
On April 2, 2023, Cedar Falls Police Department (“CFPD”) officers were dispatched to investigate a domestic assault in a moving vehicle. Coffer’s girlfriend had called 911, because Coffer, the passenger in the vehicle, had kicked and cracked her windshield during an argument in the vehicle. When the CFPD officers attempted to conduct a pat-down search of Coffer, he fled the scene on foot. During a foot chase, Coffer tossed a firearm on the ground in the driveway of a local business. The firearm was stolen and loaded with an extended magazine.
Coffer was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Coffer was sentenced to a total of 85 months’ imprisonment, 71 months for one count of possessing a firearm as a felon and an additional 14 months for violating the terms of his supervised release. He must also serve a three-year term of supervised release after the prison terms. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Coffer is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 23-CR-2025 and 18-CR-2041.
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Virginia Man Charged for Attempted Church ShootingRead the Press Release
A federal grand jury returned an indictment yesterday charging Rui Jiang, 35, of Falls Church, Virginia, with attempting to obstruct the congregants of the Park Valley Church in Haymarket, Virginia, in the free exercise of their religious beliefs. The indictment charged that his attempted act involved a dangerous weapon and an attempt to kill, and included both a threats count and a firearms violation.
According to court documents, Jiang began posting online threats against the Park Valley Church on the evening of Sept. 23, 2023. On the morning of Sept. 24, 2023, police began searching for Jiang in response to a concerned citizen’s call about his online posts. Police officers located Jiang at the front entrance to the Park Valley Church while Sunday services were underway. Jiang was armed with a semiautomatic handgun and two full magazines of ammunition. During a search of Jiang’s apartment, police discovered five copies of a letter, each signed, which read in part, “To the families of those men about to be slain – I am sorry for what I have done and about to do. May your tears not be cried in vain, but to celebrate how your loved ones had lived.” Jiang was arrested and detained by state authorities on Sept. 24, 2023.
If convicted of all counts, Jiang faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Assistant Director in Charge David Sundberg of FBI Washington Field Office, and Commonwealth’s Attorney Amy Ashworth for Prince William County, Virginia, made the announcement.
The FBI Washington Field Office investigated the case, with substantial assistance from the Prince William County, Virginia, and Fairfax County, Virginia, Police Departments.
Assistant U.S. Attorneys Nicholas Durham and Troy A. Edwards Jr. for the Eastern District of Virginia and Trial Attorney Kyle Boynton of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty in a court of law.
Utah Residents Accused of Running a COVID-19 Relief Fraud Scheme Face Federal ChargesRead the Press Release
SALT LAKE CITY, Utah – Three Tooele County residents accused of running a Paycheck Protection Program (PPP) loan fraud ring will appear before a U.S. Magistrate Judge today following a federal indictment. The indictment, returned by a grand jury on Feb. 28, 2024, includes charges of wire fraud and aiding and abetting during the COVID-19 pandemic.
According to court documents, Halee Ann Mehlbauer, 38, Timothy George Lopez, 62, and Rick A. Bolton, 65, of Tooele, allegedly ran a PPP Loan fraud ring from July 2020 to January 2022. Mehlbauer, Lopez, and Bolton fraudulently applied for at least 10 PPP loan applications and five PPP loan forgiveness applications that attempted to defraud lenders and the Small Business Administration (SBA) of approximately $422,242.50. These were funds Congress allocated for the SBA to provide low-interest loans to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic.
When applying for the loans, Mehlbauer, Lopez, and Bolton used fictitious businesses that did not exist before the pandemic hit, and therefore did not qualify for PPP loans. The defendants also exaggerated and fabricated the number of employees, average monthly payroll, and gross income of their fictitious businesses. Mehlbauer, Lopez and Bolton also submitted fake tax forms and payroll tax forms to support their fabricated payroll and gross income. The defendants never filed the fake tax forms they submitted to their lenders with the IRS. Mehlbauer also transferred at least $49,475.02 of PPP loan funds to herself in checks. The defendants spent the rest of the fraudulently obtained PPP loan funds on unauthorized personal expenses, including debt payments, car expenses and gambling.
By lying on the PPP loan applications, Mehlbauer, Lopez and Bolton fraudulently obtained at least approximately $195,930.50 in PPP loan funds and obtained forgiveness of at least approximately $155,477.50 of their approved PPP loans, that they were not eligible to receive.
Mehlbauer, Lopez and Bolton are charged with seven counts of wire fraud and aiding and abetting. Mehlbauer is also charged with money laundering. Their initial court appearance on the indictment is scheduled for March 28, 2024, at 3:00 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
Assistant United States Attorney Todd C. Bouton of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
The Utah Federal COVID-19 Fraud Strike Force is investigating the case, which includes Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Office of Inspector General’s U.S. Small Business Administration – Office of Inspector General (SBA-OIG), Department of Defense (DOD), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Labor (DOL), and the U.S. Treasury Inspector General for Tax Administration (TIGTA). The public is encouraged to share information about the abuse of the Paycheck Protection Program or other SBA programs by submitting a complaint here.
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 at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Announces $3.1 Million False Claims Act Settlement with Radiology Company and Its CEO for Fraudulent Billing PracticesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”); Brian J. Solecki, the Acting Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General, Defense Criminal Investigative Service (“DCIS”); and Christopher Algieri, the Special Agent in Charge of the Northeast Field Office of the Department of Veterans Affairs Office of Inspector General (“VA OIG”), announced today that the United States has settled a civil fraud lawsuit against THE RADIOLOGY GROUP LLC and its CEO, ANAND LALAJI.
THE RADIOLOGY GROUP is a teleradiology company based in Atlanta, Georgia, that provides diagnostic radiology services to hospitals, urgent care centers, and primary care physician centers located across the country. The settlement resolves claims that THE RADIOLOGY GROUP and LALAJI violated the False Claims Act by fraudulently billing federal health care programs when the U.S.-based radiologist just “rubber stamped” interpretation reports prepared by contractors in India who were not permitted to practice medicine in the United States or bill federal health care programs. The Government further alleges that THE RADIOLOGY GROUP and LALAJI misrepresented who actually rendered the radiology services when seeking payments and improperly sought reimbursement for services furnished entirely by persons located outside of the United States in violation of applicable statutes and regulations.
Under the settlement approved yesterday by U.S. District Judge Analisa Torres, THE RADIOLOGY GROUP and LALAJI will pay a total sum of $3.1 million, of which $2,678,387.21 will be paid to the United States with the remainder being paid to various states. As part of the settlement, THE RADIOLOGY GROUP and LALAJI also made extensive factual admissions regarding their conduct. Among other things, THE RADIOLOGY GROUP and LALAJI admitted that they failed to ensure that their U.S.-based radiologists were conducting a meaningful and adequate review of draft interpretations of radiology scans prepared by India-based contractors. THE RADIOLOGY GROUP and LALAJI also admitted that, on numerous occasions, they submitted claims to federal health care programs where the radiologist who reviewed and interpreted the imaging was someone other than the individual listed on the claim for reimbursement.
U.S. Attorney Damian Williams said: “The Radiology Group failed to put in place appropriate safeguards to ensure that their U.S.-licensed radiologists adequately reviewed non-credentialed contractors’ findings before transmitting the reports to physicians who relied on the findings to make patient care decisions. This Office is committed to holding healthcare providers accountable when they violate clear rules and regulations designed to ensure the integrity of taxpayer funded healthcare programs and protect patient quality of care.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “As part of the settlement, The Radiology Group and Anand Lalaji admitted that they failed to ensure that their U.S.-based radiologists were conducting a meaningful and adequate review of draft radiology interpretation reports. Defendants potentially jeopardized patients’ health by taking shortcuts when it came to ensuring that important radiological tests were done and reviewed properly. Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
VA OIG Special Agent in Charge Christopher Algieri said: “The VA OIG is dedicated to ensuring veterans receive the quality health care they deserve, and we will continue to work to make certain that VA healthcare programs are not compromised by fraudulent billing practices. The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
As alleged in the Complaint filed in Manhattan federal court:
Diagnostic radiology involves the diagnosis of diseases and injuries using imaging techniques, such as Computed Tomography scans, Magnetic Resonance Imaging, and ultrasounds. Radiologists review the generated images and prepare written reports summarizing their findings (an “Interpretation Report”). Health care providers rely on these Interpretation Reports when diagnosing patient conditions and when making important decisions regarding patient medical care.
THE RADIOLOGY GROUP is a teleradiology practice that provides diagnostic radiology services to hospitals, urgent care centers, and primary care physician offices (the “Referring Providers”) located throughout the United States. The Referring Providers transmitted imaging to THE RADIOLOGY GROUP so that THE RADIOLOGY GROUP could review the images and prepare Interpretation Reports. Using online-based teleradiology platforms, THE RADIOLOGY GROUP sent the images to contractors located outside the United States, who would conduct initial reviews of the imaging and prepare draft Interpretation Reports. After that process was complete, THE RADIOLOGY GROUP’s U.S.-based radiologists were supposed to conduct an independent and separate review of the imaging and make all necessary changes to the Interpretation Reports before transmitting them to the Referring Provider. The final Interpretation Reports were signed by the U.S.-based radiologist, who was responsible for the Interpretation Report’s content.
THE RADIOLOGY GROUP and LALAJI knew that contractors located in India who prepared draft Interpretation Reports were not permitted to practice medicine in the United States or bill federal health care programs. Nevertheless, certain radiologists at THE RADIOLOGY GROUP merely “rubber stamped” the draft reports and transmitted them to the providers without conducting a meaningful and adequate review of the findings. For instance, one radiologist (“Radiologist A”) approved, signed, and transmitted to providers over 100,000 Interpretation Reports and frequently approved draft CT scan reports in less than 30 seconds.
THE RADIOLOGY GROUP and LALAJI also understood that they were prohibited by federal health care program rules from submitting claims for reimbursement for radiology services if the radiologist listed as the rendering provider on the claim for reimbursement had not actually rendered the services. THE RADIOLOGY GROUP and LALAJI, however, consistently submitted, or caused to be submitted, claims for payment to federal health care programs that identified either LALAJI or the other owner of THE RADIOLOGY GROUP as the rendering provider, even though they had not in fact rendered the radiology services for which reimbursement was sought. Further, on numerous occasions, THE RADIOLOGY GROUP and LALAJI submitted, or caused to be submitted, claims for payment for diagnostic radiology services provided by a radiologist who resided and worked in the United Kingdom, in violation of relevant Medicare regulations.
As part of the settlement, THE RADIOLOGY GROUP and LALAJI admitted and accepted responsibility for certain conduct alleged by the United States, including the following:
- THE RADIOLOGY GROUP and LALAJI knew that they could not bill federal health care programs for the radiology services unless a U.S.-based and licensed radiologist reviewed all of the images associated with the scan, reviewed the Interpretation Report prepared by the individual in India, and made any necessary changes to the Interpretation Report. However, there were some instances when this did not occur.
- For example, THE RADIOLOGY GROUP employed a U.S.-based radiologist (“Radiologist A”) who repeatedly approved Interpretation Reports prepared by non-licensed individuals in India without reviewing relevant images associated with the scan and without conducting any meaningful review of the report or properly considering whether any changes needed to be made to it.
- THE RADIOLOGY GROUP and LALAJI failed to ensure that their U.S.-based radiologists were conducting a meaningful and adequate review of the draft interpretations of scans prepared by the non-licensed contractors in India.
- On numerous occasions, THE RADIOLOGY GROUP and LALAJI submitted claims to federal health care programs where the radiologist who reviewed and interpreted the imaging was someone other than the individual listed on the claim.
- THE RADIOLOGY GROUP and LALAJI understood that Medicare did not pay for medical services rendered by individuals located outside of the United States. Nonetheless, on numerous occasions, THE RADIOLOGY GROUP and LALAJI submitted claims to Medicare for diagnostic radiology services rendered in the United Kingdom by a radiologist employed by THE RADIOLOGY GROUP who lived there.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
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Mr. Williams praised the outstanding investigative work of HHS-OIG, DCIS, and VA-OIG, and thanked the Wisconsin Medicaid Fraud Control and Elder Abuse Unit for their extensive collaboration in the investigation and resolution of this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Charles S. Jacob is in charge of the case.
Two Indicted for $9.4 Million Fraud Against AHCCCS's Insurance Program for Native AmericansRead the Press Release
PHOENIX, Ariz. – Earlier this month, a federal grand jury in Phoenix returned a 30-count indictment against Kenneth Harrison, 44, and Courtney Haywood, 38, of Las Vegas, Nevada on 30 felony counts related to their Arizona-based company, Aurtism, LLC, which was used to defraud the Arizona Health Care Cost Containment System (AHCCCS) of over $9.4 million. Harrison and Haywood made their initial appearances on the charges in federal court in Phoenix Wednesday.
The indictment alleges that Harrison and Haywood committed conspiracy, healthcare fraud, money laundering, and aggravated identity theft by using Aurtism to fraudulently bill AHCCCS’s American Indian Health Program for mental health services they claimed were provided to indigent Native Americans during 2020 and 2021. The indictment alleges that, in addition to overbilling for patients that Aurtism treated, Harrison and Haywood billed for patients Aurtism never treated—such as those who received treatment in residential facilities, were in prison or jail, or deceased. Aurtism billed AHCCCS for more than $9.4 million in less than two years. Of the payments received from AHCCCS, Harrison spent $2.7 million on residential real estate, $763,000 on luxury cars, and nearly $1 million on retail purchases and travel. Haywood spent much of the $3.4 million he received from the AHCCCS payments on real estate, cars, retail purchases, and travel.
A conviction for conspiracy carries a maximum penalty of five years in prison, a conviction for healthcare fraud or money laundering carries a maximum penalty of 10 years in prison, and a conviction for aggravated identity theft carries a mandatory two years in prison. Each conviction also carries a maximum fine of up to twice the amount of financial loss to AHCCCS and mandates full restitution to AHCCCS.
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 conducted the investigation in this case with assistance from IRS Criminal Investigation. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
Harrison- IndictmentCASE NUMBER: CR-24-00393-PHX-MTL
RELEASE NUMBER: 2024-039_Harrison# # #
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.Three Philadelphia Men Admit Roles in Conspiracy to Burglarize United Parcel Service Warehouses Across United States, Stealing over $1.6 Million in PackagesRead the Press Release
CAMDEN, N.J. – Three Philadelphia men pleaded guilty today to their roles in a conspiracy to burglarize approximately 55 United Parcel Service (UPS) warehouses across the United States, resulting in the theft of over $1.6 million worth of merchandise, U.S. Attorney Philip R. Sellinger announced.
Sekou Fofanah, 20, Shamaire Brown, 19, and Quamaire Brown, 19, all of Philadelphia, each pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to informations charging each with one count of conspiracy to commit cargo theft.
According to documents filed in this case and statements made in court:
From January 2021 through April 2023, Fofanah, Shamaire Brown, Quamaire Brown, as well as co-defendant Aboudramane Karamoko, and others, conspired to commit burglaries of UPS facilities throughout the United States, including warehouses in New Jersey, New York, Pennsylvania, Indiana, and Rhode Island. The defendants gained access to the UPS facilities by breaking the window of the loading bay door or by prying open the loading bay door. Once inside, they sought parcels marked with “lithium-ion battery” warnings, which indicated that the packages contained high-value electronic devices such as a cell phones. Fofanah, Shamaire Brown, Quamaire Brown, admitted that they participated in the burglary of at least 55 UPS facilities and stole items valued at approximately $1.6 million.
The charge of conspiracy to commit cargo theft carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation. He also acknowledged South Brunswick Police Department; Warwick, Rhode Island, Police Department; Clarkstown, New York, Police Department; Livonia, Michigan, Police Department; HSI State College; State College, Pennsylvania, Police Department; New York State Police; Fulton County Sheriff’s Office; Homeland Security Investigations Philadelphia and Rhode Island; New Jersey State Police; Philadelphia Police Department; Pennsylvania State Police; Ohio State Highway Patrol; Taylor Police Department; Brookfield Police Department; Summit County Prosecutor’s Office; and Centre County District Attorney’s Office, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Organized Crime/Gangs Unit in Newark.
The charges against Karamoko remain pending, and he is presumed innocent unless and until proven guilty.
sbrown.information.pdf qbrown.information.pdf fofanah.information.pdfThree Jamestown residents charged with drug and sex trafficking conspiracyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging Zaid Mendoza a/k/a Diamond, 45, Cora Waddington, 24, Kelvin O. Thomas, 41, all of Jamestown, NY, with narcotics conspiracy, conspiracy to commit sex trafficking by force and coercion, sex trafficking by force and coercion, and using and maintaining a drug-involved premises. The charges carry a maximum penalty of life in prison. In addition, defendants Mendoza and Waddington are charged with possessing a firearm in furtherance of drug trafficking crimes, and Mendoza is charged with being a felon in possession of a firearm.
Assistant U.S. Attorneys Joshua A. Violanti and Maeve E. Huggins, who are handling the case, stated that according to the indictment, Mendoza, Waddington, and Thomas conspired to sell fentanyl and methamphetamine in the Jamestown area, using a residence on West Main Street in the Town of Ellicott, NY, to conduct their drug trafficking activities. In addition, between October and December 2022, the defendants are accused of conspiring to force individuals to engage in commercial sex acts.
The superseding indictment is the result of an investigation by the Jamestown Police Department Metro Drug Task Force, under the direction of Chief Timothy Jackson; the Chautauqua County Sheriff’s Office County Drug Task Force, under the direction of Sheriff James Quattrone; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Assistant Special Agent-in-Charge Bryan DiGirolamo, New York Field Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarantino III, New York Field Division; and the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.
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.
This investigation is also assisted by the Western New York Human Trafficking Task Force, a multi-disciplinary task force that brings law enforcement and social service agencies together to identify and investigate human trafficking utilizing a victim centered and trauma informed response, was also part of this effort.
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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Three East Idaho Men Sentenced to Federal Prison for Separate Sex Crimes Involving Minor ChildrenRead the Press Release
POCATELLO – U.S. Attorney Josh Hurwit announced the outcomes in three separate East Idaho cases in which the defendants were sentenced to 21 years, 10 years, and 5 years in federal prison, respectively, for sex crimes against minor children.
“No one in Idaho law enforcement will tolerate this abhorrent conduct, and my Office is proud to continue our tradition of sending these types of offenders to federal prison, out of state, for long periods of time,” said U.S. Attorney Hurwit.
On March 26, 2024, Jared Michael Crow, 24, of Idaho Falls, was sentenced to 257 months in federal prison for coercion and enticement of a minor. According to court records, on March 9, 2022, the Bonneville County Sheriff’s Office began investigating Crow after receiving a report that he was having sexual conversations with minors at a high school in Idaho Falls. The case was referred for further investigation to the Idaho Crimes against Children Task (ICAC) Taskforce and Homeland Security Investigations (HSI). Eight minor-aged victims between the ages of 14 and 16 were identified. The investigation revealed that Crow followed a consistent predatory pattern of contacting minor females and providing alcohol, vape pens, and cash in exchange for sexually explicit images and sexual encounters.
“These child predators sought to exploit the most vulnerable, committing grave injustices that robs the victims of their youth,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Through our law enforcement and private sector partnerships, we will relentlessly pursue those that commit child exploitation crimes, ensuring they face the full extent of the law.”
Chief U.S. District Judge David C. Nye also ordered that Crow be placed on supervised release for fifteen years following his prison sentence.
In a separate case, Shawn Michael Young, 50, of Pocatello was sentenced to ten years in federal prison for possession of child pornography, on March 26, 2024. According to court records, in April 2018, the Chubbuck Police Department received a report that child pornography had been found on a cell phone belonging to Young. The Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) reviewed the files on Young’s phone. A total of 4,438 images of child pornography, including prepubescent children, were identified on the phone. In an interview, Young admitted to downloading and viewing images of child pornography.
Chief U.S. District Judge David C. Nye also ordered Young to be placed on supervised release for fifteen years after the end of his prison term.
“Shawn Young contributed to the proliferation of a deplorable crime. Every time an image is shared or viewed, that child continues to be victimized,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “The FBI and our partners are committed to protecting our children from those who prey on our most vulnerable.”
In another separate case, Bradley Allen Pedersen, 41, of Rupert, was sentenced to five years in federal prison for attempted coercion and enticement of a minor on March 25, 2024. According to court records, between August and September 2022, Pedersen communicated via the internet with an individual that was portrayed to be a 14-year-old female. That individual was actually an undercover investigator with the Rupert Police Department and Idaho Internet Crimes Against Children (ICAC) Task Force. During the online exchange, the investigator, posing as the child, informed Pedersen of the child’s name, where she lived, and that she was a 14-year-old female. Pedersen repeatedly requested to meet the child for sex. On September 16, 2022, Pedersen traveled to meet the 14-year-old female at a pre-arranged location. Pedersen was arrested when he arrived at the meeting location.
Chief U.S. District Judge David C. Nye also ordered Pedersen’s prison sentenced to be followed by ten years of supervised release.
The Crow case was investigated by Homeland Security Investigations in Idaho Falls, the Bonneville County Sheriff’s Office, the Idaho Falls Police Department, and the Idaho ICAC Task Force. The Young case was investigated by Homeland Security Investigations in Idaho Falls, the Chubbuck Police Department, and the Federal Bureau of Investigation. The Pedersen case was investigated by the Rupert Police Department and the Idaho ICAC Task Force. Assistant U.S. Attorney Justin Paskett and former Assistant U.S. Attorney John Shirts prosecuted these cases.
These case were 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Tax Preparer Sentenced to 3 Years in $6.7 Million Tax FraudRead the Press Release
A Waxahachie tax preparer was sentenced Thursday to three years in prison and ordered to pay more than $6.7 million in restitution to the IRS, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Bachary Rushid McGruder, the 45-year-old owner of M&M Enterprises and Consulting, TX, was indicted in November 2021 and pleaded guilty in November 2023 to aiding and assisting in the preparation of false tax returns. He was sentenced Thursday by U.S. District Judge Barbara M.G. Lynn.
During tax years 2015 through 2018, Mr. McGruder knowingly prepared more than 1,000 fraudulent tax returns for his clients, including fictitious Schedule A itemized deductions like gifts to charity, unreimbursed employee expenses (UEBE), and home mortgage interest; false Schedule C business losses; and false Residential Energy Credits (REC).
He included the false statements on clients’ tax returns without their knowledge, and had clients sign forms justifying the deductions and credits without explaining the forms’ contents to clients.
Mr. McGruder made his profits from the false tax returns by charging unusually exorbitant fees which were deducted from the individual tax refunds, charging clients as much as $2,800 for preparing their returns.
The fraud resulted in a tax loss of $6.73 million.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Josh Detzky prosecuted the case.
Swiss commodities trading company pleads guilty to foreign bribery schemeRead the Press Release
MIAMI – Trafigura Beheer B.V. (Trafigura), an international commodities trading company with its primary operations in Switzerland, pleaded guilty today and will pay over $126 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA), stemming from the company’s corrupt scheme to pay bribes to Brazilian government officials to secure business with Brazil’s state-owned and state-controlled oil company, Petróleo Brasileiro S.A. – Petrobras (Petrobras).
Trafigura pleaded guilty to conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the plea agreement, Trafigura will pay a criminal fine of $80,488,040 and forfeiture of $46,510,257. The department will credit up to $26,829,346 of the criminal fine against amounts Trafigura pays to resolve an investigation by law enforcement authorities in Brazil for related conduct.
“Our office will continue to target anyone who uses the Southern District of Florida to further foreign corrupt practices and bribery schemes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to work with our Criminal Division colleagues to identify and prosecute those responsible, including both individuals and corporations.”
“For more than a decade, Trafigura bribed Brazilian officials to illegally obtain business and reap over $61 million in profits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s guilty plea underscores that when companies pay bribes and undermine the rule of law, they will face significant penalties. The department remains determined to combat foreign bribery and hold accountable those who violate the law.”
According to court documents, between approximately 2003 and 2014, Trafigura and its co-conspirators paid bribes to Petrobras officials in order to obtain and retain business with Petrobras. Beginning in 2009, Trafigura and its co-conspirators, who met in Miami to discuss the bribery scheme, agreed to make bribe payments of up to 20 cents per barrel of oil products bought from or sold to Petrobras by Trafigura and to conceal the bribe payments through the use of shell companies, and by funneling payments through intermediaries who used offshore bank accounts to deliver cash to officials in Brazil. Trafigura profited approximately $61 million from the corrupt scheme.
“Trafigura’s corrupt practices violated the FCPA, and today’s resolution demonstrates that there are steep penalties for any company that tries to bribe government officials,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division.
The department reached this resolution with Trafigura based on a number of factors, including, among others, the nature and seriousness of the offense. Trafigura received credit for its cooperation with the department’s investigation and affirmative acceptance of responsibility, which included (i) providing timely updates on facts learned during its internal investigation; (ii) making factual presentations to the department; (iii) facilitating the interviews of employees and agents, including an employee located outside the United States, and arranging for counsel for employees where appropriate; (iv) producing relevant non-privileged documents and data to the department, including documents located outside the United States in ways that navigated foreign data privacy laws, accompanied by translations of certain documents; and (v) providing all relevant facts known to it, including information about individuals involved in the conduct. However, and particularly during the early phase of the department’s investigation, Trafigura failed to preserve and produce certain documents and evidence in a timely manner and, at times, took positions that were inconsistent with full cooperation.
Trafigura also engaged in remedial measures, including: (i) developing and implementing enhanced, risk-based policies and procedures relating to, among other things, anti-corruption, use of intermediaries and consultants, third party payments, and joint venture and equity investment risk assessment; (ii) enhancing processes and controls around high-risk transactions; (iii) investment of additional resources in employee training and compliance testing; (iv) enhancing ongoing compliance monitoring and controls testing processes; and (v) proactively discontinuing the use of third-party agents for business origination. However, Trafigura was slow to exercise disciplinary and remedial measures for certain employees whose conduct violated company policy.
In addition, Trafigura’s prior misconduct, though not recent, includes a 2006 guilty plea by Trafigura AG for violation of Title 18, U.S. Code, Section 542 (entry of goods by means of false statements); as well as Trafigura’s 2010 conviction of violating Netherlands export and environmental laws in connection with the discharge of petroleum waste in Côte d’Ivoire. While Trafigura ultimately accepted responsibility for its criminal conduct in this investigation, its early posture in resolution negotiations also caused significant delays and required the department to expend substantial efforts and resources to develop additional admissible evidence before Trafigura constructively reengaged in agreeing to a negotiated resolution. Accordingly, the department determined that the appropriate resolution in this case was for Trafigura to plead guilty to one count of conspiracy to violate the FCPA. The criminal fine calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the fifth percentile of the applicable guidelines fine range, which accounts for Trafigura’s cooperation and remediation, as well as its prior history.
The FBI Los Angeles Field Office is investigating the case, with assistance from the FBI’s International Corruption Unit.
Assistant U.S. Attorneys Eli S. Rubin and Joshua Paster, Trial Attorneys Natalie Kanerva and Clayton P. Solomon, and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Brazil, Switzerland, and Uruguay provided assistance in the matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
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Swiss Commodities Trading Company Pleads Guilty to Foreign Bribery SchemeRead the Press Release
Trafigura Beheer B.V. (Trafigura), an international commodities trading company with its primary operations in Switzerland, pleaded guilty today and will pay over $126 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA), stemming from the company’s corrupt scheme to pay bribes to Brazilian government officials to secure business with Brazil’s state-owned and state-controlled oil company, Petróleo Brasileiro S.A. – Petrobras (Petrobras).
Trafigura pleaded guilty to conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the plea agreement, Trafigura will pay a criminal fine of $80,488,040 and forfeiture of $46,510,257. The department will credit up to $26,829,346 of the criminal fine against amounts Trafigura pays to resolve an investigation by law enforcement authorities in Brazil for related conduct.
“For more than a decade, Trafigura bribed Brazilian officials to illegally obtain business and reap over $61 million in profits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s guilty plea underscores that when companies pay bribes and undermine the rule of law, they will face significant penalties. The department remains determined to combat foreign bribery and hold accountable those who violate the law.”
“Our office will continue to target anyone who uses the Southern District of Florida to further foreign corrupt practices and bribery schemes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to work with our Criminal Division colleagues to identify and prosecute those responsible, including both individuals and corporations.”
According to court documents, between approximately 2003 and 2014, Trafigura and its co-conspirators paid bribes to Petrobras officials in order to obtain and retain business with Petrobras. Beginning in 2009, Trafigura and its co-conspirators, who met in Miami to discuss the bribery scheme, agreed to make bribe payments of up to 20 cents per barrel of oil products bought from or sold to Petrobras by Trafigura and to conceal the bribe payments through the use of shell companies, and by funneling payments through intermediaries who used offshore bank accounts to deliver cash to officials in Brazil. Trafigura profited approximately $61 million from the corrupt scheme.
“Trafigura’s corrupt practices violated the FCPA, and today’s resolution demonstrates that there are steep penalties for any company that tries to bribe government officials,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division.
The department reached this resolution with Trafigura based on a number of factors, including, among others, the nature and seriousness of the offense. Trafigura received credit for its cooperation with the department’s investigation and affirmative acceptance of responsibility, which included (i) providing timely updates on facts learned during its internal investigation; (ii) making factual presentations to the department; (iii) facilitating the interviews of employees and agents, including an employee located outside the United States, and arranging for counsel for employees where appropriate; (iv) producing relevant non-privileged documents and data to the department, including documents located outside the United States in ways that navigated foreign data privacy laws, accompanied by translations of certain documents; and (v) providing all relevant facts known to it, including information about individuals involved in the conduct. However, and particularly during the early phase of the department’s investigation, Trafigura failed to preserve and produce certain documents and evidence in a timely manner and, at times, took positions that were inconsistent with full cooperation.
Trafigura also engaged in remedial measures, including: (i) developing and implementing enhanced, risk-based policies and procedures relating to, among other things, anti-corruption, use of intermediaries and consultants, third party payments, and joint venture and equity investment risk assessment; (ii) enhancing processes and controls around high-risk transactions; (iii) investment of additional resources in employee training and compliance testing; (iv) enhancing ongoing compliance monitoring and controls testing processes; and (v) proactively discontinuing the use of third-party agents for business origination. However, Trafigura was slow to exercise disciplinary and remedial measures for certain employees whose conduct violated company policy.
In addition, Trafigura’s prior misconduct, though not recent, includes a 2006 guilty plea by Trafigura AG for entry of goods by means of false statements; as well as Trafigura’s 2010 conviction of violating Netherlands export and environmental laws in connection with the discharge of petroleum waste in Côte d’Ivoire. While Trafigura ultimately accepted responsibility for its criminal conduct in this investigation, its early posture in resolution negotiations also caused significant delays and required the department to expend substantial efforts and resources to develop additional admissible evidence before Trafigura constructively reengaged in agreeing to a negotiated resolution. Accordingly, the department determined that the appropriate resolution in this case was for Trafigura to plead guilty to one count of conspiracy to violate the FCPA. The criminal fine calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the fifth percentile of the applicable guidelines fine range, which accounts for Trafigura’s cooperation and remediation, as well as its prior history.
The FBI Los Angeles Field Office is investigating the case, with assistance from the FBI’s International Corruption Unit.
Trial Attorneys Natalie Kanerva and Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Eli S. Rubin and Joshua Paster for the Southern District of Florida are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Brazil, Switzerland, and Uruguay provided assistance in the matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Information Plea AgreementStockton Beekeeper Charged with Conspiring to Receive and Sell Smuggled Illegal PesticidesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Paulo Perez-Mendoza, 44, of Stockton, charging him with conspiring to receive and sell smuggled pesticides into the United States and the unlawful distribution and sale of unregistered pesticides, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Jan. 1, 2019 and March 18, 2024, Perez recruited another individual to smuggle illegal pesticides into the United States from Mexico and deliver them to Perez at his residential business, Perez Generation Honeybee Ranch, in Stockton. Between Sept. 9, 2020, and July 12, 2022, Perez purchased the Mexican pesticides 1,000 to 1,500 liters at a time and paid a total of approximately $476,680 for the banned product. Perez resold the pesticides to beekeepers in other states, including Oregon, Washington, Georgia, and Florida.
Only pesticides registered with the EPA may be imported or sold in the United States. They must bear their EPA registration number on their labels, preceded by the phrase “EPA Registration No.” or “EPA Reg. No.” In addition, all required information on a label must appear in the English language. The pesticides involved in this conspiracy were primarily Taktic and Bovitraz, which contain the active ingredient amitraz at an emulsifiable concentration of 12.5%, which, in this form, is an unregistered pesticide in the United States.
This case is the product of an investigation by the U.S. Environmental Protection Agency Criminal Investigation Division with assistance from Homeland Security Investigations and the Food and Drug Administration Office of Criminal Investigations. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Perez is scheduled for arraignment on March 29, 2024. If convicted of the conspiracy charge, Perez faces a maximum statutory penalty of five years in prison and a $250,000 fine. He faces a maximum penalty of one year in prison and a $25,000 fine if convicted of the unlawful sale and distribution of pesticides. 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.
Statesville Man Sentenced to 15 Years in Prison for Possession and Receipt of Child PornographyRead the Press Release
STATESVILLE, N.C. – Jessie Leroy Glass, Jr., 50, of Statesville, was sentenced to 180 months in prison followed by a lifetime of supervised release for possession and receipt of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Glass to register as a sex offender after he is released from prison and to pay $5,000 in fines and $6,000 in restitution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Kyle D. Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to trial evidence, witness testimony and filed court documents, between January and February 2020, Glass received and possessed images and videos of child pornography. As trial evidence established, the Iredell County Sheriff’s Office initiated an investigation into Glass after an individual alerted law enforcement about Glass’s possession of child pornography. Over the course of the investigation, law enforcement recovered two cell phones associated with Glass. A forensic analysis of the cell phones revealed that they contained images and videos depicting the sexual abuse of children, including infants and toddlers. In June 2023, a federal jury convicted Glass on all counts.
The Court ordered that Glass not possess electronic devices while he was out on bond both before and after the jury convicted him at trial. At today’s sentencing hearing, the Court granted the government’s request for a higher sentence after the Court found that Glass violated the conditions of his bond on two occasions by possessing electronic devices, including cell phones, that he hid from his supervising probation officer. One of the secret cell phones that Glass possessed after his conviction and while he was on bond contained cartoon images depicting the sexual abuse of children.
Glass is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the FBI, HSI, and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant United States Attorneys Kimlani Ford and Stephanie Spaugh of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Paul Man Pleads Guilty to Illegal Possession of a Machine Gun, Crashed Stolen Vehicle Through a Restaurant During Police ChaseRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to illegal possession of a machine gun following a shooting incident that ended with the defendant crashing the stolen vehicle he was driving through an unoccupied restaurant, announced United States Attorney Andrew M. Luger.
According to court documents, on the afternoon of February 15, 2023, officers with the St. Paul Police Department responded to a shots-fired 911 call in the area of Luella Street North and Wilson Avenue. Witnesses reported hearing automatic gunfire coming from a black Jeep traveling westbound on Wilson Avenue that was apparently chasing another Jeep. Within a few blocks of the area, officers located a black Jeep with a rear window that appeared to have been shot up. When officers turned around in their squad car to follow the Jeep, it led officers on a high-speed chase until it eventually hit another vehicle and crashed through the Ox Cart Ale House restaurant in St. Paul, which was unoccupied at the time. Officers saw Moeshea Isiah Hart, 19, exit the Jeep and detained him. On the floor of the restaurant, near the Jeep’s driver’s side door, officers recovered a loaded Glock model 45 9mm pistol with an inserted high-capacity magazine and an attached switch, a conversion device that turns a handgun into a fully automatic machine gun. Approximately 11 9mm discharged cartridge casings were located in and around the driver’s area of the Jeep, including one outside the Jeep on the floor of the restaurant. Police later determined that the Jeep had been reported stolen from St. Paul in December 2022.
Hart pleaded guilty yesterday in U.S. District Court before Judge Jerry W. Blackwell to one count of possession of a machine gun. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
St. Louis County Man Sentenced to 20 Years in Prison for Repeatedly Robbing QuikTrip StoresRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a man who repeatedly robbed St. Louis area QuikTrip stores to 20 years in prison.
Terrence Gleason, now 53, of Bel Ridge, Missouri, stole cigarettes from or robbed three QuikTrip stores, including one in Bel Ridge that he victimized three times.
On Dec. 5, 2021, at about 2:30 a.m., Gleason entered the QuikTrip at 9099 Natural Bridge in Bel Ridge, walked behind the counter and began filling a bag with cartons of cigarettes. When the clerk tried to activate an alarm, Gleason lifted his shirt to show a holstered handgun. Gleason then left with the stolen cigarettes.
Gleason returned about 24 hours later. The same clerk was working. Gleason had one hand in the front pocket of his coat and the clerk believed Gleason was armed because of his actions the night before. Gleason demanded cigarettes and left with multiple cartons.
On Dec. 10, 2021, at about 3:00 a.m., Gleason and another man entered the QuikTrip at 5909 Howdershell Road in Hazelwood. The pair walked behind the checkout counter and began removing cartons of cigarettes. When an employee tried to trigger the alarm, Gleason’s accomplice pulled back his jacket, displayed a firearm and said, “Press something, I dare you.” Gleason and the man left with multiple cartons of cigarettes.
On Dec. 11, 2021, at approximately 4:12 a.m., Gleason returned to the Bel Ridge QuikTrip, walked up to the counter, reached over it, and opened a drawer where cigarette cartons were stored. He grabbed several cartons, then approached the clerk who witnessed the two prior incidents and said, “I need Newports,” while grabbing at his waistband. The clerk, who believed Gleason had a gun and tried to comply, said they were out. Gleason walked behind the counter, grabbed several packages of other cigarettes and left.
On Dec. 12, 2021, at about 4:30 a.m., Gleason entered the QuikTrip located at 11150 St. Charles Rock Road in St. Ann and robbed the store at gunpoint, taking $85 from one cash register.
Gleason pleaded guilty in August in U.S. District Court in St. Louis to three robbery charges, one charge of possessing and brandishing a firearm in furtherance of a crime of violence and one count of possession of a firearm in furtherance of a crime of violence.
The FBI, the Normandy Police Department, the St. Ann Police Department, and the Hazelwood Police Department investigated the case. Assistant U.S. Attorney Jennifer Szczucinski prosecuted the case.
San Francisco Man Sentenced for Trafficking FirearmsRead the Press Release
SACRAMENTO, Calif. — Rondell Cramer, 45, of San Francisco, was sentenced today to five years in prison to be followed by three years of supervised release for unlawfully dealing in firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 1, 2022, while driving in Fairfield, Cramer was pulled over for driving a vehicle without a license plate. The officer arrested Cramer, who was then wanted on two outstanding felony warrants. A search of his vehicle resulted in the discovery of a Glock 9 mm caliber firearm, as well as a bill of sale for another firearm and stolen merchandise, much of which still had antitheft tags on them. Cramer is not allowed to possess firearms or ammunition because he has previously been convicted of six felony offenses, including a prior conviction for being a felon in possession of a firearm. A search of Cramer’s phones revealed multiple conversations showing that Cramer was buying firearms in Arizona under an alias, and then selling them in California. Follow-on investigation by the Bureau of Alcohol, Tobacco and Firearms (ATF) confirmed that Cramer had been trafficking firearms since at least August 2020.
This case was the product of an investigation by the California Highway Patrol and the ATF. Assistant U.S. Attorney Adrian T. Kinsella 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
The Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force is one of five cross-jurisdictional strike forces launched by the U.S. Department of Justice in July 2021 to disrupt illegal firearms trafficking in key regions across the country. Each strike force is led by designated U.S. Attorneys, who collaborate with the ATF and with state and local law enforcement partners within their own jurisdiction as well as law enforcement partners in areas where illegally trafficked guns originate. The strike forces use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes, and are an important part of the Department’s Comprehensive Violent Crime Reduction Strategy.
Samuel Bankman-Fried Sentenced to 25 Years for His Orchestration of Multiple Fraudulent SchemesRead the Press Release
Samuel Bankman-Fried, also known as SBF, 32, of Stanford, California, was sentenced today to 25 years in prison, three years of supervised release, and ordered to pay $11 billion in forfeiture for his orchestration of multiple fraudulent schemes. Bankman-Fried, who was the founder of the cryptocurrency exchange FTX and the cryptocurrency trading firm Alameda Research, misappropriated billions of dollars of customer funds deposited with FTX, defrauded investors in FTX of more than $1.7 billion, and defrauded lenders to Alameda of more than $1.3 billion. Bankman-Fried was previously found guilty on two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering, following a one-month trial before U.S. District Judge Lewis A. Kaplan, who imposed today’s sentence.
“There are serious consequences for defrauding customers and investors,” said Attorney General Merrick B. Garland, “Anyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice. I am grateful to the U.S. Attorney’s Office for the Southern District of New York and the FBI for their outstanding work in bringing Mr. Bankman-Fried to justice.”
“The FBI will aggressively investigate individuals, like Samuel Bankman-Fried, who engage in fraudulent schemes at the expense of the American public and our financial systems,” said FBI Director Christopher Wray. “We are proud of the successful collaboration that ended this massive mismanagement and misappropriation of billions of dollars. Today's sentencing should serve as a warning to others looking to use fraudulent means for personal gain — there are consequences for your actions.”
“Samuel Bankman-Fried orchestrated one of the largest financial frauds in history, stealing over $8 billion of his customers’ money,” said U.S. Attorney Damian Williams for the Southern District of New York. “His deliberate and ongoing lies demonstrated a brazen disregard for customers’ expectations and disrespect for the rule of law, all so that he could secretly use his customers’ money to expand his own power and influence. The scale of his crimes is measured not just by the amount of money that was stolen, but by the extraordinary harm caused to victims, who in some cases had their life savings wiped out overnight. As a result of his unprecedented fraud, Bankman-Fried faces 25 years in prison and forfeiture of over $11 billion dollars. Today’s sentence will prevent the defendant from ever again committing fraud and is an important message to others who might be tempted to engage in financial crimes that justice will be swift, and the consequences will be severe.”
According to the allegations contained in the indictment, the evidence offered at trial, and matters included in public filings:
Samuel Bankman-Fried was the founder and chief executive officer of FTX, an international cryptocurrency exchange. From 2019 to 2022, Bankman-Fried was the leader and mastermind of a scheme to defraud customers of FTX by misappropriating billions of dollars of those customers’ funds. Bankman-Fried took FTX customer funds for his personal use, to make investments and millions of dollars of political contributions to candidates from both parties, and to repay billions of dollars in loans owed by Alameda Research, a cryptocurrency trading fund that Bankman-Fried also founded. Bankman-Fried also defrauded lenders to Alameda and equity investors in FTX by providing them false and misleading financial information that concealed his misuse of customer deposits.
Samuel Bankman-Fried repeatedly told his customers, his investors, and the public that customer deposits into FTX were kept safe and were held in custody for the customers, that customer deposits were kept separate from company assets, and that customer deposits would not be used by FTX. He also repeatedly claimed that his trading company, Alameda, did not have any privileged access to FTX and did not receive special treatment from FTX. Those statements were false, and Bankman-Fried in fact channeled billions of dollars in customer deposits from FTX to Alameda, and then used those funds to make investments for his own benefit, to make political contributions, and to spend on real estate, among other expenditures. He employed a variety of fraudulent means to perpetrate this fraud. For instance, Bankman-Fried directed co-conspirators to alter FTX’s computer code to allow Alameda to withdraw effectively unlimited amounts of cryptocurrency from the exchange. Bankman-Fried also made false statements to financial institutions to conceal his misuse of customer dollar deposits. And he directed the creation of false financial statements for Alameda’s lenders, inflated FTX’s revenues and profits in numbers provided to investors, and backdated contracts and other documents to conceal his fraudulent conduct.
Judge Kaplan authorized the government to use the funds recovered through the forfeiture process to provide compensation to victims of Bankman-Fried’s crimes.
The FBI investigated the case.
The Southern District of New York’s Securities and Commodities Fraud Task Force, with assistance from the office’s Illicit Finance & Money Laundering and Complex Frauds and Cybercrime Units are handling the case. Assistant U.S. Attorneys Nicolas Roos, Danielle Sassoon, Samuel Raymond, Thane Rehn, and Danielle Kudla are prosecuting the case.
Samuel Bankman-Fried Sentenced to 25 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; and James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, announced that SAMUEL BANKMAN-FRIED, a/k/a “SBF,” was sentenced today to 25 years in prison for his orchestration of multiple fraudulent schemes. The defendant, who was the founder of the cryptocurrency exchange FTX and the cryptocurrency trading firm Alameda Research, misappropriated billions of dollars of customer funds deposited with FTX, defrauded investors in FTX of more than $1.7 billion, and defrauded lenders to Alameda of more than $1.3 billion. BANKMAN-FRIED was previously found guilty on two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering following a one-month trial before U.S. District Judge Lewis A. Kaplan, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Samuel Bankman-Fried orchestrated one of the largest financial frauds in history, stealing over $8 billion of his customers’ money. His deliberate and ongoing lies demonstrated a brazen disregard for customers’ expectations and disrespect for the rule of law, all so that he could secretly use his customers’ money to expand his own power and influence. The scale of his crimes is measured not just by the amount of money that was stolen, but by the extraordinary harm caused to victims, who in some cases had their life savings wiped out overnight. As a result of his unprecedented fraud, Bankman-Fried faces 25 years in prison and forfeiture of over $11 billion. Today’s sentence will prevent the defendant from ever again committing fraud and is an important message to others who might be tempted to engage in financial crimes that justice will be swift, and the consequences will be severe.”
Attorney General Merrick B. Garland said: “There are serious consequences for defrauding customers and investors. Anyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice. I am grateful to the U.S. Attorney’s Office for the Southern District of New York and the FBI for their outstanding work in bringing Mr. Bankman-Fried to justice.”
FBI Assistant Director in Charge James Smith said: “Sam Bankman-Fried was justly sentenced to significant time behind bars for his multibillion-dollar defrauding of FTX customers. The FBI will remain relentless in our efforts to ensure the perpetrators of fraud—no matter the nature—face appropriate punishment in the criminal justice system.”
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
BANKMAN-FRIED was the founder and chief executive officer of FTX, an international cryptocurrency exchange. From 2019 to 2022, BANKMAN-FRIED was the leader and mastermind of a scheme to defraud customers of FTX by misappropriating billions of dollars of those customers’ funds. BANKMAN-FRIED took FTX customer funds for his personal use, to make investments and millions of dollars of political contributions to candidates from both parties, and to repay billions of dollars in loans owed by Alameda Research, a cryptocurrency trading fund that BANKMAN-FRIED also founded. BANKMAN-FRIED also defrauded lenders to Alameda and equity investors in FTX by providing them false and misleading financial information that concealed his misuse of customer deposits.
BANKMAN-FRIED repeatedly told his customers, his investors, and the public that customer deposits into FTX were kept safe and were held in custody for the customers, that customer deposits were kept separate from company assets, and that customer deposits would not be used by FTX. He also repeatedly claimed that his trading company, Alameda, did not have any privileged access to FTX and did not receive special treatment from FTX. Those statements were false, and BANKMAN-FRIED in fact channeled billions of dollars in customer deposits from FTX to Alameda, and then used those funds to make investments for his own benefit, to make political contributions, and to spend on real estate, among other expenditures. He employed a variety of fraudulent means to perpetrate this fraud. For instance, BANKMAN-FRIED directed co-conspirators to alter FTX’s computer code to allow Alameda to withdraw effectively unlimited amounts of cryptocurrency from the exchange and made false statements to financial institutions to conceal his misuse of customer dollar deposits. He also directed the creation of false financial statements for Alameda’s lenders, inflated FTX’s revenues and profits in numbers provided to investors, and backdated contracts and other documents to conceal his fraudulent conduct.
* * *
In addition to the prison term, BANKMAN-FRIED, 32, of Stanford, California, was sentenced to three years of supervised release and over $11 billion in forfeiture. Judge Kaplan authorized the Government to use the funds recovered through the forfeiture process to provide compensation to victims of BANKMAN-FRIED’s crimes.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force, with assistance from the Office’s Illicit Finance & Money Laundering and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Nicolas Roos, Danielle Sassoon, Samuel Raymond, Thane Rehn, and Danielle Kudla are in charge of the prosecution.
Russian National Sentenced to 15 Years for $11 Million Wire Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Russian national was sentenced in federal court today for his role in a conspiracy to use stolen identities to file thousands of federal income tax returns that claimed more than $11 million in fraudulent refunds.
Anton Vikharev, 32, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole. The court also ordered Vikharev to pay $2,020,569 in restitution and to forfeit to the government $537,000.
On July 26, 2023, Vikharev pleaded guilty to one count of conspiracy to commit wire fraud. Vikharev admitted that he engaged in a scheme to defraud the United States by filing false and fraudulent federal income tax returns using stolen identities from January 2015 through March 1, 2018.
In this scheme, 7,167 false and fraudulent tax returns were filed for tax years 2011- 2016. The returns, which used the stolen names and Social Security numbers of other people, claimed $11,178,361 in fraudulent refunds. The Internal Revenue Service actually paid at least $2,020,569 in fraudulent tax refunds.
Fraudulent refunds were deposited into bank accounts the conspirators controlled. Vikharev’s role in the conspiracy was to withdraw fraudulent tax refunds from bank ATMs in cash, launder the cash through gold purchases and through high volume cash deposits into other accounts, and send the stolen money to Russia via wire transfers. Conspirators bought gold bullion with some of the proceeds. After the proceeds were laundered, conspirators wired at least $1,411,082 to accounts in Russia. Vikharev personally received $156,120 in proceeds wired to Russian bank accounts in his control.
Vikharev laundered some of the proceeds from the fraud conspiracy by purchasing a total of $537,000 in gold, some of which was sold with the proceeds wired to co-conspirators in Russia, which is the basis for the forfeiture money judgment.
Vikharev left the United States in early July 2017. He exited the United States at the southern border into Mexico. From Mexico, Vikharev flew to Cuba and then to Russia. On June 4, 2021, Vikharev was arrested in Toronto, Canada. Vikharev was detained in custody while he litigated extradition to the United States for approximately two years.
According to court documents, Vikharev, a Russian citizen, originally came to the United States on June 12, 2012, on a student visa that expired on Sept. 9, 2012. Vikharev stayed illegally in the United States for five more years. Under the terms of his plea agreement, Vikharev agreed to a judicial order of removal from the United States following incarceration.
Two co-defendants in this case are last known to be in Russia, which does not have an extradition treaty with the United States.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigations.
Robeson County Murder Suspect Accused of Shooting Sheriff’s Deputies Charged in Five Count Federal IndictmentRead the Press Release
RALEIGH, N.C. – A Robeson County murder suspect accused of shooting two Robeson County Sheriff’s deputies now faces five federal charges including one drug trafficking charge, three charges related to firearms, including possession of a machine gun, and carjacking with intent to cause serious bodily injury. The carjacking charge was included in a previous criminal complaint. Shawn Tobin Locklear, Jr., age 20, faces a minimum of 40 years and a maximum of life in prison if convicted of all crimes.
“Violence towards law enforcement will never be tolerated in North Carolina. We will use every resource necessary to hold accountable anyone who endangers police or first responders,” said U.S. Attorney Michael Easley. “The conduct alleged in the indictment endangered the lives of two Robeson County Deputies and this indictment should serve as a warning to anyone who would consider similar conduct.”
According to the indictment, Locklear is alleged to have possessed marijuana, and a machine gun in September of 2023. The indictment and previous complaint further allege that Locklear shot and injured two Robeson County Sheriff’s deputies who were attempting to serve an arrest warrant on him. After being struck by gunfire, both deputies took cover behind their patrol car. Locklear is then alleged to have entered the driver’s side of the patrol car and put the car into reverse as one deputy was located on the ground behind the patrol vehicle. The deputy was able to push himself partially out of the way before Locklear drove over his leg with the car. Locklear was able to drive away in the patrol vehicle and fled the scene. The incident was captured on the deputies’ body cameras. Locklear is also alleged to have discharged a firearm on the date of the carjacking.
Locklear faces the following federal charge:
- Possession with intent to distribute marijuana;
- Possession of a machinegun in furtherance of a drug trafficking crime;
- Possession of a machinegun;
- Carjacking resulting in serious bodily injury; and
- Discharging a firearm in conjunction with a crime of violence.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case, and Assistant U.S. Attorneys Ashley Foxx and Robert Dodson are prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:24-cr-00033-FL-BM.
A criminal indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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Repeat Felon Who Possessed Stolen Gun and Drugs Sentenced to over Nine Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Wilmington man was sentenced on March 25, 2024, to more than nine years in federal prison for his 2021 possession of a stolen gun in the area of 24th and Carter Streets in Wilmington. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents, Jethroe Tickles was arrested by the Wilmington Police Department after police found a stolen gun in his possession during a traffic stop. While searching the car, officers also found approximately one ounce of marijuana, a pill bottle containing 113 Ecstasy pills, 57 Hydrocodone pills, Alprazolam, and other miscellaneous pills. Upon searching Mr. Tickles, officers recovered more than $3,000 in cash. At the sentencing hearing, the government highlighted Mr. Tickles’ criminal convictions, which prohibit him from possessing firearms.
U.S. Attorney Weiss stated, “The combination of guns and drugs fuels the violence in our communities. This sentence reflects the severity of Mr. Tickles’ disregard for the rule of law. Our prosecutors will continue to partner with the Wilmington Police Department and the Bureau of Alcohol, Tobacco, and Explosives to protect our communities from gun violence and to hold individuals who choose to violate the law accountable.”
“The combination of drugs and firearms is one that is destined to end in violence. It is not a matter of if, but when someone will end up hurt or worse,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “ATF and our law enforcement partners will continue working every day to identify, investigate, and incarcerate the individuals who threaten violence in our communities.”
Assistant U.S. Attorney Jennifer K. Welsh prosecuted the case, which was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-cr-0023 (MN).
Readout of Justice Department’s Procurement Collusion Strike Force’s Summit in AtlantaRead the Press Release
The Justice Department, U.S. Attorney’s Office for the Northern District of Georgia and the Procurement Collusion Strike Force (PCSF) hosted a summit today where procurement officials and law enforcement partners from across the Atlanta metropolitan area convened to raise awareness of collusion, corruption and fraud schemes that target government spending. U.S. Attorney Ryan K. Buchanan and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia, PCSF Director Daniel W. Glad, Trial Attorneys Brittany E. McClure and Vijay N. Rao of the Justice Department’s Antitrust Division and federal law enforcement partners were joined by representatives from state and local government agencies.
During the summit, U.S. Attorney Buchanan and Director Glad reflected on the PCSF’s growth and success since its inception in 2019. They detailed additional resources the department has dedicated to combat procurement collusion and emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending. They also sharpened the PCSF’s focus on the challenges, risks and opportunities posed by significant government spending in and around the Atlanta metropolitan area under the Investment in Infrastructure and Jobs Act, which will provide billions in federal spending in Georgia over the next several years.
U.S. Attorney Buchanan and Director Glad also outlined the ways that federal, state and local government agencies can partner with the PCSF to address these emerging threats. Other topics discussed at the summit included ways that government agencies can strengthen their procurement processes to better protect taxpayer funds and meet the mission to provide services to residents. Summit participants included representatives from the FBI, Department of Transportation Office of Inspector General, Environmental Protection Agency Office of Inspector General, Department of Commerce Office of Inspector General, Department of Homeland Security Office of Inspector General, General Services Administration Office of Inspector General, Air Force Office of Special Investigations, Department of the Army Criminal Investigative Division, Defense Criminal Investigative Service, Georgia Department of Education, Georgia Department of Transportation and City of Atlanta Office of Inspector General.
The PCSF is the Justice Department’s coordinated, national law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement, grant and program funding at all levels of government — federal, state and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorneys’ Offices around the country, the FBI and Inspectors General for multiple federal agencies.
Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving over $500 million worth of government contracts. The summit marks the department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force.
Trial Attorney McClure, Director Glad, Trial Attorney Rao, U.S. Attorney Buchanan and Assistant U.S. Attorney Huber attend the summit.Prior felon arrested for cyberstalking previous victimRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Daniel Richter, 45, was arrested and charged by criminal complaint with cyberstalking. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that, for a short time in 2002, Richter sent bizarre emails to and followed a victim he was acquainted with at the University at Buffalo. In 2007, Richter started sending post-cards with strange messages to the victim and leaving harassing voice-mail messages on her work phone. On April 23, 2008, the Niagara County Sheriff’s Office arrested Richter, and he pleaded guilty to Stalking in the Fourth Degree, and was given a fine and an Order of Protection was issued against Richter.
In 2018, Richter renewed unwanted communications, via phone calls and emails, with the victim. In September 2020, he was convicted of interstate communication of threat to injure and sentenced to serve 24 months in federal prison. In December 2023, after completing his term of supervised release for his federal conviction, Richter once again renewed his attempts to contact the victim. Between December 25 and February 6, 2024, the victim received approximately 94 voice messages from Richter. In addition, between February 6, 2024, and his arrest today, Richter sent over 600 emails to the victim, which include incoherent rambling and sexual and/or threatening comments directed at the victim. In one of those emails, Richter stated that he would travel to Western New York to see her personally on March 28th. Law enforcement located Richter this morning at a hotel an Amherst, NY, after he had flown to Buffalo from Los Angeles, California. In Richter’s hotel room, investigators recovered a photograph of the victim, the victim’s contact information, a ski mask, and hair dye.
Richter made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was held pending a detention hearing on April 4, 2024, at 11:00 a.m.
The complaint is the result of an investigation by the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti, and Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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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Previously Convicted Felon Sentenced to 11 and a Half Years in Prison for Drug Trafficking and Possession of Firearm While on Federal Supervised ReleaseRead the Press Release
PITTSBURGH, Pa.- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 138 months in federal prison for fentanyl and heroin trafficking and possession of a firearm by a convicted felon while on federal supervised release for a prior conviction, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Nora Barry Fischer imposed the sentence on Todd Hill, 38, also ordering Hill to serve eight years of supervised release following his prison sentence.
Hill previously pleaded guilty in this case to (1) conspiring to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, (2) possessing with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin, and (3) possessing a firearm after a felony conviction. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Prior to sentencing, the Court was informed that, in 2020 and 2021, Hill trafficked hundreds of grams of fentanyl and heroin and unlawfully possessed a firearm while on federal supervised release following his incarceration for a 2016 federal conviction for conspiring to distribute heroin. He also engaged in the heroin trafficking that led to his 2016 conviction while on a previous term of federal supervised release, following a 2007 federal conviction and prison sentence for possessing cocaine base with intent to distribute.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Pennsylvania State Police; Pittsburgh Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Marshals Service; and Federal Bureau of Investigation for the investigation leading to the successful prosecution of Hill.
Portland Man Caught Selling Drugs to Minors Online Faces Federal ChargesRead the Press Release
PORTLAND, Ore.—A Portland man is facing federal charges after he was caught using Telegram, an encrypted messaging service, to sell various controlled substances to minors.
Rocky Allan Rainwater, 24, has been charged by criminal complaint with distributing and possessing with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, early in 2024, law enforcement obtained information that an individual, later determined to be Rainwater, was allegedly using Telegram to advertise the sale of various illegal narcotics including cocaine, psilocybin mushrooms, MDMA, ketamine, LSD, Xanax, Adderall, and marijuana. In addition to delivering drugs locally, Rainwater, using the Telegram username “smokeyinpdx,” also advertised that he would sell and ship drugs to out-of-state customers. Investigators soon determined that Rainwater was advertising and selling drugs to both adults and minors.
On March 22, 2024, law enforcement arrested Rainwater while he was engaged in a cocaine sale. Investigators searched his vehicle and located a loaded .22 caliber pistol, 73 grams of cocaine, 465 grams of psilocybin mushrooms, and smaller quantities of LSD and dextroamphetamine. A subsequent search of Rainwater’s Portland residence returned additional quantities of cocaine, LSD, and methamphetamine, an electronic scale, .22 caliber ammunition, and $1,490 in cash.
Rainwater made his first appearance in federal court Monday before a U.S. Magistrate Judge. Today, he was ordered detained pending further court proceedings.
This case was investigated by the FBI and Clackamas County Interagency Task Force (CCITF). It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
CCITF, led by the Clackamas County Sheriff’s Office, works to disrupt and dismantle drug trafficking organizations operating in and around Clackamas County, and reduce illegal drugs and related crimes throughout the community. The task force is comprised of members of the Clackamas County Sheriff’s Office, Canby Police Department, Oregon State Police, FBI, and Homeland Security Investigations (HSI). CCITF is supported by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced for Directing a Scheme to Steal Diesel Fuel from Gas Stations and for Illegally Possessing FirearmsRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that William Cole, 32, of Philadelphia, PA, was sentenced to 70 months’ imprisonment and three years of supervised release by United States District Court Judge Gerald A. McHugh for directing a scheme to steal diesel fuel from gas stations and illegally possessing firearms.
In October 2023, Cole pleaded guilty to one count of conspiracy to commit access device fraud and one count of possession of a firearm by a felon.
From March 2021 through June 21, 2023, the defendant purchased stolen credit card data and had co-conspirators fill up auxiliary tanks at Philadelphia-area gas stations, at his direction and using his trucks, with more than $750,000 worth of diesel fuel, using those unlawfully obtained credit card numbers. Cole would then resell the diesel fuel at a discounted rate.
On June 26, 2023, during a court-authorized search of Cole’s residence, Homeland Security Investigations recovered a Smith and Wesson semi-automatic pistol loaded with 15 rounds of ammunition and a Glock 27, which had been modified with a conversion kit into a fully automatic pistol. Cole had previously been convicted of state drug and gun offenses in Pennsylvania and was not permitted to be in possession of firearms.
“Cole fueled his scheme using other people’s stolen information and armed himself with guns he knew he shouldn’t have,” said U.S. Attorney Romero. “This sentence holds him accountable for both his financial and firearms offenses. We’ll continue to work with HSI and our other valued partners to prosecute repeat offenders like William Cole.”
“Fraud through the manipulation of financial systems is one of the core investigative priorities of Homeland Security Investigations,” said William S. Walker, Special Agent in Charge of HSI Philadelphia. “Convicted felons like William Cole need to be held accountable for perpetrating fraud schemes targeting commercial businesses. Cases like this one are only accomplished when dedicated agents and prosecutors work side-by-side to bring fraudsters to justice.”
The case was investigated by Homeland Security Investigations (HSI) Philadelphia’s El Dorado – Cyber Crimes Investigations Task Force (C2iTF) and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Peoria Man Sentenced to 10 Years in Prison for Attempting to Entice a MinorRead the Press Release
BENTON, Ill. – A district judge sentenced a man from Peoria, Illinois, to spend 10 years in prison after he traveled to southern Illinois to engage in sexual activity with a purported minor.
Mitch M. Titus, 34, pleaded guilty to one count of attempted enticement of a minor on Dec. 14, 2023.
“This federal prison sentence reflects the serious threat the defendant could have had on an actual minor, who luckily in this case was purported,” said U.S. Attorney Rachelle Aud Crowe. “The U.S. Attorney’s Office and the Illinois State Police are working in lockstep to prosecute minor enticement cases and apprehend those intent on victimizing children.”
According to documents and evidence presented during court hearings, Titus responded to a forum on social media posted by an undercover detective with the Illinois State Police posing as an inexperienced minor. Titus had sexually explicit conversations with who he believed to be a 14-year-old minor from September 27 through October 4, 2022.
“Preying on youth is a diabolical crime and ISP is relentless when it comes to investigating predators,” said ISP Director Brendan F. Kelly. “Through our partnerships with our prosecutorial partners at all levels, and training with the Internet Crimes Against Children Task Force, we will continue to identify child predators and successfully bring them to justice."
As the conversation progressed, Titus arranged to meet the purported minor in Carbondale, where instead law enforcement was waiting and detained him.
The Illinois State Police and the Illinois Attorney General’s Office Internet Crimes Against Children Taskforce contributed to the investigation. Assistant U.S. Attorney Casey Bloodworth prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
Passaic County Man Charged with Using Explosive to Damage Chase Bank ATMRead the Press Release
NEWARK, N.J. – A Passaic County man was charged with using an explosive to damage a Chase Bank automated teller machine (ATM) in Prospect Park, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Nicolas Torres, 41, of Passaic, New Jersey, is charged by complaint with using an explosive to damage real property used in interstate commerce and possession of an unregistered firearm, namely the destructive device. The defendant appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
In the early morning hours of July 5, 2022, Torres was captured on surveillance video approaching the Chase Bank ATM in Prospect Park and appearing to ignite an item in front of the ATM. Several seconds later, an explosion was seen at the ATM. Torres was seen fleeing the location with two individuals.
In addition to the surveillance video, cellular phone location data placed Torres in the area of the Chase Bank at the time of the explosion. The investigation also revealed that Torres had traveled to Pennsylvania the day before and purchased approximately $1,000 worth of fireworks.
Examination of the physical evidence obtained from Chase Bank revealed cardboard with “MgAl” stamped on it. MgAl refers to magnalium, an alloy of magnesium and aluminum, which can be used as fuel to form an explosive when ignited by heat or a flame (as depicted in the surveillance video), thereby making it an improvised explosive device.
The use of an explosive to damage real property used in interstate commerce charge carries a statutory minimum of five years in prison, a statutory maximum of 20 years in prison, and a fine of $250,000. The possession of an unregistered firearm charge carries a statutory maximum of 10 years in prison and a fine of $10,000.
U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, Newark Field Division, under the direction of Special Agent in Charge James E. Dennehy, and the Prospect Park Police Department, under the direction of Officer in Charge Captain Walter Richmond, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s National Security Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
torres.complaint.pdfOwner of New Jersey Fireproofing and Painting Company Indicted for Tax CrimesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged with tax evasion and failure to file tax returns, U.S. Attorney Philip Sellinger announced today.
John Constantino, 67, of Ridgewood, New Jersey, is charged in an 18-count indictment with six counts of tax evasion and 12 counts of failure to file tax returns.
According to documents filed in this case and statements made in court:
Constantino owned and operated a fireproofing and painting business since at least 1989. Despite both the company and Constantino earning income between 2017 and 2022, Constantino failed to report the company’s income on corporate tax returns and also failed to report his own income on personal tax returns, resulting $682,735 in taxes due and owing to the United States, which Constantino never paid.
Instead of paying those taxes, Constantino took affirmative steps to conceal both his and the company’s income and assets including, cashing approximately $13 million worth of checks payable to the company at a check cashing facility and structuring cash deposits into both his and the company’s bank accounts to avoid triggering Currency Transaction Reports, which are reported to the U.S. Department of Treasury.
The tax evasion counts each carry a maximum potential penalty of five years and a fine of $100,000. Each count of failure to file tax returns carry a maximum potential penalty of one year in prison and a fine of $100,000 each.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges.
The government is represented by Assistant U. S. Attorney Rachelle M. Navarro of the Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
r_constantino.indictment.pdfNorthern District of Georgia U.S. Attorney and Procurement Collision Strike Force Director Host Antitrust SummitRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia, the Department of Justice’s Antitrust Division, and the Procurement Collusion Strike Force (“PCSF”) hosted a summit where procurement officials and law enforcement partners from across the Atlanta metropolitan area convened to raise awareness concerning collusion, corruption, and fraud schemes that target government spending. spending.
"Our office is committed to working closely with our federal, state, and local partners to ensure that the citizens of this district receive government services free from collusion, corruption, and fraud,” said U.S. Attorney Ryan K. Buchanan. “Our close collaboration with the Antitrust Division, in particular, allows us to better identify, investigate, and prosecute procurement fraud and, in so doing, assure the public that safeguarding taxpayer funds ranks as a top priority.”
“Today’s summit is a valuable opportunity for the PCSF to forge vital partnerships with representatives from the U.S. Attorney’s Office for the Northern District of Georgia and several local, state and federal law enforcement agencies that are dedicated to protect the integrity of the federal government’s contracts,” said Director Glad. “Our partnerships increase awareness and combine resources and tools that protect taxpayers’ money.”
During the summit, U.S. Attorney Buchanan and Director Glad reflected on the PCSF’s growth and success since its inception in 2019. They detailed additional resources the Department of Justice has dedicated to combat procurement collusion and emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending. They also sharpened the PCSF’s focus on the challenges, risks, and opportunities posed by significant government spending in and around the Atlanta metropolitan area under the Investment in Infrastructure and Jobs Act, which will provide billions in federal spending in Georgia over the next several years.
Presentations at the summit outlined the ways that federal, state, and local government agencies can partner with the PCSF to address these emerging threats. Other topics discussed at the summit included ways that government agencies can strengthen their procurement processes to better protect taxpayer funds and meet the mission to provide services to residents. Summit participants included representatives from the FBI, Department of Transportation Office of Inspector General, Environmental Protection Agency Office of Inspector General, Department of Commerce Office of Inspector General, Department of Homeland Security Office of Inspector General, General Services Administration Office of Inspector General, Air Force Office of Special Investigations, Department of the Army Criminal Investigative Division, Defense Criminal Investigative Service, Georgia Department of Education, Georgia Department of Transportation, and City of Atlanta Office of Inspector General.
The PCSF is the Department of Justice’s coordinated, national law enforcement effort to target antitrust crimes and related fraudulent schemes that impact procurement, grant, and program funding at all levels of government — federal, state, and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorney’s Offices around the country, the FBI, and the Inspectors General for multiple federal agencies.
Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving more than $500 million worth of government contracts. The summit marks the Department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Nine Mile Falls Man Who Used a Hidden Camera to Produce Child Pornography Sentenced to 20 Years in Federal PrisonRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Robert Wayne Hutton, age 60, of Nine Mile Falls, Washington, was sentenced on child exploitation charges. On January 3, 2024, Hutton pleaded guilty to Possession of Child Pornography. On January 16, 2024, after a bench trial before United States District Judge Mary K. Dimke, Hutton was found guilty of Production and Attempted Production of Child Pornography. Judge Dimke imposed a sentence of 240 months of imprisonment to be followed by a lifetime of supervised release. Judge Dimke also ordered restitution in the amount of $25,000 be paid to Hutton’s production victim.
According to court documents and evidence presented at trial, between May 2021 and May 2022, Hutton secretly recorded a minor using a bathroom. Hutton placed a camera, hidden in a clock radio, on a bathroom counter in order to film the victim nude and create child pornography. The camera was wirelessly linked to Hutton’s smartphone, which Hutton used to view the recordings. Trial evidence also included Hutton’s 2009 Washington state conviction for Communication with a Minor for Immoral Purposes, based on sexual statements Hutton made in person and via text messages to a 15-year old girl.
Law enforcement obtained a search warrant and seized several electronic devices belonging to Hutton, including the hidden camera, Hutton’s phone, and several computers. A forensic review of the phone and computers revealed several video files and 33 images of the minor in various stages of undress, as well as hundreds of additional child pornography files.
“For months, Mr. Hutton used a secret camera to record images of a young victim. He was also engaged in online trading of child pornography with similar-minded offenders. Our office prioritizes these offenses against our community’s youngest and most vulnerable and will continue to aggressively prosecute those who harm children,” stated U.S. Attorney Waldref. “I want to commend our law enforcement partners, as well as our prosecutors and support staff for bringing justice for the victims and accountability to this defendant.”
“This child predator engaged in behavior that was a betrayal of trust and a heinous exploitation of unsuspecting victims,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Collectively, we cannot tolerate such egregious acts that strip away the dignity of victims and provide the opportunity for revictimization. HSI will pursue these perpetrators tirelessly, seeking to end the abuse associated with images of child exploitation wherever it may be found.”
“This case was particularly heinous; the victim was preyed upon by someone in a position of trust. Though there is nothing my office can do to undo the hurt this victim has felt, I hope that healing can begin with this conviction,” said Erika George, Prosecuting Attorney for Stevens County. “I would like to thank the Stevens County Sheriff’s Office for their hard work in their investigation, and I am equally grateful for the efforts of the US Attorney’s Office in their successful prosecution.”
This case was investigated by Homeland Security Investigations and the Stevens County Sheriff’s Office. State charges were filed by the Stevens County Prosecutor’s Office, and the federal case was prosecuted by Assistant United States Attorney Ann Wick.
Niagara Falls man with prior child sexual abuse conviction going back to prison on new child pornography chargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Albert Smith, 40, of Niagara Falls, NY, who was convicted of possession of child pornography involving a prepubescent minor and having a prior conviction under the laws of any state relating to sexual abuse involving a minor, was sentenced to serve 188 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Maeve E. Huggins, who handled the case, stated that in 2003, Smith was convicted in North Tonawanda City Court of Sexual Abuse 2nd: Sexual Contact with Person Less Than 14 Years Old. On October 22, 2021, a search warrant was executed at Smith’s residence, during which investigators seized two cell phones. Investigators also located another electronic device containing child pornography, which Smith had attempted to discard. In total, Smith possessed 314 images and 25 videos of child pornography on the three devices. The images included depictions of prepubescent minors less than 12 years old, and the sexual abuse of an infant or toddler.
The sentencing is the result of an investigation by the Niagara Falls Police Department, under the direction of Superintendent Nicholas Ligammari, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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New York Man Convicted of Bank FraudRead the Press Release
ALBUQUERQUE – A New York man was convicted by a federal jury after 39 minutes of deliberation of a bank fraud charge related to the brutal assault of his father-in-law. Prosecutors allege the crime was driven by the defendant, Marc Candelaria, 36, of Wantagh, New York, accruing mounting gambling debts at the time.
According to court documents and evidence presented at trial, in the early hours of Sept. 14, 2021, an armed and masked intruder entered Candelaria’s father-in-law’s home and forced him to write a check for $23,000.00 and demanded he leave all other portions of the check blank. The intruder then severely beat the victim and left him in the closet of his home. Candelaria’s father-in-law did not see the intruder’s face and retained little memory of the incident due to the severity of his injuries.
On Sept. 15, 2021, Wells Fargo bank alerted the victim’s wife to a possibly fraudulent check. The bank advised that a hold had been placed on the check due to what appeared to be two separate handwritings. The next day, she viewed the check and observed that it had been made out to Candelaria. Candelaria claimed that his father-in-law had given him the check because they intended to invest in Bitcoin together. The victim’s wife doubted Candelaria’s story but wrote him another check for $23,000.00.
The victim’s wife later informed the victim that she had written Candelaria a check to replace the first one. The victim denied agreeing to invest in Bitcoin or writing a check to Candelaria but recalled that he had been forced to write a check for $23,000.00 against his will during the home invasion. The victim’s wife contacted the Santa Fe Police Department and provided copies of the two checks made out to Candelaria.
A deposit slip for the check the victim wrote during the home invasion was found in Candelaria’s car pursuant to a state search warrant. The deposit slip showed that the check was deposited at 8:58AM on the morning of the home invasion.
The Court ordered that Candelaria remain in detention pending sentencing, which has not been scheduled. At sentencing, Candelaria faces up to 30 years in prison followed by five years of supervised release.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorneys Samuel A. Hurtado and Natasha Moghadam are prosecuting the case.
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Monroe, N.C. Man Is Sentenced to 25 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney sentenced Jake Henry Anderson, 24, of Monroe, N.C., to 300 months in federal prison followed by a lifetime of supervised release for production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Anderson was also ordered to register as a sex offender upon completion of his prison term.
According to Anderson’s guilty plea and other documents filed with the court, between July 8, 2021, and July 10, 2021, Anderson induced, enticed, and coerced a minor to engage in sexually explicit conduct and produced a visual depiction of the conduct. Court documents show that Anderson befriended the 15-year-old minor female on Snapchat and began to communicate with her. Over the course of their communications, Anderson exchanged sexually explicit images with the minor victim and discussed having sex with her. As their communications progressed, Anderson discussed meeting the minor victim and told her he would make her his girlfriend.
According to court documents, on July 8, 2021, Anderson drove to the minor victim’s house in Tennessee, picked her up from her home and drove her back to his home in Union County, North Carolina. During this time, Anderson engaged in sexual acts with the minor victim. Videos of the sexual acts were recorded and saved in his Snapchat account. Anderson was arrested after the minor was reported missing and law enforcement was able to trace her to the defendant’s home.
Filed court documents show that after Anderson’s arrest and upon seeing the defendant’s picture in the news, another individual contacted law enforcement to report that a 16-year-old female had also been in contact with Anderson. During their communications on Snapchat, Anderson pressured this minor victim to send him sexual images of herself, to leave her family, and to move in with him. Investigators also determined that Anderson had driven by the minor victim’s house and briefly met with her.
On June 29, 2022, Anderson pleaded guilty to production of child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King commended Homeland Security Investigations, the Union County Sheriff’s Office and the Rutherford County (Tennessee) Sheriff’s Office for their work in the investigation.
Assistant U.S. Attorney Stephanie Spaugh of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Missouri Man Caught in Overseas Sting Admits Child Pornography ChargeRead the Press Release
ST. LOUIS – A man from Kirksville, Missouri on Thursday pleaded guilty to a child pornography charge after being caught by an undercover police officer posing as a 12-year-old girl.
Corey Alexander Wadel, 36, pleaded guilty to one count of receipt of child pornography. Wadel admitted that he possessed more than 600 images containing child sexual abuse material and exchanged that material with others online. He also admitted taking pictures of himself exposing his genitals to two young children.
The investigation began after law enforcement in the United Kingdom notified Homeland Security Investigations that someone in the United States, later identified as Wadel, was talking to an undercover officer posing as a twelve-year-old female. Using Kik Messenger, Wadel sent explicit images and videos of himself to the officer.
As part of the plea agreement, both sides have agreed to recommend 12 years in prison when Wadel is sentenced in July.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Minot Man Sentenced to Federal Prison for Distributing Large Amounts of Methamphetamines into North Dakota from Mexico, and Trafficking Firearms into MexicoRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on March 27, 2024, Joshua Paul Kranig, age 41, from Minot, North Dakota, appeared before U.S. District Court Judge Daniel M. Traynor and pleaded guilty to one count of Conspiracy to Distribute Methamphetamine and one count of Possession of Firearms by a Convicted Felon. Kranig was sentenced to serve 10 years and 5 months in federal prison, followed by five years supervised release for the methamphetamine conspiracy conviction, and to serve 60 months in federal prison, followed by three years supervised release for the illegal possession of firearms conviction. The sentences will run concurrent to one another.
Kranig was involved in trafficking large quantities of methamphetamine from Mexico to North Dakota. Further, Kranig was unlawfully possessing and trafficking firearms into Mexico as payment for the drugs.
“This prosecution took dangerous drugs off the streets of our communities and firearms out of the hands of international cartels,” Schneider said. “Where organized drug trafficking occurs, illegal guns and violent crime all too often follow. Our career prosecutors and their law enforcement partners deserve credit for the results in this case, which will benefit public safety in the District of North Dakota and beyond.”
This case was investigated by the Minot Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, and prosecuted by the United States Attorney’s Office, with Assistant US Attorney Chris Myers and Assistant US Attorney David Hagler assigned to the case.
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Minneapolis Felon Sentenced to 9 Years in Prison for Firearms ViolationsRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 111 months in prison followed by three years of supervised release for possessing a firearm as a felon and for carrying a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 13, 2023, law enforcement responded to a report of a man wearing a mask and waving a handgun in a white Kia with Colorado plates. Upon arrival law enforcement ordered the sole occupant of the car, identified as Tracrill Smith, 26, out of the Kia and placed him in handcuffs. Law enforcement searched the Kia and found a 9mm semi-automatic pistol with an obliterated serial number and loaded with an extended magazine, 3,340 fentanyl pills and approximately 47.15 grams of fentanyl powder. Because Smith has a previous prior felony conviction, he is prohibited under federal law from possessing firearms or ammunition at any time.
Smith pleaded guilty on October 19, 2023, to one count of possession of a firearm as a felon and one count of carrying a firearm during and in relation to a drug trafficking crime. He was sentenced today in U.S. District Court by Senior Judge Michael J. Davis.This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Maplewood Police Department, and the Ramsey County Sheriff’s Office.
Assistant U.S. Attorney Mary S. Riverso prosecuted the case.Mathis dealer sent to prison after attempting to dispose of two duffel bags full of narcotics and cashRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old man has been sentenced for possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Rivas aka Scarface pleaded guilty Jan. 3, 2023.
U.S. District Judge Drew B. Tipton has now ordered Rivas to serve 180 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding his lengthy criminal history which began when he was just 12 years old including the facts surrounding his arrest and his role in narcotics trafficking in Mathis. The court also heard how Rivas was a poly-substance, multi-kilogram narcotics distributor who had been operating for years in the Mathis area.
The investigation began when Rivas sold meth to an informant for law enforcement. When authorities executed the arrest warrant for that sale, Rivas attempted to flee by running out of the back of his girlfriend’s house and hiding in the brush.
Rivas then attempted to dispose of two duffel bags containing almost four kilograms of cocaine, over 2.5 kilograms of meth, 133 grams of heroin, 600 grams of marijuana and more than $90,000 in cash by throwing the additional evidence into the brush. The estimated street value of the cocaine and meth was approximately $114,000.
However, law enforcement located Rivas and the duffel bags, and he was subsequently charged and pleaded guilty to the larger quantity of narcotics he attempted to throw away.
Additionally, while executing a search of the residence, authorities located a hidden closet concealed as a bookshelf. Rivas admitted he had it built in the house to help him hide from authorities when they came to arrest him.
Rivas’ girlfriend was also charged and convicted of harboring a fugitive for her role in helping him evade arrest in her home.
Rivas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Homeland Security Investigations conducted the investigation with the assistance the U.S. Marshals Service, Sheriff’s Offices in Live Oak and San Patricio Counties, George West Police Department, Texas Department of Public Safety and Texas Parks and Wildlife Department. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Man from Hawaii Admits Sextortion of Missouri TeenRead the Press Release
ST. LOUIS – A resident of Hawaii pleaded guilty Thursday in U.S. District Court in St. Louis and admitted the sextortion of a 14-year-old Missouri girl, as well as the distribution of explicit images of other minors.
Gerardo Javier Montes, 33, pleaded guilty to one felony count of distribution of child pornography.
Between Dec. 6, 2021, and Jan. 14, 2022, Montes communicated with the 14-year-old Missouri girl via numerous private messages on Reddit. She initially believed he was 21 but later found out that he was a decade older. Montes often turned the conversation to sexual matters. He provided advice on how to create nude images. He also sent her an explicit image of a 15-year-old. At one point she sent him an image of herself in a bra and a picture of herself topless. She later told Montes her full name and directed him to an online profile.
On Jan. 13, 2022, the victim tried to cut off contact with Montes. He responded by threatening to post nude photos of her on various social media sites and send them to “every school in the state.” He demanded more pictures, providing a detailed list of what he wanted, and tried to get her to engage in sexual activity with a dog. He also created a fake Reddit account, pretending to be a 15-year-old girl, to try and trick the victim into providing nude images. On Jan. 15, 2022, he sent images of the victim to someone else via Discord.
An investigation began after the FBI received a tip about the sextortion and traced the blackmailer to Hawaii. They performed a court-approved search of his home and seized electronic devices that contained child sexual abuse material.
Montes admitted as part of his plea that he traded child pornography with others online, including images of his former girlfriends when they were minors and other child victims that he provided with money, gift cards, clothes, sexual toys or electronics in exchange for nude images. Those victims include one girl in Oklahoma, one in Texas and one in Colorado.
Montes made posts and comments in teen-focused Reddit groups, as well as groups discussion depression and rape fantasies. He also admitted seeking child sexual abuse material from other minors online. In February of 2021, he asked someone who said she had been sexually abused as a minor for nude images of herself when she was 13. In December 2021, Montes asked a 12-year-old girl if she wanted to see his genitals and asked to see her nude.
Montes is scheduled to be sentenced on August 15. The distribution charge carries a mandatory minimum prison term or five years, and a maximum of 20 years.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
The National Center for Missing and Exploited Children (NCMEC) has detailed information on resources for sextortion victims, including videos and discussion guides to help explain the problem to children and adults. They also have a step-by-step guide on how to report pictures or videos of children to social media companies and flag pictures so that the companies will seek out and remove the images.
To report sextortion, contact local law enforcement or the FBI by calling Call 1-800-CALL-FBI, contacting your local FBI office, or reporting it online at tips.fbi.gov or cybertipline.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Pleads Guilty to Selling $3.5M in Counterfeit and Deficient Electronics for Use in Military SystemsRead the Press Release
A California man pleaded guilty yesterday to a scheme to defraud the Department of Defense’s (DoD) Defense Logistics Agency (DLA) by selling over $3.5 million worth of fan assemblies to the DLA that were either counterfeit or misrepresented to be new.
“The defendant sold counterfeit and deficient fan assemblies for use in military systems to increase his profit,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Criminals who cheat the U.S. military by selling deficient or counterfeit goods put our national security at risk. This case demonstrates the Justice Department’s commitment to protecting the military supply chain and Americans’ security.”
“Through his company, Kim delivered counterfeit products to our armed services and tried to pass off non-conforming products with fake invoices,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “Swindling our military is a sure way to find oneself in jail. This office is always on the lookout for fraudsters and will prosecute anyone caught cheating our military by providing products that endanger our service people or compromise our readiness.”
According to court documents, Steve H.S. Kim, 63, of Alameda County, controlled Company A, which sold fan assemblies to the DLA that were either counterfeit or were used or surplus fan assemblies that he claimed were new. To trick the DLA into accepting the fan assemblies, Kim created counterfeit labels — some of which used Company B’s registered trademarks — that he attached to the fan assemblies he sold to the DLA. When the DLA questioned Kim about the origin of the fan assemblies, Kim concealed his scheme by giving the DLA fake tracing documents that he created and often signed using a false identity. Some of these counterfeit fans were installed or intended to be installed with electrical components on a nuclear submarine, a laser system on an aircraft, and a surface-to-air missile system.
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Special Agent in Charge Bryan D. Denny of the DCIS Western Field Office. “Supplying counterfeit products to the DoD endangers the mission and betrays the public’s trust. This investigation demonstrates DCIS’ ongoing commitment to working with its law enforcement partners to hold individuals who defraud the DoD accountable.”
“The Naval Criminal Investigative Service (NCIS) and our law enforcement partners work diligently to thwart attempts to infiltrate the DoD supply chain with potentially damaging counterfeit product,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This case highlights the efforts of the investigative team to expeditiously shut down such a scheme and prevent possible grievous harm to our ability to conduct effective combat operations.”
“This case reflects Homeland Security Investigation’s (HSI) core mission set of investigating national security threats as well as protecting global trade and government supply chains,” said Special Agent in Charge Tatum King of HSI San Francisco. “In this case, the serious risks posed to mission readiness were especially alarming. HSI appreciates the joint efforts of NCIS, DCIS, and the Army Criminal Investigation Division (Army CID), together with the Justice Department, in bringing the violator to justice.”
“The result of this joint investigation underscores the importance of our federal law enforcement partnerships and shows that by working together we can identify, prosecute, and dismantle businesses that supply the U.S. military with fraudulent parts and services,” said Special Agent in Charge Keith K. Kelly of the Army CID Fraud Field Office. “Our Army communities and the public can rest assured that we are committed to pursuing anyone that would defraud the U.S. government for their own personal gain and put combat readiness at risk.”
Kim pleaded guilty to one count of wire fraud and one count of trafficking in counterfeit goods. He is scheduled to be sentenced on July 17 and faces a maximum penalty of 20 years in prison on the wire fraud count and 10 years in prison on the trafficking in counterfeit goods count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DCIS, NCIS, HSI, and Army CID are investigating the case.
Assistant Chief Kyle C. Hankey and Trial Attorneys Louis Manzo and David D. Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Lloyd-Lovett for the Northern District of California are prosecuting the case. Assistant Deputy Chief Adrienne Rose and Senior Counsels Jason Gull and Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section provided substantial assistance with the investigation.
Long Beach Man Charged with Transporting 14-Year-Old Arizona Runaway While Intending to Engage in Criminal Sexual ActivityRead the Press Release
LOS ANGELES – A Long Beach man has been arrested on a federal criminal complaint alleging he traveled with a 14-year-old runaway from Arizona – whom he met in a Reddit internet forum – across state lines to his apartment, where he engaged in criminal sexual activity with her, the Justice Department announced today.
Trevon Nathaniel Langstaff, 32, is charged with transportation of a minor with intent to engage in criminal sexual activity.
Langstaff was arrested at his residence early Wednesday morning. He is scheduled to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, law enforcement officials on Tuesday received a report of a missing 14-year-old girl who ran away from a residence in Arizona. Early Tuesday morning, the victim’s family discovered she was missing.
The victim’s family searched for the girl in the neighborhood and reached out to her friends for information about the victim’s whereabouts and learned that the victim – one week earlier – said that she was planning to run away from home. The victim also told a friend that she had met a man who harbored runaways and who currently had two other teenagers staying with him, and that he would give her a cellphone and a room in which to stay, the affidavit alleges.
The victim and Langstaff allegedly met on a Reddit internet forum about runaways. A phone record search revealed numerous contacts between the victim and Langstaff, according to the affidavit.
Early Wednesday morning, law enforcement officials visited Langstaff’s Long Beach apartment to locate and rescue the victim. The victim was found hidden in a closet at Langstaff’s apartment, the affidavit alleges.
The victim said Langstaff and she engaged in sexual contact after their arrival at his apartment.
A criminal 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, Langstaff would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
The FBI and the Long Beach Police Department are investigating this matter.
Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section is prosecuting this case.
Local Magician Sentenced to More Than Six Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Sutton man who worked as a magician for over 20 years was sentenced today in federal court in Boston for exploiting children in Cambodia.
Scott Jameson, 47, was sentenced by U.S. District Court Judge Richard G. Stearns to 78 months in prison to be followed by five years of supervised release. Jameson was also ordered to pay $20,000 in special assessments. In November 2024, Jameson pleaded guilty to one count of illicit sexual conduct in a foreign place and one count of transportation of child pornography.
“Scott Jameson thought that by travelling overseas to Cambodia in order to sexually exploit children, he could get away with it. He was wrong,” said Acting United States Attorney Joshua S. Levy. “Sexual exploitation of children is unconscionable, regardless of where the victims live. Our office works with international authorities regularly to make sure that individuals like Mr. Jameson are held accountable for their criminal conduct. We will not cease in our efforts to bring individuals who harm children to justice.”
“This predator with a passport traveled halfway around the world and engaged in illicit sexual conduct with a child and then brought back home evidence of that sexual abuse so he could relive it for his own sick gratification,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Child sexual exploitation is abhorrent anywhere it occurs, and the FBI will continue to go after Americans who travel abroad for that purpose. We’re determined to bring them to justice for the damage they’ve done and prevent them from victimizing anyone else’s child.”
In early 2022, Action Pour Les Enfants (APLE), a Cambodian Non-Governmental Organization founded to prevent child sexual abuse and exploitation, contacted federal authorities in the United States to report that Jameson engaged in inappropriate behavior with minors in Cambodia. An investigation revealed that, while in Cambodia, Jameson would provide gifts and money to children and their families. Children reported that he would visit the pagoda where they lived and sleep in a room with the children.
In September 2022, authorities in the United States were notified that Jameson, a dual citizen of the United States and Ireland, had again traveled from Boston to Cambodia in August 2022. Upon his return to the United States on Oct. 19, 2022, Jameson was stopped at Logan Airport. During a search of his belongings, a video was discovered which he produced during his most recent trip to Cambodia, depicting the genitals of a young boy who was approximately seven years old. Jameson admitted to creating the video and transferring it from his camera to a hard drive that he possessed when he was stopped at Logan Airport. Additionally, Jameson’s laptop revealed that it had been used to view images of child sexual exploitation material.
During a subsequent interview with law enforcement, Jameson stated that he worked as a magician for over 20 years, regularly performing at libraries and private and family events across New England, usually for children as young as kindergarten age and up to the eighth grade.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance in the investigation was provided by United States Customs and Border Protection, Homeland Security Investigations and the Sutton and Littleton Police Departments. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
Latvian Broker Arrested for Allegedly Smuggling Advanced U.S. Aircraft Technology to RussiaRead the Press Release
In a superseding indictment returned by a grand jury, a citizen of the Republic of Latvia is charged with crimes related to a years-long conspiracy to sell sophisticated avionics equipment to Russian companies, in violation of U.S. export laws. The defendant is the third to be arrested and charged in connection with the conspiracy led by a Kansas company and two U.S. nationals.
According to the superseding indictment, Oleg Chistyakov, also known as Olegs Čitsjakovs, 55, conspired with U.S. citizens Cyril Gregory Buyanovsky and Douglas Edward Robertson, of Kansas, to facilitate the sale, repair and shipment of U.S. avionics equipment to customers in Russia and in other countries that operate Russian-built aircraft, including the Federal Security Service of Russia (FSB). Chistyakov was arrested on March 19 near Riga, Latvia, and remains detained pending extradition proceedings. In December 2023, Buyanovsky pleaded guilty to conspiracy and conspiracy to commit money laundering, and consented to the forfeiture of over $450,000 worth of avionics equipment and a $50,000 personal forfeiture judgment.
“As alleged, Mr. Chistyakov facilitated hundreds of thousands of dollars in illicit transactions to funnel sophisticated U.S. aerospace technology to companies in Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This arrest is another example of the Justice Department’s unwavering mission to hold accountable those who enable Russian aggression, including those involved in facilitation networks that fuel the Russian war effort.”
“The Justice Department upholds the laws of the United States and prosecutes those who break them regardless of whether those individuals are on U.S. soil or the other side of the world,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “Oleg Chistyakov’s arrest was only possible due to the assistance and cooperation of authorities in Latvia. This type of international cooperative effort makes it immensely challenging for those accused of committing crimes against the U.S. to find safe havens beyond reach of our judicial system.”
“The FBI and our partners continue to pursue anyone who aids Russia in its unjust and autocratic behavior or to violate export control laws or any other law for that matter,” said Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch. “Today’s indictment and forfeiture judgment should serve as a reminder that we will not tolerate attempts to transfer sensitive avionics equipment and technology to hostile nations.”
“It doesn't matter if you’re in Kansas or in Latvia — if you violate American law, you risk facing American justice,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “We continue to work closely with law enforcement partners across the globe to pursue those who seek to send military-grade aerospace equipment to support the Russian military.”
According to court documents, after Russia’s full-scale invasion of Ukraine in February 2022 and despite additional U.S. economic countermeasures levied against Russia, Chistyakov and his conspirators continued to smuggle and export sophisticated and controlled avionics equipment to companies in Russia without the required licenses from the U.S. Department of Commerce.
As further alleged, Chistyakov, while operating from Latvia, worked with Buyanovsky and Robertson through their U.S. company, KanRus Trading Company Inc. (KanRus), to circumvent U.S export laws by purchasing avionics equipment from U.S. companies for customers in Russia. Chistyakov allegedly acted as a broker for KanRus by soliciting quotes, negotiating prices and terms of delivery, and facilitating payments between KanRus and customers in Russia.
The superseding indictment details actions allegedly taken by Chistyakov and his conspirators to conceal their illegal activities including by creating false invoices, transshipping items through third-party countries, such as Germany and the United Arab Emirates (UAE), using bank accounts in third-party countries, such as Kazakhstan, Kyrgyzstan and the UAE, and exporting items to intermediary companies which then reexported the items to the ultimate end destinations.
On Dec. 6, 2023, the U.S. Department of Commerce added many of the entities and individuals involved in Chistyakov’s alleged illegal export scheme to the Commerce Department’s Entity List as part of the U.S. government’s interagency efforts to dismantle Russian procurement networks designed to circumvent U.S. export controls and sanctions imposed in response to Russia’s invasion of Ukraine. The Entity List imposes specific license requirements on all listed individuals and entities.
Chistyakov is charged with one count of conspiracy, two counts of violation of Export Control Reform Act, multiple counts of smuggling goods from the United States, conspiracy to commit international money laundering and two counts of international money laundering. If convicted, he faces a maximum penalty of five years in prison for conspiracy, 20 years in prison for each Export Control count, 10 years in prison for each smuggling count and 20 years in prison for each money laundering count.
The FBI and the Department of Commerce’s Office of Export Enforcement are investigating the case, including participation in Latvia following Chistyakov’s arrest. Procedural actions were carried out in close cooperation with the State Security Service of the Republic of Latvia and assistance of the Prosecutor-General’s Office.
Assistant U.S. Attorneys Scott Rask and Ryan Huschka for the District of Kansas and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.