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8 May 2024
Harrisburg Drug Trafficker Convicted of Hiring Gunmen to Protect Thousands of Pounds of Marijuana Through the U.S. MailRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 6, 2024, Christopher Texidor, age 36, of Harrisburg, Pennsylvania, was convicted following a jury trial of trafficking over 1,000 kilograms (2,200 pounds) of marijuana and hiring gunmen to protect his illegal activities. The trial, held before United States District Judge Jennifer P. Wilson, spanned six days, and the jury deliberated for approximately four hours before returning its verdict.
According to United States Attorney Gerard M. Karam, between October 2018 and May 2020, Texidor and his codefendants operated a marijuana smuggling operation out of Fastlane Auto Sales, a used car lot located on Paxton Street in Harrisburg. Texidor and his codefendants arranged to have his drug source in California mail hundreds of parcels full of marijuana to Harrisburg through the U.S. Mail. In the same way, they regularly mailed tens of thousands of dollars in cash back to the California source. Texidor and his codefendants used a sophisticated system of GPS tracking devices, which they placed in their parcels, to keep track of their drugs and money. Through this the scheme, over 9,000 thousand pounds of suspected marijuana parcels, worth millions of dollars, were brought to the Harrisburg area.
Texidor and his codefendants used guns, robbery, and kidnapping as tools to keep their criminal operation running. At the trial, the jury heard evidence of the violence Texidor and his codefendants used to try and stop a thief from stealing their marijuana. In late 2019, a thief began stealing their marijuana from parcels shipped to them. By using tracking devices in their parcels and attaching tracking devices to vehicles, they identified the person that they suspected was stealing their marijuana. Texidor and his codefendants then hired gunmen to stop the thefts. From December 2019 to February 2020, the gunmen went after the suspected thief. In December the gunmen shot up a truck in Harrisburg connected to the suspected thief; they shot into an occupied home in Susquehanna Township where the suspected thief was sleeping; and they shot into an occupied home in Steelton that they guessed was connected to the suspected thief. In February 2020, they robbed the suspected thief at gunpoint in Highspire.
The jury convicted Texidor of conspiracy to traffic more than 1,000 kilograms of marijuana, conspiracy to use a firearm in furtherance of drug trafficking, use of a means in interstate communication to commit a crime of violence, and drug trafficking. Sentencing has not been scheduled.
Texidor’s codefendants, William Kuduk, Jonathan Cobaugh, Justin Laboy, Jose Laboy, and Julio Arellano have pleaded guilty and are awaiting sentencing. Codefendant Jamie Valenzuela pleaded guilty to being the marijuana source from California. He was sentenced to 57 months’ imprisonment.
The case was investigated by the U.S. Postal Inspection Service, the Pennsylvania State Police, the Dauphin County District Attorney’s Office, and the Susquehanna Township Police Department. Assistant U.S. Attorneys Michael A. Consiglio and Scott Ford prosecuted the case.
The maximum penalty under federal law for these offenses are life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
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Gregory County Man Sentenced for AssaultRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Gregory County, South Dakota, man convicted of two counts of Assault Resulting in Serious Bodily Injury. The sentencing took place on May 6, 2024.
Dillon Yellow Hawk, age 27, was sentenced to seven years in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Yellow Hawk was indicted by a federal grand jury in June of 2023. He pleaded guilty on February 5, 2024.
In April of 2023, Yellow Hawk was living at his grandmother’s residence in rural Gregory County, South Dakota on property that is part of the Rosebud Sioux Indian Reservation. Yellow Hawk’s aunt and adult cousin, as well as Yellow Hawk’s three young children, also lived at the residence. On the evening of April 24, 2023, into the early morning hours of April 25, 2023, Yellow Hawk, his cousin, his aunt, and others were consuming alcohol. As the night progressed, an argument began between Yellow Hawk and his cousin, which included physical contact by both parties. The fight between the two escalated, culminating with Yellow Hawk grabbing his shotgun. Yellow Hawk fired the gun at his cousin, striking his cousin in the abdomen. Yellow Hawk maintained possession of the firearm and entered his grandmother’s bedroom where his aunt was also. To prevent another shot, Yellow Hawk’s aunt attempted to grab the gun. Her arm was near the muzzle when Yellow Hawk fired a second shot. Both victims were transported to Sioux Falls for medical treatment and required surgery for their injuries.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Gregory County Sheriff’s Office, the Burke Police Department, and the South Dakota Highway Patrol. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Yellow Hawk was immediately remanded to the custody of the U.S. Marshals Service.
Grant Man Charged with Transporting Explosive and Possessing A Destructive DeviceRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Luke Isaac Terpstra, a 30-year-old resident of Grant, Michigan, has been charged with transporting an explosive with the intent to kill, injure, or intimidate individuals or to unlawfully damage or destroy a building. Terpstra also faces a separate charge that he illegally possessed a destructive device. The indictment charges that Terpstra built several devices that he characterized as “bombs” and then transported those devices, along with multiple firearms and ammunition, from Michigan to the site of The Satanic Temple (TST) in Massachusetts in September 2023.
“The charges announced today demonstrate my office’s continued commitment to protecting our citizens from dangerous threats,” said U.S. Attorney Mark Totten. “Building explosive devices and transporting them with the intent to injure civilians and damage property puts us all at risk and those who commit such crimes will be held accountable.”
The indictment further alleges that, in December 2023, Terpstra stated to others that he possessed the “bombs” because he wanted to “blow up” TST. As recently as January 2024, Terpstra was found in possession of items that can be used to make improvised explosive devices, including a plastic container with coins attached to it and a piece of cannon fuse coming out of the lid; numerous metal carbon dioxide (CO2) cartridges; PVC pipe; ammonium nitrate; and hobby fuses.
If convicted, Terpstra faces a maximum 10-year term in prison on each charge and a fine of up to $250,000. He will also be required to pay restitution to any victims of his alleged crimes.
“Today's indictment is a sobering reminder of the threats we face as a society and a true testament to the FBI's mission of protecting the American people,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We stand united with our partners to combat all forms of violence and will take all necessary measures to ensure the public's safety.”
The charges in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty in a court of law.
The Federal Bureau of Investigation (FBI), Grant Police Department, Kent County Sheriff’s Office, and Michigan State Police are investigating the case, which is being prosecuted by Assistant U.S. Attorney Stephanie Carowan with the assistance of the National Security Division’s Counterterrorism Section.
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Gallup Man Sentenced for Sexual Abuse of MinorsRead the Press Release
ALBUQUERQUE – A Gallup man was sentenced to 10 years in prison followed by 10 years of supervised release for sexually abusing two minors.
There is no parole in the federal system.
According to court documents, between August 2012 and August 2013, Lathem Eskeets, 30, an enrolled member of the Navajo Nation, engaged in sexual acts with John Doe, who was older than 12, but younger than 16 at the time, and Jane Doe, who was younger than 12 at the time, while living at their mother’s residence near Church Rock, New Mexico.
Eskeets will be required to register as a sex offender upon his release from prison.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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Four-Time Convicted Felon Indicted for Possession of A Rifle, Ammunition, Machineguns, and SilencersRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Lee Ann Roberts (42, Altamonte Springs) with possession of a firearm and ammunition as a convicted felon and possession of unregistered machineguns and silencers. If convicted, Roberts faces a maximum penalty of 15 years in federal prison for possessing a firearm and ammunition as a convicted felon and up to 10 years in federal prison for possessing unregistered machineguns and silencers. The indictment also notifies Roberts that the United States intends to forfeit the firearms, silencers, and ammunition involved in the offense.
According to the indictment, Roberts is a four-time convicted felon. Despite knowing that she was a felon, on February 12, 2024, Roberts possessed a Savage Arms rifle and ammunition. As a convicted felon, she is prohibited from possessing firearms or ammunition under federal law. Roberts also possessed two AR-type machineguns and three silencers. None of the machineguns or silencers were registered to Roberts in the National Firearms Registration and Transfer Record, as required under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Altamonte Springs Police Department. It will be prosecuted by Assistant United States Attorney Richard Varadan.
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.
Fort Wayne Man Sentenced to 150 Months in PrisonRead the Press Release
FORT WAYNE –Brandon K. McBride, 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
McBride was sentenced to 150 months in prison followed by 2 years of supervised release.
According to documents in the case, on August 1, 2023, just 13 days after being discharged from parole for a felony handgun conviction, McBride was found with a stolen handgun containing a 50 round drum style magazine. Then on September 22, 2023, McBride was found with three firearms, one of which was a machine gun, in his vehicle after taking officers on an hour-long pursuit through the streets of Fort Wayne and New Haven, in which he struck two police vehicles before being taken into custody. McBride has eight (8) prior felony convictions and twenty-one (21) misdemeanor convictions.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Fort Wayne Police Department and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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.
Former Navy Sailor Sentenced to 10 Months in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Michael Yan Tajan, age 33, from San Jose, California, was sentenced to 10 months imprisonment for the crime of Failure to Register as a Sex Offender, in violation of 18 U.S.C. § 2250(a). The Court also ordered five years of supervised release following imprisonment and a mandatory $100.00 special assessment fee. Tajan was ordered to register with the Sex Offender Registry anywhere he resides, is employed, or is in school.
On April 3, 2019, Michael Yan Tajan, then a Navy Gunner Mate 3rd Class Petty Officer, was convicted of Uniformed Code of Military Justice Article 120c offenses - Indecent Recording, in violation of 10 U.S.C. § 920(c), involving adult victims. At a Special Court Martial in Guam, Tajan pled guilty to disobeying a superior commissioned officer, indecent recording, and indecent viewing. A military judge sentenced Tajan to a reduction in rank, confinement for 90 days, and discharge from the U.S. Navy.
From June 2019 to October 2023, law enforcement confirmed that Tajan resided in Guam after his release, traveled off island, and returned to Guam. Tajan never registered with the Guam Sex Offender Registry, nor did he provide the registry with his intent to engage in international travel.
“The Sex Offender Registration and Notification Act (SORNA) facilitates the monitoring and tracking of sex offenders following criminal conviction,” stated United States Attorney Anderson. “It applies throughout all states, territories, and the District of Columbia. The Department of Justice aggressively enforces SORNA violations in an effort to keep our communities safe. Registration information can be found at nsopw.gov.”
“Mr. Tajan failed to register as a sex offender as required by law after he was convicted of multiple sex-related offenses, thereby posing a threat to those with whom he comes into regular contact near his home, at work, and in school,” said Special Agent in Charge Darren Hatalosky of the NCIS Southeast Asia Field Office. “NCIS and the Department of Justice are committed to ensuring convicted sex offenders are held to account for their crimes.”
The investigation was conducted by Naval Criminal Investigative Service and prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Former Memphis Police Officer Charged with Federal Civil Rights, Kidnapping and Weapons Offenses Related to Fatal ShootingRead the Press Release
Memphis, TN – A federal grand jury in Memphis, Tennessee, returned an eight-count indictment today charging former Memphis Police Officer Patric J. Ferguson with federal civil rights, kidnapping and weapons offenses in connection with the fatal shooting of a victim identified as R.H. The indictment also charges Ferguson and a civilian, Joshua M. Rogers, with federal offenses for conspiring to cover up the fatal shooting and destroying evidence of the crimes. The indictment further charges Rogers with accessory after the fact for helping Ferguson cover up his crimes.
The indictment alleges that, on or about Jan. 5, 2021, Ferguson, while on duty as a Memphis Police Department officer, kidnapped and shot R.H. in the head, resulting in R.H.’s death. Ferguson then allegedly conspired with Rogers to cover up the fatal shooting by disposing of R.H.’s body in the Wolf River in Memphis. The indictment further alleges that Rogers disposed of the car used to transport R.H.’s body by selling the car at a scrap metal dealership.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee and Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office made the announcement.
The FBI Memphis Field Office and Memphis Police Department investigated the case.
Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorneys Maura White and Tenette Smith of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Updated May 8, 2024
Topic
CIVIL RIGHTS
Components
Civil Rights Division
Civil Rights - Criminal Section
Federal Bureau of Investigation (FBI)
USAO - Tennessee, Western
Press Release Number: 24-589
Former Memphis Police Officer Charged with Federal Civil Rights, Kidnapping and Weapons Offenses Related to Fatal ShootingRead the Press Release
A federal grand jury in Memphis, Tennessee, returned an eight-count indictment today charging former Memphis Police Officer Patric J. Ferguson with federal civil rights, kidnapping and weapons offenses in connection with the fatal shooting of a victim identified as R.H. The indictment also charges Ferguson and a civilian, Joshua M. Rogers, with federal offenses for conspiring to cover up the fatal shooting and destroying evidence of the crimes. The indictment further charges Rogers with accessory after the fact for helping Ferguson cover up his crimes.
The indictment alleges that, on or about Jan. 5, 2021, Ferguson, while on duty as a Memphis Police Department officer, kidnapped and shot R.H. in the head, resulting in R.H.’s death. Ferguson then allegedly conspired with Rogers to cover up the fatal shooting by disposing of R.H.’s body in the Wolf River in Memphis. The indictment further alleges that Rogers disposed of the car used to transport R.H.’s body by selling the car at a scrap metal dealership.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee and Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office made the announcement.
The FBI Memphis Field Office's Tarnished Badge Task Force and Memphis Police Department investigated the case.
Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorneys Maura White and Tenette Smith of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Hawaii Resident Sentenced to 57 Months in Prison for Defrauding Investors of $1.2 MillionRead the Press Release
HONOLULU – Newton Kaleo DeLeon, 48, of San Juan Capistrano, California, was sentenced by Senior District Judge Helen Gillmor today to 57 months in prison and three years of supervised release for wire fraud and money laundering related to a scheme to defraud at least 42 Hawaii and California victim-investors out of more than $1.2 million. DeLeon, a former Big Island resident, is required to pay $1,246,850 in restitution to the victims of the scheme. He also must pay a forfeiture money judgment of $1,194,650.
According to information produced to the court, from at least 2017 to December 2020, DeLeon solicited money from victim-investors, many of whom were friends and teachers, by falsely representing that the money they provided him was for his flower lei business, “leiorders.com.” Instead, DeLeon spent the money on his personal expenses, including gambling and luxury items, such as a Chevrolet Tahoe. DeLeon falsely told victim-investors that he needed investment funds to purchase flowers and supplies for lei purchase orders that he had already executed with third parties, such as well-known casino hotels in Las Vegas, Nevada.
To further his scheme to defraud, DeLeon then falsely promised that he would repay the principal investment loan within a short time frame and split the profit with the investors as a return. DeLeon created and signed loan agreements and promissory notes for investors to create the false appearance of legitimate financial transactions upon which investors could rely.
To further legitimize his scheme to defraud, DeLeon provided investors with fictitious and fabricated purchase orders, contracts, and other documents that he created with unauthorized and false branded logos and forged signatures to make it appear he had large business lei orders with third parties, such as well-known casino hotels in Las Vegas, Nevada, when he knew that he did not secure these orders.
“Holding people like DeLeon accountable for criminally defrauding multiple victims in Hawaii and elsewhere is a top priority of our office,” said United States Attorney Clare E. Connors. “And while we will continue our law enforcement efforts to bring such perpetrators to justice, we encourage everyone to be their own first line of defense against those who create and then exploit relationships of trust.”
"The FBI hopes this sentence sends a message to those who try to take advantage and victimize investors in these types of schemes for their own personal greed," said FBI Special Agent in Charge Steven Merrill. “We urge the public to remain vigilant and thoroughly research any investment. As the saying goes, if it sounds too good to be true, it probably is.”
“Our communities here, along with people all over the world, value leis as symbols of hospitality, of honor, of friendship. DeLeon, however, only saw and valued his own greed,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (CI), Seattle Field Office. “Financial crime is not victimless, and DeLeon deliberately chose to dishonor and hurt those in our communities with his actions. Today’s sentencing is a start to making things right, and CI is continually committed to bringing justice to those who do wrong.”
The FBI, IRS-Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Orange County Sherriff’s Department conducted the investigation that led to the conviction. Assistant U.S. Attorney Rebecca Perlmutter handled the prosecution.
Former CEO of dental device company pleads guilty to wire fraud for fraudulent investment schemeRead the Press Release
Seattle – Stephen Baird, the former CEO of S-Ray, Inc., pleaded guilty today in U.S. District Court in Seattle to wire fraud, announced U.S. Attorney Tessa M. Gorman. Baird, 68, formerly of Bainbridge Island, Washington, defrauded investors by making false statements about S-Ray’s product development and falsely claiming the company had obtained FDA authorization to market a dental device. Baird is scheduled for sentencing by U.S. District Judge Richard A. Jones on August 2, 2024.
Baird claimed S-Ray had developed an innovative ultrasound device that could take the place of X-rays, allowing dentists to quickly and safely image patients’ mouths. Baird falsely told investors that the Food and Drug Administration (FDA) had granted S-Ray “market clearance” to sell the device when, in fact, S-Ray never obtained FDA authorization to sell any device.
At a court hearing today, Baird admitted to engaging in a scheme to defraud S-Ray’s investors in connection with his promotion and sale of S-Ray stock. The Court will determine at a future hearing the amount of loss investors sustained and other facts relating to Baird’s fraudulent scheme.
Charging documents allege Baird’s scheme began in 2012 and defrauded some 200 investors of $10.75 million. The documents allege Baird told investors their funds would be used to bring a product to market, but Baird instead used at least 62% of the money – some $6.7 million – for his and his family’s personal expenses, including to purchase a luxury car and a house on Bainbridge Island.
Under the plea agreement, Baird agreed to pay restitution to investors and to forfeit property in amounts to be determined by the Court. The government agreed to recommend no more than seven years in prison.
The Securities and Exchange Commission filed a civil securities fraud action against Baird and S-Ray in March 2022. On January 6, 2023, the Honorable John H. Chun issued an order that imposed civil penalties against Baird and S-Ray, held them liable for disgorgement of investment funds, and enjoined Baird from serving as an officer or director of certain companies and from participating in certain types of securities transactions.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Special Assistant United States Attorney Jessica M. Ly.
Former Albany County Employee Sentenced for Stealing Government FundsRead the Press Release
ALBANY, NEW YORK – John T. Cox, age 62, of Schenectady, New York, was sentenced today to 2 years of probation, including 180 days of home confinement, for mail fraud and stealing money from a federally funded governmental agency.
United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General (DOJ OIG) Northeast Region, made the announcement.
As part of his previously entered guilty plea, Cox admitted that between June 2017 and February 2023, while employed as a Budget Analyst in the Albany County Sheriff’s Office (ACSO), he stole $122,251.25 by issuing 16 fraudulent checks drawn on funds in the care of the ACSO, an agency that received more than $10,000 in federal funding each year during this time period.
Cox used the checks to pay himself directly or to pay down his line of credit. Cox then tried to cover up his fraud by falsifying ACSO records to suggest that the funds were being used for legitimate purposes such as vehicle and equipment purchases. Cox stole some of the money from a Department of Justice program in which the federal government shares the proceeds of federal asset forfeitures with state and local law enforcement agencies.
United States District Judge Mae A. D’Agostino also imposed a $5,500 fine and ordered Cox to pay $122,251.25 in restitution to the ACSO.
The FBI, DOJ OIG, and ACSO investigated the case with valuable assistance from the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division. Assistant U.S. Attorney Joshua R. Rosenthal prosecuted the case.
Flight Attendants Charged in Connection with Smuggling Drug Money to the Dominican RepublicRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of two Complaints charging flight attendants CHARLIE HERNANDEZ, SARAH VALERIO PUJOLS, EMMANUEL TORRES, and JAROL FABIO with various offenses in connection with their years-long participation in smuggling narcotics trafficking proceeds from the United States to the Dominican Republic on commercial flights. All of the defendants were arrested yesterday. PUJOLS and FABIO were presented yesterday in Manhattan federal court before U.S. Magistrate Judge Gary Stein, and HERNANDEZ and TORRES will be presented later today before Judge Stein.
U.S. Attorney Damian Williams said: “As alleged, these flight attendants smuggled millions of dollars of drug money and law enforcement funds that they thought was drug money from the United States to the Dominican Republic over many years by abusing their privileges as airline employees. Today’s charges should serve as a reminder to those who break the law by helping drug traffickers move their money that crime doesn’t pay.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, the defendants knowingly smuggled large amounts of illicit money linked to the sale of narcotics, to include fentanyl, and took advantage of airport security checkpoints by using their trusted positions as flight attendants. This investigation has exposed critical vulnerabilities in the airline security industry and has illuminated methods that narcotics traffickers are utilizing. Today’s announcement should serve as a warning to all airline personnel: HSI New York will not tolerate employees’ attempts to abuse their power for the sake of transporting illicit goods. I commend El Dorado Task Force’s Transnational Criminal Enterprise Investigations Group and our partners in the public and private sectors for recognizing the seriousness of this issue.”
According to the allegations contained in the Complaints:[1]
During the relevant period charged in the Complaints, all of the defendants were employed as flight attendants with different international airlines that operated routes between New York City and the Dominican Republic. All of the defendants had “Known Crewmember” (“KCM”) status with the Transportation Security Administration, which allowed them to pass through a special security lane at John F. Kennedy International Airport and other airports with less scrutiny than normal passengers. In total, the defendants smuggled approximately $8 million in bulk cash from the United States to the Dominican Republic.
Before his or her arrest in about October 2021, a cooperating witness (“CW-1”) operated a significant money laundering organization (“MLO”) in New York City, specializing in the movement of cash proceeds from narcotics sales from New York City to the Dominican Republic. One method that CW-1 used in furtherance of his or her MLO was corrupting flight attendants, like the defendants, who worked routes between New York City and the Dominican Republic. In exchange for a fee – which generally amounted to a small percentage of the amount of money that they would be smuggling – the defendants accepted bulk cash from CW-1 in New York City, got it past airport security via the KCM lane, and passed it off to other members of CW-1’s MLO in the Dominican Republic, including another cooperating witness (“CW-2”). After CW-1 and CW-2 began cooperating with law enforcement, HSI orchestrated a number of sting operations in which CW-1 provided law enforcement funds represented to be narcotics proceeds to the defendants, who then smuggled it down to the Dominican Republic and handed it off to CW-2.
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CHARLIE HERNANDEZ, 42, of West New York, New Jersey, SARAH VALERIO PUJOLS, 42, of the Bronx, New York, EMMANUEL TORRES, 34, of Brooklyn, New York, and JAROL FABIO, 35, of New York, New York, are each charged with one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison, and one count of entering an airport or aircraft area in violation of security requirements, which carries a maximum sentence of 10 years in prison. PUJOLS and HERNANDEZ are additionally charged with one count of conspiracy to operate an unlicensed money transmission business, which carries a maximum sentence of five years in prison, and PUJOLS is further charged with one count of bulk cash smuggling, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of HSI and the New York City Police Department.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Jackie Delligatti are in charge of the prosecution.
The charges contained in the Complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Federal Prison Employee Sentenced for Accepting Payments from Inmate Under His CareRead the Press Release
BOSTON – A Correctional Counselor for the Federal Bureau of Prisons (BOP) assigned to Federal Medical Center Devens (FMC Devens) in Massachusetts was sentenced today for accepting payments from an inmate under his care, in violation of his duties as a public official. The defendant was also sentenced for lying to a bank about a loan he received from the inmate’s business associate and forging the associate’s signature to support this false claim.
William S. Tidwell, 50, of Keene, N.H., was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison, to be followed by three years of supervised release. Tidwell was also ordered to forfeit $90,058 and pay a $10,000 fine. In September 2023, Tidwell pleaded guilty to receiving payments as a public official in violation of his official duties, making false statements to a bank, and committing identity theft to support the false statements.
“William Tidwell ignored federal ethics and conflicts of interest laws, and his greed led him to abuse his position of authority,” said Acting U.S. Attorney Joshua S. Levy. “His corruption goes against BOP’s core mission of assisting offenders to become law-abiding citizens. Tidwell’s repeated violations showed his complete disregard for his profession, the dedicated professionals at BOP, and those he was entrusted to protect and guide.”
“William Tidwell is a longtime public servant, who fully embraced and handsomely benefitted from this illicit agreement with an inmate under his care,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mr. Tidwell abused his authority and abandoned his duty, and in the end, this corruption cost him, landing him a stay in federal prison.”
“Tidwell developed a personal relationship with an inmate, accepted payments from the inmate, and lied to a bank about a loan he received from the inmate’s business associate. Tidwell’s conduct was a far cry from the integrity that we expect from federal Correctional Officers. Today’s sentencing sends a clear message that this kind of conduct will not be tolerated,” said Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General Northeast Region.
Tidwell had been employed by the BOP since 2000 and had been working at FMC Devens since 2008. He was removed from federal service in October 2023 after pleading guilty in this case.
Given BOP’s mission to provide for the care and custody of federal inmates, the BOP has numerous rules and regulations that govern the duties and conduct of its employees. Among other things, employees may not receive any payments, gifts, or personal favors from inmates, give preferential treatment to any inmate in the performance of their duties, or engage in outside employment that conflicts with their duties.
In approximately 2014, Tidwell began working as a Correctional Counselor at FMC Devens, a position that give him significant levels of contact with, and authority over, inmates. Among other things, Tidwell was responsible for monitoring inmate work assignments, assigning inmate housing assignments, arranging inmate legal calls, and coordinating prison visits for inmates.
One of the inmates for whom Tidwell served as a Correctional Counselor at FMC Devens was Individual 1 – an ultra-high net worth individual who had been convicted on federal charges in another jurisdiction. Starting in approximately 2018, Individual 1 caused a stream of benefits to be paid to Tidwell.
In November 2018, while Tidwell was supervising Individual 1, the inmate directed a close friend and business associate (Individual 2) to wire $25,000 to Tidwell’s close family member. Thereafter, starting in 2019, Tidwell and Individual 1 entered into an agreement pursuant to which Tidwell received thousands of dollars as part of a property management agreement. Individual 2, the inmate’s associate, made the payments to Tidwell. In total, between 2019 and 2020, Tidwell received over $65,000 in benefits as part of this property management agreement with Individuals 1 and 2. Tidwell’s receipt of payments and his employment relationship with an inmate or a close associate of an inmate violated multiple official duties as a BOP employee.
Separately, in 2020, Tidwell sought to purchase a home. In connection with seeking financing for the home purchase, Tidwell received a $50,000 loan from Individual 2. Tidwell made multiple false statements to the bank in connection with his loan application, falsely telling the bank that the $50,000 was a gift from his employer. When the bank asked for written proof of this purported gift, Tidwell forged documents to support his earlier claim, including by unlawfully using Individual 2’s name and address, and forging Individual 2’s signature.
Acting U.S. Attorney Levy; FBI SAC Cohen; and OIG SAC Geach made the announcement today. Valuable assistance in the investigation was provided by the Federal Bureau of Prisons. Assistant U.S. Attorneys Kunal Pasricha and Mark Grady of the Criminal Division prosecuted the case.
Fatal Fentanyl Overdose in Indian Country Lands Four Defendants in Federal Prison for More Than 33 Years CollectivelyRead the Press Release
OKLAHOMA CITY – Four defendants have now been sentenced to serve 406 months collectively for their respective roles in the distribution of fentanyl that resulted in the death of another person in Indian country, announced U.S. Attorney Robert J. Troester.
In October 2023, DUSTIN ELLIS, 32, PAMELA PAYNE, 40, and SIERRA MANDRELL, 30, all of Grady County, were each charged with one count of distribution of fentanyl resulting in death. Another defendant, NICHOLAS SWEETEN, 27, also of Grady County, was charged separately in October for his involvement in the drug conspiracy. According to court documents, on or about April 2, 2023, the four defendants conspired to distribute pills containing fentanyl, which resulted in the fentanyl overdose death of a Grady County resident on April 3, 2023.
On October 5, 2023, Ellis pleaded guilty to his role in the distribution of fentanyl. On November 2, 2023, Payne, Mandrell, and Sweeten each pleaded guilty to distribution of fentanyl. As part of their pleas, Payne and Mandrell admitted to distributing a substance containing fentanyl and Sweeten admitted to facilitating the deal.
Last week, U.S. District Judge Jodi W. Dishman sentenced Ellis to serve 240 months, Payne to serve 100 months, and Sweeten to serve 30 months in federal prison. On May 6, 2024, Mandrell was sentenced to serve 36 months in federal prison. Each of the four defendants will also serve five years of supervised release upon their release from prison.
As part of the sentencings, the Court described fentanyl as “the single deadliest drug threat our country has ever encountered.”
“This case is yet another tragic reminder of the damage that one fentanyl-laced pill can cause,” said U.S. Attorney Robert J. Troester. “My office will continue to seek justice for families suffering with the loss of loved ones caused by fentanyl and hold accountable all involved in distributing this deadly poison.”
“DEA Oklahoma City is proud to stand with our numerous law enforcement partners in Central Oklahoma and champion the work that led to the significant sentence in this investigation,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas, which oversees operations in Oklahoma. “Ms. Mandrell is being held accountable for the poison that found its way into our neighborhoods by her hand. Whether it is one pill or 1,000 pills of fentanyl, the DEA will never cease its efforts to rid these drugs from the streets of Oklahoma.”
This case is in federal court because Ellis is a member of the Choctaw Nation, Payne is a member of the Chickasaw Nation, and the crimes occurred within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Drug Enforcement Administration and the Grady County Sheriff’s Office, in collaboration with the Chickasaw Nation Office of Tribal Justice Administration. Special Assistant U. S. Attorney Kaleigh Blackwell and Assistant U. S. Attorney Elizabeth Joynes prosecuted the case.
Reference is made to public filings for additional information.
Executive Pleads Guilty to Conspiring to Monopolize, Rig Bids and Allocate Territories for Wildfire ServicesRead the Press Release
The former owner of contractor companies that provided fuel truck services to the U.S. Forest Service’s wildfire fighters pleaded guilty today to conspiring to monopolize, rigging bids and allocating territories in violation of Sections 1 and 2 of the Sherman Antitrust Act. The plea follows a judicially authorized wiretap investigation that led to the indictment of two executives in December 2023.
According to a plea agreement and superseding information filed in the U.S. District Court for the District of Idaho, Ike Tomlinson, 60, conspired with co-defendant Kris Bird, 61, and others in at least two conspiracies. First, from at least as early as March 2015 until about March 2023, Tomlinson conspired to rig bids — and allocate territories — in the market for wildfire-fighting fuel truck services for certain dispatch centers of the U.S. Forest Service’s Great Basin wildfire dispatch region.
Then, from at least as early as February 2020 until about March 2023, Ike Tomlinson and Kris Bird also conspired to monopolize that same market. As summarized in his plea agreement, Tomlinson and his co-conspirators sought to exclude competing vendors from the market and to maintain his power to price higher than he would have otherwise. In March 2023, for example, Tomlinson coordinated his bids with Bird to “squeeze,” “drown,” “punch,” “low ball” and de-prioritize two competing vendors on the Forest Service’s dispatch priority lists.
“Congress criminalized conspiracies to monopolize in 1890 to protect the American promise of free enterprise,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty plea shows that the Justice Department and its Procurement Collusion Strike Force (PCSF) partners will deploy every appropriate law enforcement tool — including court-authorized wiretaps — to prosecute blatant monopolistic conduct that harms the public.”
“Agencies like the U.S. Forest Service rely on a fair bidding process to secure the best deal at the best price for taxpayers,” said U.S. Attorney Josh Hurwit for the District of Idaho. “When contractors collude rather than compete, they wrong the public and honest competitors who submitted bids fair and square.”
“The FBI will pursue and find those who would overcharge the federal government and submit false federal certifications,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Contractors who collude with their counterparts will be investigated and held accountable.”
“The defendant rigged prices of their fuel truck services, overcharging the U.S. Forest Service’s wildfire fighters,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Today’s plea agreement shows that there will be serious consequences for executives for conspiring against the federal government. The FBI and our partners are committed to ensuring the American government, and its taxpayers, are not victimized by criminal monopoly schemes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Idaho and FBI Salt Lake City Field Office, Boise Resident Agency investigated the case.
Trial Attorney Matthew Chou and Assistant Chief Christopher J. Carlberg of the Antitrust Division’s San Francisco Office and Assistant U.S. Attorney Sean M. Mazorol for the District of Idaho are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Executive Pleads Guilty to Conspiring to Monopolize, Rig Bids and Allocate Territories for Wildfire ServicesRead the Press Release
BOISE – The former owner of contractor companies that provided fuel truck services to the U.S. Forest Service’s wildfire fighters pleaded guilty today to conspiring to monopolize, rigging bids and allocating territories in violation of Sections 1 and 2 of the Sherman Antitrust Act. The plea follows a judicially authorized wiretap investigation that led to the indictment of two executives in December 2023.
According to a plea agreement and superseding information filed in the U.S. District Court for the District of Idaho, Ike Tomlinson, 60, of Terreton, conspired with co-defendant Kris Bird, 61, of Salmon, and others in at least two conspiracies. First, from at least as early as March 2015 until about March 2023, Tomlinson conspired to rig bids — and allocate territories — in the market for wildfire-fighting fuel truck services for certain dispatch centers of the U.S. Forest Service’s Great Basin wildfire dispatch region.
Then, from at least as early as February 2020 until about March 2023, Ike Tomlinson and Kris Bird also conspired to monopolize that same market. As summarized in his plea agreement, Tomlinson and his co-conspirators sought to exclude competing vendors from the market and to maintain his power to price higher than he would have otherwise. In March 2023, for example, Tomlinson coordinated his bids with Bird to “squeeze,” “drown,” “punch,” “low ball” and de-prioritize two competing vendors on the Forest Service’s dispatch priority lists.
“Congress criminalized conspiracies to monopolize in 1890 to protect the American promise of free enterprise,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty plea shows that the Justice Department and its Procurement Collusion Strike Force (PCSF) partners will deploy every appropriate law enforcement tool — including court-authorized wiretaps — to prosecute blatant monopolistic conduct that harms the public.”
“Agencies like the U.S. Forest Service rely on a fair bidding process to secure the best deal at the best price for taxpayers,” said U.S. Attorney Josh Hurwit. “When contractors collude rather than compete, they wrong the public and honest competitors who submitted bids fair and square.”
“The FBI will pursue and find those who would overcharge the federal government and submit false federal certifications,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Contractors who collude with their counterparts will be investigated and held accountable.”
“The defendant rigged prices of their fuel truck services, overcharging the U.S. Forest Service’s wildfire fighters,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Today’s plea agreement shows that there will be serious consequences for executives for conspiring against the federal government. The FBI and our partners are committed to ensuring the American government, and its taxpayers, are not victimized by criminal monopoly schemes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Idaho, and FBI Salt Lake City Field Office, Boise Resident Agency investigated the case.
Trial Attorney Matthew Chou and Assistant Chief Christopher J. Carlberg of the Antitrust Division’s San Francisco Office and Assistant U.S. Attorney Sean M. Mazorol for the District of Idaho are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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East Bay Entrepreneur Pleads Guilty to Tax EvasionRead the Press Release
OAKLAND – Salman Salman pleaded guilty today to one count of tax evasion in violation of 26 U.S.C. § 7201. The plea was accepted by the Honorable Haywood S. Gilliam, Jr., United States District Judge. The announcement was made by United States Attorney for the Northern District of California Ismail J. Ramsey and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.
Salman, 47, of Rodeo, Calif., was charged with a scheme to evade taxes by filing false Form 1040 joint income tax returns for himself and his wife for tax years 2016 through 2019. Specifically, Salman admitted to falsely underreporting income he and his wife enjoyed from three businesses he owned and operated during the course of the scheme, The Plug Tattoo & Piercing, Inc., S&S Real Estate Investment Group, and Synergy Investment Group Ohio Inc.
In the plea agreement, Salman admitted that he both understated income from his companies and that he claimed false and overstated expenses as part of his scheme to further reduce his tax obligations. In total, Salman admitted that he failed to disclose over $3.4 million in income he received from his companies for tax years 2016 through 2019.
On December 11, 2023, Salman was charged by information with four counts of tax evasion, in violation of 26 U.S.C. § 7201. Pursuant to the plea agreement, Salman admitted the conduct alleged as support for all four counts in the information, but pleaded guilty to Count Four, which charges him with tax evasion for tax year 2019.
Judge Gilliam scheduled Salman’s sentencing hearing for September 18, 2024. For the tax evasion charge, Salman faces a maximum prison term of five years, a maximum fine of $250,000, and restitution of at least $438,247 to the IRS. As part of any sentence, the court may also order Salman to serve a period of supervised release and to pay additional assessments, however, the court will impose a sentence only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney Thomas Green, with the assistance of Kay Konopaske and Christine Tian of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the Internal Revenue Service-Criminal Investigation.
District Man Sentenced to Prison for Hardware Store Break-inRead the Press Release
WASHINGTON – Earl Britt, 60, of Washington, D.C., was sentenced today to 36 months in prison for burglarizing the W.S. Jenks & Sons Hardware store on February 12, 2024. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). Britt pleaded guilty to one count of second-degree burglary in March 7, 2024, in the Superior Court of the District of Columbia.
According to the government’s evidence, on February 12, 2024, at approximately 9:05 p.m., MPD officers responded to the report of a burglary at the W.S. Jenks & Sons Hardware store located at 910 Bladensburg Rd, NE. When officers arrived, they observed that the front glass window pane of the store had been shattered. A man walking his dog in the area at the time of the break-in reported seeing a man break the window to the store and gave a description of the man to the officers. The store manager, who had received an alert on his phone when Britt broke into the store, was able to provide footage from the surveillance video to law enforcement. Surveillance video from the store showed a man, matching Britt’s description, destroying the store’s glass windowpane with a cinder block and crawling inside of the broken window into the store. The video further captured the defendant jump behind the counter where the register is located and begin to open and search the register drawers for cash. A short time later, Britt is seen leaving the store through the same broken window where he entered and fled on foot along Bladensburg Rd NE.
Britt was apprehended a short time later, after officers were able to match his description with the surveillance video and eyewitness account.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Anthony Cocuzza and Lindsey Miller, who investigated and prosecuted the case.
Delaware County Man Currently Incarcerated for Murder, Robbery, and Firearm Crimes Sentenced to Five Years in Federal Prison for Methylfentanyl and Cocaine ViolationsRead the Press Release
PITTSBURGH, Pa. – A resident of Delaware County, Pennsylvania, has been sentenced in federal court to 60 months in prison on his conviction of possessing trans-3-methylfentanyl, cis-3-methylfentanyl, and cocaine with intent to distribute, United States Attorney Eric G. Olshan announced today.
United States District Judge Robert J. Colville imposed the sentence on Jamir Hughes, 23.
According to information presented to the Court, on May 27, 2020, Hughes possessed 17 grams of a mixture of trans-3-methylfentanyl and cis-3-methylfentanyl and 115 grams of cocaine in a vehicle that was traveling on the Pennsylvania Turnpike. Hughes was on his way from the Philadelphia area to Butler, where he intended to distribute the controlled substances, when Pennsylvania State Police stopped the vehicle in Somerset County and seized the controlled substances.
In 2023, Hughes was convicted in two prosecutions in Pennsylvania state courts—the Delaware County Court of Common Pleas and the Philadelphia County Court of Common Pleas— of committing third-degree murder, robbery, and firearm crimes. He was sentenced in Delaware County to 25-60 years in prison, and in Philadelphia County to 3.5-7 years in prison.
Judge Colville directed that 12 months of Hughes’s 60-month federal prison sentence in this case be served consecutive to the Philadelphia County and Delaware County sentences, with the remaining 48 months of the federal sentence to be served concurrently. Judge Colville also directed that Hughes serve four years of supervised release following his federal prison sentence.
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, Federal Bureau of Investigation, and Butler County District Attorney’s Drug Task Force for the investigation leading to the successful prosecution of Hughes.
Defense Contractor Pleads Guilty to Fraud, Money Laundering and Unlawful Export of Military DataRead the Press Release
Tampa, FL – Yuksel Senbol, 36, of Orlando, pleaded guilty to 25 felony counts in Florida federal court, including conspiracy to defraud the United States, conspiracy to commit wire fraud, eight counts of wire fraud, conspiracy to commit money laundering, seven counts of money laundering, conspiracy to violate the Export Control Reform Act (ECRA), four counts of violating the ECRA, and one count of violating the Arms Export Control Act.
According to court documents, beginning in approximately April 2019, Senbol operated a front company in the Middle District of Florida called Mason Engineering Parts LLC. She used this front company to assist her co-conspirators, Mehmet Ozcan and Onur Simsek, to fraudulently procure contracts to supply critical military components to the Department of Defense. These components were intended for use in the U.S. Navy Nimitz and Ford Class Aircraft Carriers, U.S. Navy Submarines, U.S. Marine Corps Armored Vehicles, and U.S. Army M-60 Series Tank and Abrahams Battle Tanks, among other weapons systems.
To fraudulently procure the government contracts, Senbol and her co-conspirators falsely represented to the U.S. government and to U.S. military contractors that Mason Engineering Parts LLC was a vetted and qualified manufacturer of military components, when in fact, the parts were being manufactured by Ozcan and Simsek in Turkey. And, as Senbol knew, Simsek’s involvement had to be concealed from the U.S. government because he had been debarred from contracting with the U.S. government after being convicted of a nearly identical scheme in the Southern District of Florida.
In order to enable Ozcan and Simsek to manufacture the components in Turkey, Senbol assisted them in obtaining sensitive, export-controlled drawings of critical U.S. military technology. Using software that allowed Ozcan to remotely control her computer – and thus evade security restrictions that limited access to these sensitive military drawings to computers within the United States – Senbol knowingly facilitated the illegal export of these drawings. She did so despite having executed numerous agreements promising to safeguard the drawings from unlawful access or export, and despite the clear warnings on the face of each drawing that it could not be exported without obtaining a license.
Once Ozcan and Simsek manufactured the components in Turkey, they shipped them to Senbol, who repackaged them – making sure to remove any reference to their Turkish origin. The conspirators then lied about the origin of the parts to the U.S. government and a U.S. government contractor to receive payment for the parts. Senbol then laundered hundreds of thousands of dollars in criminal proceeds back to Turkey through international wire transfers.
This scheme continued until uncovered and disrupted by federal investigators. Parts supplied by Senbol were tested by the U.S. military and were determined not to conform with product specifications. Many of the components supplied to the U.S. military by Senbol were “critical application items,” meaning that failure of these components would have potentially rendered the end system inoperable.
Senbol faces up to 10 years in prison for the conspiracy to defraud the United States offense and for each count of money laundering. She faces up to 20 years in prison for each count of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to violate the ECRA, violating the ECRA and violating the Arms Export Control Act. Sentencing is scheduled for Aug. 6. Alleged co-conspirators Mehmet Ozcan and Onur Simsek are fugitives.
This case was investigated by the FBI; General Services Administration, Office of Inspector General; Defense Criminal Investigative Service; Department of Commerce, Bureau of Industry and Security; Air Force Office of Special Investigations; Homeland Security Investigations; and Department of State, Directorate of Defense Trade Controls.
Assistant U.S. Attorneys Daniel J. Marcet and Lindsey Schmidt for the Middle District of Florida, and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defense Contractor Pleads Guilty to Fraud, Money Laundering and Unlawful Export of Military DataRead the Press Release
Yuksel Senbol, 36, of Orlando, pleaded guilty to 25 felony counts in Florida federal court, including conspiracy to defraud the United States, conspiracy to commit wire fraud, eight counts of wire fraud, conspiracy to commit money laundering, seven counts of money laundering, conspiracy to violate the Export Control Reform Act (ECRA), four counts of violating the ECRA, and one count of violating the Arms Export Control Act.
According to court documents, beginning in approximately April 2019, Senbol operated a front company in the Middle District of Florida called Mason Engineering Parts LLC. She used this front company to assist her co-conspirators, Mehmet Ozcan and Onur Simsek, to fraudulently procure contracts to supply critical military components to the Department of Defense. These components were intended for use in the U.S. Navy Nimitz and Ford Class Aircraft Carriers, U.S. Navy Submarines, U.S. Marine Corps Armored Vehicles, and U.S. Army M-60 Series Tank and Abrahams Battle Tanks, among other weapons systems.
To fraudulently procure the government contracts, Senbol and her co-conspirators falsely represented to the U.S. government and to U.S. military contractors that Mason Engineering Parts LLC was a vetted and qualified manufacturer of military components, when in fact, the parts were being manufactured by Ozcan and Simsek in Turkey. And, as Senbol knew, Simsek’s involvement had to be concealed from the U.S. government because he had been debarred from contracting with the U.S. government after being convicted of a nearly identical scheme in the Southern District of Florida.
In order to enable Ozcan and Simsek to manufacture the components in Turkey, Senbol assisted them in obtaining sensitive, export-controlled drawings of critical U.S. military technology. Using software that allowed Ozcan to remotely control her computer – and thus evade security restrictions that limited access to these sensitive military drawings to computers within the United States – Senbol knowingly facilitated the illegal export of these drawings. She did so despite having executed numerous agreements promising to safeguard the drawings from unlawful access or export, and despite the clear warnings on the face of each drawing that it could not be exported without obtaining a license.
Once Ozcan and Simsek manufactured the components in Turkey, they shipped them to Senbol, who repackaged them – making sure to remove any reference to their Turkish origin. The conspirators then lied about the origin of the parts to the U.S. government and a U.S. government contractor to receive payment for the parts. Senbol then laundered hundreds of thousands of dollars in criminal proceeds back to Turkey through international wire transfers.
This scheme continued until uncovered and disrupted by federal investigators. Parts supplied by Senbol were tested by the U.S. military and were determined not to conform with product specifications. Many of the components supplied to the U.S. military by Senbol were “critical application items,” meaning that failure of these components would have potentially rendered the end system inoperable.
Senbol faces up to 10 years in prison for the conspiracy to defraud the United States offense and for each count of money laundering. She faces up to 20 years in prison for each count of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to violate the ECRA, violating the ECRA and violating the Arms Export Control Act. Sentencing is scheduled for Aug. 6. Alleged co-conspirators Mehmet Ozcan and Onur Simsek are fugitives.
This case was investigated by the FBI; General Services Administration, Office of Inspector General; Defense Criminal Investigative Service; Department of Commerce, Bureau of Industry and Security; Air Force Office of Special Investigations; Homeland Security Investigations; and Department of State, Directorate of Defense Trade Controls.
Assistant U.S. Attorneys Daniel J. Marcet and Lindsey Schmidt for the Middle District of Florida, and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defendants in Deadly Drug Distribution Scheme Sentenced to Federal PrisonRead the Press Release
DETROIT – The last of seven defendants in a drug conspiracy that resulted in overdoses and at least one death was sentenced to 10 years in federal prison, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
Today, United States District Court Judge Bernard A. Friedman sentenced Lavante Brown, 30, of Detroit. Brown pleaded guilty to conspiracy to distribute with the intent to distribute a controlled substance and distribution of fentanyl resulting in death on May 16, 2023.
An FBI investigation revealed that, for years, a group of dealers operated an on-demand drive through for drugs, including crack cocaine, heroin, and fentanyl, on Yacama street in Detroit, Michigan. Drug customers who drove down the street were served at their car window with drugs at any time of day, as many times as they could afford. Residents of the area had been plagued with this incessant drug activity, resulting in home abandonments, which were, in turn, used to further the distribution. Drugs sold from Yacama street caused many overdoses, including at least one fatal overdose.
Seven members of the conspiracy, most of whom had lengthy criminal histories, were charged in federal court. All seven pleaded guilty to offenses related to the sales of controlled substances on Yacama, before United States District Judge Bernard A. Friedman. The co-defendants, and their sentences, are listed below:
- Anthony Foster, 38, of Detroit, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and was sentenced to 15 years in prison.
- Willie Swift, 58, of Detroit, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and was sentenced to over 10 years in prison.
- Terrance Hall, 34, of Eastpointe, pleaded guilty to conspiracy to distribute with the intent to distribute a controlled substance and was sentenced to 10 years in prison.
- Dana Hudson, 46, of Detroit, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and was sentenced to 5 years in prison.
- David Terry, 41, of Harper Woods, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and was sentenced to over 4 years in prison.
- Justin Fields, 33, of Rochester Hills, pleaded guilty to conspiracy to distribute and possess with the intent to distribute a controlled substance and was sentenced to one day custody with credit for time-served, followed by three years of supervised release.
“These defendants believed that they could take over areas of our city, destroy neighborhoods, and risk others’ lives with impunity, but these sentences should serve as notice that federal law enforcement will not stand idly by while drug dealers do harm to our community,” U.S. Attorney Ison said. “
"Today's sentencing marks a significant victory in our relentless fight against opioid trafficking and its devastating impact on our community," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "This case sends a strong message that we will not tolerate activities that endanger our citizens' lives and will continue to work tirelessly to hold those responsible accountable. I commend the diligent efforts of the FBI's Oakland County Gang and Violent Crime Task Force in bringing these criminals to justice."
This case was investigated by special agents of the Federal Bureau of Investigation with the Oakland County Gang and Violent Crime Task Force. This case was prosecuted by Assistant U.S. Attorney Tara Hindelang.
Defendant Sentenced for Impersonating a Federal AgentRead the Press Release
GREENSBORO – A Greensboro man convicted of posing as a federal law enforcement agent has been sentenced, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
KHRIY SHERROD SIMON, age 33, was sentenced today to 33 months in prison. SIMON was found guilty at trial on January 24, 2024, of impersonating a special agent of the Drug Enforcement Administration (DEA).
Evidence presented at trial showed that on March 29, 2023, in a parking lot on Bridford Parkway in Greensboro, SIMON parked behind and blocked a car occupied by the driver and a passenger. Wearing a black tactical vest and a black balaclava, and armed with a weapon, SIMON aggressively approached the driver’s side of the car. He yelled at the occupants, demanding that they put their hands where he could see them, ordering them not to move, and announcing himself as the DEA. SIMON told the women that they resembled two people suspected of murder and drug crimes. He ordered them out of the car, claiming he needed to search it for evidence of those crimes. Even after he searched the car, he continued to detain the women and only released them after conferring with the driver of another car, an associate of SIMON’s, who arrived on scene. Throughout the ordeal, SIMON repeated to the women that he was with the DEA. SIMON is not and has never been a special agent of the DEA or a member of any federal or state law enforcement agency.
“By impersonating a law enforcement officer, the defendant endangered the lives of both victims and other citizens in the surrounding area,” said United States Attorney Sandra J. Hairston. “The investigation and prosecution of this case, and the sentence imposed today, send a clear message that such reprehensible conduct will not be tolerated.”
SIMON was sentenced by the Honorable William L. Osteen, United States District Judge in the United States District Court for the Middle District of North Carolina. At the conclusion of his active term of imprisonment, SIMON will be subject to supervised release for one year.
The case was investigated by the Federal Bureau of Investigation and the Greensboro Police Department. The case was prosecuted by Assistant United States Attorneys Laura Jeanne Dildine and Nicole R. DuPré.
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Dartmouth Woman Indicted for Embezzling from Multiple EmployersRead the Press Release
BOSTON – A Dartmouth woman has been indicted by a federal grand jury in Boston for allegedly embezzling hundreds of thousands of dollars from two different employers.
Jasmyne Botelho, 41, was charged with two counts of wire fraud. Botelho was previously arrested and charged by criminal complaint in December 2023.
According to the charging documents, between September 2017 and April 2020, Botelho stole at least $280,000 from her employer. Specifically, it is alleged that Botelho directed payments purportedly intended for the company’s vendors to bank accounts she controlled and used company funds to make payments on personal credit cards and an auto loan. To hide her scheme, Botelho allegedly falsified her employer’s books and records to make it appear as though the payments had in fact been sent to legitimate vendors rather than to Botelho.
It is further alleged that, between May 2022 and December 2023, Botelho improperly inflated her payroll from another employer by more than $160,000. Botelho allegedly concealed her scheme by manipulating her employer’s payroll and accounting software to hide her inflated payroll as well as phony “reimbursements” she paid herself.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Convicted felon pleads guilty to new child pornography chargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Preston Herbst, 27, of Canandaigua, NY, pleaded guilty to transferring obscene matter before U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in July 2023, Herbst was sentenced to serve 36 months in prison after being convicted on a federal charge of possession of child pornography. Herbst was allowed to self-surrender to the Bureau of Prisons and was scheduled to begin his sentence on October 12, 2023. Prior to self-surrendering, on September 3, 2023, the National Center for Missing and Exploited Children received information from Snap Inc., that a user had uploaded child pornography to the Snapchat platform. Subsequent investigation traced the user back to Herbst’s residence. In October and November 2023, search warrants were executed on Herbst’s Snapchat account and at his residence. The search of the Snapchat account determined that Herbst used the account to trade child pornography in September 2023, after he had been sentenced, but before self-surrendering to the Bureau of Prisons. Herbst was under the supervision of United States Probation when the uploads took place and had been using a prohibited device in violation of his release conditions.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for September 3, 2024, at 3:00 p.m. before Judge Geraci.
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Concord Man Sentenced to 20 Years in Prison for Coercing and Enticing Minors to Produce Child Pornography and A Related CrimeRead the Press Release
OAKLAND – Javier Antonio Ramirez was sentenced to serve 20 years in prison for coercing and enticing teenaged girls to produce child pornography and receiving child pornography this week, announced U.S. Attorney Ismail J. Ramsey and Homeland Security Investigations (“HSI”) San Francisco Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Jon S. Tigar, United States District Judge.
Ramirez, 29, of Concord, was charged by indictment on March 2, 2023, with one count of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b), and one count of receipt of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b). Ramirez pleaded guilty to both counts on November 13, 2023.
“Javier Ramirez’s conduct is every parent’s nightmare,” said U.S. Attorney Ismail J. Ramsey. “That Ramirez introduced minors to fentanyl, a lethal drug, to assist in coercing and exploiting them and then watched those minors overdose repeatedly, only makes matters worse. Let this sentence serve as a reminder that this Office will take all steps available to hold accountable those who prey on and exploit our youth.”
“The sentencing of Ramirez to 20 years in prison for coercing and enticing minors to produce child sexual abuse material while admittedly poisoning them with the dangerous narcotics is a stern reminder of the imperative to safeguard our children,” said Special Agent in Charge Tatum King. “This verdict underscores HSI’s unwavering commitment to protect the innocent and hold perpetrators of such despicable crimes fully accountable under the law.”
According to the plea agreement, Ramirez admitted that between June 2021 through February 2023, Ramirez used social media to identify minor girls to persuade them to engage in sexual intercourse and sexually explicit conduct with Ramirez, which, on occasion, Ramirez would film or photograph. Ramirez admitted that the first step of the pattern of coercion began with Ramirez supplying narcotics to girls, who were all under the age of 18 years old. Ramirez provided narcotics, including cocaine and fentanyl, to these victims at discounted prices or even for free in exchange for sexual acts.
According to court filings, Ramirez was the one who introduced many of the victims to fentanyl for the first time, when the victims were only 16 or 17 years old. Over time, Ramirez watched each identified victim overdose multiple times and yet continued to supply more fentanyl to the victims, all while sexually exploiting them. In January 2023, one of the minor victims suffered a non-fatal fentanyl overdose while at a high school in Contra Costa County, from fentanyl Ramirez took her to procure in San Francisco the night before.
Ramirez also pleaded guilty to receipt of child pornography. According to the plea agreement, Ramirez admitted having almost 100 videos and images of child pornography, including of prepubescent minors and toddlers.
Judge Tigar sentenced Ramirez to 240 months of imprisonment for the coercion and enticement count, to be served concurrently with 216 months of imprisonment for the receipt of child pornography count. In addition to the prison term, Judge Tigar also ordered Ramirez to serve 15 years of supervised release which will begin after the term of imprisonment. Ramirez was immediately remanded into custody.
Assistant U.S. Attorney Kelly Volkar of the Oakland Branch of the United States Attorney’s Office is prosecuting the case, with the assistance of Mark DiCenzo. The prosecution is the result of an investigation by Homeland Security Investigations, the Contra Costa Internet Crimes Against Children Task Force, the Lafayette Police Department, and the Contra Costa Sherriff’s Office.
Online child sexual exploitation and abuse is a threat to all children and teens who use the internet. Prevention and reporting resources for children and caregivers are now available online at www.dhs.gov/know2protect and includes HSI’s signature iGuardian training program.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.
Compton Mother and Son Indicted for Allegedly Forcing Two 13-Year-Old Victims to Engage in Commercial Sex ActsRead the Press Release
LOS ANGELES – A federal grand jury has returned a six-count indictment against a Compton mother and son for allegedly forcing two 13-year-old victims to engage in sexual activity for money, the Justice Department announced today.
Daisy Pollard-Gilliam, 41, a.k.a. “Queen,” and her son, Reuben Gilliam, 24, a.k.a. “Tre,” are charged with one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor. Reuben Gilliam also is charged with one count of production of child pornography and one count of distribution of child pornography. Daisy Pollard-Gilliam also is charged with one count of being a felon in possession of a firearm and ammunition.
Reuben Gilliam is in state custody on unrelated charges and is expected to be transferred over to federal custody in the coming weeks. Daisy Pollard-Gilliam was arrested on April 24 and a federal magistrate judge ordered her jailed without bond. Her arraignment is scheduled for May 14 in United States District Court in downtown Los Angeles.
According to court documents, the victims were walking down a street in Bell Gardens at approximately 2 a.m. on June 3, 2023, when a vehicle containing three men – including Reuben Gilliam – stopped next to them. One of the men exited the vehicle and told the minor victims to get in. The victims were then driven to a residence in Lynwood.
Throughout the next week, both victims were required to engage in sexual activity with Reuben Gilliam, Daisy Pollard-Gilliam and unidentified commercial sex customers to make money, the indictment alleges. The customers told one victim that they paid $100 to have sexual intercourse with her and the defendants collected the cash after the customer had sex with the victims, according to court documents. The defendants allegedly also directed the victims to dress in lingerie and pose for pictures to be used to advertise commercial sex.
After spending a few nights at the Lynwood residence, the defendants allegedly saw missing children’s flyers in circulation on social media – identifying both victims as 13 years old – seeking the minor victims’ whereabouts. The victims were then transferred to different locations in Los Angeles County.
On the evening of June 9, 2023, law enforcement officials rescued the victims from a recreational vehicle in Gardena. Among the items law enforcement seized during the rescue were clothing, shoes, eyewear, and one cellphone that the suspects allegedly gave the victims so they could call the suspects if they were in trouble. The victims allegedly used the cellphone to text and call Daisy Pollard-Gilliam on multiple occasions.
On June 6, 2023, Daisy Pollard-Gilliam distributed images and videos of the victims to an inmate at Kern Valley State Prison in Delano, California, according to court documents. A review of Reuben Gilliam’s Instagram account made pursuant to a search warrant revealed that on June 4, 2023, he communicated with other Instagram users regarding his commercial sex trafficking of the two victims, according to court documents.
In April 2024, Pollard-Gilliam allegedly possessed a semi-automatic pistol and 25 rounds of ammunition. She is permitted to possess neither because of her felony conviction in Los Angeles Superior Court in 2021 for child abandonment.
An indictment 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, the defendants would face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of life in federal prison.
The FBI and the Los Angeles County Sheriff’s Department are investigating this matter.
Assistant United States Attorneys Damaris Diaz of the Violent and Organized Crime Section and Angela C. Makabali of the Cyber and Intellectual Property Crimes Section are prosecuting this case.
Any member of the public who has information related to child sex crimes is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565 or report tips online at https://tips.fbi.gov.
Bristol, Tennessee Man Sentenced on Meth, Firearms ChargesRead the Press Release
ABINGDON, Va. – A Bristol, Tennessee man who conspired with others, including a man incarcerated in Georgia, to distribute multiple kilograms of methamphetamine was sentenced last week to 180 months in federal prison.
Michael Paul Brown, 39, pled guilty in November 2023 to one count of conspiring to possess with the intent to distribute and distribute more than 500 grams of methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, beginning in July 2022, Brown conspired with Christopher David Johnson and others to traffic and distribute multiple kilograms of methamphetamine from Georgia into Southwest Virginia. At the time, Johnson was incarcerated in Georgia and used multiple cell phones to direct the methamphetamine distribution operation from prison.
In general, Johnson coordinated with Brown regarding travel from Virginia to Georgia to meet with individuals to collect kilograms of methamphetamine. During the conspiracy, Brown routinely carried a handgun to protect himself, his drugs, and his money.
Once Brown arrived back in Virginia with methamphetamine, he would then distribute it to wholesale distributors who would then distribute the methamphetamine further.
U.S. Attorney Christopher R. Kavanaugh and Jared Forget, Special Agent in Charge of Drug Enforcement Administration’s Washington Division made the announcement.
The Drug Enforcement Administration and multiple law enforcement agencies in Georgia, Tennessee, and Virginia investigated the case, including the Bristol Tennessee Police Department, Bristol Virginia Police Department, and Sullivan County Sheriff’s Office – 2nd Judicial Drug Task Force.
Assistant U.S. Attorneys Corey Hall and Whit Pierce are prosecuting the case.
Box Elder man sentenced to more than six years in prison for sexually abusing teen on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man was sentenced today to six years and 10 months in prison, to be followed by five years of supervised release, for sexually abusing a teenage girl he lured through social media to his isolated home on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said.
Jonathan Ray Gonsalez, 40, pleaded guilty in January to sexual abuse.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that on Jan. 3, 2023, Gonsalez initiated contact with the victim, a 16-year-old identified as Jane Doe, though Facebook Messenger and ultimately lured the victim to his home through comments. Jane Doe arrived at Gonsalez’s residence, which was isolated, around 10 p.m. A short time later, Jane Doe got scared and wanted to leave, but the temperature was below freezing. Jane Doe asked Gonsalez to have someone pick her up and fell asleep while waiting for the ride. Jane Doe awoke to Gonsalez sexually abusing her. After he was done, Jane Doe left the residence and called 911 for help. A Rocky Boy’s Police Department officer found Jane Doe and picked her up on the road near Gonsalez’s residence.
Assistant U.S. Attorneys Amanda L. Myers and Kalah A. Paisley prosecuted the case. The FBI and Rocky Boy’s Police Department conducted the investigation.
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Billings woman admits carjackingRead the Press Release
BILLINGS — A Billings woman accused of carjacking a vehicle while armed admitted to charges today, U.S. Attorney Jesse Laslovich said.
Talena Florence Boyiddle, 20, pleaded guilty to a superseding information charging her with carjacking and possessing a firearm in furtherance of a crime of violence. Boyiddle faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release on the carjacking crime and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and three years of supervised release on the firearm charge.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Boyiddle was detained pending further proceedings.
In court documents, the government alleged that on Jan. 23, 2023, the victim, identified as John Doe 1 reported to the Billings Police Department that he had been carjacked. The victim told law enforcement that he had met a woman he knew as “Nicole” online and that at 1 a.m. on Jan. 23, 2023, she arranged for him to pick her up. When the victim arrived, the woman got into the front seat and two unknown males got into the back seat. The three individuals instructed the victim to drive to an alley behind a laundromat. There, the woman pulled out a Glock pistol, racked it twice and pointed it at John Doe 1. All three individuals made statements that they intended to rob the victim. The victim got out of the car and ran away, and the three individuals took his car, a 2003 Honda Civic. An officer found the car with switched plates later the same day and had it towed. A few days after the car was returned to the victim, it was stolen again. In February 2023, police found Boyiddle in the victim’s car and in possession of a Glock 9mm handgun. Investigators determined through a Facebook photo that “Nicole” was Boyiddle. The government further alleged that Boyiddle and her associates were able to steal the car a second time by using keys they had obtained from the carjacking.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case. The Billings Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
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.
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Bend Repeat Offender Sentenced to More Than 12 Years Federal Prison for Illegally Possessing Methamphetamine and a FirearmRead the Press Release
EUGENE, Ore.—A Bend, Oregon man with a lengthy criminal history was sentenced to more than 12 years in federal prison today for possessing methamphetamine and a firearm.
Dana Lee Johnson, 41, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, on March 26, 2021, a deputy from the Deschutes County Sheriff’s Office responded to the Tetherow Resort in Bend after a housekeeper found a bag of suspected drugs in a guest room. Upon arrival, the deputy located a one-gallon plastic bag containing approximately one quarter pound of methamphetamine, two hypodermic needles, and a metal safe. The safe was later found to contain an additional half pound of methamphetamine. Hotel records indicated that Johnson, who had a suspended driver’s license and an outstanding felony warrant for failing to register as a sex offender, was the last guest to stay in the room where the drugs were found.
On April 1, 2021, a deputy returned to the resort after learning that Johnson had contacted the hotel to inquire about the safe he had left behind. One week later, on April 8, 2021, law enforcement officers located and stopped Johnson traveling in a rental vehicle. Investigators searched the vehicle and found more than $7,000 in cash, a rental car agreement in Johnson’s name, and a black backpack belonging to Johnson. Inside the backpack, investigators found and seized an additional half pound of methamphetamine, nearly a half pound of heroin, and a loaded semi-automatic pistol.
On November 18, 2021, a federal grand jury in Eugene returned a four-count indictment charging Johnson with illegally possessing a firearm as a convicted felon, possessing with intent to distribute methamphetamine and heroin, and carrying a firearm during and in relation to a drug trafficking crime.
On October 11, 2023, Johnson pleaded guilty to illegally possessing a firearm as a convicted felon and possessing with intent to distribute methamphetamine.
This case was investigated by the Deschutes County Sheriff’s Office and Central Oregon Drug Enforcement Team (CODE) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
The CODE team is a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) program. CODE includes members of the Bend, Redmond, Prineville, Madras, Sunriver, and Black Butte Police Departments; the Warm Springs Tribal Police Department; the Deschutes, Crook, and Jefferson County Sheriff and District Attorney’s Offices; the Oregon State Police; the Oregon National Guard; DEA; and the FBI.
Bank Employee Indicted on Charges of Bank Fraud and Identity TheftRead the Press Release
CLEVELAND – A federal grand jury has returned a 17-count indictment charging Yue Cao, 34, of Winfield, Illinois, accusing him of bank fraud, aggravated identity theft, and engaging in monetary transactions in criminally derived property in connection with a scheme to steal funds from identity theft victims’ accounts at the bank where he worked.
According to the indictment, from between approximately May 2022 to April 2023, Cao allegedly engaged in a scheme to defraud the Ohio-based bank where he worked, and its customers, by transferring funds from those customers’ accounts to ones that Cao controlled, including accounts he had established in the customers’ names, all without their knowledge or authorization. He diverted the money stolen from the customer accounts for his personal use.
Cao was a quantitative modeling analyst at the bank and used his position to locate customers who had not yet enrolled in online banking services, primarily targeting elderly customers as identity theft victims. Without the victims’ knowledge, Cao created email addresses in their names and enrolled their accounts in online banking without their knowledge. By setting up online banking, he both obtained control of the victims’ accounts and ensured that bank statements and other notices about the accounts would be sent to the email addresses he controlled. Cao then used the victims’ personal identifying information to open unauthorized bank accounts and brokerage accounts in their names. Cao used his control of these accounts to set up at least $2.1 million in unauthorized online transfers from the victims’ true accounts to the unauthorized accounts he had opened in the victims’ names and to Cao’s own financial accounts.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The investigation was conducted by the FBI Cleveland Division. The case is being prosecuted by Assistant United States Attorney Edward Brydle.
7 May 2024
Wyoming County Man and Raleigh County Woman Plead Guilty to Evading Financial Reporting RequirementsRead the Press Release
BECKLEY, W.Va. – Merrick Rice, 43, of Mullens, and Miranda Aliff, 32, of Rock Creek, each pleaded guilty today to structuring transactions with one or more domestic financial institutions. Each admitted to structuring bank deposits of illicit drug proceeds to evade currency transaction reporting requirements.
According to court documents and statements made in court, beginning in or around mid-2019 Rice and Aliff, both then in a romantic relationship, became involved in a conspiracy to distribute marijuana and other controlled substances in and around Mullens. Aliff admitted that Rice obtained the marijuana in wholesale quantities from Jack Paskin, 33, of Cleveland Heights, Ohio, who caused the marijuana to be shipped to them from various sources in California, Oregon and elsewhere.
On March 2, 2020, Rice created She Paints Quite a Lot LLC, a single-member limited liability corporation, with the West Virginia Secretary of State. Aliff was listed as the LLC’s sole member. On March 3, 2020, Paskin, Rice and Aliff traveled to the Beckley branch of domestic financial institution where they opened a business bank account in the name of the LLC. Paskin and Aliff were listed as signers on the bank account.
Rice and Aliff admitted that the LLC had no legitimate business purpose. Rice and Aliff further admitted that the LLC was created to transfer the proceeds of the marijuana distribution conspiracy from them to Paskin. Beginning on March 17, 2020 and continuing through August 13, 2020, Rice, Aliff and others connected to this conspiracy made cash deposits of less than $10,000 in the LLC’s bank account at the Beckley branch. The deposits were made in 27 transactions and totaled $228,000. Rice and Aliff admitted that these transactions were specifically designed to avoid currency reporting requirements. Financial institutions are required to report cash deposits of more than $10,000, and federal law prohibits structuring multiple cash deposits to avoid this reporting requirement. Rice and Aliff further admitted that the $228,000 consisted of proceeds from the conspiracy to distribute controlled substances.
Rice also admitted to assisting other individuals in depositing a total of $54,000 in increments of $9,000 in the LLC’s bank account on six separate occasions between June 1, and June 23, 2020. Rice admitted that he knew the June 23, 2020, bank deposit was made in an amount that would avoid triggering the reporting requirement.
Aliff also admitted that she and Rice purchased 111 U.S. Postal Service money orders totaling $109,000 as part of a method to pay Paskin. Rice drove Aliff to different posts offices in or near Raleigh County and directed Aliff to purchase a $1,000 money order at each post office. Federal law requires the U.S. Postal Service to obtain information from the purchaser of money orders, wire transfers, and stored value cards when the dollar amount of cash purchases total $3,000 or more. Aliff admitted that Rice advised her how to structure these transactions to avoid triggering the U.S. Postal Service reporting requirements. Aliff further admitted that Rice involved another individual to travel to these posts offices and purchase the money orders.
The money orders were payable to Paskin or to Akashic Connections, a business entity established by Paskin. Once Rice had secured the necessary amount of money orders, usually totaling $8,000, he and Aliff would deposit them at Beckley bank branches into Paskin’s personal bank account or a business account in the name of Akashic Connections.
Rice and Aliff are scheduled to be sentenced on August 30, 2024, and each faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
On February 21, 2024, a federal grand jury returned an indictment charging Paskin with conspiracy to commit money laundering. Paskin awaits trial. An indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA).
United States Magistrate Judge Omar J. Aboulhosn presided over the hearings. Assistant United States Attorney Jonathan T. Storage is prosecuting the cases.
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. 5:24-cr-66 (Rice) and 5:24-cr-65 (Aliff).
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West Haven Man Charged with Narcotics Distribution OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and New Haven Police Chief Karl Jacobson today announced that a federal grand jury in Hartford has returned an indictment charging LEVERN MARION, 35, of West Haven, with possession with intent to distribute 500 grams or more of cocaine and a quantity of fentanyl.
The indictment was returned on May 1, 2024. Marion appeared today in New Haven federal court and pleaded not guilty to the charge.
As alleged in court documents, an investigation that included surveillance, trash pulls, and traffic stops revealed that Marion was distributing controlled substances in and around New Haven. Marion was arrested on March 27, 2024. On that date, a court authorized search of a New Haven residence connected to him revealed approximately 800 grams of cocaine, approximately 260 grams of crack cocaine, and numerous wax folds containing fentanyl.
If convicted of the charge in the indictment, Marion faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Marion has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force and the New Haven Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Brendan J. Keefe.
Virginia Man Sentenced to More than Six Years in Prison for Tax SchemeRead the Press Release
A Virginia businessman was sentenced to 78 months in prison for evading the payment of employment taxes, filing false tax returns and obstructing the IRS.
According to court documents and evidence presented at trial, between approximately January 2008 through December 2009, James C. Jones Jr. owned and operated Lifeline Ambulance Service Inc. He was responsible for paying to the IRS approximately $200,000 in Social Security, Medicare and income taxes withheld from his employees’ wages. After Jones failed to do so, the IRS assessed the outstanding employment taxes against him personally.
When the IRS attempted to collect those taxes, Jones lied, claiming that he did not have the assets to pay the taxes. In fact, Jones owned several Caribbean beachfront condominiums, multiple foreign bank accounts and a classic “muscle” car collection. Jones later continued trying to thwart the IRS’s collection efforts by filing false 2013 through 2018 tax returns that did not report the rental income from his Caribbean properties and claimed false deductions.
After Jones received a subpoena for records of foreign bank accounts from the Justice Department, he falsely reported that he did not have any responsive records, when in fact, he possessed those records as the director and owner of a number of foreign holding companies.
Jones’s conduct caused a tax loss to the IRS of at least $1.5 million.
In addition to the his prison sentence, U.S. District Judge Michael F. Urbanski for the Western District of Virginia ordered Jones to serve three years supervised release and pay a fine of $250,000 and $394,508 in restitution to the United States. Jones was also ordered to pay the costs of prosecution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Christopher Kavanaugh for the Western District of Virginia and Special Agent in Charge Kareem Carter of the IRS Criminal Investigation Division’s Washington D.C. Field Office made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Francesca Bartolomey, Todd Ellinwood and Brian Flanagan of the Justice Department’s Tax Division and Assistant U.S. Attorney Charlene Day for the Western District of Virginia prosecuted the case. Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Kavanaugh also thanked Assistant U.S. Attorney Kelly McGann for the Western District of Virginia for his assistance.
Utah County Man Accused of Supplying Fentanyl that Killed a Woman During Christmas is Federally ChargedRead the Press Release
Salt Lake City, Utah – A Utah County man was ordered to remain in custody today by a U.S. Magistrate Judge following the death of a woman on Christmas day after he allegedly supplied her with fentanyl. On May 1, 2024, a federal grand jury returned an indictment charging the defendant.
According to court documents, Jared Kory Titcomb, 28, of Spanish Fork, Utah, allegedly distributed fentanyl to a victim on Christmas Eve, 2023. As a result of using the fentanyl, the victim was found dead by a family member on Christmas morning. During the investigation, law enforcement found that the victim reached out to Titcomb on Christmas Eve to purchase fentanyl. The investigation also showed the victim died of a drug overdose and that she had fentanyl in her system at the time of her death.
Titcomb is charged with distribution of fentanyl resulting in death. His initial court appearance on the indictment was May 7, 2024, before a U.S. Magistrate Judge at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by the Spanish Fork Police Department and the Utah County Major Crimes Task Force.
Special Assistant United States Attorney Peter Reichman of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Sues Student Recruiting Firm for Causing Fraudulent Claims to Federal Student Aid ProgramsRead the Press Release
BOSTON – The United States has filed a complaint under the False Claims Act (FCA) against Study Across the Pond, LLC (SATP) and its principal, John Borhaug.
According to court documents SATP, which was organized under the laws of Massachusetts, and Borhaug, convinced foreign schools to enter into arrangements that violated the federal ban on incentive-based compensation for student recruitment. It is alleged that SATP and Borhaug paid their employees to recruit American students to attend foreign schools in the United Kingdom (UK), and then required the schools to pay a commission when recruited students enrolled in the UK schools. The complaint, filed in the District of Massachusetts, alleges that based on this conduct, SATP and Borhaug knowingly caused UK schools to submit false claims to the U.S. Department of Education.
“Today’s complaint alleges that Study Across the Pond and John Borhaug used illegal incentives to influence American students to attend foreign schools,” said Acting United States Attorney Joshua S. Levy for the District of Massachusetts. “With today’s action, my office demonstrates its commitment to upholding the ban on incentive compensation, rooting out undue financial influence in student recruitment, and protecting the integrity of federal student financial aid programs.”
“Third-party recruiters who demand illegal financial incentives for recruiting students to institutions of higher learning, no matter where those institutions are located, undermine the integrity of our system of higher education,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Prospective students are entitled to make their enrollment decisions without the improper influence of recruiters who pursue their own financial gain at the expense of students’ best interests.”
“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. Today’s announcement is an example of our commitment to this mission,” said Terry Harris, Special Agent in Charge of the U S. Department of Education Office of Inspector General’s Eastern Regional Office. “The OIG will continue to work with our law enforcement partners and pursue allegations of violations of the False Claims Act in carrying out our important public service.”
Title IV of the Higher Education Act prohibits any institution of higher education that receives federal student aid from compensating student recruiters with a commission, bonus, or other incentive payment based directly or indirectly on the recruiters’ success in securing student enrollments. This is referred to as the Incentive Compensation Ban. The Incentive Compensation Ban protects students against aggressive recruitment practices that serve the financial interest of the recruiter rather than the educational needs of the student.
The complaint alleges that SATP knowingly collaborated with at least 28 UK schools to violate the Incentive Compensation Ban while the schools were participating in federal student aid programs. More specifically, since at least 2015, SATP, under the direction of Borhaug, has allegedly recruited American students to attend UK schools and demanded payment of a “commission” for SATP’s services. This commission was actually a share of the money the schools claimed from federal student financial aid programs for the benefit of American students. The government further alleges that SATP and Borhaug created sham records to hide these arrangements, and ultimately caused foreign schools to submit false claims to the Department of Education.
The government filed its complaint in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, a private citizen can sue on behalf of the government and share in any recovery. The government also is entitled to intervene in the lawsuit, as it has done in this case, which is captioned United States ex rel. Hitrost LLC v. Study Across the Pond, LLC, et al., No. 21-CV-10274-ADB (D. Mass.).
Acting U.S. Attorney Levy, Principal Deputy AAG Boynton and SAC Harris made the announcement today. Assistant U.S. Attorneys Brian LaMacchia and Alexandra Brazier of the Affirmative Civil Enforcement Unit are handling the matter along with Trial Attorney Allison Carroll of the Justice Department’s Civil Division.
The claims in which the United States has intervened are allegations only. There has been no determination of liability.
U.S. Charges Russian National with Developing and Operating Lockbit RansomwareRead the Press Release
NOTE: A video-recorded statement by U.S. Attorney Sellinger and FBI Special Agent in Charge Dennehy is available here: Lockbit Press Statement - YouTube. A video-recorded statement by Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, can be obtained here.
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the U.S. Justice Department unsealed charges today against a Russian national for his alleged role as the creator, developer, and administrator of the LockBit ransomware group from its inception in September 2019 through the present. At times, LockBit was the most prolific ransomware group in the world.
Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), aka LockBitSupp, LockBit, and putinkrab, 31, of Voronezh, Russia, is charged by a 26-count indictment returned by a grand jury in the District of New Jersey.
“Earlier this year, the Justice Department and our U.K. law enforcement partners disrupted LockBit, a ransomware group responsible for attacks on victims across the United States and around the world,” said Attorney General Merrick B. Garland. “Today we are going a step further, charging the individual who we allege developed and administered this malicious cyber scheme, which has targeted over 2,000 victims and stolen more than $100 million in ransomware payments. We will continue to work closely alongside our partners, across the U.S. government and around the world to disrupt cybercrime operations like LockBit and to find and hold accountable those responsible for them.”
U.S. Attorney Philip R. Sellinger“Dmitry Khoroshev conceived, developed, and administered Lockbit, the most prolific ransomware variant and group in the world, enabling himself and his affiliates to wreak havoc and cause billions of dollars in damage to thousands of victims around the globe. He thought he could do so hidden by his notorious moniker ‘LockBitSupp,’ anonymous and free of any consequence, while he personally pocketed $100 million extorted from Lockbit’s victims. Through relentless investigation and coordination with our partners at CCIPS, the FBI and abroad, we have proven him and his coconspirators wrong. Today’s indictment marks a significant milestone in the investigation and prosecution of LockBit, which has already led to charges against five other LockBit affiliates – two of whom are in custody awaiting trial – and a major disruption of the now discredited LockBit operation.”
“As part of our unrelenting efforts to dismantle ransomware groups and protect victims, the Justice Department has brought over two dozen criminal charges against the administrator of LockBit, one of the world’s most dangerous ransomware organizations,” Deputy Attorney General Lisa Monaco said. “Working with U.S. and international partners, we are using all our tools to hold ransomware actors accountable—and we continue to encourage victims to report cyberattacks to the FBI when they happen. Reporting an attack could make all the difference in preventing the next one.”
“Today’s indictment of LockBit developer and operator Dimitry Yuryevich Khoroshev continues the FBI’s ongoing disruption of the LockBit criminal ecosystem,” FBI Director Christopher Wray said. “The LockBit ransomware group represented one of the most prolific ransomware variants across the globe, causing billions of dollars in losses and wreaking havoc on critical infrastructure, including schools and hospitals. The charges announced today reflect the FBI’s unyielding commitment to disrupting ransomware organizations and holding the perpetrators accountable.”
“Most people would not consider being accused of creating and administering the most destructive ransomware group in the world as a badge of honor,” FBI – Newark Special Agent in Charge James E. Dennehy said. “However, the alleged ringleader. Dmitry Khoroshev, wears it like an Olympic Gold Medal. Hackers lock down computer systems for ports of entry into countries, post offices, hospitals, children’s schools, banks, and the list goes on. Even more sinister and dangerous, these cybercriminals simply don’t care. It’s a game to them, sport to prove how smart they are. I can guarantee if their child couldn’t get medical care because another hacker had locked down a local hospital, they’d understand how unbelievably frustrating and debilitating their actions are. This isn’t a game of cat and mouse to us. We are charged as the FBI with stopping bad actors from breaking the law. Our action today, every day up until now and every day going forward, proves we won’t quit. We will see that these thieves are brought to justice.”
The indictment against Khoroshev unsealed today follows a recent disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by the indictment unsealed today.
In addition, as previously announced, law enforcement developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted.
According to the indictment and other documents previously unsealed in the District of New Jersey:
Khoroshev and the LockBit Ransomware Group
Khoroshev allegedly acted as the LockBit ransomware group’s developer and administrator from its inception in or around September 2019 through May 2024. Khoroshev and his affiliate coconspirators, grew LockBit into what was, at times, the most active and destructive ransomware variant in the world. The LockBit ransomware group attacked more than 2,500 victims in at least 120 countries, including 1,800 victims in the United States. LockBit victims included individuals, small businesses, multinational corporations, hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. Khoroshev and his co-conspirators extracted at least $500 million in ransom payments from their victims and caused billions of dollars in broader losses, such as lost revenue, incident response, and recovery.
As with other major ransomware variants, Khoroshev allegedly designed LockBit to operate in the “ransomware-as-a-service” (RaaS) model. Under this model, Khoroshev himself acted as the LockBit developer and administrator. He allegedly arranged for the design of the LockBit ransomware, recruited other LockBit members – called affiliates – to deploy it against victims, and maintained the LockBit infrastructure, including an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit.
Khoroshev allegedly designed LockBit to operate in the “ransomware-as-a-service” (RaaS) model. In his role as the LockBit developer and administrator, Khoroshev arranged for the design of the LockBit ransomware code itself, recruited other LockBit members—called affiliates—to deploy it against victims, and maintained the LockBit infrastructure, including an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Khoroshev also maintained LockBit’s public-facing website—called a “data leak site”—for the publication of data stolen from victims who refused to pay a ransom.
As alleged in the indictment, Khoroshev—as the LockBit developer—typically received a 20% share of each ransom payment extorted from LockBit victims. The affiliate responsible for that attack would receive the remaining 80%. During the scheme, Khoroshev alone allegedly received at least $100 million in disbursements of digital currency through his developer shares of LockBit ransom payments.
LockBit infrastructure seized by law enforcement through the February 2024 disruption allegedly showed that Khoroshev retained copies of data stolen from LockBit victims who had paid the demanded ransom.
Khoroshev and his affiliate co-conspirators had falsely promised those victims that their stolen data would be deleted after payment. Moreover, after the February 2024 disruption, Khoroshev allegedly communicated with law enforcement and urged them to disclose the identities of his RaaS competitors—whom Khoroshev called his “enemies”—in exchange for his services.
Khoroshev is charged with one count of conspiracy to commit fraud, extortion, and related activity in connection with computers; one count of conspiracy to commit wire fraud; eight counts of intentional damage to a protected computer; eight counts of extortion in relation to confidential information from a protected computer; and eight counts of extortion in relation to damage to a protected computer. In total, those charges carry a maximum penalty of 185 years in prison. Each of the 26 counts charged by the indictment also carries a maximum fine of the greatest of $250,000, pecuniary gain to the offender, or pecuniary harm to the victim.
The LockBit Investigation
With the indictment unsealed today, a total of six LockBit members have now been charged for their participation in the LockBit conspiracy:
- In February 2024, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries.
- In June 2023, a criminal complaint was filed in the District of New Jersey charging Ruslan Magomedovich Astamirov, a Russian national, in connection with his participation in the LockBit group. Astamirov is currently in custody awaiting trial.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as “Wazawaka,” “m1x,” “Boriselcin,” and “Uhodiransomwar,” with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
- Finally, in November 2022, a criminal complaint was filed in the District of New Jersey charging Mikhail Vasiliev in connection with his participation in the LockBit ransomware group. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States.
The FBI Newark Field Office is investigating the LockBit ransomware variant.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Khoroshev for his role in launching cyberattacks. For more information, visit https://home.treasury.gov/news/press-releases/jy2326. Authorities in the United Kingdom and Australia also announced sanctions today against Khoroshev.
The Department of State also announced today a reward of up to $10 million for information that leads to the apprehension of Khoroshev. Information that may be eligible for this award can be submitted by email at [email protected], Telegram at @LockbitRewards, Signal at @FBISupp.01, and tox B0B98577F0541160C745B464E42C9AB782B036682FAD59D5F228EA75BF71691BE68A8E08BD55. The reward announced today supplements a previous reward of up to $10 million for information leading to the identification of any individual who holds a leadership position in the criminal group behind LockBit ransomware. For more information on this reward, visit Reward for Information: LockBit Ransomware-as-a-Service.
Victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
khoroshev.indictment.pdf sellinger_remarks.pdfU.S. Charges Russian National with Developing and Operating LockBit RansomwareRead the Press Release
Remote video URLU.S. Attorney Philip R. Sellinger for the District of New Jersey's recorded remarks
The U.S. Justice Department unsealed charges today against a Russian national for his alleged role as the creator, developer, and administrator of the LockBit ransomware group from its inception in September 2019 through the present. At times, LockBit was the most prolific ransomware group in the world.
“Earlier this year, the Justice Department and our U.K. law enforcement partners disrupted LockBit, a ransomware group responsible for attacks on victims across the United States and around the world,” said Attorney General Merrick B. Garland. “Today we are going a step further, charging the individual who we allege developed and administered this malicious cyber scheme, which has targeted over 2,000 victims and stolen more than $100 million in ransomware payments. We will continue to work closely alongside our partners, across the U.S. government and around the world to disrupt cybercrime operations like LockBit and to find and hold accountable those responsible for them.”
“As part of our unrelenting efforts to dismantle ransomware groups and protect victims, the Justice Department has brought over two dozen criminal charges against the administrator of LockBit, one of the world’s most dangerous ransomware organizations,” said Deputy Attorney General Lisa Monaco. “Working with U.S. and international partners, we are using all our tools to hold ransomware actors accountable—and we continue to encourage victims to report cyberattacks to the FBI when they happen. Reporting an attack could make all the difference in preventing the next one.”
Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), also known as LockBitSupp, LockBit, and putinkrab, 31, of Voronezh, Russia, is charged by a 26-count indictment returned by a grand jury in the District of New Jersey.
“Today’s indictment of LockBit developer and operator Dimitry Yuryevich Khoroshev continues the FBI’s ongoing disruption of the LockBit criminal ecosystem,” said FBI Director Christopher Wray. “The LockBit ransomware group represented one of the most prolific ransomware variants across the globe, causing billions of dollars in losses and wreaking havoc on critical infrastructure, including schools and hospitals. The charges announced today reflect the FBI’s unyielding commitment to disrupting ransomware organizations and holding the perpetrators accountable.”
The indictment against Khoroshev unsealed today follows a recent disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by the indictment unsealed today.
“Dmitry Khoroshev conceived, developed, and administered Lockbit, the most prolific ransomware variant and group in the world, enabling himself and his affiliates to wreak havoc and cause billions of dollars in damage to thousands of victims around the globe,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “He thought he could do so hidden by his notorious moniker ‘LockBitSupp,’ anonymous and free of any consequence, while he personally pocketed $100 million extorted from Lockbit’s victims. Through relentless investigation and coordination with our partners at the Criminal Division’s Computer Crime and Intellectual Property Section, the FBI and abroad, we have proven him and his coconspirators wrong. Today’s indictment marks a significant milestone in the investigation and prosecution of LockBit, which has already led to charges against five other LockBit affiliates—two of whom are in custody awaiting trial—and a major disruption of the now discredited LockBit operation.”
In addition, as previously announced, law enforcement developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted.
According to the indictment and other documents previously unsealed in the District of New Jersey:
Khoroshev and the LockBit Ransomware Group
Khoroshev allegedly acted as the LockBit ransomware group’s developer and administrator from its inception in or around September 2019 through May 2024. Khoroshev and his affiliate coconspirators, grew LockBit into what was, at times, the most active and destructive ransomware variant in the world. The LockBit ransomware group attacked more than 2,500 victims in at least 120 countries, including 1,800 victims in the United States. LockBit victims included individuals, small businesses, multinational corporations, hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. Khoroshev and his co-conspirators extracted at least $500 million in ransom payments from their victims and caused billions of dollars in broader losses, such as lost revenue, incident response, and recovery.
Khoroshev allegedly designed LockBit to operate in the “ransomware-as-a-service” (RaaS) model. In his role as the LockBit developer and administrator, Khoroshev arranged for the design of the LockBit ransomware code itself, recruited other LockBit members—called affiliates—to deploy it against victims, and maintained the LockBit infrastructure, including an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Khoroshev also maintained LockBit’s public-facing website—called a “data leak site”—for the publication of data stolen from victims who refused to pay a ransom.
As alleged in the indictment, Khoroshev—as the LockBit developer—typically received a 20% share of each ransom payment extorted from LockBit victims. The affiliate responsible for an attack would receive the remaining 80%. During the scheme, Khoroshev alone allegedly received at least $100 million in disbursements of digital currency through his developer shares of LockBit ransom payments.
LockBit infrastructure seized by law enforcement through the February 2024 disruption allegedly showed that Khoroshev retained copies of data stolen from LockBit victims who had paid the demanded ransom.
Khoroshev and his affiliate co-conspirators had falsely promised those victims that their stolen data would be deleted after payment. Moreover, after the February 2024 disruption, Khoroshev allegedly communicated with law enforcement and urged them to disclose the identities of his RaaS competitors—whom Khoroshev called his “enemies”—in exchange for his services.
Khoroshev is charged with one count of conspiracy to commit fraud, extortion, and related activity in connection with computers; one count of conspiracy to commit wire fraud; eight counts of intentional damage to a protected computer; eight counts of extortion in relation to confidential information from a protected computer; and eight counts of extortion in relation to damage to a protected computer. In total, those charges carry a maximum penalty of 185 years in prison. Each of the 26 counts charged by the indictment also carries a maximum fine of the greatest of $250,000, pecuniary gain to the offender, or pecuniary harm to the victim.
The LockBit Investigation
With the indictment unsealed today, a total of six LockBit members have now been charged for their participation in the LockBit conspiracy:
- In February 2024, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries.
- In June 2023, a criminal complaint was filed in the District of New Jersey charging Ruslan Magomedovich Astamirov, a Russian national, in connection with his participation in the LockBit group. Astamirov is currently in custody awaiting trial.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as “Wazawaka,” “m1x,” “Boriselcin,” and “Uhodiransomwar,” with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at tips.fbi.gov/.
- Finally, in November 2022, a criminal complaint was filed in the District of New Jersey charging Mikhail Vasiliev in connection with his participation in the LockBit ransomware group. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States.
The FBI Newark Field Office is investigating the LockBit ransomware variant.
Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey are prosecuting the charges against Khoroshev.
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Khoroshev for his role in launching cyberattacks. For more information, visit https://home.treasury.gov/news/press-releases/jy2326. Authorities in the United Kingdom and Australia also announced sanctions today against Khoroshev.
The Department of State also announced today a reward of up to $10 million for information that leads to the apprehension of Khoroshev. Information that may be eligible for this award can be submitted by email at [email protected], Telegram at @LockbitRewards, Signal at @FBISupp.01, and tox B0B98577F0541160C745B464E42C9AB782B036682FAD59D5F228EA75BF71691BE68A8E08BD55. The reward announced today supplements a previous reward of up to $10 million for information leading to the identification of any individual who holds a leadership position in the criminal group behind LockBit ransomware. For more information on this reward, visit Reward for Information: LockBit Ransomware-as-a-Service.
Victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
An indictment is merely an allegation. Under U.S. law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentTwo Teens Charged with Assault with Intent to Kill After Opening Fire Near High SchoolRead the Press Release
WASHINGTON – Saki Frost, 17, of Washington, D.C., was charged by complaint yesterday as an adult in D.C. Superior Court on the charges of assault with intent to murder while armed and assault with intent to kill while armed, stemming from a shooting that occurred on May 3, 2024, near Dunbar High School. Frost’s codefendant, Azhari Graves, 18, was charged on May 4, 2024, with assault with intent to kill while armed and assault with a dangerous weapon. Both defendants have also been charged with possession of a firearm during a crime of violence. The charges were announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department. Both defendants are held without bond pending a preliminary hearing scheduled for May 28, 2024.
According to the government’s evidence, on May 3, 2024, at approximately 9:53 am, Graves and Frost opened fire on a sedan that was driving down Kirby Street NW, near Dunbar High School. A witness to the shooting reported hearing machine gun fire. Surveillance video captures Frost and Graves running down an alleyway holding firearms prior to the shooting. Surveillance video also captures the shooting, in which an individual appearing to be Frost fires a gun toward the sedan. Surveillance footage also captures Graves after the shooting holding a firearm with the slide locked to the rear of the weapon, indicating that the weapon had been fired. Graves and Frost then fled the area in a vehicle. Later that day, MPD officers located the defendants’ vehicle and arrested Graves and Frost. Investigators recovered a total of 29 shell casings from the scene of the shooting and numerous fragments from the exterior of Dunbar High School as well as classrooms inside the school. Investigators also observed at least six bullet strikes to the N Street side of Dunbar. During the shooting, one Dunbar student suffered a graze wound to the head from the gunfire.
This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Benjamin Helfand of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Men Sentenced to Federal Prison for Bank RobberyRead the Press Release
TALLAHASSEE, FLORIDA – Charles Deon Mathews, 30, and Shai Trymaine Fields, 31, both of Houston, Texas, were each sentenced to 51 months in federal prison, having previously pled guilty to bank robbery. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Through the coordinated efforts of our local, state, and federal law enforcement partners, the defendants’ crime spree has ended, and they have been held accountable for their criminal conduct,” said U.S. Attorney Coody. “This sentence illustrates our shared resolve to keep our communities safe and the significant consequences associated with federal crimes of violence.”
On July 19, 2023, Mathews and Fields drove from Houston, Texas, to Tallahassee, Florida, where they robbed an ATM technician repairing a Wells Fargo ATM off Mahan Drive. During the robbery, Mathews and Fields jumped out of a rental vehicle wearing hoods and masks and rushed at the ATM technician who backed away. Mathews removed four cassettes of money from the ATM, and the two men then fled. Mathews and Fields then traveled down to Gainesville, Florida, where they paid cash for flights back to Houston.
“This conviction highlights the Tallahassee Police Department's commitment to ensure the safety and security of all residents and visitors in this city," said Chief Lawrence Revell of the Tallahassee Police Department. "Let this serve as a clear message: Tallahassee is not a haven for criminals looking to evade justice. If you commit a crime here, regardless of where you come from, we will find you, we will arrest you, and you will be held accountable to the fullest extent of the law."
TPD and the FBI cooperated in their initial investigation of the robbery and were able to identify Mathews and Fields. The FBI’s continued investigation showed that Mathews and Fields were both also present in Detroit, Michigan, when another ATM technician was robbed at a Chase Bank ATM on August 18, 2023.
“Communities across the country are safer with these criminals behind bars,” said FBI Jacksonville Special Agent in Charge Kristin Rehler. “This case exemplifies the FBI’s dedication to protecting communities from violent crime. We will continue identifying and disrupting violent acts through intelligence-driven investigations and close partnerships with state, local, and tribal law enforcement.”
The FBI worked with officers from the Houston Police Department to locate Mathews and Fields in Houston and both were arrested on federal warrants for the Tallahassee robbery.
Mathews’ and Fields’ imprisonment will be followed by 3-years of supervised release, and each was ordered to pay $88,710.00 in restitution to Wells Fargo and to also forfeit $88,710.00 to the government.
This conviction was the result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Tallahassee Police Department and the Houston Police Department. Assistant United States Attorneys James A. McCain and Harley Ferguson 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Florida men sentenced to prison for exporting stolen outboard engines to MexicoRead the Press Release
MIAMI – On April 29, Antonio Perez Toledo, 40, of Ft. Myers, Florida, and Brian Perez, 43, of Homestead, Florida, were sentenced to federal prison for their roles in a transnational conspiracy to export stolen outboard engines to Mexico through two Miami-based freight forwarding companies. Antonio Perez Toledo was sentenced to 48 months in prison, and Brian Perez was sentenced to 40 months in prison.
The sentencing hearings were held before U.S. District Judge Kathleen M. Williams. Judge Williams also ordered the defendants to forfeit the proceeds they each received from the scheme, and to pay restitution to the identifiable victims.
Antonio Perez Toledo and Brian Perez participated in a conspiracy that spanned from 2015 and 2019. The co-conspirators used two Miami freight forwarding companies, and together exported over 600 stolen engines with a replacement value of more than $12 million dollars. Over several years, Antonio Perez Toledo and Brian Perez each personally arranged to export approximately $1 million worth of stolen engines. Before exporting the engines, the co-conspirators affixed false serial number stickers on the engines. Other co-conspirators, charged in related indictments, have also been convicted and sentenced for their roles in this transnational conspiracy.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Matthew J. Margelot, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, announced the sentences imposed.
HSI Miami and CGIS investigated the case, with assistance from U.S. Customs and Border Protection (CBP) and the Florida Department of Law Enforcement (FDLE). Assistant U.S. Attorney Ana Maria Martinez prosecuted the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20344.
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Trucking Company Operator Indicted for Tax EvasionRead the Press Release
CLEVELAND – A federal grand jury has returned a seven-count indictment charging Alice F. Martin, 59, of Louisville, Ohio accusing her of attempting to evade the assessment of income taxes from 2013 through 2018. Martin is also accused of attempting to evade the payment of previously taxes, penalties, and interest from 2011 through 2013, all tied to Martin Logistics, a trucking company which she owned and operated.
According to the indictment, Martin set forth a plan to phase out Martin Logistics after it became burdened with tax debt in order to make herself, and Martin Logistics, uncollectable to the Internal Revenue Service. Martin directed one of her employees to open a new company, TSA Transportation, which would serve as Martin’s nominee trucking business. Beginning January 2013, contracts for trucking services were primarily bid under TSA Transportation’s name, but the income TSA Transportation received was directly deposited into a bank account for another entity that Martin owned and controlled, A.F. Martin. In addition, Martin placed Martin Logistics’ assets, including trucks and trailers, into the name of yet another Martin-owned company, Martin Global.
From around 2013 to 2018, Martin directed approximately $18 million in gross receipts associated with TSA Transportation contracts to be deposited into the A.F. Martin banking account. Despite this, Martin regularly failed to file individual and corporate tax returns related to her trucking entities or and failed to pay the taxes on her income. Martin also made several misrepresentations to the IRS related to the finances of Martin Logistics. After her fraudulent scheme was discovered, Martin caused several more misrepresentations to be made to the IRS related to the filing status of her income tax returns.
Martin received over $3.6 million in unreported taxable income resulting in her evading the IRS’s assessment of approximately $1.2 million in taxes due between 2013 and 2018.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The investigation was conducted by the IRS-Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Edward Brydle.
Troy Man Charged with Abusive Sexual Contact at the Albany Veterans Affairs Medical CenterRead the Press Release
ALBANY, NEW YORK – Robert J. Seifert, Jr., age 65, of Troy, New York, was indicted today on a charge that he grabbed the breast and groin of a paramedic at the Albany Stratton Veterans Affairs Medical Center (VAMC).
United States Attorney Carla B. Freedman and Christopher Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General, made the announcement.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Seifert carries a maximum term of 2 years in prison, a fine of up to $250,000, and a term of supervised release up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Seifert appeared in Albany before United States Magistrate Judge Christian F. Hummel on April 9, 2024, upon being charged by criminal complaint. Seifert has conditionally waived his right to a detention hearing and is detained pending further proceedings.
This case is being investigated by the United States Department of Veterans Affairs Office of Inspector General and the Veterans Affairs Police Service at the Albany VAMC. Assistant U.S. Attorney Joshua R. Rosenthal is prosecuting the case.
Trinitarios Gang Leader Sentenced to Life in Prison for Murdering A Confidential InformantRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that WILLIAM JONES, a/k/a “Principe,” was sentenced today to life in prison for the December 2019 murder of Frederick Delacruz. JONES, who was a high-ranking member of the Trinitarios gang, lured Delacruz from the Bronx to Suffolk County, New York, where JONES shot and killed Delacruz next to a cemetery because Delacruz was acting as a confidential informant for law enforcement. JONES was sentenced today by U.S. District Judge Edgardo Ramos after being convicted by a jury following an eight-day trial in October 2023.
U.S. Attorney Damian Williams said: “William Jones executed Frederick Delacruz in cold blood because Delacruz had the courage to cooperate with law enforcement. Now, Jones will spend the rest of his life in a federal prison.”
According to court filings and the evidence presented in court during the trial:
WILLIAM JONES was a high-ranking member of the Trinitarios, a racketeering enterprise that has engaged in a pattern of murder, attempted murder, drug trafficking, fraud, and witness tampering and retaliation. On December 28, 2019, JONES and other Trinitarios lured Frederick Delacruz from the Bronx, New York, to Suffolk County, New York, where JONES shot and killed Delacruz because Delacruz was acting as a confidential informant for law enforcement.
Delacruz is the second known person whom JONES has murdered. On October 18, 1993, JONES shot and killed Audrey Walker with a TEC .9mm assault weapon in the lobby of the Manhattan apartment building where Walker resided. On October 26, 1994, JONES was convicted after a bench trial in New York County Supreme Court of intentional murder in the second degree. JONES was sentenced to nine years to life in prison. He was released on parole on September 8, 2008.
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JONES, 45, of the Bronx, New York, was convicted at trial of racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Suffolk County Police Department. He also thanked the Suffolk County District Attorney’s Office for their assistance.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Emily A. Johnson, Justin V. Rodriguez, and Christy Slavik are in charge of the prosecution, with the assistance of Paralegal Specialist Grayson Glogoff.
Traveling carnival business owner charged for crimes against migrant workersRead the Press Release
HOUSTON – A Mexican national residing in the United States has made an appearance in federal court on allegations of fraud in foreign labor contracting, false statements and mail fraud, announced U.S. Attorney Alamdar S. Hamdani.
The indictment alleges Angel Reyes Isidro aka Angel Reyes or Lucas Isidro Reyes, 41, operated and managed J&G Concessions LLC in Houston. In 2019, Reyes allegedly submitted falsified temporary employment applications to the United States to obtain H-2B visas for foreign seasonal workers. Upon the workers arrival, Reyes charged them illegal fees, paid them below what was required and made threats of deportation and loss of future employment opportunities to cause them to work despite horrible working conditions, according to the charges.
During the hearing, Judge Bryan heard Reyes poses a serious flight risk, risk of obstructing justice and is a danger to the community. The court heard Reyes also possessed a firearm, which he allegedly used to threaten workers. Testimony further alleged Reyes sexually harassed his female temporary workers, assaulted one of them and threatened and retaliated against the victimized workers.
From 2022 to the time of his arrest April 28, Reyes allegedly continued to operate his carnival business with unauthorized workers.
Reyes faces up to 20 years in federal prison for mail fraud and a maximum of 10 if convicted of visa fraud. He could also be ordered to $250,000 in fines for each conviction. The remaining counts carry a five-year-maximum term of imprisonment.
The Department of State-Diplomatic Security Service conducted the investigation with the assistance of the Department of Labor-Office of Inspector General and Homeland Security Investigations as part of the Document and Benefit Fraud Task Force.
Assistant U.S. Attorneys Christine Lu and Khoa Tran are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Tigard Repeat Offender Sentenced to Federal Prison for Transporting a Victim Across State Lines for Illegal Sexual Activity and Laundering Proceeds Through a Bottled Water CompanyRead the Press Release
PORTLAND, Ore.—A Tigard, Oregon man with a lengthy criminal history was sentenced to federal prison today for transporting an adult victim across state lines for illegal sexual activity and laundering the proceeds through a Portland-based bottled water company.
Johnell Lee Cleveland, 42, was sentenced to 108 months in federal prison and seven years’ supervised release. He was also ordered to pay $32,115 in restitution to the Oregon Department of Employment. The sum of restitution Cleveland must pay to his adult victim will be determined at a later date.
“In the summer of 2020, Johnell Cleveland received a rare early release from federal prison he could have used as an opportunity to chart a new path away from criminality. Unfortunately, he did the exact opposite, diving headfirst into a remarkable series of crimes,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “We thank the FBI, IRS, and PPB for their efforts in holding Cleveland accountable and securing this nine-year prison sentence.”
“Johnell Cleveland has demonstrated a flagrant disregard for the law,” said Douglas A. Olson, Special Agent in Charge of the FBI Portland Field Office. “Even after serving a prison term, Cleveland continued his chronic criminal behavior with money laundering, wire fraud, and transporting an adult victim for illegal sexual activity. The FBI, along with our partners, is dedicated to maintaining the safety of our communities, and with Cleveland behind bars, our community is more secure.”
“30 days is long enough to form positive habits; it is also more than long enough to return to bad ones, as Mr. Cleveland unfortunately chose to do,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (CI), Seattle Field Office. “Given a second chance, Mr. Cleveland did not choose to better himself. Instead, he proceeded to cause immense harm to the people and to the communities around him. This sentencing shows that CI, along with our partners in law enforcement, will bring justice to repeat offenders as many times as needed, as Mr. Cleveland is finding out today.”
According to court documents, in July 2019, Cleveland was sentenced to 57 months in federal prison for distributing cyclopropyl fentanyl, possessing a machine gun and money laundering. In the summer of 2020, nineteen months before his original projected release date, Cleveland sought and was granted a compassionate release from prison based on health risks associated with the COVID-19 pandemic.
Less than 30 days following his release from prison, Cleveland and an associate submitted a fraudulent insurance policy application for nine pieces of jewelry previously seized by law enforcement. Approximately four months after Cleveland and his associate were issued an insurance policy worth more than $100,000, his associate submitted a false burglary report to the Las Vegas Police Department claiming her Mercedes-Benz sedan and various personal property, including the nine pieces of insured jewelry, had been stolen. Seeking reimbursement, Cleveland quickly notified his insurance company of the purported jewelry theft.
While his insurance fraud scheme was ongoing, in October 2020, Cleveland devised a separate scheme to fraudulently obtain COVID relief program funds. On October 14, 2020, he applied for Pandemic Unemployment Assistance (PUA) benefits for a five-month period beginning in April 2020, claiming he was unemployed because of the COVID-19 pandemic. In reality, Cleveland was unemployed during this time because he was in federal prison. Despite his false claims, Cleveland’s application was approved, and he began receiving PUA benefits.
Investigators later learned that during this same time period, Cleveland transported for illegal sexual activity an adult woman he had, in August 2020, commenced a romantic relationship with. Cleveland told the woman that he needed money to get his business ventures off the ground and fund their future together. Over time, Cleveland became less friendly and more menacing toward the woman, demanding she travel frequently and engage in more commercial sex. Meanwhile, Cleveland kept all the money the woman earned and threatened her with various punishments he claimed to have used on other women, including locking her in a dog cage.
To conceal and disguise the nature of his victim’s proceeds, Cleveland used the money to pay business expenses for the bottled water company, including costs for bottling and manufacturing, rental of corporate office space in Portland, merchandising, and a monthly retainer with a modeling agency.
On November 3, 2021, Cleveland was arrested without incident in Portland. The same day, investigators seized Cleveland’s vehicle. A subsequent search of the vehicle resulted in the discovery of a secret compartment in the driver-side door that concealed a loaded handgun.
On October 19, 2021, a federal grand jury in Portland returned an indictment charging Cleveland and his insurance fraud associate with conspiring to commit and committing wire fraud. Later, in on March 10, 2022, Cleveland was indicted a second time for sex trafficking by force, fraud, and coercion; illegally possessing a firearm as a convicted felon; and money laundering.
On February 4, 2024, Cleveland pleaded guilty to both counts of his fraud indictment and a three-count superseding criminal information charging him with transportation for illegal sexual activity, illegally possessing a firearm as a convicted felon, and money laundering.
This case was investigated by the FBI, IRS CI, and the Portland Police Bureau Human Trafficking Unit. It was prosecuted by Peter Sax and Nicole Bockelman, Assistant U.S. Attorneys for the District of Oregon.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In February 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
Three Plead Guilty in Cocaine Smuggling OperationRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Eleuterio Gomez Murillo, 53, of Colombia, and Randall Vasquez, 47, and Mainor Salazar Montero, 34, both of Costa Rica, pleaded guilty before U.S. Magistrate Judge Ruth Miller to possession with intent to distribute cocaine onboard a vessel subject to the jurisdiction of the United States.
According to court documents, on November 26, 2020, the United States Coast Guard intercepted a vessel in international waters approximately 115 nautical miles from Isla Malpelo, Colombia. On board the vessel were the three defendants, multiple cannisters of fuel and 383 kilograms of cocaine. For their convictions, Murillo, Vasquez and Salazar Montero face a sentence of up to 20 years of imprisonment.
The case was investigated by the United States Coast Guard and Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Everard E. Potter.
St. Louis Man Sentenced to 30 Years in Prison for Fatally Carjacking FriendRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a convicted felon who fatally shot his friend before stealing and burning his car to 30 years in prison.
Judge White also ordered Laveal David Jones to pay $9,074 to his victim’s family for funeral costs.
Early on the morning of Oct. 1, 2022, the victim drove Jones from a night club in Sauget, Illinois to an area near the 3000 block of Walton Place in St. Louis. After the victim dropped off a third person, Jones confronted the victim about money Jones believed he was owed, leading to a physical fight. Jones suffered a bloody nose before using the victim’s firearm to shoot the victim twice, his plea agreement says.
Jones left the victim’s body in the street, stripped naked so Jones’ blood couldn’t be recovered from the victim’s clothing. Jones got lighter fluid and then drove the victim’s 2015 Kia K900 sedan to West Missouri Avenue and North B Street in East St. Louis, where he set it on fire and walked away.
On Oct. 17, 2022, St. Louis Metropolitan Police Department officers spotted Jones in a different stolen Kia. He crashed the car and then fled on foot, discarding a pistol before he was caught, his plea agreement says.
Five of the victim’s relatives spoke of the impact of his death during Tuesday’s hearing, including his mother and sister.
The murder occurred less than three months after Jones was released from prison. In October 2016, he stole cash and a 2009 Sonata from a pizza delivery driver by ambushing the driver and repeatedly shocking him with a taser.
Jones, 25, of St. Louis, pleaded guilty in February in U.S. District Court in St. Louis to three felony counts: carjacking resulting in death, being a felon in possession of a firearm and discharge of a firearm in furtherance of a crime of violence, with death resulting.
The St. Louis Metropolitan Police Department and the FBI investigated the case. Assistant U.S. Attorney Ryan Finlen 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.