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Tuesday 26 March 2024
St. Albans Man Charged with Aggravated Identity Theft and FraudRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on March 14, 2024, a federal grand jury returned an indictment charging Jonathan Whalley, 50, of St. Albans, Vermont, with aggravated identity theft, wire fraud, mail fraud, and bank fraud.
Whalley entered a plea of not guilty to the charges during an arraignment on March 20, 2024 before United States Magistrate Judge Kevin J. Doyle. Judge Doyle ordered that Whalley be detained during the pendency of this matter.
According to court records, a Burlington resident reported the theft of several of his identity documents from his vehicle in Burlington in March 2022. In April and May 2022, Whalley used that individual’s identifying information and identity documents to purchase six vehicles in the State of Georgia, finance and insure those vehicles, obtain Vermont vehicle registrations, open a bank account, and create a Gmail account to facilitate the fraud scheme.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Whalley is presumed innocent until and unless proven guilty. If convicted, Whalley faces a mandatory term of 2 years in prison on the aggravated identity theft charge, up to 20 years in prison on the wire and mail fraud charges, and up to 30 years in prison on the bank fraud charge. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont Department of Motor Vehicles’ Enforcement and Safety Division (Investigative Section) and Homeland Security Investigations.
The prosecutor is Assistant United States Attorney Corinne Smith. Whalley is represented by the Office of the Federal Public Defender.
Sex Offender Sentenced to 19 Years in Federal Prison for Sexual Exploitation of Several MinorsRead the Press Release
Baltimore, Maryland - U.S. District Judge Matthew J. Maddox sentenced Lewis Ismael Blandon, age 37, of Edgewood, Maryland, to 19 years in federal prison, followed by lifetime supervised release, for sexual exploitation of a child to produce a visual depiction of the sexual conduct. Judge Maddox also ordered that, upon his release from prison, Blandon must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.
According to his guilty plea between 2002 through 2006, Blandon sexually abused a minor victim who was 12 years old at the time the abuse began. Blandon coerced and enticed the victim to engage in the sexual conduct by using cell phone calls to arrange visits and using the chat feature on video games. In addition, between 2020 and 2021, Blandon used several different online accounts with social media companies to exploit his victims. Using a variety of aliases and handles on these platforms, Blandon communicated with several minor males, coercing and enticing them to produce sexually explicit images. Blandon admitted that he also sent images of his own genitalia to the minor males in order to cause them to reciprocate. Finally, Blandon also distributed commercially available child pornography on a messaging application to another user.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI and Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Sacramento Man Sentenced to over 17 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — Christopher Jorden Booth-Hall, 32, of Sacramento, was sentenced today to 17 and a half years in prison to be followed by 20 years of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Booth-Hall took two images of a minor victim and sent them to other users of a messaging app. On his phone were multiple images and videos of child sexual abuse material.
This case was the product of an investigation by the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Restaurant Owner Sentenced to 30 Months’ Imprisonment for Tax Violations That Cost the Government Almost $1.2 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yong Chun (“Steven”) Guo, 57, of Wyomissing, PA, was sentenced by United States District Court Judge Joseph F. Leeson, Jr. to 30 months in federal prison for tax crimes. Guo was also ordered to pay restitution of $1,172,368 and a $95,000 fine.
Guo pleaded guilty in 2023 to conspiracy to defraud the United States, a charge that arose from his use of a cash payroll at his family owned-and-operated restaurant to avoid paying the full amount of employment taxes due. Records seized from the restaurant pursuant to a search warrant showed that employees were paid wages by a combination of paycheck and cash. Records provided by Guo’s accountant showed that only the portion of the payroll that was paid by check was disclosed to Guo’s accountant. The IRS calculated that Guo’s restaurant failed to report on its Forms 941 more than $3.9 million of cash wages that he paid employees from the first quarter of 2013 through the first quarter of 2020, resulting in a payroll tax loss of approximately $444,899.
Guo also pled guilty to attempted tax evasion, a charge that arose from his failure to report cash skimmed from the restaurant on his Form 1040 returns for tax years 2016, 2017, and 2018. The IRS calculated that Guo failed to report more than $2 million of income on his Forms 1040 for 2013 through 2018, resulting in a tax loss of approximately $727,469.
“Guo’s crimes cost the government more than a million dollars in tax revenue,” said U.S. Attorney Romero. “They’re also a slap in the face to every honest taxpayer who does the right thing each year. As this case shows, we’re fully committed to prosecuting tax cheats who refuse to contribute their fair share. Bottom line: pay what you owe or prepare to pay some serious consequences.”
“Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes.”
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Karen L. Grigsby.
Ressortissant bahaméen inculpé et arrêté pour son rôle dans le complot de traite meurtrière d’êtres humainsRead the Press Release
MIAMI – Aujourd’hui, dans le District sud de Floride, la confidentialité a été levée de la mise en accusation concernant un ressortissant bahaméen pour son rôle présumé dans un complot ayant entrainé de nombreuses pertes de vie.
À la suite d’une vaste coordination et coopération entre les autorités des États-Unis et des Bahamas, Vandrick Nelson Smith, alias Muggy et Vans, âgé de 33 ans, a été arrêté aux Bahamas le 6 mars en réponse à une demande des États-Unis portant sur des accusations déposées en novembre 2023 sous pli scellé dans le District sud de Floride.
Selon les pièces de la procédure, Smith aurait été impliqué dans une organisation de trafic d’êtres humains cherchant à faire venir des migrants par bateau depuis les Bahamas vers les États-Unis. Les migrants étaient des ressortissants de la Colombie, de la Jamaïque, de la République dominicaine, d’Haiti et d’autres pays. Les migrants (ou leurs familles et amis) auraient versé de l’argent à l’organisation pour être introduits en contrebande aux États-Unis. Comme décrit ici, la mise en accusation allègue que Smith avait été personnellement impliqué dans trois incidents de passage de clandestins par voie maritime, dont un ayant couté la vie à cinq personnes.
« Les entreprises de passage de clandestins mettent les vies en danger au nom du profit » a déclaré Markenzy Lapointe, procureur fédéral pour le District sud de Floride. « Les passeurs exploitent les espoirs pour une vie meilleure des migrants. Tragiquement, les agissements des passeurs mettent sérieusement en péril les migrants. Aux fins de protéger les migrants vulnérables et de sauver des vies, le parquet fédéral continuera à travailler avec ses partenaires pour poursuivre ceux qui font du trafic illicite d’êtres humains ».
« Vandrick Smith est accusé d’avoir organisé des opérations dangereuses de traite d’êtres humains, en envoyant des migrants par bateau depuis les Bahamas vers la Floride. Comme l’allègue la mise en accusation, les efforts de l’organisation de traite d’êtres humains se sont révélés meurtriers lorsqu’en janvier 2022 un bateau avec des migrants a chaviré » a déclaré Nicole Argentieri, la principale sous-procureure générale adjointe et la cheffe de la Division pénale du département de la Justice. « Les trafiquants d’êtres humains exploitent les gens désespérés pour l’argent et les conséquences peuvent être tragiques. La Division pénale est vouée au combat contre les organisations de traite d’êtres humains qui s’en prennent à et mettent en danger les migrants vulnérables où qu’elles opèrent ».
Smith aurait été impliqué dans trois instances de traite d’êtres humains par voie maritime vers le 6 mars 2021, le 22 janvier 2022 et le 8 aout 2022. La mise en accusation allègue que dans la soirée du 22 janvier 2022, aux Bahamas, de nombreux migrants sont montés à bord d’un vaisseau à destination de la Floride. Peu après le départ du vaisseau, les moteurs se seraient arrêtés et le vaisseau a chaviré. Le 25 janvier 2022, la Garde côtière des États-Unis a sauvé le seul survivant, accroché à la coque du vaisseau chaviré.
« La section des enquêtes de la sécurité intérieure est déterminée à travailler avec nos partenaires nationaux et internationaux pour traduire en justice les criminels imprudents qui accordent la priorité au gain financier sur les vies et la sécurité des personnes » a déclaré Anthony Salisbury, agent spécial responsable des enquêtes de la sécurité intérieure (HSI) à Miami. « Les risques associés aux opérations de traite des humains par voie maritime sont extrêmes. Nous exhortons le public à éviter de se lancer dans ces voyages avec des organisations criminelles dangereuses, lesquelles se soldent parfois par une tragédie ».
Suite à l’opération de janvier 2022 ayant entrainé des pertes de vies, cinq chefs d’accusation de tentative de faire passer des étrangers aux États-Unis ont été retenus contre Smith. Il est aussi accusé d’entente en vue de faire passer des étrangers aux États-Unis contre profit ; de mise en danger des vies d’étrangers ayant entrainé la mort ; de tentative de faire passer des étrangers aux États-Unis contre profit et de tentative d’aider et assister certains étrangers à entrer aux États-Unis. S’il est trouvé coupable de tentative de faire passer des étrangers aux États-Unis ayant entrainé la mort, Smith est passible d’une peine maximale de prison à vie.
HSI Fort Pierce et l’attaché adjoint de HSI à Nassau, aux Bahamas, ont enquêté sur le dossier avec l’aide de la Garde côtière des États-Unis, du bureau du sheriff du comté de Brevard et du service du médecin légiste du comté de Brevard. Le bureau des Affaires internationales du département de la Justice a apporté un appui important en matière des demandes d’entraide juridique internationale et les efforts menant à l’arrestation. Le département de la Justice remercie la Police royale des Bahamas, le ministère des Affaires étrangères des Bahamas, le Département de l’Immigration des Bahamas ainsi que le département des Poursuites pénales des Bahamas pour leur aide dans cette affaire.
L’enquête est menée dans le cadre du programme de la force de frappe extraterritoriale dite Extraterritorial Criminal Travel Strike Force (ECT), un partenariat entre la Division pénale du département de la Justice et le HSI. Le programme ECT se concentre sur les réseaux de traite d’êtres humains pouvant présenter un risque spécial pour la sécurité nationale ou à la sécurité du public ou qui sont une sérieuse source de préoccupation humanitaire. ECT dispose de ressources d’enquête, de renseignement et de poursuite dédiées. ECT coordonne et est assistée par d’autres organismes gouvernementaux américains et les services de détection et de répression étrangers.
La substitute du procureur Marie Zisa de la section des Droits de l’homme et de poursuites spéciales de la Division pénale ainsi que le procureur fédéral adjoint Justin Hoover du District sud de Floride poursuivent le dossier.
Une mise en accusation n’est qu’une allégation. Tous les accusés sont présumés innocents jusqu’à ce que leur culpabilité soit prouvée au-delà de tout doute raisonnable devant un tribunal.
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Ressortissant bahaméen inculpé et arrêté pour son rôle dans le complot de traite meurtrière d’êtres humainsRead the Press Release
Aujourd’hui, dans le District sud de Floride, la confidentialité a été levée de la mise en accusation concernant un ressortissant bahaméen pour son rôle présumé dans un complot ayant entrainé de nombreuses pertes de vie.
À la suite d’une vaste coordination et coopération entre les autorités des États-Unis et des Bahamas, Vandrick Nelson Smith, alias Muggy et Vans, âgé de 33 ans, a été arrêté aux Bahamas le 6 mars en réponse à une demande des États-Unis portant sur des accusations déposées en novembre 2023 sous pli scellé dans le District sud de Floride.
Selon les pièces de la procédure, Smith aurait été impliqué dans une organisation de trafic d’êtres humains cherchant à faire venir des migrants par bateau depuis les Bahamas vers les États-Unis. Les migrants étaient des ressortissants de la Colombie, de la Jamaïque, de la République dominicaine, d’Haiti et d’autres pays. Les migrants (ou leurs familles et amis) auraient versé de l’argent à l’organisation pour être introduits en contrebande aux États-Unis. Comme décrit ici, la mise en accusation allègue que Smith avait été personnellement impliqué dans trois incidents de passage de clandestins par voie maritime, dont un ayant couté la vie à cinq personnes.
« Vandrick Smith est accusé d’avoir organisé des opérations dangereuses de traite d’êtres humains, en envoyant des migrants par bateau depuis les Bahamas vers la Floride. Comme l’allègue la mise en accusation, les efforts de l’organisation de traite d’êtres humains se sont révélés meurtriers lorsqu’en janvier 2022 un bateau avec des migrants a chaviré » a déclaré Nicole Argentieri, la principale sous-procureure générale adjointe et la cheffe de la Division pénale du département de la Justice. « Les trafiquants d’êtres humains exploitent les gens désespérés pour l’argent et les conséquences peuvent être tragiques. La Division pénale est vouée au combat contre les organisations de traite d’êtres humains qui s’en prennent à et mettent en danger les migrants vulnérables où qu’elles opèrent ».
Smith aurait été impliqué dans trois instances de traite d’êtres humains par voie maritime vers le 6 mars 2021, le 22 janvier 2022 et le 8 aout 2022. La mise en accusation allègue que dans la soirée du 22 janvier 2022, aux Bahamas, de nombreux migrants sont montés à bord d’un vaisseau à destination de la Floride. Peu après le départ du vaisseau, les moteurs se seraient arrêtés et le vaisseau a chaviré. Le 25 janvier 2022, la Garde côtière des États-Unis a sauvé le seul survivant, accroché à la coque du vaisseau chaviré.
« Les entreprises de passage de clandestins mettent les vies en danger au nom du profit » a déclaré
Markenzy Lapointe, procureur fédéral pour le District sud de Floride. « Les passeurs exploitent les espoirs pour une vie meilleure des migrants. Tragiquement, les agissements des passeurs mettent sérieusement en péril les migrants. Aux fins de protéger les migrants vulnérables et de sauver des vies, le parquet fédéral continuera à travailler avec ses partenaires pour poursuivre ceux qui font du trafic illicite d’êtres humains ».
« La section des enquêtes de la sécurité intérieure est déterminée à travailler avec nos partenaires nationaux et internationaux pour traduire en justice les criminels imprudents qui accordent la priorité au gain financier sur les vies et la sécurité des personnes » a déclaré Anthony Salisbury, agent spécial responsable des enquêtes de la sécurité intérieure (HSI) à Miami. « Les risques associés aux opérations de traite des humains par voie maritime sont extrêmes. Nous exhortons le public à éviter de se lancer dans ces voyages avec des organisations criminelles dangereuses, lesquelles se soldent parfois par une tragédie ».
Suite à l’opération de janvier 2022 ayant entrainé des pertes de vies, cinq chefs d’accusation de tentative de faire passer des étrangers aux États-Unis ont été retenus contre Smith. Il est aussi accusé d’entente en vue de faire passer des étrangers aux États-Unis contre profit ; de mise en danger des vies d’étrangers ayant entrainé la mort ; de tentative de faire passer des étrangers aux États-Unis contre profit et de tentative d’aider et assister certains étrangers à entrer aux États-Unis. S’il est trouvé coupable de tentative de faire passer des étrangers aux États-Unis ayant entrainé la mort, Smith est passible d’une peine maximale de prison à vie.
HSI Fort Pierce et l’attaché adjoint de HSI à Nassau, aux Bahamas, ont enquêté sur le dossier avec l’aide de la Garde côtière des États-Unis, du bureau du sheriff du comté de Brevard et du service du médecin légiste du comté de Brevard. Le bureau des Affaires internationales du département de la Justice a apporté un appui important en matière des demandes d’entraide juridique internationale et les efforts menant à l’arrestation. Le département de la Justice remercie la Police royale des Bahamas, le ministère des Affaires étrangères des Bahamas, le Département de l’Immigration des Bahamas ainsi que le département des Poursuites pénales des Bahamas pour leur aide dans cette affaire.
L’enquête est menée dans le cadre du programme de la force de frappe extraterritoriale dite Extraterritorial Criminal Travel Strike Force (ECT), un partenariat entre la Division pénale du département de la Justice et le HSI. Le programme ECT se concentre sur les réseaux de traite d’êtres humains pouvant présenter un risque spécial pour la sécurité nationale ou à la sécurité du public ou qui sont une sérieuse source de préoccupation humanitaire. ECT dispose de ressources d’enquête, de renseignement et de poursuite dédiées. ECT coordonne et est assistée par d’autres organismes gouvernementaux américains et les services de détection et de répression étrangers.
La substitute du procureur Marie Zisa de la section des Droits de l’homme et de poursuites spéciales de la Division pénale ainsi que le procureur fédéral adjoint Justin Hoover du District sud de Floride poursuivent le dossier.
Une mise en accusation n’est qu’une allégation. Tous les accusés sont présumés innocents jusqu’à ce que leur culpabilité soit prouvée au-delà de tout doute raisonnable devant un tribunal.
Repeat drug trafficker gets significant sentenceRead the Press Release
McALLEN, Texas –A 63-year-old Pharr resident has been sentenced following his conviction of possession with intent to distribute 11 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gilberto Eloy Ramirez pleaded guilty Oct. 1, 2020.
U.S. District Chief Judge Randy Crane has now ordered Ramirez to serve a 262-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence detailing his extensive criminal history including seven prior convictions for drug trafficking. In handing down the sentence, Judge Crane noted Ramirez is a career offender who has spent a substantial amount of years in prison for his past crimes and yet continued to make poor choices.
In May 2019, authorities conducted a traffic stop on a Ramirez drove. He was found in possession of two plastic bags of cocaine in his pocket.
Law enforcement then searched his residence and property. They discovered multiple bricks of cocaine with a combined weight of 11 kilograms, a scale, plastic wrap, razor blades, heat seal bags and a loaded 9 mm caliber pistol.
Ramirez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys M. Alexis Garcia and Laura Garcia prosecuted the case.
Registered Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
GREENSBORO – A 42-year-old Asheboro man was sentenced today to 120 months in prison after pleading guilty to one count of possession of child pornography, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, investigators following a cybertip found that in October 2022, a video of child pornography was distributed by an IP address associated with RICHARD WILSON ADKINS, JR., a sex offender registered in Randolph County. In December 2022, the Randolph County Sheriff’s Office (RCSO) arrested ADKINS. Subsequent forensic analysis of ADKINS’ personal cell phone and a media platform used by ADKINS revealed more than 1,700 image files and nearly 2,000 video files of child pornography.
United States District Court Judge Thomas D. Schroeder sentenced ADKINS to a 120-month term of imprisonment followed by 10 years of supervised release. In addition, ADKINS was ordered to pay restitution totaling $98,000.00 and special assessments totaling $1,100.00. He pleaded guilty to one count of possession of child pornography on December 6, 2023.
The case was investigated by the Randolph County Sheriff’s Office, the Department of Homeland Security-Investigations, and the North Carolina State Bureau of Investigations. The case was prosecuted by Assistant United States Attorney K. P. Kennedy Gates.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Recidivist offender sentenced for firearm possessionRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to four years and nine months in prison for being a felon in possession of a firearm and ammunition.
According to court documents, on March 22, 2023, Richmond Police Department (RPD) detectives were patrolling an apartment complex in the 3400 block of Walmsley Boulevard following a recent homicide in the area. They observed Brandon Stephon Brown, 31, approach and quickly enter a breezeway. Brown reached into his pants and detectives saw a black handgun fall between Brown’s legs. The detectives detained Brown and recovered the 9mm handgun, which was loaded with a magazine containing 17 rounds, with an additional round in the chamber. The handgun was later determined to have been reported stolen.
At the time, Brown had four previous felony convictions, including robbery involving a firearm in 2012, two convictions in 2016 for possession of controlled substances, and possession of a firearm by a convicted felon in 2017. As a previously convicted felon, Brown cannot legally possess firearms or ammunition.
Brown was indicted by a federal grand jury on July 20, 2023, and convicted at a bench trial by Senior U.S. District Judge John A. Gibney, Jr, on Nov. 15, 2023.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by Judge Gibney.
Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-94.
Prominent Global Cryptocurrency Exchange KuCoin and Two of Its Founders Criminally Charged with Bank Secrecy Act and Unlicensed Money Transmission OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Darren McCormack, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment against global cryptocurrency exchange KuCoin and two of its founders, CHUN GAN, a/k/a “Michael,” and KE TANG, a/k/a “Eric,” for conspiring to operate an unlicensed money transmitting business and conspiring to violate the Bank Secrecy Act by willfully failing to maintain an adequate anti-money laundering (“AML”) program designed to prevent KuCoin from being used for money laundering and terrorist financing, failing to maintain reasonable procedures for verifying the identity of customers, and failing to file any suspicious activity reports. KuCoin was also charged with operating an unlicensed money transmitting business and a substantive violation of the Bank Secrecy Act. GAN and TANG remain at large.
U.S. Attorney Damian Williams said: “As today’s Indictment alleges, KuCoin and its founders deliberately sought to conceal the fact that substantial numbers of U.S. users were trading on KuCoin’s platform. Indeed, KuCoin allegedly took advantage of its sizeable U.S. customer base to become one of the world’s largest cryptocurrency derivatives and spot exchanges, with billions of dollars of daily trades and trillions of dollars of annual trade volume. But financial institutions like KuCoin that take advantage of the unique opportunities available in the United States must also comply with U.S. law to help identify and drive out crime and corrupt financing schemes. KuCoin allegedly deliberately chose not to do so. As alleged, in failing to implement even basic anti-money laundering policies, the defendants allowed KuCoin to operate in the shadows of the financial markets and be used as a haven for illicit money laundering, with KuCoin receiving over $5 billion and sending over $4 billion of suspicious and criminal funds. Crypto exchanges like KuCoin cannot have it both ways. Today’s Indictment should send a clear message to other crypto exchanges: if you plan to serve U.S. customers, you must follow U.S. law, plain and simple.”
HSI Acting Special Agent in Charge Darren McCormack said: “Today, we exposed one of the largest global cryptocurrency exchanges for what our investigation has found it to truly be: an alleged multibillion-dollar criminal conspiracy. KuCoin grew to service over 30 million customers, despite its alleged failure to follow laws necessary to ensuring the security and stability of our world’s digital banking infrastructure. The defendants’ alleged pattern of skirting these vitally important laws has finally come to an end. I commend HSI New York’s El Dorado Task Force and our law enforcement partners for their commitment to the mission.”
According to the allegations in the Indictment and KuCoin’s statements on its website:[1]
FLASHDOT LIMITED, formerly known as “Phoenixfin Limited,” PEKEN GLOBAL LIMITED, and PHOENIXFIN PRIVATE LIMITED are three entities collectively doing business as global cryptocurrency exchange KuCoin. GAN and TANG, among others, founded KuCoin in September 2017.
KuCoin solicited business from U.S. customers through its spot trading platform and, later, its futures trading platform, which was launched in July 2019. Since its founding in 2017, KuCoin has become one of the largest global cryptocurrency exchange platforms, with more than 30 million customers and billions of dollars’ worth of cryptocurrency in daily trading volume. KuCoin’s website touts public rankings of cryptocurrency exchanges that place KuCoin in the top five worldwide. One of these public rankings listed KuCoin as the fourth largest cryptocurrency derivatives exchange and fifth largest cryptocurrency spot exchange. KuCoin, GAN, and TANG sought to serve, and have in fact served, numerous customers located in the United States and in the Southern District of New York.
As a result, at all relevant times, KuCoin has been a money transmitting business required to register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) and, since July 2019, has been a futures commission merchant required to register with the U.S. Commodity and Futures Trading Commission (“CFTC”). As a money transmitting business and a futures commission merchant, KuCoin is required to comply with the applicable Bank Secrecy Act provisions requiring maintenance of an adequate AML program, including customer identity verification, or know-your-customer (“KYC”) processes. AML and KYC programs ensure that financial institutions, such as KuCoin, are not used for illicit purposes, including money laundering.
GAN, TANG, and KuCoin were aware of their U.S. AML obligations but willfully chose to flout those requirements. KuCoin failed, for example, to implement an adequate KYC program. Indeed, until at least July 2023, KuCoin did not require customers to provide any identifying information. It was only in July 2023, after KuCoin was notified of a federal criminal investigation into its activities, that KuCoin belatedly adopted a KYC program for new customers. However, this KYC process applied to new customers only and did not apply to KuCoin’s millions of existing customers, including the substantial number of customers based in the United States. KuCoin also never filed any required suspicious activity reports, never registered with the CFTC as a futures commission merchant, and, through at least the end of 2023, never registered with FinCEN as a money transmitting business.
In fact, GAN, TANG, and KuCoin affirmatively attempted to conceal the existence of KuCoin’s U.S. customers in order to make it appear as if KuCoin was exempt from U.S. AML and KYC requirements. Despite the fact that KuCoin gathered and tracked location information for its customers, KuCoin actively prevented its U.S. customers from identifying themselves as such when opening KuCoin accounts. And KuCoin lied to at least one investor, in 2022, about where its customers were located, falsely representing that it had no U.S. customers when, in truth, KuCoin had a substantial U.S. customer base. In fact, in a number of social media posts, KuCoin actively marketed itself to U.S. customers as an exchange where they could trade without having to undergo KYC. For example, KuCoin stated in an April 2022 message on Twitter that “KYC is not supported to USA users, however, it is not mandatory on KuCoin to do KYC. Usual transactions can be done using an unverified account-”
As a result of KuCoin’s willful failures to maintain the required AML and KYC programs, KuCoin has been used as a vehicle to launder large sums of criminal proceeds, including proceeds from darknet markets and malware, ransomware, and fraud schemes. Since its founding in 2017, KuCoin has received over $5 billion, and sent over $4 billion, of suspicious and criminal proceeds. Many KuCoin customers used its trading platform specifically because of the anonymity of the services it provided. In other words, KuCoin’s no-KYC policy was integral to its growth and success.
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GAN, 34, and TANG, 39, both citizens of China, are each charged with one count of conspiring to violate the Bank Secrecy Act and one count of conspiring to operate an unlicensed money transmitting business, each of which carries a maximum sentence of five years in prison.
FLASHDOT LIMITED, an entity incorporated in the Cayman Islands; PEKEN GLOBAL LIMITED, an entity incorporated in the Republic of Seychelles; and PHOENIXFIN PRIVATE LIMITED, an entity incorporated in Singapore, together d/b/a “KuCoin,” are each charged with one count of conspiring to violate the Bank Secrecy Act, which carries a maximum sentence of five years in prison; one count of conspiring to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison; one count of violating the Bank Secrecy Act, which carries a maximum sentence of 10 years in prison; and one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HSI New York’s El Dorado Task Force. Mr. Williams further thanked the Commodity Futures Trading Commission, which today filed a parallel civil action against KuCoin.
This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Emily Deininger and David R. Felton are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Pascagoula Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, MS – A Pascagoula man pleaded guilty to being a convicted felon in possession of a firearm.
According to court documents, Kiiyas Lett, 32, was pulled over in a traffic stop on September 5, 2023, in Jackson County, Mississippi. Agents obtained verbal consent to search the vehicle. They located and seized a Ruger LCP .380 handgun, found between the driver’s seat and the center console. Lett was previously convicted of a felony and is prohibited from possessing a firearm.
Lott will be sentenced on July 30, 2024, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi; and Special Agent in Charge Steven L. Hofer of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration, Pascagoula Police Department, and Mississippi Bureau of Narcotics are investigating the case.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Parker Man Indicted for Economic Injury and Disaster Loan and Payroll Protection Program Fraud SchemeRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Tarek Kassem, 63, of Parker, Colorado, was indicted by a federal grand jury for wire fraud and money laundering.
According to the indictment, from March 2020 and through at least March 2023, the defendant applied for and received more than $1.4 million dollars in Small Business Association (SBA) Economic Injury Disaster Loans (EIDL) and more than $300,000 in Payroll Protection Program (PPP) funds under three business names. These applications contained a number of false and fraudulent certifications and representations, including representations that funds would be used to pay eligible business expenses, when, in fact, the bulk of the proceeds were used for the defendant’s personal benefit. The defendant also applied for, and obtained, unemployment benefits in the State of Colorado during the COVID-19 pandemic.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created the PPP, a program administered by the SBA that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules. Additionally, the CARES Act authorized the SBA to provide EIDLs to eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic.
The defendant made his initial appearance on March 26, 2024, before Chief Magistrate Judge Michael E. Hegarty. The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Department of Labor – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Nicole Cassidy.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Orange Park Man Sentenced to 10 Years for Possessing over 5 Kilos of Cocaine with Intent to DistributeRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Peterson Fils-Aime (37, Orange Park) to 10 years in federal prison for possessing over 5 kilograms of cocaine with the intent to distribute it. Fils-Aime entered a guilty plea on December 12, 2023.
According to court records, Fils-Aime was the subject of a Drug Enforcement Administration (DEA) investigation in 2022. DEA agents had received information that on June 3, 2022, Fils-Aime would be transporting large amounts of cocaine in Jacksonville in the St. Johns Bluff area. Troopers from the Florida Highway Patrol conducted a traffic stop on Fils-Aime’s car. An FHP canine unit alerted to the presence of drugs inside Fils-Aime’s car and troopers recovered approximately seven kilograms of cocaine from inside the car. DEA agents interviewed Fils-Aime who admitted that he was on his way to deliver the cocaine.
This case was investigated by the Drug Enforcement Administration, the Florida Highway Patrol, and the Jacksonville Beach Police Department. It was prosecuted by Assistant United States Attorney Frank Talbot.
Oklahoma Man with History of Domestic Abuse Convictions Sentenced to 27 Months in Felon-in-Possession CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on March 21, 2024, Kewon Yarbrough, 38, of Tulsa, Oklahoma, was sentenced by United States District Judge William K. Sessions III to a term of 27 months’ imprisonment to be followed by a 3-year term of supervised release. Yarbrough previously pleaded guilty to knowingly possessing a firearm after having been convicted of an offense punishable by more than one year in prison.
According to court records, Yarbrough’s criminal history included 7 prior felony convictions, one of which was for a domestic violence offense in Oklahoma. His history also included an Oklahoma misdemeanor conviction for a domestic violence offense. In addition, in 2013, the State of Oklahoma prosecuted him for three felony and one misdemeanor domestic violence offenses. The misdemeanor case resulted in a conviction for violation of a protective order. The felony cases were dismissed for lack of participation by a prosecution witness, but the alleged felony conduct precipitated the revocation of previously suspended sentencing, resulting in a 5-year prison sentence.
Court records also show the State of Oklahoma issued domestic abuse protective orders, brought by four different women, against Yarbrough in 2009, 2010, 2011, and 2016. More recently, the State of Oklahoma charged Yarbrough in 2019 and 2022 with felony Domestic Abuse by Strangulation. According to Oklahoma court records, the 2019 case was dismissed for a prosecution witness’s failure to appear, and the 2022 case was dismissed without a reason listed on the docket.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Killington Police Department; and the Vermont State Police.
The case was prosecuted by Assistant U.S. Attorney Corinne Smith. Yarbrough was represented by Assistant Federal Public Defender Steven Barth.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Ohio Man Indicted for Concealing His Involvement in the Rwandan GenocideRead the Press Release
BOSTON – An Ohio man was indicted today by a federal grand jury in Boston for a nearly three-decade scheme to conceal his alleged involvement in the 1994 Rwandan genocide, which left more than 800,000 people dead. The defendant was also charged with obstruction of justice and perjury for allegedly offering false testimony in the 2019 Boston trial of convicted Rwandan genocide perpetrator Jean Leonard Teganya.
It is alleged that the defendant participated in the killing of Tutsi men, women and children by striking them on the head with a nail-studded club and then hacking them to death with a machete.
Eric Tabaro Nshimiye, a/k/a Eric Tabaro Nshimiyimana, 52, of Uniontown, Ohio, was indicted on four counts of perjury; one count of obstruction of justice; and one count of engaging in a scheme to conceal material information from federal authorities. Nshimiye was previously arrested and charged by criminal complaint on March 21, 2024. Following an initial appearance in federal court in the Northern District of Ohio, Nshimiye was detained pending a detention hearing scheduled for March 31, 2024. He will appear in federal court in Boston at a later date.
According to the charging documents, Nshimiye was a medical student at the University of Rwanda campus in Butare, Rwanda in the early 1990s. At that time, the country had significant ethnic division: about 85% of its population were Hutus, and about 14% were Tutsis. Both Nshimiye and Teganya were well-known student members of the MRND political party, the ruling Hutu-dominated party that incited the genocide, and the Interahamwe, the notoriously violent youth wing of that movement. According to court documents, in the spring of 1994, after the Hutu president’s plane was shot down over Kigali, the country spiraled into one of the worst ethnic genocides in modern history. Members of the Hutu majority murdered approximately 800,000 Tutsis, including women and children, in a 100-day frenzy.
It is alleged that Nshimiye participated in the killing of Tutsi men, women and children by striking them on the head with a nail-studded club and then hacking them to death with a machete. The charging documents allege specific instances of Nshimiye’s criminal conduct, including his murders of a 14-year-old boy and of a man who sewed doctor’s coats at the university hospital. Witnesses in Rwanda recently identified the locations of the killings and drew pictures of Nshimiye’s weapons. It is further alleged that Nshimiye both participated in and aided and abetted the rape of numerous Tutsi women during the genocide.
According to the charging documents, Nshimiye fled Rwanda in the summer of 1994, after an attacking Tutsi rebel group drove genocidaires into the Democratic Republic of Congo. Nshimiye made his way to Kenya where, in 1995, he allegedly lied to U.S. immigration officials to gain admission to the United States as a refugee. Nshimiye emigrated to Ohio and, in subsequent years, allegedly continued to provide false information about his involvement in the Rwandan genocide to obtain lawful permanent residence and ultimately U.S. citizenship. By allegedly concealing his crimes, Nshimiye has lived and worked in Ohio since 1995.
In 2017, the United States charged Teganya with fraudulently seeking asylum in the United States by similarly concealing his membership in the MRND and his involvement in the genocide. When called to testify at trial on Teganya’s behalf in 2019, Nshimiye said that neither he nor Teganya participated in the genocide. Teganya was ultimately convicted of two counts of immigration fraud and three counts of perjury in April 2019. The complaint alleges that Nshimiye assisted Teganya in obstructing justice at Teganya’s trial and falsely testifying about Teganya’s involvement in the MRND. It is also alleged that Nshimiye perjured himself when he denied his own membership in the MRND and Interahamwe.
The charging document also alleges that Nshimiye made false statements to federal agents when he was recently interviewed about his activities before coming to the United States and about the documents he signed to obtain citizenship. In response to questions, Nshimiye allegedly continued to make false statements to conceal his involvement in the genocide.
The charge of falsifying, concealing, and covering up a material fact by trick, scheme or device provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of obstruction of justice provides for a sentence up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Each count of perjury provides for a sentence of up to five 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 that govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Shawn S. Gibson, Special Agent in Charge of Homeland Security Investigations in Detroit; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Denis C. Riordan, District Director of the Fraud Detection and National Security Division of United States Citizenship and Immigration Services, Boston Field Division made the announcement today. This matter was investigated with the assistance of the United States Interagency Human Rights Violators & War Crimes Center, the Copley, Ohio Police Department and the Summit County, Ohio Sheriff’s Office. Assistant U.S. Attorneys John T. McNeil and Amanda Beck of the National Security Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Man Sentenced for Aggravated Identity Theft and Attempted Bank FraudRead the Press Release
COVINGTON, Ky. – A Bronx, N.Y., man, John Sapienza, 60, was sentenced on Tuesday, by U.S. District Judge David Bunning, to 38 months in prison, for aggravated identity theft and attempted bank fraud.
According to his plea agreement, from January 6 through January 11, 2023, Sapienza and Tyshawn Wilson, his co-defendant, travelled to multiple bank locations between New York and Kentucky, attempting to withdraw money from customer accounts. They used counterfeit identifications that bore Sapienza’s photograph, but with the identifying information of the account holder. Wilson aided and abetted Sapienza by driving him to and from bank locations to execute the identity theft and fraud scheme. On January 11, 2023, Sapienza and Wilson were arrested by officers with the Fort Thomas Police Department, after attempting to execute the scheme at multiple bank locations within the Eastern District of Kentucky.
Wilson was sentenced on March 14, 2023 and he received 44 months in prison.
Under federal law, Sapienza and Wilson must serve 85 percent of their prison sentences. Upon their release from prison, they will each be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Chief Casey Kilgore, Fort Thomas Police Department, jointly announced the sentences.
The investigation was conducted by the FBI and the Fort Thomas Police Department. Assistant U.S. Attorney Andrew Spievack is prosecuting the case on behalf of the United States.
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New Orleans Man Indicted for Possession of a Firearm by FelonRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Friday, March 8, 2024, CURTIS SQUIRE, age 27, was indicted for being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
On February 27, 2024, SQUIRE allegedly did knowingly possess a firearm having previously been convicted of a felony. Specifically, SQUIRE is accused of possessing a Glock Model 23C, .40 caliber pistol, and ammunition, said firearm and ammunition having been in and affecting interstate commerce.
If convicted, squire faces up to 15 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crimes Unit is in charge of the prosecution.
New Orleans Man Indicted for Being a Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on March 8, 2024, PAUL WILSON, age 23, of New Orleans, was indicted for being a felon in possession of a firearm, a violation of 18 U.S.C. Sections 922(g)(1) and 924(a)(8).
On February 27, 2024, WILSON allegedly did knowingly possess a firearm having previously been convicted of a felony. Specifically, WILSON is accused of possessing a Glock Model 23, .40 caliber pistol, and ammunition, said firearm and ammunition having been in and affecting interstate commerce. If convicted, WILSON faces up to 15 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crimes Unit is in charge of the prosecution.
New Orleans Man Indicted for Armed Bank Robbery and Attempted CarjackingRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Friday, March 8, 2024, JOSEPH CARSICE, age 38, of New Orleans, was charged in a five-count indictment for armed bank robbery, brandishing a firearm during and in relation to a crime of violence, and attempted carjacking.
On December 15, 2023, CARSICE allegedly robbed a branch of the Hancock Whitney Bank, while brandishing a firearm. CARSICE is also alleged to have attempted to carjack three separate vehicles, a 2016 Toyota Prius, 2010 Toyota Camry, and a 2011 Chevrolet Silverado.
In Count 1 of the indictment, CARSICE is charged with armed bank robbery, in violation of 18 U.S.C. Sections 2113(a) and 2113(d). If convicted of Count 1, Carsice faces up to 25 years imprisonment, up to a $250,000 fine, and up to five years of supervised release. In Count 2, CARSICE is charged with brandishing a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). If convicted of Count 2, CARSICE faces up to 7 years imprisonment, to run consecutively to any other term of imprisonment imposed, up to a $250,000 fine, and up to five years of supervised release. In Counts 3 through 5, CARSICE is charged with attempted carjacking, in violation of Title 18, United States Code, Section 2119(1). If convicted of Counts 3 through 5, CARSICE faces up to 15 years imprisonment, up to a $250,000 fine, and up to three years of supervised release. As to each count charged in this indictment, CARSICE also faces payment of a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crimes Unit is in charge of the prosecution.
New Jersey Registered Sex Offender Sentenced to 15 Years in Prison for Attempted Enticement of MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that BRIAN REED was sentenced to 15 years in prison by U.S. District Judge Phillip M. Halpern for attempted enticement of a minor. The sentencing today followed REED’s guilty plea on October 23, 2023.
U.S. Attorney Damian Williams said: “Brian Reed’s actions demonstrate the depths of depravity and danger potentially lurking in the digital realm that connects us all. Let this sentencing serve as a reminder that this Office will harness every tool at our disposal to hold accountable those who prey on and exploit our youth.”
According to documents filed in this case and statements made in related court proceedings:
On May 26, 2022, an investigator with the Rockland County’s District Attorney’s Office (“Investigator-1), who was working in an undercover capacity and posing as a 13-year-old girl on an online platform, engaged in text communications with REED. Investigator-1 told REED that she was 13 years old. During the communications, REED requested sexually explicit photos of Investigator-1 and asked her to meet with him to have sex. REED described the sexual things he wanted to do to Investigator-1 and, when she asked if he was “ok w my age,” REED responded, “Yes of course.” REED made a plan to meet Investigator-1 on the evening of May 26, 2022, in Rockland County, New York. That morning, REED told her, “Im going to make you moan so loud you are going to feel amazing” and instructed, “You should wear something thats easy to take off.”
On May 26, 2022, REED drove from New Jersey to Rockland County to have sex with the purported 13-year-old. When he arrived at the designated meeting location, he was arrested.
Previously, on October 17, 2016, REED was convicted in Morris County Superior Court in New Jersey of endangering the welfare of a child through sexual conduct. As a result of this conviction, on February 17, 2017, REED was sentenced to three years in prison and required to register as a sex offender.
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In addition to the prison term, REED, 36, of Franklin, New Jersey, was sentenced to a lifetime of supervised release.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Rockland County Sherriff’s Office, the Rockland County District Attorney’s Office, the Clarkstown Police Department, and the Orangetown Police Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
New Haven Resident Admits Making False Statements During Citizenship ProcessRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that MOHAMED NAJM KAMASH, also known as Mohamed Najm Mohamed Ali Kamash, 33, of New Haven, pleaded guilty yesterday before U.S. District Judge Omar A. Williams in Hartford to making a false statement in a naturalization proceeding.
According to court documents and statements made in court, Kamash is a lawful permanent resident of the U.S., having immigrated to the U.S. from Iraq in 2014. On August 17, 2021, Kamash appeared in Hartford for a U.S. Citizenship and Immigration Services (“USCIS”) interview about his pending Application of Naturalization (Form N-400), and was placed under oath. During the interview with a USCIS agent, Kamash knowingly and falsely stated that he did not know anyone involved with a terrorist organization and that no member of his family was involved with a terrorist organization.
At sentencing, which is not scheduled, Kamash faces a maximum term of imprisonment of five years.
Kamash was arrested on a criminal complaint on May 5, 2022. He is released on a $250,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and U.S. Citizenship and Immigration Services. The case is being prosecuted by Assistant U.S. Attorneys Patrick Doherty and Konstantin Lantsman.
New Castle Resident Sentenced to 120 Months in Prison for Crack Cocaine Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, Pa. – Sahire Walker was sentenced to 120 months in federal prison for committing crack cocaine trafficking and firearm crimes, United States Attorney Eric G. Olshan announced today.
Walker, age 45, of New Castle, Pennsylvania, was sentenced by United States District Judge David Stewart Cercone. Judge Cercone ordered Walker to serve six years of supervised release following his prison sentence.
Walker previously pled guilty in this case to committing the following crimes on June 4, 2020: (1) possession of cocaine base with intent to distribute, and (2) possession of a firearm in furtherance of a drug trafficking crime. Prior to imposing the sentence, the Court was informed that Walker possessed crack cocaine with intent to distribute, and a loaded pistol, inside the rental vehicle he was operating on June 4, 2020, at 1:00 a.m., in New Castle, Pennsylvania. As of that date, he had five prior drug trafficking convictions over the preceding 15 years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The New Castle Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions and sentence in this 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Navy sailor pleads guilty after trying to arrange sex acts with a 10-year-oldRead the Press Release
NORFOLK, Va. - A Virginia Beach man pleaded guilty today to attempting to persuade, induce, entice, and coerce a minor to engage in sexual activity.
According to court documents, on Jan. 17, Petty Officer First Class Vicente Muniz, Jr, 35, contacted a person he believed was the father of a 10-year-old child through a social media app. Muniz set up a meeting to engage in sex acts with the child. Muniz explained that he was supposed to meet another minor that day, but the minor stopped responding. Later that day, when Muniz attempted to meet with the purported parent and 10-year-old, he was arrested by law enforcement.
Muniz is scheduled to be sentenced on July 19. He faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorneys Megan M. Montoya and Anthony Marek are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-8.
N.Y. Man Who Traveled to Lynchburg to Meet 14-year-old for Sex Pleads GuiltyRead the Press Release
ROANOKE, Va. – A New York man, who drove 8 hours to attempt to have sex with a 14-year-old Lynchburg, Virginia girl with whom he had been chatting online, pled guilty yesterday.
Derrick Loi, 27, of Lakeville, New York, pled guilty yesterday to one count of coercion and enticement. At sentencing, Loi faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison, as well as a potential fine of up to $250,000.
“Protecting minors from online predators is a cornerstone priority for the Department of Justice,” United States Attorney Christopher R. Kavanaugh said today. “I am grateful to the FBI and the Lynchburg Police Department for their swift actions in this case and preventing a more dire situation.”
“This investigation demonstrates the FBI’s commitment to protecting the American people, especially when our children involved,” Special Agent in Charge Stanley Meador of the FBI’s Richmond Division said today. “I want to thank the case team and our law enforcement partners for their quick and decisive actions.”
According to court documents, in early February 2023, Loi met a 14-year-old girl from Lynchburg on Twitter (now known as X), and, in the early morning hours of February 14, 2023, began chatting with her on Discord. Loi told the young girl not only was he was interested in buying sexually explicit images and videos of her, but also wanted to meet her in person to have sex.
Ultimately, Loi agreed to pay the victim $300 to have sex and to provide sexually explicit images.
Loi and the victim agreed that Loi would become the victim’s “sugar daddy” and that he would get unlimited access to sexually-explicit content of the victim for a weekly fee of $50, which would increase to $100 after the first month. On February 15, 2023, Loi sent the victim a payment in line with that agreement.
On February 22, 2023, Loi and the victim began discussing plans for Loi to travel to meet the victim, including a discussion on specific sex acts and how he would film them.
After reserving a hotel room in Lynchburg, Loi chatted periodically with the young girl throughout his 8-hour drive from New York and also took time to send her a picture of items that he brought for their sexual encounter.
Just as Loi arrived at the pre-arranged location, an officer from the Lynchburg Police Department drove up and began questioning Loi. Initially, Loi provided a false name and lied to law enforcement about why he was in Lynchburg.
A subsequent search of Loi’s vehicle revealed sex toys, a box of the morning-after pill Plan B, and the bottle of pink vodka from an earlier photo that Loi had sent to the victim. The trunk of the car contained a large yellow plastic storage bag and was lined with a vinyl or rubber shower liner, on top of which sat a flattened cardboard box.
The Federal Bureau of Investigation investigated the case, and the Lynchburg Police Department provided vital assistance.
Assistant U.S. Attorney Jason Scheff is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Minnesota Man Who Stole $149,000 from Elderly Victim as Power of Attorney Sent to Federal PrisonRead the Press Release
Hamilton Girard, age 65, of Stillwater, Minnesota, was sentenced March 19, 2024, to 4 months imprisonment after pleading guilty to Wire Fraud and fined $10,000.
Evidence in the case revealed that in February 2020, Girard was designated power of attorney for an elderly person diagnosed with early onset dementia. Girard used his position as power of attorney to misappropriate approximately $149,000 of the victim’s funds. Girard signed and issued unauthorized checks from the victim’s personal checking account to purchase items such as home improvement and home construction-related goods and services for his own benefit, including the installation of a pool.
Girard was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 4 months’ imprisonment and fined $10,000. He was ordered to make $115,171.40 in restitution to the victim. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system. Girard was released on the bond previously set and is to surrender to the United States Marshal a date yet to be set.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3015.
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Mescalero Man Sentenced for 2022 AssaultRead the Press Release
ALBUQUERQUE – A federal judge has handed down a 9-year prison sentence to a Mescalero man after he pleaded guilty to assault resulting in serious bodily injury in a case stemming from a brutal attack on the Mescalero Apache reservation in 2022. Upon his release from prison, Dennett Jerome Chee, 37, a member of the Mescalero Apache Tribe, will be subject to three years of supervised release.
There is no parole in the federal system.
According to publicly available court records, on May 20, 2022, John Doe was at a friend’s house on the Mescalero Apache reservation. Chee and another man arrived at the house later, and upon entering, they attacked John Doe, repeatedly striking him in the face and back. At some point during the assault, John Doe lost consciousness, and the attack ceased.
Upon regaining consciousness, John Doe walked back home, where his mother then called the police. He was taken via ambulance to the Lincoln County Medical Center and later transferred to the University Medical Center in El Paso, Texas, due to significant injuries. Doe remained hospitalized for nearly a week, recovering from injuries that included a bilateral orbital wall fracture, hemorrhaging in the left maxillary sinus and left ethmoid air cells, and a compression fracture of the T12 vertebrae.
Following the assault, police encountered Chee and the other man walking together along the road away from the residence. Chee was carrying a wooden object resembling a baseball bat. Upon making contact, the officer chased Chee, eventually apprehending him and taking him into custody.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office and the Bureau of Indian Affairs investigated this case. Assistant United States Attorney Eliot Neal is prosecuted the case.
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Maryland MS-13 Gang Member Sentenced to 24 Years in Federal Prison for Participating in a Racketeering Conspiracy, Including a MurderRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Jose Lainez Martinez, age 29, an El Salvadoran national residing in Silver Spring, Maryland, yesterday to 24 years in federal prison, followed by five years of supervised release, after Lainez Martinez pleaded guilty to his participation in a racketeering conspiracy, including a murder, related to his activities as part of the MS-13 gang.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations Baltimore; Chief Marcus Jones of the Montgomery County Police Department and Montgomery County State’s Attorney John McCarthy.
According to court documents, La Mara Salvatrucha gang, also known as “MS-13,” is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, Frederick County, and throughout the United States. In Maryland and elsewhere, MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increases the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
As detailed in the plea agreement, from at least January 2020, Lainez Martinez was a member or associate of the MS-13 Fulton Locos Salvatruchas (“FLS”) clique and agreed with members of MS-13 to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included murder, conspiracy to commit murder, extortion and drug distribution. Lainez Martinez admitted that, to assist the gang to raise money, he participated in the sale of marijuana and the collection of extortion money from brothels and other businesses, providing the proceeds to gang leadership.
In the Spring of 2020, a MS-13 member, who was a former roommate of Victim 20, was assaulted by Victim 20 and others because they believed the MS-13 member had stolen property from Victim 20. After being told of the assault, MS-13 members indicated that the gang would have to retaliate against Victim 20 to maintain its standing. MS-13 gang members also believed that Victim 20 was associated with the rival 18th Street gang, which was another sufficient reason to kill him.
According to the plea agreement, the night of May 25, 2020, LAINEZ MARTINEZ and other MS-13 gang members gathered in a park in Silver Spring, Maryland. During that meeting, participants in the meeting discussed the plan to murder of Victim 20, which was scheduled to happen the morning of May 26, 2020.
As detailed in court documents, on May 26, 2020, at approximately 7:05 a.m., two FLS MS-13 gang members approached Victim 20 as he left his apartment in Silver Spring, Maryland and fired handguns at him repeatedly, hitting him eight times and killing him.
Following the murder, Lainez Martinez and co-defendant Oscar Efrain Zavala Urrea traveled to Annapolis where they met a third MS-13 gang member. Lainez Martinez and Zavala Urrea changed their clothes and disposed of the old clothing. They gave the third gang member a backpack containing two firearms for safe keeping. A few days later, Maryland State Police stopped the third gang member who had the backpack containing the two firearms.
Last week, Chief Judge Bredar sentenced co-defendant Oscar Efrain Zavala Urrea, age 23, an El Salvadoran national residing in Silver Spring, Maryland, to 25 years in federal prison for his participation in the racketeering conspiracy.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
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 make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Barron commended the FBI, HSI, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Kenneth S. Clark and Anatoly Smolkin, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Los Angeles Trio Sentenced for Laundering Gift Cards Purchased by Victims of Telephone ScamsRead the Press Release
A California man and two Chinese nationals were sentenced today to 15, 10 and eight years in prison, respectively, for laundering gift cards purchased by telephone-scam fraud victims at Target stores across the United States.
According to court documents, Blade Bai, 35, of El Monte, Bowen Hu, 28, of Hacienda Heights, California, and Tairan Shi, 29, of Diamond Bar, California, were part of a network of individuals who laundered proceeds of fraud stored on Target gift cards. Telephone scammers fraudulently induced victims across the country to buy gift cards, often $500 each, and to provide the card numbers and access codes to the scammers. The scammers included government imposters falsely claiming to be police and other government personnel and retail and tech support impersonators falsely offering to fix nonexistent issues with the victims’ online account or computer.
The defendants acquired more than 5,000 gift card numbers and access codes from a group in the People’s Republic of China calling itself the “Magic Lamp,” and funneled the gift cards to “runners” to liquidate at Target stores in southern California. Those runners, at the defendants’ direction, would quickly use the cards to purchase high-value consumer electronics and conduct other transactions. The rapid transactions prevented Target from recouping the value on the cards for the original victim-purchasers.
A jury convicted the defendants of a money laundering conspiracy that spanned from approximately June 2019 to November 2020. The jury also convicted Bai of a second money laundering conspiracy, in which he enlisted an associate to help sell a batch of gift cards with fraudulent proceeds after his initial arrest in the case. One of the defendants’ main “runners,” Yan Fu, 61, of Chino Hills, California, pleaded guilty and was previously sentenced to 20 months in federal prison.
“Transnational fraud schemes typically rely on complicated networks designed to launder victim proceeds,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This case is a testament to the commitment of the department and our partners to ensuring that all those who knowingly facilitate fraud face justice.”
“These defendants were part of a sophisticated, transnational fraud operation that targeted mostly older adults to cheat them out of their savings,” said U.S. Attorney Martin Estrada for the Central District of California. “Protecting our most vulnerable community members is critically important, and we will hold accountable those who reach into our country to engage in these sorts of egregious fraud schemes.”
“The FBI and its partners are committed to going after networks that perpetuate fraud even when they are targeting the American people from thousands of miles away and over the phone,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Today’s sentencing should make it known to individuals that participate in this sort of illegal activity that they can expect to face the consequences of their actions.”
“HSI Los Angeles’ El Camino Real Financial Crimes Task Force will continue to aggressively target greedy criminals and organizations that seek to line their pockets by defrauding unsuspecting victims,” said Special Agent in Charge Eddy Wang for HSI Los Angeles. “The defendants’ desire for easy money will lead to them doing hard time.”
Homeland Security Investigations’ El Camino Real Financial Crimes Task Force and the FBI investigated the case, with assistance from the Social Security Administration’s Office of the Inspector General and numerous local police departments across the United States, including the Brea Police Department, La Palma Police Department and Menifee Police Department. The El Camino Real Financial Crimes Task Force is part of HSI’s National El Dorado Task Force Initiative and is a multi-agency task force comprised of federal and state investigators focused on financial crimes in Southern California.
Assistant U.S. Attorney Monica E. Tait for the Central District of California and Trial Attorneys Wei Xiang and Meredith B. Healy of the Civil Division’s Consumer Protection Branch prosecuted the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Lexington Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
FRANKFORT, Ky. – A Lexington, Ky., man, Jair Cisneros-Gomez, 25, was sentenced on Tuesday, by U.S. District Judge Gregory VanTatenhove, to 30 years in prison, for production of child pornography.
According to his plea agreement, on February 14, 2023, a witness contacted law enforcement after discovering videos of Cisneros-Gomez sexually abusing a minor victim. Cisneros-Gomez admitted to law enforcement that he sexually abused the minor and he produced videos of the sexual abuse on his cellphone.
Under federal law, Cisneros-Gomez must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by HSI and Lexington Police Department. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Laveen Man Sentenced to 15 Years for Abusive Sexual Contact of a MinorRead the Press Release
PHOENIX, Ariz. – Fred Damien Acunia, 27, of Laveen, a member of the Gila River Indian Community, was sentenced last week by U.S. District Judge Susan M. Brnovich to 188 months in prison, followed by lifetime supervised release.
Between November 26, 2020, and November 25, 2021, Acunia engaged in sexual contact with the victim, who was under the age of 12 years old at the time of the offense. Acunia pleaded guilty to Abusive Sexual Contact of a Minor on August 14, 2023.
The Federal Bureau of Investigation and Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorneys Raynette Logan and Vinnie Lichvar, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-01692-PHX-SMB
RELEASE NUMBER: 2024-038_Acunia# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Laboratory Owner Pleads Guilty to $30M Medicare Fraud SchemeRead the Press Release
A Florida man pleaded guilty today to his role in a scheme to defraud Medicare by billing for over-the-counter COVID-19 test kits and genetic tests that were ineligible for reimbursement and procured by paying illegal kickbacks and bribes.
According to court documents, Robert M. Clark, 29, of Pompano Beach, was the figurehead owner of Clear Choice Diagnostics Inc. (Clear Choice). Clark and his co-conspirators, including the true owner of Clear Choice, purchased Medicare Beneficiary Identification numbers without lawful authority and then used those numbers to bill Medicare for over-the-counter COVID-19 test kits. Clark and his co-conspirators also paid illegal kickbacks and bribes to marketers in exchange for referrals of Medicare beneficiaries for genetic tests. In total, Clark and his co-conspirators caused Clear Choice to submit approximately $30 million in fraudulent claims to Medicare for these tests, of which Medicare paid approximately $15 million.
Clark pleaded guilty to conspiracy to defraud the United States, to pay illegal health care kickbacks, and to purchase Medicare Beneficiary Identification numbers without lawful authority. He is scheduled to be sentenced on June 20 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney S. Babu Kaza of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Seeks Forfeiture of $14 Million Manhattan Apartments Purchased with Proceeds of Mongolian Corruption SchemeRead the Press Release
The Justice Department filed a civil forfeiture complaint today in the U.S. District Court for the Eastern District of New York alleging that two apartments located in New York City were purchased for $14 million with the proceeds from an international corruption scheme and are subject to forfeiture based on violations of federal money laundering statutes.
“As alleged in the complaint, Sukhbataar Batbold — the former prime minister of Mongolia — abused his position as prime minister to profit from the sale of his country’s natural resources,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “He and his family used the proceeds of their corrupt scheme to buy $14 million in high-end real estate in the United States. With this action, those properties are subject to forfeiture. Kleptocrats should take note: the Criminal Division is unwavering in its resolve to recover proceeds of official corruption and take the profit out of crime.”
The civil forfeiture complaint alleges that Sukhbaatar Batbold, who previously served as Prime Minister of Mongolia and is a current member of Mongolia’s parliament, used his position as prime minister to award lucrative contracts to sell copper concentrates from a Mongolian state controlled mine to entities that were owned and controlled by his known associates or his son. These intermediaries, who had little to no experience in the copper trade, played no part in providing financing for the purchase of the copper concentrates or in arranging the sale or shipment of the commodities. They simply concealed the fact that Batbold and his family were violating Mongolian anti-corruption laws by benefiting from the sale of millions of dollars’ worth of Mongolian natural resources.
“As alleged, former Mongolian Prime Minister Batbold used high-end New York City real estate as a cover for his illicit corruption scheme,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s forfeiture action sends a message that criminal activity is never included in the homeowner’s agreement. My office will not tolerate public corruption that undermines faith in government, wherever committed.”
“While he was Prime Minister of Mongolia, the defendant allegedly used corrupt funds and a sophisticated money laundering scheme to purchase two luxury New York apartments,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Make no mistake, the FBI is dedicated to identifying assets gained through corruption and working with our partners to recover the funds, no matter how obscured.”
FBI New York’s International Corruption Squad is investigating the case.
Deputy Chief Adam J. Schwartz of the Kleptocracy Asset Recovery Initiative of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Tara McGrath and Brian Morris for the Eastern District of New York are handing the case.
The Justice Department’s Office of International Affairs provided assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil complaint is merely an allegation. The government has the burden of establishing the assets are subject to forfeiture by a preponderance of the evidence.
Jumbotron Hacker and Prolific Child Molester Sentenced to 220 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Samuel Arthur Thompson (53, St. Augustine) to 220 years in federal prison, followed by a lifetime of supervised release, for producing, receiving, and possessing child sex abuse material (CSAM), producing CSAM while required to register as a sex offender, violating the Sex Offender Registration and Notification Act (SORNA), sending unauthorized damaging commands to a protected computer, and possessing a firearm as a convicted felon. The court also ordered Thompson to forfeit computers and a firearm that were used in the offenses. Thompson was convicted by a federal jury on November 17, 2023.
According to court documents and information presented at trial and sentencing, Thompson was convicted of sodomizing of a 14-year-old male child in Alabama in 1998 and was therefore a convicted felon and required to register as a sex offender, including reporting his international travel. Thompson was also prohibited from possessing firearms as a convicted felon.
Thompson was hired as a contractor by the Jacksonville Jaguars around 2013 to consult on the design and installation of the Jaguars’ new video board network, referred to as a Jumbotron, and later to operate the Jumbotron on gamedays. Thompson’s contract with the Jaguars required him to report his conviction, but he did not. In January 2018, the Jaguars determined not to renew Thompson’s contract after learning of his conviction and status as a registered sex offender.
Before the expiration of Thompson’s contract in March 2018, Thompson installed remote access software on a spare server in the Jaguars’ server room. Thompson then remotely accessed computers that controlled the Jumbotron during three 2018 season NFL games, causing the video boards to repeatedly malfunction.
After conducting an investigation, the Jaguars determined that the outages were being caused by a malicious actor sending commands via the spare server. On December 16, 2018, the Jaguars set up a “honeypot” by putting the server on its own network and removing its access to the other computers that controlled the jumbotron. During the next NFL game, the spare server was again remotely accessed and attempted to be used to send commands to computers controlling the Jumbotron. The Jaguars were able to capture the Internet Protocol (IP) address of the intruder – which the Federal Bureau of Investigation traced to Thompson’s residence.
In July 2019, the FBI executed a federal search warrant at Thompson’s home and seized a number of his computers. They also seized a firearm from Thompson’s nightstand, which he was prohibited from possessing as a convicted felon.
Log files from Thompson’s iPhone, iPad, and two laptops showed that each of those devices had been used to remotely access the spare server. Additionally, the FBI found thousands of images and hundreds of videos on Thompson’s personal devices depicting CSAM, including images and videos depicting the sexual abuse of young children, bondage and torture of children, and bestiality. The CSAM also included a video and series of photos that Thompson had produced in June 2019. Thompson’s voice could be heard speaking to the children at the beginning of the video, which was taken in Thompson’s living room. A review of Thompson’s iPad further revealed that he had been searching the dark web for CSAM at the time the FBI knocked on his door with the search warrant.
Subsequent interviews of three male children known to Thompson in 2019 revealed that Thompson had molested two of the children, exposed himself to them, exposed the children to CSAM, spoke to the children about sex and masturbation, and had encouraged the children to play a “game” wherein the children were required to take off their clothes and run around. It was while the children were playing the “game” that Thompson produced CSAM. The children were 7, 8, and 10 years old at the time.
Thompson traveled to The Bahamas on a work trip from July 6 - 14, 2019. On July 15, 2019, Thompson registered as a sex offender and failed to report this travel as required by the Sex Offender Registration and Notification Act (SORNA). That same day, Thompson also received CSAM via the dark web.
On July 27, 2019, Thompson fled to the Philippines – once again failing to report his travel. Thompson’s passport was revoked, and he was deported from the Philippines on January 31, 2020, and was arrested by the FBI upon arrival in the United States and later ordered detained pending trial.
Further investigation by the FBI revealed that Thompson had sexually exploited two additional children, including one child that Thompson encountered as he was fleeing from prosecution in July 2019.
“This case exemplifies the unrelenting tenacity of investigators who pursue justice for innocent victims of crime,” said FBI Jacksonville’s Acting Special Agent in Charge Coult Markovsky. “Samuel Thompson repeatedly abused and exploited innocent children, inflicting immeasurable hurt on his victims. He also abused and exploited his employer by installing malicious software to manipulate their systems, which could have caused significantly more damage if not detected. Let this sentence serve as a pledge to all victims of crime that the FBI and our partners will doggedly pursue those who prey on them.”
This case was investigated by the Federal Bureau of Investigation, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Johns County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor, Brenna Falzetta, and Adam Duso. The asset forfeiture is being handled by Assistant United States Attorneys Mai Tran and Jennifer Harrington.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Hiding meth in shoes lands smuggler in prisonRead the Press Release
McALLEN, Texas – A 30-year-old Edinburg resident has been sentenced following his conviction of importing meth, announced U.S. Attorney Alamdar S. Hamdani.
Oscar Salazar pleaded guilty Aug. 4, 2022.
U.S. District Chief Judge Randy Crane has now ordered Salazar to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence of Salazar’s prior criminal history including a felony conviction for trafficking marijuana through a Border Patrol checkpoint.
On Dec. 11, 2020, Salazar drove to the Hidalgo Port of Entry attempting to enter the United States from Mexico. Law enforcement conducted a search of his vehicle and found multiple packages of meth hidden within the center console, glove compartment and a pair of shoes within his vehicle.
The meth weighed approximately three pounds with an estimated street value of $5,000.
Salazar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Georgia Resident Who Traveled to Hillsborough County to Kill His Ex-Girlfriend and Her Dog IndictedRead the Press Release
Tampa, Florida–United States Attorney Roger B. Handberg the announces the indictment of Timothy Crawford (52, Georgia) for interstate domestic violence, discharge of a firearm during and in the commission of a crime of violence, and interstate stalking. If convicted, Crawford faces a mandatory minimum sentence of 10 years, up to life, in federal prison.
According to the criminal complaint and indictment, in the early morning hours of December 7, 2023, Crawford left Atlanta, Georgia and began driving towards the home of his ex-girlfriend (M.B.) in Odessa, Florida. At approximately 8:00 p.m. that evening, Crawford broke into M.B.’s residence armed with a pistol and stun-gun and waited for her to return home. When M.B. arrived, Crawford punched, kicked and electrically stunned M.B. numerous times, while telling her that he was going to kill her and her children. M.B. defended herself with a dumbbell, and ultimately escaped the residence. Before departing, Crawford shot and killed M.B.’s dog, an eight-pound Maltese.
A neighbor who heard M.B.’s screams called 911, and responding Hillsborough County Sheriff’s Office deputies immediately took Crawford into custody. Inside of the house, deputies discovered an H&K USP .40-caliber pistol on the dining room table, and observed blood all over the house, including in the garage, laundry room, bedroom, and front entry area. M.B. sustained severe injuries from the attack, including extensive bruising to her body, neck, and face, stun-gun burns, a fractured left orbital bone, nose, ring finger/hand, and a laceration to her head requiring stiches.
Crawford admitted to breaking into the victim’s house, using a taser on her, punching her in the face, and killing her dog. Search warrants executed on Crawford’s phone revealed that prior to the attack, Crawford searched on his phone, “do you get the death penalty if you kill a woman.”
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 Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
Freeport, Minnesota Woman Apprehended in Mexico Pleads Guilty to Drug Trafficking Charges in North DakotaRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that Deanna Marie Gerads, age 33, appeared in Federal court on March 26, 2024, in Fargo and pleaded guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances before Chief District Court Judge Peter D. Welte. Gerads is scheduled to be sentenced on July 2, 2024 at 9:00 a.m.
Gerads was apprehended in Mexico on August 1, 2023, by Mexican immigration authorities and deported from Mexico. The Federal Bureau of Investigation (FBI) was instrumental in providing information that led to the apprehension of Gerads, who had been a fugitive for over a year.
This case is part of “Operation Unfinished Business II,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of methamphetamine, cocaine, and fentanyl.
This case is being investigated by the Central Minnesota Violent Offenders Task Force (CMVOTF), Federal Bureau of Investigation, St. Cloud Police Department, Stearns County Sheriff’s Office, Sartell Police Department, Benton County Sheriff’s Office, Sherburne County Sheriff’s Office, Morrison County Sheriff’s Office, Internal Revenue Service – CID, Fargo Police Department, West Fargo Police Department, Minnesota Bureau of Criminal Apprehension and the Drug Enforcement Administration.
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Alex Stock, District of North Dakota.
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Four Sentenced in Federal Court for their Role in Meth Trafficking Ring and Related Firearms CrimeRead the Press Release
COLUMBIA, S.C. — Two men from the Midlands and a California man and woman were sentenced after pleading guilty in federal court to their roles in a methamphetamine trafficking conspiracy and a related firearms crime.
- Andre Alexander Boulware, 46, of Columbia, was sentenced to more than 11 years in prison after pleading guilty to conspiring to possess with intent to distribute and to distribute methamphetamine.
- Victor Guzman, 30, of Long Beach, California, was sentenced to more than 18 years in prison after pleading guilty to conspiring to possess with intent to distribute and to distribute methamphetamine and possessing a firearm in furtherance of drug trafficking.
- Alice Hortencia Velazquez, 30, of Long Beach, California, was sentenced to seven years in prison after pleading guilty to conspiring to possess with intent to distribute and to distribute methamphetamine.
- Jessie James York, 44, of Lexington, was sentenced to 14 years in prison after pleading guilty to conspiring to possess with intent to distribute and to distribute methamphetamine.
Evidence presented to the court showed that from 2018 to 2021, Guzman served as a California-based source of supply for extremely pure “ice” methamphetamine, which was shipped to Columbia, South Carolina. Over the course of the conspiracy, Guzman was responsible for trafficking more than eight kilograms of “ice” methamphetamine to the Columbia area. Velazquez was a California-based facilitator/distributor for Guzman. Boulware received methamphetamine from Guzman and Velazquez and distributed drugs to others, including York.
On Oct. 29, 2019, law enforcement executed a search warrant at the Long Beach, California home of Guzman and Velazquez. Inside the property and cars parked at the home, law enforcement found approximately two and a half kilograms of “ice” methamphetamine, two 9mm firearms and ammunition. Guzman later admitted he had the firearms because of the dangers involved in drug dealing.
In August 2020, law enforcement in Columbia intercepted two boxes sent to Boulware. Each box contained approximately half a kilogram of “ice” methamphetamine. Further investigation revealed that Velazquez, working for and on behalf of Guzman, had helped Boulware obtain that methamphetamine, and that the methamphetamine trafficking conspiracy had been ongoing since at least 2018.
“Illegal narcotics pose a serious danger and public health risk,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “As these sentences bring an end to Guzman’s operation, we will continue to prosecute drug traffickers who poison our community.
“Driven by greed, these drug traffickers’ activities posed a significant threat from South Carolina to California,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “The success of this investigation is proof that those destroying our communities with methamphetamine will be brought to justice.”
“These investigations speak volumes of the success we have in apprehending those that put poison in our communities,” Richland County Sheriff Leon Lott said. “Multiple agencies working together can defeat the drug trafficking organizations.”
United States District Judge Mary Geiger Lewis sentenced all four individuals. Andre Alexander Boulware was sentenced to 135 months imprisonment. Victor Guzman was sentenced to 220 months imprisonment, 160 months on the methamphetamine conspiracy, and 60 months consecutive on the firearm count. Guzman’s 220-month sentence in this case will run concurrent to a 60-month custodial sentence imposed on Guzman by the United States District Court for the Southern District of New York for his role in an unrelated fentanyl trafficking conspiracy. Alice Hortencia Velazquez was sentenced to 84 months imprisonment. Jessie James York was sentenced to 168 months imprisonment. There is no parole in the federal system. Boulware, Guzman and York’s terms of imprisonment will all be followed by five-year terms of court-ordered supervision. Velazquez’s term of imprisonment will be followed by a four-year term of court-ordered supervision.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by Richland County Sheriff’s Department, the South Carolina State Law Enforcement Division, the Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Former President of Oklahoma Steel Pole Manufacturer Sentenced to Prison for Tax EvasionRead the Press Release
An Oklahoma man was sentenced yesterday to 30 months in prison for evading over $1 million in income taxes.
According to court documents and statements made in court, from 2014 to 2019, Phillip Barry Albert was President of Pelco Structural LLC, a steel pole manufacturing company located in Claremone, Oklahoma. During that period, Albert directed Pelco’s outside payroll service company to pay him over $2.6 million of Pelco’s funds, which should have been treated as income to him. Albert, however, instructed that the payroll company falsely characterize the payments as reimbursements rather than income, so that the payroll company would not withhold federal income taxes or report the payments as wages on Albert’s Forms W-2. Albert then did not report the payments on his income tax returns for those years.
Albert caused a tax loss to the IRS of $1,000,232.
In addition to his prison sentence, U.S. District Judge Terence Kern for the Northern District of Oklahoma ordered Albert to serve one year of supervised release and to pay approximately $1,000,232 in restitution to the United States and $2,615,750 in restitution to Pelco Industries Inc., which is the former parent company of Pelco.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Thomas Duncombe for the Northern District of Oklahoma are prosecuting the case.
Former New Jersey Corrections Officer Admits Role in Cryptocurrency Fraud Scheme That Targeted Law Enforcement, Fire Personnel, and Other First RespondersRead the Press Release
NEWARK, N.J. – A former New Jersey corrections officer admitted orchestrating two different fraud schemes, including a cryptocurrency scheme that resulted in losses of more than $600,000, U.S. Attorney Philip R. Sellinger announced today.
John DeSalvo, 47, of Linwood, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on March 25, 2023, to a two-count Information charging him with two counts of securities fraud.
“This defendant preyed on unwitting public servants to trick them into investing their hard-earned savings in a sham token he dubbed ‘the crypto pension’, which he then stole for his personal use. My office will relentlessly pursue these kinds of scammers so that we can work with our partners to bring fraudsters to justice.”
U.S. Attorney Philip R. Sellinger
“DeSalvo admits his role in two fraud schemes, one of which involved him creating and marketing a crypto token to first responders that could supplement their existing pensions,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Police officers, firefighters, EMTs, and other first responders show up each day to serve and protect, hoping their hard-earned pensions will allow for a nice retirement one day. Many of his victims ended up losing their entire investments. He's now facing the justice he deserves."
According to the documents filed in this case and statements made in court:
The Blazar Token Fraud
DeSalvo was the creator and promoter of a digital token known as “Blazar Token,” (Blazar) which DeSalvo marketed to police, fire personnel, EMTs, and other first responders as a “crypto pension” that could be used to supplement investors’ existing pension plans. DeSalvo promised investors that Blazar would offer “more stability than any other token” and that the value of Blazar would “continue to rise over time similar to any investment fund, only at a much higher rate of success.”
Beginning in late 2021, DeSalvo used social media platforms to fraudulently solicit investments in Blazar through a series of misrepresentations including that Blazar was in the process of becoming, or was already, a securitized token approved by the Securities and Exchange Commission; and Blazar could be purchased through payroll deductions and/or ACH transactions. DeSalvo also falsely told investors that Blazar had been approved for inclusion on several well-known cryptocurrency exchanges and guaranteed investors rates of return of more than 20 percent with “ZERO risk.”
In total, DeSalvo raised more than $620,000 from more than 200 investors in Blazar. After receiving investor funds, DeSalvo frequently used the funds for various illicit purposes unrelated to Blazar including personal expenses, day-trading in various volatile cryptocurrencies, and payments to prior investors in the manner of a Ponzi scheme.
In May 2022, DeSalvo sold off more than 41 billion of his own Blazar tokens, which caused the price of the token to drop precipitously. The value of Blazar never recovered, causing most investors to lose their entire investments.
The Brokerage-1 Fraud
Between January 2021 and May 2021, DeSalvo managed and solicited investment in an investment group through Brokerage-1, an online trading platform. DeSalvo marketed the investment group largely through social media posts in which DeSalvo falsely touted his success as an investor. For example, DeSalvo claimed to potential investors, “I have been averaging close to 1200% over the last 2 years. I am in the top 1,000th percent in the world. That’s the truth, the return rates I have been averaging are so high that I have people throwing money at me to invest.”
In total, DeSalvo solicited approximately $100,000 in investments from approximately 20 individuals for the investment group. After receiving the funds, DeSalvo engaged in trading activities for a brief period of time before transferring all the funds out of the investment group’s account at Brokerage-1 and into personal accounts held by DeSalvo at Brokerage-1 and Coinbase. DeSalvo then used the funds for various non-investment purposes such as credit card payments, personal trading in volatile cryptocurrencies, and payments to a contractor who performed work on DeSalvo’s personal residence.
After draining the investment group’s account, DeSalvo advised the investment group investors that their funds had been lost due to poor market conditions and provided the investors with false trading records purporting to show the trading activity that DeSalvo engaged in on behalf of the investment group.
The counts of securities fraud carry a maximum potential penalty of 20 years in prison and a fine of $5 million. Sentencing is scheduled for Aug. 6, 2024.
The U.S. Securities and Exchange Commission (SEC) also previously filed a civil complaint against DeSalvo based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark and detectives from the New Jersey Division of Criminal Justice, Cyber Crimes Bureau, under the direction of Director Stephen Ferketic, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Anthony Torntore, Chief of the U.S. Attorney’s Cybercrime Unit in Newark.
desalvo.information.pdfFormer Guinea-Bissau president’s son sent to U.S. prison for international drug traffickingRead the Press Release
HOUSTON – The leader of a transnational drug trafficking organization has been imprisoned for his involvement in an international heroin trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Malam Bacai Sanha Jr., 52, pleaded guilty Sept. 6, 2023, to conspiracy to distribute a controlled substance for the purpose of unlawful importation.
U.S. District Judge Keith Ellison has now ordered Sanha to serve an 80-month-term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard Sanha was the son of the former president of Guinea-Bissau and was intending to use drug proceeds to finance his future campaign for president in 2025 and a coup in that country. In handing down the sentence, the court noted Sanha was a leader and organizer in the heroin trafficking conspiracy and was directly involved in its importation from Europe to the United States. The court also found his drug trafficking activities to be extensive.
“The expansive reach of transnational criminal networks, like the one Sanha ran, presents a serious threat to the safety and health of all communities,” said Hamdani. “Sanha and his associates intended to distribute kilograms of heroin to the United States at a time when Americans lose their lives to drug overdose every day. This prosecution represents our office’s unwavering determination, together with our U.S. and international partners, to target and bring to justice violent criminals who lead transnational drug trafficking organizations that continue to flood our country with dangerous drugs.”
“The success of this investigation is the result of careful coordination between our federal, state, local and international partners,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) Houston Division. “Our goal is to keep the citizens of the United States safe from the terrors of drug traffickers, whether they reside on our soil or foreign land.”
“Malam Bacai Sanha Jr. wasn’t any ordinary international drug trafficker,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “He is the son of the former president of Guinea-Bissau and was trafficking drugs for a very specific reason - to fund a coup that would eventually lead him to the presidency of his native country where he planned to establish a drug regime. Fortunately, FBI Houston agents and our partners at the DEA thwarted his attempts, with the cooperation of our international partners. Crime has a global reach and impact, and so does the FBI.”
Sanha was the leader of a transnational criminal organization and worked with co-conspirators and international individuals to import heroin from various countries into Portugal.
With the assistance of co-conspirators, Sanha provided 4.7 kilograms of heroin to an undercover member of law enforcement in Lisbon, Portugal, in February and March 2022. He further agreed to deliver the heroin on at least three occasions, believing it would be unlawfully imported into the United States.
On July 23, 2022, Tanzanian law enforcement arrested Sanha pursuant to domestic criminal charges, along with a co-conspirator, upon their arrival in Dar Es Salaam, Tanzania. The United States presented a formal request for Sanha’s extradition to the government of Tanzania, which the Tanzanian courts granted Aug. 5, 2022. The Tanzanian Minister of Constitutional and Legal Affairs signed the formal surrender order Aug. 16, 2022. Sanha and his co-conspirator arrived in the Southern District of Texas Aug. 26, 2022.
Sanha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
DEA Houston, FBI Houston and the U.S. Marshals Service conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative with the assistance of DEA Special Operations Division in Washington D.C., DEA Romania, DEA Portugal and DEA Tanzania as well as Portuguese Judicial Police. Thanks are also extended to the government of the United Republic of Tanzania. These OCDETF cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that are designated as Consolidated Priority Organization or Regional Priority Organization Targets and that impact Houston and south Texas. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The Justice Department’s Office of International Affairs worked with Tanzanian authorities to secure the arrest and extradition of Sanha. The Justice Department thanks the government of the United Republic of Tanzania, including the Drug Control and Enforcement Authority, Tanzanian Police Force Airport Interdiction Unit, Director of Public Prosecution and the Ministry of Constitutional and Legal Affairs, and the Portuguese Judicial Police.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz prosecuted the case.
Former Georgia Detention Officer Pleads Guilty to Civil Rights Violation for Strangling Female DetaineeRead the Press Release
A former detention officer with the Fulton County, Georgia, Sheriff’s Office pleaded guilty today to violating a detainee’s civil rights by using excessive force while booking her into a Fulton County detention facility.
Monique Clark, 32, pleaded guilty to one count of deprivation of rights under color of law.
“This defendant wrapped his hands around the throat of a handcuffed woman and strangled her into unconsciousness while she was being booked into the Fulton County Jail system,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This conduct was cruel, abusive and violated Fulton County Sheriff’s office policies that clearly restrict use of chokeholds and neck restraints. The Justice Department will prosecute officials who violate the civil rights of people held in our jails and prisons by using excessive or deadly force.”
“Clark’s conduct in abusing a handcuffed inmate by strangling her is reprehensible,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Thankfully, Clark’s actions do not reflect the diligence and seriousness with which the majority of detention officers fulfill their roles each day in helping to secure our jails and protect the welfare of detainees.”
“By violating his sworn oath as a detention officer to protect people, Clark betrayed every honest, hardworking officer, and crossed the line to criminal behavior,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “Let this plea be a reminder that the abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”
According to court documents, the victim was arrested by officers of the Alpharetta, Georgia, Police Department and brought to the Fulton County North Annex Jail, where Clark was working as a detention officer. While the victim was being booked into the jail, Clark placed his hands around her neck and choked her until she lost consciousness. At the time that Clark choked the victim, the victim was handcuffed and posed no threat to officers or anyone else. As Clark was aware, Fulton County Sheriff’s Office policy prohibited officers from using chokeholds and neck restraints except in response to an imminent threat of death or serious bodily injury.
A sentencing hearing will be scheduled at a later date. Clark faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Atlanta Field Office and the Fulton County Sheriff’s Office’s Office of Professional Standards investigated the case.
Assistant U.S. Attorney Bret Hobson for the Northern District of Georgia and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
Former D.C. Corrections Officer Pleads Guilty to Federal Civil Rights Violation for Assaulting a Handcuffed InmateRead the Press Release
WASHINGTON – A former District of Columbia Department of Corrections Officer, Marcus Bias, 27, pleaded guilty today in federal court to one count of deprivation of rights under color of law. The plea was announced by U.S. Attorney Matthew M. Graves, FBI Assistant Director in Charge David Sundberg of the Washington Field Office, and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
“Corrections officers, like any other member of law enforcement, are sworn to protect the people in their custody,” said U.S. Attorney Graves. “Officer Bias violated this oath and the Constitution when he pushed the head of a handcuffed inmate in his care into a metal doorframe, causing substantial injuries to the inmate. Such abuses of power will not be tolerated and this Office, along with our federal partners, will investigate and charge any member of law enforcement who deprives a citizen of their civil rights.”
“When corrections officers carry out acts of violence against those who are entrusted to their care, they will be held accountable,” said Assistant Attorney General Clarke. “The Justice Department will continue to prosecute those who abuse their authority, while standing up for the civil rights of the victims of these crimes.”
“One of the FBI’s core missions is to protect the civil rights of every person within the United States,” said Assistant Director in Charge Sundberg. “Law enforcement officers are given authority and responsibility, but if they abuse that power, they will be held accountable for those actions. Today’s plea is an example of the FBI and our partners at the D.C. Department of Corrections working together to ensure that no one is above the law and that justice is served.”
According to court documents, Bias pushed a handcuffed detainee’s head into a metal doorframe while escorting him within the Department of Corrections on June 12, 2019, resulting in injury to the detainee, J.W. Specifically, intentionally and without provocation, Bias, who was holding J.W., pushed J.W.’s head into the doorframe while J.W. was handcuffed behind his back, suffering from the effects of O.C. spray, surrounded by five other officers and compliant with transport. J.W. sustained significant injuries, which required outside emergency medical attention.
A sentencing hearing is scheduled for June 28, 2024. Bias faces a maximum penalty of 10 years in prison, three years of supervised release, and a fine of up to $250,000. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office investigated the case.
Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section, Rebekah J. Bailey, formerly a Trial Attorney with the Criminal Section and Assistant U.S. Attorney Michael Truscott for the District of Columbia are prosecuting the case.
Former D.C. Corrections Officer Pleads Guilty to Federal Civil Rights Violation for Assaulting a Handcuffed InmateRead the Press Release
A former District of Columbia Department of Corrections Officer, Marcus Bias, 27, pleaded guilty today to one count of deprivation of rights under color of law.
“People held inside our jails and prisons should never be subject to the kind of violent and unjustified assault that was carried out by this corrections officer,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant violently rammed an inmate’s head into a metal doorframe while he was handcuffed and posed no threat. When jail officials violate their oath and betray the trust placed in them by abusing people in their custody, the Justice Department will investigate and prosecute these offenses and will stand up for the civil rights of the victims of these crimes.”
“Corrections officers, like any other member of law enforcement, are sworn to protect the people in their custody,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Officer Bias violated this oath and the Constitution when he pushed the head of a handcuffed inmate in his care into a metal doorframe, causing substantial injuries to the inmate. Such abuses of power will not be tolerated and this office, along with our federal partners, will investigate and charge any member of law enforcement who deprives a citizen of their civil rights.”
“The defendant, a former corrections officer, pushed a handcuffed inmate’s head into a metal doorframe, causing significant physical and emotional distress,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Today’s guilty plea is another example of prison officials who have been held accountable for civil rights violations, and the FBI remains committed to protecting the dignity and civil rights of individuals in custody. We will continue to investigate violations under color of law and work with our partners to hold responsible anyone who commits these crimes.”
“One of the FBI’s core missions is to protect the civil rights of every person within the United States,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Law enforcement officers are given authority and responsibility, but if they abuse that power, they will be held accountable for those actions. Today’s plea is an example of the FBI and our partners at the D.C. Department of Corrections working together to ensure that no one is above the law and that justice is served.”
According to court documents, Bias, intentionally and without provocation, pushed a detainee’s head into a metal doorframe while escorting him within the Department of Corrections on June 12, 2019, causing serious injuries. At the time, the detainee, J.W., had his hands handcuffed behind his back, was suffering from the effects of O.C. spray, was surrounded by five other officers and was not resisting. J.W.’s injuries required outside emergency medical attention.
A sentencing hearing is scheduled for June 28. Bias faces a maximum penalty of 10 years in prison, three years of supervised release and a fine of up to $250,000. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office investigated the case.
Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section, Rebekah J. Bailey, formerly a Trial Attorney with the Criminal Section and Assistant U.S. Attorney Michael Truscott for the District of Columbia are prosecuting the case.
Five Arrested in South Texas for Allegedly Trafficking Military Grade Firearms to Mexican Drug CartelRead the Press Release
Five individuals were arrested in Laredo, Hebbronville, and Falls City, Texas, last week for allegedly trafficking military grade firearms to a drug cartel in Mexico.
According to court documents, Gerardo Rafael Perez Jr., also known as Jerry, 23, of Laredo, allegedly coordinated the acquisition of more than 100 firearms throughout Texas to be smuggled across the international border and delivered to a drug trafficking cartel in Nuevo Laredo, Tamaulipas, Mexico. Perez’s organization allegedly used straw purchasers, including co-defendants Francisco Alejandro Benavides, also known as Frankie, 23, and Mark Anthony Trevino Jr., 24, to procure the firearms from a variety of sources in the Western, Southern, and Northern Districts of Texas. Court documents allege that the organization would acquire guns from unlicensed dealers of firearms, or from federal firearm licensees, where straw purchasers would make false representations to secure the firearms.
“Stopping the trafficking of high-caliber and military grade firearms to Mexico is a top priority for the Justice Department — and especially the ATF and HSI agents and Department prosecutors that lead Operation Southbound,” said Deputy Attorney General Lisa Monaco. “Working with our Mexican partners, we will disrupt and dismantle the drug cartels responsible for so much destruction in both nations, and as demonstrated by these charges, we will bring to justice the alleged firearms traffickers who would arm those cartels.”
“Preventing firearms from getting into the black market is one of ATF’s top priorities,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “When guns are diverted to unlawful markets in Mexico, they are often going to arm dangerous drug cartels. ATF will continue to work with all our partners, like those at HSI and the U.S. Attorney’s Office, to bring important cases like this and hold gun traffickers accountable.”
“The successful outcome of these arrests is a direct result of the steadfast efforts of HSI and our federal partner to prevent firearms from falling into the hands of transnational criminal organizations that pose a threat to public safety both here and abroad,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “These arrests send a strong message to weapons traffickers that law enforcement will work aggressively with our federal law enforcement partners to combat this egregious and dangerous criminal activity.”
Luis Matias Leal also known as Wicho, Poncho, and El Tio, 30, allegedly provided cash and instructions to facilitate the conspiracy, while Antonio Osiel Casarez, 26, would smuggle the firearms into Mexico and return to the United States with bulk cash.
The high-powered firearms allegedly acquired by Perez’s organization included FNH SCAR rifles, Barrett .50 caliber rifles, FNH M294S rifles, and M1919 rifles.
Perez, Casarez, Leal, Benavides, and Trevino were all named in a superseding indictment filed March 6. They were arrested March 20.
The five new defendants are all charged with one count of conspiracy to traffic firearms, which carries a maximum penalty of 15 years in prison, and one count of conspiracy to straw purchase firearms, which carries a maximum penalty of 25 years in prison.
Perez, Casarez, Leal, and Benavides are further charged with one count of conspiracy to smuggle goods from the United States, which carries a maximum penalty of five years in prison, and one count of conspiracy to possess firearms in furtherance of a drug trafficking crime, which carries a maximum penalty of 20 years in prison. Perez faces two additional firearms trafficking charges. Leal, Benavides, and Trevino are also charged with falsifying information when buying a firearm, which carries a maximum penalty of 10 years in prison; and an additional count of straw purchasing. All of the charges also carry a fine up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendants Jose Emigdio Q. Mendoza, Gerardo Antonio Ibarra Jr., and Gerardo Corona Jr. were initially named in an earlier indictment. Mendoza was allegedly engaged in the business of dealing firearms without a license, selling military-grade weapons to members of the Perez conspiracy. Ibarra and Corona were allegedly straw purchasers for the organization.
Several of the defendants are alleged to have contacted Mendoza to purchase the firearms, including SCAR rifles, Barrett .50 caliber rifles, and M249 rifles. Mendoza is alleged to have sold at least 22 such firearms to his co-conspirators from December 2022 to March 2023 and received approximately $169,900.00, at a markup from the retail price of the guns so he could derive a profit for himself.
Mendoza was arrested in San Antonio on March 11, 2023. Ibarra and Corona were arrested in September and October 2023, respectively.
Deputy Attorney General Monaco, ATF Director Dettelbach, HSI Executive Director Berger, and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
ATF and HSI are investigating the case.
Assistant U.S. Attorney William Calve for the Western District of Texas is 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.
Final of Four Teens Pleads Guilty to Charge in St. Louis County Cab Driver’s MurderRead the Press Release
ST. LOUIS – The final of four defendants from St. Louis County, Missouri charged in connection with the fatal shooting of a cab driver in Hazelwood in 2022 pleaded guilty Tuesday.
Tywon Harris, 20, pleaded guilty in U.S. District Court in St. Louis to one count of aiding and abetting in the commission of a murder.
Coron Dees, now 20, pleaded guilty in April 2023 to a robbery charge. Jeremiah Allen, 20, and Trishawn Jones, 19, pleaded guilty in August to the same robbery charge. Jones also pleaded guilty to one count of aiding and abetting in the commission of a murder.
In their plea agreements, all four admitted involvement in the robbery of Dewight Price, 54. Harris instigated the robbery. Dees and Jones robbed Price at gunpoint, while Allen taunted and threatened Price during the robbery. Jones fired the fatal shot when he perceived Price to be a threat to their escape. Jones was 17 and the others were 18 at the time of the murder.
On April 24, 2022, after leaving a party in downtown St. Louis, the four teens stopped at a gas station in the 700 block of North Tucker Boulevard. Harris and Jones were each armed with semiautomatic handguns, but Harris gave his gun to Dees to carry in his cross-body bag on the walk to the gas station.
At 5:23 a.m., Harris called for a taxi ride home. The four planned to take the taxi to a fake address near Allen’s home, then run away without paying the fare. After learning that they would have to prepay for the ride, the teens began discussing plans to rob Price.
They redirected Price to Hazelwood Central High School, where they thought there would be no witnesses. Allen denied being part of the planning but admitted he knew that a robbery was going to take place. All four teens knew Jones and Dees were armed.
When they arrived, Dees and Jones pulled out their firearms and demanded cash from Price. Price begged the teens not to shoot him. A laughing Allen, who was in the front seat, told Price not to move and said, “You got two 40s to your head,” referencing a popular firearm caliber. Price held up his hands and handed cash to Jones. Price then grabbed a firearm he kept in his door. Allen warned the three others that Price had a gun. Price began to get out of the cab, but Harris opened his door, knocking Price to the ground.
Jones saw Price’s firearm and fired once, hitting Price in the torso. None of the teens stopped to help Price. As they ran away, Price fired his own gun multiple times, but did not strike any of them.
Although Harris claims Price fired the first shot, neither the inside or outside of the taxi nor any of the defendants was struck by gunfire. Any shot fired by Price would likely have struck his attackers or the vehicle. Investigators believe Price did not begin firing until after he was mortally wounded, the plea agreements say.
The teens then ran along a wooded path to Allen’s neighborhood, tossing their jackets into a creek and putting on face masks.
Police arrived to find Price dead. That afternoon, the investigation led them to Allen’s house. Allen, Jones, and Harris hid Harris’s .22-caliber Glock 44 handgun and clothing they wore during the shooting above the drop ceiling in Allen’s basement. Police surrounded the house and members of Allen’s family voluntarily left. Police then entered the residence and called for Allen, Harris and Jones to surrender. Allen and Jones left the basement and surrendered. Harris attempted to hide. Police found Harris during a sweep of the basement and then found the gun and clothing. They later found Jones’ .40-caliber Ruger handgun, which he had hidden in a neighbor’s back yard wrapped in a pair of Dee’s jeans.
Dees and Allen are scheduled to be sentenced in April, Jones is set to be sentenced in May and Harris’ sentencing is scheduled for July. The robbery charge carries a potential penalty of up to 20 years in prison, a $250,00 fine or both. The aiding and abetting murder charge carries a potential penalty of up to life in prison and the same fine.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
Final Defendant in St. Louis Area Methamphetamine Ring Sentenced to 235 Months in PrisonRead the Press Release
ST. LOUIS– U.S. District Judge District Court Judge Ronnie L. White on Tuesday sentenced the final defendant in a methamphetamine distribution ring to 235 months in prison.
Dedrick Deshon Jordan, who was sentenced Tuesday, is one of 15 defendants who pleaded guilty in the case.
Jordan, 35, and his co-defendants Terry James Williams, 37, Clifford Dwight Davis Jr., 43, and Maria D. Flores-Cervantes, 36, were connected to the source of supply in the Los Angeles area, plea agreements say. Jordan and Joseph Robert Holliman, 49, were primarily responsible for arranging the supply of meth, which was sent through the mail or brought to the St. Louis area by couriers. Brendon Darnell Thomas, 47, at times supplied the drug to street-level dealers, plea agreements say. Thomas, Holliman and Jordan each had a residence that they used to receive and store drugs and cash proceeds from drug sales.
The investigation was primarily conducted by the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Postal Inspection Service and the Jefferson County Municipal Enforcement Group. More than 15 kilograms of meth were seized during an investigation that began in January 2019. A total of about 1.3 kilograms of nearly pure meth and 8.9 kilograms of marijuana was intercepted by the U.S. Postal Inspection Service on two occasions in 2020. On April 18, 2020, Davis and Flores-Cervantes were stopped in Phelps County, Missouri in an SUV equipped with a hidden compartment containing a loaded handgun, nearly 12 kilograms of meth and 47.8 grams of heroin.
On June 18, 2020, investigators conducted court-approved searches of the homes of Thomas, Jordan and Holliman. They found $129,776 in cash, 190 grams of meth and a digital scale at Jordan’s residence. At Holliman's residence, they found vacuum-sealed bags of marijuana, electronic scales, ammunition, three firearms and 4.3 grams of meth. At Thomas' residence, they found three firearms, clear plastic bags containing marijuana, a money counter and $17,520 cash.
Thomas was sentenced to 210 months in prison. Holliman received 84 months. Williams was sentenced to 120 months and Davis received 45 months.
The DEA, HSI, U.S. Postal Inspection Service, the U.S. Marshals Service, the Jefferson County Sheriff’s Department, the St. Charles City and County Police, the Phelps County Sheriff’s Department, the Arnold Police Department and the Normandy Police Department investigated the case. Assistant U.S. Attorney Paul D’Agrosa prosecuted the case.
Federal Grand Jury in Louisville Returns 3 Indictments Charging 14 DefendantsRead the Press Release
Louisville, KY – On March 5, 2024, a federal grand jury in Louisville charged 14 Louisville and California residents in three indictments involving fentanyl, methamphetamine, cocaine, and heroin trafficking and firearms and money laundering offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Erek Davadowich of the Drug Enforcement Administration Louisville Division Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Rana Saoud of Homeland Security Investigations Nashville, Acting Special Agent in Karen Wingerd of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to the first indictment, Carl Delph, 53, of California, and Anyelle Curtley, Sr., 47, Anyelle Curtley, Jr., 26, Adrian Richie, 35, Joseph Cousins, 39, Alandro O’Neal, 50, Jeroy Boyd, 44, Ameer Ellis, 45, Paul Butler, Jr., 35, and Susan Jenkins, 41, all of Louisville, are charged with conspiracy to possess with intent to distribute controlled substances. Beginning as early as May 9, 2023, and continuing through February 21, 2024, the defendants conspired to possess with the intent to distribute and distributed over 50 grams of methamphetamine, over 400 grams of fentanyl, and over 500 grams of cocaine.
Delph and Curtley, Sr. are also charged with a money laundering conspiracy.
Delph is also charged with distributing over 500 grams of cocaine and distributing over 400 grams of fentanyl.
Curtley, Sr. is also charged with distributing methamphetamine, cocaine, and fentanyl, attempting to possess with the intent to distribute cocaine and fentanyl, possessing with the intent to distribute fentanyl, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. On December 28, 2023, Curtley, Sr., possessed a Glock, model 27, .40 caliber handgun. Curtley, Sr. was prohibited from possessing a firearm because he had previously been convicted the following felony offense.
On May 19, 2010, in the United States District Court for the Western District of Kentucky, Curtley, Sr. was convicted of possession with intent to distribute cocaine and possession of a firearm by a convicted felon.
Curtley, Jr. is also charged with distributing fentanyl and cocaine.
Richie and Cousins are also charged with distributing fentanyl.
O’Neal, Ellis, and Jenkins are also charged with distributing methamphetamine.
Boyd is also charged with distributing cocaine.
Butler, Jr. is also charged with distributing methamphetamine and fentanyl.
According to the second indictment, Phillip King, Sr., 49, of California, and Norton Hazard, 55, of Louisville, are charged with conspiracy to distribute controlled substances. Beginning as early as March 24, 2022, and continuing through February 21, 2024, the defendants conspired to possess with the intent to distribute and distributed 500 grams or more of methamphetamine and 5 kilograms or more of cocaine.
According to the third indictment, Christopher Curtley, 50, and Antoyne Penick, 47, both of Louisville, are charged with conspiracy to possess with intent to distribute controlled substances. Beginning as early as January 9, 2024, and continuing through February 29, 2024, the defendants conspired to distribute methamphetamine, fentanyl, and heroin.
Christopher Curtley is also charged with distributing fentanyl and methamphetamine.
Penick is also charged with distributing fentanyl, methamphetamine, and heroin. Penick is also charged with possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. On January 24, 2024, Penick possessed a Heritage Manufacturing Inc., Model Rough Rider, .22 caliber revolver. Penick was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On September 27, 2017, in Jefferson Circuit Court, Penick was convicted of flagrant non-support.
On October 19, 2015, in Clark Circuit Court, Clark County, Indiana, Penick was convicted of theft.
On November 1, 2010, in Clark Superior Court, Clark County, Indiana, Penick was convicted of theft, robbery (two counts), and dealing in marijuana.
All defendants except King, Sr. have been arrested and made their initial court appearances over the last two weeks before U.S. Magistrate Judges of the U.S. District Court for the Western District of Kentucky and the Southern District of California. King, Sr. has not yet been arrested and is a wanted fugitive. If convicted, the defendants each face mandatory minimum sentences ranging from 10 to 15 years, and all face a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The cases are being investigated by the DEA, HSI, ATF, IRS-CI, and the Louisville Metro Police Department, with assistance from the Kentucky State Police.
Assistant U.S. Attorneys Frank Dahl and Josh Porter are prosecuting the cases.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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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Current and Former Minor League Baseball Players Indicted for Insider Trading in Del Taco StocksRead the Press Release
NEWS RELEASE SUMMARY – March 26, 2024
SAN DIEGO – An indictment was unsealed today charging current and former minor league baseball players Jordan Qsar, Grant Witherspoon and Austin Bernard with insider trading in Del Taco, Inc. stocks after they received advanced notice of the acquisition of Del Taco by Jack in the Box, Inc. on December 6, 2021.
According to the indictment, Qsar learned from a close friend who worked at Jack in the Box that the company was acquiring Del Taco. The friend was a senior associate in Jack in the Box’s strategic finance department who personally worked on the acquisition project. The disclosure was a violation of duties to Jack in the Box and its shareholders.
The indictment states that Qsar fraudulently shared the inside information with Witherspoon and Bernard, who were connected to Qsar through collegiate and minor league baseball teams at Pepperdine University and the Tampa Bay Rays.
In the following months, after learning the inside information, Qsar, Witherspoon, and Bernard purchased Del Taco stocks, discussed when and how many shares they were purchasing, and tipped others with the inside information.
According to the indictment, after Jack in the Box and Del Taco went public with the acquisition on December 6, 2021, Del Taco stocks jumped in price from $7.53 to $12.51 per share—representing a 66 percent increase from the prior trading day’s closing price. In the days following, Qsar, Witherspoon, and Bernard sold all their Del Taco stocks, earning them illegal profits of approximately $56,000, $41,800, and $64,600, respectively.
“The system has to be fair for everyone, or the market fails,” said U.S. Attorney Tara McGrath. “Those who seek to undermine this system for personal gain will face consequences.”
“Insider trading directly affects the integrity of our economy,” said FBI San Diego Special Agent in Charge Stacey Moy. “We will continue to work with our federal, state, and local law enforcement partners to ensure people who intentionally undermine and threaten our economy will be brought to justice.”
This case is being prosecuted by Assistant U.S. Attorney Ronald Sou.
DEFENDANTS Case Number: 24-CR-0385-DMS
Jordan Joseph Qsar Age: 28
Grant Lee Witherspoon Age: 27
Austin Lane Bernard Age: 28
SUMMARY OF CHARGES
Title 18 U.S.C. 371 – Conspiracy
Maximum Penalty: Five years in prison; $250,000 fine
Title 15 U.S.C. 78j(b), 78ff & Title 17 C.F.R. 240.10b-5 and 240.10b5-1 – Securities Fraud
Maximum Penalty: Twenty years in prison; $5 million fine
Title 18 USC 1343 – Wire Fraud & Title 18 USC 2 – Aiding and Abetting
Maximum Penalty: Twenty years in prison; $250,000 fine
Title 18 USC 981(a)(1)(C) and Title 28 USC 2461(c) – Criminal Forfeiture
INVESTIGATING AGENCY
Federal Bureau Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Columbia Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
COLUMBIA, S.C. — Jasper Orlando Sumpter, 36, of Gadsden, was sentenced to more than four years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.
Evidence presented to the court showed that on the evening of Sept. 16, 2020, deputies with the Richland County Sheriff’s Department (RCSD) were dispatched to a residential neighborhood off Shop Road in Columbia, in reference to a shooting. While enroute, a deputy observed a Dodge Challenger, driven by Sumpter, parked in the roadway. The deputy attempted to approach the vehicle to conduct a welfare check when Sumpter sped off and led law enforcement on a high-speed chase down Shop Road. During the pursuit, the driver drove at speeds more than 90 MPH before crashing in a ditch and attempting to run from the vehicle.
Sumpter was subsequently arrested, and deputies determined the vehicle was stolen out of Virginia. During the search of the vehicle law enforcement located a .40 caliber pistol on the passenger floorboard and a 9mm pistol on the ground near the driver’s side door. Sumpter was the sole occupant of the vehicle.
While Sumpter was in custody, other RCSD deputies responded to the scene of the shooting and collected a mixture of 9mm and .40 caliber shell casings found directly in front of the residence and submitted them for NIBIN testing. The testing revealed the shell casings recovered from the scene of the shooting were linked to both firearms in Sumpter’s possession. Surveillance footage from the neighborhood, showed Sumpter leaving the scene of the shooting at a high rate of speed around the time the initial calls were made in reference to the shooting.
Sumpter is prohibited from possessing firearms and ammunition based upon his prior felony convictions. Sumpter has prior convictions for unlawful carrying of a pistol, criminal domestic violence, simple assault and battery, driving under suspension, two convictions for being a habitual traffic offender, and obtaining prescription drugs by fraud.
United States District Judge Sherri A. Lydon sentenced Sumpter to 50 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney Ariyana N. Gore is prosecuting the case.
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Ciudadano de las Bahamas imputado y aprehendido por su papel en una asociación delictiva mortal de contrabandeo de personasRead the Press Release
MIAMI – Hoy se dio a conocer una acusación formal en el Distrito Sur de Florida en la que se imputa a un ciudadano de las Bahamas por su presunto papel en una asociación delictiva de contrabandeo de personas que resultó en la muerte de numerosos migrantes.
Gracias a una labor de amplia coordinación y cooperación entre las autoridades estadounidenses y bahameñas, Vandrick Nelson Smith, también conocido como Muggy y Vans, de 33 años, fue aprehendido en las Bahamas el 6 de marzo último en virtud de una solicitud de los Estados Unidos que involucraba cargos presentados bajo sello en el Distrito Sur de Florida en noviembre de 2023.
Según documentos judiciales, Smith presuntamente estaba involucrado en una organización de contrabandeo de personas que hacía la tentativa de traer migrantes ilegalmente de las Bahamas a los Estados Unidos en barco. Los migrantes eran ciudadanos de Colombia, Jamaica, República Dominicana y Haití, entre otros países. Presuntamente, los migrantes (o sus familiares y amigos) pagaron dinero a la organización para que los ingresase de contrabando a los Estados Unidos. Como se describe a continuación, la acusación formal alega que Smith estuvo involucrado personalmente en tres incidentes de contrabandeo de personas por vía marítima, incluido uno que resultó en cinco muertes.
“Las operaciones de contrabandeo de personas ponen en riesgo la vida de las personas por obtener ganancias económicas”, indicó el fiscal federal Markenzy Lapointe del Distrito Sur de Florida. “Los contrabandistas de personas toman ventaja de las esperanzas de tener una vida mejor de los migrantes. Trágicamente, las hazañas de los contrabandistas representan un grave peligro para los migrantes. La Fiscalía de los Estados Unidos continuará trabajando con nuestros socios para enjuiciar a quienes llevan a cabo operaciones ilícitas de contrabandeo de personas para proteger a los migrantes vulnerables y salvar vidas”.
“Vandrick Smith ha sido imputado de organizar peligrosas operaciones de contrabandeo de personas, enviando migrantes por barco de las Bahamas a Florida. Como se alega en la acusación formal, las operaciones de la organización de contrabandeo de personas se volvieron mortales cuando un bote que transportaba migrantes zozobró en enero de 2022”, señaló la fiscal auxiliar principal Nicole M. Argentieri, jefa de la División Penal del Departamento de Justicia. “Los contrabandistas de personas explotan por dinero a la gente desesperada, y las consecuencias pueden ser trágicas. La División Penal está comprometida a combatir a las organizaciones de contrabandeo de personas que se aprovechan y ponen en peligro a los migrantes vulnerables, dondequiera que operen”.
Presuntamente, Smith estuvo involucrado en tres operaciones de contrabandeo de personas por vía marítima que ocurrieron alrededor del 6 de marzo de 2021, el 22 de enero de 2022 y el 8 de agosto de 2022. La acusación formal imputa que la noche del 22 de enero de 2022, numerosos migrantes abordaron una embarcación en las Bahamas con destino a Florida. Poco después del zarpe de la embarcación, supuestamente, los motores dejaron de funcionar y la embarcación zozobró. El 25 de enero de 2022, los Guardacostas de EE. UU. rescataron al único migrante sobreviviente, que se encontraba aferrado a la parte superior de la embarcación volcada.
“La Oficina de Investigaciones de Seguridad Nacional (HSI, por sus siglas en inglés) sigue dedicada a colaborar con nuestros socios nacionales e internacionales para llevar ante la justicia a delincuentes temerarios que priorizan las ganancias económicas sobre la vida y la seguridad de las personas”, dijo el agente especial a cargo Anthony Salisbury de Investigaciones de Seguridad Nacional (HSI) Miami. “Los riesgos asociados con las operaciones de contrabandeo marítimo de personas son extremos. Instamos al público a evitar aventurarse en estos viajes con organizaciones criminales peligrosas, que a menudo resultan en tragedias”.
A Smith se le imputan cinco cargos de tentativa de traer extranjeros a los Estados Unidos causando su muerte como resultado de la operación de enero de 2022. También se le imputa de asociación delictiva para traer extranjeros a los Estados Unidos con fines de lucro, poniendo en peligro la vida de los extranjeros y causando su muerte; tentativa de traer extranjeros a los Estados Unidos con fines de lucro; y de ayudar e instigar a ciertos extranjeros a ingresar a los Estados Unidos. Si se le declara culpable de tentativa de traer extranjeros a los Estados Unidos causando su muerte, Smith se enfrenta a una pena máxima de cadena perpetua.
HSI Fort Pierce y el Agregado Auxiliar de HSI en Nassau, Bahamas, investigaron el caso, con la asistencia de HSI Miami, los Guardacostas de EE. UU., la Oficina del Alguacil del Condado de Brevard y la Oficina del Médico Forense del Condado de Brevard. La Oficina de Asuntos Internacionales del Departamento de Justicia ofreció apoyo significativo con las solicitudes de asistencia jurídica extranjera y el logro de la aprehensión. El Departamento de Justicia agradece a la Real Fuerza de Policía de Bahamas, la Fiscalía de Bahamas, el Ministerio de Relaciones Exteriores de Bahamas, el Departamento de Inmigración de Bahamas y el Departamento de Procesamientos Judiciales Públicos de Bahamas por su asistencia en el caso.
La investigación se está llevando a cabo conforme al programa de Fuerza de Ataque de Viajes Delictivos Extraterritoriales (ECT, por sus siglas en inglés), una asociación conjunta entre la División Penal del Departamento de Justicia y HSI. El programa ECT se centra en las redes de contrabandeo de personas que pueden presentar riesgos especiales para la seguridad nacional o la seguridad pública, o que representan serias preocupaciones humanitarias. El ECT tiene recursos dedicados a la investigación, inteligencia y procesamiento judiciales. El ECT coordina y recibe asistencia de otras agencias del gobierno de los EE. UU. y de autoridades del orden público extranjeras.
La abogada litigante Marie Zisa de la Sección de Derechos Humanos y Procesamientos Judiciales Especiales de la División Penal y el fiscal auxiliar Justin Hoover del Distrito Sur de Florida están procesando el caso.
Una acusación formal es meramente una alegación. Se presume que todos los acusados son inocentes hasta que ante un tribunal de justicia se demuestre su culpabilidad más allá de toda duda razonable.
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