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2 May 2024
Billings man admits attempted sex trafficking of minor girlRead the Press Release
BILLINGS — A Billings man today admitted to a sex trafficking crime after he was accused of offering to provide a minor girl alcohol in exchange for sex, U.S. Attorney Jesse Laslovich said.
The defendant, Joshua Allen Morgan, 40, pleaded guilty to attempted sex trafficking of a minor. Morgan faces a mandatory minimum of 10 years in prison, a $250,000 fine and five years to a lifetime of supervised release. Under the terms of a plea agreement, the parties agree that a sentence of no less than 15 years in prison is appropriate.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Morgan was detained pending further proceedings.
The government alleged in court documents that in March 2023, following Morgan’s arrest on other charges, law enforcement served a search warrant on his phone. Law enforcement found Facebook communications between Morgan and a juvenile girl, identified as Jane Doe. In an interview with law enforcement, Doe disclosed that she had met Morgan when she was 15 or 16 after he began sending her messages on Facebook. Morgan provided Doe with alcohol, and they spent time together. During this period, Moran sexually assaulted Doe at his residence. In March 2023, Morgan and Doe began corresponding again and discussions involved Morgan providing Doe with alcohol in exchange for sexual conduct. Doe informed Morgan she was a juvenile, and Morgan instructed her not to disclose their relationship to anyone. Doe and Morgan did meet, but Doe left prior to engaging in sexual conduct with Morgan.
Assistant U.S. Attorneys Zeno B. Baucus and Jacob A. Yerger are prosecuting the case. The FBI and Montana Division of Criminal Investigation conducted the investigation.
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.
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Billings felon sentenced to five years in prison for illegal possession of four stolen firearmsRead the Press Release
BILLINGS — A Billings felon who admitted to illegally possessing four firearms, all stolen, was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Armondo Anthony Ronquillo, 37, pleaded guilty in January to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in January 2023, law enforcement served a search warrant on Ronquillo’s residence and located three handguns, 100 rounds of ammunition, meth, fentanyl pills and $546 in cash. Ronquillo admitted to selling drugs and trading them for firearms. In March 2023, Ronquillo was the front seat passenger in a vehicle stopped by law enforcement. Ronquillo had a fanny pack that contained a pistol and 10 rounds of ammunition. All four firearms in Ronquillo’s possession had been stolen. Ronquillo was prohibited from possessing firearms because of previous felony conviction in Montana.
Assistant U.S. Attorney Karla. E. Painter prosecuted the case. The Billings Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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62 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Arecibo, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On April 24, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging 62 violent gang members from the municipality of Arecibo with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. This investigation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Puerto Rico Police Bureau (PRPB), Arecibo Strike Force, and the Drug Enforcement Administration (DEA), with the collaboration of the Federal Bureau of Investigation (FBI), the U.S. Marshals Service, the Bayamón Municipal Police, the U.S. Department of Housing and Urban Development (HUD), the Puerto Rico Public Housing Authority, and the Puerto Rico Department of Corrections and Rehabilitation.
“Thanks to the work of the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), FBI, U.S. Marshals Service (USMS), and our state and local partners, more than 60 alleged gang members and over $72 million in drugs have been seized in this operation,” said Attorney General Merrick B. Garland. “The residents of public housing projects deserve better than to be terrorized by violent drug trafficking gangs, and the Justice Department will be relentless in our efforts to dismantle the gangs that fuel violent crime and profit from poisoning our communities.”
“The arrests in this case underscore the resolve of the U.S. Attorney’s Office and its law enforcement partners to uphold the rule of law and bring to justice violent criminals who threaten our communities,” said U.S. Attorney Muldrow. “The Department of Justice remains steadfast in its commitment to dismantle criminal organizations, hold gang members accountable, and pursue justice for victims.”
“The allegations in today’s indictments tell a scary story about gang violence in these public housing communities,” said ATF Director Steven Dettelbach. “For all the innocent residents who are trying to raise healthy families in safe communities, law enforcement wants you to know that we are here for you. Living in public housing cannot, and should not, mean being subjected to an atmosphere of gun violence and drug dealing around you and your family. ATF’s number one priority is getting the worst criminals – the trigger pullers and drug dealers - off the streets. When rival gangs declare war on each other in the streets in any city, it is the innocent bystanders that suffer the greatest consequences. I want to commend all the ATF agents and our federal and local partners who worked tirelessly to make Arecibo and all of Puerto Rico a safer place.”
“Through the relentless collaboration, between the DEA, ATF, state and federal partners have dealt significant blows to the violent drug trafficking organizations operating within the El Cotto public housing project,” stated DEA Special Agent in Charge Denise Foster. “With over $72 million in street value narcotics seized and over 40 arrests made, our joint efforts underscore our unwavering commitment to dismantling criminal enterprises and safeguarding our communities.”
The indictment alleges that from 2014 through the present, the defendants worked as part of a drug trafficking organization (“DTO”) that distributed illegal drugs for significant financial gain and profit -- including cocaine base (commonly known as “crack”), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet), Alprazolam (commonly known as Xanax), Clonazepam (commonly known as Klonopin), and Tramadol – all within 1,000 feet of the Ramón Marín Solá Public Housing Project (“PHP”), the Trina Padilla de Sanz PHP, the Manuel Zeno Gandía PHP, the Bella Vista PHP, and La Meseta PHP, all five facilities owned by a public housing authority and collectively referred to as “El Cotto.” The charging documents further allege that the leaders of the DTO that operates within the five PHPs comprising El Cotto met regularly to discuss drug trafficking activities and prevent issues between the members of the organization. The goal of the DTO was to maintain control of the drug trafficking activities within their territory by the use of force, threats, violence, and intimidation.
The defendants acted in different roles to further the goals of the drug trafficking conspiracy, including acting as leaders, enforcers, runners, sellers, and facilitators. The defendants charged in the indictment are:
[1] Melquisedec Navarro-Lorenzo, a.k.a. “Melqui/La M”
[2] Joel Caraballo-López, a.k.a. “Flaqui”
[3] Luis Amezquita-Lorenzo, a.k.a. “Berto/Bethoven”
[4] Reinaldo Ortiz-González, a.k.a. “Chiqui/Compi Rey/Rajao/Viejo”
[5] Alex Montalvo-Novoa, a.k.a. “Alex Chiquito”
[6] Jonathan Joel Franco-Mercado, a.k.a. “Gancho”
[7] Ivan Acosta-Rodríguez, a.k.a. “Luis Ivan Acosta Rodríguez/Luis Ivan Santiago Pérez/Ivan El Negro/Billy The Kid/Wakala”
[8] Albert De Jesús-Schelmety, a.k.a. “Macu/Macuco”
[9] Renso Marcial-Rodríguez
[10] Josué Cedeño-Feliciano, a.k.a. “Camboya”
[11] César Cardona-Mena, a.k.a. “Chivas”
[12] Lydia M. Pagán-Arocho, a.k.a. “Tata”
[13] Luis Méndez-Medina, a.k.a. “Tommy El Gago/Tommy El Loco”
[14] Jonathan Robles-Maldonado, a.k.a. “Paramédico/Jonathan Paramédico”
[15] Joseph Sanabria-Alequin, a.k.a. “Pitbull”
[16] Yefrain Molina-Viruet, a.k.a. “Harry Potter”
[17] Erick Juarbe-Rodríguez, a.k.a. “Erico”
[18] Ramón Colón-Crespo, a.k.a. “Papito”
[19] Jonathan Feliciano-Torres, a.k.a. “Duende”
[20] Abdiel Yadiel Carrión-Rosado, a.k.a. “Gemelo”
[21] Yadiel Abdiel Carrión-Rosado, a.k.a. “Gemelo”
[22] Emmanuel Pérez-Rodríguez, a.k.a. “Manny/Manes/El Duraco Del Castillo”
[23] Obrian D. Mercado-Rivera
[24] Ashley J. Rodríguez-Pérez, a.k.a. “Chal/Char”
[25] Jimar I. Álvarez-Maldonado, a.k.a. “Gordo”
[26] Jimel J. Ortiz-Delgado, a.k.a. “Maiky/La Jota”
[27] Bryan Medina-Herrera, a.k.a. “Bryan Dialysis”
[28] Rafael Valle-Delgado, a.k.a. “Rafa Valle”
[29] Mitzuel Torres-Rivera
[30] Jan C. Cuevas-Correa
[31] Alexander Serrano-Colón, a.k.a. “Calle 13”
[32] Joselito Rodríguez-Álvarez, a.k.a. “Bombili”
[33] Ángel M. Felix-García, a.k.a. “Bully”
[34] Ángel Cortés-Soto, a.k.a. “Ángel el Bizco”
[35] Evans Y. Herrera-Quiñones, a.k.a. “El Enano”
[36] Luis O. Valentin-Rivera, a.k.a. “Luis Paramédico/Paramédico Valentin/Omar”
[37] Jesús D. Rodríguez-Martínez, a.k.a. “Spock/Danny”
[38] Héctor Y. Rodríguez-Miranda, a.k.a. “Negri/Negrito”
[39] Michael Jordan-Lugo, a.k.a. “Jordan/Goldo”
[40] Kenneth Medina-Velázquez, a.k.a. “Kenny”
[41] Edgardo J. Ríos-Santana, a.k.a. “Coco”
[42] Kelvin Hernández-Bonilla, a.k.a. “Yampi/Yapi”
[43] Carlos Rodríguez-Herrera, a.k.a. “Carlitos/Hermano de Brian Dialysis”
[44] Natanael Franco-Mercado, a.k.a. “Nata/Hermano de Gancho/Cirilo”
[45] Amisael Flores-Martínez, a.k.a. “Misa”
[46] Giovanni Molina-Viruet, a.k.a. “Giovannie/Giovanny”
[47] Alvin Y. Torres-Santiago, a.k.a. “Wisin/Yamil”
[48] Emmanuel Serrano-Feliciano, a.k.a. “Nana”
[49] Brandom L. Díaz-Navarro, a.k.a. “Brandon”
[50] Joshua Vargas-Feliciano, a.k.a. “Buda”
[51] Geovanell Mercado-Marrero, a.k.a. “Kiko”
[52] Jorge Cintrón-Cordero, a.k.a. “Ogui”
[53] Adonis J. Rosado-Serrano
[54] Jonathan Ayala-Torres, a.k.a. “Menor/Siete Pestes/Jon”
[55] José Santiago-Quiles, a.k.a. “Ewan”
[56] Liuzkany Rivera-Arroyo, a.k.a. “Kany/Luzkany”
[57] Adrián M. Lezca
[58] Kevin X. Pérez-Molina, a.k.a. “Chino”
[59] Jair X. Galarza, a.k.a. “Marciano”
[60] Shaquilomar Molina-Soto, a.k.a. “Shaquille”
[61] Israel Rivera-Rivera, a.k.a. “Gemelo”
[62] Dexie Marie Narpiel Nieves, a.k.a. “La Flaca/Depsi/Petunia”
Thirty-Six of the above-listed defendants also face one charge of possession of firearms in furtherance of a drug trafficking crime. Upon conviction, all defendants are subject to a narcotics forfeiture allegation of $72,868,600.
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort; Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares; and AUSAs Pedro R. Casablanca and R. Vance Eaton are in charge of the prosecution of the case. If convicted on the drug trafficking charges, the defendants face a minimum sentence of 10 years and up to life in prison. A conviction on the firearms charge carries a mandatory, minimum sentence of five years to life imprisonment, to be served consecutively to any sentence imposed on the drug trafficking charges.
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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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1 May 2024
Wheeling Man Gets 13 Years for COVID Fraud, Drug TraffickingRead the Press Release
WHEELING, WEST VIRGINIA – Anton Demetrius Matthews, age 40, of Wheeling, West Virginia, was sentenced to more than 13 years in prison for wire fraud, cocaine trafficking, and a supervised release violation.
According to United States Attorney William Ihlenfeld, Matthews obtained nearly $50,000 in CARES Act loans after misrepresenting his income and occupation while he was incarcerated. Matthews submitted a loan application in which he claimed to have established a food truck business in Wheeling in January 2019 even though he was in federal prison from November 2016 until October 2020. Following his release from prison in 2020, Matthews sold cocaine both inside and outside of the Third Alarm Bar on Wheeling Island in Ohio County.
“We have noticed an uptick in drug traffickers who are also engaging in white collar crime, committing acts such as COVID fraud or income tax fraud,” said U.S. Attorney Ihlenfeld. “Mr. Matthews is a good example of this trend, and he will pay a steep price for committing two serious, but very different, crimes.”
Matthews was ordered to pay $54,999 in restitution and a money judgment of $49,999. He will serve three years of supervised release following his prison sentence.
Assistant U.S. Attorneys Jennie Conklin and Carly Nogay prosecuted the cases on behalf of the government.
The investigations were conducted by the Federal Bureau of Investigation and the Ohio Valley Drug Task Force, a HIDTA-funded initiative.
U.S. District Judge John Preston Bailey presided.
Washington man sentenced to four years in prison for fentanyl trafficking in MissoulaRead the Press Release
MISSOULA — A Washington man who brought fentanyl pills to Missoula for distribution was sentenced today to four years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Dustin William Slaney, 44, of Tacoma, Washington, pleaded guilty in December 2023 to possession with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that law enforcement learned from sources that Slaney was a prolific drug dealer in the Missoula area from approximately January 2021 through December 2022 and that he brought drugs from Spokane to Missoula for redistribution. Investigators learned that an individual purchased more than 3,000 fentanyl pills over a 60-day period from Slaney and that he had been seen in possession of 10,000 fentanyl pills and a half-pound of meth. In December 2022, a Montana state search warrant was served on Slaney’s vehicle and resulted in the recovery of fentanyl, meth, heroin, various drug paraphernalia, firearms, and U.S. currency.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force and Missoula Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Washington man sentenced to five years in prison for fentanyl trafficking in Great Falls areaRead the Press Release
GREAT FALLS — A Washington man who admitted to bringing large quantities of fentanyl pills to the Great Falls area and other Montana cities for redistribution was sentenced today to five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Joseph Allen Conner, aka Street, 40, of Yakima, Washington, pleaded guilty in December 2023 to conspiracy to distribute and to possess with intent to distribute controlled substances.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that on June 23, 2023, in University Place, Washington, law enforcement executed a federal search warrant on Conner’s residence and recovered pills, a money counter, firearms, and ammunition. Conner admitted in an interview that beginning in September 2022, he made multiple trips to Montana, including to Great Falls, Missoula, Lincoln, and Haugen, to sell fentanyl and other controlled substances. The investigation determined that Conner distributed large amounts of pills to multiple sources and possessed “buckets full” of fentanyl pills. Conner also mailed large amounts of pills to distributors and was seen with what an individual described as a “volleyball size bag” of pills. Law enforcement also seized approximately 1,500 fentanyl pills and meth from a vehicle being driven by a co-conspirator and determined that the drugs came from Conner.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Homeland Security Investigations, Great Falls Police Department and Russell Country Drug Task Force conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Wanblee Man Sentenced to Four Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Chief Judge Roberto A. Lange has sentenced a Wanblee, South Dakota, man convicted of Failure to Register as a Sex Offender and Assault Resulting in Serious Bodily Injury. The sentencing took place on April 25, 2024.
Richard Lorn Brown, 28, was sentenced to a total of four years in federal prison, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Judge Lange imposed an 18-month sentence on the Failure to Register charge and a 30-month sentence on the Assault charge, and ordered the sentences to run consecutively.
Brown was indicted for Failure to Register as a Sex Offender, Committing a Crime of Violence While Failing to Register, Assault Resulting in Serious Bodily Injury, and Assault with a Dangerous Weapon by a federal grand jury in July of 2023. He pleaded guilty on January 26, 2024.
The conviction stems from Brown failing to update his sex offender registration in July of 2022 and then stabbing a man with a knife in July of 2023.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the U.S. Marshals Service, FBI, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Brown was immediately remanded to the custody of the U.S. Marshals Service.
Wall Man Sentenced to 30 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Wall, South Dakota, man convicted of Enticement of a Minor Using the Internet and Receipt of Child Pornography. The sentencing took place on April 26, 2024.
Miguel Antonio Alvarez, 50, was sentenced to 30 years in federal prison for the Enticement charge and 20 years in federal prison for the Receipt charge, all to run concurrently. Additionally, Alvarez was sentenced to eight years of supervised released, and order to pay a $200 special assessment to the Federal Crime Victims Fund and $27,500 in restitution. Alvarez will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Alvarez was indicted for Sexual Exploitation of a Minor, Enticement of a Minor, Distribution of Child Pornography, Receipt of Child Pornography, and Possession of Child Pornography by a federal grand jury in January of 2023. He pleaded guilty on January 24, 2024.
The convictions stem from Alvarez enticing a 14-year-old girl between April of 2022 and May of 2022 in Wall, South Dakota. Additionally, Alvarez was in receipt of hundreds of images and videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Division of Criminal Investigation, the Internet Crimes Against Children Taskforce, the FBI, the Pennington County’s Office, and the Lynnwood Police Department in Snohomish County, Washington. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Alvarez was immediately remanded to the custody of the U.S. Marshals Service.
Violent Felon Sentenced for Possession of an Illegal RifleRead the Press Release
WASHINGTON – Travis Wicks, 48, of Washington D.C., was sentenced today to 57 months in prison for possessing a Sig Sauer P-365 handgun that had been converted into a rifle and equipped with a drum magazine loaded with forty-rounds of ammunition, along with a laser sight.
The sentencing was announced by U.S. Attorney Matthew M. Graves; Special Agent in Charge Craig Kailimai, of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Wicks pleaded guilty to unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The plea represents his fourth gun charge. In addition to the 57-month prison sentence, U.S. District Judge Timothy J. Kelly, ordered Wicks to serve three years of supervised release.
According to court documents, on May 1, 2023, MPD officers executed a search warrant at the Southeast Washington D.C. apartment where Wicks was known to stay. The search recovered one round of 9mm ammunition in a kitchen cabinet, a black firearm laser sight on a living room coffee table, nine loose 9mm rounds inside a bedroom closet, a drum-style magazine containing 40 rounds of 9mm ammunition in the bedroom closet, and a Sig Sauer P-365 semi-automatic handgun with an obliterated serial number inserted into a rifle conversion kit, also found on the bedroom closet floor. Subsequent DNA analysis linked Wicks to the weapon.
According to the sentencing memo, Wicks has a long and varied history of violent behavior that now includes four gun charges. In October 2005, Wicks was convicted in D.C. Superior Court of voluntary manslaughter while armed for stabbing an unarmed man 20 times in a restaurant.
This case was investigated by the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorneys Yasmine Emrani and Cameron Tepfer.
sentencing_memorandum_travis_wicks.pdf modified_sig_sauer.pdfViolent Felon Found Guilty in Federal Court for Possessing a Machinegun and Perpetrating over $1 Million Bank Fraud SchemeRead the Press Release
INDIANAPOLIS- A federal jury has found Derrick Barbour, 27, of Indianapolis, guilty of unlawful possession of a machinegun, being a felon-in-possession of a firearm, unlawful possession of a USPS Arrow Key, possession of stolen mail, and bank fraud, following a four-day trial.
According to court documents and evidence introduced at trial, early in the morning on February 10, 2023, Indianapolis Metropolitan Police Department (IMPD) officers stopped Barbour, who was driving a stolen vehicle. Barbour, the only occupant in the vehicle, refused to exit, despite over 100 commands from law enforcement to do so. Eventually, IMPD SWAT officers physically removed Barbour from the vehicle and placed him under arrest. Searching Barbour’s person, they found a baggie of cocaine in one of his socks and part of a handgun in his other sock.
Later, law enforcement officers searched the vehicle Barbour was driving. Inside, they found two loaded handguns, a 10 mm Glock model 20 handgun that had previously been reported stolen, and a Glock 17 9mm handgun equipped with a “Glock switch”—a small metallic device that converts a semi-automatic handgun into a fully automatic machinegun, where one press of the trigger fires multiple rounds. The handgun on which the “Glock switch” was installed had a magazine capable of holding 50 rounds.
Installing a “Glock switch” requires the removal of a part of the handgun. The trial evidence showed that the handgun piece found in Barbour’s sock when he was arrested was the part of the Glock 17 handgun that had been removed to install the “Glock switch.”
The jury found that Barbour’s possession of the “Glock switch” was illegal. Additionally, the jury found that Barbour’s possession of the two handguns was also unlawful, as Barbour had previously been convicted of multiple felonies, including attempted armed robbery, possession of cocaine, and residential entry.
In addition to firearms, law enforcement officers also found a significant amount of stolen mail in the vehicle Barbour was driving. Inside the envelopes were checks and money orders made out to other people and businesses. Also, hanging from Barbour’s keyring were two “arrow keys,” which are used to access U.S. Postal Service collection boxes. Indeed, these specific keys were reported missing in late 2022 from the Bacon Station Post Office in Indianapolis. It is unlawful for any unauthorized person to possess an arrow key. The jury found Barbour guilty of possessing both stolen mail and the arrow keys.
Finally, the jury convicted Barbour of bank fraud for washing the stolen checks and cashing them for himself. The jury saw that, in the trunk of Barbour’s vehicle, investigators recovered a laptop computer, a typewriter, and a duffel bag containing additional checks, as well as blank check stock. Many of the checks had been altered to include Barbour’s name. Additionally, the jury saw evidence that the ribbon of the typewriter found in the vehicle and used to alter the checks included Barbour’s name.
The total value of the checks and money orders recovered from the Chevrolet Impala was approximately $$1,217,639.62
The United States Postal Service – Office of Inspector General, Bureau of Alcohol, Firearms, Tobacco and Explosives, U.S. Postal Inspection Service, and IMPD investigated this case. U.S District Court Judge James P. Hanlon presided over the trial and will impose sentence at a later date. Barbour faces up to 70 years in federal prison.
U.S. Attorney Zachary A. Myers thanked Assistant United States Attorneys Kelsey L. Massa and Meredith Wood, who prosecuted this case.
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Utica Man Sentenced for His Role in Large Fentanyl ConspiracyRead the Press Release
SYRACUSE, NEW YORK –Eric Ares, age 38, of Utica, New York, was sentenced today to serve 120 months in federal prison for conspiring to possess with intent to distribute fentanyl and to distribute fentanyl, and possession with the intent to distribute fentanyl, announced United States Attorney Carla Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office. Ares was also ordered to serve a 5-year term of supervised release following his term of imprisonment and pay a $200 special assessment. The Court also imposed a $150,000 money judgment.
As part of his guilty plea, Ares admitted that from May 2020 through October 2021, he, together with his co-conspirators in the Rodriguez drug trafficking organization, possessed with intent to distribute and distributed fentanyl in the Utica, New York area. Ares admitted to making numerous trips to the New York City area to purchase fentanyl, which he then drove back to the Utica area where he and others distributed it. Ares admitted that on September 20, 2021, he drove to the New York City area and received 3 kilograms of fentanyl for distribution. Law enforcement officers stopped the vehicle Ares was driving and recovered 3 kilograms of fentanyl hidden inside a speaker in the trunk.
This case is being investigated by the United States Drug Enforcement Administration (DEA), the United States Internal Revenue Service-Criminal Investigations (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the City of Utica Police Department, the City of Syracuse Police Department, the City of Rome Police Department, United States Homeland Security Investigations (HSI), United States Immigration and Customs Enforcement and Removal Operations (ICE), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Village of Yorkville Police Department, and the Village of Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
United States Files Forfeiture Action Against $1.55 Million Aircraft Landing GearRead the Press Release
The Justice Department today filed a forfeiture complaint against a set of aircraft landing gear for a Boeing 737-800 that was detained in September 2023 at Miami International Airport by U.S. Customs and Border Patrol. The gear was purchased for the benefit of a Kyrgyz Republic-based transhipper of dual-use items servicing the Russian Federation, in violation of U.S. economic sanctions.
According to court documents, the landing gear had been sold in June 2023 by a Florida-based aircraft parts overhauler and reseller for $1.55 million to an intermediary in Istanbul, GQ Solution Elektronik Ekipman Limited Sirketi.
Concurrent with today’s action, the State Department announced new sanctions against entities engaged in Russia’s technology sector, including GQ Solution Elektronik Ekipman Limited Sirketi in connection with the company’s supplying of electronic components to Russia-based companies.
In July 2023, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated LLC RM Design and Development (RMDD) as a Specially Designated National (SDN) for operating in the electronics sector of the Russian Federation economy. According to OFAC, RMDD was established in March 2022, less than one month following the Russian invasion of Ukraine. OFAC has described RMDD as a “prolific shipper of dual-use goods to Russia, including to firms that have supplied electronics to Russia-based defense companies.” As a result of RMDD’s designation as an SDN, all property and interests in property of RMDD that are in the United States are blocked.
On July 25, 2023, five days after being designated as an SDN by OFAC, RMDD sent an email asking HML Aviation to “switch [the purchase] fully to our partners GQ Solution.” After the email, all mentions of RMDD were scrubbed from invoices for the landing gear.
On Aug. 29, 2023, GQ Solution completed HML Aviation’s End Use/End User Certification form. Among the items included in the form are statements that GQ Solution “will not export or re-export U.S. products, technology or software… to any restricted country unless otherwise authorized by the United States Government.”
On Sept. 1, 2023, U.S. Customs and Border Protection (CBP) alerted the shipper that it had detained the landing gear shipment at the airport in Miami.
This forfeiture action is a product of the U.S. government’s coordinated effort to enforce U.S. sanctions and export controls against the Russian Federation following the invasion of Ukraine. The forfeiture complaint detailed here is merely an allegation.
HSI Colorado Springs and the Commerce Department’s Bureau of Industry and Security are leading the larger investigation into Russian Federation attempts to avoid U.S. sanctions and export controls.
Assistant U.S. Attorneys Conor Mulroe and Rick Blaylock Jr. for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section are litigating the case.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The burden to prove forfeitability in a forfeiture proceeding is upon the government.
United States Files Forfeiture Action Against $1.55 Million Aircraft Landing GearRead the Press Release
WASHINGTON - The Department of Justice today announced the filing of a forfeiture complaint against a set of aircraft landing gear for a Boeing 737-800 that was detained in September 2023 at Miami International Airport by U.S. Customs and Border Patrol. The gear was purchased for the benefit of a Kyrgyz Republic-based transhipper of dual-use items servicing the Russian Federation, in violation of U.S. economic sanctions.
The pleas were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen Homeland Security Investigations (HSI) Special Agent in Charge Ryan L Spradlin of the Denver Field Office, and Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod with the Department of Commerce, Bureau of Industry and Security.
According to court documents, the landing gear had been sold in June 2023 by a Florida-based aircraft parts overhauler and reseller for $1.55 million to an intermediary in Istanbul, Turkiye, GQ Solution Electronic Ekipman Limited.
“This Office continues to use every tool it has to stop illegal transactions with Russian businesses,” said U.S. Attorney Graves. “Today’s complaint stops an attempted illegal transfer to the Russian Federations of parts for airplanes and seeks to permanently deprive both the Russian Federation and the company that tried to sell them of these goods.”
Concurrent with today’s action, the State Department announced new sanctions against entities engaged in Russia’s technology sector, including GQ Solution Elektronik Limited in connection with the company’s supplying of electronic components to Russia-based companies.
In July 2023, the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) designated LLC RM Design and Development (RMDD) as a Specially Designated National (SDN) for operating in the electronics sector of the Russian Federation economy. According to OFAC, RMDD was established in March 2022, less than one month following the Russian invasion of Ukraine. OFAC has described RMDD as a “prolific shipper of dual-use goods to Russia, including to firms that have supplied electronics to Russia-based defense companies.” As a result of RMDD’s designation as an SDN, all property and interests in property of RMDD that are in the United States are blocked.
On July 25, 2023, five days after being designated as an SDN by OFAC, RMDD sent an email asking HML Aviation to “switch [the purchase] fully to our partners GQ Solution.” After the email, all mentions of RMDD were scrubbed from invoices for the landing gear.
On August 29, 2023, GQ Solution completed HML Aviation’s End Use/End User Certification form. Among the items included in the form are statements that GQ Solution “will not export or re-export U.S. products, technology or software… to any restricted country unless otherwise authorized by the United States Government.”
On September 1, 2023, U.S. Customs and Border Protection (CBP) alerted the shipper that it had detained the landing gear shipment at the airport in Miami.
This forfeiture action is a product of the U.S. government’s coordinated effort to enforce U.S. sanctions and export controls against the Russian Federation following the invasion of Ukraine. The forfeiture complaint detailed here is merely an allegation. The burden to prove forfeitability in a forfeiture proceeding is upon the government.
The Homeland Security Investigations (HSI) Colorado Springs Field Office and the Department of Commerce, Bureau of Industry and Security are leading the larger investigation into Russian Federation attempts to avoid U.S. sanctions and export controls.
This case is being litigated by Assistant U.S. Attorneys Conor Mulroe and Rick Blaylock Jr., with the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
United States Attorney and New York State Attorney General Announce Substantial Recovery for the Beneficiaries of Defrauded EstatesRead the Press Release
ALBANY, NEW YORK – United States Attorney Carla B. Freedman and New York State Attorney General Letitia James announced today that nearly $6.3 million in restitution has been collected and distributed to the victims of Richard J. Sherwood and Thomas K. Lagan, who were sentenced to both federal and state prison for stealing approximately $11.8 million from the estates of three deceased sisters.
Nearly $5 million of the restitution came from criminally derived assets that were forfeited to the United States, and then approved by the Department of Justice to be directly applied to victim restitution. Of the funds restored to the victims, $3,559,426.90 was forfeited by Sherwood and $1,391,322.08 was forfeited by Lagan.
The victims, which have received restitution distributions, include churches, Ukrainian-American civic organizations, a local hospital and a local university scholarship fund. The United States Attorney’s Office’s Asset Recovery Unit is still working to recover the remainder of the restitution owed, approximately $5.5 million.
United States Attorney Carla B. Freedman stated: “This substantial recovery is the result of our efforts to make sure that crime does not pay. We will continue to use every available tool to enforce restitution judgments against Sherwood and Lagan and return as much money as possible to the victims of their fraudulent scheme.”
New York State Attorney General Letitia James stated: “New Yorkers should be able to trust that their financial advisors and attorneys are looking out for their best interests—not stealing their hard-earned money. Sherwood and Lagan defrauded a well-meaning family, and in the process, cheated local nonprofit organizations out of funds intended to support their missions. Thank you to U.S. Attorney Freedman for her partnership in rooting out fraud and stopping individuals who abuse the system.”
Lagan of Cooperstown, New York, was an investment advisor and attorney, and Sherwood of Guilderland, New York, was an attorney who served as Guilderland Town Justice, and practiced primarily in trusts and estates.
Starting in 2006, Sherwood and Lagan provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. They were advising the Bruggemans when, in 2006, the Bruggemans signed wills directing that all their assets go to churches, civic organizations, a local hospital, and a local university scholarship fund, aside from bequests to Urban and Julia Rentz, Pauline’s sisters.
Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million. In each pleading guilty, Sherwood and Lagan admitted that they conspired to steal, and did steal, millions of dollars from Pauline Bruggeman’s estate as well as from the estate of Urban, who died in 2013. Their conspiracy included the diversion and transfer to themselves of several million dollars belonging to Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.
Sherwood and Lagan each admitted that they induced Urban to create a trust whose purpose, unknown to her, was to allow them to transfer Bruggeman/Urban assets to themselves. They also set up more than ten bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.
The co-conspirators admitted that they stole $11,831,563, with Lagan admitting that that nearly $6.3 million was transferred outright to him. Sherwood admitted that nearly $3.6 million was transferred to him, with an additional $1.96 million transferred to Empire Capital Trust, LLC, an entity controlled by the co-conspirators. Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake, in Saratoga County.
In December 2019, Sherwood was sentenced to 54 months in federal prison, and to also serve 3 to 9 years in state prison. That same month, Lagan was sentenced to 78 months in federal prison and to also serve 4 to 12 years in state prison.
From prison, and notwithstanding his prior guilty pleas in federal and state court, Lagan then objected in New York State Surrogate’s Court to a petition filed by the New York Attorney General’s Office’s Charities Bureau to restore the appropriate trusts created by Anne Urban (before Lagan and Sherwood defrauded her). The Surrogate’s Court ultimately rejected Lagan’s challenge and granted summary judgment to the Charities Bureau, a decision that was affirmed on appeal. Assistant Attorney General Jennifer Allinson represented the Charities Bureau in the Surrogate’s Court case.
Assistant U.S. Attorneys Elizabeth Conger and Melissa Rothbart represent the United States on the asset forfeiture and restitution matters in this case, with assistance from the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.
This case is part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
U.S. Attorney's Office Announces the Formation of Multi-Agency Health Care Fraud Task ForceRead the Press Release
COLUMBIA, S.C. — Together with state and federal partners, U.S. Attorney Adair F. Boroughs announced the formation of the Palmetto Health Care Fraud Task Force (PHCF Task Force), which has been created as a dedicated task force to combat health care fraud and recover taxpayer money in the District of South Carolina through criminal and civil actions. Other agencies that have joined the PHCF Task Force include investigators from the Department of Labor and the South Carolina Attorney General’s Medicaid Fraud Control Unit.
In February 2023, the FBI, U.S. Attorney’s Office for the District of South Carolina, and other federal, state, and local agency partners began meeting as part of a Health Care Fraud Working Group with the goal of combatting health care fraud in the District of South Carolina. The PHCF Task Force was created after the FBI and the U.S. Attorney’s Office saw great success from the Working Group meetings. The creation of the PHCF Task Force demonstrates an increased effort to bring to justice those who defraud the health care system, to deter future health care fraud and abuse, and to promote trust in the healthcare system. Additional resources available to the PHCF Task Force will include the FBI's Data Analytics Response Team (DART), numerous forensic accountants, and Intelligence Analysts from various agencies, which all will promote efficiency in prosecuting cases.
Health care fraud is an enormous burden on South Carolina taxpayers. In 2023, taxpayer funded healthcare programs spent approximately $23 billion in South Carolina alone. Although it is difficult to approximate the amount of money lost to waste, fraud, and abuse each year, the Government Accountability Office estimates it could be as much as 10% of money spent. The PHCF Task Force will better equip the United States to detect wrongdoers and recoup money lost to fraud in South Carolina—which costs taxpayers billions each year.
The PHCF Task Force and agencies involved in the Health Care Fraud Working Group will meet regularly to aggressively investigate allegations of false billings, COVID-19 fraud, violations of the Anti-Kickback Statute, and other schemes that victimize patients, health care providers, private insurers, and government insurers, such as Medicare, TRICARE, and Medicaid, in the District of South Carolina.
“Health care fraud impacts our citizens, both as patients and taxpayers,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “The Palmetto Health Care Fraud Task Force demonstrates our commitment to working with our partners to protect those seeking quality medical care and the federal programs meant to support them. The U.S. Attorney’s Office for the District of South Carolina commends our partners for the creation of the Palmetto Health Care Fraud Task Force and will continue to vigorously prosecute and pursue those who abuse and take advantage of health care programs.”
“Fraud committed within our health systems affects everyone and weakens public trust,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “The FBI created the PCHF Task Force to bolster the local, state, and federal posture against health care fraud, and it will enhance our investigative approaches to hold offenders accountable. We appreciate our federal and state partners that have joined the task force in this effort.”
“We welcome the PHCF Task Force and will continue to assist investigative partners combatting health care fraud,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Our unwavering commitment at HHS-OIG remains steadfast in protecting Medicare, Medicaid, and the well-being of their beneficiaries from fraudulent schemes. The impact of defrauding federal health care programs diverts crucial resources from those deserving of vital medical attention and will not be tolerated."
The U.S. Attorney’s Office for the District of South Carolina anticipates broader enforcement as a result of the PHCF Task Force, building on its past success. For example, in April 2019, the District of South Carolina announced its participation in a nationwide operation aimed at dismantling one of the largest Medicare fraud schemes in history. In March 2024, one of the Defendants, Andrew Chmiel, was sentenced to nine years in federal prison for his role in this scheme. The District of South Carolina also recently announced the successful prosecution of Jeffrey Brooks for submitting false durable medical equipment claims. Mr. Brooks pled guilty to conspiracy to commit health care fraud and was sentenced to seven and a half years in federal prison. He also paid $850,000 to the United States as part of a civil settlement.
If you suspect healthcare fraud, please report it by phone at 1-800-CALL-FBI (1-800-225-5324) or submit a tip at tips.fbi.gov.
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U.S. Attorney recognizes outstanding agents for work with victimsRead the Press Release
Oxford, MS – Two FBI agents were recognized on Tuesday, April 30, 2024, at the U.S. Attorney’s Office in Oxford, Mississippi for their outstanding work and service on behalf of crime victims.
FBI Special Agents Molly Blythe and Ryan Berthay were recipients of the inaugural Carolyn Clayton Victims’ Service Award given by U.S. Attorney Clay Joyner in observance of Crime Victims’ Rights Week. Both agents Blythe and Berthay were specifically recognized for their work on behalf of child exploitation and human trafficking victims.
The award, which is named in memory of long-time victims’ rights advocate Carolyn Clayton, will be given annually by the U.S. Attorney’s Office to recognize agents or individuals who have demonstrated tremendous efforts and service to crime victims. Clayton, who founded Survival Incorporated after a tragedy in her own personal life, championed victims’ rights in Mississippi and worked tirelessly to bring about changes to laws affecting those touched by violent crime.
“I can think of no more fitting name for this award given in observance of Victims’ Rights Week than the Carolyn Clayton Victims’ Service Award, and no more deserving agents to receive it this year than Molly Blythe and Ryan Berthay,” remarked U.S. Attorney Joyner. “Ms. Clayton and Special Agents Blythe and Berthay have devoted themselves to ensuring that crime victims are heard and protected and that justice is served on their behalf. For all the work that Carolyn Clayton did on behalf of victims during her lifetime and for all of the work that Agents Blythe and Berthay are currently doing, we are immensely grateful.”
U.S. Attorney Will Thompson to Announce Guilty Plea in Bankruptcy Fraud Case with U.S. Trustee and Law Enforcement OfficialsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will hold a press conference with U.S. Trustee Program and law enforcement officials on Wednesday, May 1, 2024, at 11:30 a.m. to announce a guilty plea in a bankruptcy fraud case.
The press conference will be held at the Robert C. Byrd United States Courthouse in Charleston, and is slated to include officials from the Federal Bureau of Investigation (FBI), the United States Trustee Program and the West Virginia State Police-Bureau of Criminal Investigation (BCI).
WHAT: Plea Hearing Press Conference
WHEN: Wednesday, May 1, 2024, at 11:30 a.m.
WHERE: Fourth Floor, Robert C. Byrd U.S. Courthouse, Charleston
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Two Raleigh Men Sentenced to Prison for Laundering Proceeds of Transnational CrimeRead the Press Release
RALEIGH, N.C. – Two Raleigh, North Carolina men, Joseph Kingsley Irona and Mamady Fadima Conde, were sentenced for conspiracy to commit money laundering. Both men previously pled guilty to the charge. Irona was sentenced to 84 months’ imprisonment and three years of supervised release. Conde was sentenced to 60 months’ imprisonment and five years of supervised release. The defendants were each ordered to pay restitution to the Social Security Administration (SSA) and the Small Business Administration (SBA) in connection with the scheme.
“These defendants took advantage of benefits that hard-working Americans pay for by fraudulently obtaining identities and funneling the funds through elaborate laundering channels to obscure their trail,” said U.S. Attorney Michael Easley. “This case highlights our relentless pursuit of those who exploit financial systems and harm the citizens of Eastern North Carolina.”
“The misuse of SSA’s e-Services to defraud SSA and rightful beneficiaries and recipients will not be tolerated at any level. This sentence holds these defendants accountable for their malicious and egregious crimes,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to investigate those who abuse SSA programs and operations, including its e-Services, for their own selfish gain. I thank our law enforcement partners and the U.S. Attorney’s Office for their diligence in investigating and prosecuting this complex case.”
According to court documents and other information presented in court, Irona and Conde were involved in a highly complex network of bank accounts at multiple financial institutions. This network was used for laundering over $1 million criminal proceeds derived from various fraud schemes, particularly identity theft. One particularly intricate scheme involved the misuse of stolen victim identifiers to submit online applications for Social Security retirement benefits in victims’ names. After the applications were approved, the resulting payments were unlawfully deposited into accounts within the money laundering network, including accounts held by Irona and Conde. After receiving criminal proceeds, Irona and Conde took elaborate steps to dissipate the funds and obscure their source and destination. In addition to his money laundering activity, Irona was also responsible for managing multiple co-conspirators in the United States and the flow of criminal funds through their accounts in furtherance of the larger money laundering operation, including facilitating money transfers to co-conspirators in Nigeria.
A third defendant in the case, Chinedu Frances Okwuosha, was previously sentenced to 24 months’ imprisonment and three of supervised release on February 22, 2024.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Social Security Administration, Office of Inspector General, investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-348-D.
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Two Murfreesboro Men Sentenced in Conspiracy to Ship Massive Quantities of Methamphetamine to New Zealand and AustraliaRead the Press Release
NASHVILLE – Steven Weaver, 51, of Murfreesboro, Tennessee, was sentenced yesterday to 140 months in prison and five years of supervised release, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee. Weaver previously pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, and possession and distribution of more than 50 grams of methamphetamine. Weaver’s co-defendant, Jamie Woods, was sentenced last week to 120 months in prison and five years of supervised release.
According to the indictment and other documents filed with the Court, in July 2019, an investigation by Homeland Security Investigations and the U.S. Postal Inspection Service determined that multiple parcels had been shipped from Murfreesboro to Australia and New Zealand that contained methamphetamine. In most instances, the methamphetamine was packaged in cake mix boxes and the parcels were identified as a “Birthday Gift.”
Although some of the parcels were successfully delivered to their destination, law enforcement intercepted 12 of the parcels, which contained a total of more than 20 kilograms of methamphetamine, some of which bore the defendants’ fingerprints. At sentencing, U.S. District Judge Aleta Trauger found that an estimate of 50 kilograms of methamphetamine was appropriate and described it as a “tremendous amount of incredibly pure methamphetamine.”
“This prosecution and the sentences imposed, are a testament to the fantastic work of the federal and local law enforcement agencies who investigated this case,” said United States Attorney Henry C. Leventis. “Methamphetamine is an incredibly dangerous drug. We will continue to hold accountable those who distribute it, either here in the Middle District or abroad.”
“The sentencing of these defendants illustrates HSI’s mission of investigating the movement of illegal narcotics through importation and exportation, either to or from the United States,” said Homeland Security Investigations (HSI) Nashville Special Agent in Charge Rana Saoud. “This sentencing showcases the investigative work HSI conducts alongside our partners, including the U.S. Postal Inspection Services, to disrupt and dismantle transnational criminal organizations who threaten the stability of communities domestically and abroad.”
Two of the parcels were determined to have been mailed from the mail room at Middle Tennessee State University (MTSU) in Murfreesboro, on June 25, 2019. The identification of the origin of these parcels led investigators to video footage from MTSU which captured a vehicle and two individuals and aided in the subsequent identification of the defendants. Investigators were also able to capture surveillance footage of Weaver and Woods buying copious amounts of cake mix boxes from Walmart.
This case was investigated by the U.S. Postal Inspection Service and Homeland Security Investigations with support from the Rutherford County Sheriff’s Office, the MTSU Police Department, the Murfreesboro Police Department, and Walmart Global Investigations. Assistant U.S. Attorney Amanda J. Klopf prosecuted the case.
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Two Los Angeles Men Plead Guilty to Criminal Charges for Using Instagram to Solicit Account Holders to Deposit Stolen ChecksRead the Press Release
LOS ANGELES – Two Los Angeles men pleaded guilty today to federal criminal charges for defrauding banks and credit unions out of at least $2.7 million by depositing checks stolen from the mail into bank accounts belonging to accomplices they recruited through Instagram.
Carlos Corona, 36, of South Los Angeles, and Jose Luis Edeza Jr., 31, of Sunland, the two lead defendants in this criminal case, each pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to their plea agreements, from October 2020 to August 2023, Corona, Edeza and other co-conspirators engaged in an elaborate bank fraud scheme using third-party bank accounts and stolen checks. Some co-conspirators stole checks from the U.S. mail stream, including from post office mail collection boxes located outside post offices.
The conspirators took possession of the stolen checks. They, along with others, then solicited bank account holders through social media to provide their debit cards and bank account information, promising these account holders a cut of any fraudulent funds deposited into their accounts.
To circumvent the fraud protections of the banks and credit unions, Corona, Edeza and others specifically requested bank accounts that had been open for a certain amount of time so they could get access to the stolen funds more quickly.
Bank account holders responded to the social media advertisements and provided members of the conspiracy with the information requested on the ads, including bank account numbers, PIN numbers, debit cards and online banking log-in information.
Corona, Edeza and other co-conspirators exchanged the bank account holders’ information with each other, and then they deposited the stolen checks into these bank accounts. In most cases, the stolen checks were falsely endorsed in the original payee’s name. Sometimes, the checks were washed or altered to make the payee name correspond to the bank account into which the checks were being deposited.
Corona, Edeza and other co-conspirators then rapidly depleted the fraudulently deposited funds from the account holders’ accounts by making cash withdrawals, electronic transfers and/or debit card purchases. To conceal the fraud, members of the conspiracy instructed account holders – if the banks and credit unions contacted them about the fraudulent deposits – to claim that their accounts had been compromised.
During the scheme, Corona and Edeza intended to cause at least $5.3 million in losses to the banks and credit unions and caused actual losses to lenders of at least $2.7 million.
United States District Judge John F. Walter scheduled July 8 sentencing hearings for Corona and Edeza, at which time each defendant will face a statutory maximum sentence of 30 years in federal prison for the bank fraud conspiracy count and a mandatory two-year consecutive prison sentence for the aggravated identity theft count.
The United States Postal Inspection Service and IRS Criminal Investigation are investigating this matter. The Los Angeles Police Department provided assistance.
Assistant United States Attorneys Sarah E. Spielberger and Alexandra Michael, both of the General Crimes Section, are prosecuting this case.
Threats to murder Montana U.S. Sen. Jon Tester send Billings man to prison for 30 monthsRead the Press Release
BILLINGS — A Billings man who admitted to threatening to kill Montana U.S. Senator Jon Tester in voicemail messages was sentenced today to 30 months in prison, to be followed by three years of supervised release, the U.S. Attorney’s Office said.
The defendant, Anthony James Cross, 30, pleaded guilty in January to threats to injure and murder a United States Senator.
U.S. District Judge Susan P. Watters presided. The court accepted a plea agreement in the case and ultimately dismissed a second count that charged Cross with threats against the President.
The government alleged in court documents that on April 17, 2023, Sen. Tester’s office received voicemails containing direct threats to the senator and his family. The voicemails, which contained expletives, included threats that the caller was going to, among other things, “kill every single one of your (obscenity) family members,” and that they would experience a “horrendous death.” Law enforcement determined that the phone number associated with the calls was attributed to Cross, who lived in Billings and had previous interactions with law enforcement.
A review of Cross’s social media activity indicated disturbing content. The government further alleged that on April 25, 2023, Google contacted the FBI regarding multiple comments made to YouTube videos flagged as threatening. The comments were attributed to Cross’s YouTube account. Some of the comments made in April 2023 included direct threats to kill the President and how “we are actively hunting down and killing any trans in our major cities.”
When interviewed, Cross admitted to making the comments posted on YouTube and to using his cellular phone to make the comments.
Assistant U.S. Attorneys Zeno B. Baucus and Jeffrey K. Starnes prosecuted the case. The FBI and United States Secret Service conducted the investigation.
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Staffing Company to Pay $2.7M for Alleged Failure to Provide Adequate Cybersecurity for COVID-19 Contact Tracing DataRead the Press Release
Insight Global LLC, headquartered in Atlanta has agreed to pay $2.7 million to resolve allegations that it violated the False Claims Act by failing to implement adequate cybersecurity measures to protect health information obtained during COVID-19 contact tracing.
The United States alleged that during the COVID-19 pandemic, the Pennsylvania Department of Health hired Insight Global to provide staffing for COVID-19 contact tracing and paid Insight Global using funds from the U.S. Centers for Disease Control and Prevention. Insight Global understood that personal health information of contact tracing subjects needed to be kept confidential and secure, but it failed to do so. For example, certain personal health information and/or personally identifiable information of contact tracing subjects was transmitted in the body of unencrypted emails, staff used shared passwords to access such information, and such information was stored and transmitted using Google files that were not password protected and were potentially accessible to the public via internet links.
The United States further alleged that from November 2020 through January 2021, Insight Global managers received complaints from Insight Global staff that such information was unsecure and potentially accessible to the public, but Insight Global failed to start remediating the issue until April 2021. At that point, Insight Global addressed the issue, including by securing such information, investigating the cause and scope of the incident, strengthening internal controls and procedures, adding more data-security resources and issuing a public notice regarding the scope of the potential exposure and offering free credit monitoring and identity protection services to those affected. Insight Global also cooperated with the United States’ investigation.
“The resolution announced today reflects our continuing commitment to ensure that government contractors fulfill their cybersecurity obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Failure to do so can compromise sensitive information of individuals and the government. The Justice Department will hold accountable those contractors who knowingly fail to satisfy cybersecurity requirements.”
“We will continue to work tirelessly here in the Middle District of Pennsylvania to make sure that those who do business with the government fulfill their commitments,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Increasingly, cybersecurity is a critical part of most, if not all, federally funded contracts. We are thankful for the support of HHS-OIG and their assistance in investigating this case.”
“Contractors for the government who do not follow procedures to safeguard individuals’ personal health information will be held accountable,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the security of their personal health data.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The settlement in this case provides for the whistleblower, Terralyn Williams Seilkop, a former Insight Global staff member who worked on the contact tracing at issue, to receive a $499,500 share of the settlement amount. The case is captioned United States ex rel. Seilkop v. Insight Global LLC, No. 1:21-cv-1335 (M.D. Pa.).
Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Tamara J. Haken for the Middle District of Pennsylvania handled this matter, with assistance from HHS-OIG.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementStaffing Company to Pay $2.7 Million for Alleged Failure to Provide Adequate Cybersecurity for COVID-19 Contact Tracing DataRead the Press Release
HARRISBURG - Insight Global LLC, headquartered in Atlanta, Georgia, has agreed to pay $2,700,000 to resolve allegations that it violated the False Claims Act by failing to provide adequate cybersecurity to protect health information obtained during COVID-19 contact tracing.
The United States alleged that during the COVID-19 pandemic, the Pennsylvania Department of Health hired Insight Global to provide staffing for COVID-19 contact tracing, and paid Insight Global using funds from the U.S. Centers for Disease Control and Prevention. Insight Global understood that personal health information of contact tracing subjects needed to be kept confidential and secure, but it failed to do so. For example, certain personal health information and/or personally identifiable information of contact tracing subjects was transmitted in the body of unencrypted emails, staff used shared passwords to access such information, and such information was stored and transmitted using Google files that were not password protected and were potentially accessible to the public via internet links.
The United States further alleged that from November 2020 through January 2021, Insight Global managers received complaints from Insight Global staff that such information was unsecure and potentially accessible to the public, but Insight Global failed to start remediating the issue until April 2021. At that point, Insight Global addressed the issue, including by securing such information, investigating the cause and scope of the incident, strengthening internal controls and procedures, adding more data-security resources, and issuing a public notice regarding the scope of the potential exposure and offering free credit monitoring and identity protection services to those affected. Insight Global also cooperated with the United States’ investigation.
“The resolution announced today reflects our continuing commitment to ensure that government contractors fulfill their cybersecurity obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Failure to do so can compromise sensitive information of individuals and the government. The Justice Department will hold accountable those contractors who knowingly fail to satisfy cybersecurity requirements.”
“We will continue to work tirelessly here in the Middle District of Pennsylvania to make sure that those who do business with the government fulfill their commitments,” said United States Attorney Gerard M. Karam. “Increasingly, cybersecurity is a critical part of most, if not all, federally funded contracts. We are thankful for the support of HHS-OIG and their assistance in investigating this case.”
“Contractors for the government who do not follow procedures to safeguard individuals’ personal health information will be held accountable,” said Maureen R. Dixon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the security of their personal health data.”
On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The settlement in this case provides for the whistleblower, Terralyn Williams Seilkop, a former Insight Global staff member who worked on the contact tracing at issue, to receive a $499,500 share of the settlement amount. The case is captioned United States ex rel. Seilkop v. Insight Global LLC, No. 1:21-cv-1335 (M.D. Pa.).
This matter is being handled by Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant United States Attorney Tamara J. Haken of the United States Attorney’s Office for the Middle District of Pennsylvania, with assistance from the Department of Health and Human Services’ Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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St. Louis County Man Sentenced to 84 Months in Prison for Selling FentanylRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man from St. Louis County, Missouri who sold drugs to a woman who later died to 84 months in prison.
Donald Lawrence Bateman, 28, pleaded guilty in January to distribution of a controlled substance and possession with the intent to distribute a mixture or substance containing fentanyl. He admitted selling illegal drugs to a St. Louis woman who was found dead the next day. In a series of text messages, Bateman and the victim discussed the sale of $90 worth of drugs, and what Bateman had available, including reference to pills referred to by them as “30s.”
The victim’s blood sample contained, among other things, fentanyl and ethanol.
Seventeen blue pills labeled “M30” that contained fentanyl, 14 green pills and a firearm were later found in Bateman’s possession.
Courtesy of the Drug Enforcement Administration.Bateman and his lawyers disputed that the pills were the cause of the victim’s death, but after witness testimony and evidence was presented Wednesday, Judge Ross said that Bateman’s sale of the drugs was central to her death.
The Drug Enforcement Administration and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorneys Cort VanOstran, James Delworth and Samantha Reitz prosecuted the case.
Springfield Man Sentenced to 14 Years in Federal Prison for Repeatedly Possessing and Distributing Child Sexual Abuse MaterialRead the Press Release
EUGENE, Ore.—A Springfield, Oregon man was sentenced to federal prison today for repeatedly possessing and distributing photos and videos depicting child sexual abuse.
Randy Lee Cook, 43, was sentenced to 168 months in federal prison and a life term of supervised release.
According to court documents, in 2006, Cook was convicted of state child pornography charges in Missouri and served a significant prison sentence for sending child sexual abuse material to a minor, engaging in sexual chats with the minor, and then engaging in additional sexual chats with an undercover law enforcement officer posing as a minor and propositioning the decoy minor for sex. Following his release from prison, Cook was required to register as a sex offender.
In the summer of 2020 and spring of 2021, investigators learned that Cook had resumed distributing child sexual abuse material online, this time using Kik Messenger, an instant messaging mobile application. Investigators traced multiple Kik accounts to Cook and learned he was residing in Springfield. On June 11, 2021, investigators executed search warrants on Cook’s residence, truck, and person. Cook’s phone was found to contain approximately 194 images and 63 videos depicting child sexual abuse.
In July 2021, Cook was charged by criminal complaint with possessing and distributing child pornography and arrested. On July 20, 2023, a federal grand jury in Eugene indicted him on the same charges.
In December 2023, while Cook’s case was being litigated, an FBI task force officer in Louisiana investigating an unrelated matter began conversing with an individual on Kik who was later determined to be Cook. In conversations online with the officer, Cook claimed to have engaged in sex acts with children and sent the agent an explicit video of a child. On December 14, 2023, Cook was arrested a second time when he was leaving his Springfield residence to plead guilty in federal court.
On January 24, 2024, Cook pleaded guilty to three counts of distributing child pornography and one count of possessing child pornography.
This case was investigated by the FBI Eugene Resident Agency with assistance from the FBI New Orleans Field Office, Lane County Sheriff’s Office, Bossier Parish Sheriff’s Office, and Shreveport Police Department. It was prosecuted by William McLaren, Marco Boccato, and Mira Chernick, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware SchemeRead the Press Release
A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting more than 2,500 ransomware attacks and demanding over $700 million in ransom payments.
“As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland.
“Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.”
“Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.”
According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands.
“Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.”
“Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.”
Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland.
Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy.
The FBI investigated the case.
Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas and Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases.
The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.
Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware SchemeRead the Press Release
A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting over 2,500 ransomware attacks and demanding over $700 million in ransom payments.
“As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland.
“Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.”
“Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.”
According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands.
“Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.”
“Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.”
Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland.
Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy.
The FBI investigated the case.
Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases.
The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.
Shiprock Woman Sentenced for Drunk Driving Crash that Killed GrandchildRead the Press Release
ALBUQUERQUE – A Shiprock woman was sentenced to five years in prison for a tragic rollover accident in Shiprock, New Mexico which resulted in the death of her young granddaughter and serious injuries to another.
There is no parole in the federal system.
According to court documents, on July 1, 2021, Evelyn Bustamante, 60, drove her grandchildren from Shiprock and Farmington. Neither of the children were properly restrained in seatbelts or car seats. Around 3:00 PM, Bustamante lost control of the vehicle, causing it to roll over and eject all three occupants.
First responders rushed the trio to the Northern Navajo Medical Center where Bustamante admitted to consuming alcohol and methamphetamine earlier that day. Toxicology tests confirmed the presence of these substances in her system.
Jane Doe 1 suffered severe head trauma and was placed on a ventilator at the University of New Mexico Hospital. After five days, she succumbed to her injuries. Jane Doe 2 sustained a skull fracture and subdural hemorrhage but has since recovered.
Bustamante suffered multiple injuries, including lacerations and fractures, and underwent reconstructive surgery on her hand.
Upon her release from prison, Bustamante will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and New Mexico State Police. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Scheme to Transfer Money to Iran Results in Guilty PleasRead the Press Release
Muzzamil Zaidi, 40, and Asim Mujtaba Naqvi, 40, both of Houston, Texas, pleaded guilty today for their roles in an illicit scheme to collect tens of thousands of dollars from the United States to Iran, including in the name of Ayatollah Ali Husseini Khamenei, the Supreme Leader of the Islamic Republic of Iran, and arrange for the money to be exported to Iran without the required licenses from the Offices of Foreign Assets Control.
According to court documents, in December 2018, Zaidi received permission to collect khums – a religious tax on wealth – on behalf of several Imams. Between December 2018 and December 2019, Zaidi and Naqvi collected payments of this tax, as well as donations purportedly to help victims of the ongoing civil war in Yemen, from individuals in the United States.
Zaidi and Naqvi arranged for the funds to be exported from the United States to Iran and to be received by the Office of the Supreme Leader of Iran. Zaidi and Naqvi enlisted friends, family members, and other associates to carry the cash out of the United States, in amounts less than $10,000 in order to avoid law enforcement scrutiny. One transfer of dollars to Iran involved a group of 25 travelers going on a religious pilgrimage in Iraq, and the subsequent transport of U.S. dollars hand-carried by those travelers to Iran. Both Zaidi and Naqvi were arrested in Houston on Aug. 18, 2020, as a result of this scheme.
The transfer of money was illegal because the United States has imposed economic sanctions on Iran since 1995. Every year since 1984, the U.S. State Department has named Iran as a state sponsor of terrorism. And on June 24, 2019, the President imposed additional sanctions on the Supreme Leader of Iran that prohibit the provision of funds to, or for the benefit of, the Supreme Leader of Iran.
Zaidi and Naqvi both pleaded guilty to conspiracy and violations of the International Emergency Economic Powers Act (IEEPA) before U.S. District Judge Tanya S. Chutkan, who scheduled sentencing for Zaidi on Aug. 13 and for Naqvi on Oct. 1.
The FBI Washington Field Office and the FBI Houston Counterterrorism team are investigating the case. FBI Field Offices in Dallas, Chicago, and Detroit provided valuable assistance.
Assistant U.S. Attorneys Jolie Zimmerman, Erik Kenerson, and Maeghan Mikorski for the District of Columbia, and Trial Attorneys Adam Small and Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section are prosecuting the case.
Scheme to Transfer Money to Iran Results in Guilty PleasRead the Press Release
WASHINGTON – Muzzamil Zaidi, 40, and Asim Mujtaba Naqvi, 40, both of Houston, Texas, pleaded guilty today for their roles in an illicit scheme to collect tens of thousands of dollars from the United States to Iran, including in the name of Ayatollah Ali Husseini Khamenei, the Supreme Leader of the Islamic Republic of Iran, and arrange for the money to be exported to Iran without the required licenses from the Offices of Foreign Assets Control.
The guilty pleas were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen, FBI Special Agent in Charge Douglas A. Williams Jr. of the Houston Field Office, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
Zaidi and Naqvi both pleaded guilty to conspiracy and violations of the International Emergency Economic Powers Act (IEEPA) before U.S. District Judge Tanya S. Chutkan, who scheduled sentencing for Zaidi on August 13, 2024, and for Naqvi on October 1, 2024.
According to court documents, in December 2018, Zaidi received permission to collect khums – a religious tax on wealth – on behalf of several Imams. Between December 2018 and December 2019, Zaidi and Naqvi collected payments of this tax, as well as donations purportedly to help victims of the ongoing civil war in Yemen, from individuals in the United States.
“The defendants smuggled cash out of the United States for the purpose of illegally delivering it to Iran, a country that sponsors terrorism across the globe,” said U.S. Attorney Matthew M. Graves. “This Office and our law enforcement partners will find and prosecute those seeking to unlawfully fund this regime.”
“For over 40 years, Iran has financed terror organizations that export fear, violence, and death across the globe,” said FBI Houston Special Agent in Charge Douglas Williams. “Zaidi and Naqvi financially supported Iran’s dispersion of terror through a system of subterfuge and deception. Thanks to the work of FBI counterterrorism agents, their system has been neutralized and Iran’s rabid campaign of state-sponsored terrorism has been impaired.”
“The FBI remains steadfast in preventing U.S. currency from reaching the most prolific state sponsor of terrorism in the world,” Assistant Director in Charge Sundberg said. “Today's hearing should be a warning to others that the FBI is committed to finding those who willfully circumvent U.S. sanctions and bring them to justice.”
Zaidi and Naqvi arranged for the funds to be exported from the United States to Iran and to be received by the Office of the Supreme Leader of Iran. Zaidi and Naqvi enlisted friends, family members, and other associates to carry the cash out of the United States, in amounts less than $10,000 in order to avoid law enforcement scrutiny. One transfer of dollars to Iran involved a group of 25 travelers going on a religious pilgrimage in Iraq, and the subsequent transport of U.S. dollars hand-carried by those travelers to Iran. Both Zaidi and Naqvi were arrested in Houston on August 18, 2020, as a result of this scheme.
The transfer of money was illegal because the U.S. has imposed economic sanctions on Iran since 1995. Every year since 1984, the U.S. State Department has named Iran as a state sponsor of terrorism. And on June 24, 2019, the President imposed additional sanctions on the Supreme Leader of Iran that prohibits the provision of funds to, or for the benefit of, the Supreme Leader of Iran.
This case was investigated by the FBI’s Washington Field Office and the FBI Houston Counterterrorism investigative team. The FBI’s offices in Dallas, Chicago, and Detroit all provided valuable assistance.
The case is being prosecuted by Assistant U.S. Attorneys Jolie Zimmerman, Erik Kenerson, and Maeghan Mikorski of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with Trial Attorneys Adam Small and Derek Shugert of the Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice.
Repeat child sex predator sentenced to 60 yearsRead the Press Release
GALVESTON, Texas – A 36-year-old Alvin resident has been ordered to federal prison for distribution, receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Keenan Edward Howe pleaded guilty Oct. 24, 2022.
U.S. District Judge Jeffrey Vincent Brown has now sentenced Howe to 300 months each for the distribution and receipt convictions in addition to 120 months for possession of child pornography, respectively. They will run consecutively for a total 720-month-term of imprisonment. In handing down the prison terms, the court noted the egregious nature of Howe’s conduct. He will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Howe will also be ordered to register as a sex offender. In handing down the sentence, Judge Brown reiterated the need for Howe’s sentence to reflect the offensive nature of his conduct.
In August 2022, authorities identified Howe through an undercover online investigation in which Howe communicated with someone he believed to be a father with access to minor children. Throughout the conversation, Howe expressed his desire to drug and violently sexually abuse the children. He also discussed purchasing the younger minor child for the purpose of sexually abusing her.
Further communication revealed Howe also admitted to sexually abusing multiple minor victims. Law enforcement subsequently arrested Howe prior to a scheduled meeting with the “father.”
Two months before the conversations, Howe was previously released from prison for offenses involving the sexual abuse of a minor.
Howe will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Luis Batarse prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Regional Leader of Sanctioned Russian Organization Pleads Guilty to Lying to FBIRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of TOMAS IANCHAUSKAS, a regional leader of a sanctioned Russian Organization known as the Tsargrad Society (the “Society”), for lying to the Federal Bureau of Investigation (“FBI”) about his participation in the Society and its predecessor during an in-person interview in the U.S. IANCHAUSKAS pled guilty before U.S. District Judge Coleen McMahon and is scheduled to be sentenced on July 11, 2024.
U.S. Attorney Damian Williams said: “While enjoying the benefits of U.S. permanent residency, Tomas Ianchauskas served as a regional leader of the Tsargrad Society, a sanctioned Russian organization controlled by sanctioned oligarch Konstantin Malofeyev, who was previously indicted by this Office for willfully violating U.S. sanctions laws. On two separate occasions, Ianchauskas lied to the FBI, falsely claiming that he had no involvement in the Tsargrad Society whatsoever, and no involvement in its predecessor entity the Double Headed Eagle Society for the three prior years. Together with our law enforcement partners, we will continue to hold accountable those who seek to undermine critical sanctions put in place to challenge Russia’s aggression.”
According to the Complaint previously filed against IANCHAUSKAS, the Information, and other filings:
IANCHAUSKAS is a U.S. green card holder who principally resides in Russia. By operation of the Ukraine-Related Executive Orders 13660, 13661, 13662, and 14024, IANCHAUSKAS is prohibited from, among other things, making any contribution or provision of funds, goods, or services to or for the benefit of sanctioned Russian oligarch Konstantin Valeryevich Malofeyev or certain Malofeyev-controlled designated entities, including the Society, formerly known as the Double Headed Eagle Society (“DHES”).
The Office of Foreign Assets Control (“OFAC”) initially designated Malofeyev in 2014, explaining that he was one of the main sources of financing for Russians promoting separatism in Crimea and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of, the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk. The Society was designated by OFAC in or about April 2022 for being owned or controlled by, or for having acted or purported to act for or on behalf of, Malofeyev. As described by OFAC, the Society was formerly known as DHES, a Russia-registered organization which has been accused of involvement in espionage on behalf of Russia. OFAC further explained that the Society is part of Malofeyev’s “malign influence ecosystem” and “advocates for Russia to return to a monarchical system of government and counts among its core principles revanchist aims like the ‘reunification of the Russian people’ and ‘returning the Russian Empire to its historical borders’ — to include, in the Society’s definition, Ukraine, Belarus, the Baltic States, Moldova, Central Asia, and the Caucasus.”[1]
Following OFAC’s designations, on or about April 6, 2022, this Office indicted Malofeyev on one count of conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”) and one count of violation of IEEPA.
On or about January 12, 2022, during an in-person interview with FBI agents in the Southern District of New York, IANCHAUSKAS falsely stated, in substance and in part, that he had no involvement in the Society whatsoever, he had no involvement with DHES for approximately three years, and he never had a leadership position at DHES and never did anything on behalf of DHES. In truth and in fact, and as IANCHAUSKAS knew, from at least in or about 2020 through in or about 2022, IANCHAUSKAS served as the head of the Penza Regional Branch of DHES, which in or about November 2020 was renamed the Society. In his leadership capacity, IANCHAUSKAS planned DHES events in Russia and received funding from DHES in or about 2020, among other times.
Subsequent to his interview with the FBI in January 2022, IANCHAUSKAS continued his membership in the Society and provided services to the Society. In or about April 2023, when inviting individuals to attend an event with Malofeyev in Penza, Russia, IANCHAUSKAS wrote, among other things, “we are his regional department,” and distributed a photograph of Malofeyev with the message, in part and substance, “it is thanks to him and his subordinates that Crimea was joined to Russia and Donbass began to be joined.” During a second interview with the FBI on December 22, 2023, IANCHAUSKAS reiterated certain false statements, including that he had never been a member of the Society.
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IANCHAUSKAS, 39, a U.S. green card holder principally residing in Russia, pled guilty to one count of making false statements to special agents of the FBI, which carries a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Thane Rehn and Vladislav Vainberg are in charge of the prosecution.
[1] U.S. Department of Treasury, Press Release “U.S. Treasury Designates Facilitators of Russian Sanctions Evasion,” available online https://home.treasury.gov/news/press-releases/jy0731
Recidivist Sex Offender Sentenced for Possessing Deepfake Child Sexual Abuse MaterialRead the Press Release
A Pennsylvania man was sentenced yesterday to 14 years and seven months in prison for possessing deepfake child sexual abuse material (CSAM) depicting numerous child celebrities.
According to court documents and evidence presented at trial, on two separate occasions, James Smelko, 57, of Pittsburgh, possessed and accessed pictures that digitally superimposed the faces of child actors onto nude bodies and bodies engaged in sex acts. Smelko possessed the pictures at his home in Pittsburgh. After law enforcement discovered the pictures during a search of Smelko’s computer, he was charged for possessing CSAM. While pending trial, Smelko was found to have violated his conditions of pretrial release by again accessing such images after incriminating web searches and images were detected by court-mandated monitoring software installed on his cell phone.
In November 2023, a federal jury in Pittsburgh convicted Smelko of one count of possessing child pornography and one count of accessing with the intent to view child pornography.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania; and Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office investigated the case.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Mitchell for the Western District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Recidivist Sex Offender Sentenced for Possessing Deepfake Child Sexual Abuse MaterialRead the Press Release
A Pennsylvania man was sentenced yesterday to 14 years and seven months in prison for possessing deepfake child sexual abuse material (CSAM) depicting numerous child celebrities.
According to court documents and evidence presented at trial, on two separate occasions, James Smelko, 57, of Pittsburgh, possessed and accessed pictures that digitally superimposed the faces of child actors onto nude bodies and bodies engaged in sex acts. Smelko possessed the pictures at his home in Pittsburgh. After law enforcement discovered the pictures during a search of Smelko’s computer, he was charged for possessing CSAM. While pending trial, Smelko was found to have violated his conditions of pretrial release by again accessing such images after incriminating web searches and images were detected by court-mandated monitoring software installed on his cell phone.
In November 2023, a federal jury in Pittsburgh convicted Smelko of one count of possessing child pornography and one count of accessing with the intent to view child pornography.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania; and Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office made the announcement.
The FBI Pittsburgh Field Office investigated the case.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Mitchell for the Western District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Readout of Justice Department’s Civil Rights Division’s Meeting with Jewish Community StakeholdersRead the Press Release
Marking the first day of Jewish American Heritage Month, the Justice Department convened an interagency meeting with Jewish community stakeholders. Attorney General Merrick B. Garland spoke with those at the meeting and underscored the Department’s commitment to addressing antisemitic hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined the enforcement efforts across the Department and highlighted actions to prevent and combat hate crimes.
Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office of Privacy and Civil Liberties, and Community Oriented Policing Service heard from attending organizations on antisemitic hate crimes and reporting, safety on campuses and in schools, the intersection of antisemitism and democracy and discrimination in employment. Representatives from other federal government agencies were also in attendance, including the Equal Employment Opportunity Commission, and the Departments of Education, Housing and Urban Development, Labor, and Homeland Security.
This convening occurred alongside a precipitous increase in the volume and frequency of threats against Jewish communities across the country, and many Jewish communities expressing fear for their peace and safety.
Combating hate crimes and incidents is among the Department’s top priorities. Today’s meeting represents the Department’s latest efforts to engage with organizations and stakeholders on issues affecting the Jewish community. In March, the Department hosted a community safety briefing for Jewish community stakeholders, during which the Department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin, and protections afforded by Religious Land Use and Institutionalized Persons Act (RLIUPA) local land use decisions.
The Department has also continued to prosecute antisemitic hate crimes, including recent cases involving a former Cornell University student who issued threats to kill or injure Jewish students on campus; a California man who firebombed a Planned Parenthood clinic in Southern California and had planned home invasions of Jewish homes in Los Angeles; a California rideshare driver charged with a federal hate crime for an assault on a passenger who he perceived to be Jewish or Israeli; and an Oregon man charged with hate crimes for defacing a synagogue in Eugene.
If you believe that you or someone else experienced religious or national origin discrimination, report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov. Learn more about the Department’s work on hate crimes here.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Chief District Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person. The sentencing took place on April 26, 2024.
Tristan Alvie Habben, 22, was sentenced to three years and two months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Habben was indicted for Possession of a Firearm and Ammunition by a Prohibited Person by a federal grand jury in October of 2023. He pleaded guilty on January 31, 2024.
The charge relates to Habben, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Taurus model PT740, .40 Smith & Wesson caliber, semi-automatic pistol and rounds of Winchester .40 Smith & Wesson caliber ammunition in Rapid City in August of 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Habben was immediately remanded to the custody of the U.S. Marshals Service.
Possession of Heroin and Illegal Possession of Stolen Firearms Lands Two South Louisiana Men in Federal PrisonRead the Press Release
LAFAYETTE/LAKE CHARLES, La. – United States Attorney Brandon B. Brown the sentencing of two defendants yesterday in both the Lafayette and Lake Charles Divisions of the Western District of Louisiana.
Daryl Beloney, Sr., 50, of Lake Charles, Louisiana, was sentenced by United States District Judge James D. Cain, Jr. to 120 months in prison, followed by 3 years of supervised release, for possession of stolen firearm or ammunition. On April 1, 2022, law enforcement agents with the Combined Anti-Drug Task Force executed a search warrant at a residence on Vanessa Avenue in Calcasieu Parish. During the search, agents discovered a Taurus Millennium PT 145, a Ruger P90, and a Beretta M1934 pistol, in addition to an assortment of controlled substances, including 7.4 pounds of marijuana. Beloney admitted to law enforcement agents that he possessed the firearms and that he had reasonable cause to believe that one of the firearms had been stolen and pleaded guilty to the charge on January 25, 2024.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Combined Anti-Drug Task Force and prosecuted by Assistant United States Attorney Lauren L. Gardner.
In a separate and unrelated case, United States District Judge S. Maurice Hicks, Jr. sentenced Montel Joseph Wilridge, 30, of Lafayette, Louisiana, to 120 months in prison, followed by 4 years of supervised release, for possession with intent to distribute heroin and being a felon in possession of firearms. On March 6, 2021, agents with the Lafayette Parish Sheriff’s Office executed a search warrant at a residence in Lafayette. During their search, agents discovered a large amount of marijuana and other various controlled substances packaged in individual ounce bags, as well as a digital scale and three firearms. Agents later learned that the Sig Sauer P365 and Taurus Millennium pistols recovered had both been reported as stolen. Agents also recovered suspected heroin with an approximately weight of 149 grams. The suspected heroin was sent to the DEA Southeast Laboratory for testing and confirmed to be heroin with a net weight of 141.2 grams. Wilridge pleaded guilty to the two charges on December 28, 2023.
The case was investigated by the DEA, ATF, and Lafayette Parish Sheriff’s Office Narcotics Unit and prosecuted by Assistant United States Attorney Casey Richmond.
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Portland Man Pleads Guilty to Bank Fraud, Identity TheftRead the Press Release
PORTLAND, Maine: A Portland man pleaded guilty today in U.S. District Court in Portland to conspiracy to commit bank fraud and aggravated identity theft.
According to court records, from May to June 2022, Paul Logugune, 22, and a coconspirator broke into unattended vehicles to steal purses and wallets to obtain driver’s licenses and checkbooks. Forged checks were then drawn on the stolen checkbooks and made payable to the names on the stolen licenses. They then recruited others to cash the forged checks at multiple credit union branches in Cumberland County using the stolen IDs to impersonate the ID theft victims.
Logugune faces a maximum sentence of 30 years followed by up to five years of supervised release. He also faces a fine of up to $1 million. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
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Phoenix Man Sentenced to 8.5 Years in Prison for Involvement in Murder-for-Hire PlotRead the Press Release
PHOENIX, Ariz. – Ali Joseph, 44, of Phoenix, was sentenced on Monday by United States District Judge Diane J. Humetewa to 102 months in prison, followed by three years supervised release. Joseph pleaded guilty on December 12, 2023, to one count of Use of Interstate Commerce Facilities in the Commission of Murder for Hire.
Between May and August 2022, while Joseph was involved in contentious child-custody proceedings with the victim, Joseph had multiple in-person and electronic communications with an individual who was a Confidential Human Source (CHS) for the FBI. In these communications with the CHS, Joseph revealed that he was unwilling to share custody of his children with the victim because he believed her to be an “apostate” who would not raise his children on “the right path,” and he expressed his desire to have her murdered. Thereafter, the CHS introduced Joseph to an undercover FBI employee who Joseph believed was a hitman. Joseph offered to pay the “hitman” $3,000 to disguise himself as a homeless person who would attempt to rob and violently attack the victim as she left her workplace. Joseph provided the CHS with a $1,000 down payment along with a piece of paper containing photographs of the victim and her identifying information. Joseph told the CHS that he wanted the “hitman” to stab the victim in the neck to ensure she would not survive the attack, and asked the CHS to notify him when the murder was completed by sending him a funny photo or short video.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution.
CASE NUMBER: CR-22-01070-PHX-DJH
RELEASE NUMBER: 2024-056_Joseph# # #
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.Pennsylvania Man Sentenced to over 4 Years in Federal Prison for Participating in Multi-State Pandemic Unemployment Insurance Fraud SchemeRead the Press Release
DETROIT - A man from Harrisburg, Pennsylvania was sentenced yesterday for his role in a multi-state, million-dollar unemployment insurance fraud scheme aimed at defrauding the U.S. Government and the states of Michigan, Pennsylvania, and Maryland, of funds earmarked for unemployment assistance during the COVID-19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Special Agent in Charge Charles Miller, Internal Revenue Service-Criminal Investigation, and Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Adrian Fluellen, 29, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence handed down by United States District Judge Matthew F. Leitman.
According to court records, Fluellen and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic. The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.
Fluellen pleaded guilty to wire fraud and conspiracy to commit wire fraud in February 2024.
Fluellen and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent. The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Fluellen, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included jewelry, drugs, at least one vehicle, and at least one firearm.
“Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in less money and fewer resources being available for those genuinely in need at that challenging time” said U.S. Attorney Dawn Ison. “Along with our law enforcement partners, our office will continue to work to hold individuals who have committed and are committing such crimes of fraud, greed, and avarice responsible. “
"This sentence underscores the FBI's commitment to investigating complex financial crimes," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice."
“Pandemic Unemployment assistance granted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act was meant to be a lifeline for those affected the most by the global covid-19 pandemic, not as an unlimited well of funds for Adrian Fluellen,” said Special Agent in Charge Charles Miller, Detroit Field Office, IRS Criminal Investigation (CI). “Not only did Mr. Fluellen defraud the US government, but he also stole the identities of hundreds of victims, jeopardizing the personal security of countless hard-working Americans. CI and our law enforcement partners are dedicated to holding accountable those who intend to game the system to feed their own unchecked greed.”
"Adrian Fluellen defrauded multiple state workforce agencies by using stolen identities to obtain unemployment insurance (UI) benefits. We will continue to work with our law enforcement and state workforce agency partners to protect the integrity of these critical benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan. The investigation was conducted jointly by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, and Department of Labor, Office of Inspector General.
Pennsylvania Man Convicted for Kidnapping and Death of Woman Whose Body Was Found in Nevada DesertRead the Press Release
LAS VEGAS – A federal jury convicted a Pennsylvania resident today for kidnapping a woman in Pennsylvania then driving her to Nevada and killing her in the desert.
John Matthew Chapman, 44, was found guilty of one count of kidnapping resulting in death. United States District Judge James C. Mahan scheduled a sentencing hearing for August 2, 2024. Chapman faces the maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents and evidence presented during the eight-day trial, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim in approximately two months, but they had observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found identification cards with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.
On November 15, 2019, Bethel Park Police Department detectives arrested and interviewed Chapman. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania, to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim before their departure to Nevada. Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a bondage photo shoot, Chapman bound the victim’s hands and feet with plastic zip ties and affixed her to a signpost. Then he applied duct tape to her mouth and nose and watched her die from asphyxiation.
The joint investigation revealed that Chapman returned to Pennsylvania. He pretended to be the victim, including using the victim’s Facebook messenger account, and he continuously used the victim’s residence and money following her death.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement.
The FBI Las Vegas Division, the Lincoln County Sheriff’s Office in Nevada, and the Bethel Park Police Department in Pennsylvania investigated the case. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Steven Rose are prosecuting the case.
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Owner of Suburban Chicago Medical Supply Company Convicted in Procurement Fraud Scheme at U.S. Department of Veterans AffairsRead the Press Release
CHICAGO — The owner of a suburban Chicago medical supply company has been convicted of federal fraud charges for paying kickbacks to a U.S. Department of Veterans Affairs employee in exchange for procuring orders of medical equipment.
After a week-long trial in U.S. District Court in Chicago, the jury on Monday found DARREN A. SMITH, 59, of Hazel Crest, Ill., guilty of all eight wire fraud counts against him. Each count is punishable by up to 20 years in federal prison. U.S. District Judge Edmond E. Chang set sentencing for Sept. 10, 2024.
Smith operated a medical distribution company based in Bolingbrook, Ill. Evidence at trial revealed that Smith schemed with a procurement clerk in the Veterans Health Administration Prosthetics Service in Chicago to have the VA order costly medical equipment from Smith’s company in exchange for concealed kickbacks to the clerk. The orders placed by the clerk involved unnecessary and more expensive rentals of certain medical equipment from Smith’s company instead of purchasing the equipment outright, as VA physicians had instructed. From 2017 to 2020, the VA spent more than $2.7 million at Smith’s company and fraudulently overpaid it by more than $1.3 million. In exchange, the clerk pocketed kickbacks from Smith of at least $220,000.
The VA procurement clerk, ANDREW LEE, 68, of Chicago, pleaded guilty to a wire fraud charge prior to trial. He is awaiting sentencing.
Smith’s conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office. The government is represented by Assistant U.S. Attorney Heidi Manschreck and Special Assistant U.S. Attorney Benjamin Christenson.
Orangeburg Man Sentenced to 40 Months in Federal Prison for Violent Assault on Postal WorkerRead the Press Release
COLUMBIA, S.C. — Gregory Ellison, 42, of Orangeburg, was sentenced to 40 months in federal prison after pleading guilty to assault on a federal employee.
Evidence presented to the court showed that on March 20, 2023, a U.S. Postal Mail Carrier stopped to deliver mail at a daycare facility in Orangeburg. Ellison, who had a prior relationship with the carrier, arrived at the facility. When Ellison arrived, the carrier tried to escape into the daycare, but Ellison caught her and began assaulting her inside of the facility where children and workers were present.
The carrier convinced Ellison to leave the premises and talk outside. Once outside, Ellison pinned her against the mail truck, ripped out her earing, and took her cell phone. The carrier managed to distract Ellison long enough to jump into her mail truck and drive away. However, Ellison caught up to the truck, punched the carrier in the head, and pulled her out of the moving vehicle by her hair causing her to land on dirt and concrete resulting in visible injuries. The truck continued to roll and crashed into a nearby ditch.
Further investigation revealed that Ellison previously visited the carrier’s place of employment multiple times in the weeks leading up to the assault. Additionally, Ellison’s social media revealed he had sent multiple messages to the victim before and after the assault threatening to kill her with a firearm. Prior to the assault, he also sent messages to two other individuals asking for a firearm. Ellison has prior convictions for domestic violence 3rd degree and harassment 2nd degree.
“Keeping our citizens, and federal workers, safe is a core to our mission,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Such intentional violence against federal workers will be prosecuted.”
“While this incident stemmed from domestic violence, this sentencing clearly illustrates that individuals who endanger the safety and wellbeing of USPS workers will be held accountable for their actions,” said Tommy D. Coke, Inspector-in-Charge of the Atlanta Division of the U.S. Postal Inspection Service.
United States District Judge Sherri A. Lydon sentenced Ellison to 40 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the U.S. Postal Inspection Service, the Orangeburg County Sheriff’s Office, and the Calhoun County Sheriff’s Office. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
Newburgh Woman Charged with Defrauding Military Charities and the Veteran’s Administration and with Fraudulently Claiming to Be A Purple Heart RecipientRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging SHARON TONEY‑FINCH with defrauding military charities and the Veteran’s Administration (“VA”) and with fraudulently claiming to have received a Purple Heart. TONEY-FINCH was arrested today and will be presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Damian Williams said: “As alleged, Sharon Toney-Finch falsely claimed to have received a military award bestowed on those wounded or killed in the line of duty, and she used this lie to drive donations to her charitable organization, which in fact was a ruse the defendant allegedly used to line her own pockets. The defendant’s alleged crimes are dishonorable to the highest degree, and I thank the career prosecutors of this Office and our law enforcement partners for bringing today’s charges and exposing Toney-Finch’s attempt to profit on stolen valor.”
FBI Assistant Director in Charge James Smith said: “Sharon Toney-Finch allegedly engaged in a series of lies in which she misappropriated donations for military charities and falsely nominated herself as a Purple Heart recipient to receive illicit disability benefits. Acts of stolen valor are especially egregious as they distract from sacrifices of those who were truly injured defending our nation. The FBI does not tolerate those who choose to perpetuate fraudulent schemes at the expense of our armed forces and will continue to aggressively investigate those who choose to do so.”
As alleged in public court filings and the Indictment unsealed today in White Plains federal court:[1]
Between at least July 2019 through about September 2023, TONEY-FINCH engaged in a scheme to defraud donors to her charitable organization by falsely claiming that donation funds would be spent solely to support homeless military veterans, when in fact she spent the funds on personal expenses. She further falsely claimed that she survived and was injured in a terrorist attack to a vehicle convoy in Iraq in or about March 2010 and that she is a Purple Heart recipient.
Between at least March 2016 through the present, TONEY-FINCH knowingly obtained hundreds of thousands of dollars in disability benefits from the VA by fraudulently representing that, during her military service in Iraq, she sustained combat-related injuries during a mortar attack in or about February 2010 and a vehicle rollover that occurred in or about March 2010.
Between about August 2021 through the present, TONEY-FINCH has falsely claimed that she is a Purple Heart recipient in statements made to donors to her charitable organization, an application to the New York Department of Motor Vehicles to obtain a vanity license plate, and an application to the National Purple Heart Hall of Honor to obtain a medallion and recognition on their website. TONEY-FINCH has also used, possessed, and exhibited a military discharge certificate that had been altered to reflect falsely that she is a Purple Heart recipient.
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TONEY-FINCH, 43, of Newburgh, New York, is charged with wire fraud, which carries a maximum potential sentence of 20 years in prison; theft of government funds, which carries a maximum potential sentence of 10 years in prison; stolen valor, which carries a maximum potential sentence of one year in prison; and altering military discharge paperwork, which carries a maximum potential sentence of one year in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of the FBI Hudson Valley White Collar Crime Task Force, the Orange County District Attorney’s Office, the Orange County Sheriff’s Office, the U.S. Department of Veterans Affairs – Office of Inspector General, and the U.S. Army Criminal Investigation Division.
This case is being handled by the Office’s White Plains Division. Assistant U. S. Attorneys Ryan W. Allison and Margaret N. Vasu are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is 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.
Morgantown Man Charged with Theft of Federal Broadband FundingRead the Press Release
CLARKSBURG, WEST VIRGINIA – The owner of Clearfiber, Inc., an internet service provider in Monongalia County, has been charged with money laundering.
Timothy Chad Henson, 35, of Morgantown, West Virginia, allegedly defrauded the United States Department of Agriculture (USDA). According to court documents, the USDA’s Community Connect Program offered grants to eligible applicants providing broadband services to rural areas. On behalf of Clearfiber, Henson applied and was awarded $1.96 million to offer high-speed internet services in Monongalia and Marion Counties. Henson submitted false invoices to the USDA to receive more than $340,000. Henson then transferred $322,900 into another bank account for his personal use.
Henson faces up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Henson is scheduled for an initial appearance on May 29 before U.S. Magistrate Judge Michael John Aloi.
Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government.
This case was investigated by the Internal Revenue Service-Criminal Investigations.
An information is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Montgomery County Resident Sentenced for Transmitting Threats to North Carolina Jewish OrganizationRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 18 months in prison, after pleading guilty to one count of communicating threats in interstate commerce, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
JEFFREY SCOTT HOBGOOD, age 64, of Troy, North Carolina, was sentenced to an 18-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC, to be followed by a 3-year term of supervised release and 20 hours of community service weekly for twelve weeks. He pleaded guilty on January 3, 2024, to communicating threats in interstate commerce, a violation of Title 18, United States Code, Section 875(c).
According to court records, on October 11, 2023, HOBGOOD sent a threatening email to a Jewish organization located in Charlotte, North Carolina, addressing the recipients as “Israeli jews of David star,” and threatening to “take every one of you out,” writing that “you semite [sic] pieces of s- will be annihilated.” Two days later, HOBGOOD sent a second threatening email to the same organization, again making a reference to the religion of the recipients. In his plea agreement, HOBGOOD admitted that he selected the targets of his offense of conviction because of the actual and perceived religion of the victims.
"It is abhorrent to threaten someone with violence because of who they are or how they worship. The FBI worked tirelessly with prosecutors from the U.S. Attorney’s Office for the Middle District Of North Carolina to ensure Jeffrey Hobgood could not offer excuses for his hate-filled messages and would instead, serve time in federal prison," said Robert M. DeWitt, the FBI Charlotte Special Agent in Charge.
The case was investigated by the Federal Bureau of Investigation’s civil rights and public corruption squad, the Troy Police Department, and the Charlotte-Mecklenburg Police Department. The case was prosecuted by Assistant United States Attorneys JoAnna G. McFadden and Ashley R. Waid.
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Michigan Woman Sentenced to 78 Months in PrisonRead the Press Release
FORT WAYNE – Erin Alldredge, 42 years old, of Sturgis, Michigan, was sentenced by United States District Court Chief Judge Holly A. Brady, after pleading guilty to three counts of Distribution of Methamphetamine, announced United States Attorney Clifford D. Johnson.
Alldredge was sentenced to 78 months in prison followed by 3 years of supervised release.
According to documents in the case, on three separate occasions in September 2022, Alldredge sold 180 grams of pure methamphetamine in Howe, Indiana.
This case was investigated by the Federal Bureau of Investigation with assistance from the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Mexican citizen imprisoned for downloading sexually explicit videos of minorsRead the Press Release
McALLEN, Texas – A 32-year-old Mexican man residing in Donna has been sentenced for using peer-to-peer (P2P) applications to download child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Angel DeJesus Torres pleaded guilty Jan. 19.
Chief U.S. District Judge Randy Crane has now ordered Torres to serve 72 months in federal prison. At the hearing, the court heard additional information that Torres used numerous P2P applications to download child pornography. Torres was found in possession of 43 videos child pornography which equated to 3,225 images including prepubescent children aged four to nine as well as minors subjected to acts of bondage. Torres was further ordered to pay $45,000 in restitution to the victims. He will also serve five years on supervised release following completion of his prison term. Torres will also be ordered to register as a sex offender and as a non-U.S. citizen, he is expected to face removal proceedings.
In October 2018, authorities conducted an investigation identifying persons using P2P software to traffic in child pornography. During that time, they identified an IP address in Donna offering to participate in the distribution of images and child pornography.
In May 2019, authorities executed a federal search warrant at the address in Donna and identified Torres as one of the occupants. At that time, law enforcement seized two cellphones including Torres’ personal phone. Forensic analysis of Torres’ phone revealed 43 videos of child pornography including prepubescent minors under the age of 12.
Torres admitted to frequently downloading, receiving and possessing child pornography.
Torres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation. Assistant U.S. Attorney Alexa D. Parcell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mexican National Pleads Guilty to Cocaine Conspiracy After Officers Seize $1 Million Worth of Cocaine in I-70 Traffic StopRead the Press Release
KANSAS CITY, Mo. – An Oklahoma City, Oklahoma, man has pleaded guilty to his role in a conspiracy to distribute cocaine after law enforcement officers seized more than $1 million worth of cocaine from a rental truck that was stopped on Interstate 70 in Lafayette County, Mo.
Luis Gerardo Nieto-Acosta, 37, a citizen of Mexico, pleaded guilty before U.S. District Judge Stephen R. Bough on Monday, April 29, to one count of conspiracy to distribute cocaine, one count of possessing cocaine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime.
Nieto-Acosta, the fourth and final defendant to plead guilty in this case, entered his plea on the day his trial was scheduled to begin. Co-defendants Wilmer Antony Mendoza-Perez, 25, a citizen of Honduras, and Miguel Angel Anguiano-Viera, 27, both of Oklahoma City, and Jose Eduardo Acosta-Bermejo, 29, a citizen of Mexico, of Bethany, Okla., also have pleaded guilty to their roles in the drug-trafficking conspiracy.
An officer with the Missouri State Highway Patrol stopped Mendoza-Perez on Jan. 24, 2023, as he was driving a Penske rental truck eastbound on Interstate 70 in Lafayette County. A Toyota Highlander, later determined to be occupied by Nieto-Acosta and Acosta-Bermejo, attempted to prevent the officer from getting behind the Penske truck to initiate a stop. When the Penske truck pulled over, the Toyota Highlander continued traveling eastbound on Interstate 70.
According to the rental agreement for the Penske truck, it was rented in Oklahoma City on Jan. 20, 2023, by a woman who was not present in the truck, and scheduled to be returned to Fullerton, California, on Jan. 26, 2023. Mendoza-Perez could not explain why he was driving the truck in Missouri.
The officer searched the rear cargo area of the truck and found two boxes that contained a total of 34 kilograms of cocaine. The average street price in the Kansas City metropolitan area for a kilogram of cocaine was approximately $30,000 at that time, which would make 34 kilograms of cocaine worth approximately $1,020,000.
Mendoza-Perez was arrested. The Toyota Highlander was found abandoned at the Pilot truck stop a few miles away. Investigators later searched the Highlander and found two Taurus 9mm semi-automatic handguns, with four magazines and 9mm ammunition.
Investigators reviewed surveillance video at the truck stop, which showed a third vehicle, a Honda Pilot occupied by Anguiano-Viera and a juvenile female, arrived at the truck stop and picked up Nieto-Acosta and Acosta-Bermejo. A short time later, this vehicle was located, and the occupants arrested when they stopped at a convenience store in Odessa, Mo.
Under federal statutes, Nieto-Acosta is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Robert M. Smith and John C. Constance. It was investigated by the Lafayette County, Mo., Sheriff’s Office, the Kansas City Airport Police, the Missouri State Highway Patrol, and the Drug Enforcement Administration.
Manhattan Man Charged with Running $43 Million Ponzi SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging IDIN DALPOUR with wire fraud in connection with a multi-year Ponzi scheme that defrauded investors of at least $43 million. DALPOUR was arrested this morning and will be presented in Manhattan federal court before U.S. Magistrate Judge Barbara Moses later today.
U.S. Attorney Damian Williams said: “Idin Dalpour told investors that they could reap huge returns by investing through him in a purported Las Vegas hospitality business and a crypto trading operation. As alleged, Dalpour’s promises were a mirage, and he was running a classic Ponzi scheme by paying investors purported returns with other investors’ money. Instead of using investors’ funds as promised, Dalpour spent lavishly on himself, which included racking up gambling losses of approximately $1.7 million and paying for his children’s private school tuition. Now, Dalpour’s gamble has him facing federal criminal charges for his alleged crimes.”
FBI Assistant Director in Charge James Smith said: “For four years, Idin Dalpour allegedly used false promises of high returns to entice victims to invest in his purported hospitality and cryptocurrency trading enterprises, but in reality, used these payments to satisfy other debts or personal expenditures. Cheating investors of millions severs the trust of clients and credibility of prospective advisors, both of which are vital to the success of the investment market. Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others.”
According to allegations contained in the Indictment:[1]
From at least approximately 2020 through April 2024, DALPOUR ran a Ponzi scheme targeting investors located in the U.S. and abroad. DALPOUR solicited investments from victims through an entity that he controlled (“Entity-1”), which purported to have an interest in two business ventures: a Las Vegas hospitality enterprise and a cryptocurrency trading enterprise. In reality, DALPOUR did not use investors’ funds as promised and paid earlier investors purported returns using funds that were contributed by later investors. DALPOUR defrauded investors of at least $43 million over the course of the scheme.
As part of the purported Las Vegas hospitality enterprise, DALPOUR falsely represented that Entity-1 had contracted with a management company (the “Management Company”) and/or a prominent Las Vegas hotel (the “Hotel”) to rent condominiums to Las Vegas visitors for a fee. DALPOUR further claimed that the Hotel arranged entertainment packages for these visitors, including food, nightlife, and sports events, and that DALPOUR and Entity-1 received a portion of these proceeds. DALPOUR also falsely claimed that he owned shares in several Las Vegas-based sports stadiums (the “Stadiums”) and would receive a portion of concessions revenues when these visitors went to the Stadiums.
DALPOUR lured investors into the Las Vegas hospitality enterprise through false promises of lucrative returns beginning at 42% interest per year. In order to further the fraud, DALPOUR provided certain investors with fabricated contracts between Entity-1, the Management Company, and the Stadiums. DALPOUR also fabricated email correspondence from the Hotel falsely claiming that his company, Entity-1, was owed millions of dollars and created phony bank statements overstating the assets in Entity-1’s bank accounts. DALPOUR also claimed that investors’ money was safe because it was insured and/or would be held in escrow. These statements were false.
In connection with the Ponzi scheme, DALPOUR further misrepresented a so-called cryptocurrency trading enterprise that DALPOUR purportedly operated. As part of the cryptocurrency trading scheme, DALPOUR falsely represented to investors that he purchased cryptocurrency at wholesale and sold the cryptocurrency at a profit to retail investors. As with the Las Vegas hospitality enterprise, DALPOUR promised investors lucrative annual returns and that their money was insured. These statements were false.
In reality, DALPOUR did not use investor money for the Las Vegas hospitality enterprise or the cryptocurrency trading enterprise. Instead, DALPOUR used investor money to pay other investors their expected returns, as well as to pay for his own personal expenses. These personal expenses included, among other things, approximately $1.7 million in gambling losses, over $400,000 from Art Direct, and private school tuition for his children.
DALPOUR also lied to investors when they sought to recoup their money. Among other things, DALPOUR claimed that his company’s funds were temporarily frozen because the Hotel’s servers had been hacked and that the Nevada-based bank allegedly holding Entity-1’s funds would not release the proceeds. In fact, Entity-1 did not even have a bank account with the Nevada-based bank, as DALPOUR well knew.
In or about November 2023, a group of victims confronted DALPOUR about the Ponzi scheme. During this conversation, DALPOUR admitted that he had lied to the victims about the operation of the Las Vegas hospitality business, that he had not used investor money for its intended purpose, and that he had fabricated contracts and bank records that he had provided to the victims. DALPOUR further stated, in his own words, “[w]hat you already have, you have, you can put me in jail now. Like right now.”
If you believe you are a victim of these crimes, please contact the FBI at 1-800-CALL-FBI and reference this case.
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DALPOUR, 39, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Mathew Andrews and Kingdar Prussien are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendant is 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.