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Newest first across public DOJ and U.S. Attorney press releases.
1 May 2024
Broken Bow Resident Sentenced for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devon Leroy Battiest, age 43, of Broken Bow, Oklahoma, was sentenced to 168 months in prison for one count of Murder in Indian Country – Second Degree.
The charge arose from investigations by the Broken Bow Police Department, the Choctaw Nation Lighthorse Tribal Police, and the Federal Bureau of Investigation.
On January 17, 2024, Battiest pleaded guilty to the charge. According to investigators, on May 6, 2023, Battiest entered a Broken Bow residence armed with a firearm, then shot and killed a guest at the residence.
The crimes occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee. Battiest will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Richard J. Lorenz represented the United States.
Box Elder Man Sentenced to Life in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Box Elder, South Dakota, man convicted of Sexual Exploitation of a Minor, Attempted Sexual Exploitation of a Minor, Enticement of a Minor Using the Internet, Attempted Enticement of a Minor Using the Internet, Receipt of Child Pornography, and Attempted Receipt of Child Pornography. The sentencing took place on April 26, 2024.
Vincent Alberto Barrios, 43, was sentenced to life in federal prison, followed by five years of supervised release, and ordered to pay a $600 special assessment to the Federal Crime Victims Fund. Judge Schreier imposed a 30-year sentence on each Sexual Exploitation charge, a life sentence on each Enticement charge, and a 20-year sentence on each Receipt charge. Judge Schreier further ordered the sentences to run concurrently.
Barrios was indicted by a federal grand jury in August of 2023. He was found guilty of all charges following a three-day jury trial in December of 2023.
Barrios was arrested and federally indicted following the undercover sex trafficking operation conducted during the 2023 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and sexually explicit text messages with a person Barrios believed to be a 13-year-old girl, but who was in fact an undercover agent, Barrios proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Barrios went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest. During this time Barrios was also chatting with two other undercover agents Barrios believed to be 14-year-old girls. After a review of Barrios’ phone, law enforcement located a text message conversation with a local 14-year-old girl and 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, South Dakota Internet Crimes Against Children Task Force, HSI, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Barrios was immediately remanded to the custody of the U.S. Marshals Service.
Biloxi Man Sentenced to over 11 years in Prison for Possession of Child PornographyRead the Press Release
Gulfport, Miss. -- A Biloxi, Mississippi, man was sentenced to 136 months in prison, followed by a lifetime of supervised release, for possession of child pornography.
Christopher Lee Parker, 36, was sentenced on April 12, 2024, in U.S. District Court in Gulfport. In addition to Parker’s term of imprisonment, the Court ordered restitution for victims in the amount of $31,000, and imposed an assessment of $2,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
According to court documents, Parker was identified in Cyber Tipline Reports from the National Center for Missing and Exploited Children as the user of social media accounts discussing the trading of child exploitation materials. These Cyber Tipline Reports were forwarded to law enforcement for investigation. A federal search warrant obtained for Parker’s Biloxi residence resulted in the recovery of Parker’s cell phones, in which Parker, at times using mobile applications, possessed over 5,000 visual depictions, in still and video formats, of minors engaging in sexually explicit conduct with some images including minors who had not reached 12 years of age.
Parker was indicted by a federal grand jury in April of 2023. He pled guilty on December 18, 2023, to possession of visual depictions of minors engaging in sexually explicit conduct.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations made the announcement.
This case was investigated by Homeland Security Investigations with the assistance from the Cyber Crime Division of the Mississippi Attorney General’s Office and the Biloxi Police Department.
Assistant U.S. Attorney Andrea Jones prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit please visit www.projectsafechildhood.gov.
Beckley Man Pleads Guilty to Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Leon Eugene Smith Jr., 43, of Beckley, pleaded guilty today to distribution of a fentanyl.
According to court documents and statements made in court, on December 15, 2023, Smith sold a controlled substance containing fentanyl to a confidential informant in the Lenark area of Raleigh County. Smith admitted to the transaction and further admitted to selling controlled substances containing fentanyl to a confidential informant on three occasions between December 19, 2023, and January 3, 2024, all in the Lenark area.
On January 8, 2024, law enforcement officers executed a search warrant at Smith’s residence. Officers found fentanyl, marijuana, a pill bottle containing oxycodone, a pill bottle containing black tar heroin, three cell phones, a security system, $1,170 and scales, money counters, vacuum sealers, and other items of drug paraphernalia. Officers also found six long guns, two pistols, a 50-round drum magazine, a 30-round drum magazine, two 30-round rifle magazines and assorted ammunition. Smith admitted to possessing the firearms, magazines and ammunition and further admitted that the drug paraphernalia items were used in the distribution of fentanyl.
Smith is scheduled to be sentenced on August 23, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Alexander A. Redmon is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-22.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Michael Dwayne Kelly II, 34, of Beckley, pleaded guilty today to possession with intent to distribute fentanyl, cocaine, and heroin.
According to court documents and statements made in court, on January 27, 2022, Kelly sold approximately 6.9 grams of fentanyl to a confidential informant for $700 at Kelly’s residence in Beckley. Kelly admitted to the transaction and further admitted to selling approximately 28 grams of fentanyl to the confidential informant for $500 at his residence, on February 10, 2022.
Law enforcement officers executed a search warrant at Kelly’s residence on February 17, 2022, and seized 189 grams of fentanyl, 56 grams of cocaine, 27 grams of heroin, a Ruger LCP .380-caliber handgun, a Taurus model 22LR handgun, a Sig Sauer model 1911 .45-caliber handgun, a Glock model 42 .380-caliber handgun and $13,046. Kelly admitted that he intended to distribute the seized drugs in and around the Southern District of West Virginia.
Kelly is scheduled to be sentenced on August 23, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Co-defendant Savannah Elizabeth Todd, 31, of Beckley, awaits sentencing after pleading guilty to possession with intent to distribute fentanyl, cocaine and heroin on March 1, 2024.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-163.
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Annapolis Resident Indicted on Sexual Exploitation of a Minor ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Annapolis, Maryland, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
The nine-count Indictment named George Luton, 49, as the sole defendant.
According to the Indictment, on multiple occasions in March 2024, Luton attempted to and did use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and also attempted to do the same on another occasion. The Indictment further charges that, on April 6, 2024, Luton traveled in interstate commerce with a motivating purpose of engaging in illicit sexual conduct with another person.
The law provides for a sentence of up to 30 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Luton is detained pending trial.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Kiskiminetas Township Police Department, and Southern Armstrong Regional Police Department conducted the investigation leading to the Indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alma Man Convicted for Providing False Statement to Federal AuthoritiesRead the Press Release
United States Attorney Susan Lehr announced that David Sikes, 69, of Alma, Nebraska, was sentenced on May 1, 2024, in federal court in Lincoln, Nebraska for providing a false statement. Senior United States District Judge John M. Gerrard sentenced Sikes to 36 months’ probation. There is no parole in the federal system. Sikes was additionally ordered to pay a $1,000 fine.
In January of 2018, Jeffrey Sikes, son of David Sikes, was set to be sentenced in the United States District Court for wire fraud crimes. Jeffrey failed to appear at his sentencing and arrest warrants were issued. Following his failure to appear, David Sikes was contacted by federal law enforcement on multiple occasions in attempts to determine Jeffrey’s whereabouts. David indicated to officers he did not know where Jeffrey was located. However, David knew where Jeffrey was living as a fugitive with his family. David even visited Jeffrey where he was hiding in Alabama on at least one occasion before Jeffrey was arrested for further federal crimes. The investigation also revealed that David supported Jeffrey financially while he was living as a fugitive in Alabama.
This case was investigated by the Federal Bureau of Investigation.
30 April 2024
Wilkes-Barre Accountant Pleads Guilty to Embezzling over $1.5 Million from EmployerRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lawrence Malachefski, age 39, of Wilkes-Barre, PA, pleaded guilty today before United States District Judge Malachy E. Mannion, to wire fraud.
According to United States Attorney Gerard M. Karam, the criminal Information to which Malachefski pleaded guilty alleges that, from approximately March 2023 to June 2023, while serving as the financial Controller of a Wilkes-Barre based Heating, Ventilation and Air Conditioning (HVAC) business, Malachefski embezzled over $1.5 million from his employer, converting the funds to his own personal possession and use.
Malachefski acknowledged that the monetary loss attributable to his conduct was greater than $1.5 million and that he abused a position of private trust in a manner that significantly facilitated the commission of his crime. Malachefski also agreed to make restitution to the victim-company in the amount of $1,586,557.45.
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division. Assistant U.S. Attorney Jeffery St John is prosecuting the case.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Wayne Man Sentenced to 33 Months for Smuggling Methamphetamine Pills into U.S., Lying to DEA Task Force OfficerRead the Press Release
BANGOR, Maine: A Wayne man was sentenced in U.S. District Court in Bangor to attempting to smuggle methamphetamine pills into the U.S. and intentionally making false statements to a federal law enforcement agent.
U.S. District Judge John A. Woodcock, Jr. sentenced Victor Sousa, 25, to 33 months in prison to be followed by three years of supervised release. Sousa pleaded guilty to the drug charges on September 30, 2022, and to making false statements on December 5, 2023.
According to court records, in July 2019, Sousa crossed the U.S. border into Canada, returning a few hours later. Sousa was observed fidgeting with his pants and was stopped for secondary inspection. U.S. Customs and Border Protection officers discovered 93 pills in his underwear. Sousa admitted to investigators that he had gone to Canada to purchase the pills, which weighed a total of 41.12 grams and contained a mixture of methamphetamine and caffeine.
In November 2022, while in jail awaiting sentencing on the drug charges, Sousa was questioned by a Task Force Officer with the U.S. Drug Enforcement Administration (DEA) regarding two subjects of a federal narcotics investigation. After denying that he knew either subject, Sousa called one of the subjects from jail multiple times. Court records further indicated that Sousa had previously lived with the subject whom he called from the jail, and that the second subject had supplied Sousa with narcotics in the past.
The DEA investigated the case.
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Ventura County Man and L.A. County Man Charged in Alleged Multimillion-Dollar ‘Pump-and-Dump’ Securities Fraud SchemeRead the Press Release
LOS ANGELES – An indictment was unsealed today charging two California men for allegedly conspiring to defraud investors in a multi-year scheme involving the acquisition and sale of Airborne Wireless Network (stock ticker: ABWN) securities.
Kalistratos “Kelly” Kabilafkas, 48, of Moorpark, and Jack Edward Daniels, 74, of Agoura Hills, are charged with one count of conspiracy and one count of securities fraud.
Kabilafkas’ arraignment is scheduled for this afternoon in United States District Court in downtown Los Angeles. Daniels’ arraignment is scheduled for May 3 in U.S. District Court in downtown Los Angeles.
According to the indictment, Kabilafkas and Daniels conspired to secretly acquire the freely tradeable shares of a publicly traded shell company that they subsequently rebranded as Airborne. To acquire the company, Kabilafkas allegedly misappropriated a $474,500 sham charitable donation and used the funds to secretly buy the shell company’s stock. Following the acquisition, together with Kabilafkas, Daniels—Airborne’s president and sole director – allegedly filed false reports with the Securities and Exchange Commission to conceal from investors that Kabilafkas secretly held all of Airborne’s stock.
Without disclosing Kabilafkas’s acquisition of Airborne’s shares, Kabilafkas and Daniels allegedly used investors’ funds to orchestrate a multimillion-dollar advertising campaign designed to inflate Airborne’s stock price. During the advertising campaign, Airborne’s share price increased significantly for short periods of time, and Kabilafkas allegedly capitalized on the stock price spikes to sell millions of shares of Airborne stock and reap millions of dollars in ill-gotten gains.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Kabilafkas and Daniels each face a maximum penalty of five years in prison for conspiracy and 20 years in prison for securities fraud.
The United States Postal Inspection Service, the FBI, and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorney James C. Hughes of the Major Frauds Section and Trial Attorneys Theodore M. Kneller and Matt Kahn of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Vaughn man who distributed meth from home near school sentenced to more than three years in prisonRead the Press Release
GREAT FALLS — A Vaughn man was sentenced today to three years and eight months in prison, to be followed by three years of supervised release, after he admitted to distributing methamphetamine from his home near an elementary school and having firearms, U.S. Attorney Jesse Laslovich said.
The defendant, Donnovan Orville Horton, 52, pleaded guilty in January to possession with intent to distribute meth and to drug user in possession of firearms.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in December 2022, officers with the Russell Country Drug Task Force learned that an individual was obtaining meth from Horton. Law enforcement then made a series of purchases of meth from Horton, once in a parking lot in Great Falls and three times from his home in Vaughn. Law enforcement executed a search warrant on Horton’s residence, which is less than 200 feet and across the street from an elementary school. Officers located meth, drug paraphernalia, equipment for making hash oil and four firearms.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The Russell Country Drug Task Force and FBI 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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U.S. Trustee Program Obtains Sanctions Against Consumer Bankruptcy Attorneys Involved in Real Estate SchemesRead the Press Release
The Justice Department’s U.S. Trustee Program (USTP) recently brought enforcement actions against two consumer bankruptcy attorneys who hid their involvement in schemes to acquire their clients’ homes.
On Feb. 20, the Bankruptcy Court for the Southern District of California entered a stipulated judgment permanently barring attorney David Speckman from representing clients in bankruptcy cases in the district. Speckman also agreed to pay a fine of $3,500 in the stipulated judgment, which resolved an adversary complaint by the U.S. Trustee’s San Diego office.
And the Bankruptcy Court for the Northern District of Georgia entered an order on April 5 prohibiting Stanley Kakol and his law firm from filing any new bankruptcy cases in the district for one year. The court’s order, which granted a motion for sanctions by the U.S. Trustee’s Atlanta office, also permanently barred Kakol from filing any bankruptcy case where he would be paid by a party other than the debtor.
“Consumers who have fallen on hard times rely on their attorneys to help navigate the way to a fresh start,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “Attorneys who abuse this trust for their own gain have no place in bankruptcy court.”
In the California case, Speckman failed to disclose property transfers and other transactions involving his clients and Prado Investments LLC, a company owned by Speckman’s wife. Among other things, Speckman drafted agreements for two debtor clients to sell their homes to Prado during their chapter 13 bankruptcies without seeking court authorization and filed several false and misleading documents with the court that failed to disclose the transfers. In another chapter 13 case, Speckman failed to list his client’s debt to Prado and failed to identify Prado as the junior lienholder on the debtor’s home. In the stipulation, Speckman agreed that his conduct violated the Bankruptcy Code, federal and local rules of bankruptcy procedure and California attorney ethical rules.
Kakol, the attorney in Georgia, filed two skeletal chapter 13 petitions for an 80-year-old widower at the behest of CMNC Homes LLC, which paid Kakol’s fees. The petitions were intended to delay a foreclosure on the debtor’s home and allow CMNC to complete a purchase of the home for well below market value. The property went into foreclosure after the debtor’s wife died, triggering a default on a reverse mortgage on which the wife was the sole borrower. After the second bankruptcy case was dismissed, the debtor’s family contacted a legal aid attorney who helped the debtor remain in the home through a federal program for non-borrowing spouses of deceased borrowers. In its order imposing filing restrictions, the bankruptcy court noted Kakol’s history of disciplinary action for similar misconduct in other cases including failure to properly disclose his compensation, failure to verify debtors’ signatures on bankruptcy paperwork and inadequate representation. The bankruptcy court has opened a separate proceeding to address at least 17 similar cases in which Kakol took payment from CMNC.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
U.S. Attorney’s Office Highlights Focus on Gun Safety Efforts in VermontRead the Press Release
Burlington, Vermont – On April 30, 2024, the United States Attorney’s Office for the District of Vermont hosted a press conference to highlight the efforts of the GunSafeVT initiative and to discuss how Vermont is promoting secure gun storage and how secure gun storage can help address the many types of gun violence in the state.
U.S. Attorney Nikolas P. Kerest described the initiative’s accomplishments over the past year, which included two PSAs explaining the importance of secure storage, launch of the gunsafevt.org website, promotion of Vermont State Police’s program to have Federal Firearms Licensees serve as secure gun storage locations, and the distribution of over 4,000 free, cable gun locks around the state. U.S. Attorney Kerest also explained updates to the gunsafevt.org website, partnerships with the Howard Center and libraries around the state for effective gun lock distribution, and plans to distribute additional gun locks over the next year.
Also at the press conference, Vermont Attorney General Charity Clark spoke about Vermont’s secure gun storage statute, relief from abuse orders, extreme risk protection orders, and the importance of secure gun storage in preventing domestic violence. Mark Margolis of the Howard Center and Dr. Rebecca Bell of UVM Medical Center and the Vermont Medical Society both explained how secure gun storage helps reduce the likelihood of suicide involving firearms. Bureau of Alcohol, Tobacco, Firearms, and Explosives Resident Agent in Charge Alex Schmidt addressed the connection between unsecured and stolen firearms and crime around Vermont.
This gun safe storage initiative is the result of collaboration among many partners, including the U.S. Attorney’s Office for the District Vermont, the UVM Medical Center, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Vermont Attorney General’s Office, the Vermont Sheriffs’ Association, the Vermont Department of Fish and Wildlife, Vermont’s Office of the Director of Violence Prevention, the Howard Center, the Vermont Medical Society, the Vermont Department of Children and Families, and the Vermont Library Association.
U.S. Attorney Nikolas P. Kerest thanked all of the initiative partners for their important contributions and also stated, “Secure gun storage accomplishes many positive things. Secure gun storage keeps people safe in times of crisis, keeps guns out of the wrong hands, and keeps your gun safe. In short, secure gun storage is smart gun storage.”
All of the relevant information related to this secure storage initiative is compiled on the website – www.gunsafevt.org.
U.S. Attorney’s Office Collects More Than $22 Million in Fiscal Year 2023Read the Press Release
Jackson, MS - U.S. Attorney Todd W. Gee announced today that in Fiscal Year 2023 the Southern District of Mississippi collected more than $22 million in criminal and civil matters. Of that amount, approximately $10,157,069 was collected in civil and criminal asset forfeiture actions, approximately $4,176,826 was collected in criminal debts owed to the United States and victims, and approximately $8,089,178 was collected through Affirmative Civil Enforcement (ACE).
“The Department of Justice collected millions of dollars from criminals and civil litigants in Mississippi that will now be used to help victims get back on their feet, ensure law enforcement agencies have additional resources to fight crime, and restore to the government monies wrongfully procured through waste, fraud, abuse or failure to adhere to regulations,” said U.S. Attorney Gee.
Out of the funds recovered by financial litigation, $2,025,799 was returned directly to victims of criminal activity in the district through restitution imposed in criminal cases. Moreover, nearly $400,000 of additional money was recovered and returned directly to victims of email fraud in the district through civil asset forfeiture cases.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The mission of the asset forfeiture program is to deprive criminals of the proceeds of their crimes, including the assets purchased with those proceeds, and to disrupt criminal activity. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
ACE cases allow recovery of tax payor dollars lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights, or environmental law. One of the primary tools used in ACE cases is the False Claims Act (FCA). The FCA allows recovery of up to three times the damages suffered by the United States, plus monetary penalties for each violation. Many of these cases result from whistleblower lawsuits, which allows individuals or entities who have inside information about fraudulent conduct to file qui tam lawsuits on behalf of the United States. Some of the areas where the office has successfully employed the FCA include fraud perpetrated on federal healthcare programs such as Medicare, Medicaid, and TRICARE, the COVID-19 Paycheck Protection Program (“PPP”), the Department of Defense military programs and contracts, and federal grant programs.
In the United States Attorney’s Office for the Southern District of Mississippi, the asset forfeiture program and the financial litigation program are part of the office’s Asset Recovery Unit within the Criminal Division, which is coordinated by Assistant United States Attorney Clay B. Baldwin. Multiple Assistant United States Attorneys in the Civil Division handle ACE matters and cases.
U.S. Attorney Announces Available Resource on Fiscal Year 2024 Grant FundingRead the Press Release
MADISON, WIS. - U.S. Attorney Timothy M. O’Shea announced that the U.S. Department of Justice has numerous federal funding opportunities for fiscal year 2024. The attached document is an overview to help increase awareness about current grant opportunities and help make it easier for law enforcement and community groups to find and access needed information during the grant writing process. A copy of this document can also be found on the Office’s website, listed above.
Attachment
Grant Guidance Document.
Two Men Sentenced for Setting Inmate on Fire in Ottawa County JailRead the Press Release
TULSA, Okla. – This week, U.S. District Judge Gregory K. Frizzell sentenced Justin Randall Gering, 30, of Fairland, and Tyler Levi Tavis, 23, of Miami for Arson of Property of an Institution and Organization Receiving Federal Financial Assistance. Judge Frizzell ordered both men to serve 60 months of imprisonment, followed by 1 year of supervised release.
According to court records, in Dec. 2022 Tavis and Gering were in Ottawa County Jail. They were caught on video surveillance wrapping a sleeping inmate in toilet paper and setting it on fire. The sleeping inmate was covered by a county issued fire-retardant blanket, which kept him from being severely burned. Other inmates at the jail responded quickly to put the fire out, keeping it from spreading further within the jail.
Gering and Tavis will remain in custody pending transfer to the U.S. Bureau of Prisons. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ottawa County Sheriff’s Office investigated the case. Assistant U.S. Attorney George Jiang prosecuted the case.
Two Men Charged in Multimillion-Dollar Pump and Dump Securities Fraud SchemeRead the Press Release
An indictment was unsealed today in the Central District of California charging two California men with conspiring to defraud investors in a multi-year scheme involving the acquisition and sale of Airborne Wireless Network securities (stock ticker ABWN).
According to court documents, Kalistratos “Kelly” Kabilafkas, 48, of Moorpark, and Jack E. Daniels, 74, of Agoura Hills, allegedly conspired to secretly acquire the freely tradeable shares of a publicly traded shell company that they subsequently rebranded as Airborne. To acquire the company, Kabilafkas allegedly misappropriated a $474,500 sham charitable donation and used the funds to secretly buy the shell company’s stock. Following the acquisition, together with Kabilafkas, Daniels—Airborne’s president and sole director—allegedly filed false reports with the Securities and Exchange Commission to conceal from investors that Kabilafkas secretly held all of Airborne’s stock.
Without disclosing Kabilafkas’s acquisition of Airborne’s shares, Kabilafkas and Daniels allegedly used investors’ funds to orchestrate a multimillion-dollar advertising campaign designed to inflate Airborne’s stock price. During the advertising campaign, Airborne’s share price increased significantly for short periods of time, and Kabilafkas allegedly capitalized on the stock price spikes to sell millions of shares of Airborne stock and reap millions of dollars in ill-gotten gains.
Kabilafkas and Daniels are charged with one count of conspiracy to commit securities fraud and one count of securities fraud. If convicted, Kabilafkas and Daniels each face a maximum penalty of five years in prison for conspiracy and 20 years in prison for securities fraud.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group; Acting Assistant Director in Charge Mehtab Syed of the FBI Los Angeles Field Office; and Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
USPIS, the FBI, and IRS-CI are investigating the case.
Trial Attorneys Theodore M. Kneller and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Hughes for the Central District of California are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Former Executives Sentenced for Committing Years-Long Fraud Against Their EmployerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SHAWN RAINS and JOSEPH MAHARAJ were sentenced by U.S. District Judge Nelson S. Román to 12 years and 90 months in prison, respectively, for their participation in a scheme to steal millions of dollars from a White Plains company where they were formerly high-ranking executives. RAINS was previously convicted, following a two-week jury trial, of mail fraud conspiracy, mail fraud, and money laundering conspiracy. MAHARAJ previously pled guilty to one count of mail fraud conspiracy.
U.S. Attorney Damian Williams said: “Shawn Rains and Joseph Maharaj, former executives at a White Plains healthcare consulting company, betrayed the trust of their employer by stealing millions of dollars. Along with co-conspirators, Rains and Maharaj used sham companies to submit fake invoices and trick their employer into paying for work that never happened, then laundered the proceeds. Prosecuting cases like this is crucial to maintaining trust in business and protecting the integrity of financial systems upon which countless individuals and institutions rely.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
RAINS and MAHARJ were executives at OrthoNet, a healthcare claims processing company based in White Plains, New York. Between approximately 2009 and 2017, RAINS and MAHARAJ designed and executed a scheme to defraud OrthoNet of over $4 million and to launder the fraud proceeds. RAINS and MAHARAJ conspired with others to create fake vendors that purported to do work on behalf of OrthoNet. RAINS, MAHARAJ, and their co-conspirators then signed invoices approving payment for the fake work, and OrthoNet sent payments to the fake vendors. RAINS, MAHARAJ, and their co-conspirators then converted the money to cash to hide the source of the fraud proceeds and split it up amongst themselves.
* * *
In addition to the prison sentence, RAINS, 57, of Le Bouscat, France, was ordered to forfeit $4,043,798.69 and pay restitution in the amount of $4,636,150.69. MAHARAJ, 42, of Goldens Bridge, New York, was ordered to forfeit $4,034,411.19 and pay restitution in the amount of $4,034,411.19.
Mr. Williams thanked the Federal Bureau of Investigation for their outstanding work on the investigation.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Stephanie Simon, Benjamin Klein, Jim Ligtenberg, and Jamie Bagliebter are in charge of the prosecution, with the assistance of Paralegal Specialist Shannon Becker.
Three indicted for providing firearms to Cartel del NoresteRead the Press Release
LAREDO, Texas – Three Laredo residents are charged with purchasing firearms for the cartel and transporting them to Mexico, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury has returned a four-count indictment against Angela Ruby Ponce, 18, Oscar Axel Flores, 22, and Mario Alberto Tovar, 28. They are expected to appear for their arraignment before U.S. Magistrate Judge Diana Song Quiroga May 2.
The indictment alleges from Jan. 1 through on or about April 2, Ponce, Flores and Tovar conspired with each other in trafficking firearms for the Cartel del Noreste (CDN).
Each are charged with conspiracy, smuggling goods from the United States, trafficking firearms and straw purchasing firearms for the CDN.
On April 2, the trio allegedly went to a federal firearms licensee in Laredo to purchase a semi-automatic rifle. After the purchase, U.S. authorities stopped them, recovering the just purchased rifle intended for the CDN, according to the charges.
The criminal complaint originally filed in the case alleges the group was working on behalf of the CDN. The three are believed to have purchased and transported at least 12 firearms to the CDN over the course of several months. The weapons included a variety of handguns and rifles, according to the charges.
The indictment alleges the CDN is a Mexican criminal organization that engages in transnational crime including kidnapping, extortion, vehicle theft, human trafficking, drug trafficking, and money laundering. It is headquartered in Nuevo Laredo, Tamaulipas, Mexico, and allegedly has influence over other Mexican cities. The CDN uses firearms of various calibers and capabilities to carry out and protect its operations, according to the charges.
For the conspiracy, each faces up to five years in federal prison, while smuggling goods from the United States carries a possible 10-year prison sentence. If convicted of trafficking firearms, they all also face additional sentences of up to 15 years as well as another 25 years for straw purchasing. The latter two are new charges under the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw purchasing of firearms. All charges also carry potential fines of up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Laredo Police Department conducted the investigation.
Assistant U.S. Attorney Bryan L. Oliver is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Three Gang Members Convicted for Their Roles in a MurderRead the Press Release
A federal jury convicted three members of the Hoover Criminal Gang yesterday for their roles in the murder of a suspected rival gang member.
According to court documents and evidence presented at trial, Markell Young, 32; Octavius Ferguson, 27; and Jordan Powell, 25, all of Gibson County, Tennessee, were members of a sub-set of the Hoover Criminal Gang known as the 83rd or Eight Tray. This violent criminal street gang operated throughout Tennessee, California, and elsewhere, and was engaged in racketeering activities including murder, robberies, and the trafficking of marijuana and cocaine.
On Jan. 31, 2017, the defendants murdered a suspected member of the rival Gangster Disciples gang in Humboldt, Tennessee, in retaliation for a shooting against a member of the Hoover Criminal Gang. Young ordered Ferguson, Powell, and co-defendants Bakari Lenon, and Monterio Ross to commit the murder, which they carried out by going to the victim’s home and shooting several firearms indiscriminately through the open front door, killing the victim.
The jury convicted Young of aiding and abetting the use of a firearm during and in relation to a crime of violence, and Ferguson and Powell of conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, aiding and abetting the use of a firearm during and in relation to a crime of violence, and causing death by use of a firearm during and relation to a crime of violence. The defendants are scheduled to be sentenced on Aug. 20. Young faces a maximum penalty of life in prison, and Ferguson and Powell each face a mandatory minimum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The two additional defendants, Lenon and Ross, pleaded guilty in October 2023 for their roles in the homicide and were each sentenced to 30 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Kevin G. Ritz for the Western District of Tennessee; and Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division made the announcement.
The FBI, ATF, West Tennessee Drug Task Force, Humboldt Police Department, and Tennessee Bureau of Investigations investigated the case.
Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Hillary Parham for the Western District of Tennessee are prosecuting the case.
Three Gang Members Convicted for Their Roles in a MurderRead the Press Release
A federal jury convicted three members of the Hoover Criminal Gang yesterday for their roles in the murder of a suspected rival gang member.
According to court documents and evidence presented at trial, Markell Young, 32; Octavius Ferguson, 27; and Jordan Powell, 25, all of Gibson County, Tennessee, were members of a sub-set of the Hoover Criminal Gang known as the 83rd or Eight Tray. This violent criminal street gang operated throughout Tennessee, California, and elsewhere, and was engaged in racketeering activities including murder, robberies, and the trafficking of marijuana and cocaine.
On Jan. 31, 2017, the defendants murdered a suspected member of the rival Gangster Disciples gang in Humboldt, Tennessee, in retaliation for a shooting against a member of the Hoover Criminal Gang. Young ordered Ferguson, Powell, and co-defendants Bakari Lenon and Monterio Ross to commit the murder, which they carried out by going to the victim’s home and shooting several firearms indiscriminately through the open front door, killing the victim.
The jury convicted Young of aiding and abetting the use of a firearm during and in relation to a crime of violence, and Ferguson and Powell of conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, aiding and abetting the use of a firearm during and in relation to a crime of violence, and causing death by use of a firearm during and relation to a crime of violence. The defendants are scheduled to be sentenced on Aug. 20. Young faces a maximum penalty of life in prison, and Ferguson and Powell each face a mandatory minimum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The two additional defendants, Lenon and Ross, pleaded guilty in October 2023 for their roles in the homicide and were each sentenced to 30 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Kevin G. Ritz for the Western District of Tennessee; and Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division made the announcement.
The FBI, ATF, West Tennessee Drug Task Force, Humboldt Police Department, and Tennessee Bureau of Investigations investigated the case.
Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Hillary Parham for the Western District of Tennessee are prosecuting the case.
Three Aryan Brotherhood Prison Gang Members Convicted of Murder in Aid of Racketeering, RICO Conspiracy, and Conspiracy to Commit Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Following a nine-week trial before Chief U.S. District Judge Kimberly J. Mueller, three members of the Aryan Brotherhood prison gang were found guilty of racketeering activity that included murder and drug trafficking, U.S. Attorney Phillip A. Talbert announced.
A federal jury found California State Prison Sacramento inmate Ronald Yandell, 61, guilty of one count of murder in aid of racketeering for the murder of Hugo Pinell, conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity; five counts of conspiracy to commit murder in aid of racketeering for the murders of Kenneth Johnson, James Mickey, Paul Diaz, Michael Trippe, and Doug Maynard; two counts of conspiracy to distribute and possess with intent to distribute methamphetamine and heroin; five counts of distribution of heroin; and one count of distribution of methamphetamine.
The jury found California State Prison Sacramento inmate Danny Troxell, 71, guilty of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and conspiracy to commit murder in aid of racketeering for the murder of James Mickey.
The jury found California State Prison inmate Billy Sylvester, 55, guilty of murder in aid of racketeering for the murder of Ronald Richardson, conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity, conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, and distribution of methamphetamine.
“Today’s convictions further our effort to dismantle a violent criminal enterprise run from inside California prisons,” said U.S. Attorney Phillip A. Talbert. “The Aryan Brotherhood controlled its members, associates, and others both inside and outside prison walls, ordering multiple murders and running a drug trafficking operation that spanned counties and states. We will continue to use every law enforcement tool to protect the communities plagued by the violence and criminal activities of the Aryan Brotherhood.”
“Prior convictions and lengthy prison sentences didn’t alter the defendants’ disrespect for the law and public safety. They continued to commit brutal murders and other heinous crimes from behind bars, all while coordinating the distribution of drugs into the community for financial gain,” said DEA Special Agent in Charge Brian M. Clark. “These convictions deal a significant blow to the Aryan Brotherhood leadership and underscores our commitment to tackle violent criminal enterprises from the top down.”
“The outcome today reflects the successful coordination among the law enforcement agencies involved in this effort to combat the dangerous influence of prison gangs,” said CDCR Secretary Jeff Macomber. “I appreciate the hard work and dedication of each of the agencies and am proud of the expertise CDCR staff provided throughout the investigation.”
On June 6, 2019, a criminal complaint was unsealed that charged 16 members and associates of the Aryan Brotherhood (AB), a prison-based gang, following a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.
According to court documents and evidence produced at trial, between 2011 and 2016, AB members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. Using smuggled-in cellphones, Yandell and Sylvester directed murders, drug trafficking in Sacramento and other California cities, and other criminal acts, while controlling the membership of the AB. Troxell was a leader of the AB and had significant authority over the enterprise, including resolving disputes among members and approving the murder of current or former members.
At the outset of this investigation, the following defendants were prison inmates with Yandell, Troxell, and Sylvester, serving life sentences:
- Travis Burhop, 51, pleaded guilty on Oct. 31, 2022, and is awaiting sentencing.
- Brant Daniel, 49, pleaded guilty and was sentenced to life in prison on Dec. 20, 2023.
- Pat Brady, 53, pleaded guilty on Jan. 3, 2024, and is scheduled for sentencing on May 13, 2024.
- Jason Corbett, 52, pleaded guilty on Jan. 17, 2024, and is scheduled for sentencing on July 15, 2024.
Additional individuals charged in the case include the following:
- Donald Mazza, 53, pleaded guilty on June 15, 2022, and is scheduled for sentencing on May 6, 2024.
- Samuel Keeton, 45, of Menifee, pleaded guilty on Nov. 30, 2020, and is scheduled for sentencing on May 13, 2024.
- Jeanna Quesenberry, 57, of Sacramento, pleaded guilty on Dec. 11, 2023, and is scheduled for sentencing on May 13, 2024.
- Kristin Demar, 49, of Citrus Heights; pleaded guilty on Sept. 12, 2022, and is scheduled for sentencing on May 13, 2024.
- Justin Petty, 42, of Los Angeles, pleaded guilty and on Oct. 16, 2023, was sentenced to 10 years and 10 months in prison.
- Charges are pending against Kevin MacNamara, 44, of La Palma, and Kathleen Nolan, 69, of Calimesa. A status conference for these defendants is set for June 24, 2024. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
- Two previously charged defendants are deceased.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.
Yandell, Troxell, and Sylvester are scheduled to be sentenced by Judge Mueller at a date to be set in the future. Defendants Yandell and Sylvester face mandatory life sentences based upon their convictions for murder in aid of racketeering. Defendant Troxell faces a maximum sentence of life in prison based upon his RICO conspiracy conviction.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Tenderloin Fentanyl Dealer Sentenced to Five Years in PrisonRead the Press Release
SAN FRANCISCO – Miguel Ramos was sentenced today to five years in prison for crimes including possession with intent to distribute fentanyl, methamphetamine, cocaine base, cocaine, and heroin, announced United States Attorney Ismail J. Ramsey and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark. The sentence was handed down by the Hon. Richard Seeborg, Chief United States District Judge.
Ramos, 25, a citizen of Honduras, pleaded guilty in January 2024 to one count of possession with intent to distribute 400 grams or more of fentanyl in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(vi), and four counts of possession with intent to distribute methamphetamine, cocaine base, cocaine, and heroin, all in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C).
According to court filings, Ramos was arrested in October 2022 in possession of approximately 3,530 grams (around 7.7 pounds) of fentanyl in various colors located in several different baggies. He also possessed approximately 54 grams of methamphetamine, 18 grams of cocaine base, 12 grams of cocaine salt, 26 grams of heroin, a large amount of cash, and a digital scale at the time of his arrest. All weights are gross weights.
“Fentanyl is wreaking havoc in our communities, particularly in the Tenderloin,” said United States Attorney Ismail J. Ramsey. “Miguel Ramos cavalierly possessed more than seven pounds of this highly lethal substance for sale. This Office will ensure that dealers like Mr. Ramos face Justice and long prison sentences.”
“Fentanyl is the deadliest drug threat our communities have ever faced. The staggering amount of this poison seized from Ramos equates to several thousand potential deadly doses,” said DEA Special Agent in Charge Brian M. Clark. “DEA will continue to respond to this unprecedented threat in San Francisco with unprecedented action. Our sustained efforts in the Tenderloin will continue as we work tirelessly to save lives.”
In addition to sentencing Ramos to prison, Judge Seeborg ordered the defendant to serve three years of supervised release to begin after his prison term is completed. Ramos was indicted by a federal grand jury on December 13, 2022, and was immediately remanded into custody following his sentencing today.
Assistant U.S. Attorney George Hageman is prosecuting the case with the assistance of Helen Yee. The prosecution is the result of a months-long investigation by the DEA and the San Francisco Police Department.
One Pill Can Kill: Beware of pills bought on the street. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies.
Tampa Man Sentenced to Five Years’ Imprisonment for Distributing MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Robert Jones IV aka “Klout” (24, Tampa) to five years in federal prison for distributing methamphetamine and possessing methamphetamine with the intent to distribute it. Jones entered a guilty plea on January 18, 2024.
According to court documents, in February and March 2023, Jones sold methamphetamine to an undercover police officer. During each of the transactions, Jones hid the methamphetamine inside the gas cap of his vehicle. He then drove to a pre-determined meeting location in St. Petersburg, where the drugs were retrieved as Jones remained inside his vehicle.
During a search of Jones’s residence, law enforcement officers recovered assorted drug paraphernalia, including a digital scale, plastic resealable bags, a heat seal, and distribution quantities of methamphetamine. Jones later admitted to selling drugs from his home and took ownership of the methamphetamine found in the residence.
This case was investigated by the Drug Enforcement Administration and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Michael Kenneth.
Stoughton Man Who Mailed Packages Containing Fentanyl Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Stoughton man pleaded guilty yesterday in federal court in Boston to his role in a wide-ranging fentanyl trafficking conspiracy.
Angel Morales, 52, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Sept. 5, 2024. In December 2022, Morales was indicted along with co-conspirators Quenty Ogando, Erika Prado and Rahelin Reynoso.
Between September 2022 and November 2022, Morales was involved in a scheme involving a large-scale pill press operation that manufactured, sold, and mailed counterfeit pills, including pills containing fentanyl, among other drugs. Morales’ role within the operation was to ship the packages from various post offices across Massachusetts. On multiple occasions, Morales used various post offices and FedEx facilities in Boston, Randolph, Holbrook, Quincy, Mattapan, Braintree, Milton and elsewhere to mail over 150 packages knowing that some of the packages contained controlled substances. On at least two occasions, FedEx employees opened packages pursuant to their internal procedures, and observed clear plastic sandwich bags filled with pills with markings consistent with prescription-only medication that later tested positive for fentanyl.
On multiple occasions in October and November Morales was observed leaving an apartment in Mattapan before travelling to multiple post offices and FedEx facilities. During a subsequent search of that apartment, over 20 kilograms of pills in various colors, a sample of which tested positive for fentanyl, over 20 kilograms of loose powder, a sample of which tested positive for fentanyl, numerous packages and mailing labels, electronic devices, cash and three industrial grade pill presses were recovered. In addition, fentanyl, heroin, cocaine and methamphetamine were also found at the apartment.
Morales is the fourth and final defendant to plead guilty in the case. On Jan. 31, 2024, Ogando was sentenced to 144 months in prison and five years of supervised release. Prado and Reynoso are scheduled to be sentenced on April 30, 2024, and June 3, 2024, respectively.
Both charges provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Boston Police Department; Massachusetts State Police; United States Customs and Border Protection; Drug Enforcement Administration; and U.S. Food and Drug Administration. Assistant U.S. Attorneys J. Mackenzie Duane and Jennifer Zacks of the Narcotics & Money Laundering Unit are prosecuting the case.
Southaven Man Sentenced for Possession of a Stolen FirearmRead the Press Release
Jackson, MS – A Southaven man was sentenced today to one year and one day in prison for possession of a stolen firearm.
According to court documents, Jordan Dale Burgess, 33, was captured on surveillance video stealing a firearm from a Federal Firearms Licensed dealer in Yazoo City, Mississippi, in March of 2023.
Burgess was indicted by a federal grand jury on June 6, 2023. He pled guilty on December 12, 2023, to possession of a stolen firearm.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Matt Allen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
South L.A. Gang Member Who Led Meth and Cocaine Trafficking Ring from His Storefront Sentenced to 12 Years in Federal PrisonRead the Press Release
LOS ANGELES – A member of the Hoover Criminals Gang was sentenced today to 144 months in federal prison for leading a drug trafficking enterprise that distributed narcotics, including crack cocaine and methamphetamine, which were sold from his storefront in South Los Angeles.
Andrew Tate, 56, a.k.a. “Batman,” of South Los Angeles, was sentenced by United States District Judge Stanley Blumenfeld Jr. Tate pleaded guilty in August 2022 to one count of conspiracy to distribute controlled substances. He has been in federal custody since his arrest in November 2020.
Tate is the lead defendant in an indictment targeting the gang's members and associates as part of an investigation dubbed “Operation Hoover Dam.” He also is the final defendant to be sentenced in this case. In total, federal prosecutors secured 10 convictions in this matter.
Tate owned a business named TNN Market and he sold methamphetamine, crack cocaine and powder cocaine from it. Tate and co-defendant Bobby Lorenzo Reed, 59, a.k.a. “Zo” and “Z,” who owned the South Los Angeles-based store H&E Smoke and Snack Shop, referred customers to one another, supplied one another, and directed their employees to engage in drug sales and referrals in dozens of narcotics transactions from June 2017 to May 2018. Reed is serving a 10-year prison sentence after pleading guilty in June 2022 to federal narcotics charges in this case.
“Tate participated in an extensive and long-running drug conspiracy to sell drugs, including methamphetamine and crack cocaine, in South Los Angeles,” prosecutors argued in a sentencing memorandum. “Tate’s role in the drug conspiracy was significant; he was the head of the entire drug trafficking enterprise pumping drugs into a vulnerable area of Los Angeles.”
The FBI, the Los Angeles Police Department and the California Department of Corrections and Rehabilitation investigated this matter.
Assistant United States Attorneys Jenna G. Williams of the Corporate and Securities Fraud Strike Force and Jason C. Pang of the General Crimes Section prosecuted this case.
Sixteen People Charged with Conspiracy to Defraud Hundreds of Elderly Americans of Millions of DollarsRead the Press Release
NEWARK, N.J. – Sixteen individuals were charged in connection with a sprawling “grandparent scam” to defraud hundreds of elderly Americans out of millions of dollars, U.S. Attorney Philip R. Sellinger announced today.
Eleven men from the Dominican Republic are charged in a 19-count indictment with mail and wire fraud conspiracy; wire fraud; mail fraud; conspiracy to commit money laundering; and money laundering:
- *Juan Rafael Parra Arias, aka “Yofre,” 40
- Nefy Vladimir Parra Arias, aka “Keko,” 39
- Nelson Rafael Gonzalez Acevedo, aka “Nelson Tech,” 35
- *Rafael Ambiorix Rodriguez Guzman, aka “Max Morgan,” 59
- Miguel Angel Fortuna Solano, aka “Botija,” aka “Boti,” 41
- *Felix Samuel Reynoso Ventura, aka “Fili,” aka “Filly The Kid,” 36
- Carlos Javier Estevez, 45
- Louis Junior Serrano Rodriguez, aka “Junior,” 27
- Miguel Angel Vasquez, aka “Miguel Disla,” 24
- Jovanni Antonio Rosario Garcia, aka “Porky,” aka “Chop,” 45
- *Jose Ismael Dilone Rodriguez, 34
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*denotes in custody
An additional five defendants were charged by complaint with wire fraud conspiracy as part of the same scheme: Endy Jose Torres Moran, 21, of Brooklyn, New York; Ivan Alexander Inoa Suero, 32, of the Bronx, New York; Jhonny Cepeda, 27, and Ramon Hurtado, 43, both of New York; and Yuleisy Roque, 21, of the Bronx.
U.S. Attorney Philip R. Sellinger“As alleged, these 16 defendants preyed upon grandparents’ familial love and devotion, cheating them out of millions of dollars. In this ‘grandparents’ scam,’ the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. The panic-stricken grandparents quickly paid—sometimes tens of thousands of dollars. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” Deputy Assistant Attorney General Arun Rao of the Justice Department's Civil Division, Consumer Protection Branch said. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“Today’s announcement stems from the defendants’ alleged heartless targeting of elderly victims who were collectively tricked into handing over millions of dollars,” Department of Homeland Security, Homeland Security Investigations, New York, Acting Special Agent in Charge Darren B. McCormack, said. “For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods, and robbed them of their precious time and any nest eggs they had secured for themselves. I commend HSI New York’s El Dorado Task Force Cyber Intrusion Group, the U.S. Attorney’s Office for the District of New Jersey, the NYPD, the FBI, the Social Security Office of Inspector General, and HSI Santo Domingo for their outstanding collaboration and coordination. This can truly happen to anybody, and while we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.”
“We allege these scammers created an elaborate scheme revolving around a grandchild reaching out to say they were in trouble, had been arrested, and needed help,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Then to reinforce an immediate need for cash, these fraudsters allegedly posed as attorneys, law enforcement officers and court employees explaining how grandparents can get them money. Even the most jaded and savvy of us out there may pause a moment, thinking that this could actually be real. That’s the insidious nature of this particular fraud, criminals are preying on our instinct to protect our families. We ask anyone who believes they could also be a victim to report it at www.ic3.gov.”
“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable,” Bradley Parker, Acting Special Agent in Charge, Social Security Administration (SSA) Office of the Inspector General (OIG), Boston - New York Field Division, said. “SSA OIG is proud to join HSI, the FBI, the Justice Department, and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries.”
“These charges underscore law enforcement’s commitment to protecting our older population from fraudsters and financial exploitation,” New York Police Department Commissioner Edward A. Caban said. “The crimes outlined here are truly depraved in their nature: targeting our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings. I applaud our NYPD investigators and all of our federal partners involved in this important case for their tireless dedication to our shared public safety mission.”
According to documents filed in this case and statements made in court:
Juan Rafael Parra Arias, Nefy Vladimir Parra Arrias, and Gonzalez Acevedo operated a sophisticated network of call centers in the Dominican Republic. Their alleged victims included elderly residents of several states, including New Jersey, New York, Pennsylvania, and Massachusetts. The call centers victimized hundreds of Americans through fraud, stealing millions of dollars.
Members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested as a result of the accident, and needed help.
Once openers duped victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” impersonated defense attorneys, police officers, or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones.
Closers, including defendants Rodriguez Guzman, Fortuna Solano, Reynoso Ventura, and Estevez, typically told victims to give the cash to couriers who they sent to victims’ homes to collect their money. Other times, closers instructed victims to send the cash by mail.
Once victims were convinced to give cash, call center “dispatchers,” including Serrano Rodriguez, Vasquez, Rosario Rodriguez, and Dilone Rodriguez recruited and managed a network of U.S.-based couriers to steal cash from the elderly victims across the Northeast.
Those U.S.-based couriers, including the five charged by complaint, typically went to the elderly victims’ home to retrieve the cash, often using false names and providing victims with fake receipts in exchange. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money back to the Dominican Republic.
Each of the charges in the indictment and complaint carries a maximum potential penalty of up to 20 years in prison. Each of the mail and wire fraud charges also carry a potential fine of up to $250,000; each of the money laundering charges also carry a potential fine of up to $500,000.
U.S. Attorney Sellinger credited special agents and investigators of the Department of Homeland Security, under the direction of Acting Special Agent in Charge McCormack; special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; the Social Security Administration, Office of the Inspector General, New York / Boston Field Division, under the direction of Acting Special Agent-in-Charge Bradley Parker; and the New York Police Department, under the direction of Commissioner Caban, with the investigation leading to the charges. He also thanked the Justice Department’s Office of International Affairs.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark, and Jason Feldman, Joshua Ferrentino, and Emily Powers of the Department of Justice, Consumer Protection Branch in Washington, D.C.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Video press statement: Grandparents Scam press statement - YouTube
usattorney_remarks.pdf grandparents.indictment.pdfSixteen Defendants Charged in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
WASHINGTON – Sixteen individuals were charged in connection with a sprawling “grandparent scam” to defraud elderly Americans out of millions of dollars, the Justice Department announced today during a virtual announcement.
Eleven men from the Dominican Republic are charged in a 19-count indictment with mail and wire fraud conspiracy, wire fraud, mail fraud, conspiracy to commit money laundering and money laundering:
- Juan Rafael Parra Arias, also known as Yofre, 41;
- Nefy Vladimir Parra Arias, also known as Keko, 39;
- Nelson Rafael Gonzalez Acevedo, also known as Nelson Tech, 35;
- Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59;
- Miguel Angel Fortuna Solano, also known as Botija, and Boti, 41;
- Felix Samuel Reynoso Ventura, also known as Fili, and Filly The Kid, 37;
- Carlos Javier Estevez, 45;
- Louis Junior Rodriguez Serrano, also known as Junior, 27;
- Miguel Angel Vasquez, also known as Miguel Disla, 24;
- Jovanni Antonio Rosario Garcia, also known as Porky, and Chop, 45; and
- Jose Ismael Dilone Rodriguez, 34
According to the indictment, unsealed yesterday, in Newark, New Jersey, the defendants engaged in a long-running “grandparent” or “family in need of bail” scam against seniors in the United States. The scam was operated from call centers in the Dominican Republic.
An additional five defendants were charged by complaint with wire fraud conspiracy as part of the same scheme: Endy Jose Torres Moran, 21, of Brooklyn, New York; Ivan Alexander Inoa Suero, 32, of New York City; Jhonny Cepeda, 27, of New York City; Ramon Hurtado, 43, of New York City, and Yuleisy Roque, 21, of the Bronx, New York. All five of the defendants charged by complaint are alleged to have acted as couriers who picked up cash from defrauded victims in New Jersey, New York and elsewhere.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” said Deputy Assistant Attorney General Arun G. Rao of the Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“As alleged, these 16 defendants preyed upon grandparents’ familial love and devotion, cheating them out of millions of dollars,” said U.S. Attorney Sellinger for the District of New Jersey. “In this ‘grandparents’ scam,’ the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. The panic-stricken grandparents quickly paid — sometimes tens of thousands of dollars. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“Today’s announcement stems from the defendants’s alleged heartless targeting of elderly victims who were collectively tricked into handing over millions of dollars," said Acting Special Agent in Charge Darren B. McCormack of Homeland Security Investigations (HSI) New York. “For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods and robbed them of their precious time and any nest eggs they had secured for themselves. I commend HSI New York’s El Dorado Task Force Cyber Intrusion Group, the U.S. Attorney’s Office for the District of New Jersey, the NYPD, the FBI, the Social Security Office of Inspector General and HSI Santo Domingo for their outstanding collaboration and coordination. This can truly happen to anybody, and while we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.”
“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG), Boston New York Field Division. “SSA OIG is proud to join HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries.”
“These charges underscore law enforcement’s commitment to protecting our older population from fraudsters and financial exploitation,” said Commissioner Edward A. Caban of the New York Police Department (NYPD). “The crimes outlined here are truly depraved in their nature: targeting our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings. I applaud our NYPD investigators and all of our federal partners involved in this important case for their tireless dedication to our shared public safety mission.”
“The FBI and its partners are deeply committed to keeping our elderly population out of harm’s way,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Even when components of these grandparent scams are being perpetuated from beyond our borders, those who engage in illicit activity seeking to defraud the American people can be assured that their actions have consequences. If you or someone you know is a victim of elder fraud, please come forward and report it.”
According to documents filed in this case and statements made in court, Juan Rafael Parra Arias, Nefy Vladimir Parra Arrias and Gonzalez Acevedo operated a sophisticated network of call centers in the Dominican Republic. Their alleged victims included elderly residents of several states, including New Jersey, New York, Pennsylvania and Massachusetts. The call centers victimized hundreds of Americans through fraud, stealing millions of dollars.
Members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident, and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones.
According to charging documents, closers, including defendants Rodriguez Guzman, Fortuna Solano, Reynoso Ventura and Estevez typically told victims to give the cash to couriers who they sent to victims’ homes to collect their money. Other times, closers instructed victims to send the cash by mail.
Once victims were convinced to give cash, call center “dispatchers,” including Rodriguez Serrano, Vasquez, Rosario Garcia, and Dilone Rodriguez, recruited and managed a network of U.S.-based couriers to obtain cash from the elderly victims across the northeastern United States.
Those U.S.-based couriers, including the five charged by complaint, typically went to the elderly victims’ home to pick up the cash, often using false names and providing victims with fake receipts. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money to the Dominican Republic.
If convicted, the defendants face a maximum penalty 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for each count of money laundering.
Deputy Assistant Attorney Rao joined U.S. Attorney Sellinger, Special Agent in Charge James E. Dennehy of the FBI’s Newark Division and Deputy Special Agent in Charge McCormack of Homeland Security Investigations New York made the announcement.
HIS, SSA-OIG, NYPD, and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance.
Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sex Offender Caught in Halfway House with Child Pornography Sentenced to 15 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a registered sex offender who was caught in a halfway house with child sexual abuse material to 15 years in prison.
In 2017, Eric Michael Swancutt was sentenced in U.S. District Court in East St. Louis to 97 months in prison after he pleaded guilty to two counts of receiving child pornography and one count of possession of child pornography.
On Aug. 17, 2022, after his release from prison, a staffer at the residential reentry center near Farmington, Missouri found a cell phone hidden in Swancutt’s sock during a pat down search. A court-approved search of the phone uncovered child pornography and evidence that Swancutt had searched for child pornography.
Swancutt, now 46, pleaded guilty in January in U.S. District Court in St. Louis to one count of receiving child pornography.
The FBI investigated the case. Assistant U.S. Attorney Nathan Chapman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sentences handed to “Cobra” human smuggling members responsible for fatality and sexual assaultRead the Press Release
McALLEN, Texas – The leader of a smuggling organization and five others have been sentenced for conspiring to smuggle undocumented individuals, announced U.S. Attorney Alamdar S. Hamdani.
Saul Torres-Martinez aka Cobra, 42, Houston; Ernesto Mata Pioquinto, 32, Mexico; Marcelino Navarro Sanchez, 31, Mexico; Robert Hernandez, 26, Fresno; Noemi Silva, 39, Wimauma, Florida; and Luis Esteban Martinez, 41, Alamo, pleaded guilty July 6, 2021.
Chief U.S. District Judge Randy Crane found Torres-Martinez to be a leader or organizer of the smuggling operation and imposed a 110-month sentence. Pioquinto and Sanchez received 52 months, while Hernandez, Silva and Martinez received 39, 87 and 87 months in federal prison, respectively. Hernandez, Silva, and Martinez will serve three years of supervised release following their terms of imprisonment. Not U.S. citizens, Torres-Martinez, Pioquinto and Sanchez are expected to face removal proceedings following the completion of their respective sentences. In handing down the sentence, Judge Crane noted the seriousness of the offense and expressed concern regarding the harm Torres-Martinez caused to the community.
“Human smuggling organizations simply don’t care,” said Hamdani. “They do not see the migrants they transport as human beings but rather as currency. As a result, when you put yourselves in these criminals’ hands you risk exposing yourself to extreme danger or even death.”
As a part of an approximately two-year investigation into human smuggling in the Rio Grande Valley, law enforcement identified and apprehended six members of the “Cobra” human smuggling organization.
According to law enforcement, the smuggling network was responsible for more 100 undocumented individuals from the Mexican border to Houston from 2018 to 2019.
During the investigation, further evidence revealed that members of the human smuggling organization were responsible for a smuggling fatality as well as an alleged sexual assault of another smuggled individual.
Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Matthew Phelps prosecuted the case.
Saint Bernard Man Sentenced to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – ROBERT C. METZLER (“METZLER”), age 60, was sentenced on April 23, 2024, in connection with a two-count indictment charging him with conspiracy to distribute and possess with intent to distribute carisoprodol and possession with intent to distribute forty (40) grams or more of fentanyl and a quantity of cocaine, oxycodone and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846 respectively. Specifically, METZLER was sentenced on each count to 69 months imprisonment, four years of supervised release, and a $200 mandatory special assessment fee. All sentences are to run concurrently with each other.
According to court documents, METZLER conspired to receive shipments of carisoprodol from outside of the United States with the intent to distribute, and possess with the intent to distribute, these controlled substances within the Eastern District of Louisiana. Following the execution of a search warrant for METZLER’s home, agents recovered multiple controlled substances and documents associated with drug transactions.
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Hammond Police Department, and the Tangipahoa Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Richland Brothers Sentenced to Decades in Federal Prison for Trafficking Hundreds of Thousands of Fentanyl Pills into the Tri-CitiesRead the Press Release
Richland, Washington - Chief United States District Judge Stanley A. Bastian sentenced Kyle Ray Campbell, age 36, to 25 years in federal prison for Possession with Intent to Distribute 400 Grams or More of Fentanyl. The Court also sentenced Campbell’s codefendant, and brother, Cameron Earl Campbell, age 32, to 20 years in federal prison for Possession with Intent to Distribute 400 Grams or More of Fentanyl. Chief District Judge Bastian imposed 5 years of federal supervision on both defendants upon their release from custody. Kyle and Cameron Campbell are each from Richland, Washington.
According to court documents and information presented at the sentencing hearing, the Campbells were trafficking large amounts of fentanyl from Mexico into the Tri-Cities area. Beginning in early 2019, Kyle Campbell would travel to San Diego and meet a contact who would provide Campbell with fentanyl-laced pills that had been smuggled across the Mexican border. The contact would then take Campbell’s money for the pills back to Mexico and pay the source of supply. Cameron Campbell took over the trips to San Diego when he was off Washington State Department of Corrections supervision. Investigators learned the Campbells were provided with approximately 50,000 Fentanyl pills per month from early 2019 to February 2020.
On February 8, 2020, Cameron Campbell took a bus from Pasco, Washington to San Ysidro, California. From February 9 to February 12, 2020, Cameron Campbell made several trips between San Ysidro, and Mexico. On February 12, Cameron Campbell took a bus from San Ysidro to Toppenish, Washington. FBI agents conducting surveillance on the bus observed Cameron Campbell get off the bus carrying several bags. He went into a laundry mat and appeared to be waiting. Agents entered the laundry mat and contacted Cameron Campbell and seized his phone and luggage.
Following the execution of federal search warrant, agents recovered approximately 10,000 fentanyl-laced pills inside the seized bags. Agents also executed a search warrant on Cameron Campbell’s cell phone. The contents of the phone showed multiple text messages between Cameron Campbell and Kyle Campbell. The messages included details about the trip and an offer from Kyle to pick up Cameron when he got off the bus. The text messages also showed Cameron Campbell had left approximately 500 fentanyl-laced pills in a fast-food restaurant bathroom in Portland, Oregon for another person to pick up.
In July of 2020, a federal search warrant was executed at Kyle Campbell’s home. Agents located a safe with 400 fentanyl-laced pills, baggies with drug residue, a phone, cash, and multiple firearms. Agent also recovered another handgun from the bedroom of the home.
During sentencing, Chief Judge Bastian noted both defendants obstructed justice during the case – with Cameron Campbell attempting to have his now ex-wife erase cell phones seized by the FBI before they could be searched, and Kyle Campbell threatening a witness in the case with harm if the witness testified. Chief Judge Bastian also noted that while both defendants professed remorse and promised they would not engage in this type conduct again. Yet, at the same time as they promised they would not engage in further criminal activity, the Campbells were smuggling drugs into the Benton County Jail for distribution in the jail to other inmates.
“The defendants in this case distributed a shocking amount of deadly illicit fentanyl into the Tri-Cities area. This poison causes untold damage to families, neighborhoods, and our nation,” stated U.S Attorney Waldref. “My office is committed to battling the fentanyl epidemic by working together with our federal, state, local and tribal partners to prosecute the most significant traffickers to remove the source of supply of these dangerous narcotics and to protect our community.”
“Every Fentanyl pill introduced into our communities has the potential to destroy lives.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “The Campbell brothers were trafficking thousands of these deadly pills into Washington state each month. The FBI and our partners will continue our efforts of keeping these poisons off the streets and out of our neighborhoods.”
This case was investigated by the FBI Safe Streets Task Force in Tri-Cities, Washington, in cooperation with the Kennewick Police Department, Richland Police Department, Pasco Police Department, and the Benton County Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Caitlin Baunsgard and Brandon Pang.
Rhode Island Beef Slaughterhouse Fined, Placed on Probation for Violating the Federal Meat Inspection ActRead the Press Release
PROVIDENCE – A Johnston, RI, beef slaughterhouse was fined $20,000 and placed on three years of federal probation today by U.S. District Court Judge Mary S. McElroy for fraudulently claiming that product they processed and suppled to customers had been federally inspected and passed as required under the Federal Meat Inspection Act (FMIA) when, in fact, it had not, announced United States Attorney Zachary A. Cunha.
Rhode Island Beef and Veal and one of its owners, Michael A. Quattrucci, previously pleaded guilty to charges of defrauding customers by claiming that beef had been inspected under the FMIA, as well as preparing beef without complying with inspection requirements of the FMIA. Additionally, Rhode Island Beef and Veal pleaded guilty to a charge of defrauding customers by use of an official inspection mark of the Secretary of Agriculture without authorization.
Micheal A. Quattrucci was sentenced on July 27, 2023, to one year of federal probation and ordered to pay a fine of $1,000.
According to court documents and information presented to the court, on August 20, 2019, the United States Department of Agriculture (USDA) Food Safety Inspection Service served RI Beef and Veal with a notice of suspension and withdrew its inspector. Eight days after the suspension was imposed and the inspector was withdrawn, a USDA supervisor visited the plant and found employees packing various cuts of meat and fraudulently applying USDA marks of inspections to the meat. Additionally, packaged meat with USDA stickers attached was found stored in bins. No inspector was present, as is required by law for these marks to be applied.
A day later, a USDA investigator visited the slaughterhouse and took photos of the illegally marked packages of beef that had been retained from the day before; he also noted 224 pounds of unmarked ground beef and a 594-pound half carcass of beef that had been freshly cut into primal parts for delivery to a customer in Connecticut who supplies meat products to restaurants.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the USDA Food Safety and Inspection Service.
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Recidivist Child Pornography Offender Who Sent Threatening Powder-Filled Letter to FBI Agent Sentenced to 130 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that OKAMI LANDA was sentenced to 130 months in prison for possession of child pornography and for sending a threatening, powder-filled letter to a federal agent who previously investigated and arrested him. LANDA previously pled guilty before U.S. District Judge P. Kevin Castel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Okami Landa has twice been convicted in this District of possessing child pornography. Today’s sentence holds Landa accountable not only for his participation in the exploitation and victimization of young children, but also for his intolerable decision to retaliate against the FBI by sending a terrifying, powder-filled letter to the agent who investigated him. This Office stands shoulder-to-shoulder with the dedicated FBI agents who investigate crimes against children. Their work should never make them targets of reprisal.”
According to court documents and statements made during court proceedings:[1]
In November 2021, LANDA, who had previously been convicted and sentenced to two years in prison for possession of child pornography in 2016, mailed a threatening letter filled with white powder to a Federal Bureau of Investigation (“FBI”) agent (the “FBI Agent”) who was assigned to a squad responsible for investigating crimes against children. The FBI Agent had interviewed and arrested LANDA in connection with his previous child pornography conviction. The threatening letter, which the FBI Agent opened inside a forensic laboratory at an FBI office in Manhattan, contained a white powdery substance and a message that said, among other things: “Hope you and your ugly cracker children and family get what you deserved, a slow, painful and terminal disease to end your sorry life.” The letter and powder prompted an emergency response from the FBI’s weapons and mass destruction team, which sealed the forensic laboratory before examining the powder and determining that it was safe. The FBI Agent and other FBI personnel in the area were quarantined and hospitalized for medical evaluation.
Through the FBI’s investigation, law enforcement examined the serial number of the stamp affixed to the threatening letter and learned that it was purchased using a credit card belonging to LANDA’s mother, who lived with LANDA at their residence in the Bronx. At the time, LANDA was on federal supervised release for his previous child pornography conviction and had previously made threatening statements about law enforcement, including about a desire to “blow up Federal Plaza because I hate the feds and they ruined my life.” Following an interview at his residence by FBI agents, the U.S. Probation Office conducted a search of LANDA’s residence, where they recovered multiple electronic devices, including a USB drive that contained 11 files with child pornography. The child pornography on LANDA’s USB drive included depictions of prepubescent minor females and adult males engaging in sex acts.
* * *
In addition to the prison term, LANDA, 41, of the Bronx, New York, was sentenced to 10 years of supervised release.
Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley and Matthew J.C. Hellman are in charge of the prosecution.
[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part.
Queens Investment Advisor Sentenced to 78 Months in Prison for Multi-Million Dollar Securities Fraud SchemeRead the Press Release
Today, in federal court in Central Islip, Surage Roshan Perera, the founder and Executive Director of Janues Capital, Inc. in Bellerose, Queens, was sentenced by United States District Judge Gary R. Brown to 78 months’ imprisonment for securities fraud in connection with running a Ponzi scheme in which the defendant used investor money to pay redemptions to prior investors and his personal expenses, and fund his highly speculative day trading. Perera pleaded guilty to the charge in October 2023. As part of his sentence, Perera was ordered to pay $6.3 million in restitution.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Perera’s sentence is just punishment for causing more than $6 million in losses to the victims who are now saddled with debts, some who lost their life savings and others who have been forced to delay retirement all because of the lies he peddled to them about their investments,” stated United States Attorney Peace. “I commend the members of my Office and the FBI Special Agents for disrupting the defendant’s Ponzi scheme so that he could not wreak even more financial harm and holding him accountable for his criminal conduct.”
Mr. Peace thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group for their assistance with the case.
“Surage Perera pays the price for using his relationships with the victims to swindle them of over $6 million and casting several into a lifetime of debt. Today’s sentence reaffirms the FBI’s promise to uphold financial integrity and to pursue those who create fraudulent schemes for personal gain,” stated FBI Assistant Director-in-Charge Smith.
As alleged in the indictment and set forth in court filings, between February 2022 and March 2023, Perera abused his position of trust as an investment advisor to convince unsuspecting investors to part with their hard-earned money for what they believed were safe, well-performing investments. For example, Perara falsely told one victim (“Jane Doe”) that he had relationships with large institutions and could purchase stock in companies that traded on the NASDAQ and NYSE at discounted prices. He also told Jane Doe that her investment was low-risk and he would use her investment capital to purchase shares in those public-traded companies. As a result, Jane Doe gave Perera more than $4.2 million. In reality, Perera was operating a Ponzi scheme. Instead of investing as promised, Perera misappropriated those funds by, among other things, paying redemptions to prior investors, paying personal expenses and funding his day trading. To conceal his fraudulent scheme, Perera sent fraudulent confirmation notices and account statements to investors. In the end, Perera caused 15 victims, some of whom were his close friends, to lose approximately $6.3 million.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Christopher Caffarone is in charge of the prosecution.
The Defendant:
SURAGE ROSHAN PERERA
Age: 51
Bellerose, QueensE.D.N.Y. Docket No. 23-CR-129 (GRB)
Providence Man to Be Sentenced in Federal Court in Rhode Island for Trafficking Fentanyl While Awaiting Trial in Nebraska for Allegedly Trafficking 10 Kilos of CocaineRead the Press Release
PROVIDENCE, RI – A Providence man pleaded guilty in federal court today to a charge of possession with intent to distribute fentanyl, announced United States Attorney Zachary A. Cunha.
According to charging documents and information provided to the court, on March 10, 2023, during a court-authorized search of a Providence apartment, DEA Rhode Island Drug Task Force agents discovered Stanli S. Arias De La Rosa, 30, hiding in a closet as they seized 454.9 grams of fentanyl; 43 grams of cocaine; 14.5 grams of crack cocaine; and assorted items used in the packaging and distribution of drugs.
At the time of his arrest, De La Rosa was the subject of an outstanding arrest warrant issued in York, Nebraska, related to his alleged failure to appear for court hearings in connection with a September 30, 2022, arrest for possession of cocaine. In that matter, it is alleged that Arias De La Rosa was driving a vehicle that was pulled over for a traffic stop and found to contain 10 kilograms of cocaine stored in the trunk.
In this most recent matter in Rhode Island, Arias De La Rosa is scheduled to be sentenced on September 24, 2024. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Christine D. Lowell.
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President of A Campbell Home Health Care Company Pleads Guilty to Failure to Pay Employment TaxRead the Press Release
SAN JOSE - Shane Brightpath Mike pleaded guilty in federal court today to failing to pay over employment taxes withheld from the wages of his company’s employees, announced United States Attorney Ismail J. Ramsey, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.
Mike, 52, of Whittier, California, was indicted by a federal Grand Jury on June 27, 2019. He was charged with five counts of Failure to Pay Over Employment Tax in violation of 26 U.S.C. § 7202, and two counts of Making and Subscribing a False Return in violation of 26 U.S.C. § 7206(1). Today, Mike pleaded guilty to one count of Failure to Pay Over Employment Tax.
In pleading guilty, Mike admitted that he owned and was the President and Chief Operating Officer of Excel Behavioral Services, Inc. (Excel), a business located in Campbell, California, that provided home care to persons with disabilities. Mike was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those funds to the IRS.
According to the plea agreement, from the fourth quarter of 2014 through the third quarter of 2015, Mike did not pay any of the withheld taxes to the IRS. For the third quarter of 2014, Mike only he paid part of the funds withheld. For these five quarters, Mike did not pay to the IRS more than $1 million in taxes. During that same time, Mike used Excel’s funds to pay his personal expenses.
Mike also admitted to filing false personal income tax returns for tax years 2014 and 2015. On those returns, Mike falsely claimed credit for federal tax withholdings from wages he received from Excel, knowing that such in fact had not been paid over to the IRS. In total, Mike caused a tax loss to the IRS of $1,177,947.
Mike is currently released on bond. His sentencing hearing is scheduled for September 24, 2024, at 9:00 a.m. before The Honorable Beth Labson Freeman, United States District Court Judge, in San Jose. The maximum statutory penalty is 5 years in prison, a fine of $250,000, and restitution of at least $1,177,947. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah E. Griswold and Assistant Chief Matthew J. Kluge of the Justice Department’s Tax Division are prosecuting the case with the assistance of Lynette Dixon. The prosecution is the result of an investigation by IRS Criminal Investigation.
Pharmacy Technician Pleads Guilty to Tampering with Hospital Pain MedicationRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Fernando P. McMillan, Special Agent in Charge of the FDA Office of Criminal Investigations, New York Field Office; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, announced that TIFFANY MOSS, 34, of Montville, waived her right to be indicted and pleaded guilty today in Bridgeport federal court to a charge related to her tampering with pain medication at the hospital where she worked.
According to court documents and statements made in court, Moss was employed as a pharmacy technician at Backus Hospital in Norwich. On January 11, 2024, she used her employee ID badge to access the secure storage area at the hospital. She then removed three bags that contained a solution of hydromorphone, took a portion of the hydromorphone solution from each bag for her own use, and replaced the portion she took with saline. She then returned the bags to the storage area in a location where they could be distributed for patient use.
Moss pleaded guilty to tampering with a consumer product, an offense that carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
Moss is released on a $50,000 bond, and is prohibited from working in any location with access to narcotics while awaiting sentencing.
This matter is being investigated by the U.S. Food and Drug Administration, Office of Criminal Investigation; the DEA’s Hartford Diversion Control Division; the Connecticut Department of Consumer Protection, Drug Control Division; and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Owner of Vashon Island, Washington, landscaping company sentenced to 20 years in prison for human trafficking, labor trafficking and money launderingRead the Press Release
Seattle –A 45-year-old Vashon Island, Washington resident was sentenced today in U.S. District Court in Seattle to 20 years in prison for 21 federal felonies related to human trafficking and forced labor, announced U.S. Attorney Tessa M. Gorman. Jesus Ruiz-Hernandez, aka Christo Jesus Escobar Solares, was found guilty in January 2024 following a 13-day jury trial. At the sentencing hearing, U.S. District Judge James L. Robart said that after observing Ruiz-Hernandez through the trial he saw “a complete lack of respect for the truth.”
“For years, Jesus Ruiz-Hernandez lived a lie. He presented himself as the upstanding and hardworking owner of a successful landscaping business on Vashon Island. In reality, Ruiz-Hernandez was neither hardworking nor law-abiding,” said U.S. Attorney Gorman. “His business model was premised on enticing vulnerable persons from Mexico to come to the United States to work for his company – and then exploiting them by forcing them to work for him for little to no money while using their debts and immigration status to keep them tethered to him as his source of cheap labor.”
“The crimes committed here will leave a scar on the victims and the entire community that Ruiz-Hernandez conned into believing that he lawfully supported, that he was pursuing the American dream when he was in fact subjecting would be workers into a life of subjugation,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I’m thankful for our task force partnerships that result in a resounding win in the fight against human trafficking and am especially grateful to both the Department of Justice and the Seattle Police Department, as it is through their key collaborations that these complex investigations are accomplished.”
Records filed in the case and testimony at trial revealed that Ruiz-Hernandez lured victims from his hometown of Vista Hermosa, Michoacan, with the promise of a better life for their families. In exchange, Ruiz-Hernandez required victims to put up collateral, including the temporary relinquishment of parental rights and interest in family properties. Ruiz-Hernandez, using smugglers he hired, brought the undocumented victims to the U.S. and then forced them to work for his company, Brothers Landscaping, on Vashon Island. He then charged the victims exorbitant fees for rent, food, and other expenses, housed them both in his home and worker properties and held ever increasing debts over their heads.
In the spring of 2017, Ruiz-Hernandez used smugglers to bring an adult victim to the United States and then used force, threats of force, and physical violence to force the victim to work for him without pay. The jury found Ruiz-Hernandez committed aggravated sexual abuse against the victim. From 2018 until August 2021, Ruiz-Hernandez forced a second victim he had brought to the U.S. to work for him by threatening him with harm. The victim was also transported and harbored for financial gain. In all, Ruiz-Hernandez was convicted of exploiting the labor of seven people not legally in the U.S.
In asking for a sentence of more than 24 years in prison, prosecutors noted that the criminal conduct in this case had gone on for more than seven years and likely involved more than the seven victims. “Ruiz-Hernandez treated his victims as nothing more than commodities to earn him money. He either refused to pay them at all, claiming that they owed him for outrageously inflated amounts for rent and other expenses, or paid them well below what they had earned. He treated them as indentured servants, forcing them to perform unpaid labor both at his house and at the rental properties.”
Ruiz-Hernandez was also convicted of six counts of money laundering. Testimony revealed that Ruiz-Hernandez and his brothers had deposited over $1.5 million in checks from customers to their bank account between 2017 and 2022. Much of those funds were payment for the work done by the victims and others the defendant illegally brought to the U.S., trafficked, harbored, and exploited. Ruiz-Hernandez took steps to keep his name off corporate documents, financial records, numerous transactions, and hundreds of thousands of dollars of international wires to Mexico. Ruiz-Hernandez and his co-conspirators used some of that laundered proceeds to purchase two pieces of property on the island.
Following the trial on the human and labor trafficking counts, the jury determined that the properties on Vashon were purchased with laundered proceeds of his illegal scheme and ordered that the properties should be forfeited to the government.
The case was investigated by Homeland Security Investigations (HSI) Task Force Officer Megan Bruneau Zentner. Detective Zentner is with the Seattle Police Department, assigned to the HSI Task Force. Detective Zentner’s position is federally funded by the Department of Justice’s Enhanced Collaborative Model with a focus on investigating labor trafficking of foreign-born victims.
The case was prosecuted by Assistant United States Attorneys Kate Crisham, Jehiel Baer, and former Assistant United States Attorney Jocelyn Cooney. Ms. Crisham is the Western District of Washington coordinator of efforts to stop human trafficking.
Owasso Man Sentenced After Being Ranked #1 in Oklahoma for Child Pornography DownloadRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Sara E. Hill sentenced Michael Joseph Moreland, 33, for Receipt and Distribution of Child Pornography and Possession of Child Pornography in Indian Country. Judge Hill ordered Moreland to serve 121 months imprisonment, followed by 10 years of supervised release. Upon his release, Moreland will also be required to register as a sex offender.
According to court documents, between Jun. 2022 and May 2023, Moreland knowingly received, distributed, and possessed at least 2,947 images and 50 videos of child pornography on his computer. These included images and videos depicting infant/toddler abuse, bestiality, and bondage of minor child victims. In the days leading up to Moreland’s arrest, he was frequently in the top five and often the number one downloader of child pornography in Oklahoma.
A federal statute for victims of child pornography allows defendants found guilty of child pornography trafficking offenses to pay restitution to known victims. The court in this case ordered $15,000 in victim restitution.
Moreland will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Homeland Security Investigations, Edmond Police Department, and Owasso Police Department investigated the case. Assistant U.S. Attorney George Jiang prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
One Detroit Violence Reduction Partnership Observes Second Chance Month by Hosting Community RoundtableRead the Press Release
DETROIT - April is Second Chance month, a time to raise awareness of and find solutions to the barriers that exist for individuals who are returning from incarceration. The One Detroit Violence Reduction Partnership is committed to helping those with criminal convictions successfully rejoin the community, and our strategy is straightforward. First, to identify the justice-impacted residents who are at most risk of re-offending and second, engage with this population to meet their most pressing needs. The One Detroit Partnership has combined government and community resources to help encourage successful reentry for justice-impacted citizens.
“Second Chances are not limited to the month of April. There are opportunities available year- round for individuals returning to their communities who are ready to take full advantage of their second chance,” said Dawn N. Ison, United States Attorney for the Eastern District of Michigan, “We understand that every person who successfully reintegrates into the community helps make our community safer."
United States Attorney Dawn N. IsonFor nearly a year, the One Detroit Partnership has been engaging with justice-impacted residents through community roundtables. The roundtables are made up of people who are currently on supervised release or probation who have been identified by the United States Probation Department and the Michigan Department of Corrections as being at moderate or severe risk of committing violent crimes. So far, we have served over 160 justice-impacted individuals along with family members in seven community roundtables. The first six roundtables all took place in Detroit’s 8th and 9th Police Precincts, which have also been the focus of One Detroit’s enforcement and prevention efforts. Last week, we expanded with our first community roundtable in the 2nd Precinct. Plans are currently underway for a community roundtable in Flint.
The roundtables consist of a cohort of roughly 20-30 parolees or probationers along with accompanying family members. The roundtable begins with the cohort hearing from a panel of justice-impacted individuals who provide motivation and insight about how to take advantage of a second chance after a criminal conviction. The panel is organized by returning citizens with messages crafted to reach the cohort and offer examples of successful reintegration into the community. At the conclusion of the panel, the justice-impacted citizens and their family members are invited to participate in breakout sessions facilitated by staff from Black Family Development and Goodwill Industries to discuss any barriers that might be preventing successful reintegration to society. Darryl Woods, CEO of Fighting the Good Fight is one of the organizers of the community roundtables. “The roundtables serve as a safe place for those who really want a second chance. They are filled with lifesaving information and resources,” stated Woods.
Darryl Woods, CEO of Fighting the Good Fight speaks with a
group of justice-impacted residents.Omaha Man Sentenced for Two Bank RobberiesRead the Press Release
United States Attorney Susan Lehr announced that Riek Kuany, age 25, of Omaha, Nebraska, was sentenced on April 26, 2024, in federal court in Omaha for two counts of bank robbery and one count of brandishing a firearm during the commission of a crime of violence. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Kuany to a total sentence of 140 months’ imprisonment. There is no parole in the federal system. After Kuany’s release from prison, he will begin a 5-year term of supervised release. In conjunction with his sentence, Kuany was ordered to pay restitution in the amount $17,547.00 to the banks for the amounts taken during the respective robberies.
On April 6, 2023, Kuany and another male entered the First Interstate Bank at 47th and L Streets in Omaha, wearing ski masks and gloves. Kuany also wore a reflective work vest. Both men held handguns and pointed them at the bank employees. Kuany slid a bag across the counter and demanded money. Bank employees took approximately $6,584 in U.S. currency from their cash drawers and put it in the bag. Kuany took the bag of cash and both men fled in a stolen SUV driven by a third individual.
On April 11, 2023, Kuany entered Bank of the West at 87th and West Center Road in Omaha, wearing a hair net and a medical face mask. Kuany was again carrying a handgun. Kuany pointed the firearm at bank employees, slid a bag across the counter, and demanded money. Bank employees took approximately $10,963 in U.S. currency from their cash drawers and put it in the bag. Kuany took the bag and cash and fled in a gold Jeep.
First Interstate Bank and Bank of the West are both insured by the Federal Deposit Insurance Corporation.
Investigation into others involved is still ongoing.
This case was investigated by the Omaha Police Department.
Oklahoma Department of Corrections Inmate Sentenced to 22 Years for Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenneth Leon Thomas, Jr., age 35, of Okemah, Oklahoma, was sentenced to 270 months in prison for Second Degree Murder in Indian Country.
The charge arose from an investigation by the Federal Bureau of Investigation.
On April 19, 2023, Thomas pleaded guilty to one count of an Information of Murder in Indian Country—Second Degree. According to investigators, on May 31, 2022, during a dispute over switching cells at the Davis Correctional Facility in Holdenville (since renamed the Allen Gamble Correctional Center), Thomas had an altercation with a fellow inmate and stabbed the inmate three times, killing him. The crime occurred in Hughes County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma. At the time of the murder, Thomas was serving 8 years on a state court conviction out of Comanche County for Assault and Battery on a Police Officer.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee. Thomas will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Ohio Man Sentenced to Nearly Four Years for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Fremont, Ohio man was sentenced to 47 months in prison for conspiracy to possess with intent to distribute methamphetamine.
Trayvion Joaquin Scott, 25, was sentenced in U.S. District Court in Gulfport.
According to court records, Scott previously pled guilty to his involvement in a large-scale drug trafficking organization that began operating in Picayune, MS, as far back as 2015. Scott’s primary involvement in the conspiracy was making drug payments on behalf of the drug trafficking organization to their source of supply in California via money transfers.
U.S. Attorney Todd W. Gee, Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration, and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations made the announcement.
The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations.
Assistant U.S. Attorney Erica Rose prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Ohio Man Sentenced for Tax Fraud ConspiracyRead the Press Release
An Ohio man was sentenced today to one year and one day in prison for conspiring to defraud the United States.
According to court documents and statements made in court, from 2016 through 2022, Christopher Karasarides conspired with his father, Christos Karasarides Jr., to defraud the United States by helping his father conceal assets from the IRS. Christos Karasarides, who was convicted by a jury in January for related tax crimes, owed the IRS millions of dollars that it was trying to collect. To thwart those efforts, Christopher helped his father hide assets from the IRS by storing $239,000 of his father’s cash in a safety deposit box in Christopher’s name. Christopher also served as a nominee owner for his father’s businesses, signed and delivered false promissory notes and filed false tax returns.
In addition to his prison sentence, U.S. District Judge Donald C. Nugent for the Northern District of Ohio ordered Christopher Karasarides to serve three years of supervised release and pay $1.5 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, Homeland Security Investigations, the Department of Treasury’s Office of Inspector General, Stark County Prosecutor’s Office, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force investigated the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
Ohio Man Sentenced for Tax Fraud ConspiracyRead the Press Release
An Ohio man was sentenced today to one year and one day in prison for conspiring to defraud the United States.
According to court documents and statements made in court, from 2016 through 2022, Christopher Karasarides conspired with his father, Christos Karasarides Jr., to defraud the United States by helping his father conceal assets from the IRS. Christos Karasarides, who was convicted by a jury in January for related tax crimes, owed the IRS millions of dollars that it was trying to collect. To thwart those efforts, Christopher helped his father hide assets from the IRS by storing $239,000 of his father’s cash in a safety deposit box in Christopher’s name. Christopher also served as a nominee owner for his father’s businesses, signed and delivered false promissory notes and filed false tax returns.
In addition to his prison sentence, U.S. District Judge Donald C. Nugent for the Northern District of Ohio ordered Christopher Karasarides to serve three years of supervised release and pay $1.5 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, Homeland Security Investigations, the Department of Treasury’s Office of Inspector General, Stark County Prosecutor’s Office, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force investigated the case.
Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio prosecuted the case.
North Attleboro Man Pleads Guilty to Child Pornography and Distribution of Animal Abuse Video ChargesRead the Press Release
PROVIDENCE, R.I. – A North Attleboro, MA, resident today pleaded guilty in federal court in Rhode Island to distributing, receiving, possessing, and accessing with intent to view child pornography, and to distributing and transporting an animal crush video, announced United States Attorney Zachary A. Cunha.
Samuel Maigret, 28, pleaded guilty as charged in a six-count indictment with distribution of child pornography, receipt of child pornography, possession of child pornography, access with intent to view child pornography, distribution of an animal crush video, and transfer of obscene material (animal crush video).
According to charging documents and information presented to the court, during a September 2021 court-authorized search of Maigret’s then Pawtucket residence and a cellphone located on his person, Homeland Security Investigations agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force discovered a significant quantity of images and videos depicting images of child sexual abuse materials, including videos of adult males involved in sexual acts with infants. Additionally, a forensic review of Maigret’s digital storage devices revealed evidence that Maigret used online applications to distribute child sexual abuse materials and to distribute a video that depicts an individual causing serious injury to and what appears to be the death of a dog.
Maigret is scheduled to be sentenced on September 19, 2024. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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.
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Nigerian Citizen Sentenced in Connection with International Ring of Online Romance ScamsRead the Press Release
Memphis, TN – A Nigerian citizen residing in Georgia has been sentenced to five years in federal prison for his role in a conspiracy that perpetuated a series of romance and investment scams against victims across the United States, including in Western Tennessee. Efe Egbowawa, 40, was convicted of conspiracy to commit money laundering as part of a scheme that used false identities and email accounts on internet dating sites to trick people into wiring or mailing money to shell companies and fictitious agents. Kevin G. Ritz, U.S. Attorney for the Western District of Tennessee announced the sentencing today.
A federal grand jury in the Western District of Tennessee indicted Egbowawa and the following individuals on June 29, 2023 with conspiracy to commit fraud and money laundering:
- Igocha Mac-Okor, 40, a Nigerian citizen residing in the Atlanta area, and
- Kay Ozegbe, 44, a naturalized U.S. citizen residing in Atlanta.
Evidence presented in court revealed that from 2017 to approximately November 2021, conspiracy members assumed false identities on email, social media, gaming applications, networking websites, dating websites, and other internet-based platforms in a scheme to trick victims into entering friendships and romantic relationships. The defendants then played various roles in exploiting those connections to convince their victims to send them money via wire, check, U.S. mail, and package delivery services.
As part of the conspiracy, romance scammers or “handlers” posed as potential friends or romantic partners and entered online relationships with unwitting victims. The relationships usually developed quickly through social media contact, text messages, email, and phone calls. Once the victim was clearly engaged in the scam, the scammer would begin to ask for emergency financial assistance. If the victim sent money, the scammer would ask for increasingly larger amounts of financial assistance.
Members of the conspiracy played different roles. Some functioned as the scammers, disguising their identities with online aliases, and luring unsuspecting victims into relationships. Others functioned as “money mules,” that is, individuals who moved the financial proceeds of the scams through several layers of bank accounts and shell companies to hide the sources of the money and make it difficult to trace.
On April 17, U.S. District Court Judge Thomas L. Parker sentenced Egbowawa to 60 months in federal prison. Ozegbe pled guilty on January 29 to conspiracy to commit money laundering and will be sentenced on May 24, 2024. Mac-Okor is scheduled for trial on August 5, 2024.
The case was investigated by the Federal Bureau of Investigation Memphis Field Office and the United States Postal Investigation Service.
United States Attorney Kevin Ritz thanked Assistant U.S. Attorney Scott Smith, who prosecuted this case, as well as law enforcement partners for their role in the investigation.
Newberry Man Sentenced to 40 Years in Federal Prison for Sex Trafficking Conspiracy, Firearm Possession and Witness TamperingRead the Press Release
COLUMBIA, S.C. — Eric Rashun Jones, 31, of Newberry, was sentenced to 40 years in federal prison after pleading guilty to human trafficking conspiracy, felon in possession of a firearm and ammunition, and witness tampering.
Evidence presented in court showed that from August 2018 through November 2022, Jones violently exploited women in the commercial sex trade for his financial gain. He did so by means of physical violence and force, including beating victims with a pistol and other objects and hitting victims with closed fists causing victims multiple surgeries, hospitalizations, broken bones and teeth, permanent injuries, and scarring. He also directed and recorded on his phone the assault of many victims, preventing victims from trusting others involved in the Jones conspiracy. He also used sexual violence, including compelling women to engage in sex acts against their will.
He abducted two of his victims and restrained them for multiple days. He introduced drugs to some victims, promoted the drug addictions of others, including fentanyl, and exploited withdrawal symptoms to coerce commercial sex. He used fear and threats of violence and death of victims spoke with the police. He used fraud, including recruiting victims under false pretenses, and high levels of control, including controlling how many victims worked, ate, showered, travelled, spent money, who they spoke to, and access to phones. He isolated his victims from others, and tattooed many with his name, which victims described as Jones signifying ownership.
After initially splitting commercial sex proceeds, Jones commonly confiscated proceeds for his financial gain. Evidence presented indicated 19 women were connected to the conspiracy he led, many of whom were identified as victims in the case. Victims described fearing Jones would kill them, feeling trapped, and feeling like they had no option to leave. He also tampered and interfered with the investigation by directing victims to not speak with agents and threatening to harm their families if they did.
“Our office will continue to bring every resource to bear to vindicate victims’ rights and hold traffickers like Jones accountable,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “The cruelty, violence, and exploitation Jones showed his victims has no place in our society, and we are grateful for the accountably he’s received. I want to particularly acknowledge the courage and resilience of the victims and the hard work of law enforcement to see this case through.”
“Jones’ crimes revealed the depth of human depravity and outright evil he casually and continuously imposed upon his victims,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “His heinous crimes yielded lifelong trauma that will be hard to reverse. This stiff sentence of justice removes him from the innocent victims’ lives and places him where he will no longer be able to inflict harm. The FBI is grateful for our local law enforcement partners for conducting this joint comprehensive investigation to hold this violent offender accountable. We also recognize the diligent work of the Victim Specialists who supported and continue to support the victims with valuable resources.”
United States District Judge Sherri A. Lydon sentenced Jones to 40 years imprisonment, to be followed by a lifetime term of court-ordered supervision, no contact with victims, and $65,000 in restitution payable to eight victims. There is no parole in the federal system. Jones’ co-defendant, Brittany Cromer, previously pleaded guilty to human trafficking conspiracy, and was sentenced to five years earlier this month.
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 FBI Columbia Field Office, with assistance from the Simpsonville Police Department, Greenville Police Department, Greenville County Sheriff’s Office, Newberry County Sheriff’s Office, Newberry Police Department, Lexington County Sheriff’s Department, Richland County Sheriff’s Department, Anderson County Sheriff’s Office, and the South Carolina Department of Corrections.
Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein prosecuted the case.
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