Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 20 March 2024
Former Correctional Officer Sentenced to Eight Months in Federal Prison for Accepting Bribes to Smuggle Tobacco into Terre Haute Correctional ComplexRead the Press Release
TERRE HAUTE- Jordan Kelsheimer, 25, of Blanford, Indiana, has been sentenced to eight months in federal prison after pleading guilty to accepting a bribe as a public official.
According to court documents, beginning in 2019, Jordan Kelsheimer was employed with the United States Department of Justice, Federal Bureau of Prisons, as a Corrections Officer. At the time of the offense, Kelsheimer was employed at the Federal Correctional Complex in Terre Haute, Indiana.
In the summer of 2022, Bureau of Prisons investigators initiated an investigation of the defendant after receiving multiple reports from inmate witnesses that Kelsheimer was smuggling tobacco into the facility. Tobacco is prohibited for inmate use in federal prisons. The witnesses reported that they repeatedly observed Kelsheimer in intimate contact with “Inmate 1” in and near her office. The reported contact included kissing and, on occasion, more intimate contact. Investigators reviewed prison surveillance footage from July 2022, which showed repeated contact between Kelsheimer and Inmate 1 in and near her office, as reported. The witnesses also reported that Inmate 1 was selling the cigarettes to other inmates in the prison.
On July 18, 2022, staff searched Kelsheimer when she reported for work at the prison. Kelsheimer had eight packs of Newport cigarettes on her person, which she ultimately acknowledged she intended to deliver to Inmate 1 that day. Kelsheimer also had a stack of love letters from Inmate 1 on her person. She admitted that she was paid $400 per carton by Inmate 1’s brother via CashApp, and she communicated with the brother by text messaging. Electronic records showed that she received a total of 15 separate bribe payments for a total of $5,140.
“Corrupt correctional officers fuel the contraband problems in our prison facilities and exploit the vulnerability of inmates for their own profit,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Contraband sales fuel a cycle of debt, extortion, and violence, and officials whose honor is for sale endanger every inmate and staff member in the facility. As the sentence here demonstrates, these corrupt officers will find themselves returned to the prisons as inmates.”
FBI and Department of Justice- Office of Inspector General’s Chicago Field Office investigated this case. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Kelsheimer be supervised by the U.S. Probation Office for two years following her release from federal prison, and pay a $500 fine.
U.S. Attorney Myers thanked Assistant United States Attorney James M. Warden, who prosecuted this case.
###
Five Men Charged with Murder in Connection with Failed Robbery Attempt That Left Two DeadRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and David Gibson, the Commissioner of the Mount Vernon Police Department, announced the arrest of ILARIO CONTRERAS, JERPI DIAZ-FELIZ, a/k/a “Jorge Diaz-Feliz,” JHOAN DIAZ-FELIZ, VICTOR JIMENEZ, and JOSEPH PEREZ. The defendants are charged with murder in connection with an attempted gunpoint robbery of a Mount Vernon warehouse that sells various unlicensed marijuana and nicotine products. Two individuals — one employee of the warehouse and one member of the robbery crew — were shot and killed during the failed robbery attempt. The defendants were arrested and will be presented later today before U.S. Magistrate Judge Victoria Reznik.
U.S. Attorney Damian Williams said: “As alleged in the Complaint, these five defendants carried out a violent armed robbery that left two dead in Mount Vernon. The dedication, bravery, and expertise of our law enforcement partners led to the swift arrest of this dangerous crew. This was an outstanding coordinated effort to uphold the law and keep the public safe. This Office is determined to ensure that these defendants now face justice.”
FBI Assistant Director in Charge James Smith said: “These five subjects allegedly orchestrated an attempted armed robbery of a warehouse that sells to smoke shops, which quickly turned deadly as a shootout ensued, culminating in the death of both an employee and one robbery crew affiliate. The defendants’ alleged brazen actions demonstrated extreme disregard for public safety and posed a significant threat to the community. The FBI will not cease its relentless pursuit of those who choose violence, especially using firearms, to further their criminal behavior. We urge the public to contact us at 1-800-Call-FBI or at tips.fbi.gov with any additional information related to this case.”
Mount Vernon Police Commissioner David Gibson said: “I would like to thank the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Westchester County Safe Streets Task Force, the Westchester County District Attorney’s Office, and the New York Police Department for their partnership, assistance, and continued support in this investigation. I would also like to thank the Westchester County Police Department and the Westchester Real Time Crime Center for their vital assistance and teamwork. The Mount Vernon Police Department and the Patterson-Howard administration takes crime in our City seriously. We want to send a message to those who seek to commit heinous crimes in our community. We will partner with local, state, and federal partners to prosecute them to the fullest extent of the law. ”
As alleged in the Complaint filed today in White Plains federal court:[1]
On or about March 19, 2024, ILARIO CONTRERAS, JERPI DIAZ-FELIZ, JHOAN DIAZ-FELIZ, VICTOR JIMENEZ, JOSEPH PEREZ, and others known and unknown attempted to rob at gunpoint a warehouse in Mount Vernon that sells various unlicensed marijuana and nicotine products. As employees of the warehouse were assisting customers, approximately 10 to 15 people, including the defendants, approached the employees and customers with weapons and forced them back into the warehouse at gunpoint. A still image from video surveillance outside the warehouse is depicted below:
Shortly after the defendants and others approached the employees and customers with firearms, a gunfight between the warehouse employees and defendants broke out. As a result, one of the employees and one of the robbers were killed.
If you have any information about this case, please contact the FBI at 1-800-Call-FBI or tips.fbi.gov.
* * *
CONTRERAS, 23; JERPI DIAZ-FELIZ, 25; JHOAN DIAZ-FELIZ, 23; JIMENEZ, 35; and PEREZ, 26, are each charged with one count of conspiracy to commit Hobbs Act Robbery, which carries a maximum sentence of 20 years in prison, one count of conspiracy to engage in drug trafficking, which carries a maximum sentence of life in prison, one count of possessing and discharging a firearm in furtherance of drug trafficking activity, which carries a maximum sentence of life in prison, and murder through the use of a firearm in furtherance of a drug trafficking crime, which carries a maximum sentence of the death penalty or life imprisonment.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.
Mr. Williams praised the work of the FBI’s Westchester County Safe Streets Task Force and the Mount Vernon Police Department. Mr. Williams also thanked the Westchester County District Attorney’s Office, the Westchester County Police Department, the New York City Police Department, and the Westchester Real Time Crime Center for their invaluable assistance.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jared D. Hoffman and Justin L. Brooke are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Federal jury convicts Billings woman of trafficking methRead the Press Release
BILLINGS — A federal jury on March 19 convicted a Billings woman who was accused of trafficking methamphetamine by walking the drug across the Mexican border using her U.S. passport and then mailing the drug from California to a Billings contact for distribution, U.S. Attorney Jesse Laslovich said today.
After a two-day trial that began on March 18, the jury found Dawn Marie Guevara, 43, guilty of conspiracy to possess with intent to distribute meth as charged in an indictment. Guevara faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for July 18 and continued Guevara’s detention pending further proceedings.
“Guevara’s convictions are yet another example of our office’s success in holding people accountable for trafficking drugs directly from Mexico to Montana, which is exactly what Guevara did here. Her convictions are due to the years of relentless work of our federal and state partners to bring Guevara and her co-defendants to justice, for which I am very grateful. I also thank Assistant U.S. Attorneys Colin M. Rubich and Jacob Yerger and our entire trial team for their diligent work in obtaining this result,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that Guevara conspired with others to distribute meth in the Billings community from about July 2018 to December 2018. In July 2018, Montana Division of Criminal Investigation received information that Guevara, who was living in Mexico, was selling meth to an individual through social media orders and arranging to have another person in Billings receive the meth to complete the transaction. Law enforcement obtained meth sent by Guevara in a series of controlled purchases and for increasing amounts. and through an undercover. The investigation determined that Guevara would obtain meth in Mexico, then cross into the United States using her U.S. passport and mail the meth from a post office in San Ysidro. Money collected from sales was wired to Guevara in Mexico. Border crossing information determined that Guevara entered the United States through the San Ysidro Port of Entry approximately 20 times between July 7, 2018 and Oct. 18, 2018. Guevara was arrested in 2023 when she crossed the border from Mexico.
Assistant U.S. Attorneys Colin M. Rubich and Jacob Yerger are prosecuting the case. The Montana Division of Criminal Investigation, Drug Enforcement Administration and U.S. Postal Service 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.
XXX
Federal grand jury indicts four defendants for their roles in scheme that defrauded thousands of companies out of millions of dollarsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Dylan Paul Costanza, 30, Tommy Lee Coburn, 29, Kyle Paul Edward Gibson, 33, all of Florida, and Heather Dierna, 30, of Rochester, NY, with conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Some of the defendants are also facing additional charges of mail fraud and conspiracy to engage in money laundering.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the indictment, between October 2020, and January 2022, the defendants obtained the names and addresses of primarily large companies located throughout the United States, where they could mail what appeared to be a legitimate invoice for cleaner/degreaser products that the victim companies would believe they had previously ordered and received. Large companies were targeted because it was less likely during the COVID-19 pandemic that account payable departments in these companies would question whether cleaner/degreaser products listed on the fraudulent invoices were ordered and received. The defendants also targeted large companies because the relatively small amounts owed on the fraudulent invoices would be less likely to raise questions regarding the legitimacy of the invoices, and because the accounts payable departments do not order products for their companies, and would be less likely to question or be suspicious of the grossly inflated prices for the cleaner/degreaser products.
Fraudulent invoices were mailed from Florida in the names of Hi-Tech Industrial and Nationwide Chemical, both sham companies. Additional fraudulent invoices under the names North Atlantic Supply and Top Tier Chemicals, also sham companies, were mailed from Rochester. Intended to look like legitimate invoices, the defendants placed statements that the documents were merely “solicitations,” and that there was no obligation to pay the amounts listed on the fraudulent invoices, in hard-to-find places on page two of the invoice. The statements were inserted so that if the defendants were ever later questioned, they could falsely claim that the intended purpose of the documents was merely to “solicit” future business from the victim companies.
As a result of the conspiracy, approximately 4,640 victim companies were tricked into believing that they had received a legitimate invoice for cleaner/degreaser products, paying approximately $3,721,229.31 to the sham companies. After receiving payment, the defendants attempted to cover up their fraud by having inexpensive cleaner/degreaser products delivered to the victim companies. A total of 10 companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Federal Jury Convicts Man of Damaging Reproductive Health Services Facilities in ChicagoRead the Press Release
CHICAGO — A federal jury today convicted a man of intentionally damaging two reproductive health services facilities in Chicago.
MICHAEL BARRON, 42, of Chicago, used a sling shot and metal ball bearings to damage the two facilities on six occasions in May and June of 2021.
Barron was convicted on all six counts of intentionally damaging the two facilities because they provided reproductive health services. The jury returned the verdicts after a two-day trial in the courtroom of U.S. Magistrate Judge Young B. Kim in the Northern District of Illinois.
Each count of conviction is punishable by a maximum sentence of one year in federal prison. Sentencing was set for July 9, 2024.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and LaDon Reynolds, United States Marshal for the Northern District of Illinois. The government is represented by Assistant U.S. Attorneys Sivashree Sundaram and Paige Nutini.
Federal Inmate Charged with Sending Threatening Letter to U.S. Probation Officer in ChicagoRead the Press Release
CHICAGO — A federal inmate has been charged with sending a threatening letter to a U.S. Probation officer in Chicago.
An indictment returned in U.S. District Court in Chicago charges GLENN BOWDEN, 62, most recently of Riverdale, Ill., with one count of mailing a threatening communication, one count of obstructing an official proceeding, and one count of willfully making false statements to the FBI. Arraignment is set for April 4, 2024, at 11:00 a.m. before U.S. Magistrate Judge Beth W. Jantz.
According to the indictment, Bowden was incarcerated in a federal prison on May 19, 2023, when he mailed a letter threatening to injure the U.S. Probation officer. The officer had conducted a presentence investigation of Bowden prior to Bowden’s sentencing on federal robbery charges in 2022. Bowden in the robbery case was sentenced to more than nine years in prison.
In addition to the alleged threat, the obstruction count in the new indictment alleges that Bowden authored a letter purportedly from his prison chaplain and caused it to be filed with the Court last year in support of a motion for compassionate release. The chaplain had no knowledge of the letter, which advocated for Bowden’s release from prison, the indictment states.
The false statements count pertains to alleged false statements provided by Bowden to the FBI during its investigation into the letters. When interviewed by the FBI, Bowden falsely claimed that he did not type or send the letter to the Probation officer and that he knew nothing about the Chaplain’s letter or who wrote it, the indictment states.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and LaDon A. Reynolds, United States Marshal for the Northern District of Illinois. The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Bowden indictmentFather and Two Sons Indicted and Arrested for Conspiracy to Transport Stolen Catalytic Converters and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment charging three men with conspiring to transport stolen property interstate and money laundering.
According to court documents, Jaime A. Pérez-Hernández, Jaime Pérez-Ramírez, and Jesiel Pérez-Hernández conspired to purchase catalytic converters that were stolen from vehicles in Puerto Rico and transport them in interstate commerce to sell them to entities in New Jersey and Massachusetts, all in order to enrich themselves.
Catalytic converters are a component of an automotive vehicle’s exhaust device that reduces the toxic gas and pollutants from a vehicle’s internal combustion engine into safe emissions. To do so, catalytic converters use precious metals in their center, or “core”, that are regularly targeted for theft due to the high value of these metals, especially palladium, platinum, and rhodium. Some of these precious metals are more valuable per ounce than gold, and their value has been increasing in recent years. The black-market price for catalytic converters can exceed $1,000 each, depending on the type of vehicle, the source state, and other factors. Thus, the theft of catalytic converters has become increasingly popular because of their value, widespread availability, and relative ease to steal.
Beginning in October 2020, the defendants used Facebook to advertise the purchase of catalytic converters from the public in Puerto Rico. The defendants used their two metal recycling companies, Borinken Catalytics LLC and Perez Metal Recycle, to purchase stolen catalytic converters.
After amassing catalytic converters, the Conspirators used private commercial shipping companies to regularly transport and sell the catalytic converters to various catalytic converter extraction companies in the continental United States, who in turn extracted and shipped the precious metals to refineries. The defendants earned more than $3,000,000 from the sale of catalytic converters between October 2020 and the date of the indictment.
Defendants Jaime A. Pérez-Hernández and Jaime Pérez-Ramírez face one count of conspiracy to commit money laundering. The defendants received wire transfers, cash, and checks for the bulk shipments of catalytic converters, which they withdrew and transferred to conceal the stolen catalytic converter proceeds.
“Amidst a rise in catalytic converter thefts in Puerto Rico and in the continental United States, the U.S. Attorney’s Office, along with the Justice Department have executed investigations and arrest operations in order to deter this multimillion-dollar catalytic converter theft trend,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “We will continue to work alongside the FBI and our state and local partners to disrupt criminal conspiracies like this one that target innocent people.”
“The theft and resale of catalytic converters is a serious crime that not only harms the environment but also undermines the safety and security of our communities,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “This coordinated effort spanned multiple states and involved numerous law enforcement agencies. I am proud of the tireless efforts of our agents and law enforcement partners in bringing these criminals to justice.”
The defendants are scheduled for their initial court appearance today before U.S. Magistrate Judge Héctor Ramos-Vega of the U.S. District Court for the District of Puerto Rico. If convicted, they face a maximum penalty of 10 years in prison for the conspiracy to transport stolen property interstate, and up to 20 years for the money laundering conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is in charge of the investigation of the case, with the collaboration of the following agencies: Puerto Rico Police Bureau, PR Department of Treasury (Hacienda), Customs and Border Protection, Homeland Security Investigations, Bayamón Municipal Police, Carolina Municipal Police, the PR Department of Correction and Rehabilitation, and the US Postal Inspection Service.
Assistant U.S. Attorneys E. Giovannie Mercado, Carlos Romo-Aledo, and Cesar Rivera-Díaz from the U.S. Attorney’s Office for the District of Puerto Rico; and Cesar S. Rivera-Giraud, Trial Attorney from the Violent Crime & Racketeering Section, Criminal Division, are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Erie Resident Sentenced to Seven Years in Prison on Conviction for Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, was sentenced in federal court on March 19, 2024, to seven years in prison, to be followed by 10 years of supervised release, and ordered to pay restitution in the amount of $18,000 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Darren Steven George Akers, 48.
According to information presented to the Court, on or about March 9, 2023, Akers received and attempted to receive images depicting prepubescent minors engaging in sexually explicit conduct. Akers also possessed and accessed with intent to view child sexual abuse material from in and around May 2022 to in and around March 2023.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and Pennsylvania State Police for the investigation leading to the successful prosecution of Akers.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dominican Republic Native Charged with Illegal ReentryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adony Rivera-Cortorreal, age 28, of the Dominican Republic, was indicted on March 19, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Rivera-Cortorreal was previously removed from the United States on April 2, 2019, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on March 2, 2023, Rivera-Cortorreal was encountered in Susquehanna County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Kyle Moreno is prosecuting the case.
The maximum penalty under federal law for this offense is ten 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Crafton Resident Sentenced to Seven and a Half Years in Prison for Conspiring to Distribute FentanylRead the Press Release
PITTSBURGH, Pa. - A resident of Crafton, Pennsylvania, has been sentenced in federal court to 90 months of imprisonment, to be followed by four years of supervised release, on his conviction for violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Robert Allen, 44.
According to information presented to the Court, on May 11, 2017, Allen conspired to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl.
Prior to imposing sentence, Judge Bissoon stated that the sentence was meant to reflect the seriousness of the defendant’s crime.
Assistant United States Attorneys Katherine C. Jordan and Stephen R. Kaufman prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and Pittsburgh City Police for the investigation leading to the successful prosecution of Allen.
Colorado CEO and Fund Manager Sentenced to 71 Months in Prison for $10.4 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Denver, Colorado, CEO was sentenced to 71 months in prison for conducting a securities scheme to fraudulently obtain $10.4 million from investors through various misrepresentations about fund operations, his background, and his contribution to the fund, U.S. Attorney Philip R. Sellinger announced today.
Samuel J. Mancini, 57, previously pleaded guilty before U.S. District Court Judge Cecchi to an information charging him with one count of securities fraud. Judge Cecchi imposed the sentence in Newark federal court.
U.S. Attorney Philip R. Sellinger“This defendant concocted an elaborate scheme to swindle unsuspecting victims out of their hard-earned money. His lies and theft were successful to the tune of $10.4 million – right up to the moment law enforcement caught up with him. He will now spend the next several years of his life in prison, a just punishment for his crimes.”
“Schemes to make easy money on the backs of honest investors never work,” FBI – Newark Special Agent in Charge James E. Dennehy said. “History is littered with criminals similar to Mancini who think they will ultimately walk away with the millions they’ve stolen. It never works. At the end of the day, victims aren’t just going to accept their money is gone and not demand justice. That’s where the FBI – Newark and our law enforcement partners can help, so please reach out to us if you face a similar situation like the victims who believed in Mancini.”
According to documents filed in this case and statements made in court:
Mancini managed and controlled Outdoor Capital Partners LLC (OCP), which he purported to be a venture capital and private equity firm. OCP served as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund. Mancini used OCP and OCP Italia to engage in the fraudulent scheme.
From February 2020 through July 2021, Mancini promised investors that he was raising $20 million, including $5 million of his own money, for OCP Italia to invest solely in acquiring controlling interests in three Italian cycling companies. Mancini represented to investors that the acquisitions would take place soon after the fund closed. To induce investments, Mancini promised investors approximately 70 percent of OCP Italia’s operating profits.
Mancini repeatedly misrepresented his finances and his contribution to OCP Italia. Mancini also misrepresented OCP Italia’s ability to close on the acquisitions. OCP Italia never acquired any of the Italian cycling companies. Instead, Mancini defaulted on contracts, diverted investor funds out of OCP Italia, and, in certain instances, paid investor funds to other investors seeking redemption.
Mancini also misled investors about his educational background by representing himself as a graduate of a prestigious military academy when, in fact, Mancini had failed to graduate from the academy due to an ethical violation.
When confronted with requests for transparency and redemptions by certain investors in OCP Italia, Mancini failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation and financial records. Mancini fraudulently obtained approximately $10.4 million from victims.
In addition to the prison term, Judge Cecchi sentenced Mancini to three years of supervised release.
The U.S. Securities and Exchange Commission has filed a civil complaint against Mancini based on the allegations underlying the securities fraud scheme to which Mancini pleaded guilty today.
U.S. Attorney Sellinger credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing. He also thanked the FBI Denver Field Office, under the direction of Special Agent in Charge Mark D. Michalek.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Deputy Chief of the Economic Crimes Unit, and Assistant U.S. Attorney James H. Graham of the Organized Crime/Gangs Unit.
Collin County man sentenced for bankruptcy-related fraudRead the Press Release
SHERMAN, Texas – A McKinney man has been sentenced for bankruptcy-related fraud in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Jacobie Travinski Johnson, 53, was convicted of concealing assets in a pending bankruptcy proceeding and was sentenced to 60 months in federal prison by U.S. District Judge Amos Mazzant on March 19, 2024.
According to information presented in court, Johnson filed a voluntary petition for Chapter 13 Bankruptcy in the Eastern District of Texas. In order to take advantage of the relief offered through the bankruptcy process, Johnson was required to truthfully disclose his assets, including his accounts at any financial institution, to the bankruptcy court, the trustee, and his creditors. Instead, Johnson concealed multiple accounts that he owned or controlled. Johnson also concealed hundreds of thousands of dollars, which were proceeds from fraudulently obtained Paycheck Protection Program loans, that he deposited into the concealed accounts.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Sean J. Taylor.
###
Brooklyn Man Pleads Guilty to Possessing a Handgun with an Obliterated Serial NumberRead the Press Release
ALBANY, NEW YORK – Adam Gomez, age 26, of Brooklyn, New York, pled guilty today to unlawfully possessing a handgun with an obliterated serial number.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Gomez admitted that on September 8, 2022, in the parking lot of a shopping mall in Albany County, he unlawfully possessed a Glock 17 handgun with an obliterated serial number.
Gomez faces a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
HSI investigated the case. Assistant U.S. Attorney Rick Belliss is prosecuting the case.
Brazilian Man Charged with Escaping from Federal CustodyRead the Press Release
BOSTON – A Brazilian man residing in Framingham has been charged with allegedly escaping from federal custody while in transport to the Wyatt Detention Center in Rhode Island.
Victor Rodrigues De Moura-Pereria, 20, was charged with one count of escape from federal custody. He will appear in federal court in Boston on March 25, 2024.
According to the charging documents, in September 2021, Rodrigues was arrested by federal authorities in Arizona after unlawfully entering the United States. He was subsequently placed into removal proceedings in October 2021, but allegedly failed to report and was considered an absconder.
It is alleged that on Feb. 25, 2024, in Framingham, Mass., Rodrigues was approached by local law enforcement due to the outstanding warrant for his arrest. It is further alleged that Rodrigues ignored officers’ commands and resisted arrest. Rodrigues was then transferred into the custody of immigration officials.
On Feb. 26, 2024, while being transported to the Wyatt Detention Center in Rhode Island , Rodrigues made numerous attempts to escape. Specifically, it is alleged that – while placed in full restraints and seated in the prisoner compartment of the transport van – Rodrigues attempted to unlock the passenger side door by pulling on the lock pin with his teeth. Rodrigues then allegedly forced his body through a small gap between the vehicle’s rear cage and passenger side window and into the vehicle’s storage compartment, where he pulled the emergency release pull tab, opened the rear door and jumped out onto the highway. After exiting the transport van, Rodrigues ran down the middle of the highway and disappeared.
According to the charging documents, Rodrigues was later located inside a wooden fenced area behind a building in Waltham, Mass. approximately a quarter mile from where he exited the transport van.
The charge of escape provides for a sentence of up to one year in prison, one year of supervised release and a fine of up to $ 100,000. If convicted, Rodrigues faces deportation after serving any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Enforcement and Removal Operations (ERO), U.S. Immigration and Customs Enforcement (ICE), Boston made the announcement today. Valuable assistance was provided by the Waltham Police Department and the Massachusetts State Police. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ashville Resident Sentenced to More Than 36 Years in Prison for Production and Possession of Materials Depicting the Sexual Exploitation of a MinorRead the Press Release
JOHNSTOWN, Pa. – A resident of Ashville, Pennsylvania, was sentenced in federal court to a total of 440 months in prison, to be followed by a lifetime term of supervised release, on his convictions for production and possession of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Kim R. Gibson imposed the sentence on Michael Joseph Sollenberger, 41, on March 19, 2024.
According to information presented to the Court, from February 2018 to February 2019, and from January 2019 to January 2020, in the Western District of Pennsylvania, Sollenberger produced images of minors engaging in sexually explicit conduct. In addition, in and around June 2020, Sollenberger possessed images of minors engaged in sexually explicit conduct.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Homeland Security Investigations and Pennsylvania State Police for the investigation that led to the successful prosecution of Sollenberger.
This case was brought as a 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.
Arlington doctor who illegally flooded Northern Virginia with oxycodone pills sentenced to 10 years in prisonRead the Press Release
ALEXANDRIA, Va. – An Arlington woman convicted of illegally prescribing and distributing over a million oxycodone pills was sentenced today to 10 years in prison.
According to court records and evidence presented at trial, Kirsten Van Steenberg Ball, 69, was a primary care physician who operated a medical practice out of her home in Arlington.
Ball directed her office manager, Candie Marie Calix, 42, of Front Royal, to recruit other individuals - including several of Calix’s immediate family members - to become pain patients of Dr. Ball’s so that she could prescribe large quantities of oxycodone to them. Calix, in turn, then sold the tens of thousands of oxycodone pills that Ball prescribed to them. Calix was herself a patient of Ball. Ball prescribed Calix approximately 50,000 oxycodone pills over 10 years.
It was common for Ball to prescribe her patients as many as 360 oxycodone 30-mg pills per month, although she would split the prescriptions into two 180-pill prescriptions to try to disguise the amount. Ball continued to prescribe oxycodone to patients showing blatant signs of drug dependence, abuse, diversion, and addiction; to patients that had been arrested and convicted for selling illegal drugs; and to patients who asked for early refills of oxycodone based on unsubstantiated claims of lost or stolen pills.
The government’s investigation identified three of Ball’s former patients who died of drug overdoses. Ball consistently overprescribed oxycodone to these patients and ignored signs of drug abuse, fueling their addictions.
For example, Ball concurrently prescribed a patient from Fauquier County large doses of both oxycodone and benzodiazepines, which when prescribed in combination with opioids significantly increases the risk of overdose. Ball repeatedly documented in the patient’s chart that the patient was overusing or abusing her medication and had even been admitted to the local emergency room for a likely drug overdose, yet Ball continued to prescribe oxycodone to her. On July 22, 2016, Ball prescribed 240 oxycodone 30-mg pills. A few weeks later, the patient was found dead in her home of an oxycodone overdose.
In 2015, at the same time Ball was under investigation by state regulatory authorities, Ball discharged a patient whom she knew was overusing his medication. Rather than referring the patient to a substance abuse clinic or another medical provider, Ball prescribed a total of 500 oxycodone 30-mg tablets, along with 90 diazepam 10-mg tablets, and 60 methadone 10-mg tablets, for the month of June 2015, even though she knew this was a dangerous combination of drugs. On July 14, 2015, Ball issued a final prescription to the patient for another 160 oxycodone 30-mg pills. In August 2015, the patient died of a drug overdose in his home. The Medical Examiner’s report noted a “toxic level of oxycodone.”
While under investigation by the Virginia Department of Health Professions (DHP) in 2014 and 2015, and again in 2021, Ball falsified records that she submitted to DHP to cover up the fact that she was prescribing oxycodone to patients for no legitimate medical purpose and outside the usual course of professional practice. Following the first DHP investigation, Ball directed Calix to use a false name in her capacity as office manager to hide the fact that Calix was receiving oxycodone from Ball.
The FBI introduced an undercover law enforcement officer, purporting to be the nephew of an existing patient. In recorded conversations, the undercover told Ball that he was sharing pills with his family members. In response, Ball told the undercover that was “a felony,” that she would simply not write it down in his patient file, and not to tell anybody else. She continued to prescribe escalating quantities of oxycodone to the undercover.
On Dec. 12, 2023, a federal jury convicted Ball on one count of conspiracy to distribute oxycodone, and 19 counts of distribution of oxycodone. On Sept. 28, 2022, Calix was sentenced to seven years in prison for conspiring to distribute oxycodone.
In addition to the 10-year prison sentence, the Court ordered Ball to forfeit $750,000 and pay an additional $50,000 in community restitution. The community restitution payment, which is the first of its kind in the Eastern District of Virginia, will go to two separate Virginia state entities, including the department tasked with receiving federal funds for substance abuse programs in the state.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Heather D. Call prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-80.
Albany Resident Sentenced to 41 Months for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Jamie Johnson, age 38, of Albany, was sentenced today to 41 months in prison for filing false unemployment insurance applications online with the New York State Department of Labor (NYSDOL) in order to fraudulently obtain $701,441 in benefits issued in the names of other people. The benefits included funds from federal programs intended to help out-of-work New Yorkers during the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; New York State Inspector General Lucy Lang; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (USDOL-OIG).
Johnson pled guilty in February 2022 and admitted to receiving personal identifying information from other people and using it to file false unemployment insurance applications in other people’s names on NYSDOL’s online systems. She then collected the resulting unemployment insurance benefits, including by driving a Maserati sport utility vehicle to Capital Region banks and withdrawing cash using debit cards containing the benefits.
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, to begin after Johnson is released from prison, and ordered her to pay $701,441 in restitution to the State of New York. He also ordered Johnson to forfeit the Maserati, more than $200,000 in cash, and multiple jewelry items.
Judge Kahn had previously sentenced three of Johnson’s co-conspirators, Thomas Brace, Taliek Lanier, and Errol Murray, to terms of imprisonment of time served, 12 months, and 12 months, respectively. Johnson’s co-conspirators all admitted that they had provided her with personal information of others that Johnson used to file false unemployment insurance applications.
This case was investigated by the New York State Inspector General’s Office, HSI, USPIS and USDOL-OIG, with assistance from the NYSDOL Office of Special Investigations, the Capital Region Crime Analysis Center, the Albany County Department of Social Services, and the United States Marshals Service. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Tuesday 19 March 2024
Westbrook Man Sentenced to 18 Years for Sexually Exploiting a ChildRead the Press Release
PORTLAND, Maine: A Westbrook man was sentenced today in U.S. District Court in Portland for sexually exploiting a child.
U.S. District Judge John A. Woodcock, Jr. sentenced Rayevon Deschambault, 28, to 216 months in prison followed by 10 years of supervised release. Deschambault was convicted of two counts of sexually exploiting a child following a two-day jury trial in U.S. District Court in Portland in January 2023. Deschambault also received a concurrent 27-month sentence on an unrelated charge of distributing cocaine base, stemming from his sale of cocaine base to a confidential informant in August 2019. Deschambault pleaded guilty to the drug trafficking charge on March 30, 2023.
According to court records and evidence presented at trial, in August 2019, Deschambault sexually abused a 14-year-old victim for the purpose of creating child sexual abuse material. The videos Deschambault produced were found on his cell phone after investigators seized the phone in August 2019.
In sentencing Deschambault, Judge Woodcock noted that videorecording of sexually exploitative acts “places this crime at a different level” because “videotaping is a potentially permanent visual record of the crime.”
The FBI and Portland Police Department investigated the case, with assistance from the Maine Drug Enforcement Agency.
“Rayevon Deschambault’s actions were beyond heinous. He sexually abused a child and recorded the abuse so he could savor it whenever he wanted. No child should ever have to experience this,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “We thank the victim in this case for cooperating with law enforcement. With today’s sentence, Mr. Deschambault won’t be able to victimize anyone else for years to come.”
“Mr. Deschambault sexually abused a child then took it even further to memorialize that abuse on video,” said U.S. Attorney Darcie N. McElwee. “Protecting Maine children from the lasting and traumatic impact of sexual exploitation is among the most necessary and important work we do at the US Attorney’s Office In support of our law enforcement partners at every level,”
Reports of child sexual exploitation are increasing: In 2022, The National Center for Missing & Exploited Children (NCMEC) CyberTipline received 32 million reports of suspected child sexual exploitation. That included more than 80,000 reports of online enticement of children for sexual acts, an increase of 82% from 2021 to 2022, and more than 31 million reports of child sexual abuse materials. Victimization can take place across every platform, including social media, messaging apps, gaming platforms, etc. To make a CyberTipline Report, visit https://report.cybertip.org/. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: 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’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, visit https://www.justice.gov/usao-me/psc.
###
Watsonville Man Sentenced to 38 Months in Prison for Firearm CrimesRead the Press Release
SAN JOSE – Carlos Manuel Ruiz-Montanez was sentenced yesterday to 38 months in prison for crimes related to illegal firearms sales, including the sale of machineguns, announced United States Attorney Ismail J. Ramsey and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jennifer Cicolani. The sentence was handed down by the Hon. Edward J. Davila, United States District Judge.
Ruiz-Montanez, 22, of Watsonville, pleaded guilty to one count of Illegal Possession and Transfer of Machineguns, in violation of 18 U.S.C. § 922(o), and one count of Dealing in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)(A), on October 2, 2023. He was charged by Information on August 26, 2022.
According to court documents, from February 11, 2020, to September 13, 2021, Ruiz-Montanez sold and helped facilitate the sale of eight firearms, including a short-barrel shotgun, two machineguns, a firearm with an obliterated serial number, and an assault rifle (AR) style pistol. The AR-style pistol was a “ghost gun,” meaning it was privately made and did not bear a serial number.
In addition to the prison term, Judge Davila ordered Ruiz-Montanez to serve three years of supervised release to begin after his prison term is completed.
Assistant U.S. Attorney Neal C. Hong prosecuted the case. The prosecution is the result of an investigation by ATF, the Salinas Police Department, the California Department of Corrections and Rehabilitation (CDCR) Special Service Unit, and the California Highway Patrol.
Waterbury Man Sentenced to 29 Years in Federal Prison for Role in Kidnapping and Murder of Massachusetts ManRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CALVIN ROBERSON, also known as “Cutty,” 41, of Waterbury, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 348 months of imprisonment, followed by five years of supervised release, for his role in the kidnapping and murder of a Massachusetts man in 2020.
According to court documents and statements made in court, on December 24, 2020, Roberson and Brandon Batiste kidnapped Francisco Roman, Jr., 28, at gunpoint from a residence in Chicopee, Massachusetts. Roberson and Batiste threatened to harm Roman if he did not comply with their orders, handcuffed him, and stole cash, marijuana, and other items from Roman. Roberson and Batiste forced Roman into the rear of Roman’s car and transported Roman and the stolen property to Connecticut. Batiste shot and killed Roman while the car was en route to Hartford. They then drove the car to Shultas Place in Hartford and left it parked on the street.
Roberson and Batiste then drove a separate car to an apartment that Roberson shared with Shamari Smith in Waterbury, and took most of the property stolen during the robbery into the apartment.
Shortly before 9 p.m. on December 26, 2020, Hartford police and fire personnel responded to Shultas Place and found Roman’s car engulfed in flames. After the fire was extinguished, investigators discovered Roman’s body with multiple gunshot wounds in the rear of the vehicle.
Roberson has been detained since his arrest on February 11, 2021. On April 27, 2023, he pleaded guilty to conspiracy to commit kidnaping, and causing the death of a person through the use of a firearm.
Batiste pleaded guilty to the same charges and, on December 20, 2023, was sentenced to 42 years of imprisonment.
Smith, who lied to law enforcement about what she knew about the robbery, kidnapping, and murder, and her role in the disposal of the stolen property, pleaded guilty to misprision of a felony. On October 13, 2023, she was sentenced to 25 months of imprisonment.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force, FBI’s Springfield Gang Task Force, Massachusetts State Police, Hampden County (Mass.) District Attorney’s Office, Hartford Police Department’s Major Crimes Division, Chicopee Police Department and Springfield Police Department, with the assistance of the Waterbury Police Department and the FBI’s Atlanta Field Office.
This case was prosecuted by Assistant U.S. Attorney Angel M. Krull and Trial Attorney Brian P. Leaming of the Justice Department’s Violent Crime and Racketeering Section.
Washington State Man Sentenced to Federal Prison for Marketing and Selling Low-Quality Ballistic Protective Equipment Produced in China to Dozens of Law Enforcement Agencies and the U.S. MilitaryRead the Press Release
PORTLAND, Ore.—A Washington State man was sentenced to federal prison today for knowingly and intentionally marketing and selling low-quality ballistic protective equipment produced in China to dozens of domestic law enforcement agencies and the U.S. Military.
Jeffrey Meining, 42, of Vancouver, Washington, was sentenced to 12 months and one day in federal prison and three years’ supervised release.
According to court documents, from at least 2016 and continuing until 2022, Meining operated a ballistic equipment business called “BulletProof-IT” that sold products to numerous state, local, and federal agencies that included law enforcement agencies, fire departments, and the U.S. Military. Throughout his time in business, Meining lied about where the products he sold were made and their compliance with product safety and performance standards, including those set by the National Institute of Justice (NIJ).
On his website and other business materials, Meining falsely claimed that the ballistic protective equipment he sold—including helmets, body armor, and shields—were made in the United States, when in fact, most were made in China. For example, in December 2017, Meining purchased 600 helmets from a Chinese company for just over $50,000. At around the same time, Meining sold 600 of the same model helmets for $90,000 to a reseller than in turn sold them to the U.S. Department of State for $107,994.
In addition to lying about the origin of his products on business informational materials, Meining also lied about their origin on contracts with the U.S. Government. In 2016, BulletProof-IT became a supplier of goods to U.S Tactical Supply under a contract with the General Services Administration (GSA), which allowed federal, state, and local government agencies to place orders for tactical supplies from certified suppliers. Under the terms of the GSA contract, the government could only purchase goods made in the U.S. or designated countries. Between 2016 and January 2022, Meining supplied over $1 million in products under the GSA contract, nearly $400,000 of which were substitute products that did not meet required safety standards.
Meining further lied about his safety testing of products, falsely claiming to sell products certified to NIJ standards despite never having paid for any full NIJ testing. Achieving NIJ standards requires, among other criteria, the testing of numerous samples of a particular product. Instead of adhering to these requirements, Meining simply paid for “modified” testing usually completed as part of a product’s research and development. Several of the products Meining offered for sale failed even this more limited testing protocol. Despite these results, Meining continued offering these products for sale and, in several instances, falsified the test results he received to mislead his customers.
On June 28, 2021, U.S. Customs and Border Protection (CBP) officers in Portland intercepted and detained a package from China addressed to Meining that contained helmets and ceramic body armor plates. To release the shipment, Meining submitted doctored test results on which he removed notations of the various products having failed their performance tests.
Throughout his time in business, customers relied on Meining’s false statements and falsified product testing results in making their purchase decisions. For example, in 2019, Meining signed a $247,800 contract with the Mesa Police Department in Mesa, Arizona for the purchase of 840 ballistics helmets. In the contract, Meining falsely verified that the helmets met NIJ performance standards. In another instance, in 2021, Meining signed a $32,680 contract with the U.S. Air Force for helmets and equipment. In that contract, Meining again falsely stated that the helmets met NIJ standards and were made in the U.S.
On November 11, 2022, Meining was charged by criminal information with wire fraud, and, on March 23, 2023, he pleaded guilty to the single charge.
“We are thankful to the many investigative agencies that worked together to hold Jeffrey Meining accountable and deter others from engaging similar reckless criminal acts,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“In the shadow of deceit, Jeffrey Meining orchestrated a scheme of betrayal, defrauding not only law enforcement agencies but the very fabric of trust woven into our nation’s armor,” said Robert Hammer, Special Agent in Charge of Homeland Security Investigations (HSI) Seattle Field Office. “Through his company, Meining peddled false promises, masqueraded Chinese-made products as American-made, and fabricated test results to conceal their inadequacy. His actions, a grave breach of integrity, endangered the lives of those sworn to protect and serve. Let today’s sentencing serve as a call to fortify our vigilance against nefarious actors who seek to compromise the safety of our nation’s defenders.”
“Mr. Meining’s sentencing culminates his illicit scheme to defraud various local, state, and federal government entities, including the Department of Defense,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “He falsely claimed that the protective equipment he sold to the government, such as helmets and body armor, met specified testing standards and were made in the United States. Mr. Meining’s actions put U.S. servicemembers at risk, degraded American warfighter readiness, and undermined the missions of our military services.”
“This General Services Administration (GSA) contractor supplier made false claims about the country of origin and ballistic protection levels of their products that law enforcement and fire department personnel rely on for safety,” said Terry Pfiefer, Special Agent in Charge of the GSA Office of Inspector General Western Division. “This is unacceptable, and we will continue to work with our law enforcement partners to hold vendors accountable for such fraudulent acts.”
This case was investigated by Homeland Security Investigations, the Defense Criminal Investigative Service, and the General Services Administration Office of Inspector General with assistance from CBP, the Department of Commerce Bureau of Industry and Security, the Naval Criminal Investigative Service, the Air Force Office of Special Investigations, Army Criminal Investigation Division Major Procurement Fraud Unit, and the Offices of Inspectors General from the Department of Justice, Department of State, Department of Interior, and Department of Veterans Affairs.
It was prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Vermont Man Charged with Bank RobberyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Samuel W. Blatt, age 32, of Vermont, has been charged by criminal complaint with bank robbery.
On Friday, March 15, 2024, following an investigation involving numerous law enforcement offices, Mr. Blatt was arrested in Burlington. He is currently being held on state charges. An initial appearance in U.S. District Court will be scheduled at a later date.
According to court records, investigators have tied Mr. Blatt to bank robberies in Essex, Johnson, and Winooski, as well as an attempted bank robbery in Burlington.
The United States Attorney’s Office emphasizes that the complaint contains allegations only and that Mr. Blatt is presumed innocent unless and until proven guilty. If convicted, Mr. Blatt faces up to 20 years in prison, three years of supervised release, and a $250,000 fine. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigative collaboration that occurred among the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Chittenden County Gun Violence Task Force, the police departments of Winooski, Burlington, Williston, Essex, and Milton, the Investigations Unit of Vermont DMV Enforcement and Safety, Homeland Security Investigations, the United States Border Patrol, the Sheriff’s Departments of Grand Isle and Lamoille Counties, and the Vermont State Police.
The prosecutor is Assistant United States Attorney Colin Owyang. Counsel is yet to be appointed for Mr. Blatt.
U.S. Citizen Sentenced to More Than 16 Years in Federal Prison for the Murder of His Mother, a Department of Defense Employee Working in BahrainRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Giovanni Pope, age 30, to 200 months in federal prison, followed by five years of supervised release for the murder of his mother, a Department of Defense civilian employee working in Bahrain.
The federal charge was announced by United States Attorney for the District of Maryland Erek L. Barron; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge John Parkinson of the U.S. Naval Criminal Investigative Service, Middle East Field Office; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
On November 3, 2023, Pope pleaded guilty to second degree murder in the U.S. District Court for the District of Maryland. According to the plea agreement, on January 31, 2021, Pope killed his mother in the apartment they shared in Bahrain, by stabbing her with a knife he obtained from the kitchen. At the time, Pope’s mother was employed as a United States Department of the Navy civilian employee, assigned to Naval Support Activity, Bahrain, and Pope was living with her as a dependent.
As detailed in court documents, after fatally stabbing his mother, Pope cleaned her body and removed evidence of the murder from the apartment. He then left in his mother’s car. He was apprehended by Bahraini authorities on February 1, 2021. Pope admitted to law enforcement that he got a knife from the kitchen, went into the living room where his mother was seated, and fatally stabbed her. Pope further admitted that after killing his mother, he purchased an airline ticket to return to the United States, departing on the morning of February 2, 2021.
On February 11, 2021, Pope was ordered detained and removed from Bahrain to the United States pursuant to the Military Extraterritorial Jurisdiction Act. On March 4, 2021, Pope was charged by indictment in the District of Maryland with one count of Murder while Employed by or Accompanying the Armed Forces Outside the United States.
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the Naval Criminal Investigative Service and the FBI for their work in the investigation and thanked the Justice Department’s Office of International Affairs for its assistance. Mr. Barron and Ms. Argentieri thanked Assistant U.S. Attorney P. Michael Cunningham and Trial Attorney Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section, who prosecuted the case.
# # #
U.S. Attorney’s Office reaches settlement with Kansas hospital after complaint of disability discriminationRead the Press Release
KANSAS CITY, KAN. – The U.S. Attorney’s Office has reached a settlement with a Kansas medical facility to resolve allegations that the hospital failed to reasonably accommodate a deaf patient by not providing a sign language interpreter in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Kate E. Brubacher announced today.
Under the settlement, Prime Healthcare Services – Providence, LLC doing business as Providence Medical Center (“PMC”), located in Kansas City, Kansas, agrees to compensate the aggrieved deaf individual for his inability to effectively communicate with the medical team during his five-day hospital stay. In addition, PMC agreed to change its policies and practices to come into compliance with their obligations under the ADA, which include:
• providing patients and companions who are deaf or hard of hearing with appropriate auxiliary aids and services that are necessary for effective communication;
• designating at least one employee as an ADA Administrator or ADA Co-Administrators who will be on call and available twenty-four (24) hours a day, seven (7) days a week to answer questions and provide appropriate assistance regarding auxiliary aids and services including qualified interpreters;
• maintaining a log for requests for qualified interpreters on site or through video remote services that documents the time and date the request, patient’s name, the time and date of the scheduled appointment; and
• establishing a complaint resolution mechanism to investigate disputes regarding effective communication with deaf patients and companions.“All patients deserve clear explanations about the nature of their diagnosis and medical treatment so they can have a full understanding of their options and make well-informed decisions about their healthcare,” said U.S. Attorney Kate E. Brubacher. “A patient’s disability doesn’t relieve a medical facility and its staff of their obligation to provide effective communication.”
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office Civil Rights Unit at https://www.justice.gov/usao-ks/civil-rights or they may call (855) 321-5549. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The United States is represented by Assistant United States Attorney, Andrea L. Taylor of the U.S. Attorney’s Office in Kansas City, Kansas.
###
U.S. Attorney Jesse Laslovich, Billings Police Department issue warning about pink fentanylRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich, for the District of Montana, and Billings Police Chief Rich St. John today issued a warning to the public about the appearance in the community of pink fentanyl, a synthetic opioid that is more potent than morphine and heroin.
Law enforcement is beginning to see pink fentanyl pills in Billings. Noted for their pink color, the pills are more potent than the fentanyl that has been seen in the community. Many of these illicitly produced synthetic opioids can result in overdoses and death.
“It has become far too common for us to see illicit fentanyl as a blue pill, but synthetic opioids can come in all forms and colors. We are now seeing pink fentanyl pills and they’re even more potent and deadly than the fentanyl pills we’ve previously seen in Montana. All of us must remain vigilant in the fight against fentanyl, as one pill can kill you. Please don’t take any pill that is not prescribed to you by a medical professional. Our office stands shoulder to shoulder with the Billings Police Department in the battle to save lives and to stop the widespread trafficking of this poison in our community,” U.S. Attorney Laslovich said.
“The emergence of pink fentanyl presents a new and serious challenge for the law enforcement community. The practice of mixing pink fentanyl with other street drugs has created a major public health concern. The increased potency has deadly results. Our officers, along with our law enforcement partners and supported by the USAO, are working tirelessly to reduce the amount of these dangerous drugs in our community and hold offenders accountable,” Chief St. John said.
Additional information about fentanyl can be found at https://www.dea.gov/factsheets/fentanyl
Persons with information about pink fentanyl and its distribution are asked to contact the Billings Police Department at 406-657-8200. Tips also may be reported anonymously to Crimestoppers at 406-245-6660.
XXX
Two Plead Guilty to 2022 Gun Store Burglary in Patrick CountyRead the Press Release
DANVILLE, Va. – A pair of men from the Carolinas, who in the pre-dawn hours of a September morning in 2022 burglarized a Patrick County gun store, pled guilty last week in U.S. District Court in Roanoke.
Bradley Wayne McCraw, 43, of Gaffney, S.C., and Justin Darrell Whitaker, 31, of Mooresville, N.C., each pled guilty to one count of stealing firearms from a federal firearms licensee and aiding and abetting in the same, and one count of possession of a firearm by a convicted felon.
According to court documents, in September 2022, McCraw and Whitaker stole a truck, attached a chain from it to the back door of the Rabbit Ridge Gun Shop and Range, and yanked it open. Surveillance video captured them wearing masks and entering the store where they proceeded to steal more than a dozen firearms, including shotguns, rifles, and pistols.
Both McCraw and Whitaker entered into plea agreements with the government in which the defendants would be sentenced to a range between 100 to 150 months in prison.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case with assistance from the Patrick County Sheriff’s Office. The Sheriffs’ Offices in Cherokee County, South Carolina, Spartanburg, South Carolina, and Cleveland County, North Carolina also assisted with the investigation.
Assistant U.S. Attorney Kristin B. Johnson is prosecuting the case.
Two Middle Georgia Repeat Offenders Sentenced in Drug Trafficking CasesRead the Press Release
MACON, Ga. – Two Georgia residents with lengthy criminal histories were sentenced to prison for their criminal involvement in separate armed drug trafficking investigations in the Middle District of Georgia.
Rodrick Taylor, aka “RT,” 40, of Athens, Georgia, was sentenced to serve 292 months in prison to be followed by four years of supervised release on March 13 in Case No. 3:20-CR-62-CAR after he pleaded guilty to one count of illegal possession of a firearm by a convicted felon, one count of possession with intent to distribute heroin and one count of possession of a firearm in furtherance of a drug trafficking crime.
Antonio Reid, 48, of Walton County, Georgia, was sentenced as a career offender to serve 212 months in prison to be followed by three years of supervised release on March 13 in Case No. 3:21-CR-25-CAR after he pleaded guilty to one count of possession with intent to distribute cocaine base.
U.S. District Judge C. Ashley Royal handed down the sentences. The defendants are not eligible for parole.
“These cases involve repeat felony offenders who disregarded the law time and again, endangering citizens and law enforcement,” said U.S. Attorney Peter D. Leary. “Both cases demonstrate how our office is teaming up with local, state and federal law enforcement across the Middle District of Georgia to identify those individuals who are causing the most chaos in their communities and hold them accountable for their crimes.”
According to court documents in the Taylor case, federal and local agents identified Taylor as a heroin dealer in the Athens community during a wiretap investigation into an armed drug trafficking organization controlled by Rickshun Willingham in 2019. During their investigation, FBI agents learned that Taylor assisted Willingham in a robbery of two kilograms of heroin in an Athens parking lot. A search warrant was executed at Taylor’s Bogart, Georgia, home on May 27, 2020. Agents found a .40 caliber pistol, along with drug distribution items. Taylor has multiple prior felony convictions and is prohibited from possessing a firearm. FBI agents received information in Aug. 2020 that Taylor was selling heroin from his home and was bragging about having a new firearm and posting a video of himself with a Glock 9mm pistol at a shooting range on his social media account. A search warrant was executed at Taylor’s home on Sept. 24, 2020, and agents found a loaded 9mm Glock pistol, 105 grams of heroin as well as evidence that Taylor flushed heroin down the toilet before agents made entry into his home.
According to court documents in the Reid case, Monroe Police Department officers attempted to conduct a traffic stop on Reid’s vehicle on Oct. 5, 2020. When a police officer approached the vehicle, Reid sped away at a high rate of speed and eventually crashed into a curb and fled on foot into the woods. An adult woman and a three-year-old child remained in Reid’s vehicle; both were physically unharmed and released from the scene. When located in the woods by an officer, Reid continued to resist arrest, but ultimately was taken into custody. Reid was in possession of crack cocaine. Reid has multiple prior felony convictions including a 2014 conviction for possession with intent to distribute a controlled substance in the U.S. District Court for the Middle District of Georgia. As a result, Reid was sentenced as a career offender.
The Taylor case was investigated by the FBI Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department and the DEA.
The Reid case was investigated by the Monroe Police Department.
Assistant U.S. Attorney Mike Morrison prosecuted the cases for the Government.
Tulsa Man Sentenced as Repeat Offender for Distributing Child Pornography while Failing to Abide by Sex Offender RequirementsRead the Press Release
Today, U.S. District Judge Sara E. Hill sentenced Mikaili Diwani Cohn, 26, to 180 months of imprisonment, followed by a lifetime term of supervised release for Receipt and Distribution of Child Pornography; Possession of Child Pornography; and Failure to Register as a Sex Offender. Upon his release, Cohn will be required to abide by sex offender registration requirements.
In Cohn’s first federal case, he pleaded guilty in June 2017 to Possession of Child Pornography and was sentenced to 48 months imprisonment, followed by 20 years supervised release. After being released, Cohn registered his residence following the offender registration requirements. However, in April 2022, U.S. Probation officers observed Cohn living at a different address with his girlfriend and her child. When Cohn was arrested, officers recovered evidence that showed Cohn used a social media application to send and receive sexually explicit videos of minors.
Cohn will remain in custody pending transfer to U.S. Bureau of Prisons.
The U.S. Probation Office, U.S. Marshals Service, and Homeland Security Investigations investigated the case. Assistant U.S. Attorney George Jiang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Tucson Man Arrested on Two Counts of Aiming a Laser Pointer at AircraftRead the Press Release
TUCSON, Ariz. – Charles William Preston II, 53, of Tucson, was arrested on March 6, 2024, after a federal grand jury returned a two-count indictment against him on November 1, 2023. Preston is charged with two counts of aiming a laser pointer at an aircraft.
The indictment alleges that on two separate occasions, Preston aimed the beam of a laser pointer at a fixed-wing aircraft operated by the Pima County Sheriff’s Department and in the flight path of the same aircraft.
A conviction for aiming a laser pointer at an aircraft carries a maximum penalty of five years in prison, a $250,000 fine, and up to three years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation and the Pima County Sheriff’s Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-23-01688-TUC-JAS
RELEASE NUMBER: 2024-035_Preston# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Three Rutland Drug Traffickers SentencedRead the Press Release
Burlington, Vermont – The United States Attorney’s Office announced that three defendants have been sentenced in connection with drug charges related to the trafficking of cocaine base in Rutland, Vermont, concluding yesterday with the sentencing of Danielle Richardson. The three defendants are: Christopher Moton, 29, of North Charleston, South Carolina; Maurice Pompey, 35, of Anderson, South Carolina; and Danielle Richardson, 31, of Poultney, Vermont. Moton previously pleaded guilty to possession with intent to distribute cocaine base, while Pompey and Anderson pleaded guilty to distribution of cocaine base.
According to court records, law enforcement conducted multiple covert purchases of controlled substances from Pompey and Richardson between August and October of 2022. Both Pompey and Richardson were linked to 116 State Street, Apartment #4, in Rutland, Vermont. On October 24, 2022, a federal search warrant was obtained authorizing the search of the apartment. The search resulted in the seizure of two handguns and suspected cocaine base, heroin, and fentanyl. Moton was inside of the apartment when law investigators executed the warrant. Richardson was arrested during a traffic stop and found in possession of cocaine base at the time of her arrest.
United States District Judge Christina Reiss imposed the following sentences:
- Christopher Moton – 18 Months of Imprisonment to be followed by Three Years of Supervised Release;
- Maurice Pompey – Time Served to be followed by Three Years of Supervised Release;
- Danielle Richardson – Time Served to be followed by Two Years of Supervised Release.
United States Attorney Nikolas P. Kerest commended the coordinated investigatory efforts of the Rutland Police Department, Homeland Security Investigations, the Drug Enforcement Administration, the Southern Vermont Drug Task Force, the Vermont State Police, and the Manchester Police Department.
The case was prosecuted by Assistant U.S. Attorneys Jonathan Ophardt and Zachary Stendig.
Moton was represented by Kevin Henry, Esq. Pompey was represented by Richard Bothfeld, Esq. Richardson was represented by Assistant Federal Public Defender Sara Puls, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Texas Man Charged with Orchestrating Digital Currency Scam That Bilked Investors out of More Than $10 MillionRead the Press Release
CHICAGO — A Texas man has been indicted in Chicago on federal fraud charges for allegedly orchestrating a digital currency scam that bilked investors out of more than $10 million.
ROBERT DUNLAP, 52, of Houston, Texas, is charged with four counts of mail fraud in an indictment returned in U.S. District Court for the Northern District of Illinois. Dunlap was arrested last week in Virginia. He appeared Monday in U.S. District Court for the Eastern District of Virginia and was ordered to be removed in custody to Chicago.
According to the indictment and a criminal complaint previously filed in the case, Dunlap from 2018 to 2023 worked with others to market and sell a purported digital asset called “Meta-1 Coin” through the “Meta-1 Coin Trust.” Dunlap made numerous false and misleading statements to potential and actual investors, including claims that Meta-1 Coin was backed by as much as approximately $44 billion in gold and art, the indictment states. The charges accuse Dunlap of falsely claiming that an accounting firm had audited the gold and certified its value. The purported art collection was alleged to have included works by Pablo Picasso, Salvador Dali, Vincent Van Gogh, and other acclaimed artists. Dunlap caused the market price and trading volume of Meta-1 Coin to be inflated on the “Meta Exchange” – a website created by Dunlap – by fraudulently using automated software programs, the indictment states.
Investors were allegedly falsely told by Dunlap that they could withdraw their investments at any time by exchanging Meta-1 Coin for other cryptocurrencies or conventional currencies, including U.S. dollars. Dunlap created numerous legal, insurance, and other documents in an effort to conceal the fact that he did not possess the gold or art, the indictment states.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office. Valuable assistance was provided by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Eastern District of Virginia. The government is represented by Assistant U.S. Attorney Corey B. Rubenstein.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of mail fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Dunlap indictment Dunlap complaintTexarkana high school band instructor guilty of federal child exploitation violationRead the Press Release
TEXARKANA, Texas – A Texarkana man has pleaded guilty to a child exploitation violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Brandon Neil Sams, 48, pleaded guilty on March 19, 2024, to coercion and enticement of a minor before U.S. Magistrate Judge James Boone Baxter.
According to court documents, while serving as a band instructor at Texas High School in Texarkana, Texas, Sams engaged in repeated attempts to coerce and entice several of his students to engage in sexual activity. Sams admitted to engaging in sexual conduct with several minor victims, all of whom were his students at Texas High. Sams would communicate with the students on social media and messaging applications to persuade, induce, entice, and coerce them to participate in sexual activity.
A federal grand jury returned an indictment charging Sams with federal child exploitation violations in September 2023. He faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Department of Homeland Security-Homeland Security Investigations and the Texarkana Independent School District. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells.
###
St. Paul Felon Sentenced to Nine Years in Prison for Illegal Possession of a Firearm Following Bar ShootoutRead the Press Release
ST. PAUL, Minn. – A St. Paul man has been sentenced to 108 months in prison followed by three years of supervised release for the illegal possession of a firearm following a 2021 shootout near a St. Paul bar, announced U.S. Attorney Andrew M. Luger.
According to court documents and evidence presented at trial, on the afternoon of September 18, 2021, Anthony Charles Deberry, 42, also known as “Peanut,” got into a verbal altercation with a man inside a bar in St. Paul and, as a result, was forced to leave and prohibited from re-entering the bar. Deberry remained in the vicinity of the bar. Later that evening, Deberry waited outside the bar, followed a group of men down the sidewalk after they left the bar, and brandished a 9mm handgun with an activated laser site. Shortly thereafter, gunfire broke out, including one shot fired by Deberry. Deberry suffered from multiple gunshot wounds and was taken to Regions Hospital. Surveillance video footage from the bar showed Deberry hide his firearm under a parked car after the shooting. Responding law enforcement officers recovered Deberry’s firearm as well as multiple discharged cartridge casings on the sidewalk.
Because Deberry has prior felony convictions, he is prohibited from lawfully possessing firearms or ammunition at any time.
On June 20, 2023, Deberry was convicted by a federal jury on one count of possession of a firearm as a felon. He was sentenced today in U.S. District Court by Judge Eric C. Tostrud. In sentencing Deberry, Judge Tostrud applied a 2-level enhancement for obstruction aimed at intimidating trial witnesses.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Craig R. Baune prosecuted the case.
Sioux City Man Pleads Guilty to Methamphetamine Trafficking and Immigration OffensesRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on March 15, 2024, in federal court in Sioux City.
Juan Cardona-Tinajero, 34, from Guadalajara, Mexico, was convicted of one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, and being an illegal alien in United States.
At the plea hearing, Cardona-Tinajero admitted that from January 2023 to September 22, 2023, he and others in the conspiracy agreed to distribute at least 18 pounds of methamphetamine. Cardona-Tinajero also admitted that he was caught receiving approximately nine pounds of methamphetamine by mail which he intended to further distribute. Cardona-Tinajero was receiving packages through the U.S. postal service from California which contained methamphetamine that he distributed in Sioux City area.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Cardona-Tinjaro remains in custody of the United States Marshal pending sentencing. On the drug convictions, Cardona-Tinajero faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment. On the immigration conviction, he faces a possible maximum sentence of not more than 20 years’ imprisonment, a fine of $250,000, and a term of supervised release of up to three years.
The case is being prosecuted by Assistant United States Attorneys Shawn S. Wehde and Kevin C. Fletcher and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4063 and 23-4072. Follow us on Twitter @USAO_NDIA.
Shipyard Contractor Pleads Guilty to Stealing Nearly $600,000 Worth of Computer Equipment from the U.S. NavyRead the Press Release
NEWS RELEASE SUMMARY – March 19, 2024
SAN DIEGO – Ernesto Saldivar, a civilian contractor at General Dynamics NASSCO who was part of the shipyards’ modernization efforts, pleaded guilty today to stealing nearly $600,000 worth of computer equipment from three U.S. Navy ships.
According to Saldivar’s plea agreement, from November 2022 to August 2023, he stole hundreds of items, such as hard drives and laptops, from declassified areas on ships undergoing maintenance. Saldivar was selling the stolen items, including two hard drives containing military communications, on eBay. The affected ships included the USS Pinckney, USS Curtis Wilbur and USS Spruance.
Saldivar admitted in his plea agreement that the total aggregate value of the stolen items was $596,997.53, almost all of which he will owe the United States government in restitution. The defendant also admitted to receiving $2,584.98 in payments from eBay sales of the stolen items.
“Stealing from our military doesn’t just hurt the taxpayer, it puts our national security and service members at risk,” said U.S. Attorney Tara McGrath. “The military relies heavily on civilian support, and we will do our part to ensure our service members can trust the civilians standing by their side.”
This case is being prosecuted by Assistant U.S. Attorneys Sarah Goldwasser and Michelle Wasserman.
DEFENDANT Case Number 24CR532-JAH
Ernesto Saldivar Age: 30 San Diego, CA
SUMMARY OF CHARGES
Theft of Government Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
Sharon Resident Sentenced for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, Pa. – A resident of Sharon, Pennsylvania, was sentenced in federal court to time served on her conviction for conspiring to distribute cocaine, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Kayla Fair, 36, who has served approximately 16 months in prison. Judge Bissoon also ordered Fair to serve three years of supervised release following her imprisonment.
Fair pleaded guilty in this case to conspiring to distribute cocaine in October 2021. Prior to imposing sentence, the Court was informed that Fair, along with her co-defendant Zachariah Owens, conspired to distribute cocaine from their apartment in Sharon, Mercer County, with several of their children residing in the apartment at that time.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Mercer County Drug Task Force, Pennsylvania Office of Attorney General, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the prosecution of Fair.
Sharon Drug Trafficker with Prior Convictions for Armed Robbery Sentenced to More Than 15 and a Half Years for Dangerous Cocaine Trafficking ViolationsRead the Press Release
PITTSBURGH, Pa. – A resident of Sharon, Pennsylvania, was sentenced in federal court to 188 months in federal prison for his conviction on cocaine trafficking crimes, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Zachariah Owens, 37. Judge Bissoon also ordered Owens to serve six years of supervised release following his prison sentence.
Owens previously pleaded guilty in this case to (1) conspiring to distribute cocaine and crack in October 2021 and (2) possessing cocaine and crack with intent to distribute within 1,000 feet of a school and a playground.
Prior to imposing sentence, the Court was informed that Owens, in October 2021, operated a cocaine trafficking scheme from his apartment in Sharon, where several children resided. In doing so, he placed both his cocaine and his loaded pistol in locations where the children easily could have accessed them, in addition to exposing the children to other well-known dangers of drug trafficking. Owens had spent nearly all of the preceding 15 years in state prison or on state parole for two violent armed robbery convictions in 2015 and 2006.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Mercer County Drug Task Force, Pennsylvania Office of Attorney General, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the prosecution of Owens.
Senatobia woman sentenced to 33 months in jail for embezzling from former employerRead the Press Release
Oxford, Miss. – A Senatobia, Mississippi woman was sentenced in federal court today to 33 months in prison for embezzling almost a half of a million dollars from her former employer by creating false employees and having salaries for the fake persons deposited into her personal bank accounts.
According to court documents, Julia N. Linck, nee Capriotti, of Senatobia, stole the funds from October 2014 through July 2020 from Memphis Barbecue Company in DeSoto County.
Following a sentencing hearing on Tuesday in Oxford, U.S. District Judge Sharion Aycock ordered Linck to serve 33 months in prison, followed by three years of supervised release. Linck was also ordered to pay back the stolen funds, with the court ordering her to pay $462,874.05 in restitution.
The U.S. Secret Service and DeSoto County, Mississippi Sheriff’s Office investigated the case. Assistant U.S. Attorney Paul Roberts prosecuted the case.
Romance Scammer Sentenced to 10 Years in Federal Prison, Ordered to Pay $2.2M in RestitutionRead the Press Release
An Aubrey woman was sentenced Monday to 10 years in prison and ordered to pay more than $2.2 million in restitution for defrauding elderly victims in romance schemes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ijeoma Okoro, 33, was indicted in September 2021 and proceeded to trial in December 2023. After seven days of trial and 10 hours of deliberation, a jury convicted her of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. She was sentenced by Chief U.S. District Judge David Godbey to 10 years on each count, to run concurrently.
According to evidence presented at trial, Ms. Okoro and other fraudsters assumed fake names and trolled dating sites like Match.com and Zoosk, searching for targets.
Once the fraudsters ingratiated themselves to their often divorced or widowed victims with promises of long-term commitment, the fraudsters concocted elaborate stories about why they needed financial assistance. A common story was that the fraudster had to travel overseas for work and was unable to access his bank accounts. As a part of the story, the fraudster often claimed to experience an unexpected work-related crisis or a sudden family medical emergency. The fraudster then asked the victims for money to cover the expenses and promised to repay them in the near future.
Trusting victims sent thousands of dollars to bank accounts opened by the defendant and her coconspirators in the Northern District of Texas. The defendant then distributed the fraudulent proceeds to coconspirators and retained a portion for herself.
At Monday’s sentencing hearing, Chief Judge Godbey applied a sentencing enhancement for the defendant’s obstruction of the administration of justice, finding that Ms. Okoro committed perjury when she testified at trial that she never conspired with anyone to commit fraud or money laundering.
To date, four other codefendants have also been convicted for their involvement in the scheme, including: David Animashaun, sentenced to 24 months in federal prison for two counts of conspiracy to commit wire fraud; Oluwalobamise Michael Moses, sentenced to 24 months in federal prison for two counts of conspiracy to commit wire fraud; Emanuel Stanley Orji, sentenced to 37 months in federal prison for conspiracy to commit wire fraud; and Frederick Orji, sentenced to 37 months in federal prison for conspiracy to commit wire fraud. The remaining indicted codefendant, Chukwuemeka Orji, remains a fugitive.
IRS – Criminal Investigation led the investigation with assistance from the Federal Bureau of Investigation’s Frisco Field Office, the Department of Homeland Security, and the Department of Labor - Office of the Inspector General. Assistant U.S. Attorneys Mary Walters, Jenna Rudoff, and Elyse Lyons prosecuted the case.
Rock Valley Man Pleads Guilty to Meth ConspiracyRead the Press Release
Terrance Buescher, age 58, from Rock Valley, Iowa, pled guilty on March 15, 2024, in federal court in Sioux City, to conspiracy to distribute methamphetamine.
At the plea hearing, Buescher admitted that from April 2022 through January 2023, he was involved in a conspiracy that distributed at least 20 pounds of methamphetamine in the Rock Valley area. Buescher further admitted to obtaining pounds of methamphetamine about every ten days from a source in Colorado to distribute in Northern Iowa for about nine months.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Buescher was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Buescher faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and at least three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office, and the Rock Valley Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4014. Follow us on Twitter @USAO_NDIA.
Rhode Island Man Sentenced to Eight Years in Prison for Defrauding Investors and Tax EvasionRead the Press Release
A Rhode Island man was sentenced to eight years in prison for running a decade-long Ponzi scheme to defraud investors and to evade his taxes.
According to court documents and statements made in court, between 2008 and 2018, Thomas Huling, formerly of West Warwick, orchestrated a scheme to defraud investors by promoting several investment projects, including high-yielding bond trading platforms, a car emissions reduction technology and an online advertising and marketing company. He solicited funds for these investments by representing, among other things, that the investments would achieve quick and substantial returns with little or no risk.
In truth, and contrary to his promises, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, membership and golf fees at multiple country clubs, gambling, clothing, restaurants, vacations and travel, as well as improvements to his residence. He created and used multiple shell companies, opened over 50 bank accounts and engaged in convoluted financial transactions between accounts to conceal his personal use of the funds. When concerned investors contacted Huling about the status of their investments, Huling lulled them with false excuses and promises, and at other times avoided their calls. To appease certain early investors, Huling used money raised from new investors to pay them off.
While Huling was defrauding his investors, he was also evading his taxes. Between 2009 and April 2018, Huling reported no taxable income, paid no income taxes and for certain years filed fraudulent individual and corporate income tax returns. To hide his income, Huling used nominee bank accounts and paid for personal expenses using cash and corporate debit cards. He also falsified the books and records of his companies by recording sham loans, titled personal assets in the name of shell companies and made false statements to IRS special agents.
In addition to his prison sentence, U.S. District Judge Mary McElroy for the District of Rhode Island ordered Huling to serve three years of supervised release and to pay restitution to the United States and victims of the fraud in an amount to be determined later.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Zachary A. Cunha for the District of Rhode Island made the announcement.
IRS Criminal Investigation and the FBI investigated the case.
Acting Section Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Sandra Hebert for the District of Rhode Island prosecuted the case.
Rhode Island Man Sentenced to Eight Years in Prison for Defrauding Investors and Tax EvasionRead the Press Release
PROVIDENCE – A Rhode Island man was sentenced to eight years in prison for running a decade-long Ponzi scheme to defraud investors and to evade his taxes, announced United States Attorney Zachary A. Cunha and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents and statements made in court, between 2008 and 2018, Thomas Huling, formerly of West Warwick, orchestrated a scheme to defraud investors by promoting several investment projects, including high-yielding bond trading platforms, a car emissions reduction technology and an online advertising and marketing company. He solicited funds for these investments by representing, among other things, that the investments would achieve quick and substantial returns with little or no risk.
In truth, and contrary to his promises, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, membership and golf fees at multiple country clubs, gambling, clothing, restaurants, vacations and travel, as well as improvements to his residence. He created and used multiple shell companies, opened over 50 bank accounts and engaged in convoluted financial transactions between accounts to conceal his personal use of the funds. When concerned investors contacted Huling about the status of their investments, Huling lulled them with false excuses and promises, and at other times avoided their calls. To appease certain early investors, Huling used money raised from new investors to pay them off.
While Huling was defrauding his investors, he was also evading his taxes. Between 2009 and April 2018, Huling reported no taxable income, paid no income taxes and for certain years filed fraudulent individual and corporate income tax returns. To hide his income, Huling used nominee bank accounts and paid for personal expenses using cash and corporate debit cards. He also falsified the books and records of his companies by recording sham loans, titled personal assets in the name of shell companies and made false statements to IRS special agents.
In addition to his prison sentence, U.S. District Court Judge Mary S. McElroy ordered Huling to serve three years of supervised release and to pay restitution to the United States and victims of the fraud in an amount to be determined later.
IRS Criminal Investigation and the FBI investigated the case.
###
Repeat Offender Sentenced to 72 Months for Firearms Possession in Furtherance of a Drug Trafficking OffenseRead the Press Release
WASHINGTON – Tyron Hines, a repeat felon with a long history of weapons offenses, was sentenced today to 72 months in prison for illegal possession of a Smith and Wesson M&P polymer pistol while also in possession of a significant quantity of deadly narcotics.
The sentencing was announced today U.S. Attorney Matthew M. Graves, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Hines, 32, pled guilty on October 16, 2023, to carrying a firearm in furtherance of a drug trafficking offense. In addition to the 72-month prison term, U.S. District Court Judge Rudolph Contreras ordered Hines to serve 3 years of supervised release.
According to court documents, Hines was most recently arrested the evening of June 4, 2023. Two MPD officers were on patrol in a marked cruiser in Southeast when they observed a large group singing and dancing on the 2200 block of Savannah Terrace, SE. As the officers approached the group, Hines quietly peeled off from the crowd with his head down. The officers followed and tried to gain Hines’ attention. Hines ignored them, turned behind a black SUV, and placed a metallic object under the vehicle. Then Hines began to run. The two officers gave chase. One paused to look under the SUV where he recovered a black Smith and Wesson MP9 M 2.0 with 11 rounds of ammunition in a magazine that could hold 17 rounds. Later tests determined the pistol had been stolen from Prince George’s County in March 2020.
Officers stopped Hines on the 2100 block of Savannah Terrace SE and searched him. Hines was carrying 20 suspected fentanyl pills and a bag of a white rock-like substance that weighed 26 grams, nearly an ounce. The substance field-tested tested positive for crack cocaine. Officers also recovered $920 in cash. Based on the quantity of narcotics, the lack of drug paraphernalia, and the wad of cash, it appeared that Hines possessed the drugs with the intent to distribute rather than for personal use. The arrest marked the fifth time Hines had been charged in connection with unlawful possession of a firearm in fewer than 15 years.
About two weeks before, on May 13, 2023, following an early morning shootout at a Dupont parking garage, Hines drove a wounded friend in his black BMW sedan and parked at a hospital. When officers arrived, they found Hines’ BMW and spotted a black Glock 35 .40 caliber handgun with a 29-round magazine on the floor. A subsequent search of the car turned up a second firearm underneath the driver’s seat: a tan Glock 19 mm handgun with one bullet in the chamber and 15 rounds loaded in the 17-round magazine. Additionally, the Smith and Wesson was found to have been outfitted with a “giggle switch,” a device that converts a semi-automatic into a fully automatic machinegun. The Government does not believe that either firearm recovered from Hines’ BMW belonged to Hines that evening.
On June 28, 2023, in a search of Hines’ apartment on Kenilworth Terrace NE, MPD officers recovered a loaded Del-Ton Inc. AR-15 style 5.56 rifle, a ballistic vest, and hundreds of rounds of ammunition.
Hines has previously been convicted of offenses carrying a maximum term of imprisonment of greater than one year. On February 5, 2010, Hines was sentenced to 24 months on charges of assault with a dangerous weapon and two counts of assault with significant bodily injury after shooting into a crowd of 50 people and seriously wounding three of them. On April 13, 2018, Hines was sentenced in D.C. Superior Court to 24 months’ imprisonment for unlawful possession of a firearm (prior conviction). And on January 11, 2021, Hines was sentenced in D.C. Superior Court to 18 months on a similar charge. Hines was on supervised release for that case at the time of his arrest for his most current offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorney Cameron Tepfer.
Prior felon arrested on new child pornography chargeRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Jordan Brodie, 37, of LeRoy, NY, was arrested and charged by criminal complaint with the receipt, distribution and possession of child pornography following a previous conviction for possession of child pornography. Brodie faces a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, in May 2023, Brodie, a convicted sex offender who was under the active supervision of the Genesee County Probation Department, became involved in a chat application in which he and others traded child pornography. Brodie uploaded at least one of the images to a different social media platform, which then reported the image to the National Center for Missing and Exploited Children. Investigation by the New York State Police determined that the upload took place from Brodie’s home in LeRoy. A subsequent search warrant resulted in the seizure of Brodie’s phone, and the contents of the social media account that uploaded the image, both of which revealed images of child pornography depicting children less than 12 years old. The images included children, some as young as six-years-old, engaged in sexual conduct with adults.
In May 2021, Brodie was convicted of child pornography charges in Genesee County and was on probation.
Brodie made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The criminal complaint is the result of an investigation by the New York State Police, Lyons, under the direction of Major Miklos Szoczei II, and the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Pontotoc County Teacher Sentenced for Sex Abuse CrimesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Erin Nicole Fixico-Mitchell, age 33, of Ada, Oklahoma, was sentenced to sixty-nine months imprisonment each for three counts of Sexual Abuse of a Minor in Indian Country, followed by a ten-year term of supervised release. The sentences are set to be served concurrently.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Federal Bureau of Investigation.
On May 10, 2023, Fixico-Mitchell pleaded guilty to the charges. Between September and November of 2015, while employed as a coach and teacher at Ada High School, Fixico Mitchell sexually abused a student. Fixico-Mitchell left her employment at Ada High School, and eventually joined on as a teacher and coach at Byng High School. During her tenure at Byng, Fixico-Mitchell sexually abused a student between June and September of 2021. The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Fixico-Mitchell was remanded into the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Caila M. Cleary and Jessie Pippin represented the United States.
Pine Ridge Man Sentenced to Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Pine Ridge, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on March 15, 2024.
McKinley Two Bulls Hunter, 26, was sentenced to two years and four months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Two Bulls Hunter was indicted for Sexual Abuse of a Minor by a federal grand jury in May of 2022. He pleaded guilty on November 29, 2023.
The conviction stems from Two Bulls Hunter sexually abusing a 13-year-old female on July 22, 2021, at a residence in Pine Ridge. The defendant was 24 years old at the time of the abuse.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Two Bulls Hunter was immediately remanded to the custody of the U.S. Marshals Service.
Paducah Man Sentenced to 20 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Bowling Green, KY – A Paducah, Kentucky, man was sentenced today to 20 years in federal prison for producing and possessing child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
Clint Culverhouse, 34, of Paducah, Kentucky, formerly of Franklin, Kentucky, was sentenced to 20 years in federal prison, followed by lifetime supervised release, for producing and possessing child pornography. According to court documents, Culverhouse recorded himself sexually abusing an infant and possessed many additional images and videos of child sexual abuse material.
There is no parole in the federal system.
This case was investigated by the FBI Paducah Satellite Office with assistance from the Bourbon County Detention Center, and the Kentucky State Police.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
###
Owners of China-Based Company Charged with Conspiracy to Send Trade Secrets Belonging to Leading U.S.-Based Electric Vehicle CompanyRead the Press Release
Klaus Pflugbeil, 58, a Canadian national and resident of the People’s Republic of China (PRC), was arrested today in Nassau County, New York, for conspiring with co-defendant Yilong Shao, 47, of Ningbo, China, to send to undercover law enforcement officers trade secrets that belonged to a leading U.S.-based electric vehicle company (Victim Company-1).
“The defendants stand accused of stealing valuable proprietary technology from a U.S. electric car manufacturer and using it to set up a rival business overseas,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This blatant theft of advanced trade secrets relating to battery components and assembly blunts America’s technological edge, and the Justice Department will hold accountable those who would try to cheat our country of its economic potential and threaten our national security.”
“As alleged, the defendants set up a company in China, blatantly stole trade secrets from an American company that are important to manufacturing electric vehicles, and which cost many millions of dollars in research and development, and sold products developed with the stolen trade secrets,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Rather than invest their own resources into competitive technology, the defendants looted Victim Company-1’s trade secrets for their own financial gain. Today’s arrest demonstrates that this office will prosecute those who engage in theft of trade secrets that places U.S. businesses at a competitive disadvantage, undermines innovation and creates a potential national security risk.”
“Klaus Pflugbeil and Yilong Shao allegedly used stolen confidential information – developed by their previous employers – to establish their own Chinese-based competitor,” said Assistant Director in Charge James Smith of the FBI New York Field Office. “When American economic intelligence is stolen by foreign businesses, it not only harms the victim companies, but also threatens our financial infrastructure. The FBI will bring to justice anyone who steals our proprietary trade secrets in an effort to both safeguard the American economy and our national security.”
According to court documents, Pflugbeil and Shao are operators of a PRC-based business (Business-1) that sold technology used for the manufacture of batteries, including batteries used in electric vehicles. The defendants built Business-1 using Victim Company-1’s sensitive and proprietary information, and marketed their business as a replacement for Victim Company-1’s products. Pflugbeil was arrested this morning after he sent multiple Victim Company-1 trade secrets to an undercover agent and traveled to Nassau County for a meeting with who he believed to be Long Island-based businesspeople, but who in reality were undercover law enforcement agents. Pflugbeil is scheduled to make his initial appearance today before U.S. Magistrate Judge Peggy Kuo. His co-defendant Shao remains at large.
Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines (the Canadian Manufacturer). Prior to its purchase by Victim Company-1, the Canadian Manufacturer sold battery assembly lines to customers who manufactured alkaline and lithium-ion batteries for consumer use. The battery assembly lines contained or utilized a proprietary technology now owned by Victim Company-1: continuous motion battery assembly (the Battery Assembly Trade Secret).
The proprietary technology provided a substantial competitive advantage to Victim Company-1 in the battery manufacturing process. Victim Company-1 spent at least $13 million developing the Battery Assembly Trade Secret.
Both Pflugbeil and Shao are former employes of the Canadian Manufacturer. The complaint alleges that, by no later than 2019, Pflugbeil and Shao planned to make use of Victim Company-1 trade secrets for their own business activities. For example, between October and November 2019, Pflugbeil and Shao discussed “set[ting] up” a company in Canada and China that would rely on the sensitive and confidential information needed to make and sell their own battery technology. Pflugbeil told Shao that he had “a lot of original documents” related to the technology and sought out more “original drawings” from Victim Company-1 that they could copy for their planned business. Shao subsequently confirmed that “we have all of original assembly drawings by PDF.”
In or about July 2020, Pflugbeil and Shao opened Business-1, which has since expanded to locations in China, Canada, Germany, and Brazil. Business‑1 makes the same precision dispensing pumps and battery assembly lines that Victim Company-1 manufactured using its proprietary technology. Business-1 is marketed by Pflugbeil as an alternative source for the sale of products that rely upon Victim Company-1 trade secrets, publishing online advertisements that state, for example, “Are you looking for [Victim Company-1] Metering pumps and spare parts? Look no further.”
In operating Business-1, Pflugbeil and Shao relied upon the Battery Assembly Trade Secret. For example, in September 2020, Pflugbeil emailed a series of drawings to a gears manufacturer in order to produce several parts and wrote “please keep the attached information confidential.” The attachment contained drawings belonging to Victim Company-1 related to the Battery Assembly Trade Secret. The drawings that Pflugbeil sent were identical to Victim Company-1’s drawings, except the name of the company was changed, the date of the drawing was changed, and the drawing identifying number was written in reverse of Victim Company-1’s drawing identifying number.
On or about Sept. 11, 2023, undercover agents attended a trade show for the packaging and processing industries in Las Vegas, Nevada. The undercover agents posed as businesspeople who were interested in purchasing a battery assembly line from Business-1 to manufacture batteries at a facility on Long Island, New York. The undercover agents were introduced to Shao at the trade show and later to Pflugbeil via email. Subsequently, on or about Nov. 17, 2023, Pflugbeil sent, via email, a detailed 66-page technical documentation proposal to an undercover agent (UC-1) while UC-1 was in the Eastern District of New York. The proposal notes, “this technical documentation package contains [Business-1] proprietary information which must be kept confidential.” In reality, the proposal contained Battery Assembly Trade Secret information belonging to Victim Company-1: at least half a dozen drawings Pflugbeil used in the proposal and sent to UC-1 were, in fact, Victim Company-1’s information related to the Battery Assembly Trade Secret.
If convicted, Pfugbeil faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.
Assistant U.S. Attorneys Ellen H. Sise and Samantha Alessi for the Eastern District of New York are prosecuting the case, with valuable assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
This action was coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.
Owners of China-Based Company Charged with Conspiracy to Send Trade Secrets Belonging to Leading U.S.-Based Electric Vehicle CompanyRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging Klaus Pflugbeil, a resident of the People’s Republic of China (the “PRC” or “China”) and Canadian national, and Yilong Shao, a Chinese national, with conspiring to send trade secrets that belonged to a leading U.S.-based electric vehicle company (“Victim Company-1”). Pflugbeil and Shao are operators of a PRC-based business (“Business-1”) that sold technology used for the manufacture of batteries, including batteries used in electric vehicles. The defendants built Business-1 using Victim Company-1’s sensitive and proprietary information, and even marketed their business as a replacement for Victim Company-1’s products. Pflugbeil was arrested this morning after he sent multiple Victim Company-1 trade secrets to an undercover agent and traveled to Nassau County for a meeting with what he believed to be Long Island-based businesspeople, who in reality were undercover law enforcement agents. Pflugbeil is scheduled to make his initial appearance today before United States Magistrate Judge Peggy Kuo. His co-defendant Shao remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.
“As alleged, the defendants set up a company in China, blatantly stole trade secrets from an American company that are important to manufacturing electric vehicles, and which cost many millions of dollars in research and development, and sold products developed with the stolen trade secrets,” stated United States Attorney Peace. “Rather than invest their own resources into competitive technology, the defendants looted Victim Company-1’s trade secrets for their own financial gain. Today’s arrest demonstrates that this Office will prosecute those who engage in theft of trade secrets that places U.S. businesses at a competitive disadvantage, undermines innovation and creates a potential national security risk.”
Mr. Peace also thanked the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) for its assistance.
“The defendants stand accused of stealing valuable proprietary technology from a U.S. electric car manufacturer and using it to set up a rival business overseas,” stated Assistant Attorney General Olsen. “This blatant theft of advanced trade secrets relating to battery components and assembly blunts America’s technological edge, and the Justice Department will hold accountable those who would so try cheat our country of its economic potential and threaten our national security.”
“Klaus Pflugbeil and Yilong Shao allegedly used stolen confidential information—developed by their previous employers—to establish their own Chinese-based competitor. When American economic intelligence is stolen by foreign businesses, it not only harms the victim companies, but also threatens our financial infrastructure. The FBI will bring to justice anyone who steals our proprietary trade secrets in an effort to both safeguard the American economy and our national security,” stated FBI Assistant Director-in-Charge Smith.
Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines (the “Canadian Manufacturer”). Prior to its purchase by Victim Company-1, the Canadian Manufacturer sold battery assembly lines to customers who manufactured alkaline and lithium-ion batteries for consumer use. The battery assembly lines contained or utilized a proprietary technology now owned by Victim Company-1: continuous motion battery assembly (the “Battery Assembly Trade Secret”).[1] The proprietary technology provided a substantial competitive advantage to Victim Company-1 in the battery manufacturing process. Victim Company-1 spent at least $13 million developing the Battery Assembly Trade Secret.
Both Pflugbeil and Shao are former employees of the Canadian Manufacturer. The evidence reveals that, by no later than 2019, Pflugbeil and Shao planned to make use of Victim Company-1 trade secrets for their own business activities. For example, between October and November 2019, Pflugbeil and Shao discussed “set[ting] up” a company in Canada and China that would rely on the sensitive and confidential information needed to make and sell their own battery technology. Pflugbeil told Shao that he had “a lot of original documents” related to the technology, and sought out more “original drawings” from Victim Company-1 that they could copy for their planned business. Shao subsequently confirmed that “we have all of original assembly drawings by PDF.”
In or about July 2020, Pflugbeil and Shao opened Business-1, which has since expanded to locations in China, Canada, Germany, and Brazil. Business‑1 makes the same precision dispensing pumps and battery assembly lines that Victim Company-1 manufactured using its proprietary technology. Business-1 is marketed by Pflugbeil as an alternative source for the sale of products that rely upon Victim Company-1 trade secrets, publishing online advertisements that state, for example, “Are you looking for [Victim Company-1] Metering pumps and spare parts? Look no further.”
In operating Business-1, Pflugbeil and Shao relied upon the Battery Assembly Trade Secret. For example, in September 2020, Pflugbeil emailed a series of drawings to a gear manufacturer in order to produce several parts, and wrote, “please keep the attached information confidential.” The attachment contained drawings belonging to Victim Company-1 related to the Battery Assembly Trade Secret. The drawings that Pflugbeil sent were identical to Victim Company-1’s drawings, except the name of the company was changed, the date of the drawing was changed, and the drawing identifying number was written in reverse of Victim Company-1’s drawing identifying number.
On or about September 11, 2023, undercover agents attended a trade show for the packaging and processing industries (the “Trade Show”) in Las Vegas, Nevada. The undercover agents posed as businesspeople who were interested in purchasing a battery assembly line from Business-1 to manufacture batteries at a facility on Long Island. The undercover agents were introduced to Shao at the trade show and later to Pflugbeil via email. Subsequently, on or about November 17, 2023, Pflugbeil sent, via email, a detailed 66-page technical documentation proposal (the “Proposal”) to an undercover agent (“UC-1”) while UC-1 was in the Eastern District of New York. The Proposal notes, “this technical documentation package contains [Business-1] proprietary information which must be kept confidential.” In reality, the Proposal contained Battery Assembly Trade Secret information belonging to Victim Company-1: at least half a dozen drawings Pflugbeil used in the Proposal and sent to UC-1 were, in fact, Victim Company-1’s information related to the Battery Assembly Trade Secret.
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, Pflugbeil faces up to 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section and Long Island Criminal Division. Assistant United States Attorneys Ellen H. Sise and Samantha Alessi are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Joseph Levin.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
The Defendants:
KLAUS PFLUGBEIL
AGE: 58
Ningbo, ChinaYILONG SHAO
AGE: 47
Ningbo, ChinaE.D.N.Y. Docket No. 24-MJ-226
[1] Although some of the conduct described in the Complaint occurred before the Canadian Manufacturer was acquired by Victim Company-1, the Battery Assembly Trade Secret belongs to, and is the proprietary information of, Victim Company-1. Accordingly, unless otherwise indicated, the government refers to Victim Company-1 even where relevant conduct occurred when the Canadian Manufacturer was an independent entity.
Owner of Garfield Counseling Center Admits Orchestrating Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – The owner of a New Jersey counseling center today admitted her role in a health care fraud scheme involving hundreds of false claims, U.S. Attorney Philip R. Sellinger announced.
Maria P. Cosentino, 60, of Garfield, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging her with participating in a health care fraud scheme.
U.S. Attorney Philip R. Sellinger“Patients need to be able to use their health insurance plans to obtain needed services. This defendant admitted today that she falsified claims in order to boost her payments, in some cases, making up visits for counseling and other treatments out of whole cloth. My office is determined to root out those who would try to rig the system for ill-gotten profits.”
“Fraudsters compromise the integrity of our health care system and necessary treatment programs,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Cosentino now admits she billed private health insurance companies for sessions with patients who no longer attended her practice, were out of the country, or didn't even exist. Everyone ends up bearing the cost of these scams which drain billions of dollars annually from the healthcare industry. We ask if you have any information about similar fraud, call the Newark FBI so we can take action.”
According to documents filed in the case and statements made in court:
Cosentino owned Bergen Alliance Counseling Services, which provided counseling services and mental health treatment to children, families, couples, and adults. She admitted that for years she submitted false claims to private health insurance plans for counseling sessions that she never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment. Cosentino kept the illicit profits, which totaled more than $700,000.
The charge of health care fraud is punishable by a maximum of 10 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for July 23, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.
cosentino.information.pdf