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30 April 2024
Early Bitcoin Investor Charged with Tax FraudRead the Press Release
An indictment was unsealed yesterday charging Roger Ver, an early investor in bitcoins, with mail fraud, tax evasion and filing false tax returns. Ver was arrested this weekend in Spain based on the U.S. criminal charges. The United States will seek Ver’s extradition to stand trial in the United States.
According to the indictment, Ver formerly of Santa Clara, California, owned MemoryDealers.com Inc. and Agilestar.com Inc., two companies that sold computer and networking equipment. Starting in 2011, Ver allegedly began acquiring bitcoins for himself and his companies. He also allegedly avidly promoted bitcoins, even obtaining the moniker “Bitcoin Jesus.”
On Feb. 4, 2014, Ver allegedly obtained citizenship in St. Kitts and Nevis and shortly thereafter renounced his U.S. citizenship in a process known as expatriation. As a result of his expatriation, Ver allegedly was required under U.S. law to file tax returns that reported capital gains from the constructive sale of his world-wide assets, including the bitcoins, and to report the fair market value of his assets. He was also allegedly required to pay a tax – referred to as an “exit tax” – on those capital gains. By Feb. 4, 2014, Ver and his companies allegedly owned approximately 131,000 bitcoins that traded on several large exchanges for around $871 each. MemoryDealers and Agilestar allegedly held approximately 73,000 of those bitcoins.
Ver allegedly hired a law firm to assist him with his expatriation and to prepare his expatriation-related tax returns. Ver also allegedly hired an appraiser to value his two companies. Ver allegedly provided or caused to be provided false or misleading information to the law firm and appraiser that concealed the true number of bitcoins he and his companies owned. As a result, the law firm allegedly prepared and filed false tax returns that substantially undervalued the two companies and their 73,000 bitcoins and did not report that Ver owned any bitcoins personally.
The indictment further alleges that by June 2017, Ver’s two companies continued to own approximately 70,000 bitcoins. Around that time, Ver allegedly took possession of those bitcoins and in November 2017 sold tens of thousands of them on cryptocurrency exchanges for approximately $240 million in cash. Even though Ver was not then a U.S. citizen, he was still legally required to report to the IRS and pay tax on certain distributions such as dividends from MemoryDealers and Agilestar, which were U.S. corporations. Ver allegedly concealed from his accountant that he had received and sold MemoryDealers’ and Agilestar’s bitcoins that year. As a result, Ver’s 2017 individual income tax return did not report any gain or pay any tax related to the distribution of MemoryDealers’ and Agilestar’s bitcoins to him.
In total, Ver is alleged to have caused a loss to the IRS of at least $48 million.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS Criminal Investigation's cybercrimes unit is investigating the case.
Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony of the Justice Department’s Tax Division and Assistant U.S. Attorney James. C. Hughes for the Central District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ver Indictment.pdfDanbury Man Sentenced to 18 Months in Prison for Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that PAUL MIGNANI, 58, of Danbury, was sentenced today by U.S. District Judge Jeffrey A Meyer in New Haven to 18 months of imprisonment for violating the conditions of his federal supervised release.
According to court documents and statements made in court, on June 20, 2017, Judge Meyer sentenced Mignani to 60 months of imprisonment, followed by three years of supervised release, for distributing cocaine and heroin. Judge Meyer also found that Mignani had distributed narcotics involved in the overdose deaths of two women in 2016.
Mignani was released from federal prison in June 2020. On September 12, 2022, while Mignani was on supervised release, a court-authorized search of his Danbury residence revealed approximately 48 grams of loose fentanyl, 79 dose bags of fentanyl, 69 grams of cocaine, various prescription pills, items used to process and package narcotics, and firearm parts and ammunition.
Mignani is being prosecuted by the Danbury State’s Attorney’s Office for his new criminal conduct, and has agreed to a sentence of 15 years of incarceration, suspended after six years. Judge Meyer imposed the 18-month federal sentence to run consecutively to Mignani’s state sentence.
This matter was investigated by the Drug Enforcement Administration and the Danbury Police Department. The case was prosecuted by Assistant U.S. Attorney Daniel George.
Cusick Man Who Illegally Possessed Firearms and Threatened to Kill a Family Sentenced to PrisonRead the Press Release
Spokane, Washington - U.S. Senior District Judge Rosanna Malouf Peterson sentenced Aaron Joseph Cunningham, age 47, of Cusick, Washington, to 41 months in federal prison on one count of Felon in Possession of a Firearm and Ammunition. Allen was convicted on October 19, 2023, following a jury trial. Senior Judge Peterson also sentenced to Cunningham to 3 years of federal supervision after he is released from prison.
According to court documents and information disclosed at trial and sentencing, on October 24, 2021, Cunningham was driving his deceased brother’s car, which he had been using as his own. Law enforcement stopped Cunningham on a Department of Corrections warrant and arrested him. The car was towed, impounded, and ultimately set for auction.
On November 30, tow employees inventoried the car for auction. Employees located two black Glock firearms in glovebox. Both firearms were loaded and chambered.
During the investigation of the unlawful possession of firearms and ammunition by Cunningham, law enforcement learned that Cunningham had made repeated threats to a family living on his deceased brother’s property. In the early morning hours of October 18, Cunningham came onto the property armed with two Glock-style firearms and accused the family of being squatters. Before leaving the property, Cunningham yelled, “I will kill you all.”
“Mr. Cunningham illegally possessed loaded firearms and used them in an attempt to frighten and threaten a family on their own property. This type of crime is not just a threat to people’s safety, it is a threat to their freedom to go about their daily lives,” stated United States Attorney Vanessa Waldref. “By working with our law enforcement partners to remove illegal firearms, we can have a significant impact in making our homes and communities safer.”
“Mr. Cunningham was prohibited from possessing firearms yet used them as a means to threaten his family,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “This sentence is well deserved and should send a message to anyone who would think to use firearms in this manner.”
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pend Oreille County Sheriff’s Office. It was prosecuted by Assistant United States Attorney David Herzog.
Crookston Man Sentenced to More Than 21 Years in Prison for Producing Child PornographyRead the Press Release
FERGUS FALLS, Minn. – A Crookston man has been sentenced to 262 months in prison followed by 20 years of supervised release for producing images and videos showing the sexual abuse of a minor, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s plea agreement and court documents, the minor victim in the case reported to school officials and to the Crookston Police that Jorge Alberto Torres, Jr., 52, had been sexually assaulting and abusing the minor victim for several years. Torres threatened and coerced the minor victim into submitting to his sexual demands, and he placed a hidden video camera in a bathroom used by the minor victim and others. The following day, law enforcement arrested Torres. Torres asked a family member to hide or destroy his Android cell phone and the hidden video camera. Law enforcement nonetheless recovered the cell phone and, after obtaining a search warrant, found that the cell phone contained multiple images and videos depicting Torres’s sexual abuse of the minor victim and other child pornography.
Torres pleaded guilty on December 20, 2023, to one count of production of child pornography and admitted to other additional conduct constituting production of child pornography. He was sentenced yesterday in U.S. District Court by Judge Katherine M. Menendez.
This case is the result of an investigation conducted by the Crookston Police Department and the FBI's Minneapolis Crimes Against Children Task Force.
Assistant U.S. Attorneys Benjamin Bejar and Emily A. Polachek prosecuted the case.Co-Owner of Mattapan Plumbing and Heating Supply Company Charged with Filing False Tax Returns and Using Unreported Receipts to Buy Gold BarsRead the Press Release
BOSTON – The co-owner of a Mattapan plumbing and heating supply company was charged today with filing false tax returns in connection with a scheme to use millions of dollars of unreported receipts of the business to buy gold bars.
Claudio Poles, 78, of Dorchester, was charged with four counts of filing false tax returns.
According to the charging documents, Poles failed to accurately disclose the company’s gross business receipts to its tax preparer, who prepared the company’s tax returns using the false information Poles provided. Poles then used some of the unreported gross receipts to purchase more than $10 million of gold and silver bars for himself from bullion dealers. To conceal the nature of the purchases he made from the company’s bank accounts for his personal benefit, Poles allegedly described the purchases, in the memo section of the checks, as for “Boilers,” “Materials” and “P&H Supp.”
The charging documents allege that between 2019 and 2022, Poles falsely and fraudulently reported losses on his individual tax returns and omitted personal income that he received from the business by purchasing the gold and silver bars.
The charge of filing false tax returns provides for a sentence of up to three years in prison, up to two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Clairton Man with Prior Conviction Indicted for Possession of Firearm and NarcoticsRead the Press Release
PITTSBURGH, Pa. – A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Eric G. Olshan announced today.
The two-count Indictment named Bradley Dawkins, 34, as the sole defendant.
According to the Indictment, on or about June 28, 2023, Dawkins possessed a firearm as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition. The Indictment also alleges that, on the same day, Dawkins possessed with intent to distribute quantities of fentanyl, crack cocaine, and powder cocaine, all of which are Schedule II controlled substances.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of not more than $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Benjamin C. Dobkin is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cincinnati man allegedly scammed dozens of victims out of more than $2 million as part of online romance fraud conspiracyRead the Press Release
CINCINNATI – A federal grand jury has indicted Richard Opoku Agyemang, 40, of Cincinnati, in connection with a romance-fraud conspiracy allegedly involving more than $2 million in loss to dozens of victims.
The indictment alleges that Agyemang conspired with others to use stolen photographs and false information to create profiles on dating websites. The coconspirators allegedly used these false profiles to reach out to victims and establish an online romantic relationship. The indictment alleges that, eventually, the coconspirators, pretending to be the person pictured in the false profile, would ask the victims to send money, falsely representing that the money was needed for things like medical expenses or to help bring a large inheritance of gold to the United States.
The victims either wired money or deposited checks to accounts allegedly controlled by Agyemang or other members of the conspiracy. Members of the conspiracy would allegedly launder the proceeds of the scheme by making wire and electronic transfers, including to domestic accounts and to accounts in China. According to an affidavit filed in support of a criminal complaint, more than $2 million, transferred from dozens of victims, passed through Agyemang’s accounts.
The 11-count indictment charges Agyemang with one count of conspiracy to commit wire fraud, six counts of money laundering, and three counts of engaging in monetary transactions with proceeds of criminal activity. Wire fraud and money laundering are punishable by up to 20 years in prison; engaging in monetary transactions with proceeds of criminal activity is punishable by up to 10 years in prison.
The indictment also alleges that Agyemang made false statements to the Small Business Administration (SBA) in a Payment Protection Program (PPP) loan application in April 2021, which resulted in the SBA awarding him more than $20,000 in COVID relief to which he was not entitled. That crime is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the indictment. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
Agyemang appeared in federal court today at 1:30pm before U.S. Magistrate Judge Karen L. Litkovitz and was arraigned on the charges.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Chesapeake man pleads guilty to producing and distributing sadistic animal torture videosRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to conspiracy to create and distribute animal crushing videos.
According to court documents, from at least Nov. 4, 2021, through Aug. 5, 2022, Michael Macartney, 51, and his co-conspirators administered a private online chat group and were members of other private online chat groups on an encrypted messaging platform for the purpose of funding, viewing, distributing, and promoting videos depicting, among other things, the torture, murder, and sexually sadistic mutilation of animals, specifically, juvenile and adult monkeys.
Macartney received over 300 electronic payments from coconspirators for the purposes of promoting, creating, obtaining, receiving, and distributing the torture videos. On one occasion, Macartney raised additional funds for a bonus payment to a videographer who, at the request of the co-conspirators and on short notice, created a video of a juvenal monkey being tortured with a jar of ants, leading to the monkey’s death.
In March 2022, Macartney agreed to sell copies of all his animal crush videos to a co-conspirator for $100. The co-conspirator sent Macartney $75 electronically and Macartney sent the co-conspirator website links where his videos were stored. Macartney stated there were just under 2,300 videos. On Aug.5, 2022, Macartney possessed at least 500 videos depicting animal crushing.
Macartney is scheduled to be sentenced on Sept. 4, 2024. He faces a maximum of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney Elizabeth Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-25.
Central Florida man sentenced to prison for COVID-19 relief fraud, creating fictitious payroll that included his childrenRead the Press Release
MIAMI — On April 25, a central Florida man was sentenced to 12 months and a day in federal prison for fraudulently obtaining COVID-19 relief loans and grants under the Paycheck Protection Program (PPP) and the Economic Injury Disaster Relief Program (EIDL); after previously pleading guilty to wire fraud.
Jean Robert Dorcius, 68, of Kissimmee, submitted false and fraudulent applications for COVID-19 relief loans that included false revenue and payroll records and fraudulent IRS tax forms. Dorcius received approximately $440,515 in COVID-19 relief funds from the fraudulent scheme. Dorcius transferred $200,000 of the fraudulently obtained funds to his personal accounts. Dorcius also created fictitious payroll records that included himself, his children, and sister.
U.S. District Judge Robert N. Scola also ordered Dorcius to forfeit $109,900 to the United States and pay $440,515 in restitution.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office, announced the sentence.
HSI Miami Field Office investigated the case. Assistant U.S. Attorney Jonathan Bailyn prosecuted it. Assistant U.S. Attorney Annika M. Miranda handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 22-cr-20553.
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California Man Pleads Guilty to Employment Tax ViolationsRead the Press Release
A California man pleaded guilty today to failing to pay over employment taxes withheld from the wages of his company’s employees.
According to court documents and statements made in court, Shane Brightpath Mike owned and was the president and chief operating officer of Excel Behavioral Services Inc., a business located in Campbell, California, that provided home care to persons with disabilities. Mike was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those funds to the IRS.
For the fourth quarter of 2014 through the third quarter of 2015, Mike did not pay any of the withheld taxes to the IRS. And for the third quarter of 2014, Mike only paid part of the funds withheld. In total, Mike did not pay more than $1 million in taxes to the IRS during these five quarters. During the same time, Mike used Excel’s funds to pay his personal expenses.
Mike also filed false personal income tax returns for tax years 2014 and 2015. On those returns, Mike falsely claimed credit for federal tax withholdings from wages he received from Excel, knowing that such had not been paid over to the IRS.
In total, Mike caused a tax loss to the IRS of $1,177,947.
Mike is scheduled to be sentenced on Sept. 24 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ismail J. Ramsey for the Northern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Matthew J. Kluge of the Justice Department’s Tax Division and Assistant U.S. Attorney Sarah E. Griswold for the Northern District of California are prosecuting the case.
California Man Admits Methamphetamine Trafficking ChargeRead the Press Release
CAMDEN, N.J. – A California man today admitted his role in a narcotics conspiracy involving approximately 1.9 kilograms of a substance containing methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Aaron Joseph, 41, of Los Angeles, California, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging conspiracy to possess with intent to distribute methamphetamine.
According to documents filed in this case and statements made in court:
From October 2020 through July 2022, Joseph participated in a conspiracy to distribute methamphetamine. Joseph shipped packages from California to conspirators in Camden County, New Jersey. Joseph’s conspirators then distributed the methamphetamine in southern New Jersey. Joseph received payment via Cash App from a conspirator for the shipments. On Feb. 14, 2022, Joseph shipped a package containing 5,100 pills from California to New Jersey. The pills contained methamphetamine and weighed approximately 1.9 kilograms.
The count of conspiracy to possess with intent to distribute methamphetamine carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 3, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the U.S. Attorney’s Office in Camden.
joseph.information.pdfBusiness partner of former Cincinnati city councilman sentenced to prison for serving as middleman in bribery schemesRead the Press Release
CINCINNATI – A Cincinnati man who served as a middleman for a former city councilman’s bribery schemes was sentenced in federal court here today to 12 months and one day in prison.
Tyran Marshall, 38, conspired with then-councilmember Jeffrey Pastor. Marshall coordinated bribery payments and “sanitized” money through a non-profit he created. He pleaded guilty in December 2023 to money laundering.
While serving as a city councilman in fall 2018, Pastor, 40, of Cincinnati, received a $15,000 cash bribe in return for his official action to advance development projects in the city. Pastor pleaded guilty to honest services wire fraud and was sentenced in December 2023 to 24 months in prison.
According to court documents, in September 2018, Marshall and Pastor flew to Miami, Florida, on a private plane to meet with investors regarding a real estate development project. During the trip, Pastor explained he would ensure favorable action on behalf of the city for the project and could receive money through Marshall’s non-profit entity (which had been incorporated two weeks prior). Pastor discussed “compensation” and agreed to accept $15,000 for helping with the project.
In October 2018, Marshall met with an individual to discuss getting city council votes from Pastor and return compensation for Pastor. Marshall solicited payment from the individual on more than one occasion. He accepted a check made out to his non-profit entity knowing it was in exchange for bribery.
Marshall also participated in soliciting corrupt base salaries of $200,000 per person for him and Pastor to continue working with the investors. Their solicitations were rejected.
Marshall and Pastor were indicted by a federal grand jury in November 2020.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Matthew W. McFarland. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
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Brothers sentenced to prison for shooting at law enforcement officersRead the Press Release
KANSAS CITY, KAN. – A pair of Kansas brothers will serve time in prison for opening fire on law enforcement officers as the officers were investigating an earlier, related shooting.
According to court documents, G’Ante Butler, 24, and Zarion Butler, 26, of Kansas City, Kansas, were both sentenced to 190 months’ imprisonment.
In December 2023, a federal jury found G’Ante Butler guilty of one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.Zarion Butler subsequently pleaded guilty to one count of forcible assault of a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence.
Co-defendants Nadarius Barnes, 24, Chase Lewis, 23, and Donnell L. Hall, 28, all of Kansas City, Kansas, each pleaded guilty to one count of forcible assault on a federal law enforcement officer and one count of use of a firearm in furtherance of a crime of violence. Barnes was sentenced to 156 months’ imprisonment, Lewis (a driver who did not shoot at officers) was sentenced to 42 months’ imprisonment, and Hall is awaiting sentencing.
On August 3, 2020, Kansas City, Kansas police officers responded to a “shots fired” call at a house where the Butler brothers’ parents lived on Farrow Avenue. In response to the investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agents and federally deputized Task Force Officers (TFOs) went to North Allis Street and arrested a suspect in the Farrow Avenue shooting. As the officers were returning to their vehicles, multiple shooters began firing at them. The officers tried to immediately take cover, however, not before an officer and a civilian bystander were struck by gunfire.
The Butlers, Barnes, and Hall shot at the North Allis Street house in retaliation for the earlier shooting on Farrow Avenue. Officers later recovered numerous spent shell casings (including 9mm, .40 caliber, .45 caliber, 5.56 caliber, and 7.62 caliber casings) from an alley west of the targeted North Allis Street home.
“Numerous brave Law Enforcement Officers started their day in August of 2020 doing their job by executing a lawful search warrant when they were ambushed by four individuals. No one can be allowed to shoot at law enforcement. This sentence sends a clear warning to anyone who thinks they can shoot at Law Enforcement and get away with it – they cannot. If they try, we will tirelessly work with the United States Attorney’s Office and our federal, state, and local partners to investigate and prosecute them to the fullest extent provided by law,” stated Bernard G. Hansen, Special Agent in Charge, Kansas City Field Division. “The actions of the ATF Special Agents and officers from our partner agencies that day are truly commendable as they acted with high regard not only for their safety but those of the surrounding community. I am both grateful for, and inspired by, the professionalism shown by the ATF agents who risked their lives that morning.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kansas City, Kansas Police Department, and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug are prosecuting the case.
OCDETF Strike Force Cases
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Kansas City Metro Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Western District of Missouri and District of Kansas. The OCDETF Kansas City Metro Strike Force is comprised of agents and officers from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Kansas City, Missouri, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service (USMS), the United States Attorney’s Office for the District of Missouri (USAO-WDMO), the United States Attorney’s Office for the District of Kansas (USAO-KS), the Drug Enforcement Administration (DEA), the Internal Revenue Service/Criminal Investigation Division (IRS/CID), the United States Secret Service (USSS), and the United States Postal Inspection Service, and the prosecution is being led by the Office of the United States Attorney for the District of Kansas.###
Brooklyn Resident Pleads Guilty to Conspiracy to Unlawfully Export Dual-Use Electronics Used in Russian Military DronesRead the Press Release
BROOKLYN, NY - Today, in federal court in Brooklyn, Nikolay Grigorev pleaded guilty to conspiring to defraud the United States for his role in an illicit export control scheme to ship electronic components from the United States to companies affiliated with the Russian military. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, Grigorev faces up to five years in prison. Co-defendants Nikita Arkhipov and Artem Oloviannikov remain at large.
Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, United States Deputy Attorney General; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; James Smith; Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (DOC-BIS-OEE), announced the guilty plea.
“Grigorev admitted today that he conspired to supply Russia with U.S.-sourced, dual-use technologies, knowing full well that his actions violated export controls and sanctions designed to stop those items from being sent to Russia and used in the production of drones like those found on the battlefields in Ukraine,” stated United States Attorney Peace. “Today’s guilty plea reaffirms that my Office will pursue anyone who violates our export controls and threatens our national security.”
“In pleading guilty today, the defendant admitted he conspired to smuggle over $250,000 worth of sensitive American drone technology to Russian companies fueling Putin’s unlawful war against Ukraine,” stated Deputy Attorney Monaco. “Swift action by agents and prosecutors unraveled a web of fake orders and wire transfers to prevent over 11,500 electronic components from making their way to the Russian war machine. The Justice Department will continue to hold accountable those who defy our sanctions and export controls to support Russia’s unprovoked and unjustified aggression in Ukraine – whether they’re based in New York City or overseas.”
“When I visited Ukraine last November, I saw firsthand the death and destruction that such drones and other Russian weapons of war have caused and heard from our counterparts about the importance of stopping the illicit flow of technology to support the Russian war machine,” stated Assistant Attorney General Olsen. “Today’s plea reinforces our commitment to hold accountable those who violate our laws and our determination to undermine the Russian government’s unjustified campaign of aggression against the Ukrainian people.”
“Nikolay Grigorev intentionally avoided export controls by masking his business’s production and shipment of technologies designed to support Russian military operations, especially its ongoing attacks in Ukraine,” stated FBI Assistant Director-in-Charge Smith. “These sanction violations intentionally subvert those laws designed to protect international trade and illustrate the defendant’s malintent in this scheme. The FBI prioritizes all threats to our national security and will disrupt any entity attempting to covertly collaborate with our adversaries”
“Deliberately circumventing U.S. export controls to enable production of drones that support Russia’s full-scale invasion of Ukraine and the indiscriminate bombing of Ukrainian citizens and critical infrastructure will not be tolerated,” stated DOC-BIS-OEE Special Agent-in-Charge Carson. “Today’s guilty plea demonstrates the direct impact that OEE investigations have in supporting U.S. national security interests.”
As alleged in the indictment, Grigorev utilized a Brooklyn-based corporate entity, Quality Life Cue LLC (“QLC”), to facilitate the scheme. QLC was registered and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia. Through QLC, the defendants procured dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine. The most notable of these entities is SMT-iLogic, a Russia-based technology company. On or about May 19, 2023, SMT-iLogic was also added to the Specially Designated Nationals and Blocked Person List (“SDN List”). According to the Office of Foreign Assets Control, SMT-iLogic is known to be involved in the supply chain for producing Russian military drones used in Russia’s war against Ukraine. SMT-iLogic is associated with an entity known as the Special Technology Centre (“STC”). STC is a Russia-based entity that was added to the SDN List on or about December 29, 2016, for assisting the foreign military intelligence agency of Russia’s armed forces, commonly known by the acronym “GRU,” in conducting signals intelligence operations. On or about January 4, 2017, STC was added by the U.S. Department of Commerce, Bureau of Industry and Security to the Entity List for supporting the GRU. STC was involved the production of the “Sea Eagle Orlan 10 UAV,” a drone vehicle that has been involved in Russian military operations in Ukraine. STC’s largest customer is Russia’s Ministry of Defense, which paid STC the equivalent of nearly $99 million between February and August of 2022.
Between October 22, 2021 and February 22, 2022, QLC accounts controlled by Grigorev received wire transactions from SMT-iLogic totaling approximately $272,830. These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor (the “Brooklyn Company”) or pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn Company. In email and chat communications, the defendants explicitly discussed their efforts to circumvent U.S. export restrictions, including through the use of front companies in third countries, such as Kazakhstan, and they also forwarded invoices listing SMT-iLogic as the recipient of semiconductors and other electronic components purchased from the Brooklyn Company. In addition, in December 2022, in response to negative press coverage of SMT-iLogic, Grigorev forwarded a news article to his co-defendants and stated, “they are already writing about your (sic) guys in articles about how Russia is getting American components for drones.” In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn resulted in the successful seizure of over 11,500 electronic components that had been purchased from the Brooklyn Company and were awaiting unlawful export to Russia.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Kate Mathews are in charge of the prosecution, with assistance from Litigation Analyst Mary Clare McMahon. Natalya Savransky, formerly of the National Security Division’s Counterintelligence and Export Control Section, also provided valuable assistance.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. 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. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The Defendant:
NIKOLAY GRIGOREV
AGE: 36
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-429 (NGG)
Bourne Man Sentenced to Eight Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Bourne man was sentenced today in federal court in Boston for receiving and possessing child sexual abuse material (CSAM) and for violating his terms of supervised release.
Bryan C. Mileikis, 37, was sentenced by U.S. District Court Judge Indira Talwani to eight years in prison, to be followed by five years of supervised release. He was also ordered to pay $18,000 in restitution for the CSAM case. In addition, Mileikis received a two-year concurrent sentence for being found in violation of his supervised release on two prior unrelated federal armed bank robbery convictions. In October 2023, Mileikis pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
Mileikis was identified as the owner of a Kik Messenger account distributing CSAM online. A search of Mileikis’ Bourne residence in June 2019 resulted in the seizure of his iPhone. A forensic examination of the cell phone was conducted which revealed approximately 156 images and 22 videos depicting CSAM. Mileikis’ CSAM collection recovered from his cell phone consisted of prepubescent and pubescent minors and included children ranging in age from approximately one year old to approximately 17 years old and included both minor girls and boys. The CSAM files included sexual abuse of minor children by adults. At the time of the offense, Mileikis was on federal supervised release for two armed bank robbery convictions for which he was sentenced to 110 months in prison.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of the Homeland Security Investigations in Boston; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; and Bourne Police Chief Brandon Esip made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Boston Man Sentenced for Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for illegally selling a dozen machinegun conversion devices.
Michael Wilkerson, 23, was sentenced by U.S. District Court Judge Denise J. Casper to 20 months in prison, followed by two years of supervised release. In February 2024, Wilkerson pleaded guilty to one count of engaging in the business as a manufacturer or dealer in firearms. Wilkerson was initially arrested and charged along with co-defendant Elijah Navarro in February 2023.
Wilkerson and Navarro were involved with the manufacturing and trafficking of “machinegun conversion devices,” these devices convert certain firearms from semi-automatic to fully automatic, rendering the firearm capable of firing multiple shots by a single function of the trigger. In January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. Following a series of communications, Navarro met the individual twice at a pre-arranged location. On Jan. 19, 2023, Navarro sold the first two machinegun conversion devices for $400 and later, on Jan. 25, 2023, Navarro sold the remaining 10 devices for an additional $1,300 out of Wilkerson’s residence.
During a search of Wilkerson’s residence in February 2023, two 3-D printers, 3-D printing material, machinegun conversion devices, a ballistic vest as well as firearms, ammunition and magazines were seized.
Neither Navarro nor Wilkerson possess licenses to import, manufacture, deal or possess firearms.
Navarro pleaded guilty to his role in the conspiracy in December 2023 and is currently awaiting sentencing.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael A. Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit prosecuted the case.
Billings man admits possessing child pornographyRead the Press Release
BILLINGS — A Billings man admitted today to possessing images of child pornography that he exchanged with another man, U.S. Attorney Jesse Laslovich said.
The defendant, Nathan Allen Sayler, 47, pleaded guilty to possession of child pornography as charged in a superseding information. Sayler faces a mandatory minimum of 10 years to 20 years in prison, a $250,000 fine, and five years to a lifetime of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sayler was released, pending a detention hearing scheduled for May 8.
The government alleged in court documents that in September 2020, law enforcement in Texas arrested an individual who was believed to be exchanging child pornography on social media. Law enforcement reviewed those accounts and determined that, in September 2020, a user in Montana had sent and received child pornography. An investigation led to a phone number on a cellular phone and an internet provider address of Sayler’s ex-wife. On Dec. 16, 2020, law enforcement conducted a probation search of Sayler, and he denied possessing the phone. Sayler’s ex-wife informed law enforcement that she had purchased the phone for Sayler at his request. In a subsequent interview in December 2020, Sayler acknowledged he had received the cellular phone from his ex-wife but had thrown it into the Yellowstone River in September 2020. Law enforcement was never able to locate the phone. Following the interview, Sayler suggested to his ex-wife that he had the phone on Dec. 16, 2020, when law enforcement was looking for it, but discarded it after they left. In January 2024, investigators executed a search warrant on email accounts associated with Sayler and located child pornography on one of the accounts.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Billings Police Department and Montana Division of Criminal Investigation conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Beverly Hills Businessman Pleads Guilty to Tax EvasionRead the Press Release
A California man pleaded guilty today to evading more than $1 million of federal and state taxes.
According to court documents and statements made in court, Haim Jerry Kohen, of Beverly Hills, California, owned and operated a business that bought and sold bulk quantities of used clothing. He spent more than a decade underreporting or not reporting income on his tax returns. He attempted to conceal this income from the IRS by diverting it from his business to himself and by dealing in cash.
For example, he underreported his business’ income by diverting cash payments received from a significant customer. Kohen kept the cash for himself instead of depositing it into his business’ bank account. Kohen did not report the diverted cash on the business’ returns or on his personal returns.
Additionally, in November 2013, that same customer owed Kohen’s business over $648,000. Kohen and the customer executed a promissory note where the customer agreed to repay the debt to Kohen personally, and not to his business. Kohen received payments pursuant to the note in cash and did not report them on any tax return. Over the years, Kohn also loaned money to people and did not report the interest payments he received on his personal returns.
Kohen also did not report rental income from two properties he owned in Beverly Hills and Tarzana, California. Kohen bought the Beverly Hills property in 2011 and soon thereafter deeded it to close family members. However, Kohen continued to collect the rental income for the property and exercised ownership and control over it. He also did not report the rental income he received from the Tarzana property.
In total, Kohen caused a tax loss to the IRS and State of California of at least $1,196,802.
Kohen is scheduled to be sentenced on Oct. 1 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada of the Central District of California made the announcement.
The International Tax and Financial Crimes group of IRS Criminal Investigation is investigating the case.
Senior Litigation Counsel Mark F. Daly and Trial Attorneys Sara E. Henderson and John C. Gerardi of the Tax Division are prosecuting the case.
Bergen County Man Admits Nearly Half Million Dollars in Overtime Fraud Involving Hudson Bergen Light Rail ProjectsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted more than $487,000 in overtime fraud involving projects on which he worked relating to the Hudson Bergen Light Rail (HBLR), U.S. Attorney Philip R. Sellinger announced.
Joseph Ferrara, 56, of North Arlington, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to one count of embezzling, stealing, and obtaining by fraud more than $487,000 of funds belonging to and under the care, custody and control of the HBLR.
According to the documents filed in this case:
From January 2018 through April 2020, Ferrara submitted fraudulent claims for compensation related to work performed on HBLR projects on which he had worked as an employee of a subcontractor specializing in electrical work. The HBLR maintains approximately two dozen stations throughout Hudson County and serves more than 50,000 passengers each weekday. Ferrara, who supervised numerous workers on HBLR projects, was compensated at a regular rate for normal workday hours, at an elevated overtime rate for work performed during non-regular weekday hours and Saturdays, and at a double time rate for work performed on Sundays. During a more than two-year period, Ferrara submitted claims for compensation covering hundreds of hours relating to work allegedly performed during regular, overtime and double time hours knowing that he had not actually performed that work for his employer or on HBLR projects. For example, Ferrara admitted that he spent approximately 10 days vacationing in Florida in both late December 2018 and late December 2019 during which he performed no work for his employer or upon HBLR projects. Nevertheless, Ferrara submitted fraudulent claims representing that he had worked more than 200 hours at regular, overtime and double time rates during those periods. In total, Ferrara admitted to receiving $487,899 in compensation for hours during which he performed no work. As part of his plea agreement, Ferrara agreed to forfeit this amount.
The theft charge is punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Sept. 5, 2024.
U.S. Attorney Sellinger credited special agents with 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 Mark J. McCarren of the Special Prosecutions Division in Newark.
ferrara.information.pdfBeaverton Man Sentenced to Federal Prison for Role in Fatal Fentanyl OverdoseRead the Press Release
PORTLAND, Ore.—A Beaverton, Oregon man was sentenced to federal prison today for distributing fentanyl that caused the fatal overdose of a local man.
Billy Ray Trueblood II, 33, was sentenced to 41 months in federal prison and four years’ supervised release.
According to court documents, in early March 2019, investigators from the Westside Interagency Narcotics Team (WIN) responded to a fatal overdose of a local man in his early thirties who was found unresponsive by his roommates. An autopsy by the Oregon State Crime Lab later confirmed the man died of an acute fentanyl overdose.
Further investigation revealed that the victim became addicted to opioids after using prescription pain killers in college to deal with athletic injuries. Investigators also learned the victim had been purchasing drugs from Trueblood since college and had recently exchanged text messages with him to arrange the purchase of “blues,” a term used to describe counterfeit Oxycodone pills manufactured with fentanyl.
In the days following the victim’s fatal overdose, investigators attempted to locate Trueblood, but were unable to do so until one investigator spotted him on television at a Portland Trailblazers basketball game. After another investigator confirmed the man spotted was indeed Trueblood, the investigators relayed the information to police officers at the game who located and arrested him. During his arrest, Trueblood was found in possession of a large amount of cash and several types of pills including some that resembled those found in the deceased victim’s bedroom.
On November 10, 2020, a federal grand jury in Portland returned a three-count indictment charging Trueblood with distributing fentanyl, distributing fentanyl resulting in death, and possessing with intent to distribute fentanyl.
On May 30, 2023, Trueblood pleaded guilty to distributing fentanyl.
This case was investigated by WIN and the FBI. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney for the District of Oregon.
WIN is a Washington County, Oregon-based multi-jurisdictional narcotics task force supported by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, FBI, U.S. Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI).
Atlantic County Resident Sentenced to 30 Months in Prison for Laundering Proceeds of COVID-19 Small Business Relief Program FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced to 30 months in prison for laundering the proceeds of fraudulently obtained Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Earley, 42, of Egg Harbor Township, New Jersey, and Lilburn, Georgia, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams to an information charging him with one count of engaging in a monetary transaction in criminally derived property. Judge Williams imposed the sentence on April 29, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided forgivable loans to small businesses for job retention and certain other expenses. The loans were approved based on fraudulent applications submitted by another individual stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively. The applications also contained forged tax forms. In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages. After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to the individual who submitted the loan applications to compensate her for her role in submitting the fraudulent loan applications. Earley also wired $85,000 of the proceeds out of a bank account he controlled after being advised by federal agents not to spend the money because it constituted proceeds of bank fraud.
In addition to the prison term, Judge Williams sentenced Earley to three years of supervised release.
Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-In-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
29 April 2024
West Covina Man Arrested for Allegedly Attempting to Pick up Money from Elderly Victims Who Were Defrauded in Phishing SchemeRead the Press Release
LOS ANGELES – A San Gabriel Valley man is scheduled to appear in court this afternoon on federal charges stemming from his alleged attempt to obtain additional funds from two elderly victims who had already paid thousands as part of an online phishing scheme that locked up their home computer.
Tai Su, 48, of West Covina, is scheduled to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. Su was arrested Friday in a sting orchestrated by Homeland Security Investigations (HSI), and federal prosecutors Sunday filed a criminal complaint that alleges one count of conspiracy to commit wire fraud.
Su was arrested at the victims’ Encino residence when he showed up to retrieve $35,000 from the two elderly victims who had already paid the fraudsters $25,000 in cash. According to the affidavit in support of the criminal complaint, Su is part of a scheme that included a computer virus, callers pretending to help the victims, and two other people who masqueraded as federal agents.
The cyberattack began on April 23 when the victims opened an email and clicked on a link launching malware that seized their computer and displayed a phone number that was purportedly “Microsoft Support.” The victims called the number and spoke to a person who advised they had been “hacked,” and the hackers now had their bank account information at City National Bank.
The victims were then connected to another person pretending to be a “Fraud and Risk Investigator” with City National Bank, who instructed the victims to withdraw $25,000 in cash and give the money to purported “federal agents” who would come to the victims’ house. The victims withdrew the cash and, later on April 23, two men pretending to be federal agents – one of whom displayed a fake badge – came to the victims’ residence and collected the money.
Over the next two days, the scammers continued to seek additional funds from the victims, even directing them to make a $10,000 withdrawal at a particular City National Bank branch.
HSI agents on April 25 learned about the ongoing scam and planned a sting operation.
On April 26, during a series of phone calls with participants in the scheme, the victims agreed to make another $35,000 cash payment. After rebuffing demands to deposit the funds into a virtual wallet at a remote location, the victims arranged for another pick-up by a “federal officer” at their residence.
At the agreed-upon time, Su drove to the victims’ home. He identified himself to an 86-year-old victim, gave a passcode, and then said he was from Coinbase, a popular cryptocurrency platform. HSI agents then arrested Su, who was found to be carrying thousands of dollars in cash in large denominations, according to the affidavit.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of conspiracy to commit wire fraud carries a statutory maximum sentence of 20 years in federal prison.
The investigation was conducted by the Homeland Security Investigations-led El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.
Assistant United States Attorneys Kedar S. Bhatia and Joseph De Leon of the General Crimes Section are prosecuting this case.
This case is the product of an investigation by the Vulnerable Communities Task Force, which is focused on investigating and prosecuting individuals and entities that prey on communities that typically are less likely to report crimes to law enforcement and historically have had less legal recourse to address the offenders targeting them. These groups may include immigrants and migrant workers defrauded in immigration schemes, indigent individuals reliant on public benefits, the elderly, and those who have been reluctant to seek assistance from government authorities.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. English, Spanish and other languages are available.
Two Plead Guilty to Counterfeit Pill Trafficking ConspiracyRead the Press Release
BOSTON – Two men have pleaded guilty in federal court in Boston to their roles in a North Shore-based drug trafficking organization (DTO) that distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Nelson Mora, 31, of Lynn, and Christopher Nagle, 30, of Revere, pleaded guilty to one count each of conspiring to distribute and to possess with intent to distribute controlled substances. Christopher Nagle also pleaded guilty to possession with intent to distribute more than 500 grams of methamphetamine. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencings for Aug. 5, 2024 and Aug. 13, 2024, respectively.
According to court documents, Christopher Nagle and allegedly his brother Lawrence Michael Nagle were identified as leaders of a DTO distributing various controlled substances throughout the North Shore region of Massachusetts. It is alleged that the Nagle DTO distributed significant quantities of various controlled substances, including, Adderall (both pharmaceutical-grade pills and counterfeit pills containing methamphetamine), methamphetamine, Xanax, Oxycodone (both pharmaceutical-grade and counterfeit pills containing fentanyl), cocaine and marijuana, among others.
Christopher Nagle’s brother, Lawrence Michael Nagle, allegedly distributed controlled substances to a small network of individuals who would then redistribute the drugs to other traffickers, including Mora, who also had access to a pill press machine which he used to create counterfeit pills.
A search of Christopher Nagle’s apartment recovered more than 74,000 counterfeit Adderall pills containing methamphetamine, weighing more than 24 kilograms.
Mora and Nagle are the 10th and 11th defendants to plead guilty in this case.
The charge of conspiracy to possess with intent to distribute and to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and fine of up to $1 million. The charge of possession with intent to distribute more than 500 grams of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Essex County District Attorney’s Office and the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics & Money Laundering Unit are prosecuting 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.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Pinellas County Men Indicted for Robbing Convenience Store with A FirearmRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces return of an indictment charging Alex Jones (31, Pinellas County) and Jhakheem Smith (24, Pinellas County) with Hobbs Act robbery, conspiracy to commit that robbery, and one count of brandishing a firearm during a crime of violence during the commission of the robbery. If convicted of the robbery offenses, each faces a maximum penalty of 20 years in federal prison for each charge. If convicted of the firearm offense, each faces a maximum penalty of life in federal prison.
According to the indictment and court hearings, on November 8, 2023, Jones and Smith robbed a convenience store in the Clearwater area. During the robbery, they brandished a firearm. They also used the firearm to strike the victim, a store clerk, in the back of the head. Jones and Smith then forced the victim at gun point to the back of the store before they fled the scene.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clearwater Police Department, and the Largo Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Two Men Sentenced to 10 Years for Trafficking Mass Quantities of Fentanyl from Southern California to the DistrictRead the Press Release
WASHINGTON – Mario Ernesto Benitez, 29, and Diamante Markell Hall, 29, both of Washington D.C., were sentenced today to 120 months in prison for their roles in a large-scale narcotics conspiracy that trafficked kilogram quantities of fentanyl and additional amounts of cocaine from Southern California to the metropolitan region.
The sentences were announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division, DEA Special Agent in Charge Jarod A. Forget of the Washington Division of the U.S. Drug Enforcement Administration (DEA), Inspector in Charge Damon Wood, of the United States Postal Inspection Service Washington Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
Benitez, who pleaded guilty to conspiracy to distribute fentanyl and cocaine on January 11, 2024, was sentenced to 10 years in prison by U.S. District Judge Dabney L. Friedrich, who also ordered Benitez to serve five of supervised release on completion of the prison term.
Hall, who pleaded guilty to conspiracy to distribute fentanyl and cocaine, was sentenced to 10 years in prison by Judge Friedrich, who also ordered Hall to serve five years of supervised release.
According to court documents, Benitez admitted to trafficking more than three kilograms of a mixture of substance containing fentanyl and 217 grams of cocaine from December 2022 until his arrest in May 2023. Hall admitted to trafficking nearly six kilograms of fentanyl to the metro area in the span of a few months.
Authorities learned that on December 13, 2022, two packages were shipped at the same time from a facility in Monterrey Park, California, to the Washington, D.C. area. Both packages were addressed to “Martes Benito,” on the 700 block of Congress Street, S.E. The shipper opened the first package pursuant to their own policies as the package was deemed suspicious by its employees. Virginia State Police and the DEA recovered approximately 700 grams of fentanyl pills and 200 grams of cocaine from the first package.
On December 17, 2022, the shipper informed law enforcement that a second package addressed to “Martes Benito” at the Congress Street address had been intercepted. Law enforcement obtained a state court warrant for the package. It was found to contain approximately one kilogram of fentanyl pills. Video from the shipping facility in Monterrey Park confirmed that Benitez mailed both packages at the same time on December 13, 2023, and the video footage shows the distinctive tattoos on Benitez’s left hand and left wrist.
Agents also learned that beginning in June 2022, approximately twice a month, Benitez made short trips, flying to Los Angeles, California and then returning to the Washington D.C. area. One of those trips took place from December 12 to December 13, 2023, which coincided with the date that both packages were shipped from the facility near Los Angeles in Monterrey Park. Hall often accompanied him on those trips and helped to ship packages of fentanyl to the Washington metro area.
On May 3, 2023, agents arrested Benitez in the District. Upon his arrest, agents executed a search warrant at his residence where they seized six grams of cocaine and 150 grams of fentanyl pills, a DPMS AR-style rifle and a Glock Model 19 handgun, $57,226 in cash, and implements used to ship the narcotics. The magazine in the AR-style rifle was loaded.
Hall addressed his packages to the 500 block of Rittenhouse Street, NW. On September 18, 2023, law enforcement arrested Hall in Maryland. In searching Hall’s residence, agents found 28 grams of suspected cocaine, a loaded Glock Model 30 handgun with an obliterated serial number, additional ammunition of different calibers, a money counter, a digital scale, and $1,500 in cash which Hall admitted was proceeds from his drug sales.
This investigation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the FBI, the DEA, U.S. Postal Inspection Service Washington Division, and Virginia State Police. It is being prosecuted by Assistant U.S. Attorney Nihar Mohanty of the Violent Crime and Narcotics Trafficking Section and Assistant U.S. Attorney Alicia Long.
Two Men Admit to Federal Firearms OffensesRead the Press Release
WHEELING, WEST VIRGINIA – Two West Virginia men have admitted to firearms charges.
Mustafa A. Baker, age 54, of Wheeling, West Virginia, pled guilty today to the unlawful possession of a firearm. According to court documents and statements made in court, Baker was wanted on outstanding warrants of brandishing and destruction of property. Wheeling Police officers pulled over Baker’s vehicle and found a loaded 9mm semiautomatic pistol and 10 rounds of ammunition. Baker is prohibited from having firearms because of eight prior felony convictions in Virginia, including drug possession, 3rd offense DUI, felony domestic assault, and felony assault and battery.
Michael Douglas Murphy, Jr., age 38, of Hedgesville, West Virginia, pled guilty to making a false statement in applications for a firearm. According to court documents, Murphy falsified a form when purchasing a firearm at the licensed dealer in Martinsburg, claiming the firearm was for his personal use, when in fact, the firearm was for another individual who was prohibited by law from possessing firearms.
Investigative agencies include the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the West Virginia State Police; and the Wheeling Police Department.
Special Assistant U.S. Attorney John Kyle, also with the Brooke County Prosecutor's Office, and Assistant U.S. Attorney Kyle Kane are prosecuting the cases on behalf of the government.
Two Former Missouri Health Care Charity Executives Sentenced for Roles in Multimillion-Dollar Bribery and Embezzlement SchemeRead the Press Release
Two former executives of a Springfield, Missouri-based charity were sentenced for their roles in a multimillion-dollar public corruption scheme that involved embezzlement and bribes paid to multiple elected public officials in the State of Arkansas.
Bontiea Bernedette Goss, 65, was sentenced today to three years in prison, and her husband, Tommy “Tom” Ray Goss, 68, was sentenced on April 25 to six years in prison. They were also ordered to jointly pay $4.35 million in forfeiture and/or restitution.
According to court documents, Bontiea and Tom Goss were the former chief operating officer and chief financial officer, respectively, at Preferred Family Healthcare Inc., a charity that provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois. Some of these services included mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. In exchange for the bribes and kickbacks offered and paid by the Gosses and their co-conspirators, elected state officials in Arkansas provided favorable legislative and official action for the charity, including, but not limited to, influencing legislation that would impact the charity and directing funds from the State’s General Improvement Fund.
In September 2022, both Bontiea and Tom Goss pleaded guilty to conspiracy to pay bribes and kickbacks to elected officials in Arkansas. Tom Goss also pleaded guilty to participating in the conspiracy by embezzling funds from the charity and to one count of aiding and assisting in the preparation and presentation of a false tax return.
In 2022, Preferred Family Healthcare also agreed to pay more than $8 million in forfeiture and restitution to the federal government and the State of Arkansas under the terms of a non-prosecution agreement, which acknowledged the criminal conduct of its former officers and employees.
As part of this long-running, multi-jurisdiction federal investigation, additional former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court, including the following:
- Former CEO Marilyn Luann Nolan, of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former Executive and Head of Clinical Operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and Head of Operations and Lobbying in Arkansas Milton Russell Cranford, also known as Rusty, of Rogers, Arkansas, was sentenced to seven years in prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, also known as D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, pursuant to a global plea agreement, pleaded guilty on June 25, 2019 in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery. Hutchinson was sentenced to eight years in prison.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV pleaded guilty to conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the State of Arkansas of their right to honest services. Wilkins was sentenced to one year and one day in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Teresa A. Moore for the Western District of Missouri; U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas; U.S. Attorney David Clay Fowlkes for the Western District of Arkansas; Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS-CI) St. Louis Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Inspector General Michael E. Horowitz of the Justice Department Office of Inspector General; Special Agent in Charge William J. Hannah of the Justice Department Office of the Inspector General, Midwest Region; Inspector General Larry D. Turner of the Department of Labor Office of Inspector General; and Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General made the announcement.
IRS-CI, FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and FDIC investigated the cases.
Acting Deputy Chief Marco A. Palmieri and Trial Attorneys Jacob Steiner and Aaron Jennen of the Criminal Division’s Public Integrity Section; Supervisory Assistant U.S. Attorney Randall Eggert for the Western District of Missouri; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; and Assistant U.S. Attorneys Ben Wulff and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the cases.
The Justice Department Supports More Competition and Lower Prices for Communications from Jails and PrisonsRead the Press Release
The Justice Department’s Antitrust Division today filed comments with the Federal Communications Commission (FCC) in support of efforts to lower prices and improve the quality of incarcerated people’s communications services (IPCS).
“Telephone services are a lifeline between incarcerated people and the outside world,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Regular and reliable communication keeps families connected and reduces recidivism after release. I applaud the FCC for its work over the past decade to make rates and charges for incarcerated people’s communications services more fair, just, and reasonable. We encourage the FCC to build on this work as it considers new rules in this area.”
Communication with loved ones can improve incarcerated people’s wellbeing. It also provides significant benefits to families, especially to children with incarcerated parents. Yet as the department’s comment details, a small group of corporations now dominate the market for IPCS. As a result, phone calls in prison and jail are often low quality and prohibitively expensive. In fact, as many as one third of families with incarcerated family members have gone into debt to pay for calls and visits to prisons.
The department’s comment, filed as an ex parte submission to assist the FCC in their implementation of the Martha Wright-Reed Just and Reasonable Communications Act of 2022, suggests a number of regulatory safeguards that would promote competition, better align market incentives and help to lower costs. All of these measures would provide much-needed relief to American families trying to stay connected with incarcerated loved ones.
The Justice Department is committed to protecting the competitive process across the economy, and it has worked actively to promote competition in telecommunications. The department works closely with the FCC to promote competition through review of communications mergers and in other matters, and the department looks forward to continuing its work with the FCC to achieve affordable communications services for incarcerated people and their families.
Sunbury Man Sentenced to 24 Months in Prison for Failing to Comply with Sex Offender Registration RequirementsRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Xavier Josey, age 33, of Sunbury, Pennsylvania, was sentenced today to 24 months in prison on the charge of failing to comply with sex-offender registration requirements.
According to United States Attorney Gerard M. Karam, Josey was required to comply with the Sex Offender Registration and Notification Act due to a 2013 conviction for indecent liberties with a child in North Carolina, but failed to do so upon establishing a residence in Pennsylvania. The indictment charged that Josey traveled interstate to Pennsylvania, established a residence in Sunbury, but failed to register or update his sex offender registration information in Pennsylvania as required by the law.
In addition to the prison term, United States District Court Chief Judge Matthew W. Brann also ordered that Josey be supervised by a probation officer for five years following his release from prison, that he undergo sex-offender treatment, and that he comply with all registration requirements of the Sexual Offender Registration and Notification Act.
The charges were the result of an investigation by the United States Marshals Service – Harrisburg office. The case is being prosecuted by Assistant U.S. Attorney Michael Scalera.
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.
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Stanislaus County Man Sentenced to over 19 Years in Prison for Trafficking MethamphetamineRead the Press Release
FRESNO, Calif. — Andrew Satariano, 43, of Modesto, was sentenced today to 19 years and seven months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 4, 2021, police tried to conduct a traffic stop on a vehicle Satariano was driving. Satariano stopped briefly, let a female out of the car, and then took off at a high rate of speed reaching speeds of up to 100 miles per hour. Satariano collided with several vehicles and the vehicle was disabled. Satariano fled from the car and hid nearby, after which police found and arrested him. Satariano had two loaded handguns, one of which was stolen and had a high-capacity magazine attached. He also had over 850 grams of pure methamphetamine that he was selling. Satariano’s sentence was affected by his extensive criminal history starting in 2001, which included prior convictions for evading police.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Stanislaus County Man Sentenced to 18 Months in Prison for Passing Counterfeit Savings BondsRead the Press Release
SACRAMENTO, Calif. — Ronnie Douglas Fleming, 38, of Keyes, was sentenced today to 18 months in prison for one count of passing counterfeit obligations of the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on 10 occasions between March and May 2022, Fleming passed 11 counterfeit United States savings bonds at banks in the Counties of Stanislaus, San Joaquin and other California counties. Fleming received $134,784 for the savings bonds.
This case was the product of an investigation by the U.S. Secret Service. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Springfield CPA Pleads Guilty to Stealing $400,000 from Trust FundRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man pleaded guilty in federal court today to embezzling more than $400,000 from a trust fund under his control.
Ray Leonard Marple, 61, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of wire fraud and one count of making a false federal tax return.
Marple, a certified public accountant, has been operating his own accounting firm since 1999. By pleading guilty today, Marple admitted that he embezzled approximately $432,981 from a revocable trust account from July 7, 2017, through May 3, 2023, following the death of the grantor.
According to the plea agreement, Marple would have been entitled to trustee fees less than $2,500 annually, or $17,500 total for the seven years, significantly less than he withdrew from the trust account for personal purposes. Marple therefore stole at least $415,481 from the trust account. Marple admitted he used proceeds from the fraud scheme to purchase his residential property in Springfield.
Marple also admitted that he under-reported his income on federal tax returns from 2018 to 2020. Marple earned nearly $177,000 in taxable income that was not reported over those three years, for which he owes $59,622 in federal income taxes.
Under the terms of today’s plea agreement, Marple must pay up to $415,481 in restitution to the trust and at least $59,622 in restitution to the Internal Revenue Service, as ordered by the court. Marple also must forfeit to the government a money judgment of $415,481 and his Springfield residential property.
Under federal statutes, Marple is subject to a sentence of up to 23 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation and the FBI.
Sioux Falls Woman Sentenced to Federal Prison for Possession of a Firearm by a Prohibited PersonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman, convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on April 22, 2024, in Sioux Falls, South Dakota.
Christina Gonzalez, age 34, was sentenced to one year and eight months in federal prison, followed by three years of supervised release. She was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Gonzalez was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in December of 2023. She pleaded guilty on February 6, 2024.
On October 20, 2023, law enforcement responded to a call of a suspicious person trespassing on private property. The reporting party advised the trespasser was a female and that she had a handgun in her possession. When law enforcement arrived, they located Gonzalez next to her vehicle parked near the property. When Gonzalez was placed under arrest, a search of her vehicle was conducted, and law enforcement located the handgun the witness previously saw in her possession.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sioux Falls Police Department. Assistant U.S. Attorney Paige Petersen prosecuted the case.
Gonzalez was remanded to the custody of the U.S. Marshals Service to continue serving her sentence.
Sioux Falls Man Charged with Conspiracy to Distribute Methamphetamine Sentenced to over 16 Years in Federal PrisonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on April 22, 2024.
Edward Ward, 52, was sentenced to 16 years and eight months in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ward was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in March of 2023. He pleaded guilty on January 23, 2024.
Ward obtained methamphetamine through the mail from a co-conspirator in California and re-distributed it in South Dakota. On May 3, 2022, Ward sold approximately four ounces of methamphetamine to a confidential informant who was working with law enforcement. Also on May 17, 2022, he sold another 5.5 ounces of methamphetamine to the informant during a controlled purchase orchestrated by law enforcement. Then again on May 26, 2022, Ward sold another eleven ounces of methamphetamine to the same informant. He was personally involved in the handling and distribution of approximately 100 pounds of methamphetamine during his involvement in the conspiracy.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Police Department. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Ward was immediately remanded to the custody of the U.S. Marshals Service.
Sarasota Man Pleads Guilty to Stealing Railroad Retirement Board Disability BenefitsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Allen R. Jenkins (68, Sarasota) has pleaded guilty to theft of government property. Jenkins faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Jenkins, a United States Railroad Retirement (USRRB) disability annuitant, was actively working in multiple capacities throughout the period he was receiving USRRB disability benefits and failed to report any of that work as required. Specifically, Jenkins was listed as a Registered Agent/Officer of at least 22 businesses, maintained five real estate broker’s licenses, and was licensed and working as a Community Association Manager. Jenkins failed to report this work activity, despite receiving annual reminder notices to report all work activity, and provided false, incomplete, and misleading answers on the one occasion he was directly asked about his work activity by the RRB. Jenkins was also buying and renovating properties for profit, which he did not report. Based on Jenkins’s failure to make the required reports, USRRB overpaid him approximately $271,124 in disability benefits.
This case was investigated by the Railroad Retirement Board, Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney Michael Gordon.
Sacramento County Man Indicted for Fraud in Connection with Medical Device SalesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment on April 25, 2024, against Michael Andrew Scott, 38, of Fair Oaks, charging him with wire fraud, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today following Scott’s arrest.
According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from various health care providers in Northern California for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk. In order to convince some of his victims to lend him money, Scott sent them fabricated copies of these purchase orders. Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, however, they received little to no returns on their investments. Instead, Scott spent the money on gambling, personal expenses, and payments to prior investors in order to keep the scheme running.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.
If convicted, Scott faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Russian National Residing in Sacramento Sentenced to 12 Years in Prison for Attempting to Provide Material Support to a Foreign Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — Murat Kurashev, 37, a Russian national who resided in Sacramento, was sentenced today to 12 years in prison for attempting to provide material support to a designated foreign terrorist organization, U.S. Attorney Phillip A. Talbert announced.
“This sentence holds Kurashev accountable for attempting to provide material support to a designated terrorist organization,” said U.S. Attorney Talbert. “Kurashev’s attempts to provide that material support were not isolated. They took place over a substantial period of time and his intent with those financial transfers was clear. We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of Kurashev’s offense. Working with our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”
“The FBI’s mission is clear – to protect the American people and uphold the Constitution. Anyone who provides support to a terrorist organization is a threat to the safety and security of all Americans, both here and abroad,” said Special Agent in Charge Siddhartha Patel of the FBI Sacramento Field Office. “I am grateful for the tireless dedication of FBI and U.S. Attorney’s personnel who are deeply committed to our partnership and ensuring all cases like these are thoroughly investigated and fairly prosecuted.”
According to court documents, Kurashev attempted to provide financial support to Hayat Tahrir al-Sham (HTS), which is designated by the Secretary of State as a foreign terrorist organization that engages in terrorism in Syria. Between July 2020 and February 2021, Kurashev used money transfer services to send approximately $13,000 to two known couriers of an HTS fundraiser. Records obtained from the money transfer services documented multiple transactions from Kurashev to the couriers in Turkey, usually in increments of $1,000. The couriers retrieved the funds often within 24 hours of transfer. Surveillance footage from money transfer businesses captured Kurashev during some of the transactions.
Social media and encrypted mobile messaging discussions between Kurashev and the fundraiser made clear that Kurashev was fully aware of the fundraiser’s violent extremist ideology and participation and work on behalf of HTS. Kurashev stated that he wished he could join the fight in Syria as a mujahideen and regretted that he could only provide financial support. As their conversations showed, Kurashev and the fundraiser believed that providing money in support of the HTS fighters was tantamount to being engaged in violent jihad.
According to court documents, Kurashev followed the fundraiser’s online presence and various social media accounts, which included solicitations for money to purchase military equipment, boots, clothing, firearms, and, in one case, a motorcycle. Forensic analysis of Kurashev’s Apple iCloud account revealed it to be replete with violent extremist content, including a video depicting HTS fighters.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Heiko P. Coppola and Trial Attorney Dmitriy Slavin of the Department of Justice’s Counterterrorism Section prosecuted the case.
Rochester man sentenced to more than 12 years in prison for drug trafficking and gun possessionRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Torrence Dyck, 51, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine and possession of firearms and ammunition by a convicted felon, was sentenced to serve 150 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Dyck operated a drug house on Warsaw Street in Rochester, using workers, who he recruited and paid, to distribute street-level quantities of cocaine to customers at the drug house. During the investigation, law enforcement recovered approximately 640 grams of cocaine, more than $20,000 in drug proceeds, drug packaging materials, and two firearms. Dyck has four prior felony convictions for Robbery, Criminal Negligent Homicide, federal narcotics conspiracy, and Aggravated Unlicensed Operation of a Motor Vehicle and Operating a Motor Vehicle Under the Influence of Alcohol, and is legally prohibited from possessing firearms.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division. Additional assistance was provided by the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Rensselaer Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
ALBANY, NEW YORK – Andrew Williams, age 38, of Rensselaer, New York, pled guilty today to illegally possessing a rifle as a previously convicted felon.
United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Williams admitted that on May 2, 2023, he possessed the rifle and 15 other firearms, as well as ammunition, at his residence in Rensselaer. A prior felony conviction for burglary in the third degree prevented Williams from legally possessing the firearms and ammunition.
Williams will be sentenced on September 4, 2024, by United States District Judge Mae A. D’Agostino. Williams faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of 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.
This case was investigated by ATF and the East Greenbush Police Department, with the assistance of the Rensselaer County District Attorney’s Office. Assistant U.S. Attorneys Emmet O’Hanlon and Mikayla Espinosa are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Readout of Pardon Attorney’s Outreach Efforts During Second Chance MonthRead the Press Release
During the month of April, which is recognized as Second Chance month, the Office of the Pardon Attorney hosted a number of events to highlight opportunities for both currently incarcerated and formerly incarcerated individuals. On Monday, April 22, and Tuesday, April 23, Pardon Attorney Elizabeth G. Oyer and staff members of the Office of the Pardon Attorney held a series of meetings and trainings in partnership with the Federal Bureau of Prisons (FBOP) as part of the department’s initiative to increase the accessibility and transparency of the clemency process through education and community engagement. In 2023, the Office met with over 1,800 people in Federal Bureau of Prisons facilities to provide information about applying for clemency.
On Monday, Pardon Attorney staff visited FCI Danbury, a low security co-ed institution. The Pardon Attorney’s team met with over 200 inmates and staff during their visit. The team provided a series of educational sessions about the federal clemency process and answered questions from inmates and staff.
On Tuesday, the Pardon Attorney and members of her team met with over 1,100 incarcerated people and staff throughout the Yazoo City Federal Correctional Complex (FCC) in Yazoo City, Mississippi. The Pardon Attorney and her team conducted educational sessions at all three of the institutions in the FCC – Low I, Low II and Medium. Staff attended a session at the training center for FBOP employees and then visited each of the institutions with the Pardon team.
Following the Yazoo City visit, Pardon Attorney Oyer and her staff traveled to Jackson, Mississippi, to meet with Judge Carlton Reeves, U.S. Attorney Todd Gee for the Southern District of Mississippi, Federal Public Defender Omodare Jupiter and U.S. Probation Officer Mark Quarles. During the meeting, U.S. Attorney Gee shared the critical steps his office has taken to expedite the review of cases and improve the clemency process.
“Collaboration among stakeholders in the criminal justice system is essential to ensuring a well-functioning clemency process,” said Pardon Attorney Oyer. “Our visits to the Federal Bureau of Prisons have allowed us to provide thousands of incarcerated people with the knowledge and tools to utilize the clemency application process effectively. We have also educated hundreds of FBOP staff about the important role they can play in the process. Direct outreach and engagement with those in prison is essential to promoting public confidence in the clemency process.”
The visits to FCI Danbury and Yazoo City FCC were the sixth and seventh in a series of quarterly educational events that the Pardon Attorney is conducting for incarcerated people and staff at different FBOP locations.
April is recognized as Second Chance Month which helps to educate and highlight the resources available to those who are leaving incarceration. This April, the Office of the Pardon Attorney hosted its second annual “Celebration of Second Chances.” Deputy Attorney General Lisa Monaco, Pardon Attorney Oyer and other Justice Department officials delivered remarks highlighting the Justice Department’s support for second chances. The Justice Department is committed year-round to improving opportunities for rehabilitation and redemption and reforming and streamlining the clemency process. In December 2023, the department released a fact sheet detailing the actions taken to improve transparency, accessibility, efficiency and public engagement. Recent improvements include simplification of clemency forms to ensure that they are easy to understand and to use. The Office is also taking steps to reduce processing times and close long-pending petitions. As Deputy Attorney General Monaco noted in her remarks, the Office has reviewed approximately 12,000 clemency applications during the last two years. The department continues to engage with and educate the public on the clemency process.
Raleigh Man Sentenced to 40 Years for Leadership Role in Cross-Country Drug ConspiracyRead the Press Release
RALEIGH, N.C. – Lawrence Levon Jones, age 45, of Raleigh, was sentenced to 480 months in prison for his role as a leader of a Raleigh-based drug organization that sourced drugs from Los Angeles, California, and Newark, New Jersey. Jones was convicted by a federal jury of drug trafficking and firearms offenses in December 2023. He has eight prior felonies, including seven drug trafficking offenses and one conviction for felon in possession of a firearm.
“This operation – which seized nine guns, over a hundred kilos of narcotics, and over three-quarters of a million dollars from a prolific drug trafficker – is a perfect example of our enforcement strategy. We are partnering with Raleigh Police to bring federal tools to dismantle the trans-national drug trafficking networks touching our Capital City,” said U.S. Attorney Michael Easley. “Jones’ stored cocaine, ecstasy, and ‘kilo presses’ in a Raleigh stash house and had narcotics shipped across our interstates in a hidden compartment made to look like a stack of lumber on a truck. Today marks the end of the road for Lawrence Jones and his enterprise.”
“Jones and his partners boldly believed they could run their cross-country drug trafficking operation from Raleigh without detection. The FBI and our law enforcement partners at the Raleigh Police Department worked tirelessly to ensure everyone involved in this conspiracy is held accountable for peddling drugs in our community,” said Robert M. DeWitt, the Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
According to court records and evidence presented at trial, during an investigation into drug trafficking activity, which included surveillance and wiretaps, agents determined that Jones regularly traveled to Los Angeles and Newark, picked up money from conspirators who were holding for him, and purchased large quantities of cocaine and marijuana. Couriers transported the drugs to the Raleigh area.
On July 22, 2020, law enforcement in Texas stopped one of these couriers traveling eastbound from California and seized 400 pounds of marijuana and three kilograms of cocaine from a hidden compartment in the back of the truck that had been constructed to look like a large stack of lumber. That same day, agents arrested Jones when he arrived at his stash house in Raleigh. Inside the home, agents found 3.5 kilograms of cocaine, 138 grams of crack, 2 kilograms of marijuana, hundreds of ecstasy pills that contained methamphetamine, two handguns (one stolen), over $99,000 in cash, and five-kilo presses. Over the next two days, agents executed multiple search warrants at homes used by Jones’s organization in Raleigh and California and seized nine guns, over $757,000, and additional drugs.
The prosecution of Jones was a part of the Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Other defendants associated with Jones pled guilty to drug trafficking and or firearms offenses and received the following sentences imposed by U.S. District Judge James C. Dever III:
-Tyrone Bragg, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 168 months in prison followed by five years of supervised release;
-Calvin Lamar Kelley, of Keysville, Georgia, pled guilty to a drug trafficking conspiracy charge and received a sentence of 60 months in prison followed by four years of supervised release;
-Wesley Kimball Kelly, of Atlanta, Georgia, pled guilty to a drug trafficking conspiracy charge and received a sentence of 35 months in prison followed by five years of supervised release;
-Keishron Ko-She Kilpatrick, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 84 months imprisonment followed by three years of supervised release;
-Marquis Deja Brite, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 90 months in prison followed by five years of supervised release;
-Hurley Matthew Cannady, of Raleigh, pled guilty to drug trafficking conspiracy and firearms charges and received a sentence of 117 months in prison followed by five years of supervised release;
-David Earl Seawell, Jr., of Raleigh, North Carolina, pled guilty to drug trafficking conspiracy charges and received a sentence of 78 months in prison followed by five years of supervised release and
-Robert McNeal, of Raleigh, pled guilty to drug trafficking conspiracy and is awaiting sentencing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge James C. Dever III sentenced the defendant. The Raleigh Police Department and Federal Bureau of Investigation investigated the case, and Assistant U.S. Attorneys Casey Peaden and Nick Hartigan prosecuted it. Investigators also received valuable assistance from the Drug Enforcement Administration and the 32nd Judicial District Attorney’s Office in Texas.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00388-D-1.
Port Charlotte Man Sentenced to More Than 4 Years in Federal Prison for Child Sexual Abuse OffensesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Richard Welbourne (67, Port Charlotte) to 51 months in federal prison for possessing and accessing with intent to view images depicting the sexual abuse of children. Welbourne was also sentenced to 15 years of supervised release and ordered to register as a sex offender. Welbourne pleaded guilty on January 12, 2024.
According to court documents, from August 7, 2022, through November 15, 2022, Welbourne knowingly possessed and accessed with intent to view child sexual abuse material that he had searched for, downloaded, and viewed from the internet.
In June of 2022, the National Center for Missing and Exploited Children (NCMEC) received four cybertips from an Electronic Service Provider reporting that Welbourne was involved in the possession of child sexual abuse material (CSAM).
On November 15, 2022, the FBI executed a search warrant at Welbourne’s residence in Port Charlotte, Florida and Welbourne’s computer was seized. In addition, agents spoke with Welbourne, who admitted that he would click on links that contained CSAM. Welbourne admitted that he would save the links to his “favorites” in the web browser so he could easily access the sites in the future. Welbourne said that he did not save any of the images or videos to his computer. Welbourne also admitted that he had seen girls as young as 4 or 5 years old on the CSAM sites that he visited and to accessing the internet to view CSAM for approximately 20 years.
A subsequent forensic examination of Welbourne’s computer revealed child sexual abuse material.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, which includes the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orlando Man Charged with Trafficking over 20 Kilograms of CocaineRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Tyrone Jose Beltran Lugo (27, Orlando) with possession with intent to distribute five kilograms or more of cocaine. If convicted, Beltran Lugo faces a maximum penalty of life in federal prison.
According to court documents, a federal search warrant was executed at a residence used by Beltran Lugo. At the residence, agents located over 20 kilograms of cocaine, approximately $96,000 in currency, nearly 85 grams of heroin, and two loaded handguns with extended magazines.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, with valuable assistance from the United States Postal Inspection Service and the Orange County Sherriff’s Office. It will be prosecuted by Assistant United States Attorney Noah P. Dorman.
Orange County Sober Living Homes Owner Indicted for Allegedly Paying Nearly $175,000 in Kickbacks to ‘Body Brokers’ for Referring PatientsRead the Press Release
SANTA ANA, California – The owner and operator of addiction treatment facilities in Orange County is expected to be arraigned today on a federal grand jury indictment alleging he paid nearly $175,000 in illegal kickbacks to so-called “body brokers” in exchange for finding him new patients.
Scott Raffa, 57, of Newport Beach, was arrested Saturday at Los Angeles International Airport. He is scheduled for arraignment this afternoon in United States District Court in Santa Ana. Raffa is charged with 12 counts of illegal remunerations for referrals to clinical treatment facilities.
According to the indictment that a grand jury returned on April 10, Raffa operated Orange County-based sober living homes, including Sober Partners Waterfront Recovery Center, Sober Partners Reef House, and Sober Partners Beach House. These facilities treated patient populations that received health care benefits through health insurers.
Raffa allegedly paid thousands of dollars per patient in illegal kickbacks to individuals who referred patients to his facilities, a practice known as “body brokering.” The body brokers in this case each controlled their own business entities and Raffa allegedly paid them kickbacks by depositing checks or wiring money to bank accounts that the brokers controlled. The kickbacks were intended as compensation for the brokers referring patients and to induce the brokers to continue to refer patients to Raffa’s facilities, the indictment alleges.
Raffa allegedly entered into sham contracts with certain body brokers that were designed to conceal the nature of the illicit payments, including by purportedly prohibiting payments from Raffa’s sober living homes based on “volume or value” of the body brokers’ patient referrals.
The brokers and Raffa allegedly met or would communicate via encrypted messaging services to calculate and negotiate the kickback amounts he owed the brokers for patient referrals. The kickback amounts allegedly were based on the insurance revenues that Raffa expected to receive for the respective patients, factoring in each patient’s insurance provider and the duration of the patient’s treatment at one of his sober living homes. Raffa refused to pay the kickbacks unless patients received at least 21 days’ treatment at one of his facilities, according to the indictment.
From April 2020 to October 2021, Raffa paid a total of $174,600 in illegal kickbacks to body brokers, the indictment alleges.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, Raffa would face a statutory maximum sentence of 10 years in federal prison for each count.
The FBI is investigating this matter.
Assistant United States Attorneys Benjamin R. Barron and Nandor Kiss of the Santa Ana Branch Office are prosecuting this case.
O.C. and Houston Men Sentenced to Decades in Prison for Supplying Fentanyl and Other Drugs Sold on Darknet and Causing Fatal ODsRead the Press Release
SANTA ANA, California – Two men, one from Orange County and the other from Texas, were sentenced today to lengthy prison terms for using the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills and other drugs to more than 1,000 customers across the country, causing several fatal overdoses in the process.
Michael Ta, 25, of Westminster, was sentenced to 260 months (21 years and eight months) in federal prison by United States District Judge David O. Carter. At a separate hearing today, Judge Carter sentenced Rajiv Srinivasan, 37, of Houston, to 235 months (19 years and seven months) in federal prison.
Ta pleaded guilty in August 2023 to one count of conspiracy to distribute controlled substances. Srinivasan pleaded guilty in June 2023 to the same charge and to one count of distributing fentanyl resulting in death.
Srinivasan operated the account “redlightlabs” on multiple darknet marketplaces, including the site “Dark0de.” Srinivasan and Ta used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs.
Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.
Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.
From at least February 2022 to November 2022, Srinivasan and Ta engaged in at least 3,800 drug deals to approximately 1,400 customers in all 50 U.S. states, totaling more than 123,000 fentanyl-laced M30 pills, more than 9 kilograms (20 pounds) of methamphetamine, nearly 300 grams of “China white” (fentanyl powder) and black tar heroin, and 27 grams of cocaine.
Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan.
Prosecutors wrote in a sentencing memorandum, “the five victims of defendants’ crimes ranged in age from 19 to 51. They lived across the country, from California to Florida, Colorado to Arkansas. Each of the five victims leaves behind a family that has been forever and fundamentally changed by defendants’ actions. [Ta and Srinivasan] also victimized countless others as part of an epidemic of addiction and despair plaguing our district and our country.”
In a related case, Omar Navia, 39, of South Los Angeles, pleaded guilty today to one count of conspiracy to distribute controlled substances. Navia admitted in his plea agreement that, from at least August 2021 to December 2022, he supplied fentanyl-laced pills and methamphetamine to Srinivasan and Ta’s customers. Navia faces a 10-year mandatory minimum prison sentence and a statutory maximum sentence of life imprisonment at his August 19 sentencing hearing.
Adan Ruiz, 27, of Garden Grove, a co-defendant in the Navia criminal case and an alleged co-conspirator with Srinivasan and Ta, has pleaded not guilty to one count of conspiracy to distribute controlled substances and one count of distribution of fentanyl. His trial is scheduled for September 24. Both Navia and Ruiz are in federal custody.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated this matter. The United States Postal Inspection Service, and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.
The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.
The Northern Colorado Drug Task Force (NCDTF) also helped investigate this matter. NCDTF works to protect the community by identifying, investigating, and impacting drug-related crime in Larimer County. Participating agencies who make this effort possible include Fort Collins Police Services, Larimer County Sheriff's Office, Loveland Police Department, Windsor Police Department, the Eighth Judicial District Attorney’s Office, and Colorado Adult Parole. The Drug Enforcement Administration’s Fayetteville Resident Agency also assisted during the investigation.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Newport Man Detained on Federal Charge of Child EnticementRead the Press Release
PROVIDENCE, RI – A Newport man who is alleged to have enticed a minor female to engage in illicit sexual activity and who was allegedly found to be in possession of child pornography has been ordered detained in federal custody, announced United States Attorney Zachary A. Cunha.
Kyle Patrick Tormey, 39, is charged by way of a federal criminal complaint with enticement of an individual less than eighteen years of age to engage in sexual activity, receipt of child pornography, and possession of child pornography. He was ordered detained at his initial appearance in U.S. District Court on Friday.
It is alleged in charging documents that Tormey repeatedly communicated with a minor female on various social media platforms, enticing the young girl to provide him with photographs of herself and to meet with him to engage in illicit sexual activity. It is alleged that at the end of a sexual encounter in Tormey’s van in late December 2023, he gave the minor victim $200 in cash.
It is further alleged that as a result of the execution of federal court-authorized search warrants, law enforcement discovered multiple images of the minor victim in various stages of undress stored in social media accounts belonging to Tormey; numerous communications with the girl that led up to the alleged sexual encounter; and multiple images of other minors that constituted child pornography.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
The matter was investigated by the FBI and West Warwick Police Department. United States Attorney Cunha thanks the Newport Police for their assistance during the investigation and arrest of the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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New Orleans Man Sentenced for Violating Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS - TYRONE SMOTHERS, age 42, of New Orleans, was sentenced on April 25, 2024 to 102 months imprisonment, followed by three (3) years of supervised release, and a $300 mandatory special assessment fee, by U.S. District Judge Eldon E. Fallon, after previously pleading guilty to possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, SMOTHERS was previously convicted of felony offenses in Orleans Parish. Due to his criminal history, he was prohibited from having a firearm. In the indictment against him, SMOTHERS was charged with illegally possessing multiple firearms, possessing fentanyl, cocaine, methamphetamine, and marijuana with the intent to distribute and, possessing firearms in furtherance of drug distribution.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney James Ollinger of the Violent Crime Unit.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – NOEL CHENEAU, age 56, a resident of New Orleans, was sentenced on April 25, 2024 by U.S. District Judge Barry W. Ashe for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, the Drug Enforcement Agency and Federal Bureau of Investigation conducted government authorized wire intercepts targeting individuals who transported large quantities of narcotics from Houston, Texas to New Orleans. After learning that another individual discussed supplying CHENEAU with heroin, federal agents contacted CHENEAU. CHENEAU then admitted that the discussions heard on intercepted calls involved drug trafficking and that CHENEAU’s drug trafficking activity involved more than 100 grams of heroin.
As part of CHENEAU’s guilty plea, CHENEAU also admitted to a prior federal drug trafficking conviction from the United States District Court for the Southern District of Texas, for conspiracy to distribute 500 grams or more of cocaine, a violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B) and 846. The prior conviction increased the penalties against CHENEAU pursuant to recidivist enhancement provisions of federal law.
Judge Ashe sentenced CHENEAU to 120 months imprisonment, the mandatory minimum, to be followed by eight years of supervised release. Judge Ashe also ordered CHENEAU to pay a mandatory special assessment fee of $100.
The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel.
Nevada Man Arrested and Indicted After Allegedly Stealing over $7M Worth of Treasury ChecksRead the Press Release
St. George, Utah – An indictment was unsealed today following the arrest of a Nevada man who was indicted earlier this month by a federal grand jury for multiple federal crimes, including bank fraud.
According to court documents, Kyle Eugene Duncan-Carle, 40, of Las Vegas, Nevada carried out a scheme to defraud multiple credit unions from January 2023 through September 2023 in the District of Utah. Duncan-Carle conducted the scheme by obtaining stolen U.S. Treasury checks made out to individuals and companies, assuming the identity of the individuals whose names were on the checks, opening credit union accounts under the assumed identities, and then depositing the checks and withdrawing the funds. The scheme resulted in Duncan-Carle obtaining at least six stolen treasury checks that totaled $7,075,695.55. This included an incident in April 2023 when Duncan-Carle assumed a victim’s identity, opened an American First Credit Union account under the victim’s name, and deposited a stolen tax-refund check for $821,333 made out to the victim. Duncan-Carle was arrested over the weekend in Lyon County, Nevada.
Duncan-Carle is charged with bank fraud, aggravated identity theft, and receipt of stolen government property. Because Duncan-Carle was arrested in Nevada, his initial court appearance on the indictment will take place at a United States District Courthouse in Nevada.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by the Internal Revenue Service, Criminal Investigations (IRS-CI); the Internal Revenue Service Treasury Inspector General for Tax Administration (TIGTA); and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Stephen P. Dent and Luisa Gough of the U.S. Attorney’s Office for the District of Utah 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.Mission Man Sentenced for Commission of a Crime of Violence while Failing to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender; Assaulting, Resisting, and Impeding a Federal Officer with a Dangerous Weapon; and Commission of a Crime of Violence while Failing to Register as a Sex Offender. The sentencing took place on April 24, 2024.
Louis Andrew Rabbitt, Jr., age 42, was sentenced to six years and five months in federal prison, followed by five years of supervised release, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Rabbitt was indicted by a federal grand jury in October and December of 2023. He was convicted of all counts on January 25, 2024, following a three-day jury trial in federal district court in Pierre, South Dakota.
According to evidence presented at trial, Rabbitt failed to update his sex offender registration after moving from his registered address in July of 2023. Rabbitt had continued to fail to update his sex offender registration when the U.S. Marshals Service arrived to arrest Rabbitt pursuant to an arrest warrant on September 20, 2023. In an effort to avoid arrest, Rabbitt threatened Deputy U.S. Marshals with a baseball bat before being apprehended.
This case was investigated by the U.S. Marshals Service with the assistance of the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Wayne Venhuizen and Meghan Dilges 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Rabbitt was immediately remanded to the custody of the U.S. Marshals Service.