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Monday 18 March 2024
Las Vegas Man Sentenced to Eight Years in Prison for Money Laundering and Importing, Processing, and Distributing OpioidsRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced Friday by United States District Judge Andrew P. Gordon to eight years in prison followed by three years of supervised release for importing, processing, and distributing nearly 300 pounds of Tapentadol (a Schedule II opioid) across the United States, and laundering drug sale proceeds using shell companies.
According to court documents, Christopher S. Housley, 51, used fraudulent identifications to rent postal boxes at several UPS stores in Las Vegas. In January 2021, law enforcement seized parcels containing Carisoprodol, Tadalafil, and Sildenafil inbound from India and addressed to addresses associated with Housley. In total, law enforcement seized nearly 300,000 Tapentadol pills weighing more than 300 pounds.
In July 2021, Housley and a co-conspirator obtained a large industrial pill press; and in October 2021, Housley sought to obtain a Hello Kitty die used to press pills with that logo. After importing and processing the drugs, Housley would distribute them throughout the country.
Furthermore, Housley created two shell companies to aid in paying for the drugs and receiving payments for the drug sales. Between September 2020 and October 2021, the shell companies wired a total of about $116,000 to accounts in India, China, and Singapore. Between July 2021 and January 2022, deposits into those accounts were about $350,000.
On May 3, 2022, law enforcement executed a search warrant at a storage unit rented by Housley under a fake name. The storage unit contained Tapentadol, Alprazolam, and other controlled substances.
Tapentadol, Alprazolam, and other controlled substances seized by law enforcement from a storage locker rented by Housley
Housley pleaded guilty to one-count of possession with intent to distribute a controlled substance, Tapentadol and 20-counts of money laundering.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the DEA Las Vegas District Office made the announcement.
The case was investigated by the DEA and the U.S. Customs and Border Protection. An Assistant United States Attorney in the District of Nevada prosecuted the case.
If you are aware of controlled substance violations in your community — which may include the growing, manufacture, distribution or trafficking of controlled substances — please submit your anonymous tip through the DEA Tip Line at https://www.dea.gov/submit-tip.
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Lafourche Parish Man Sentenced for Possession with Intent to Distribute Methamphetamine, Heroin, and Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that TRE AUTHEMENT age 25 and a resident of Lafourche Parish, was sentenced on March 13, 2024 to 200 months in prison by United States District Judge Ivan L.R. Lemelle, after previously pleading guilty to possession with the intent to distribute 500 grams or more of methamphetamine and quantities of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A) and possessing a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c).
This case was part of Project Safe Neighborhoods (PSN), which is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the United States Drug Enforcement Administration, the Lafourche Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, the Terrebonne Parish Sheriff’s Office, and the Louisiana State Police. It was prosecuted by Assistant United States Attorney Maurice Landrieu of the Narcotics Unit.
Kokomo Woman Sentenced to 21 Months in Federal Prison for Embezzling over $400,000 from EmployerRead the Press Release
INDIANAPOLIS- Bethany Olmsted, 43, of Kokomo, Indiana, has been sentenced to 21 months in federal prison after pleading guilty to five counts of wire fraud.
According to court documents, on or about November 29, 2017, Olmsted was hired as controller for Company A, a private business, and five other investment companies partially owned by Company A’s owner. As these companies’ controller, Olmsted managed the bookkeeping, tax reporting, accounts payable, accounts receivable, and day-to-day finances for each business. Olmsted’s duties included tracking and categorizing all the companies’ receipts and spending using accounting software. She also had the authority to write company checks to pay legitimate business expenses.
Starting on November 29, 2018, Olmsted began writing checks from the investment companies’ bank accounts to herself and depositing them into her personal bank account. To conceal her thefts, Olmsted falsely categorized these payments to herself as payments to legitimate businesses or vendors such as for “Mowing & Landscaping.” Similarly, she categorized checks written to herself as payments to “Fortune Companies Inc.” for “Repairs & Maintenance.” In addition, she transferred money from Company A’s bank account to the other companies’ bank accounts to hide the thefts. When confronted by company officials about the theft of company funds, Olmsted repeatedly lied about the extent of the thefts and her efforts to avoid detection by altering the companies’ books.
Between November 2018 and September 2021, Olmsted fraudulently wrote approximately 520 checks from the companies to herself, stealing $413,531. Olmsted used the stolen funds to purchase spa treatments, jewelry, clothes, and dinners at high-end steakhouses.
“For almost three years, this defendant repaid the trust of her employers with deceit and theft, helping herself to nearly half a million dollars and cooking the books to hide the evidence,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Fraud and embezzlement can have devastating effects on the victim individuals and companies. The federal prison sentence imposed here demonstrates that those who commit financial crimes will pay a serious price. I commend the U.S. Postal Inspection Service and our federal prosecutor for their efforts to investigate these crimes and hold the defendant accountable.”
“I am proud of our postal inspectors’ abilities to identify and untangle intricate fraud schemes, and grateful to our partners at the United States Attorney’s Office for their work in bringing justice to individuals who take advantage of their positions of trust for financial gain,” said Rodney M. Hopkins, Inspector in Charge for the Detroit Division of the United States Postal Inspection Service.
The U.S. Postal Inspection Service investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney II. Judge Sweeney also ordered that Olmsted be supervised by the U.S. Probation Office for 2 years following her release from federal prison and pay $413,531.98 in restitution to the victim businesses.
U.S. Attorney Myers thanked Assistant United States Attorney Adam Eakman, who prosecuted this case.
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Kansas car dealer indicted for rolling back odometersRead the Press Release
WICHITA, KAN.– A federal grand jury in Wichita returned an indictment charging a Kansas businessman with 27 counts of criminal misconduct connected to altering vehicle odometers.
According to court documents, Adam Newbrey, 31, of Derby operated three used car dealerships in Wichita including Ideal Motors, Midwest Wholesale, and Prestige Motors.
In 2020 and 2021, Newbrey allegedly purchased used vehicles in Kansas and Oklahoma, altered the odometers, and then used fraudulent documents to obtain titles from the Kansas Department of Revenue reflecting the falsified odometer readings. He is also accused of using the titles with the mispresented mileage to defraud customers who purchased vehicles.
Newbrey is charged with:
• one count of conspiracy to commit odometer fraud,
• nine counts of odometer tampering,
• seven counts of mail fraud,
• nine counts of aggravated identity theft, and
• one count of wire fraud.The defendant made his initial court appearance March 15, 2024, before U.S. Magistrate Judge Brooks Severson of the U.S. District Court for the District of Kansas.
The Kansas Department of Revenue – Office of Special Investigations and the U.S. Department of Transportation, National Highway Traffic Safety Administration - Office of Odometer Fraud Investigation are investigating the case.
Assistant U.S. Attorney Deb Barnett is 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.
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KC Woman Pleads Guilty to Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman pleaded guilty in federal court today to possessing large quantities of methamphetamine to distribute following the seizure of 700 kilograms of methamphetamine that was hidden in a box trailer and disguised as spray foam insulation.
Nora Linda Ochoa-Chavez, 44, a citizen of Mexico, pleaded guilty today before U.S. District Judge Howard F. Sachs to one count of aiding and abetting the possession of methamphetamine with the intent to distribute.
Co-defendant Rafael Valencia-Galaviz, 43, also a citizen of Mexico residing at the same residence, pleaded guilty on May 24, 2023, to the same charge. Valencia-Galaviz also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Special agents from Homeland Security Investigations contacted the co-defendants at their residence on Oct. 20, 2021, following the large seizure of methamphetamine that was identified at a Laredo, Texas, port of entry and subsequently seized in Kansas City, Kan. Valencia-Galaviz was renting a room with his girlfriend in Ochoa-Chavez’s residence.
Federal agents located Valencia-Galaviz in a bedroom, where they found a Smith & Wesson .40-caliber firearm under a mattress, two vacuum-sealed packages that contained nearly a kilogram of marijuana, and a backpack that contained an undetermined amount of cash. HSI agents also found a Remington .22-caliber rifle with no visible serial number and a Springfield Armory 9mm firearm in the upstairs loft area.
Agents also searched Ochoa-Chavez’s Dodge Caravan, which was parked in the rear of her residence. They found a total of 68 gallon-sized zipper style bags that contained a total of 66.8 kilograms of methamphetamine. Agents also found a Taurus .380-caliber firearm, a US Auto Weapons 5.56-caliber rifle with a loaded 60-round drum magazine, two Anderson Manufacturing AM-15 rifles, a Heckler and Koch .22-caliber rifle, and an Intratec 9mm handgun.
Valencia-Galaviz told investigators he picked up 50 kilograms of methamphetamine two or three days prior to his arrest, and there were approximately 18 kilograms in the van that were left over from an 80-kilogram load he had picked up approximately two to three weeks prior to his arrest.
Prior to this search and arrest, on July 12, 2021, investigators established surveillance on a tractor trailer parked at a truck stop in Olathe, Kansas. Ochoa-Chavez met with the driver of the tractor trailer and handed him a brown paper bag that contained $30,000 in cash. When agents seized the tractor trailer and searched it, they found approximately 700 kilograms of methamphetamine that was hidden within and disguised as spray foam insulation for the box trailer.
Under federal statutes, Ochoa-Chavez is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. Valencia-Galaviz is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by Homeland Security Investigations.
Justice Department and Federal Trade Commission to Cohost the Third Annual Spring Enforcers SummitRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) will cohost the third annual Spring Enforcers Summit on Monday, April 8.
Assistant Attorney General Jonathan Kanter of the Antitrust Division and FTC Chair Lina M. Khan, as well as senior staff from both agencies, will gather with international competition enforcers and state attorneys general to discuss enforcement priorities and strategies for effective coordination.
The morning plenary sessions will be livestreamed to the public on the FTC’s website. The agencies will meet in the afternoon for closed-door in-person discussions between international enforcers and state attorneys general on common issues.
The Enforcers Summit agenda will be posted to the Antitrust Division’s website prior to the event. A link to view the summit’s open virtual session will be posted to the FTC’s website the day of the event.
Justice Department Finds University Failed to Address Allegations of Sexual Abuse of Student Athletes in MarylandRead the Press Release
The Justice Department announced today the results of its investigation into allegations that a former head coach of the Swimming and Diving Team at the University of Maryland, Baltimore County (UMBC) sexually harassed male student-athletes and discriminated against female student-athletes. The department notified UMBC that its failure to respond to known allegations of sex discrimination violated Title IX of the Education Amendments of 1972 (Title IX) and that UMBC’s failures allowed the former head coach to exploit his power over student-athletes, prey on student-athletes’ vulnerabilities and engage in egregious and ongoing abuse spanning many years.
“We will not tolerate sexual harassment and abuse of student-athletes on college campuses in our country. Too many school officials and administrators knew something for UMBC to have done nothing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold our nation’s colleges and universities to their promise to educate students free from sexual harassment and discrimination — our young people deserve nothing less. We will continue to stand with the survivors of sexual harassment and ensure that schools take actions necessary to protect students from this kind of degrading and painful discrimination and abuse.”
Among other things, the department’s investigation found that, as early as 2015 and continuing through 2020, UMBC was on notice of and failed to respond adequately to allegations that the former head coach filmed students while showering and sexually touched male student-athletes on the pool deck, in the locker room and in the bathroom of the university’s aquatic center.
The department also found that, from 2016 through 2020, the Athletics Department failed to report several incidents of dating violence by male student-athletes against female teammates. Athletics staff and male swimming and diving teammates also made degrading comments about female student-athletes’ bodies and the head coach asked invasive questions about their sexual relationships.
Attorneys from the Justice Department's Civil Rights Division’s Educational Opportunities Section and an Assistant U.S. Attorney for the District of Maryland conducted the investigation, with UMBC’s full cooperation.
Individuals with information related to the department’s findings are encouraged to contact the Justice Department at [email protected].
The enforcement of Title IX, which prohibits sex discrimination in education programs and activities operated by recipients of federal financial assistance, is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report/.
Justice Department Commemorates National Public Defense DayRead the Press Release
To commemorate National Public Defense Day, the Justice Department’s Office for Access to Justice (ATJ) announced the launch of the Public Defense Resource Hub (PD Hub), a one-stop shop with comprehensive resources and materials to support individuals and organizations involved in public defense. The PD Hub will collect existing resources for professionals providing public defense services, public defense commissions, and related organizations from across the federal government and develop additional tools to help defenders access necessary resources, research, and guidance to support the constitutional right to counsel.
“Every day, in courts across America, the promise of the Sixth Amendment is made real through the dedication and commitment of public defenders,” said Attorney General Merrick B. Garland. “The Justice Department is proud to stand with the public defenders and criminal defense attorneys who work to carry out the foundational principle, reaffirmed 61 years ago today in Gideon v. Wainwright, that the law protects all of us – the poor as well as the rich, the powerless as well as the powerful.”
“Last year, I was proud to join the Office for Access to Justice in Florida to announce the Justice Department’s National Public Defense Day Tour,” said Deputy Attorney General Lisa Monaco. “This year, by launching the new Public Defense Resource Hub, we take another important step to support the critical work of public defenders nationwide.”
“The Justice Department is committed to supporting modern public defense systems that address the urgent criminal and civil legal needs in communities across the country,” said Acting Associate Attorney General Benjamin C. Mizer. “On National Public Defense Day, we renew this commitment by establishing a Public Defense Resource Hub that will simplify access to federal government resources to strengthen public defense.”
The Public Defense Resource Hub offers numerous benefits and introduces a novel approach to supporting public defense from the Department:
- Centralized Access: By consolidating all funding information, toolkits, research, advocacy resources, and other relevant materials, the PD Hub provides a one-stop destination for resources to support individuals and organizations involved in public defense.
- Efficiency: Users can explore a wide range of resources without needing to navigate multiple websites or sources, saving time and effort in finding pertinent information.
- Increased Resources: The PD Hub will encourage increased resources to support public defense and will empower public defenders with tools to strengthen advocacy efforts, thereby improving the quality of multidisciplinary public defense
- Transparency: Hosting funding information on the PD Hub promotes transparency in resource allocation for public defense, ensuring that criminal justice stakeholders are aware of available funding opportunities and committed to support equitable distribution.
- Collaboration and Innovation: The PD Hub will foster collaboration and innovation among public defenders, policymakers, researchers, and impacted communities.
“Providing public defenders with the tools, resources, and support they need to fulfill their critical mission makes our justice system fairer, more equal, and more just,” said ATJ Director Rachel Rossi. “The Public Defense Resource Hub is an innovative first-of-its kind resource to assist public defenders, state, local, and Tribal policymakers, and related professionals to provide the highest quality multidisciplinary legal representation to historically underserved and marginalized communities.”
The Public Defense Resource Hub was developed in response to feedback and engagement during the National Public Defense Day Tour and National Law School Tour in commemoration of the 60th anniversary of Gideon v. Wainwright last year, and direct engagements with public defenders, defender commissions, Tribal defenders, and law schools across the country. These included visits with public defense leaders, law students, impacted communities and other justice system stakeholders in Miami, Florida; Tulsa, Oklahoma; the Muscogee (Creek) Nation; Las Vegas; Nashville, Tennessee; Des Moines, Iowa; Concord, New Hampshire; Portland, Maine; Missoula, Montana; Seattle, Washington; and Dallas.
On March 21, the office will conclude its National Law School Tour with a final stop at Atlanta’s John Marshall Law School, where Director Rossi will announce the launch of the Public Defense Resource Hub and speak to law students about the nation’s critical need for public defenders and the future of public defense.
Jury Convicts Riverview Man for COVID Relief FraudRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that a federal jury has found Alexander Alli (39, Riverview) guilty of conspiracy to commit wire fraud and two counts of wire fraud. Alli faces a maximum penalty of 20 years in federal prison on each count. His sentencing hearing is scheduled for June 10, 2024. Alli was indicted on January 18, 2023.
According to testimony and evidence presented at trial, Alli submitted a fraudulent Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA). Alli falsely represented that he had a business suffering injury due to the effects of the Covid-19 pandemic and the EIDL funds would be used only for business-related purposes. Alli’s business, however, had ceased operations prior to the start of the pandemic and was no longer operational at the time his EIDL application was submitted. Alli’s false and fraudulent representations caused the SBA to approve and fund a total of $82,500 in EIDL funds, which he spent on non-business-related purposes.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
This case was investigated by Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Jennifer Peresie and Merrilyn Hoenemeyer.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Johnson City Man Sentenced to Two Years for Aggravated Identity Theft Related to Defrauding COVID-19 Economic Relief ProgramRead the Press Release
GREENEVILLE, Tenn. – On March 18, 2024, Ketan Ghutadaria, 53, of Johnson City, Tennessee was sentenced to 24 months in prison by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his release from imprisonment, Ghutadaria will be on supervised release for one year, and he will be required to pay restitution in the amount of $100,300.
As part of a plea agreement filed with the court, Ghutadaria agreed to plead guilty to Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a)(1), in connection with a scheme to defraud the Economic Injury Disaster Loan (“EIDL”) program, a federal program authorized to provide loans to small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
As set forth in the filed plea agreement, on March 31, 2020, Ghutadaria submitted an electronic application to the Small Business Administration (“SBA”) requesting an EIDL on behalf of a local trucking company. Ghutadaria used the business owner’s personal identification information to apply for the EIDL without the business owner’s knowledge or authority. The SBA approved the EIDL application based on the fraudulent information provided by Ghutadaria. On June 16, 2020, the SBA transferred $100,300 in EIDL funds into a bank account that Ghutadaria had access to. Between June 16, 2020, and September 2020, Ghutadaria spent approximately all the EIDL funds to pay off student loans, to pay off a motor vehicle loan, and on other personal items.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and United States Secret Service (“USSS”) Resident Agent in Charge, Jason Brown, made the announcement.
The case was investigated by Special Agent Thomas Whitehead of the USSS.
Assistant United States Attorneys Mac Heavener and Ryan Blackwell represented the United States.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Illegal sale of monkey over Craigslist sends Houston woman to prisonRead the Press Release
HOUSTON – A 21-year-old woman has been sentenced for selling wildlife, including a spider monkey, in violation of the Lacey Act, announced U.S. Attorney Alamdar S. Hamdani.
Savannah Nicole Valdez pleaded guilty Feb. 8, 2023.
U.S. District Judge Andrew S. Hanen has now ordered Valdez to serve 15 months in federal prison to be immediately followed by three years of supervised release. The court considered that Valdez was previously sentenced to two years of supervised release for smuggling a monkey into the United States and high-speed flight from an immigration checkpoint. The court revoked her supervised release in that case, and she received another month to run consecutively with this prison term.
“When Savannah Valdez sold a Mexican spider monkey, she contributed to endangering a species,” said Hamdani. “As the court heard today, those who traffic in infant spider monkeys shoot the mothers first and then pull the infants from their mother’s dead bodies before throwing them into cages for transport. Valdez’s actions helped sustain an illicit market that encouraged the needless death and suffering of endangered animals. Thankfully, now she will have to spend time in a cage of her making - a prison cell.”
In summer 2023, authorities discovered several advertisements posted to Craigslist offering exotic birds for sale including keel-billed toucans and yellow-headed amazon parrots. These are federally protected under the Endangered Species Act.
Law enforcement identified the personal cell phone number of Valdez during the initial investigation. They found the contact number listed for the animals was, in fact, the same.
The subsequent undercover operation involved the sale of two keel-billed toucans and a Mexican spider monkey.
On July 28, 2023, her mother arrived at Memorial City Mall in Houston to deliver the toucans and accepted $3,000 as payment. Her mother would later admit her daughter had arranged the sale.
On Aug. 1, 2023, Valdez then coordinated the sale of a Mexican spider monkey for $8,500. She had her sister deliver it on her behalf.
The animals have been transferred to zoos within Texas.
Valdez as permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility in the near future.
The Fish and Wildlife Service conducted the investigation with the assistance of Homeland Security Investigations and the Department of Agriculture - Office of Inspector General. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Aaron Zachary Slash, 23, of Huntington, was sentenced today to three years and five months in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin.
According to court documents and statements made in court, on September 5, 2023, law enforcement officers conducted a traffic stop of a vehicle driven by Slash on the 700 block of Sixth Avenue in Huntington. Officers searched the vehicle and found approximately 92 grams of heroin, a loaded Glock 17 9mm pistol and approximately $1,717 in the vehicle. Slash admitted that he possessed the seized heroin and intended to distribute it. Slash further admitted that the cash was proceeds from selling heroin.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney L. Finney and Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-173.
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Huntington Man Sentenced to More than 12 Years in Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Christopher D. Spaulding, also known as “Casino,” 32, of Huntington, was sentenced today to 12 years and six months in prison, to be followed by three years of supervised release, for distribution of fentanyl. Spaulding admitted to providing controlled substances containing fentanyl to two individuals who overdosed, one of them fatally.
According to court documents and statements made in court, on March 4, 2019, Spaulding was at an Eighth Street bar in Huntington when two individuals, a man and a woman, approached him and asked if he had cocaine for sale. Spaulding accompanied the individuals from the bar to the woman’s vehicle parked outside. Spaulding admitted that while in the vehicle, he distributed a substance containing cocaine and fentanyl to both individuals.
Spaulding further admitted that shortly after the woman nasally inhaled the substance, she began to exhibit signs of an overdose. Spaulding moved her from the driver’s seat of her vehicle to the passenger seat, and drove her vehicle to multiple locations to meet his friends while the woman was overdosing inside the vehicle.
Hours after leaving the bar, Spaulding drove the woman to Cabell Huntington Hospital in her vehicle. She was not responsive or breathing when they reached the hospital, and hospital staff physically removed her from the vehicle. The woman was later pronounced dead by medical staff.
After leaving the woman at the hospital, Spaulding drove her vehicle into Ohio where he dropped off his friends at a hotel. Spauling eventually left the vehicle in Guyandotte, Ohio, placing its keys in the glove compartment.
Spaulding admitted that he later learned that the man he had distributed the controlled substance to that evening had also exhibited signs of an overdose after nasally inhaling the substance. The man received naloxone from Cabell County Emergency Medical Services. He was transported to Cabell Huntington Hospital where he recovered.
Toxicology testing confirmed that the substance distributed by Spaulding to both individuals contained fentanyl and cocaine. Spaulding admitted that the cause of death of the woman was due to alcohol, fentanyl and cocaine intoxication. Spaulding further admitted that she would not have died but for the fentanyl he distributed to her.
Spaulding has a long criminal history that includes 10 prior convictions. At the time of this offense, Spaulding was on parole following his conviction for attempt to commit a felony in Cabell County Circuit Court on June 9, 2017.
“Mr. Spaulding engaged in an inherently dangerous activity at a time when our communities continue to face an opioid epidemic and the devastating loss of life from overdoses,” said United States Attorney Will Thompson. “The defendant not only caused a death by distributing fentanyl, but possibly could have prevented that death had he not failed to obtain professional medical treatment when he became aware the woman was overdosing.”
Thompson made the announcement and commended the investigative work of the Huntington Police Department and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Finney and Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-18.
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Honduran National Sentenced to 14 Months Imprisonment for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that HUGO BRIAN FUENTAS-EGUIGURENS (“FUENTAS-EGUIGURENS”), age 27, was sentenced on March 12, 2024 by United States District Judge Darrel James Papillion to 14 months imprisonment, after previously pleading guilty to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a). Additionally, the court sentenced FUENTAS-EGUIGURENS to 1 year of supervised release and the payment of a mandatory $100 special assessment fee.
According to court documents, FUENTAS-EGUIGURENS reentered the United States after being previously deported on April 26, 2019. On or about April 1, 2023, FUENTES-EGUIGURENS, was found to be unlawfully present in Jefferson Parish, Louisiana based on an Immigration Alien Query. Federal authorities placed an immigration detainer on FUENTES-EGUIGURENS after his arrest by the Jefferson Parish Sheriff’s Office on March 31, 2023. Records revealed that FUENTES-EGUIGURENS has been arrested for numerous crimes, and had convictions for simple escape, and resisting an officer.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Re-Entry of Removed Alien and Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that ALAN RONEY MATUTE-MENDOZA, a/k/a “Allan M. Matute,” a/k/a “Alan Mendoza,” a/k/a “Jonathan Ramos Mendoza,” age 37, a native of Honduras, pled guilty on March 12, 2024 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), and illegal use of a Social Security Number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court records, MATUTE-MENDOZA reentered the United States after being previously deported on June 19, 2017. For this offense, MATUTE-MENDOZA faces up to two years imprisonment, a fine of up to $250,000, up to one year of supervised release, and payment of a mandatory $100 special assessment fee. Additionally, on or about June 25, 2021, MATUTE-MENDOZA was found to be illegally using a social security number that was not his. For this offense, MATUTE-MENDOZA faces up to five (5) years imprisonment, a fine of up to $250,000.00, up to three years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and the Office of the Inspector General for the Social Security Administration in investigating this matter. Assistant U.S. Attorney Mary Katherine Kaufman of the General Crimes Unit is in charge of the prosecution.
Harrison Township Pilot Sentenced to 2 Years in Prison for Assaulting Girl During Flying LessonRead the Press Release
DETROIT – A Harrison Township resident was sentenced to 24 months in federal prison for abusive sexual contact with a child, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.
Rex Phelps, 72, of Harrison Township, pleaded guilty on October 26, 2023 to Abusive Sexual Contact of a Child before United States District Judge Stephen J. Murphy, III, who also sentenced Phelps to 24 months in prison, the maximum sentence permitted by law.
While providing flying lessons to a 15-year-old girl, Phelps groomed and inappropriately touched the victim on several occasions. Phelps also exchanged text messages, including one with a picture of a man and a woman lying on a bed kissing. Phelps commented on the picture, “Shortly after the shower … without that top. Maybe more.” Phelps’s abuse of the minor was only uncovered after he mistakenly sent this text message exchange to an unintended recipient, and that recipient contacted police.
“This sentence reaffirms our office’s commitment to protecting the most innocent and vulnerable members of our community – children,” U.S. Attorney Ison said. “This defendant violated the trust that so many had placed in him, including the victim’s parents.”
“Teachers and instructors are supposed to protect our youth while they progress in their learning environments, and it is utterly shameful that this individual took advantage of this young girl,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and its partners remain committed to holding these criminals accountable for exploiting the innocent.”
This case was investigated by special agents of the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorney Tara Hindelang.
Hardy County Man Sentenced to 16 Years for Federal Drug and Firearms ChargesRead the Press Release
ELKINS, WEST VIRGINIA – William Albert Flinn, Jr., age 45, of Moorefield West Virginia, was sentenced today to 195 months in federal prison for methamphetamine and firearms charges.
Flinn pled guilty in August 2023 to possession with intent to distribute more than 50 grams of methamphetamine and possession of a firearm in furtherance of a drug crime. According to court documents and statements made in court, during a methamphetamine sale in Hardy County, Flinn showed the buyer an assault rifle. Investigators then executed a search warrant at Flinn’s home and found 383 grams of meth, the assault rifle, and cash.
Flinn will report for 5 years of supervised release following his prison sentence.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
Chief U.S. District Judge Thomas S. Kleeh presided.
Four Men Sentenced for $18M Global Investment Fraud SchemeRead the Press Release
Four men were sentenced last week for participating in an eight-year investment fraud and money laundering scheme that defrauded over a dozen victims around the world out of more than $18 million.
John C. Nock, 55, of Fayetteville, Arkansas, founder of The Brittingham Group, was sentenced on March 14 to 20 years and 10 months in prison; Brian Brittsan, 67, of Boise, Idaho, was sentenced on March 14 to 10 years in prison; Kevin Griffith, 68, of Orem, Utah, was sentenced on March 15 to 12 years and six months in prison; and Alexander Ituma, 57, of Lehi, Utah, was sentenced on March 15 to eight years and four months in prison.
“For nearly a decade, the defendants brazenly and repeatedly lied to investors, defrauding them out of more than $18 million and laundering the proceeds of their crime through a complex web of bank accounts around the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants have now been held to account for their crimes. The sentences imposed last week reflect the Justice Department’s commitment to rooting out investment fraud and protecting Americans’ financial security.”
According to court documents and the evidence presented at trial, between at least 2013 and 2021, Nock, Brittsan, Griffith, and Ituma conspired to engage in an investment fraud scheme through The Brittingham Group, a purported investment firm that claimed to have access to exclusive investment opportunities, including deals involving the monetization of foreign bank guarantees. Together, the four defendants falsely represented the nature of their investment offerings and made guarantees to victims regarding the safety and security of their funds. The defendants also promised victims outsized returns, to be paid in a short period of time, which the defendants could not and did not ever produce. To promote and conceal the conspiracy, Nock and Brittsan directed victims to send their money to bank accounts that Griffith, Ituma, and other co-conspirators controlled, and created fake documents to send to victims to make the investment appear legitimate and to be progressing. Once the money was in the hands of the co-conspirators, the defendants transferred victim money through a complex web of worldwide bank accounts.
“For years, the defendants’ blatant and egregious investment fraud scheme used false promises to bilk investors out of millions of dollars of their hard-earned money,” said Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office. “IRS-CI is proud of their joint efforts with the Justice Department and the FBI to hold Nock, Brittsan, Griffith, and Ituma accountable for their greed. The women and men of IRS-CI will continue to band together with their law enforcement partners to pursue those who commit financial crimes and steal from trusting individuals.”
“The victims in this case were promised lucrative investment opportunities, but what they got was a conspiracy of lies and fraud,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “These defendants stole more than $18 million from over a dozen victims through a years-long fraud scheme, and the sentences they received last week will help hold them accountable for their crimes.”
In August 2023, the defendants were convicted of conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to commit money laundering. Nock was also convicted of money laundering for using victim funds to pay a prior debt unrelated to The Brittingham Group.
IRS-CI and the FBI investigated the case. The U.S. Attorney’s Office for the Western District of Arkansas provided invaluable assistance.
Trial Attorneys Philip Trout, Vasanth Sridharan, and Sara A. Hallmark of the Criminal Division’s Fraud Section prosecuted the case.
Former energy company president convicted in $5.5M illegal kickback conspiracy and commodities insider trading schemeRead the Press Release
HOUSTON - The former president of a Texas energy company has pleaded guilty to an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
Matthew Clark, 56, Needville, entered his plea March 15, admitting he conspired with others to direct his employer’s trades to Classic Energy LLC in exchange for illegal kickbacks. Specifically, Clark accepted more than $5.5 million in illegal kickbacks, which were generated from commission fees his employer paid to Classic Energy. Classic Energy is a brokerage firm Matthew Webb, 54, Tiki Island, owned and operated.
“Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives and his employer’s proprietary insider information,” said U.S. Attorney Alamdar S. Hamdani. “The natural gas futures contract market is an integral part of Houston’s economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those contracts not engage in illegal and unfair practices. That’s why my office is committed to holding those accountable, like Clark, who use kickbacks and inside information to enrich themselves at the expense of the public’s trust in the U.S. markets.”
“Matthew Clark steered his company’s commodities trading business to a broker in exchange for over $5.5 million in illegal kickbacks. He also misappropriated confidential information about his company’s planned commodities trades and used that information to enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company—they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.”
Clark also misappropriated his employer’s material nonpublic information and engaged in prohibited commodities transactions. Webb, through Classic Energy, brokered Clark’s natural gas futures trades with counterparties who were identified in advance of executing the trades. The predetermined counterparties included John Ed James, 54, Katy, and Peter Miller, 49, Puerto Rico. Clark, Webb, James and Miller then shared the net profits generated from these illegal prearranged trades.
“The FBI and its partners will continue to relentlessly pursue those who engage in illegal kickback schemes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This plea should make it known to others that participate in illicit activity that threatens the integrity of our financial systems that there are consequences to your actions.”
Clark pleaded guilty to one count of conspiracy to commit honest services wire fraud, one count of prohibited commodities transaction and one count of commodities insider trading. He is scheduled to be sentenced June 24 and faces a maximum penalty of 20 years in prison for the honest services wire fraud conspiracy count and 10 years in prison on each of the prohibited commodities transaction and insider trading counts.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act, while James admitted in February 2021 to conspiracy to commit commodities fraud and wire fraud. Miller entered his plea in February 2022 to conspiracy to commit commodities fraud. Miller is set for sentencing June 20, while Webb and James are scheduled for July 1.
In two other related cases, Marcus Schultz, 44, Houston, and Lee Tippett, 64, of Jacksonville, Florida, were convicted in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act. Tippett entered his plea to conspiracy to commit commodities fraud and honest services wire fraud and was sentenced to 33 months in prison.
The FBI conducted the investigation.
Assistant U.S. Attorney Grace Murphy is prosecuting the case along with Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section.
Former Tennessee County Corrections Officer Sentenced for Obstructing Federal Civil Rights Investigation into Allegations of Sexual Misconduct with an InmateRead the Press Release
A former corrections officer with the Maury County, Tennessee, Jail, James Stewart Justice, was sentenced on Friday to 15 months in prison and one year of supervised release. A federal jury previously convicted Justice of falsifying a record in a federal civil rights investigation for a report he wrote in response to allegations that he had sexually abused an inmate in his custody.
“This defendant abused his authority as a corrections officer to cover up allegations of sexual misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Law enforcement officers who oversee our jails and prisons have a responsibility to protect people in their custody. Officers must treat allegations of sexual misconduct seriously and document them carefully. We will continue holding officers accountable when they abuse their position of power to cover up their unlawful conduct.”
“Corrections officers are entrusted with immense power over the inmates in their care. The vast majority of them carry out their important jobs with honor and integrity,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “This prosecution, and the sentence imposed last week, however, should serve as a reminder that we will not hesitate to hold corrections officers accountable when they violate the law and the public trust.”
“This sentence is the result of relentless efforts by the FBI to bring to justice corrections personnel who abuse their position of trust,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office. “The FBI will continue to work with our partners to ensure the physical safety and civil rights of all individuals and ensure that any public servant who abuses their authority is held accountable.”
According to court documents, the defendant, formerly known as James Stewart Thomas, wrote an official report for the Maury County Jail in response to allegations that he had sexually abused an inmate he had guarded in a hospital room while the inmate recovered from major surgery. In his report, Justice falsely claimed that he had reported to two Maury County Jail supervisors that an inmate had made sexual advances toward him while the inmate was in his custody at the hospital, falsely claimed that those two Maury County Jail supervisors both advised him not to write a report about the inmate’s alleged sexual advances and omitted a claim he later made to criminal investigators that he had a sexual relationship with the inmate after the inmate’s release from custody.
The FBI Memphis Field Office, Nashville Resident Agency investigated the case.
Trial Attorney Kyle Boynton of the Civil Rights Division and Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee prosecuted the case.
Former San Francisco PUC Chief Sentenced to Four Years in PrisonRead the Press Release
SAN FRANCISCO - Harlan Kelly Jr. was sentenced today to four years in prison and ordered to pay a $10,000 fine after being tried and convicted of participating in a long-running honest services fraud bribery conspiracy and a separate bank fraud scheme and conspiracy, announced First Assistant United States Attorney Patrick D. Robbins, FBI Special Agent in Charge Robert K Tripp, and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The sentence was handed down by the Hon. Richard Seeborg, Chief U.S. District Judge, following a 12-day jury trial.
“By abusing his position and violating his duty of trust, Harlan Kelly betrayed the people of the City of San Francisco in service to his personal greed,” said First Assistant U.S. Attorney Robbins. “Today’s four-year prison sentence sends a clear message that public officials who violate their oath of office and betray their duty as public stewards will be held accountable.”
“The citizens of San Francisco deserve honesty and integrity from their public officials,” said FBI Special Agent in Charge Robert Tripp. “Kelly, however, put his own personal gain above the people he served, for which he will now spend years in prison. The FBI and our partners will continue to root out and hold accountable government officials who violate the public's trust.”
“Harlan Kelly’s long-running bribery and bank fraud schemes were rooted in greed and are blatant abuses of power,” said CI Acting Special Agent in Charge Michael Mosley. “Today’s sentencing serves notice to those afflicted with such greed and disregard for public trust: you are not above the law and CI special agents along with their federal law enforcement partners work daily to protect and maintain public trust while developing cases that hold criminals responsible.”
Kelly, 61, of San Francisco, was convicted of the crimes on July 14, 2023. The evidence at trial showed that during the relevant time, Kelly was the general manager of the San Francisco Public Utilities Commission (SFPUC) and one of the highest-ranking appointed officials in San Francisco City government. The evidence demonstrated that for over six years, while Kelly was leading the SFPUC, he received a stream of bribes from a contractor seeking to be awarded millions of dollars in SFPUC contracts. The jury concluded Kelly accepted the bribes which included payments for a lavish vacation to Hong Kong and China, construction work on this house, and other benefits. Further, the evidence demonstrated that in return for bribes, Kelly used his official position to provide aid to a contractor by providing the contractor with internal, confidential PUC documents related to the contract being sought.
In addition, Kelly was convicted of participating in a separate bank fraud conspiracy. The jury concluded that both Kelly and his co-conspirator Victor Makras, 65, of San Francisco, took steps to defraud Quicken Loans as part of a $1.3 million mortgage loan application. Both Kelly and Makras were convicted of bank fraud and false statements for their respective roles in the scheme.
On May 31, 2022, a federal grand jury handed down a superseding indictment charging Kelly with conspiracy to commit honest services fraud, in violation of 18 U.S.C. § 1349, honest services fraud, in violation of 18 U.S.C. § 1343 and §1346, conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, bank fraud, in violation of 18 U.S.C. § 1344, conspiracy to make false statements to a bank, in violation of 18 U.S.C. § 371, and making false statements to a bank, in violation of 18 U.S.C. § 1014. Kelly was convicted of one count of conspiracy to commit honest services wire fraud, one count of honest services wire fraud, and all four counts related to the bank fraud scheme. The jury found Kelly was not guilty of two honest services wire fraud counts.
In addition to the prison term and the fine, Judge Seeborg also ordered Kelly to serve a three-year period of supervised release to begin after his prison term. Judge Seeborg ordered Kelly to begin serving his sentence on June 19, 2024.
Assistant U.S. Attorneys David Ward and Kristina Green are prosecuting the case with the assistance of Tina Rosenbaum.
The prosecution is the result of an investigation by the Federal Bureau of Investigation and the CI. Kelly’s sentencing is the latest in the U.S. Attorney’s six-year investigation into public corruption in San Francisco. To date, more than a dozen individuals and two corporations have pleaded guilty or admitted their involvement in the sprawling corruption schemes.
Former President of Energy Company Pleads Guilty to $5.5M Illegal Kickback Conspiracy and Commodities Insider Trading SchemeRead the Press Release
The former president of a Texas energy company pleaded guilty last week to an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
According to court documents, Matthew Clark, 56, of Needville, Texas, conspired with others to direct his employer’s trades to Classic Energy LLC, a brokerage firm owned and operated by Matthew Webb, 54, of Tiki Island, Texas, in exchange for illegal kickbacks. Specifically, Clark accepted more than $5.5 million in illegal kickbacks, which were generated from commission fees paid by his employer to Classic Energy.
“Matthew Clark steered his company’s commodities trading business to a broker in exchange for over $5.5 million in illegal kickbacks. He also misappropriated confidential information about his company’s planned commodities trades and used that information to enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company — they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.”
“Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives, and his employer’s proprietary insider information,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The natural gas futures contract market is an integral part of Houston’s economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those contracts not engage in illegal and unfair practices. That’s why my office is committed to holding those accountable, like Clark, who use kickbacks and inside information to enrich themselves at the expense of the public’s trust in the U.S. markets.”
Clark also misappropriated his employer’s material nonpublic information and engaged in prohibited commodities transactions. Webb, through Classic Energy, brokered Clark’s natural gas futures trades with counterparties who were identified in advance of executing the trades. The predetermined counterparties included John Ed James, 54, of Katy, Texas, and Peter Miller, 49, of Puerto Rico. Clark, Webb, James, and Miller then shared the net profits generated from these illegal prearranged trades.
“The FBI and its partners will continue to relentlessly pursue those who engage in illegal kickback schemes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This plea should make it known to others that participate in illicit activity that threatens the integrity of our financial systems that there are consequences to your actions.”
“The FBI Houston Field Office is proud to have spearheaded this first-of-its-kind criminal commodities insider trading case,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “Securities and commodities fraud may be a non-violent crime but it’s certainly not victimless – it damages the public’s confidence in the U.S. markets and stacks the deck against fair traders and investors.”
Clark pleaded guilty to one count of conspiracy to commit honest services wire fraud, one count of prohibited commodities transaction, and one count of commodities insider trading. He is scheduled to be sentenced on June 24 and faces a maximum penalty of 20 years in prison for the honest services wire fraud conspiracy count and 10 years in prison on each of the prohibited commodities transaction and insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act; James pleaded guilty in February 2021 to conspiracy to commit commodities fraud and wire fraud; and Miller pleaded guilty in February 2022 to conspiracy to commit commodities fraud. Miller is scheduled to be sentenced on June 20. Webb and James are scheduled to be sentenced on July 1.
In two other related cases, Marcus Schultz, 44, of Houston, and Lee Tippett, 64, of Jacksonville, Florida, pleaded guilty in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act, and Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud. Tippett was sentenced on Feb. 20 to two years and nine months in prison followed by three years of supervised release. Schultz is scheduled to be sentenced on July 1.
The FBI Houston Field Office is investigating the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grace Murphy for the Southern District of Texas are prosecuting the case.
Former O.C. Tax Preparer Sentenced to 10 Years in Federal Prison for Leading Scheme to Swindle IRS and States Out of Millions of DollarsRead the Press Release
SANTA ANA, California – A former Orange County tax preparer was sentenced today to 120 months in federal prison for leading multi-year tax fraud conspiracies across three countries, which claimed more than $10 million from the IRS and dozens of state tax authorities in fraudulent tax refunds and led these authorities to lose more than $1.2 million.
Stephen Jake McGonigle, 67, of Victorville, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $1,230,175 in restitution. Judge Selna also ordered that the $300,000 McGonigle previously paid to be free on bond in this case be applied to the restitution order.
At the conclusion of an eight-day trial, a jury in November 2023 found McGonigle guilty of one count of conspiracy to defraud the United States, one count of conspiracy to commit wire fraud, and one count of aggravated identity theft.
McGonigle recruited others to help convince the IRS and dozens of state governments to issue millions of dollars in fraudulent tax refunds.
To perpetrate the massive fraud that began in 2013 and lasted until McGonigle’s arrest in 2019, McGonigle sent one co-conspirator to Thailand to obtain fake identification documents that used stolen victim identities, and then he directed other co-conspirators to use those fake identifications to obtain prepaid debit cards, as well as numerous commercial mailboxes across Orange County and elsewhere.
After having the prepaid debit cards sent to these untraceable mailboxes, McGonigle and his co-conspirators filed fraudulent tax returns using the identity theft victims’ Social Security numbers. Those fraudulent tax returns sought millions of dollars in tax refunds to be deposited into these prepaid debit cards or other bank accounts that they controlled.
With more than a decade of tax preparation experience in Southern California, McGonigle used his knowledge to lead the fraud scheme. The IP addresses used to file the fraudulent returns were traced back to various cities in Southern California, including McGonigle’s home in Fallbrook and various office spaces leased by McGonigle in Lake Forest, Costa Mesa, Fountain Valley, and Carlsbad. Some IP addresses were traced back to Costa Rica, where law enforcement surveillance and travel records confirmed that McGonigle and his co-conspirators opened an office and hired employees to help file additional fraudulent returns.
McGonigle’s scheme fraudulently sought more than $10 million from federal and state tax authorities and caused an actual loss of $1,230,175. Prosecutors have secured guilty pleas from two co-defendants, who are also scheduled to be sentenced in the coming months.
IRS Criminal Investigation, Homeland Security Investigations, and the United States Postal Inspection Service investigated this matter. The Missouri Department of Revenue and the U.S. Secret Service provided substantial assistance during the investigation.
Assistant United States Attorneys Sue Bai of the Terrorism and Export Crimes Section and Colin Scott of the General Crimes Section prosecuted this case.
Former Maury County Corrections Officer Sentenced for Obstructing Federal Civil Rights Investigation into Allegations of Sexual Misconduct with an InmateRead the Press Release
NASHVILLE – A former corrections officer with the Maury County, Tennessee, Jail, James Stewart Justice, was sentenced on Friday to 15 months in prison and one year of supervised release. A federal jury previously convicted Justice of falsifying a record in a federal civil rights investigation for a report he wrote in response to allegations that he had sexually abused an inmate in his custody.
“Corrections officers are entrusted with immense power over the inmates in their care. The vast majority of them carry out their important jobs with honor and integrity,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “This prosecution, and the sentence imposed last week, however, should serve as a reminder that we will not hesitate to hold corrections officers accountable when they violate the law and the public trust.”
“This defendant abused his authority as a corrections officer to cover up allegations of sexual misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Law enforcement officers who oversee our jails and prisons have a responsibility to protect people in their custody. Officers must treat allegations of sexual misconduct seriously and document them carefully. We will continue holding officers accountable when they abuse their position of power to cover up their unlawful conduct.”
“This sentence is the result of relentless efforts by the FBI to bring to justice corrections personnel who abuse their position of trust,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office. “The FBI will continue to work with our partners to ensure the physical safety and civil rights of all individuals and ensure that any public servant who abuses their authority is held accountable.”
According to court documents, the defendant, formerly known as James Stewart Thomas, wrote an official report for the Maury County Jail in response to allegations that he had sexually abused an inmate he had guarded in a hospital room while the inmate recovered from major surgery. In his report, Justice falsely claimed that he had reported to two Maury County Jail supervisors that an inmate had made sexual advances toward him while the inmate was in his custody at the hospital, falsely claimed that those two Maury County Jail supervisors both advised him not to write a report about the inmate’s alleged sexual advances and omitted a claim he later made to criminal investigators that he had a sexual relationship with the inmate after the inmate’s release from custody.
The FBI Memphis Field Office, Nashville Resident Agency investigated the case.
Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee and Trial Attorney Kyle Boynton of the Civil Rights Division prosecuted the case.
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Former Federal Correctional Officer Sentenced to Federal Prison for Role in Bribery and Contraband Smuggling SchemeRead the Press Release
PORTLAND, Ore.—A former federal correctional officer in Oregon was sentenced to federal prison today for his role in a conspiracy to smuggle contraband into a federal prison in exchange for money.
Nickolas Carlos Herrera, 34, of McMinnville, Oregon, was sentenced to 15 months in federal prison and three years’ supervised release.
“Corruption by any public official or law enforcement officer is unacceptable. Mr. Herrera dishonored both himself and the law he swore to uphold, as well as the justice system he represents, by allowing a free flow of criminal activity in and out of the prison,” said Aubree M. Schwartz, Acting Special Agent in Charge of the FBI Portland Field Office. “Today’s sentence should send a strong message to all who abuse their positions for personal gain: we will not accept corruption in any form, or at any level.”
“By smuggling drugs, a cell phone, and other contraband into FCI Sheridan, Herrera exchanged the safety and security of the entire institution for his own selfish gain. Today’s sentencing shows that correctional officers who accept bribes and bring contraband into federal prisons will be held accountable for their crimes,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Western Region.
According to court documents, from April 2015 until he was placed on administrative leave in December 2019, Herrera was employed as a correctional officer at the Federal Correctional Institution in Sheridan, Oregon, a medium security federal prison. Herrera used his position to introduce contraband into the facility for the benefit of select inmates, including Donte Hunt, 40, of Portland, who at the time was in custody pending trial on federal drug, gun, and money laundering charges. In the spring of 2019, Herrera started bringing contraband items such as food, clothing, and cigarettes into the facility, which he gave to Hunt.
Later, Herrera brought Hunt marijuana; Suboxone, a Schedule III narcotic; Yeezy brand designer sneakers; and a cell phone. Herrera obtained the items from Elizabeth McIntosh, 34, a non-incarcerated associate of Hunt’s. On at least one occasion, Herrera allowed Hunt to use a staff phone at the prison to call McIntosh to arrange the delivery of contraband to Herrera. Herrera met McIntosh on multiple occasions to obtain items for Hunt and accepted payment from her on Hunt’s behalf.
On September 24, 2020, a federal grand jury in Portland returned an indictment charging Herrera, Hunt, and McIntosh with conspiracy and bribing a public official. Herrera and Hunt were also charged with providing contraband in prison.
On May 19, 2022, Herrera pleaded guilty to conspiracy, providing contraband in prison, and accepting a bribe as a public official.
On December 18, 2023, Hunt pleaded guilty to conspiracy and bribing a public official. He was sentenced today to 15 months in federal prison to be served concurrently with a 300-month sentence previously imposed from his underlying criminal case.
On November 29, 2023, McIntosh pleaded guilty to a one-count criminal information charging her with misprision of felony and, on February 13, 2023, she was sentenced to one year of probation.
This case was investigated by the FBI and the Department of Justice Office of Inspector General with assistance from the Federal Bureau of Prisons, Portland Police Bureau, and IRS-Criminal Investigation. It was prosecuted by Ethan Knight and Katherine Rykken, Assistant U.S. Attorneys for the District of Oregon.
Former Cashier at Veterans Affairs Medical Center Sentenced to Prison for Stealing from Patients and Engaging in Pandemic Assistance FraudRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to six months of imprisonment, to be followed by two years of supervised release, in connection with his conviction for embezzling money from disabled veterans’ accounts and conducting a mail fraud scheme to obtain pandemic unemployment assistance, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Nora Barry Fischer imposed the sentence on Corey Mizell, 51.
According to information presented to the Court, Mizell previously worked as an agent cashier at the H. John Heinz III Department of Veterans Affairs (VA) Medical Center. In January 2021, the sister of a deceased veteran called the VA Police after reviewing the balance in her brother’s patient account. According to the sister, her brother was essentially bedridden due to his disability and the COVID-19 pandemic, and thus could not spend the amount of cash withdrawn from his account. The VA Police opened an investigation into the account activity and questioned Mizell, the teller who conducted each withdrawal.
Mizell initially informed the VA Police that someone must have misrepresented their identity to him in order to fraudulently obtain the funds. Mizell also opined that he was an easy target for such a scheme since he recently had become an agent cashier. The investigation revealed that Mizell would call for authorization to withdraw funds from patients who were either on COVID lockdown or who could not leave their room without an escort due to their disabilities. The U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) confronted Mizell after driving by his residence to find the backyard and exterior of his home being remodeled.
Following his interview with the VA-OIG, Mizell provided a written confession in which he admitted to “fraudulently taking money…from accounts of veterans.” Mizell, also a wedding DJ, attributed his conduct to losing income during the pandemic and unpaid bills. Mizell identified three veterans from whom he took money, estimating the total amount stolen as $17,660, and resigned from the VA in April 2021.
Mizell omitted from his written confession that he also embezzled funds from a fourth veteran and that he also fraudulently applied for and obtained pandemic unemployment assistance. A separate investigation conducted by the U.S. Department of Labor Office of Inspector General revealed that Mizell filed an electronic application for pandemic benefits in April 2020. Despite working for the VA since 2016, Mizell falsely stated that he was not a federal employee. Beginning in May 2020, Mizell falsified that he was not working full time, when he was in fact working full time as an agent cashier. After his resignation from the VA, Mizell certified on a weekly basis that he was unemployed due to the pandemic. These falsifications allowed Mizell to collect pandemic benefits totaling $38,400.
In imposing Mizell’s sentence, Judge Fischer denied the defendant’s request for a non-incarceration sentence, finding it striking that Mizell, himself a veteran, embezzled money from other veterans. The judge further stated that Mizell did not just steal money from the government, but also stole money from veterans and their families, with some of Mizell’s victims so disabled that they could not even walk to his cashier window. Judge Fischer also ordered Mizell to serve the first six months of his supervised release (following his imprisonment) at home on an electronic location monitor, and to pay over $57,000 in restitution to the four veterans and the government.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Labor Office of Inspector General and Department of Veterans Affairs Office of Inspector General for the extensive and collaborative investigation leading to the successful prosecution of Mizell.
Florida Man Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
A Florida man was sentenced today to 30 months in prison for failing to pay over taxes that he withheld from his employees’ paychecks.
According to court documents and evidence presented in court, Timothy Meade, of Fort Myers, Florida, operated a prison phone call service under several business names. From 2011 through 2021, he withheld taxes from his employees’ paychecks but did not pay over to the IRS the full amount of the taxes he withheld. He also did not pay the business’ portion of his employees’ Social Security and Medicare taxes. The IRS attempted to collect the taxes, but Meade changed the call service’s names and bank accounts to thwart the IRS’ collection efforts.
In total, Meade caused a tax loss of $971,130 to the IRS.
In addition to the prison sentence, U.S. District Court Judge Sheri Polster Chappell for the Middle District of Florida ordered Meade to serve three years of supervised release and to pay $971,130 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Acting Special Agent in Charge Lani Rosado-Espinal of IRS Criminal Investigation’s Tampa Field Office made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande Viacava for the Middle District of Florida are prosecuting the case.
Florida Man Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
A Florida man was sentenced today to 30 months in prison for failing to pay over taxes that he withheld from his employees’ paychecks.
According to court documents and evidence presented in court, Timothy Meade, of Fort Myers, Florida, operated a prison phone call service under several business names. From 2011 through 2021, he withheld taxes from his employees’ paychecks but did not pay over to the IRS the full amount of the taxes he withheld. He also did not pay the business’ portion of his employees’ Social Security and Medicare taxes. The IRS attempted to collect the taxes, but Meade changed the call service’s names and bank accounts to thwart the IRS’ collection efforts.
In total, Meade caused a tax loss of $971,130 to the IRS.
In addition to the prison sentence, U.S. District Court Judge Sheri Polster Chappell for the Middle District of Florida ordered Meade to serve three years of supervised release and to pay $971,130 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Acting Special Agent in Charge Lani Rosado-Espinal of IRS Criminal Investigation’s Tampa Field Office made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande Viacava for the Middle District of Florida are prosecuting the case.
Five Men Indicted in Connection with a Drug Trafficking OrganizationRead the Press Release
CONCORD – Five men have been indicted in connection with a drug trafficking organization, U.S. Attorney Jane E. Young announces.
The defendants were indicted for conspiracy to distribute and possess with intent to distribute controlled substances, namely fentanyl and methamphetamine. Three defendants were also charged with one count each of distribution of controlled substances. Over the past week, law enforcement arrested four of these defendants. One defendant remains a fugitive.
According to the charging documents and statements made in court, the defendants conspired to distribute and possess with intent to distribute controlled substances between October 13, 2023 and March 12, 2024.
The following defendants have been indicted in connection with these charges:
- Jose Luis Guerrero Nunez, who is in federal custody.
- Carlos Alejandro Chevalier Santos, who is in federal custody.
- Eddy Mendez Carmona, who is in custody on unrelated charges.
- Juan Carlos De Los Santos Romero, who remains a fugitive.
- Luis Guerrero Cabral, who was released.
The charging statute provides a sentence of no greater than 20 years in prison, at least 3 years of supervised release, and a fine of up to $1,000,000. 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.
The Drug Enforcement Administration led the federal investigation. The Hampton Police Department, Seabrook Police Department, Portsmouth Police Department, and Methuen Massachusetts Police Department provided valuable assistance. Assistant U.S. Attorneys Kasey Weiland and Heather Cherniske are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Final Defendant in 2020 Drive-by-Shooting of Court Security Officers Sentenced to Life in PrisonRead the Press Release
SAN FRANCISCO – Robert Alvin Justus, Jr. was sentenced today to life in prison for his role in the May 29, 2020, drive-by shooting at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, Calif., that resulted in the murder of Protective Services Officer (“PSO”) Dave Patrick Underwood and the attempted murder of a second PSO. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, United States District Judge, after Justus was convicted by a jury of aiding and abetting the murder and attempted murder following a two-week trial. In 2022, Justus’s co-defendant Steven Carrillo, was sentenced to serve 41 years in prison followed by a lifetime of supervised release for his role in the crimes.
“With this sentence, the Justice Department has ensured that both of the defendants responsible for brutally murdering a law enforcement officer and seriously wounding another are held accountable for their heinous crimes,” said Attorney General Merrick B. Garland. “Law enforcement officers serve their communities at great risk to themselves, and anyone who targets these brave men and women will be met with the full force of the Justice Department.”
“The defendant and Mr. Carrillo tried to destabilize our government by attacking the courts, killing one protective services officer and wounding another as they guarded the federal courthouse,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “The loss of Mr. Underwood to his family, friends, and the community is incalculable, and the wounding of the second officer has permanently altered his life and that of his family. Today's sentence punishes this heinous conduct and signals any like-minded individuals who would attack those guarding our courts and other public institutions that we will find and prosecute them to the fullest extent of the law.”
"Justus and Carrillo ambushed two federal protective service officers in fulfillment of a conspiracy fueled by extremist beliefs. Now they will both spend the rest of their lives in prison,” said FBI Special Agent in Charge Robert K. Tripp. “The senseless murder of Officer Underwood and the serious injury done to Officer Mifkovic cannot be undone, but these two subjects have been held accountable. We will continue to stand with our partners to investigate politically motivated acts of violence and keep the American people safe.”
“ATF is pleased to hear today’s sentence,” said Special Agent in Charge Jennifer Cicolani, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Every day members of law enforcement put their lives on the line in the pursuit of ensuring the safety and wellbeing of the public. This was a senseless crime that resulted in the tragic loss of Protective Services Officer Underwood. While, this verdict does not bring him back, we hope that his family and our community as a whole can find comfort in knowing that this violent offender will spend the rest of his life in jail.”
The evidence at trial established that Justus, 34, of Millbrae, was the driver of the vehicle from which Steven Carrillo, 35, of Santa Cruz fired the gunshots that killed Officer Underwood and wounded the second officer. On May 29, 2020, at approximately 9:27 p.m., Justus parked a white Ford Econoline van directly across the street from the federal courthouse building in Oakland on Jefferson Street. The van was on the southeast corner in the spot closest to the intersection with an unobstructed view of the guard post where Officer Underwood and his partner that evening stood guard to protect the building and its occupants. At approximately 9:44 p.m., the exterior lights of the van turned on and Justus drove the van north on Jefferson Street toward the guard post. The passenger-side sliding door opened, and Carrillo fired numerous rounds from an AR-style rifle toward the guard post, killing Officer Underwood and seriously injuring his partner. The image below showing the shooting in progress as Justus drove the white van across the intersection is from a courthouse security camera and was in evidence at trial.
From a courthouse security camera, the image shows the shooting in progress as Justus drove the white van across the intersection.
The trial ending in Justus’s conviction contained ominous evidence of the leadup to participation in the drive-by shooting. For example, Justus and Carrillo shared an allegiance to a anti-government movement called Boogaloo. In February of 2020, Justus commented on Facebook that he had a “bloodlust for police,” and in April 2020, he corresponded with an armed anti-government militia group he was interested in joining. On May 27, 2020, Justus posted an image depicting a police officer being shot in the head with a caption reading “Speak to cops in a language they understand.” In addition, on the day before the shooting, Carrillo posted a video of a mob attacking police cruisers and commented, “[T]his needs to be nationwide. It’s a great opportunity to target the specialty soup bois”—a Boogaloo slang term for federal agents. Justus responded to Carrillo’s post that same day, writing “Let’s boogie.”
The trial evidence demonstrated that on the day of the shooting Carrillo and Justus planned to capitalize on protests being planned in Oakland in response to the death of George Floyd. They hoped their attack would spark further anti-government violence. Carrillo and Justus met in a parking lot in San Leandro before the two circled the downtown area in Oakland several times. In the hour leading up to the shooting, Justus exited the van twice to scout the area on foot and locate targets. Investigators from the FBI, OPD and other agencies located security video footage from numerous locations throughout Oakland showing Justus’s movements on both occasions when he left the white van but returned before the shooting. After the shooting, Justus drove Carrillo back to Millbrae and the two separated.
The incident set off an eight-day manhunt. During this time, Justus destroyed digital and physical evidence connecting him to the shooting, continued to post anti-law enforcement content on Facebook, and corresponded with Carrillo about meeting in the future. Eventually, Carrillo was captured at his residence in Ben Lomond, Calif., -- but not before Carrillo killed a Santa Cruz Sheriff’s Deputy and injured another. Several days later, Justus became aware that he was under investigation and travelled to the Federal Building in San Francisco where he met with the FBI and admitted to his involvement in the shooting.
The jury convicted Justus of Aiding and Abetting the Murder of a Federal Employee and Aiding and Abetting the Attempted Murder of a Federal Employee, both in violation of 18 U.S.C. §§ 1114(3), 1111, 2. Pursuant to today’s sentence, Justus will serve the rest of his life in prison pursuant to the aiding and abetting murder charge and a twenty-year concurrent sentence pursuant to the aiding and abetting attempted murder charge.
On February 11, 2022, Carrillo pleaded guilty to two federal charges related to the May 29, 2020, shooting—use of a firearm in furtherance of a crime of violence resulting in death, in violation of 18 U.S.C. §§ 924(j)(1) and 2, and attempted murder of a person assisting an officer of the United States Government, in violation of 18 U.S.C. §§ 1114(3), 1111. On June 3, 2022, Judge Gonzalez Rogers sentenced Carrillo to serve 41 years in prison followed by a lifetime of supervised release for his role in the crimes. Carrillo also received a life sentence in Santa Cruz County Superior Court in connection with his murder of the Santa Cruz Sheriff’s Deputy.
The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FPS, and the U.S. Marshal Service investigated the case, with assistance from the Oakland Police Department and the Santa Cruz County Sheriff’s Office.
Assistant United States Attorneys Jonathan U. Lee and John C. Bostic are prosecuting the case with the assistance of Trial Attorney Jessica Fender of the National Security Division’s Counterterrorism Section, Yenni Weinberg, and Lynette Dixon.
Final Defendant in 2020 Drive-by-Shooting of Court Security Officers Sentenced to Life in PrisonRead the Press Release
Robert Alvin Justus Jr., 34, of Millbrae, California, was sentenced on Friday to life in prison for his role in the May 29, 2020, drive-by shooting at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, California, that resulted in the murder of Protective Services Officer (PSO) Dave Patrick Underwood and the attempted murder of a second PSO. In 2022, Justus’s co-defendant, Steven Carrillo, was sentenced to 41 years in prison followed by a lifetime of supervised release for his role in the crimes.
“With this sentence, the Justice Department has ensured that both of the defendants responsible for brutally murdering a law enforcement officer and seriously wounding another are held accountable for their heinous crimes,” said Attorney General Merrick B. Garland. “Law enforcement officers serve their communities at great risk to themselves, and anyone who targets these brave men and women will be met with the full force of the Justice Department.”
According to court documents, Justus was convicted by a jury of aiding and abetting the murder and attempted murder following a two-week trial. The evidence established that Justus was the driver of the vehicle from which Steven Carrillo, 35, of Santa Cruz, fired the gunshots that killed Officer Underwood and wounded the second officer.
On May 29, 2020, at approximately 9:27 p.m., Justus parked a white Ford Econoline van directly across the street from the federal courthouse building in Oakland on Jefferson Street. The van was on the southeast corner in the spot closest to the intersection with an unobstructed view of the guard post where Officer Underwood and his partner that evening stood guard to protect the building and its occupants. At approximately 9:44 p.m., the exterior lights of the van turned on and Justus drove the van north on Jefferson Street toward the guard post. The passenger-side sliding door opened, and Carrillo fired numerous rounds from an AR-style rifle toward the guard post, killing Officer Underwood and seriously injuring his partner. The image below shows the shooting in progress as Justus drove the white van across the intersection is from a courthouse security camera and was in evidence at trial.
From a courthouse security camera, the image shows the shooting in progress as Justus drove the white van across the intersection.The trial ending in Justus’s conviction contained ominous evidence of the leadup to participation in the drive-by shooting. For example, Justus and Carrillo shared an allegiance to an anti-government movement called Boogaloo. In February 2020, Justus commented on Facebook that he had a “bloodlust for police,” and in April 2020, he corresponded with an armed anti-government militia group he was interested in joining. On May 27, 2020, Justus posted an image depicting a police officer being shot in the head with a caption reading “Speak to cops in a language they understand.” In addition, on the day before the shooting, Carrillo posted a video of a mob attacking police cruisers and commented, “[T]his needs to be nationwide. It’s a great opportunity to target the specialty soup bois” – a Boogaloo slang term for federal agents. Justus responded to Carrillo’s post that same day, writing “Let’s boogie.”
The trial evidence demonstrated that, on the day of the shooting, Carrillo and Justus planned to capitalize on protests being planned in Oakland in response to the death of George Floyd. They hoped their attack would spark further anti-government violence. Carrillo and Justus met in a parking lot in San Leandro before the two circled the downtown area in Oakland several times. In the hour leading up to the shooting, Justus exited the van twice to scout the area on foot and locate targets. Investigators from the FBI, Oakland Police Department and other agencies located security video footage from numerous locations throughout Oakland showing Justus’s movements on both occasions when he left the white van but returned before the shooting. After the shooting, Justus drove Carrillo back to Millbrae and the two separated.
The incident set off an eight-day manhunt. During this time, Justus destroyed digital and physical evidence connecting him to the shooting, continued to post anti-law enforcement content on Facebook and corresponded with Carrillo about meeting in the future. Eventually, Carrillo was captured at his residence in Ben Lomond, California, but not before Carrillo killed a Santa Cruz Sheriff’s Deputy and injured another. Several days later, Justus became aware that he was under investigation and travelled to the Federal Building in San Francisco where he met with the FBI and admitted to his involvement in the shooting.
On Feb. 11, 2022, Carrillo pleaded guilty to two federal charges related to the May 29, 2020, shooting – use of a firearm in furtherance of a crime of violence resulting in death and attempted murder of a person assisting an officer of the U.S. government. On June 3, 2022, Judge Gonzalez Rogers sentenced Carrillo to serve 41 years in prison followed by a lifetime of supervised release for his role in the crimes. Carrillo also received a life sentence in Santa Cruz County Superior Court in connection with his murder of the Santa Cruz Sheriff’s Deputy.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Protective Service, and U.S. Marshals Service investigated the case, with assistance from the Oakland Police Department and the Santa Cruz County Sheriff’s Office.
Assistant U.S. Attorneys Jonathan U. Lee and John C. Bostic for the Northern District of California prosecuted the case, with assistance from Trial Attorney Jessica Fender of the National Security Division’s Counterterrorism Section.
Fentanyl Dealer Sentenced to 20 Years in PrisonRead the Press Release
A Dallas fentanyl trafficker who admitted to dealing more than 142,000 counterfeit pills was sentenced today to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Terrill Antwan Ray, 48, pleaded guilty in April 2023 to conspiracy to possess with intent to distribute a controlled substance and was sentenced Monday by Chief U.S. District Judge David Godbey, who called the amount of drugs in the case “staggering.
In plea papers, Mr. Ray admitted that during a 2019 raid on his apartment, law enforcement seized more than 28,000 counterfeit fentanyl pills weighing more than 12.5 kilograms.
During subsequent raids on the homes of two coconspirators, law enforcement seized an additional 114,000 counterfeit fentanyl pills, including 105,000 belonging to Mr. Ray, that weighed a combined 42 kilograms. They also seized an electromagnetic foil capping machine, hundreds of empty plastic pill bottles, more than $11,000 in U.S. currency, and two firearms.
In plea papers, Mr. Ray admitted to distributing more than 142,000 counterfeit fentanyl pills marked to resemble hydrocodone and oxycodone.
Court documents detail text messages in which Mr. Ray and a down-line distributor discussed drug debts and referenced “school busses” (code for narcotics), “blues” (slang for oxycodone), and “dros” (slang for hydrocodone).
“Today’s sentencing of Terrill Ray exemplifies the commitment of DEA Dallas and our numerous law enforcement partners to relentlessly pursue those who distribute illicit fentanyl,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez. “Mr. Ray is being held accountable for the poison that found its way into our community by his hand and the tens of thousands of pills that could have found their way into our love ones’ hands. DEA Dallas remains relentless in our efforts to rid illicit fentanyl from the streets of Dallas, while equally supporting and standing firm with those family members and friends affected by the grip of illicit substance abuse.”
The Drug Enforcement Administration's Dallas Division and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, DeSoto Police Department and Cedar Hill Police Department. Assistant U.S. Attorney Linda Requénez and Abe McGlothin (fmr) prosecuted the case.
The case 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.
Felon Sentenced to Prison for Unlawful Possession of Stolen FirearmsRead the Press Release
LAS VEGAS – A Las Vegas resident who has prior felony convictions was sentenced Friday by United States District Judge Andrew P. Gordon to 30 months in prison to be followed by three years of supervised release for unlawful possession of two stolen firearms.
According to court documents, on August 2, 2023, a Las Vegas Metropolitan Police Department officer approached Domineaq Marchell Wilson and three others in a parking area behind an apartment building. The officer saw that the ignition of two motorcycles had been torn out, and at least one of the motorcycles was running without a key. The officer saw the grip of a pistol protruding from the waistband of Wilson’s pants. When the officer directed Wilson not to reach for the firearm, Wilson grabbed the grip and ran from the officer. The firearm, a Browning Black Label .380 semiautomatic pistol, fell to the ground. Wilson threw down a backpack containing a loaded Glock G42 semiautomatic pistol as he ran. The officer caught Wilson as he tried to climb over a wall.
Wilson admitted that the Browning Black Label .380 semiautomatic pistol had been stolen from a Federal Firearms Licensee in Overton, Nev. and the Glock G42 semiautomatic pistol had been stolen from a private citizen in Henderson, Nev. At the time, Wilson was on state supervision in two separate felony convictions in Nevada.
Wilson, 24, also known as “Tension,” pleaded guilty to one count of possession of a firearm by a prohibited person.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Jennifer Cicolani for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF and Las Vegas Metropolitan Police Department. Assistant United States Attorney Dan Cowhig prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Anyone with information about the unlawful purchase of firearms can call ATF at 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously at www.reportit.com/.
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East Feliciana Man Sentenced for Wire FraudRead the Press Release
NEW ORLEANS – CLARENCE “BILLY” BURKETTE, age 55, a resident of Slaughter, La., was sentenced on March 13, 2024 by U.S. District Judge Ivan L.R. Lemelle, to 6 months imprisonment, 2 years of supervised release, a mandatory $100 special assessment fee, and the payment of $598,196.25 in restitution to the victim of this offense, the Town of Pearl River, announced U.S. Attorney Duane A. Evans.
According to court documents, BURKETTE had previously pleaded guilty to wire fraud, in violation of Title 18, United States Code, Section 1343, and admitted to defrauding the Town of Pearl River in connection with the Federal Emergency Management Agency’s (FEMA) Public Assistance Program (PAC). The PAC provides grants for state, territorial, tribal, and local governments, and certain non-profit organizations. The PAC is administered in Louisiana by the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP). BURKETTE, who contracted to provide the Town of Pearl River disaster assistance services, misrepresented, among other things, the amount of public assistance grant funds for which the Town of Pearl River was eligible. BURKETTE also misrepresented to the Town of Pearl River that his own fees would be reimbursed by FEMA.
U.S. Attorney Evans commended the Federal Bureau of Investigation, the Department of Homeland Security Office of Inspector General, the IRS-Criminal Investigation, and the District Attorney’s Office, 22nd Judicial District, for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Andre J. Lagarde of the Public Integrity Unit and J. Benjamin Myers of the Financial Crimes Unit.
East Bay Doctor Sentenced to Prison for Distributing Opioids Outside the Scope of Medical PracticeRead the Press Release
OAKLAND – Parto Karimi, a former Bay Area doctor, has been sentenced to one year and one day in federal prison for distributing powerful opioids outside the scope of medical practice, announced United States Attorney Ismail J. Ramsey and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark. The sentence was handed down on March 15, 2024, by the Hon. Jon S. Tigar, United States District Judge.
Karimi, 59, of Alamo, California, pleaded guilty in July 2023 to one count of distributing hydrocodone, a Schedule II controlled substance, outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). According to the government’s sentencing memorandum, Karimi practiced medicine from an accessory dwelling unit on the grounds of her suburban home from roughly 2011 to 2022. Her practice operated under the name “Mindful Medicine.” Karimi was a licensed practitioner of internal medicine who had previously worked as an emergency room doctor at an East Bay hospital and was authorized to prescribe controlled substances as part of her medical practice.
According to the government’s sentencing memorandum, the DEA began investigating Karimi after receiving concerning information from the family of one of Karimi’s former patients, who had passed away. The investigation included multiple visits by undercover agents to Karimi’s medical practice. During one, on October 1, 2021, an undercover agent asked Karimi for 10mg Norco tablets based on a claim of leg pain resulting from work as a restaurant server. Karimi admitted in her plea agreement that she wrote the undercover agent a prescription for 60 high-dose Norco pills without conducting a physical examination, without asking follow-up questions about the undercover’s reported pain, without obtaining medical records, and without exploring alternative treatment options or trying a lower dose. Karimi admitted that, in doing so, she knew she was acting in an unauthorized manner by prescribing a controlled substance outside the usual course of medical practice. She also admitted she knew the drug she prescribed was a powerful opioid that can be highly addictive and is liable to abuse by patients.
The government argued in its papers that Karimi wrote medical prescriptions for opioids like Norco in exchange for street drugs including cocaine and methamphetamine, as well as cash payments.
In addition to sentencing Karimi to prison, Judge Tigar ordered the defendant to serve three years of supervised release to begin after her prison term is completed. Judge Tigar also ordered the defendant to forfeit her California medical license and to pay a $4,000 fine.
Assistant United States Attorney Daniel Pastor is prosecuting the case with assistance from Laurie Worthen. The prosecution is the result of an investigation by DEA, with assistance from the United States Department of Health and Human Services – Office of Inspector General and the California Department of Justice Division of Medical Fraud and Elder Abuse.
Dade City Man Pleads Guilty to Unlawfully Possessing Machine GunsRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that Stewart Walter Bachmann (55, Dade City) has pleaded guilty to possession of a machine gun and possession of a firearm not identified by a serial number. Each charge carries up to 10 years in federal prison. Sentencing is set for June 4, 2024.
According to court records, on August 5, 2023, the Pasco Sheriff’s Office received a telephone call from Bachman who told the dispatcher that he was being held hostage and was going to be “put under” by people who were able to walk through the “5th dimension.” As the call progressed, Bachmann also stated there was “going to be something like 9/11,” and there was currently an invisible person in the backseat of his vehicle. Pasco Sheriff’s deputies made contact with Bachmann near the Tampa Premium Outlet Mall. When deputies began speaking with Bachmann, he told them that the CIA was planning a politically motivated mass shooting at the mall. When deputies asked Bachmann if he was going to be the one committing the shooting, he indicated he didn’t know or hadn’t been told that yet.
The Pasco Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a search warrant of Bachmann’s home. During the search, several firearms that are required to be registered in the National Firearm Registration and Transfer Record were located. However, another firearm (RAK15), AR-15 type rifle was also found. This rifle had been modified to house an automatic sear, converting the weapon to fully automatic. ATF found no records for this weapon in the National Firearm Registration and Transfer Record, indicating Bachmann was unlawfully in possession of the device. The weapon also had not been marked with a new serial number after it had been converted to fire fully automatically.
During the same search of Bachmann’s home, law enforcement also found a machine gun conversion device, which is a device designed to convert a semiautomatic firearm to a fully automatic firearm. This conversion device also was not registered in the National Firearm Registration and Transfer Record and did not have a serial number.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture is being handled by Assistant United States Attorney James Muench.
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.
Colombian-Based Alien Smuggling Coordinator Indicted for Smuggling Colombian Nationals into the United StatesRead the Press Release
PHOENIX, Ariz. – Greiby Melissa Barcelo-Velasquez, a national of Colombia, was indicted last week by a federal grand jury on charges of Conspiracy to Encourage and Induce an Alien to Unlawfully Enter the United States and Bringing an Illegal Alien to the United States for Profit. Federal agents have identified well over 100 individuals utilizing Barcelo-Velasquez’s organization to be successfully smuggled into the United States in Arizona.
Since approximately June 2023, Barcelo-Velasquez owned and operated the Baul Travel SAS travel agency in Colombia. In late 2023, United States Border Patrol Sector Intelligence and Homeland Security Investigations began investigating Barcelo-Velasquez after arresting numerous Colombian nationals who identified her as their smuggling coordinator.
Barcelo-Velasquez would meet with the Colombian nationals in Colombia, require them to pay a fee, and then informed them they would travel to Mexico under the false pretense they were vacationing in the country. They were also informed they would need to pay additional fees to her associates in U.S. currency at the Cancun International Airport and in Hermosillo, Mexico to facilitate their travel. Once in Hermosillo, the Colombian nationals were taken to stash houses near the border between Mexico and the United States. These stash houses would also contain others who were seeking to enter the United States illegally. From the stash houses they were transported, many times by armed gunmen, to the border where they illegally crossed into the United States.
Conspiracy to Encourage and Induce an Alien to Unlawfully Enter the United States carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Bringing an Illegal Alien to the United States for Profit carries at least a three-year mandatory minimum prison sentence and a fine of up to $250,000.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s United States Border Patrol Sector Intelligence Unit and Homeland Security Investigations conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-24-00392-PHX-JJT
RELEASE NUMBER: 2024-034_Barcelo-Velasquez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Co-Owner of diesel truck maintenance and sales companies pleads guilty to tampering with pollution controls in violation of Clean Air ActRead the Press Release
Tacoma – The co-owner of two businesses involved in diesel truck sales and service pleaded guilty today in U.S. District Court in Tacoma to violating the Clean Air Act, announced U.S. Attorney Tessa M. Gorman. Sean Coiteux, 50, admits he directed employees to tamper with federally-required pollution control hardware on hundreds of diesel trucks and with the trucks’ pollution monitoring systems.
Coiteux and his wife, Tracy Coiteux, 46, own Racing Performance Maintenance Northwest of Ridgefield, Washington, and a related Woodland, Washington, company, RPM Motors and Sales NW. Racing Performance Northwest also pleaded guilty to violating the Clean Air Act. RPM Motors and Sales pleaded guilty to Conspiracy to violate the Clean Air Act. Coiteux and both companies are scheduled for sentencing by U.S. District Judge Benjamin H. Settle on June 24, 2024.
In the plea agreement, Coiteux admits that between January 2018 and January 2021, he directed employees to delete pollution control software and devices on diesel trucks it sold or serviced. Coiteux’ companies charged between $1,000 and $2,000 for this work. Over three years Coiteux’ companies did this work on approximately 375 diesel trucks, for $538,477 in fees.
“By removing required pollution control devices, the defendants caused their customers’ diesel trucks to spew pollutants into the air at a rate of up to 1,200 times the pollution caused by compliant trucks,” said U.S. Attorney Gorman. “This conduct increased toxins in our environment that are linked to cancer, as well as pulmonary, neurological, cardiovascular, and immune system damage. The pollution causes particular harm to disadvantaged communities who live near freeways and other high traffic areas.”
According to records in the case, Coiteux directed his employees to modify legally required software that works to ensure the vehicle’s pollution remains within legal limits. RPM Motors and Sales sometimes offered, as part of the sale of a truck, to remove the emissions control system after the customer purchased a truck. Email and other electronic records document the conspirators’ purchase of equipment and software kits to remove the pollution control and reprogram the monitoring systems. These modifications, which are known as “tunes” and “deletes,” are marketed to truck owners as improving vehicle power and performance.
Tracy Coiteux, 46, remains charged in the case and is scheduled for trial on May 20, 2024.
In September 2022 service manager, Nick Akerill, 44, pleaded guilty in Clark County Superior Court to a Motor Vehicle Emission Control Systems Violation and was sentenced to serve on a work crew for 30 days.
Each violation of the federal Clean Air Act is punishable by up to two years in prison and a $250,000 fine.
Prosecutors have agreed to recommend no more than six months in prison for Coiteux. Judge Settle is not bound by the recommendation and can impose any sentence allowed by law.
The case is being investigated by Environmental Protection Agency’s Criminal Investigation Division.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Cindy Chang and Environmental Protection Agency Special Assistant United States Attorney Karla Gebel Perrin.
Clay County Man Sentenced to 5 Years in Federal Prison for Aggravated Identity Theft and Fraud Involving the Paycheck Protection Program and Tax ChargesRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Christopher Leo Daragjati, (Middleburg) to five years in federal prison on two counts of wire fraud, two counts of aggravated identity theft, and one count of theft of government property over $1,000. The court also ordered him to pay $363,099 in restitution. Daragjati pleaded guilty on July 20, 2023, and has been detained since his appearance in federal court on March 28, 2023.
According to court documents, Daragjati obtained the personal identifiable information (PII), including the Social Security numbers, of multiple victims. In July 2022, the Clay County Sheriff’s Office began an investigation into an unknown individual, later identified as Daragjati, using stolen identities to commit fraud. Daragjati opened up commercial lines of credit with Sunbelt Rentals using the PII of victims. After renting thousands of dollars of equipment from a rental company, he pawned or stole the equipment. Daragjati’s actions caused a felony arrest warrant to be issued for an innocent victim.
The Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, with assistance from other members of law enforcement, determined that Daragjati fraudulently obtained numerous genuine Florida driver licenses and identification cards. Homeland Security Investigations (HSI) also determined that Daragjati used two fraudulently obtained Florida identification cards to apply for three Paycheck Protection Program (PPP) loans in the identity of two victims. Unsuspecting lenders approved the three loan applications and Daragjati received approximately $150,000 in PPP loan proceeds.
An investigation by the Internal Revenue Service (IRS) revealed that Daragjati submitted eight fraudulent federal tax returns using the stolen identities of six victims. The IRS approved one such tax refund causing Daragjati to receive a refund of more than $3,000 in the identity of the victim.
“Today’s sentencing should serve as a warning to identity thieves who prey on taxpayers,” said Internal Revenue Service – Criminal Investigation Acting Special Agent In Charge, Lani I Rosado-Espinal. “IRS-CI will thoroughly investigate and bring to justice corrupt actors in order to preserve the integrity of the United States tax system.”
“The Clay County Sheriff’s Office takes any attempts to defraud or scheme our citizens’ out of their hard earned money very seriously,” said Clay County Sheriff Michelle Cook. “We appreciate the cooperation that we have with our law enforcement partners to hold these suspects accountable. We will continue to diligently work to identify and arrest any individuals who are engaged in fraud.”
“Using other people’s identities to scam the tax code and take money you are not entitled to makes you a thief. Period,” said HSI Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “HSI, alongside all of our law enforcement partners, will diligently seek out those hiding behind stolen identities and stop them from robbing unsuspecting victims of their personal information and financial security.”
This case was investigated by Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation and the Clay County Sheriff’s Office, with valuable assistance provided by the Florida Department of Law Enforcement, the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, and the United States Secret Service – Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Cheektowaga man arrested for pointing a laser at an aircraftRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Joseph L. Crapsi, 29, of Cheektowaga, NY, was arrested and charged by criminal complaint with aiming a laser pointer at an aircraft, which carries a minimum penalty of five years in prison, and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, on March 1, 2024, at approximately 12:07 a.m., the pilot of a Delta Airlines Flight reported to Buffalo Air Traffic Control that upon approach to the Buffalo Niagara International Airport, he witnessed a green laser being pointed at the aircraft. The pilot reported that the laser originated approximately one mile south of the approach and lasted between 60-90 seconds. Niagara Frontier Transportation Authority Police Department officers were dispatched to the surrounding areas of Genesee Street, Dick Road, and Cayuga Street in Cheektowaga to investigate but did not find anything. At approximately 12:30 a.m., NFTA officers learned that Cheektowaga Police officers were responding to a call of a laser being pointed inside of a house. NFTA and Cheektowaga officers went to a Nagel Drive residence, where Crapsi’s parents allowed officers to enter. Officers recovered a laser pointer in Crapsi’s bedroom. In addition, officers spoke with the neighbor who reported that a green laser was shining through his kitchen window blinding him. The neighbor told officers he viewed the laser for approximately 15 minutes, and witnessed it being pointed directly into the sky multiple times.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The criminal complaint is the result of an investigation by the Niagara Frontier Transportation Authority Police Department, under the direction of Chief Brian Patterson, the Cheektowaga Police Department, under the direction of Chief Brian Coons, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Billionaire Chinese National Pleads Guilty to Straw Donor Campaign Contribution Scheme and Other FraudsRead the Press Release
Earlier today, in federal court in Central Islip, Hui Qin, also known as “Qin Hui,” “Hui Quin,” “Muk Lam Li” and “Karl,” a citizen of the People’s Republic of China (PRC), who was listed on Forbes Magazine’s List of Billionaires and who operated SMI Culture, a Hong Kong-based entertainment entity, pleaded guilty to an Information charging him with making political contributions in the names of others, immigration fraud and producing a false identification document. The proceeding was held before United States Magistrate Steven L. Tiscione. As part of his plea agreement, Qin agreed to abandon his status as a Lawful Permanent Resident (LPR) of the United States and to be removed to a country outside of the United States. When sentenced, Qin faces up to 27 years’ imprisonment. Qin has been incarcerated since his arrest on October 2, 2023.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), and Erin Keegan, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.
“Qin pleaded guilty today to engaging in a brazen web of deception, spreading lies to federal election and immigration authorities and a state agency,” stated United States Attorney Peace. “Ensuring election integrity and rooting out campaign contribution fraud are priorities of the Department of Justice, including my Office. No one is above the law, no matter their wealth or station in society, and this Office will vigorously prosecute all criminals who lie to government agencies to further their own ends.”
“Today, Hui Qin pled guilty to several fraudulent schemes. Qin admitted to making straw donations to multiple elected officials at both federal and local levels. Qin’s guilty plea underscores the FBI’s commitment to ensuring integrity and transparency in campaign donations and election security. Any individual attempting to illegally influence our election process will be held accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
“Qin is a citizen of the People’s Republic of China, but made straw donations to major political campaigns, hiding the true source of the political contribution from the public,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Not only is this unethical, it’s illegal. Qin travelled to the United States, obtained a false visa, willfully violated our laws, then sought to conceal his behavior. IRS Criminal Investigation remains committed to using our expertise, working alongside our law enforcement partners, to detect and hold those accountable who believe rules of law simply do not apply to them.”
“Hui Qin's guilty plea underscores the federal law enforcement system's painstaking, methodical investigative capabilities when faced with a threat to our safety and democracy. Today and always, HSI New York stands united with our partners against any subjects in their attempts to jeopardize our national security," stated HSI New York Acting Special Agent-in-Charge Keegan.
As set forth in court filings and facts presented at the plea proceeding, between December 2021 and December 2022, Qin agreed to reimburse other individuals who made contributions on his behalf to the campaign committees for a candidate for a New York City-wide political office, a member of the United States House of Representatives for a congressional district in the Eastern District of New York and candidate for a House of Representatives seat in a Rhode Island congressional district. During the scheme, without the knowledge of these campaign committees, straw donors made approximately $11,600 in contributions on Qin’s behalf, which caused the campaign committees to unwittingly file false contribution reports with the Federal Election Commission in 2022.
Additionally, as part of his plea Qin admitted that, in April 2019, he filed a false application for LPR status with United States Citizenship and Immigration Services. In the application, Qin falsely swore, under penalty of perjury, that he had never used another name. In fact, in 2008, a PRC government official provided Qin with the alias “Muk Lam Li” and between 2008 and the filing of Qin’s LPR application, Qin obtained identification documents, including a Hong Kong identification card, a PRC identification card and a Hong Kong passport in the name of the Li alias, which contained Qin’s photograph, but a date of birth different than Qin’s. Around September 2017, Qin used the Li alias to transfer more than $5 million from the PRC to a United States bank account, a portion of which was used to purchase a luxury Manhattan apartment where Qin resided.
Qin also pleaded guilty to engaging in interstate travel to fraudulently obtain a Florida Driver’s License. In December 2020, Qin travelled from New York to Florida and applied for a Driver’s License at Florida Department of Highway Safety and Motor Vehicles (FLHSMV). At the time of his travel, Qin was a resident of Old Westbury, Long Island and Manhattan, but he signed an application stating that it was “true and correct” that he resided at an address in Miami, where he had never lived. To bolster this false assertion, Qin presented FLHSMV officials with fake bank and credit card statements bearing the name “Hui Quin” and the false Miami address. After FLHSMV issued Qin a Florida Driver’s License, he presented it to banks and a motor vehicle insurer as identification.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Adam Toporovsky are in charge of the prosecution.
The Defendant:
HUI QIN (also known as “Qin Hui,” “Hui Quin,” “Muk Lam Li” and “Karl”)
Age: 56
Old Westbury, New York and Manhattan, New YorkE.D.N.Y. Docket No. 24-CR-100 (JMA)
Beverly Farms Man Sentenced to 20 Months in Prison for Multi-Million Dollar Payroll SchemeRead the Press Release
BOSTON – A Beverly Farms man was sentenced today in connection with a payroll scheme involving underreporting of overtime hours for his union employees and failing to collect and pay payroll taxes.
Frank Loconte, 62, was sentenced by U.S. District Court Judge Denise J. Casper to 20 months in prison and three years of supervised release. Loconte was also ordered to pay over 4.5 million in restitution and a $15,000 fine. In September 2023, Loconte pleaded guilty to one count of mail fraud and one count of failing to pay taxes.
From 2009 to 2022, Loconte was the president of NER Construction Management Corporation, a Wilmington-based construction company that employed union workers. Loconte was also the president of the company’s employment management company, NER Management LLC. Loconte was responsible for collective bargaining with multiple unions, including the Bricklayers and Allied Craftsmen Local Union No. 3 and various local unions affiliated with the Massachusetts and Northern New England Laborers’ District Council of the Laborers International Union of North America. On behalf of NER, Loconte was bound by collective bargaining agreements with the unions which governed the transfer of worker benefit contributions to employee welfare and pension benefit plans, each of which was subject to ERISA provisions. As a result, NER was required to make periodic contributions to the benefit funds that each hour worked by covered employees at rates prescribed and to deduct dues from the pay of each union worker which was also to be forwarded to the benefit funds.
From approximately January 2014 and May 2022, Loconte engaged in a scheme to defraud the union benefit funds and the IRS by paying certain of its union workers for overtime hours worked without reporting these hours to the union benefit funds and without making the required payroll tax withholdings and payments. At times, some NER employees were paid entirely in cash for overtime hours worked and, at other times, the employees were paid by check without the required withholdings. Loconte also caused NER to file false and fraudulent remittance reports with the benefit funds and the unions which underreported the overtime hours worked by these employees thereby depriving the benefit funds and unions of contributions owed to their members. Loconte also caused NER to file false and fraudulent IRS payroll taxes that underreported the amount of wages paid.
Instead of paying employment taxes, Loconte used NER business accounts to pay for personal expenses, including vehicles, personal property taxes, household improvements, and golf memberships, and failed to report these benefits to the IRS. As a result, Loconte defrauded union workers of more than $l million dollars for overtime work covered by the collective bargaining agreements and defrauded the IRS of more than $3 million by not making the required payroll tax and union dues withholdings and payments.
Acting United States Attorney Joshua S. Levy; Carol S. Hamilton, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
Atlanta man sentenced to prison for fraudulently obtaining COVID-19 small-business relief fundingRead the Press Release
SAVANNAH, GA: An Atlanta man who provided phony documentation to receive small business pandemic relief payments has been sentenced to prison and ordered to repay the funding.
Kemar Clarke Jr., 28, of Atlanta, has been sentenced to eight months in prison and ordered to pay $41,665 in restitution, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Clarke to serve three years of supervised release upon completion of his prison term.
“When Congress approved relief funding for small businesses struggling during the COVID-19 pandemic, far too many people saw it as an opportunity to cash in at the expense of deserving business owners,” said U.S. Attorney Steinberg. “We are committed to holding accountable those who defraud American taxpayers.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized the Small Business Administration to provide and/or guarantee loans to keep small businesses afloat during the pandemic’s financial challenges. One of the programs provided forgivable loans through the Paycheck Protection Program (PPP).
As described in court documents and testimony, agents from the Department of the Army Criminal Investigative Division at Fort Stewart determined that a paralegal specialist serving in the U.S. Army at Hunter Army Airfield had fraudulently obtained a PPP loan for a non-existent barber shop. The investigation also determined that the soldier, after receiving $20,832 in PPP funding, then paid an $8,000 kickback to Clarke for submitting the application on his behalf.
The investigation also determined that Clarke also had fraudulently obtained PPP funding for $20,832 – the maximum amount available to a sole proprietor. The restitution amount reflects the total PPP payouts.
“Unscrupulous actors engaged in PPP fraud have pilfered taxpayer dollars and undermined public trust in government programs.” said Steven Ausfeldt, Special Agent in Charge of Department of the Army Criminal Investigation Division’s Southeast Field Office. “We will continue to aggressively pursue fraudsters who try to defraud the U.S. Army and hold them accountable for exploiting government programs for their own profit.”
The case was investigated by the Department of the Army Criminal Investigative Division and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and David H. Estes.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Arizona and Nevada Men Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jesus Andres Villapudua, a/k/a “Chik” (35, San Luis, Arizona), and Noel Alfredo Garcia, (34, Las Vegas, Nevada) with conspiracy to possess and possession with intent to distribute 50 grams or more of methamphetamine. Both defendants face a mandatory minimum sentence of 10 years, up to life, in federal prison.
According to the indictment, beginning on an unknown date and continuing through February 22, 2024, Villapudua and Garcia knowingly and willfully conspired with each other and other persons to possess with intent to distribute 50 grams or more of methamphetamine and possessed with intent to distribute 50 grams or more of methamphetamine.
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 and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Jeff Chang.
Afton Man Sentenced for Coercion and Enticement of Minor and for Sexually Abusing a MinorRead the Press Release
Today, U.S. District Judge John D. Russell sentenced Caleb Lee Giles, 24, of Afton to 210 months imprisonment for Sexual Abuse of a Minor in Indian Country and Coercion and Enticement of a Minor. Upon his release, Giles will be supervised for life and will also be required to register as a sex offender.
According to court documents, in September 2020, Giles began communicating and aggressively pursuing a romantic relationship with the 13-year-old victim. Giles requested the victim to send him nude photos through a social media application. They began having a sexual relationship in May 2021 when Giles knew the victim was only 14 years old. Giles then started to communicate with a second victim who was only 12 years old. He began requesting nude photos. After bringing alcohol to the 12-year-old, he sexually abused her as well.
Previously released on bond, Giles was taken into custody following his guilty plea in February 2023. Following the sentencing today, Giles will be transferred to a U.S. Bureau of Prisons facility. Giles is a citizen of the Cherokee Nation.
The FBI investigated the case. Assistant U.S. Attorneys Nathan E. Michel and Valeria Luster prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Activity in the U.S. Attorney's OfficeRead the Press Release
Child Pornography
Clayton Tanner, 20, of Cheyenne, Wyoming, was sentenced to 96 months in federal prison for possession of child pornography. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Mar. 14. The federal sentence will be served concurrent to a prior state sentence imposed on Tanner for similar crimes. According to court documents, Cybertips and a local police investigation led officers to Tanner, who is a registered sex offender. Investigators found numerous images of child sexual abuse material on Tanner’s phone. He was then indicted and pleaded guilty to the sole count of the indictment on Oct. 16, 2023. This crime was investigated by the Wyoming Division of Criminal Investigation and Cheyenne Police Department. The case was prosecuted by Assistant U.S. Attorney Christyne M. Martens.
Zayne Ryan Beeson, 23, of Gillette, Wyoming, was sentenced to 80 months in federal prison for receipt of child pornography. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on Mar. 18. According to court documents, the investigation began in March 2023 when Hopkins County Sheriff’s Office in Hopkins County, Texas, received a call of possible online solicitation of a minor. The investigation uncovered sexually explicit images, video and text messages between the underage minor and Beeson. In an interview with agents from the Wyoming Internet Crimes Against Children Task Force, Beeson admitted to the conduct with the minor victim, including asking for and receiving the child pornography. Beeson’s tattoo matched images exchanged via Instagram with the minor victim. He was indicted and pleaded guilty on Oct. 10, 2023. This crime was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the Hopkins County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Christyne M. Martens.
Wildlife Violation
Jonathan Lee Cox, 31, of Twin Falls, Idaho, was sentenced to three years’ probation and ordered to pay $6,100 in restitution for attempted unlawful transportation and sale of illegally possessed wildlife. Cox pleaded guilty to the charge on Dec. 15, 2023. U.S. District Court Judge Alan B. Johnson imposed the sentence on Mar. 11. According to court documents, in Apr. 2023, federal and state law enforcement officers in Teton County began an investigation of illegal shed antler collecting on the Bridger-Teton National Forest and the National Elk Refuge. On May 7, investigators found Cox on the National Elk Refuge with shed elk antlers. Cox admitted to illegal shed antler collecting. This crime was investigated by the U.S. Fish and Wildlife Service and U.S. Forest Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
*Correction** Domestic Violence
In the previous press release, it stated Vincent Acosta was sentenced to 60 months. He was in fact sentenced to 78 months.
Vincent Acosta, age 46, of Moran, Wyoming, was sentenced to 78 months in federal prison for sexual abuse. Senior U.S. District Court Nancy D. Freudenthal imposed the sentence on Mar. 4. According to court documents, Acosta and the victim were seasonal employees working for a business operating in Grand Teton National Park. Park Rangers were called to the employee housing for the business for a report of a sexual assault. Acosta pled guilty to sexually assaulting the victim on Nov. 16, 2023. The crime was investigated by the National Park Service and prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Friday 15 March 2024
‘La Dank DMV’ Crew Member Sentenced to 41 Months for Role in Sophisticated Marijuana Distribution ConspiracyRead the Press Release
WASHINGTON – Isaac Akinduro, 27, of Washington D.C, was sentenced today to 41 months in prison for his role in a sophisticated conspiracy that was responsible for bringing hundreds of pounds of marijuana from California to the metropolitan area, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office’s Criminal and Cyber Division.
Isaac Akinduro, a member of the “LA Dank DMV Crew” who was also known as “Benji” or “Black,” pleaded guilty on October 11, 2023, to conspiracy to distribute and possess with intent to distribute marijuana. In addition to the prison sentence, U.S. District Court Judge Colleen Kollar-Kotelly ordered Akinduro to serve three years of supervised release.
All LA Dank crew members have pleaded guilty to marijuana conspiracy and related firearms charges.
- Abubakr Banire, aka “Swave,” is set to be sentenced on June 24, 2024, for conspiracy to distribute and possess with intent to distribute marijuana, unlawful possession of a machine gun, unlawful possession of a firearm by a felon, and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense.
- Kavon Duncan, aka “Babyk,” was sentenced to 71 months on February 6, 2024, for conspiracy to distribute and possession with intent to distribute marijuana.
- Joe Blyther, aka “Hawk,” is scheduled for sentencing on April 22, 2024. He pleaded guilty on November 9, 2023, to conspiracy to distribute and possess with intent to distribute marijuana, using, carrying, and possessing a firearm during a drug trafficking offense, unlawful possession of a machine gun, and unlawful possession of a firearm by a felon.
- Christopher Akinduro, aka “Oshay,” was sentenced to 74 months in prison on January 17, 2024, for conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana.
- Avery Bost, aka “Avenue,” “Ave,” and “Left,” is scheduled to be sentenced March 22, 2024. He pleaded guilty to conspiracy to distribute and possess with intent to distribute marijuana.
- Omar Butler, aka “O,” was sentenced on March 1, 2024, to 18 months in prison for conspiracy to distribute and possess with intent to distribute marijuana.
- Randall Lance, aka “Mike Lambo,” was sentenced October 10, 2023, to 63 months for conspiracy to distribute over 100 kilograms of marijuana.
These sentences and guilty pleas follow a lengthy investigation led by the FBI’s Washington Field Office and the United States Attorney’s Office for the District of Columbia. Between May of 2021 to on or about December of 2021, crew members operated a sophisticated conspiracy to traffic large amounts of high-grade marijuana from California to the DMV area for distribution to customers. As part of their distribution scheme, members of the crew relied heavily on mass marketing through three dedicated LA Dank websites, as well as social media platforms like Instagram where individual crew members would advertise the LA Dank brand and LA Dank branded marijuana for sale. Crew members also used rental properties to set up stash houses or points of sale that were used to conduct drug distribution operations for a short period of time before moving on to different locations.
The crew was found to possess numerous firearms, including semi-automatic and fully automatic machineguns, and devices used to convert semi-automatic firearms into fully automatic machineguns. In total, approximately 122 pounds of marijuana, 19 firearms, and 10 machinegun conversion devices were recovered. Three of these 19 firearms were discovered to be operational machineguns that had been modified with machinegun conversion devices. Seven of these machinegun conversion devices were found in an “LA Dank” branded bag. Two of these firearms were privately made AR-pistol style machineguns, sometimes referred to as “ghost guns.”
Ledgers and receipts show that the crew trafficked well over 100 kilograms of marijuana into the DMV area for distribution.
Isaac Akinduro, who has four previous gun and firearms convictions, was arrested on August 12, 2022, in Glen Burnie, Maryland.
The prosecutions followed a joint investigation by the FBI Washington Field Office's Cross-Border Task Force in partnership with the Metropolitan Police Department, Prince George’s County Police Department, Anne Arundel County Police Department. The case is being prosecuted by Assistant United States Attorneys Justin F. Song, Meredith E. Mayer-Dempsey, and Thomas Strong.
Wisconsin Man Convicted of Coercion of A MinorRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Todd Stafford, 59, of Bailey’s Harbor, Wisconsin, was convicted of three counts relating to sexual predation of a minor. A jury convicted Stafford of one count of coercion and enticement of a minor and two counts of interstate travel with intent to engage in illicit sexual conduct.
“Mr. Stafford preyed on minors,” said U.S. Attorney Mark Totten. “Today he was held accountable. Those who exploit children and think they can hide should think twice. Protecting our most vulnerable is, and will continue to be, a top priority for our office.”
The jury heard evidence that Stafford met the minor victim, who was under sixteen years of age, online. Stafford twice traveled from Wisconsin to Michigan hoping to engage in sex with the minor. Eventually the minor’s father found conversations and contacted law enforcement. The minor’s father and Iron Mountain Police Department took over communications with Stafford, posing as the minor and making arrangements to meet Stafford again. In late July 2023, Stafford again traveled to Michigan and proceeded to a park where he thought he was going to pick up the minor; law enforcement met him and arrested him.
Stafford was indicted for coercion and enticement of a minor and interstate travel to engage in illicit sexual conduct. Coercion and enticement of a minor carries a mandatory minimum sentence of 10 years. Stafford faces a possible maximum sentence of life in prison.
“The dangers our children face from online predators are very real and happening too often in our communities,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “My office stands with our partners at the Iron Mountain Police Department in our commitment to vigorously investigate those who commit crimes against children.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was tried by Assistant U.S. Attorneys Ted Greeley and Hanna Rutkowski and investigated by the FBI and the Iron Mountain Police Department.
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Whitefish interior designer sentenced to more than four years in prison, ordered to pay more than $900,000 restitution for fraud schemeRead the Press Release
MISSOULA — A Whitefish interior designer who admitted to defrauding customers of approximately $900,000 and using the money for personal expenses was sentenced on March 14 to four years and three months in prison, to be followed by three years of supervised release, and ordered to pay $933,679 restitution, U.S. Attorney Jesse Laslovich said today.
The defendant, Jennifer Michele Helm, aka Jennifer Michele, 45, pleaded guilty in November 2023 to wire fraud and to aggravated identity theft.
U.S. District Judge Dana L. Christensen presided.
In court documents and statements in court, the government alleged that beginning as early at 2016, Helm, while doing business as Sage Interior Design, LLC, Interior Design Service, and Jennifer Michele LLC, defrauded numerous customers. Her scheme ensnared more than 20 victims. A few of the victims came forward after Helm pleaded guilty, and Helm defrauded four more victims after her interview with the FBI in 2021, when she presumably knew she was a target of a federal criminal investigation.
To execute the scheme, Helm entered into agreements with customers to provide goods and services, usually by promising to order furnishings and fixtures as part of construction and remodeling projects. In some instances, Helm presented her clients with invoices for items she knew she had not ordered and that clients never received. In addition, Helm convinced two clients, a married couple, to give her their credit card number, which she was authorized to use to make purchases on the couple’s behalf. Rather than make those purchases, Helm used the credit card and directed the proceeds of the transactions into her bank account. When interviewed by the FBI, Helm said she was responsible for any misspent funds.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case. The FBI conducted the investigation.
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Virginia business owner pleads guilty to tax fraud for failing to pay employees’ withheld taxesRead the Press Release
ALEXANDRIA, Va. – A Great Falls man pleaded guilty today to failing to pay over to the IRS the taxes withheld from his employees’ paychecks.
According to court documents and statements made in court, Rick Tariq Rahim, 55, owned and operated several businesses, including laser tag facilities and an Amazon reseller. From 2015 to 2021, Rahim did not pay to the IRS the taxes withheld from his employees’ paychecks or file the required quarterly employment tax returns reporting those withholdings.
Additionally, between October 2010 and October 2012, Rahim filed two personal income tax returns on which he reported owing substantial taxes, but did not pay the taxes he reported were due. When the IRS attempted to collect the unpaid taxes, Rahim submitted a false Form 433-A, Collection Information Statement, which omitted valuable assets he owned, including a helicopter, a 2006 Bentley, a 2008 Lamborghini, and real property in Great Falls, Virginia. Approximately two weeks later, Rahim transferred ownership of that Great Falls property to his wife. He also paid personal expenses from his business bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. In addition, Rahim withdrew more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank.
Rahim has not filed a personal income tax return since 2012 despite earning more than $34 million in gross income.
In total, Rahim has caused a loss to the IRS of at least $1,844,489.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. Sentencing is scheduled for June 21.
IRS Criminal Investigation is investigating the case.
Assistant U.S. Attorney Kimberly Shartar of the Eastern District of Virginia and Trial Attorneys William Montague and Ashley Stein of the Justice Department’s Tax Division are 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. 1:23-cr-173.