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26 April 2024
Labelle Felon Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Angel Gabriel Hernandez (29, LaBelle) today pleaded guilty to possessing a firearm as a previously convicted felon. Hernandez faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, on August 9, 2023, Hernandez sold a Beretta 9mm handgun to an undercover ATF agent. As a convicted felon who previously served time in Florida state prison for burglary, Hernandez is prohibited from possessing firearms under federal law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Simon Eth.
La Crosse Man Sentenced to 2 ½ Years for Possessing Stolen Firearm as a FelonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Briante Banks, 31, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 2 ½ years in federal prison for possessing a firearm as a felon. Banks pleaded guilty to this charge on February 6, 2024. He was also ordered to serve a three-year term of supervised release.
On May 2, 2023, Banks was arrested for violating the conditions of his state probation. During a post-arrest search, Banks was found to be in possession of a loaded Smith & Wesson 9mm handgun. Law enforcement determined that the handgun had previously been stolen from a La Crosse area gun shop. Banks is legally prohibited from possessing firearms because he has prior felony convictions for drug trafficking.
At sentencing, Judge Conley noted that Banks has been under state supervision since 2014 and has largely failed to comply. Judge Conley told Banks that he had so far failed to learn any lessons from his past and unless he made good use of his time in prison and engaged with his supervising probation officer after release, he would likely end up back in prison.
The charge against Banks was the result of an investigation conducted by the La Crosse Police Department; La Crosse County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Kenton County Woman Sentenced for Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky. – An Elsemere, Ky., woman, Nalisha Nichole Stewart, 38, was sentenced on Thursday, by U.S. District Judge David Bunning, to 126 months in prison, for possession with intent to distribute methamphetamine.
According to her plea agreement, in May and June 2023, law enforcement coordinated two controlled purchases of methamphetamine from Stewart. The first purchase was tested to contain approximately 29.2 grams of methamphetamine. Before the second controlled purchase, law enforcement conducted a traffic stop on Stewart’s vehicle and recovered an additional 24.832 grams of methamphetamine.
Under federal law, Stewart must serve 85 percent of her prison sentence. Upon her release from prison, he will be under the supervision of the U.S. Probation Office for six years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division; and Chief Jeff Mallery, Florence Police Department, jointly announced the sentencing.
The investigation was conducted by the DEA and Florence Police Department Drug Unit. Assistant U.S. Attorney Kyle Winslow is prosecuting the case on behalf of the United States.
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Kansas Man Indicted for Stealing 41 FirearmsRead the Press Release
A Kansas man was arrested yesterday while crossing the border from Mexico back into the United States after being indicted by a federal grand jury for stealing 41 firearms from a gun store in Raytown, Missouri.
A federal grand jury indictment was unsealed today charging Frank Guereca, 22, of Olathe, with one count of stealing firearms from a federal firearms licensee. Guereca made his initial court appearance in El Paso, Texas, today in the Western District of Texas.
“Today’s charges demonstrate the power of crime gun intelligence and cooperation with Mexican law enforcement to stem the flow of firearms from the United States into Mexico — where they arm the violent cartels that flood our communities with deadly drugs,” said Deputy Attorney General Lisa Monaco. “By submitting information about recovered firearms to ATF’s eTrace system, Mexican law enforcement helped us link the alleged theft of firearms in Missouri to their international transport and recovery in Mexico.”
“Unlawful firearms trafficking is not a victimless crime,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Guns trafficked to Mexico often end up in the hands of violent cartels that use them to hurt people and commit crimes. Here, ATF’s agents and National Tracing Center staff quickly used our eTrace system to generate critical leads. As today’s indictment shows, working jointly with our Mexican and domestic law enforcement partners, ATF can help stop traffickers. That way, we protect communities on both sides of the border.”
“We are committed to stanching the flow of illegal firearms on the black market, whether they’re trafficked within the United States or smuggled into Mexico,” said U.S. Attorney Teresa Moore for the Western District of Missouri. “Stolen firearms often supply black market dealers and fuel more crime and violence. It’s critical that we hold to account everyone involved along this chain of criminal activity.”
The federal indictment alleges that Guereca, aiding and abetting others, stole the firearms on June 16, 2023. All of the stolen firearms were pistols of various manufacturers and calibers.
According to court documents, Guereca and at least two others used a stolen U-Haul to conduct the firearms theft. One of the stolen pistols from the gun store was recovered in Tracy, California, on Nov. 14, 2023. A second stolen pistol was recovered in Chihuahua, Mexico, on Dec. 19, 2023. A third stolen pistol was recovered in Juarez, Mexico, on Feb. 6.
Guereca was arrested yesterday, as he attempted to cross back into the United States from Mexico. Guereca is scheduled for his initial court appearance today at 2:30 p.m. in El Paso, Texas (4:30 p.m. ET) before U.S Magistrate Judge Miguel Torres of the Western District of Texas. According to U.S. Customs and Border Protection records, Guereca had previously crossed the border approximately 20 times since the burglary and theft on June 16, 2023.
ATF and the Raytown Police Department investigated the case.
Assistant U.S. Attorney Bradley K. Kavanaugh for the Western District of Texas is prosecuting 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
KC Police Officer Indicted for $300,000 Charity Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., police officer who ran an anti-crime charity has been indicted by a federal grand jury for a scheme in which he spent more than $300,000 in donations for his own personal expenses.
Aaron Wayne McKie, 46, was charged in a 16-count indictment returned under seal on Tuesday, April 23. The indictment was unsealed and made public today upon McKie’s arrest and initial court appearance.
McKie has worked as a police officer for the Kansas City, Mo., Police Department for 24 years, since April 2000. He was assigned as a police officer to the Crime Free Multi-Housing section from 2002 through 2023.
McKie served from 2009 to 2023 as president of Mid-America Crime Free, Inc. (MACF), a non-profit organization that claimed to provide training to persons in the rental housing industry and promote anti-crime programs. He was an officer of the charity for three years prior, from 2006 to 2009.
The federal indictment alleges that McKie devised a scheme to defraud MACF and its donors that began in July 2009 and lasted until October 2023. According to the indictment, individuals and businesses contributed $387,620 to MACF, not including in-kind donations. McKie spent at least $320,060 for his own personal purposes.
The biggest source of MACF funds was an annual golf tournament, “Fairways 4 Fuzz Golf Tournament.” Individuals and businesses donated both money and in-kind donations, such as food and beverages, to MACF via the golf tournament. At least 121 donors have been identified.
From 2009 to 2023, the flyers soliciting donations and players for the tournament claimed the funds raised would enable MACF to provide free seminars to owners of rental properties and train police officers. In reality, the indictment, those claims were false. The Kansas City Police Department paid the salaries and expenses of Crime Free Multi-Housing unit officers who may have provided training to landlords; McKie used the majority of MACF funds for personal spending; and the IRS had revoked the organization’s tax exempt status in 2010.
The indictment alleges that McKie used the MACF bank account as his own personal account. McKie allegedly spent most of the money donated for charitable purposes in the following ways:
- $125,989 in travel, entertainment, restaurants, and bars;
- $57,278 in retail and luxury;
- $41,040 in transfers to personal accounts;
- $36,874 in cash;
- $27,279 pre-2016;
- $23,298 in household expenses;
- $8,299 in personal tax payments.
The federal indictment charges McKie with 14 counts of wire fraud and two counts of money laundering.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jefferson County Man Sentenced to More Seven Years in Prison for Illegal Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a Jefferson County man for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Madeline H. Haikala sentenced Terrell Corey McMullin, 31, of Fairfield, to 87 months in prison. In October 2023, a jury convicted McMullin of being a felon in possession of a firearm.
According to evidence presented at trial, on February 1, 2022, a Pleasant Grove police officer conducted a traffic stop on McMullin. The officer attempted to make contact with McMullin, but he sped away. The chase ended when the driver lost control of the vehicle and wrecked a short distance later. McMullin got out of the vehicle and ran. The pursuit ended when McMullin crossed into the Fairfield city limits. During the search of the abandoned vehicle, the officer found a Glock 9mm pistol with an installed “Glock switch” – a device designed to illegally convert a semiautomatic Glock pistol into a fully automatic machine gun – in the driver’s seat. The Glock was later determined to be stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
The ATF investigated the case along with the Pleasant Grove Police Department. Assistant U.S. Attorneys Michael A. Royster and William R. McComb are prosecuting the case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 22 was:
Donnell Deriky White, 29, of Billings, on charges of attempted possession with intent to distribute cocaine and possession with intent to distribute cocaine. If convicted of the most serious crime, White faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. White was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 23-152.
Charles Jesse Sanchez, Jr., 58, of Lame Deer, on charges of conspiracy with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Sanchez faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Sanchez was detained pending further proceedings. The Bureau of Indian Affairs conducted the investigation. PACER case reference. 24-30.
Sergio Rene Tagaban, 54, of Calexico, California, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Tagaban faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Tagaban was detained pending further proceedings. The U.S. Postal Inspection Service conducted the investigation. PACER case reference. 24-34.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Henryetta Resident Sentenced for Child Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Zion Alexander Canard, age 25, of Henryetta, Oklahoma was sentenced to 24 months in prison, followed by a 5-year term of supervised release, for one count of Child Abuse in Indian Country.
Canard was found guilty of child abuse following a federal bench trial on August 14, 2023. During the trial, the United States presented evidence that on September 12, 2022, Canard abused an infant left in his care, resulting in a brain hemorrhage, lacerations, and bruising. The crime occurred in Hughes County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The guilty verdict was the result of investigations by the Muscogee Nation Lighthorse Police, the Tulsa Police Department, the Glenpool Police Department, and the Federal Bureau of Investigation.
The Honorable Keith Starrett, Senior U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by appointment, presided over the hearing in Muskogee. Canard will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Caila M. Cleary represented the United States.
Gore Resident Sentenced for Voluntary Manslaughter, Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Gary Lynn Armer, Jr., age 19, of Gore, Oklahoma, was sentenced to 87 months in prison for one count of Voluntary Manslaughter in Indian Country, and 87 months in prison for one count of Assault with a Dangerous Weapon with the Intent to do Bodily Harm in Indian Country. The sentences are to be served concurrently.
The charges arose from an investigation by the Federal Bureau of Investigation and the Sequoyah County Sheriff’s Office.
On October 19, 2022, Armer pleaded guilty to a two-count felony information. According to investigators, on March 26, 2022, Armer drove to a residence outside Gore, Oklahoma, and confronted an individual there. During the ensuing argument, Armer fatally shot the victim. Armer then fired upon a second individual sitting in a nearby vehicle, causing serious bodily injury, before fleeing the scene. Armer was arrested a short time later by investigating officers, who located Armer at his residence. The crimes occurred in Sequoyah County, which is within the boundaries of the Cherokee Nation Reservation and the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing. Armer will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Gary Woman Sentenced to 300 Months in PrisonRead the Press Release
HAMMOND- Briana White, age 29, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to armed bank robbery and murder resulting from the discharge of a firearm during the bank robbery, announced United States Attorney Clifford D. Johnson.
White was sentenced to 300 months in prison followed by 2 years of supervised release.
According to documents in the case, White’s convictions stem from a June 11, 2021, bank robbery in Gary, Indiana. White, along with, Hailey Gist-Holden, and two other co-defendants formulated a plan to rob the bank. White was involved in the planning stages and her role included facilitating a three-way call between herself, Gist-Holden and the getaway driver during the robbery and getaway. She also listened to a police scanner during the robbery to advise her co-defendants about police response. On his way to entering the bank, Gist-Holden, at point blank range, shot and killed the bank’s security guard who was outside the bank at the time. Approximately $9,000 was taken during the armed bank robbery.
Previously, co-defendant Gist-Holden was found guilty by a jury of armed bank robbery and murder resulting from the discharge of a firearm during the robbery. For his role in the offense, Gist-Holden was sentenced to imprisonment for two life sentences. White is the last of the defendants to be sentenced for this crime.
This investigation was led by the Federal Bureau of Investigation Gang Response Investigative Team with the assistance of the Lake County Sheriff’s Department; the Lake County Prosecutor’s Office; the Indiana State Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gary Police Department. Additional investigative assistance was provided by the FBI Chicago, FBI Miami, and FBI Atlanta along with the Georgia State Police, the Atlanta Police Department, and the Lowndes County (GA) Sheriff’s Department. In addition, the U.S. Attorney’s Offices in the Northern District of Georgia, Middle District of Georgia, and Middle District of Florida were involved in this cooperative effort. This case was prosecuted by Assistant United States Attorneys Caitlin M. Padula and Michael J. Toth.
This case is also 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.
Fugitive Arrested, Arraigned in Multi-State Burglary RingRead the Press Release
PROVIDENCE, RI – Yoel Andres Barrera Garrido, 20, of New York, a fugitive wanted since December 2023 for his alleged role in a sweeping, multi-state burglary ring that primarily targeted business owners of Asian descent has been arrested, arraigned, and ordered detained in federal custody, announced United States Attorney Zachary A. Cunha.
Barrera Garrido, a Chilean national, was arrested in Grove City, OH, on March 11, 2024. He had been sought since December 13, 2023, when a federal indictment was returned against him; he was subsequently charged in a superseding indictment on April 3, 2024, charging him with conspiracy to commit interstate transportation of stolen property and two counts of attempt to commit interstate transportation of stolen property.
It is alleged that Barrera Garrido participated in a conspiracy with three other individuals to identify and surveil business owners, typically of Asian descent, at the victims’ residences and businesses. Members of the conspiracy then allegedly executed well-planned burglaries at their victims’ homes in Rhode Island, Massachusetts, New Hampshire, New Jersey, Pennsylvania, Delaware, Wisconsin, and Florida, typically targeting large sums of money, jewelry, credit and debit cards, and other valuable items.
As alleged in charging documents, in addition to surveilling individuals, the conspirators used drones and GPS trackers placed on vehicles to monitor victim’s movement and identify times when they were away from their residences. They are also alleged to have used drones and lookouts to monitor law enforcement activity, and to have had a getaway car and driver at the ready while other conspirators broke into and burglarized the residences.
Barrera Garrido was ordered detained on Thursday following his return to Rhode Island and arraignment in U.S. District Court.
Other alleged members of the conspiracy, Mohammed Islam, 29, of Stamford, CT, a Bangladesh national, Basneyareth Rebollar Martinez, of Stamford, CT, a Mexican national, and Tania Valentina Espitia Cuellar, 24, a Columbian national whose local home address is unknown, have pleaded guilty in this matter and are detained while awaiting sentencing. The defendants’ sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Jorge Andres Cardenas Murillo, 30, of College Point, NY, was released on a GPS bracelet while awaiting trial on charges on charges of conspiracy to commit interstate transportation of stolen property and two counts of attempt to commit interstate transportation of stolen property. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorneys Ly T. Chin and Julianne Klein.
The matter was investigated by Homeland Security Investigations, with the assistance of the Warwick and Smithfield, RI Police Departments; Shrewsbury and Framingham, MA Police Departments; Gorham, NH Police Department; Stamford, Wallingford, and Westport, CT Police Departments; West Allis, WI Police Department; New Castle County, DE Police Department; Manalapan, NJ Police Department; New York City Police Department; Jacksonville and Flagler County Police Departments; Massachusetts State Police; Pennsylvania State Police; Grove City OH Police Department; and the United States Postal Inspection Service.
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Four More Co-Conspirators Charged in Alleged Nationwide Abusive-Trust Tax Shelter SchemeRead the Press Release
A superseding indictment was returned this week by a federal grand jury in Denver charging four people with conspiring with Larry Conner and Timothy McPhee to defraud the IRS. Connor and McPhee had previously been indicted for conspiring to defraud the IRS related to the same scheme in September 2023.
According to the superseding indictment, from February 2018 until September 2023, Marcia Predmore, Roderick Prescott, Suzanne Thompson and Weldon Wulstein allegedly conspired with Conner, McPhee and others to promote, sell and implement an abusive-trust tax shelter scheme. The superseding indictment further charges Thompson and Wulstein with assisting in the preparation of false income tax returns on behalf of clients who used the shelter. Predmore and McPhee had previously been charged with tax evasion related to their use of the tax shelter to conceal their own income from the IRS. Conner and McPhee had also previously been charged with assisting in the preparation of false income tax returns on behalf of clients who used the shelter.
According to the superseding indictment, the shelter was marketed as a way for business owners to avoid paying federal income taxes on nearly all of their business income. Conner and McPhee allegedly instructed clients to use the fraudulent tax shelter by assigning nearly all of their business income to a series of sham trusts and a purported “private family foundation” to create the illusion that the income did not belong to the client. Conner and McPhee then allegedly referred the clients to handpicked tax-return preparers for the preparation of false individual income tax returns that did not report the income assigned to the trusts or that was donated to the foundation. In reality, however, the clients allegedly retained full control and use of that income. Although the income assigned to the sham trusts was reported on tax returns for the trusts, those tax returns allegedly offset the income with improper deductions, including donations, to report $0 in taxes owed.
As to Prescott, the superseding indictment charges that through his business, The Stewardship Institute, Prescott promoted the “private family foundation” that was advertised as the final step of the tax shelter. Prescott allegedly taught about the foundation at workshops he hosted with Conner, McPhee, Predmore and others. Prescott allegedly advised clients how to spend the funds “donated” to their private family foundations for their own personal use and to disguise the transactions to make them appear charitable. Prescott also allegedly oversaw the preparation of the instruments used to create the so-called private family foundations.
The superseding indictment alleges that Conner, McPhee and Predmore referred clients to Thompson for bookkeeping services and Wulstein for return preparation services. Thompson allegedly operated a bookkeeping firm called The CFO Agency; Wulstein allegedly operated a return preparation firm called Wulstein Financial Services. Thompson and her employees allegedly prepared financial statements for clients who used the abusive-trust tax shelter and sent those financial statements to Wulstein for the preparation of false tax returns.
If convicted, each defendant faces a maximum penalty of five years in prison for conspiring to defraud the United States. Conner, McPhee, Thompson and Wulstein also face a maximum penalty of three years in prison for each count of assisting in the preparation of a false tax return. McPhee and Predmore face a maximum sentence of five years in prison for each count of tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants in Firearms Trafficking Ring SentencedRead the Press Release
ATLANTA – A firearms trafficking ring has been dismantled and four people have been sentenced to years in prison for conspiring to buy guns in the metro Atlanta area that were later smuggled to the Dominican Republic.
“Firearms traffickers present an immediate danger to communities within and outside our district,” said U.S. Attorney Ryan K. Buchanan. “We are committed to working with our federal, state, local, and international partners to disrupt the illegal flow of firearms by identifying and prosecuting those who illegally purchase and traffic these weapons.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice,” said Assistant Special Agent in Charge Alicia Jones, Atlanta Field Division. “This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results.”
“These defendants took steps to disguise dozens of illegally acquired firearms using everyday household items further hidden in shipping containers. Proactive and collaborative law enforcement played a vital role in thwarting the illicit trafficking of deadly weapons both in the United States and overseas,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “I commend HSI New York’s Border Enforcement Security Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Attorney’s Office for the Northern District of Georgia for their unwavering commitment to the public’s safety.”
“These sentences were made possible through close coordination between our federal, local, and international law enforcement partners,” said Special Agent Edwin Lopez, Homeland Security Investigations Attaché, U.S. Embassy, Santo Domingo. “Our thanks especially goes out to the Dominican Republic’s Transnational Criminal Investigative Unit (TCIU) which contributed significantly to the final outcome of this investigation.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In 2021, Jonathan Hiraldo Abreu contacted Cornel Rashard Miley to inquire about a firearm Miley advertised for sale. Hiraldo Abreu met Miley in Georgia to purchase the gun. Miley then agreed that he and his wife, Charqweshia Sierra Miley, would acquire additional firearms for Hiraldo Abreu in exchange for a premium paid for each gun. To obtain the additional guns, the Mileys repeatedly deceived licensed firearms dealers by falsely certifying at the point of sale that they were purchasing the firearms. In fact, Hiraldo Abreu was the actual purchaser who provided the money to the Mileys and told them which guns to buy. Within less than seven months, the Mileys purchased at least 73 firearms for Hiraldo Abreu, all of which were Glock 9 mm semiautomatic pistols.
Hiraldo Abreu traveled from Pennsylvania to Georgia in November 2021, December 2021, February 2022, and April 2022 to pick up guns from the Mileys. In June 2022, Hiraldo Abreu recruited his cousin, Jose Munoz, who was living in Rhode Island, to manage the gun purchases in his place. Munoz met Hiraldo Abreu in Pennsylvania, traveled to Georgia, directed the Mileys’ purchase of 22 firearms, and then returned to Hiraldo Abreu’s home. Within approximately three weeks, nine of the firearms that the Mileys purchased under Munoz’s supervision were recovered during an x-ray inspection of a shipping container in Santo Domingo, Dominican Republic. The guns had been stashed inside the container with various household goods without having been declared or approved for export.
Although the Mileys were Georgia residents when they bought guns for Hiraldo Abreu between November 2021 and April 2022, they relocated to Arizona in June 2022. Hiraldo Abreu paid the Mileys to fly back to Georgia so they could falsely claim Georgia residency and buy more guns for him in July 2022. After returning to Arizona, the Mileys were arrested when officers observed them operating a vehicle with a fictitious license plate. The Mileys were armed, and a search of their vehicle uncovered more than 3,200 rounds of ammunition, nearly three dozen handgun magazines, and body armor.
After the defendants pleaded guilty to conspiracy to make a false statement to a federally licensed firearms dealer in connection with the acquisition of a firearm, U.S. District Judge Sarah E. Geraghty sentenced them as follows:
- Jonathan Hiraldo Abreu, 31, of Reading, Pennsylvania, was sentenced to four years, two months in prison to be followed by two years of supervised release.
- Charqweshia Sierra Miley, 33, of Lithonia, Georgia and Golden Valley, Arizona, was sentenced to two years, three months in prison to be followed by two years of supervised release.
- Cornel Rashard Miley, 31, of Lithonia, Georgia and Golden Valley, Arizona, was sentenced to two years, three months in prison to be followed by two years of supervised release.
- Jose Munoz, 21, of Cranston, Rhode Island, was sentenced to one year and one month in prison to be followed by two years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations with assistance from the New York City Police Department, the Department of Commerce Bureau of Industry and Security, and the Dominican Republic’s customs authority, Dirección General de Aduanas.
Assistant U.S. Attorney Theodore S. Hertzberg 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former flooring company bookkeeper sentenced to three years in prison for scheme to steal from company co-ownerRead the Press Release
Seattle – The former bookkeeper of a Mukilteo, Washington, flooring company was sentenced today in U.S. District Court in Seattle to three years in prison for four counts of wire fraud, one count of aggravated identity theft, and one count of conspiracy, announced U.S. Attorney Tessa M. Gorman. Jodi Hamrick, who now resides near Memphis, Tennessee, was convicted following a five-day jury trial. At the sentencing hearing U.S. District Judge Richard A. Jones said Hamrick “had a pattern and practice of defrauding employers… and continued her manipulation for personal gain.” Judge Jones noted Hamrick “was motivated by pure greed. There was no justification, no hardship, no financial need.”
According to records filed in the case and testimony at trial, Hamrick conspired with David M. Gluth, the co-owner of Gluth Contract Flooring, to steal from the company and defraud the silent partner who had put up the money for the business. In the jury trial, prosecutors detailed how Hamrick and Gluth carried out the scheme by embezzling more than $400,000 from the commercial flooring business. Between 2011 and 2016, Gluth and Hamrick raided the company accounts to pay for everything from a home mortgage, to luxury vacations, to Nordstrom bills.
The two not only raided company funds, they also defrauded financial institutions by taking out loans without the knowledge or permission of the company’s co-owner. The two used the company funds for a variety of personal expenses. The lies and deceit in this scheme involved forged signatures, forged documents, altered records, secret bank accounts, secret credit cards, false bookkeeping entries, and false statements in declarations and court filings. The evidence in the case included years of Skype instant messages between Hamrick and Gluth, showing the planning and execution of the fraud in minute detail.
Ultimately, the company co-owner had to go to court to try to get the truth about the embezzlement from the company. The flooring company went bankrupt in 2016, and the victimized business partner was left with nothing but debt.
In imposing the sentence requested by prosecutors, Judge Jones highlighted the fact that Hamrick had stolen from an earlier employer but was not prosecuted for that theft. “You didn’t learn from it, you used it as an opportunity to get an advanced degree in theft,” Judge Jones said.
Judge Jones will determine how much restitution Hamrick must pay at a hearing scheduled for June 21, 2024. Hamrick will be on supervised release following prison for three years.
Gluth was charged in November 2020, and pleaded guilty in January 2021. Gluth was sentenced in 2021 to two years in prison and agreed to a restitution figure of $325,000.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Michael Dion and Special Assistant United States Attorney Jessica M. Ly.
Former Teacher’s Aide Sentenced for Using the Internet to Attempt to Entice a Minor to Engage in Sexual ConductRead the Press Release
LONDON, Ky. – A Lily, Ky., man, James Samuel Jones, 39, was sentenced on Thursday, by U.S. District Judge Robert Wier, to 20 years in prison, for the distribution of child pornography.
According to his plea agreement, on September 13, 2022, Jones, through his Yahoo email account, distributed a video depicting two minor victims engaged in sexual activity. The video was sent to an email account believed to have child pornography and sent with the expectation of receiving child pornography in return for the distributed video.
Under federal law, Jones must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, U.S. Secret Service; and Russell Coleman, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by U.S. Secret Service and Kentucky Attorney General’s Office. Assistant U.S. Attorney Jason Parman is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Teacher’s Aide Sentenced for Using the Internet to Attempt to Entice a Minor to Engage in Sexual ConductRead the Press Release
LEXINGTON, Ky. – A Danville, Ky., woman, Ellen Phillips, formerly known as Ellen Shell, 38, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 188 months in prison, for using the internet to attempt to entice a minor to engage in sexual conduct.
Phillips, who at the time of her offenses was employed as a teacher’s aide, was conducting sexual relationships with numerous teenage boys in the Boyle and Garrard County areas. Phillips would communicate with the victims via Snapchat, Facebook, or text messaging; and in many instances, she would meet the victims for the purpose of engaging in sexual activity. According to Phillips’ plea, she engaged in sexual activity with multiple minors at the same time.
In her plea agreement, Phillips specifically admitted that on December 20, 2022, she attempted to entice a 15-year-old minor to engage in sexual activity. In this conversation, Phillips messaged the victim using Facebook and repeatedly attempted to get the victim to sneak out of his house for sexual activity. When the victim said he could not leave, Phillips offered alcohol and oral sex to the minor and offered excuses the victim could tell his mother as to why he needed to leave his home.
Under federal law, Phillips must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP); Willie Skeens, Garrard County Sheriff; and Chief Tony Gray, Danville Police Department, jointly announced the sentence.
The investigation was conducted by the HSI, KSP, Garrard County Sheriff’s Office, and Danville Police Department. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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- Former Social Security Administration Employee Facing Federal Charges for Fraudulent Telework, Emergency Childcare, and Medical Leave Schemes
Former Post Office Employee Indicted for Mail TheftRead the Press Release
BOSTON – A former United States Postal Service (USPS) employee has been indicted by a federal grand jury of theft of mail and theft of government funds.
Michael Murray, 36, of Lynn, has been indicted on one count of theft of mail matter by an employee and one count of theft of government money. Murray was arrested this morning and will appear in federal court in Boston at 11 a.m. today.
According to the indictment, from around September 2022 through July 2023, Murray worked as a USPS postal clerk at the Beach Street Post Office in Revere and the Melrose Post Office. From around April 2023 through July 2023, Murray allegedly used his official position to steal the contents of hundreds of pieces of mail entrusted to him, including gift cards, cash and checks totaling approximately $3,422. It is further alleged that, during the same time period, Murray stole and fraudulently negotiated USPS money orders by generating them for postal customers for his own use totaling approximately $5,131.
The charge of theft of mail by employee provides a sentence of up to five years in prison, three of supervised release and a fine of up to $250,000. The charge of theft of government funds valuing over $1,000 provides for a sentence of up to 10 years in prison, three of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of the Public Corruption & Special Prosecutions Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Mexican judicial officer convicted for hiring drivers to transport drug loadsRead the Press Release
BROWNSVILLE, Texas – A federal jury has returned a guilty verdict against a Mexican citizen residing in the Brownsville area for conspiracy with intent to deliver cocaine, heroin and fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before finding Gilberto Almaraz-Muniz, 55, guilty on one count of conspiracy and three counts of possession with intent to distribute various controlled substances following a five-day trial.
Law enforcement conducted a narcotics seizure in Klegberg County on March 10, 2022. At that time, authorities arrested co-conspirator Pedro Venegas Jr., 24, Brownsville. Once law enforcement noticed tampering within the engine, they took his truck to a secure location to remove the engine’s manifold and other components. The exposed internal workings of the engine revealed 23 bundles of heroin, cocaine and fentanyl. The truck’s 6-cylinder engine had modifications to appear as an 8-cylinder to keep the drugs hidden within those areas.
Further evidence showed co-conspirator Jetzrael Saldana, 25, Brownsville, recruited Venegas as driver on behalf of Almaraz-Muniz who was a law enforcement official in Mexico and operated as the drug supplier. At trial, witnesses testified that Almaraz-Muniz would ask Saldana to recruit drivers to take drug loads past the immigration checkpoint for distribution in Houston and other areas. Almaraz would then arrange for the vehicles to be titled in the drivers’ names and have them do “dry runs” crossing the port of entry several times before hiding drugs within the vehicle.
The jury also heard evidence on two other drug seizures where Almaraz-Muniz hired drivers to deliver narcotics. The seizures included 83 kilograms of liquid meth at the Gateway International bridge in Brownsville on July 17, 2022, and a 24-kilogram seizure of black tar heroin in Robstown Sept. 26, 2022.
“This case removed over 100 kilograms off our streets,” said Hamdani. “My office will continue to prosecute not only those individuals caught transporting dangerous drugs but also those that provide and involve others in the illicit drug trade.”
Venegas and Saldana pleaded guilty June 1, 2022, and July 26, 2023, respectively, and their sentencing hearings are set for May 1 and May 8.
U.S. District Judge Rolando Olvera presided over the trial and has set sentencing for July 17 for Almaraz-Muniz. At that time, he faces up to life imprisonment and a possible fine of up to $10 million.
Almaraz-Muniz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the South Texas Narcotics Task Force in Kingsville and Homeland Security Investigations. Assistants U.S. Attorneys Oscar Ponce and Victoria Aranda are prosecuting the case.
Former Massachusetts State Police Lieutenant Sentenced to Five Years in Prison for Fraudulent Overtime SchemeRead the Press Release
BOSTON – Former Massachusetts State Police (MSP) Lieutenant Daniel J. Griffin was sentenced today in connection with an overtime scheme dating back to 2015.
Daniel Griffin, 60, of Belmont, was sentenced by U.S. District Court Judge Margaret R. Guzman to five years in prison and three years of supervised release. Griffin was also ordered to pay restitution in the amount of $329,163, a fine in the amount of $176,700, as well as a $2,100 special assessment. In December 2023, Griffin was convicted of one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud.
Prior to trial, in November 2023, Griffin pleaded guilty to four additional counts of wire fraud and 11 counts of filing false tax returns in connection with defrauding a private school attended by two of his children from at least 2016 to 2019 by concealing his income and filing materially misleading financial aid applications.
Co-conspirator MSP Sergeant William W. Robertson was convicted of one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud. Robertson is scheduled to be sentenced on April 30, 2024.
From 2015 through 2018, Griffin, Robertson and other troopers in the Traffic Programs Section at State Police Headquarters in Framingham, conspired to steal thousands of dollars in federally funded overtime by regularly arriving late to, and leaving early from, overtime shifts funded by grants intended to improve traffic safety. During the course of the conspiracy, Griffin made and approved false entries on forms and other documentation to conceal and perpetuate the fraud.
When the MSP overtime misconduct came to light in 2017 and 2018, Griffin, Robertson and their co-conspirators took steps to avoid detection by shredding and burning records and forms. After an internal inquiry regarding missing forms, Griffin submitted a memo to his superiors that was designed to mislead them by claiming that missing forms were “inadvertently discarded or misplaced” during office moves.
Additionally, Griffin spent significant time running his security business, Knight Protection Services, during hours that he was collecting regular MSP pay and overtime pay. From 2012 to 2019, Griffin collected almost $2 million in KnightPro revenue. Of that total, Griffin hid over $700,000 in revenue from the IRS and used hundreds of thousands of dollars in KnightPro income to fund personal expenses, such as golf club expenses, car payments, private school tuition and expenses related to his second home on Cape Cod.
In November 2023, Griffin pleaded guilty to defrauding a private school attended by two of his children from at least 2016 to 2019 by concealing his KnightPro income and filing materially misleading financial aid applications, which understated his income and assets by hundreds of thousands of dollars. Despite Griffin’s lucrative MSP salary and KnightPro business, Griffin obtained over $175,000 in financial aid from the private school over the course of several years.
The United States Attorney’s Office for the District of Massachusetts; Christopher A. Scharf, Special Agent-in-Charge, Department of Transportation Office of Inspector General, Northeast Region; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Dustin Chao, Chief of the Public Corruption Unit and Assistant U.S. Attorney Adam Deitch of the Public Corruption Unit prosecuted the case.
Former Maryland Tax Preparer Sentenced for Preparing False ReturnsRead the Press Release
A Minnesota woman was sentenced today to 15 months in prison for preparing false tax returns on behalf of her clients.
According to court documents and statements made in court, Kymberly Starr owned and operated The Tax Lady, also known as 5 Starr Business Solutions, a tax preparation business in Maryland. From 2013 to at least 2018, Starr inflated her clients’ tax refunds by preparing and submitting to the IRS false tax returns that claimed fraudulent tax deductions and fictitious business profits and losses. Starr’s conduct resulted in approximately $400,000 of tax loss to the IRS.
Additionally, in 2020 and 2021, Starr obtained over $83,000 in COVID-19-related Paycheck Protection Program (PPP) loans by submitting fabricated IRS forms containing purported bogus businesses and business income. Starr also used fabricated federal tax forms to file a false claim for unemployment insurance with the Maryland Department of Labor, from which she received over $55,000.
In addition to her prison sentence, U.S. District Judge Theodore D. Chuang for the District of Maryland ordered Starr to serve one year of supervised release and to pay approximately $539,043 in restitution to the United States and Maryland.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Shawn Noud and Ezra Spiro of the Tax Division prosecuted the case.
Former Grade School Teacher Sentenced to 10 Years in Federal Prison for Asking Minors for Explicit Images on SnapchatRead the Press Release
EAST ST. LOUIS, Ill. – A district judge sentenced a former elementary school teacher to 10 years’ imprisonment after he admitted to soliciting child sexual abuse material (CSAM) from minors.
Jonathan C. Villmer, Jr., 26, of New Baden, Illinois, was charged by criminal complaint in August of 2023. Villmer will be required to register as a sex offender and serve an additional 7 years on supervised release upon his release from prison. Prior to his indictment, Villmer taught first grade at New Baden Elementary School and coached both girls and boys’ junior high sports teams.
“As a teacher and coach, the defendant was entrusted to educate and mentor youth, yet instead he preyed on and exploited his young victims’ vulnerabilities,” said U.S. Attorney Rachelle Aud Crowe. “His predatory behaviors expressed a complete disregard for protecting children but rather abusing them. I’m thankful to the law enforcement agencies who worked to put this dangerous offender in federal prison.”
The case was initiated by an otherwise unrelated investigation by the Carmi Police Department regarding the distribution of CSAM. The investigation led law enforcement officers to a Snapchat account soliciting sexually explicit images and videos from minors that was connected to Villmer.
According to court documents, after obtaining a search warrant for Villmer’s Snapchat account, police discovered explicit conversations with a 13-year-old minor. Villmer asked the minor for the “sexiest images,” discussed having sex and taking the minor’s virginity, offered the minor marijuana, and requested photographs of her genitals.
Law enforcement identified other occurrences of sexually explicit conversations and requests for images with other minors within Villmer’s Snapchat account. His victims were generally 13-14 year old females.
“This sentence sends an important message to all predators: HSI will not allow crimes against children to go unpunished. We will continue to identify and investigate those who pose a threat to our communities,” said Sean Fitzgerald, special agent in charge for HSI Chicago. “Working with our law enforcement partners, our commitment to aggressively protect children from offenders like Villmer will remain steadfast.”
Based upon IP address records associated with the Snapchat account, law enforcement connected the account to Villmer. On August 18, 2023, law enforcement executed a search warrant on Villmer’s New Baden residence and seized two cell phones and other electronic devices. Villmer was arrested on scene.
Homeland Security Investigations conducted the investigation with support from the New Baden and Carmi Police Departments, and the Jefferson County and Clinton County Sheriffs’ Departments. Assistant U.S. Attorney Ali Burns 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.
Former General Counsel of Large Public Company admits Tax OffensesRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man, and former general counsel for a large public corporation admitted willfully failing to file federal income tax returns, U.S. Attorney Philip R. Sellinger announced today.
John Goggins, 63, of Chatham, New Jersey, pleaded guilty before U.S. Magistrate Judge André M. Espinosa in Newark federal court on April 25, 2024, to a four-count information charging him with willfully failing to file federal income tax returns for tax years 2018 through 2021.
According to documents filed in this case and statements made in court:
Goggins was a former senior vice-president and general counsel of a large publicly traded corporation. For the years 2018 through 2021, Goggins earned total gross income of $54 million from wages, restricted stock awards, the exercise of annual nonqualified stock options, interest, dividends, and gains from stock sales. Goggins failed to file federal income tax returns for those years.
The willful failure to file tax returns charges each carry a maximum potential penalty of one year in prison and a $100,000 fine, or twice the gross gain or loss from the offense. Any prison sentence imposed on Counts One through Four may run consecutively to each other. Sentencing is scheduled for Sept. 6, 2024.
U.S. Attorney Sellinger credited IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan with the investigation leading to the guitly plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Trial Attorney Kenneth Vert of the Justice Department’s Tax Division.
goggins.information.pdfFormer Army Reservist Sentenced for Theft of Government Funds ConspiracyRead the Press Release
NEW ORLEANS – Former United States Army reservist, LEROY DANIELS, JR. (“DANIELS”), was sentenced on April 25, 2024, after previously pleading guilty to conspiracy to commit theft of federal funds. Chief United States District Judge Nannette Jolivette Brown sentenced DANIELS to 30 months of probation, 100 hours of community service, and a $100 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. Pursuant to the Mandatory Victim Restitution Act, Judge Brown also ordered DANIELS to pay $l1,693.87 in restitution to the United States Department of the Army.
According to court records, DANIELS stole $11,693.87 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never occurred.
The National Defense Authorization Act of 2000 authorizes military funeral honors (MFH) for active-duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
U.S. Attorney Evans praised the work of the United States Army Criminal Investigation Command. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Former American Airlines Flight Attendant Indicted for Filming Minors in Aircraft LavatoryRead the Press Release
BOSTON – A former American Airlines flight attendant, previously charged by criminal complaint, has been indicted by a federal grand jury for allegedly surreptitiously recording or attempting to record a minor female passenger using a lavatory aboard an aircraft he was working in September 2023. The defendant is also alleged to have possessed recordings of four additional minor female passengers using lavatories aboard the aircraft he had worked previously.
Estes Carter Thompson III, 36, of Charlotte, N.C., was indicted on one count of attempted sexual exploitation of children and one count of possession of child pornography depicting a prepubescent minor. Thompson was previously charged by criminal complaint and arrested in January 2024 in Lynchburg, Va. He has been in federal custody since.
According to the charging documents, on Sept. 2, 2023, while working as a flight attendant onboard an American Airlines flight from Charlotte, N.C. to Boston, Mass., Thompson video-recorded or attempted to surreptitiously video-record a 14-year-old female passenger as she used the aircraft lavatory. Specifically, approximately midway through the flight, the minor victim got up to use the main cabin lavatory nearest to where she was seated. When the minor victim arrived at the lavatory it was occupied. After the minor victim had been waiting a short time, Thompson allegedly approached her, told her that the first-class lavatory was unoccupied and escorted her toward first class. Before the minor victim entered the lavatory, Thompson allegedly told her that he needed to wash his hands and that the lavatory’s toilet seat was broken and briefly entered the lavatory. It is alleged that, after Thompson exited the lavatory, the minor victim entered and observed red stickers on the underside of the toilet seat lid, which was in the open position, that stated, “INOPERATIVE CATERING EQUIPMENT” and “REMOVE FROM SERVICE,” and “SEAT BROKEN” was hand-written in black ink on one of the stickers. It is alleged that, beneath the red stickers, Thompson had concealed his iPhone to record a video. The minor victim used her phone to take a picture of the red stickers and the concealed iPhone she found in the lavatory before exiting, at which time Thompson allegedly re-entered it immediately.
According to court documents, when the minor victim returned to her seat, she informed her parents of what she saw and showed them the picture. The victim’s parents reported the matter to other flight attendants onboard who notified the Captain, who in turn notified law enforcement on the ground. It is alleged that the victim’s father confronted Thompson who, shortly thereafter, locked himself in the lavatory with his iPhone for three to five minutes prior to the flight’s descent.
Upon the flight’s arrival at Boston’s Logan Airport, law enforcement observed that Thompson’s iPhone may have been restored to factory settings. It is alleged that a subsequent search of Thompson’s suitcase was found to contain 11 “INOPERATIVE CATERING EQUIPMENT” stickers, like those observed by the minor victim on the back of the toilet seat. A search of Thompson’s iCloud account allegedly revealed four additional instances between January and August 2023 in which Thompson recorded a minor using the lavatory on an aircraft. The minor victims allegedly depicted in the surreptitious recordings were seven, nine, 11 and 14 years old at the time. Additionally, over 50 images of a nine-year-old unaccompanied minor were allegedly found in Thompson’s iCloud. The images included photos taken while the minor victim was seated in her seat pre-flight and close-ups of her face while sleeping.
All minor victims involved in this matter have been identified and their families contacted by law enforcement.
It is further alleged that hundreds of images of AI-generated child pornography were also found stored on Thompson’s iCloud account.
The charge of attempted sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison. The charge of possession of child pornography depicting a prepubescent minor provides for a sentence of up to 20 years in prison. Both charges also provide for at least five years and up to a lifetime of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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.
Florida Man Sentenced to Prison for International Fraud Conspiracy That Targeted Senior CitizensRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Jorrel Tyler Jackson, 31, of Seffner, Florida, was sentenced to 6.5 years in federal prison for his role in an international fraud conspiracy that targeted senior citizens in several states, including Michigan. U.S. District Judge Jane M. Beckering, who imposed the sentence, found that Jackson was responsible for causing $1,584,077 in loss to 22 victims of the conspiracy, and ordered him to pay restitution in that amount.
“Crimes that exploit seniors can be devastating, depriving victims of their savings, their independence, and their dignity,” said U.S. Attorney Mark Totten. “My office will vigorously pursue criminals who target the elderly and other vulnerable citizens in Michigan.”
According to court records, Jackson’s role in the conspiracy was to meet with victims and collect packages of money from them, which he then passed on to higher-level members of the conspiracy. He also recruited others to join the conspiracy. A victim in West Michigan lost $398,000 to the conspiracy.
Jackson was one of seven defendants who were charged last year with participating in the fraud scheme. For the victims, the scheme began when they received a message on their computers warning that a virus had infected their devices. The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such as Microsoft or Apple. In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses.
In one version of the scam, victims were told their bank accounts had been compromised and they needed to withdraw all their cash and give it to fake “federal agents” for safekeeping. In another version, victims were told a virus had infected their computers and they needed to pay for technical support. In a third version, victims were told they had been identified in a criminal investigation and needed to turn over money to clear their names. Regardless of which ruse was used, the result was the same: victims were convinced to give money to the scammers. Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.
U.S. Attorney Totten shared the following safety tips to help prevent becoming a victim: “To protect yourself, never click on unsolicited pop-ups, links sent by text message or email, don’t download software at the request of someone you don’t know, and always remember that the government and law enforcement will never call and ask you for money.”
“Fraudsters are targeting our senior community at an alarming rate nationwide. Criminals continue to take advantage of their trusting nature and generosity,” said Cheyvoryea Gibson, Special Agent in Charge for the FBI in Michigan. “We must empower our seniors with knowledge about elder fraud and its various forms to protect them from this intolerable manipulation. If you or someone you know has been a victim of elder fraud, we ask that you report it immediately to the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311) or file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov. We will not allow these criminals to continue exploiting our seniors.”
For more information on preventing elder fraud and help for victims, visit the Department of Justice’s Elder Justice Initiative website, which includes a list of Michigan-specific resources. The FBI Elder Fraud website also provides several resources, including the following tips to help seniors protect themselves:
- Recognize scam attempts and end all communication with the perpetrator.
- Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
- Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
- Be cautious of unsolicited phone calls, mailings, and door-to-door services offers.
- Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
- Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
- Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
- Be careful what you download. Never open an email attachment from someone you don't know, and be wary of email attachments forwarded to you.
- Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts, and monitor your accounts and personal information for suspicious activity.
The case was investigated by the FBI and the Lake County Sheriff’s Office in Michigan, and the Department of Homeland Security in Louisiana. Assistant United States Attorney Clay Stiffler prosecuted the case.
Five of the seven defendants charged in the case have entered guilty pleas. The charges against the remaining two defendants are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Florida Man Pleads Guilty to Fraud Involving Small Business Administration Disaster FundsRead the Press Release
BOSTON – A Florida man pleaded guilty yesterday in U.S. District Court in Boston to conspiring to use stolen identities to fraudulently obtain disaster loans from the Small Business Administration (SBA) and to launder the funds.
Hector Garcia, 52, of Ocala, Fla., pleaded guilty to one count of conspiracy to commit wire fraud and three counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 24, 2024.
Garcia conspired with Ramon Cruz, Darwyn Joseph, Edwin Acevedo, and others, to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Garcia used stolen identity information of a United States citizen to open a fraudulent bank account, which was then linked to other fraudulent bank accounts set up to receive the SBA funds. Garcia and his co-conspirators used debit cards associated with those accounts to launder the funds by purchasing iPhones for re-sale. Garcia and other co-conspirators wired a portion of the funds to the Dominican Republic.
Over $452,000 in SBA funds were fraudulently obtained in connection with the scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.
Cruz and Joseph pleaded guilty and were each sentenced in August 2023 and October 2023, respectively, to two years and one day in prison and three years of supervised release. Acevedo pleaded guilty and was sentenced in August 2023 to 33 months in prison and three years of supervised release.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, as well as restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was also provided by Homeland Security Investigations in Orlando, Fla.; Small Business Administration, Office of the Inspector General; Department of Housing and Urban Development, Office of the Inspector General; Social Security Administration, Office of the Inspector General; Department of Labor, Office of the Inspector General; Department of State; U.S. Postal Inspection Service; Massachusetts State Police; New Hampshire State Police; and the Acton, Nashua (N.H.), Manchester (N.H.) and Ocala (Fla.) Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Financial Advisor Sentenced for $1.2 Million FraudRead the Press Release
A financial advisor who conned at least ten clients out of more than $1.2 million was sentenced today to five years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Dusty Sternadel, 43, pleaded guilty in January to wire fraud. She was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to plea papers, Ms. Sternadel, a financial adviser at a large multi-national financial services firm, tricked clients into sending her money and checks, which she deposited into her own accounts.
On Sept. 18, 2019, for example, Ms. Sternadel transferred almost $27,000 from a client’s brokerage account into their personal checking account. She then falsely told the client-victim that the firm had accidentally transferred someone else’s money into the checking account, and instructed the victim to write out a check for that amount. The victim complied, and Ms. Sternadel deposited the funds into her own business bank account and used it for personal expenses.
Over the course of the scheme, which lasted from 2019 to 2022, Ms. Sternadel stole at least $1.2 million from ten victims:
- Victim 1: $286,021.63 (refunded to the victim by the firm)
- Victim 2: $18,122 (refunded to the victim by the firm)
- Victim 3: $ 101,240.50 (refunded to the victim by the firm)
- Victim 4: $21,064 ($9,334 of which was refunded by the firm)
- Victim 5: $43,099.21 (refunded to the victim by the firm)
- Victim 6: $51,600 (refunded to the victim by the firm)
- Victim 7: $204,442.82 (refunded to the victim by the firm)
- Victim 8: $40,000
- Victim 9: $288,979.89 (refunded to the victim by the firm)
- Victim 10: $175,201.25 (refunded to the victim by the firm)
At sentencing, prosecutors said most of the victims were elderly, and some of them were even suffering from cognitive decline.
The Federal Bureau of Investigation’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht prosecuted the case; Assistant U.S. Attorney John de la Garza handled the forfeiture.
Federal jury convicts two Montanans, one Californian of meth, fentanyl trafficking in Butte, Helena areasRead the Press Release
MISSOULA — A federal jury on Thursday convicted two Montana residents and a California man of drug trafficking crimes for bringing pounds of methamphetamine and thousands of fentanyl pills to the Butte and Helena communities for distribution, U.S. Attorney Jesse Laslovich said today.
After a four-day trial that began on April 22, the jury found Juan Felipe Vidrio Fuentes, 36, of Anaheim, California; James Andrew Stringari, 51, of Whitehall; and Janet Dean White, 57, of Butte, guilty of conspiracy to distribute and possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. The defendants face a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. District Judge Dana L. Christensen presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Sept. 3 for all three defendants. The defendants remained detained pending further proceedings.
“These three defendants are the last of eight Montanans and Californians indicted and now convicted for bringing at least 13 pounds of methamphetamine and thousands of fentanyl pills to the Butte and Helena areas. The harm and misery they inflicted on people so they could make money cannot be overstated. Their convictions show that our office and our law enforcement partners are relentless in rooting out and ridding these drug trafficking rings from our cities and towns. I am grateful to Assistant U.S. Attorney Brian C. Lowney, our support staff, and the 11 law enforcement agencies who investigated and prosecuted this case,” U.S. Attorney Laslovich said.
At trial and in court documents, the government alleged that from June 2022 until about January 2023 in Butte and Helena, Fuentes, Stringari, White and five other co-defendants conspired to traffic meth and fentanyl. In June 2022, the Utah Highway Patrol stopped an individual traveling in a vehicle carrying 3.5 pounds of meth and 6,000 pills containing fentanyl and learned that the individual was transporting the drugs to Butte for distribution by “Esco,” who was Fuentes. Law enforcement further learned that Fuentes was staying at a house in Whitehall along with at least one co-defendant, Stringari, and that Fuentes was supplying both fentanyl and meth throughout the Butte area from the Whitehall residence. In addition, law enforcement inspected a source’s cell phone and corroborated information about meth and fentanyl trafficking that implicated Fuentes, Stringari, White and another co-defendant.
The government further alleged that in October 2022, law enforcement stopped a vehicle leaving the Whitehall residence. White was a passenger in the vehicle, and law enforcement found one pound of meth in her purse. In November 2022, law enforcement again stopped White in a vehicle and located three quarters of a pound of meth and more than 100 pills containing fentanyl. White also possessed several cell phones, which contained messages indicative of White’s drug distribution.
In addition, investigators in November 2022 intercepted packages containing approximately 9,000 pills containing fentanyl that were mailed by a co-defendant from California to the address in Whitehall and learned of a package the co-defendant had mailed to an address of another co-defendant in Butte. In January 2023, investigators intercepted another package containing 3,000 pills containing fentanyl that was sent from California to the address in Butte. Law enforcement also learned that Fuentes was now staying at a house in Helena.
Law enforcement conducted coordinated stops and raids of the Helena and Butte addresses. In the Butte residence, law enforcement located approximately six pounds of meth, 208 grams of fentanyl, $15,000 cash and seven firearms. In the Helena residence, law enforcement located approximately seven pounds of meth and 68 grams of fentanyl.
Co-defendants Martin Topete Garcia, 32, his brother, Johnathan Topete, 28, both of Mira Loma, California, Trevor Allen Handy, 27, of Butte, Anthony Wayne Johnson II, 51, of Santa Ana, California, and Agatha Noriz Carranza, 34, of Whitehall, pleaded guilty earlier to charges in the case and are pending sentencing.
Assistant U.S. Attorney Brian C. Lowney is prosecuting the case. The Montana Division of Criminal Investigation, Southwest Montana Drug Task Force, Montana Highway Patrol, Jefferson County Sheriff’s Office, Missouri River Drug Task Force, U.S. Postal Inspection Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Utah Highway Patrol and Utah State Bureau of Investigations conducted the investigation.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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Former High School Coach Sentenced to 35 Years on Child Exploitation ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Chief Judge Robert A. Molloy sentenced Alfredo Bruce Smith, 53, of St. Thomas, to 35 years in prison, followed by a lifetime of supervised release. Upon release from prison, Smith must register as a sex offender. On September 13, 2023, Smith pleaded guilty to a 20-count indictment charging him with both federal and territorial child sexual exploitation offenses.
“One of our greatest responsibilities is to protect our children, and we will continue to target child predators who sexually abuse them. This case is particularly egregious because Smith used his position of trust to victimize students over a period spanning 15 years. I am grateful to all who worked tirelessly to bring this case to justice for the minor victims who were abused by this defendant” United States Attorney Smith said.
“This case is a reminder of the inherent dangers the children of our community face every day. We must all work together as a community to report individuals committing these crimes. Homeland Security Investigations is steadfast in its commitment to investigate and pursue justice for those who misuse their positions of trust to sexually abuse our children”, Homeland Security Investigations Special Agent in Charge Rebecca Gonzalez-Ramos said.
According to court documents, Smith was employed as a hall monitor and track and field coach at the Charlotte Amalie High School in St. Thomas from 2006 to 2021. During his tenure at the school, Smith sexually assaulted and exploited multiple male students who attended the school. Smith’s crimes were revealed in 2019 after he sexually assaulted a minor male student during a track and field meet in Puerto Rico. The victim reported to law enforcement that Smith forced him and other minor male students to engage in sexual intercourse and sodomy both on and off the school campus, and that Smith used his cell phone to record himself and the minor male victims engaging in sexual acts and pornography.
Court documents further revealed that Smith’s Facebook account contained a large quantity of sexually explicit material, including videos of sexual activities between Smith and the minor male victims, recorded in different locations in St. Thomas. When Smith was arrested on September 1, 2021, law enforcement seized a laptop, a camcorder and five cellular phones which contained a large quantity of videos and photographs containing child pornography. Smith used his position as hall monitor to remove minor male students from their classrooms during and after school hours to sexually abuse them in empty classrooms and offices on the school’s campus. In fact, Smith’s office, where most of the sexual abuse took place, was next door to the principal’s office. Smith also used the school’s official vehicle and camcorder to transport the minor male students and record the sexual abuse at various locations in St. Thomas.
At sentencing, Chief Judge Molloy told Smith that “Charlotte Amalie High School during those 15 years was your playground to molest those children. School is supposed to be a safe haven – like their home, not a place that cases trauma and pain.” Molloy further stated that “if it were not for the courage of the children who reported these atrocities, we would not know what happened.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorneys Everard E. Potter and Natasha Baker.
Eveleth Felon Sentenced to 10 Years in Drug Trafficking CaseRead the Press Release
MINNEAPOLIS – An Eveleth man has been sentenced to 120 months in prison followed by five years of supervised release for possession of fentanyl and methamphetamine with intent to distribute, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s plea agreement and court documents, between January 1, 2023, and March 9, 2023, Juan Pedro Alapisco-Ochoa, 52, knowingly conspired with co-conspirators to acquire fentanyl with the intention of distributing it. On January 7, 2023, law enforcement conducted a controlled buy and purchased over 1,000 fentanyl pills from Alapisco-Ochoa and his co-conspirators. On March 7, 2023, as part of a separate investigation, postal inspectors stopped a shipment addressed to the defendant’s apartment which contained 481 grams of methamphetamine packed inside a stereo speaker. Shortly afterwards, law enforcement conducted a controlled delivery to Alapisco-Ochoa’s apartment. Agents seized 11 grams of methamphetamine, 170 blue fentanyl pills, and miscellaneous drug paraphernalia from the apartment.
Alapisco-Ochoa pleaded guilty on October 12, 2023, to one count of possession with intent to distribute fentanyl. He was sentenced on April 24, 2024, in U.S. District Court by Judge Michael J. Davis.
This case is the result of an investigation conducted by the FBI, the Dakota County Drug Task Force, the St. Louis County Sheriff’s Office, the U.S. Department of Homeland Security, and the Lake Superior Violent Crime Drug Task Force.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Ecuadorian National Sentenced to 1 Year and 1 Day for Illegally Entering the US After a Prior RemovalRead the Press Release
BANGOR, Maine: An Ecuadorian national was sentenced today in U.S. District Court in Bangor for entering the United States after a prior removal.
Chief U.S. District Judge Lance E. Walker sentenced Cristian Paul Pinguil-Caguana, 37, to 12 months and one day in prison. Pinguil-Caguana has been incarcerated since October 6, 2023. He pleaded guilty on November 27, 2023.
According to court records, during an investigation of another individual with an open immigration detainer, U.S. Border Patrol personnel in the Jackman area encountered Pinguil-Caguana in a vehicle with that individual. Pinguil-Caguana identified himself as from Ecuador and reported that he was in the country illegally. Immigration records showed that he had previously been removed from the U.S. on four occasions, mostly recent in September 2021 at Alexandria, Louisiana, and had been prosecuted a total of four times for immigration offenses. Pinguil-Caguana had not obtained the express consent of the Secretary of the U.S. Department of Homeland Security to reapply for admission.
U.S. Customs and Border Protection investigated the case.
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Doctor Convicted for $5.4M Medicare Fraud SchemeRead the Press Release
A federal jury convicted a New Jersey doctor today for causing the submission of over $5.4 million in fraudulent claims to Medicare for orthotic braces ordered through a telemarketing scheme.
According to court documents and evidence presented at trial, Adarsh Gupta, M.D., 51, of Sewell, signed thousands of prescriptions for orthotic braces for over 2,900 Medicare beneficiaries whom he was connected with by telemarketers who convinced the beneficiaries to accept unnecessary braces. After briefly speaking to the beneficiaries over the telephone, Gupta prescribed orthotic braces for them. For instance, Gupta prescribed a back brace, shoulder brace, wrist brace, and knee brace for an undercover agent after speaking with the agent for just over a minute on the telephone. In another instance, Gupta prescribed a knee brace for a Medicare beneficiary whose legs had previously been amputated. The evidence presented at trial showed that Gupta could not possibly have diagnosed the beneficiaries or determined that the braces were medically necessary during his brief telephonic encounters with them. Nonetheless, Gupta signed prescriptions for braces that falsely represented that the braces were medically necessary and that he diagnosed the beneficiaries, had a care plan for them, and recommended that they receive certain additional treatment. Gupta’s false prescriptions were used by brace supply companies to bill Medicare more than $5.4 million.
The jury convicted Gupta of three counts of health care fraud and two counts of false statements relating to health care matters. He is scheduled to be sentenced on October 8, 2024 and faces a maximum penalty of 10 years in prison on each of the health care fraud counts and five years in prison on each of the false statements relating to health care matters counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Darren C. Halverson and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Assistant U.S. Attorney Kelly M. Lyons for the District of New Jersey. Trial Attorney Steven Michaels of the Special Matters Unit of the Criminal Division’s Fraud Section assisted with filter matters.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
District Man Sentenced to 28 Months in Prison for Robbery and Firearms Related ChargesRead the Press Release
WASHINGTON – Ralph Butler, 19, of Washington, D.C., was sentenced today to 28 months in prison for robbery and assault with a deadly weapon (felony) of two men on September 22, 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Butler pleaded guilty on February 7, 2024, to robbery and assault with a dangerous weapon in the Superior Court of the District of Columbia before the Honorable Lynn Leibovitz.
According to the government’s evidence, with which Butler agreed, on September 22, 2023, at around 5:45 a.m., Butler and another individual approached two men in the 2200 block of Shannon Place SE, produced handguns, and robbed them of their phones, car keys, currency, and, ultimately, their vehicles, which were parked nearby. Butler drove off in one victim’s car, while his accomplice drove off in the other victim’s SUV. Both vehicles were later recovered in Butler’s neighborhood in Southeast Washington D.C.
Surveillance footage captured both Butler and his accomplice in the area surrounding the crime scene, as well as Butler and his accomplice each driving the stolen vehicles. MPD officers arrested Butler on October 19, 2023.
In announcing the sentence, U.S. Attorney Graves and Chief. Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John Parron.
DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, April 27th, from 10 a.m. to 2 p.m., the U.S. Drug Enforcement Administration (“DEA”) will provide the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Location information is available from the DEA, along with items that cannot be accepted. This service is free and anonymous, no questions asked.
This April’s event is DEA’s 26th nationwide event since its inception 14 years ago. Last spring, Americans turned in nearly 599,897 pounds of prescription drugs at nearly 4,675 sites operated by the DEA and 4,383 from its state and local law enforcement partners.
The DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium-ion batteries. Concerns have been raised across the United States over illnesses and deaths caused by vaping and the high youth vaping initiation rates. To support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
The DEA’s “Take Back” day and “Get Smart About Drugs” initiatives address the vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Synthetic opioids, such as illicit fentanyl, are the primary driver of the increase in overdose deaths. For information on DEA’s “Take Back” in Spanish, click here, or for more information on the “Get Smart About Drugs” publication, click for English or Spanish.
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day, including the 11,000 authorized collectors that are available all year long. For more information, visit DEA’s year-round collection site locator. Participating in the next DEA Take Back Day on Saturday, April 27th, simply means cleaning out your medicine cabinet or anywhere you keep unused, unwanted, or expired medications and dropping them off at your nearest collection site. For more information about the disposal of prescription drugs or about the April 27th Take Back day event, go to DEA Drug Take Back event or by calling 800-882-9539.
The FDA also provides information on how to properly dispose of prescription drugs. More information is available here: English or Spanish.
###Convicted Armed Bank Robber Sentenced to Life Plus 25 Years for Fort Myers Armed Bank RobberyRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber today sentenced Grant Elmore Davis, Jr. (71, Mansfield, OH) to life in federal prison plus 25 years in federal prison for armed bank robbery, discharging a firearm during and in relation to a crime of violence, and possession of a firearm and ammunition as a convicted felon. The court also ordered Davis to forfeit the firearm and ammunition used in the offense. Davis entered a guilty plea on December 20, 2023.
According to court documents, Davis entered a bank in Fort Myers on October 31, 2023, and discharged a handgun while making verbal commands to the teller to give him money from the cash register. After obtaining money from the teller, Davis fled the bank. Davis was previously convicted of armed bank robbery and using and carrying a short-barreled shotgun in relation to a crime of violence in November 2001.
This case was investigated by the Lee County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mark Morgan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Colombian National Sentenced to 14 Years in Prison for Conspiring to Import Tons of Cocaine into the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ÁLVARO FREDY CÓRDOBA RUÍZ was sentenced to 14 years in prison today for conspiring to import cocaine into the United States. CÓRDOBA RUÍZ pled guilty on January 2, 2024, before U.S. District Judge Lewis J. Liman, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Today’s sentence demonstrates this Office’s commitment to prosecuting drug traffickers like Córdoba Ruíz, who seek to import tons of cocaine into the United States. Those who seek to flood our streets with narcotics will face serious consequences, especially when they partner with violent drug trafficking organizations like the FARC. I commend the efforts of our law enforcement partners and the career prosecutors of this Office who work tirelessly to investigate and disrupt these complex drug importation networks. Their work has a profound impact on countless lives in our communities.”
According to court documents and statements made during court proceedings:[1]
CÓRDOBA RUÍZ conspired with his co-defendants and other individuals associated with the Fuerzas Armadas Revolucionarias de Colombia (“FARC”) — a violent organization based in Colombia that was dedicated to the overthrow of the Colombian government and responsible for the production and distribution of the majority of the cocaine that eventually reached the United States — to source and distribute tons of cocaine destined for the United States. CÓRDOBA RUÍZ negotiated with individuals he believed to be narcotics traffickers from a Mexico-based drug trafficking organization (the “Mexican DTO”) seeking to establish a cocaine supply line from Venezuela to the United States. These individuals, however, were actually confidential sources working at the direction of the U.S. Drug Enforcement Administration (“DEA”).
In recorded communications during the investigation, CÓRDOBA RUÍZ agreed to assist the planned cocaine venture through his political and logistics connections in Colombia. With respect to the former, CÓRDOBA RUÍZ connected confidential sources purporting to be members of the Mexican DTO with a Colombian politician, conveying that, in exchange for financial and political support, the politician would help to facilitate a cocaine partnership between the defendant, his co-conspirators, and the confidential sources purportedly functioning as the Mexican DTO. CÓRDOBA RUÍZ also connected the confidential sources with individuals who offered to provide large quantities of cocaine and security for the promised cocaine loads. In December 2021, to prove their bona fides and establish the quality of their supply, CÓRDOBA RUÍZ sold the confidential sources a five-kilogram sample of cocaine containing a high level of purity — lab tests demonstrate the cocaine was between 86.6% to 89.1% pure — from a FARC-associated farm outside of Medellín. CÓRDOBA RUÍZ was arrested in Colombia in February 2022, while negotiating a much larger partnership with the Mexican DTO, which contemplated the shipment of approximately 500 kilograms of cocaine per week.
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In addition to the prison term, CÓRDOBA RUÍZ, 65, of Medellín, Colombia, was sentenced to four years of supervised release.
Mr. Williams praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit and Bogotá Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley, Kaylan E. Lasky, and Kevin T. Sullivan are in charge of the prosecution.
[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part, and many of these conversations occurred in Spanish.
Chicago Man Sentenced to More Than Eleven Years in Prison for Carjacking Four Vehicles and Robbing a UPS TruckRead the Press Release
CHICAGO — A Chicago man who carjacked four vehicles, robbed a UPS truck, and committed multiple street robberies has been sentenced to more than eleven years in federal prison.
JAHEIM HENYARD committed the UPS robbery, three of the carjackings, and two street robberies within days of each other in August 2020 in Oak Park, Ill., Cicero, Ill., and Chicago. The other carjacking occurred in December 2019 in a supermarket parking lot in Westchester, Ill. During that carjacking, Henyard’s accomplice and the victim, who was armed and possessed a concealed carry license, engaged in an exchange of gunfire. Henyard also attempted to carjack another vehicle at gunpoint in Oak Park in July 2020, but was unsuccessful.
In the UPS heist, Henyard and two others – DARIUS YOUNG and XAVIER TATE – robbed the truck on a residential street in Oak Park on the afternoon of Aug. 21, 2020. During the robbery, the UPS driver was ordered to lay face down in the street while the offenders removed boxes from the truck and sped off. All three defendants pleaded guilty and admitted their roles in the heist. Henyard’s guilty plea also included the four carjackings as well as the attempted carjacking.
U.S. District Judge Sara L. Ellis sentenced the defendants this month to federal prison terms:
- Henyard, 22, of Chicago, was sentenced to eleven years and three months.
- Young, 28, of Berwyn, Ill., was sentenced to four years.
- Tate, 27, of Chicago, was sentenced to seven years and nine months.
The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Chicago Police Department, Oak Park Police Department, and Cicero Police Department participated in the investigation. The Cook County State’s Attorney’s Office provided valuable assistance. The government was represented by Assistant U.S. Attorneys Charles W. Mulaney and Simar Khera.
Cave Junction Man Sentenced to More than 14 Years Federal Prison for Illegally Possessing Firearms and NarcoticsRead the Press Release
MEDFORD, Ore.—A Cave Junction, Oregon man with a lengthy criminal history was sentenced to more than 14 years in federal prison Thursday for illegally possessing methamphetamine and 12 firearms while on state supervision.
William Thomas Gillespie, 39, was sentenced to 173 months in federal prison and five years’ supervised release.
“This lengthy prison sentence is a just outcome for a man who poses a significant danger to the community. We thank our partners on the Rogue Area Drug Enforcement Team for their dedication and commitment over many months to bringing Mr. Gillespie to justice,” said Nathan J. Lichvarick, Chief of the U.S. Attorney’s Office Eugene and Medford Branch Offices.
“With Mr. Gillespie’s lengthy criminal record involving drug distribution, illegal firearms, and flight from supervised release, this significant sentence is well warranted,” said Jonathan Blais, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Seattle Field Division. “ATF will always investigate those who endanger our communities and citizens through their illegal actions.”
According to court documents, on April 6, 2020, Gillespie was arrested in White City, Oregon attempting to deliver approximately 174 grams of methamphetamine. At the time of his arrest, he possessed six baggies of methamphetamine and a digital scale. After Gillespie consented to a search of his residence, investigators located and seized 12 firearms, including an AR-15 and multiple AK-style rifles. Three of the firearms were found to be stolen and one had an obliterated serial number.
On November 5, 2020, a federal grand jury in Medford returned a three-count indictment charging Gillespie with illegally possessing a firearm as a convicted felon, illegally possessing a short-barrel rifle, and possessing methamphetamine with intent to distribute.
On June 23, 2021, Gillespie was released from custody pending trial, and, on August 1, 2022, pleaded guilty to illegally possessing a firearm as a convicted felon and possessing methamphetamine with intent to distribute.
On January 2023, Gillespie absconded from his supervised release and a warrant was issued for his arrest. On September 13, 2023, Gillespie was located and arrested in Bandon, Oregon.
This case was investigated by the Rogue Area Drug Enforcement Team (RADE), a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. RADE includes members from Oregon State Police, the Grants Pass Police Department, Josephine County Probation & Parole, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by Judith R. Harper, Assistant U.S. Attorney for the District of Oregon.
Cascade Man Sentenced to Federal Prison for Rolling Back OdometersRead the Press Release
A man who was responsible for forty-seven cars that had lower, false odometers was sentenced to federal prison on April 8, 2024.
Randolph Forrest, age 69, from Cascade, Iowa, received the prison term after a January 17, 2023 guilty plea to one count of wire fraud.
Information from sentencing showed that from June 2012 through July 2021 Forrest conspired with others to roll back odometers on used cars to sell them for more money. Forrest and others involved in the scheme tampered with the odometers of at least forty-seven cars by having the odometers fraudulently altered to reflect lower mileages. They then sold the cars to unsuspecting buyers at higher sales prices than the buyers would have paid had the true mileage been disclosed. As part of the fraud, Forrest mailed forms to a repair business requesting that odometers be changed to reflect lower mileages. Forrest advertised the cars with the lower, false mileages on Facebook and Craigslist.
Forrest was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Forrest was sentenced to six months’ imprisonment and six months’ home confinement. He was ordered to make $140,178.55 in restitution to forty-seven victims of his offense. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The National Highway Traffic Safety Administration estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or send an email to [email protected].
More information on odometer fraud is available on the NHTSA website https://www.nhtsa.gov/vehicle-safety/odometer-fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
Forrest was released on the bond previously set and is to surrender to the United States Marshal on May 6, 2024.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the United States Department of Transportation, National Highway Traffic Safety Administration, the Iowa Department of Transportation, and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1016.
Follow us on Twitter @USAO_NDIA.
Careless Firearm Use Near Exeter Residence Leads to a 1 Year Plus 1 Day Sentence for Illegal Possession for Millinocket ManRead the Press Release
BANGOR, Maine: A Millinocket man was sentenced today in U.S. District Court in Bangor for being a felon in possession of a firearm.
Chief U.S. District Judge Lance E. Walker sentenced Scott Lynch, Jr., 23, to 12 months plus one day imprisonment to be followed by three years of supervised release. Lynch pleaded guilty on December 13, 2023.
According to court records, in November 2020, the Maine Warden Service received a complaint about shots being fired at a residence in Exeter, Maine. A game warden observed bullets lodged in the exterior walls of the residence, and the homeowners reported hearing gunshots from across the pond and seeing two individuals wearing hunter’s orange. The warden located Lynch and a 14‑year-old minor in a parked truck. Lynch admitted to the warden that that he had been target shooting in the woods. He also told the warden that he was a convicted felon. The warden located .22 caliber and .308 caliber casings in the woods where Lynch stated they had been shooting.
While at the minor’s house to retrieve the .22 rifle, the warden overheard the minor tell his mother that there was another rifle hidden in the house, which the mother then retrieved. Lynch had the key to a gun case on a key ring on his belt. Two guns were retrieved from the case, a .308 caliber rifle and a 9mm pistol, with obliterated serial numbers. Further investigation showed both the guns and the case had been stolen from a vehicle in Millinocket, and Lynch told investigators that he had traded a dirt bike for the firearms.
The Maine Warden Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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- California-Based Nursing Home Chain and Two Executives to Pay $7M to Settle Alleged False Claims for Nursing Home Residents Who Merely Had Been Near Other People with COVID-19
California man who participated in email fraud to steal more than $3 million from boatbuilding companies sentenced to 16 months in prisonRead the Press Release
Seattle – A 47-year-old Inglewood, California, man was sentenced today in U.S. District Court in Seattle to 16 months in prison for an email compromise scheme that stole more than $3.3 million from two companies involved in manufacturing ferries and engines for those ferries, announced U.S. Attorney Tessa M. Gorman. Leslie Redd III, pleaded guilty to conspiracy to commit wire fraud and wire fraud. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez noted the severe impact that the crime had on the victim businesses and their employees, causing employees’ pay to be delayed and cut, and threatening the businesses’ viability.
According to records filed in the case, including the plea agreement, in October 2018, Redd entered a scheme with a co-conspirator in Pennsylvania and others. The scheme began when a malicious link was sent to an email address of an employee at the engine-building company. The link allowed the conspirators to gain access to the company’s email system and review various emails, including those transmitting invoices. The conspirators then posed as a billing executive at the engine manufacturing company and sent the boat-building company instructions to wire the payment funds to a specific bank account. The conspirators had set up a fake company and the account at a Pennsylvania bank specifically to receive these funds. The false emails indicated the engine-building company’s usual bank account was undergoing an audit and said that the engine-building company therefore needed to use a different bank than it had previously.
On October 29, 2018, the boat builder paid the invoice for $3,316,730 by wiring the funds as directed by the fraudulent emails. The co-conspirator in Pennsylvania quickly forwarded $3,074,500 to bank accounts controlled by Redd and other co-conspirators. Of the ill-gotten funds, Redd kept $857,350 in accounts he controlled. Investigators were able to seize $420,817 from those accounts.
In the sentencing memo, prosecutors describe how Redd, forwarded more than $2,000,000 of the money that he had received to China to other co-conspirators – people whose names he did not even know. Judge Martinez expressed particular concern that American citizens would help foreign criminals defraud fellow Americans.
Redd will be on three years of supervised release following prison. He was ordered to pay $2,802,368.24 in restitution (the amount of the outstanding loss).
The case was investigated by the FBI Seattle Office Cyber Task Force.
The case was prosecuted by Assistant United States Attorney Andrew Friedman and former Assistant United States Attorney Siddharth Velamoor.
California Man Sentenced for Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – PEDRO VAZQUEZ, age 31, of California, was sentenced on April 25, 2024, for conspiracy to distribute and possess with intent to distribute methamphetamine (Count 1) and possession with intent to distribute methamphetamine (Count 2), in violation of Title 21, United States Code, Sections 841(a)(1) and 846 respectively. VAZQUEZ was sentenced by Chief Judge Nannette Jolivette Brown, on each count, to 48 months imprisonment, five years of supervised release, and a $200 mandatory special assessment fee. All sentences are to run concurrently with each other.
VAZQUEZ, and others known and unknown, conspired to distribute and possess with intent to distribute methamphetamine. In addition, VAZQUEZ drove to Metairie, Louisiana to conduct a narcotics transaction that involved a quantity of methamphetamine.
This case was investigated by the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
CFO of Two New Jersey Companies Charged with Participating in Multi-Million-Dollar Kickback Scheme to Defraud Williams Sonoma, Inc.Read the Press Release
OAKLAND – Domenick Nardone appeared in federal court in Oakland this week to face conspiracy, wire fraud, money laundering, and related charges for his alleged role in a kickback scheme that defrauded Williams Sonoma, Inc. (WSI) of millions of dollars, announced United States Attorney Ismail J. Ramsey and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.
According to a superseding indictment returned by a federal grand jury on March 12, 2024, Nardone, 66, of Port St. Lucie, Florida, conspired with others to pay millions of dollars in kickbacks to Eric Marsiglia, a former WSI executive and co-defendant in the case, to ensure Marsiglia would direct additional business to two New Jersey companies controlled in part by Nardone as Chief Financial Officer and minority owner. Nardone was arrested in Florida on March 29, 2024, and made an appearance in federal court there shortly thereafter. He was released on a $250,000 bond.
“Williams Sonoma is a Bay Area institution, and the defendants charged in this case are accused of taking advantage of their positions to defraud that venerable company out of millions of dollars over several years,” said United States Attorney Ismail J. Ramsey. “As National Crime Victims’ Rights Week comes to an end, I am proud to say this Office is committed to vindicating the rights of all victims, including companies like Williams Sonoma that call our district home.”
“Greed can easily overtake one’s ability to be content. Mr. Nardone abused his position as the Chief Financial Officer and conspired with others to secure favorable contracts only to end up in court,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley. “IRS Criminal Investigation will continue to unravel the truth and bring these selfish acts to light. We value our partnership with the U.S. Attorney’s Office Northern District of California as we press forward with charging those who entangled themselves in this multimillion-dollar kickback scheme.”
WSI is a home-goods retailer that operates brands Williams Sonoma, Pottery Barn, West Elm, and others. As alleged in the superseding indictment, Marsiglia was WSI’s Vice President of Engineering, Projects, Planning, Facilities, and Real Estate, and, as such, was responsible for identifying commercial real estate opportunities for the company. In his position, Marsiglia allegedly solicited and received millions of dollars from the two New Jersey companies—one a forklift company, the other a warehouse racking and logistics company—in part owned and controlled by Nardone and Michael Podhurst, a Vice President at the two companies who was also charged for his role in the offense and pleaded guilty in June 2023. In exchange, Marsiglia allegedly directed contracts for WSI’s business to those companies. The superseding indictment alleges that, from 2018 to 2020, WSI awarded companies connected to Nardone and/or Podhurst more than $48 million in contracts for work done at warehouses around the country, and that Marsiglia, Nardone, and Podhurst arranged for more than $12 million in kickbacks to be paid to Marsiglia’s shell company, REM Group LLC, which Marsiglia allegedly set up for the sole purpose of receiving and hiding kickback payments.
The superseding indictment also alleges that Marsiglia engaged in a second scheme to defraud WSI. In his role at WSI, Marsiglia was responsible for negotiating real estate contracts on behalf of WSI that required third parties to pay millions of dollars in brokerage fee rebates to WSI. According to the superseding indictment, rather than ensure that WSI received the brokerage fee rebates, Marsiglia conspired with others to have the rebates paid to his shell company, REM Group LLC. The superseding indictment charges Marsiglia and others with diverting and misappropriating approximately $5.9 million in broker commission rebates owed to WSI.
In total, the superseding indictment alleges that, from 2018–2022, Marsiglia fraudulently received nearly $20 million through his shell company, REM Group LLC, all of which was in the form of stolen broker rebate payments or kickbacks received for awarding business to entities connected to Nardone and/or Podhurst.
Marsiglia, 49, of Olive Branch, Mississippi, first appeared on the superseding indictment in federal court in San Francisco on April 23, 2024, although he had previously appeared in federal court in both Mississippi and San Francisco on an indictment issued in April 2023. Both Marsiglia and Nardone are next scheduled to appear in federal court in San Francisco on June 11, 2024, before the Honorable Richard Seeborg, Chief United States District Judge. The defendants have each pleaded not guilty to the charges against them.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Nardone and Marsiglia each face a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. §§ 1343, 1346, and 1349, as well as a maximum sentence of 20 years in prison, and a fine of $500,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1956(h). The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for either or both defendants. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by CI.
Boston Man Sentenced to Nearly Eight Years in Prison for Murder-For-Hire Plot Targeting His Former Wife and Her BoyfriendRead the Press Release
BOSTON – A Boston man was sentenced yesterday for trying to hire a contract killer to murder his ex-wife and her boyfriend.
Mohammed Chowdhury, 47, was sentenced by U.S. District Court Judge Leo T. Sorokin to 92 months of incarceration followed by three years of supervised release. In January 2024, Chowdhury pleaded guilty to two counts of use of interstate commerce facilities in the commission of murder-for-hire.
“Mr. Chowdhury literally thought he could get away with murder,” said Acting United States Attorney Joshua S. Levy. “Mr. Chowdhury’s disturbing conduct – in combination with the misogyny and dehumanization he expressed in trying to carry out this plot – speak volumes about how dangerous he is. This case represents the most extreme form of domestic violence and we will use all tools at our disposal to protect women in abusive relationships.”
“Anyone willing to hire a hitman to kill a once beloved family member and her new boyfriend is clearly a danger to the community,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Thankfully, the FBI Boston’s Violent Crimes Task Force was able to thwart this deadly and horrific plot. Violent criminals like Mohammed Chowdhury need to be locked up, for everyone’s safety, and today’s sentence ensures he won’t be able to harm anyone for a significant period of time.”
In November 2022, an individual notified law enforcement that Chowdhury was soliciting assistance in having his ex-wife murdered. The individual said that Chowdhury had paid someone to conduct the murder for hire, but that they took the money and did not follow through with Chowdhury’s request. Chowdhury subsequently told the individual that he needed the murder done as soon as possible and that he would get the money to do so, even robbing a store if necessary to obtain the funds. The individual provided Chowdhury’s phone number to law enforcement, who thereafter used an undercover agent posing as a contract killer, to communicate with Chowdhury about his murder for hire plot.
On numerous occasions in December 2022 and January 2023, Chowdhury met with undercover agents posing as the contract killer and their associates, to seek help with killing his ex-wife and her new boyfriend, whom she left him for. During these meetings and communications, Chowdhury explained that his ex-wife would not let him see his children; described his frustration with his ex-wife’s westernization and independent thinking; and expressed that he wanted the undercover agents to rob and beat his ex-wife and her boyfriend so that he would not be a suspect. Chowdhury asked, “So how we gonna disappear his, uh, body?” and stated, “No evidence. No evidence. No evidence from like, you know, that, uh, I did something, you know?” Chowdhury provided the undercover agents with photographs of his ex-wife and her boyfriend, where they lived, where they worked and their work schedules. Chowdhury ultimately agreed to pay $4,000 per murder, with a deposit of $500.
Chowdhury met with the undercover agents on Jan. 17, 2023, provided the $500 deposit and confirmed that he wanted the murders committed. Chowdhury was then immediately taken into federal custody.
According to court records, in October 2019, Chowdhury was charged in Boston Municipal Court – Roxbury Division with violating an Abuse Prevention Order prohibiting him from abusing, contacting, or coming within a certain distance of his ex-wife. Chowdhury pleaded to sufficient facts and received a continuance without a finding.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The Boston Police Department provided valuable assistance with the investigation. Assistant U.S. Attorneys Luke A. Goldworm and John T. Dawley of the Criminal Division prosecuted the case.
Boston Man Charged with Sexually Exploiting MinorRead the Press Release
BOSTON – A Boston man was indicted today by a federal grand jury in Worcester for child exploitation offenses.
Jalen Latimer, 25, of Roxbury, was indicted on one count of conspiracy to commit sex trafficking and two counts of sexual exploitation of a minor. Latimer is currently in state custody on related offenses and will appear in federal court in Worcester on April 30, 2024. The defendant was previously charged by criminal complaint with one count of sexual exploitation of a minor on Feb. 16, 2024.
According to the indictment, in July 2023, Latimer conspired with another individual to sex traffic a minor victim. It is further alleged that Latimer coerced two other minor victims to engage in sexually explicit conduct for the purpose of producing child pornography.
Latimer was arrested in February 2024 and is facing charges by state authorities in Worcester Superior Court of rape of a child, aggravated indecent assault and battery of a child, human trafficking of a minor and depicting a minor in sexual conduct.
The charge of sexual exploitation of a minor provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of conspiracy to commit sex trafficking provides of a sentence of up to life in prison, up to a lifetime supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Worcester Police Chief Paul B. Saucier; and Oxford Police Chief Michael K. Daniels made the announcement. Valuable assistance was provided by Rhode Island State Police and Massachusetts State Police. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Asset Forfeiture Actions Result in More Than $2.28 Million Returned to Victims of 2 Business Email Compromise ScamsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, through civil asset forfeiture actions, the government has recovered approximately $2,288,385 for victims of two separate business email compromise scams.
A business email compromise (“BEC”) scam, which usually involves email spoofing, involves the creation of email messages with a deceptive sender display name. When a bad actor engages in an email spoofing attack, the bad actor sends an email header that displays an inaccurate sender address, which can deceive the receiver unless the receiver inspects the header closely. This inaccurate sender address is usually someone the receiver knows and trusts, so the receiver might open malicious links or engage in risky behavior that the receiver would otherwise not engage in. In each of these cases, the bad actors impersonated one of the parties to the real transactions and replaced the intended beneficiary account with their own just prior to payment. By changing the intended beneficiary account, the bad actors commit a business email compromise scam.
In the first scam, criminal actors compromised an email account associated with a member of management team of the City of New Haven’s Board of Education. In June 2023, these actors created a fake email account that mimicked the email of a bus company that held a contract with the Board of Education for bussing. The criminal actors used the compromised email address to send test emails between the compromised email address and the newly created fake bus company email address. Using the fake bus company email address, the criminal actors then were able to change the bus company’s payment information from the real bus company to an account held by the criminal actors, and New Haven sent approximately $5.9 million dollars to the account. The government successfully seized and forfeited approximately $1,187,691 of the stolen money that was contained in two bank accounts. When combined with an additional approximately $3.6 million dollars that was returned by the financial institutions with the assistance of law enforcement, the government was able to significantly mitigate the loss to the City.
The second forfeiture action involved a New Haven-based healthcare company that was a victim of a BEC attack. In April 2023, the company’s yearly medical malpractice insurance payment was set to be paid. Shortly before the due date, the company received a fraudulent email, purportedly from its malpractice insurance company, with new wire instructions. The company sent approximately $1,652,254 via a wire transfer using the newly provided instructions. The company discovered the fraud in late May 2023 after it received a payment reminder from its insurance company. The investigation revealed that the unknown actor had created an email address that mimicked that of a known employee of the insurance company. By the time the BEC scam was discovered, approximately $551,000 had been transferred out of the account that the victim wired the money into. The government successfully seized and forfeited approximately $1,100,694 remaining in the account, and the company was reimbursed by insurance for the remaining loss.
“These cases demonstrate the U.S. Attorney’s Office’s commitment to helping victims of crime,” said U.S. Attorney Avery. “Working with our law enforcement partners, we will continue to pursue criminal prosecution of the individuals responsible for these crimes, and by using civil asset forfeiture, we can expeditiously recover as much stolen money as possible and return this money to victims prior to criminal convictions. Although it can be difficult to come forward and admit that you were a victim of a crime, we stand ready to help you to the fullest extent possible. The U.S. Attorney’s Office will work with the victims in these cases and with the Department of Justice’s Money Laundering and Asset Recovery Section to properly return the forfeited money to the victims.”
“To avoid becoming the victim of a BEC scheme, verify email addresses are accurate when checking mail on a cellphone or other mobile device before you open any attachments or follow any instructions,” said FBI Special Agent in Charge Fuller. “Never make any payment changes without verifying with the intended recipient by phone or in person. If you think you have been a victim of a BEC scheme, immediately contact your bank to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity, and file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov.”
The Internet Crime Complaint Center, is run by the FBI and serves as the country’s hub for reporting cybercrime. Visit www.ic3.gov to report a crime, and for updated information regarding BEC trends and other cyber fraud schemes.
These cases are being investigated by Federal Bureau of Investigation and the U.S. Marshals Service, and prosecuted by Assistant U.S. Attorney David C. Nelson.
Armored truck company employee pleads guilty to stealing cash meant for ATMsRead the Press Release
COLUMBUS, Ohio – An employee of an armored truck company that delivered cash to bank branches and ATMs pleaded guilty in U.S. District Court to embezzling money as a bank agent.
Justin Eskridge, 37, of Reynoldsburg, admitted he took more than $220,000 from PNC ATMs. Eskridge was employed as an armed service technician for Loomis LLC and delivered cash for and to federally insured financial institutions. Loomis contracted with PNC Bank to transport money to various ATMs and bank branches.
Eskridge was employed with Loomis beginning in July 2021 and transported bags of money by armored vehicle to various PNC branches and ATMs. The thefts began around Dec. 14, 2022, and continued through Jan. 9, 2023.
PNC bank tellers reported shortages totaling approximately $226,000 cash when they balanced the residual amounts on certain ATMs. An investigation by Loomis identified Eskridge as the technician servicing that route.
Eskridge eventually admitted to Loomis that he had taken the money and led Loomis to recover approximately $144,000 cash hidden in his car. As part of his plea, he will pay the remaining balance to Loomis.
Theft or embezzlement by a bank employee or agent is a federal crime punishable by up to 30 years in prison. Congress sets the maximum statutory sentence, and sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Damoun Delaviz is representing the United States in this case.
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Annandale doctor who regularly prescribed “excessively high” opioid amounts pleads guiltyRead the Press Release
ALEXANDRIA, Va. – An Annandale doctor pleaded guilty today to maintaining a drug-involved premises.
According to court documents, Lino Cueto Montilla, 57, was licensed to practice medicine in 1995. Montilla practiced as an obstetrician-gynecologist (ob-gyn). Montilla did not specialize in pain management, nor did he receive training on how to treat patients suffering from chronic pain.
From 1999 to 2015, Montilla worked as an ob-gyn with Fairfax Ob-Gyn Associates, rarely prescribing Schedule II pain medication to his patients. In January2016, Montilla began to treat patients at Fairfax Pain Clinic (FPC), which specialized in pain management. From January 2016 through September 2020, Montilla was the primary doctor prescribing Schedule II controlled substances at FPC.
FPC was only open during the morning on two days per week. During an approximate three-hour period on those days, Montilla would see and prescribe opioids to approximately 20 patients, spending, on average, less than 10 minutes with each patient. Despite conducting only cursory exams of patients, Montilla prescribed excessive amounts of opioids to many of these patients for years.
Montilla prescribed high opioid dosing without first confirming diagnoses, performing relevant medical examinations, or reviewing prior medical records, which were relevant and necessary steps when prescribing such high opioid dosages. Montilla rarely ordered his patients to seek physical therapy or any other treatment for their chronic pain. Montilla maintained very limited documentation in the patient files, including failing to document his reasons for prescribing high opioid dosages.
Montilla is scheduled to be sentenced on Aug. 9. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Jack Morgan and Zoe Bedell 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. 1:24-cr-72.