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Wednesday 13 March 2024
Junian M. Johnson, 47, of Omaha, Nebraska, was sentenced on March 13, 2024, in federal court in Omaha for being a felon in possession of a firearm.Read the Press Release
United States Attorney Susan Lehr announced that Junian M. Johnson, 47, of Omaha, Nebraska, was sentenced on March 13, 2024, in federal court in Omaha for being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Johnson to 120 months’ imprisonment. There is no parole in the federal system. After Johnson’s release from prison, he will begin a 3-year term of supervised release.
On November 13, 2022, Omaha Police Officers responded to report of shots fired in the area of N. 24th and Bristol Streets in Omaha. Douglas County Dispatch advised the caller had observed a black Chevrolet Tahoe with the driver firing gunshots in the area. Reporting officers tracked the vehicle’s license plate to its registered address just a few blocks away.
As officers responded to the home, they observed the defendant seated in the driver’s seat of the vehicle in the driveway of the residence. There were no other individuals in or around the vehicle.
Officers initially called out to the driver, later identified as Johnson, to speak to him. Johnson opened the rear driver’s door and could be seen reaching into the vehicle before locking the vehicle, throwing the keys into the vehicle, then closing the locked door. While speaking with Johnson, officers observed what appeared to be a magazine to a firearm sticking out from underneath the driver's seat of the vehicle in plain view.
Johnson’s vehicle was searched pursuant to a search warrant. Officers recovered a yellow bag containing a Glock 29- 10mm handgun with one round in the chamber, and a loaded magazine was found under the driver’s seat. The handgun was reported stolen out of Bellevue, Nebraska. In the center console officers found a clear baggie containing 27 blue circular pills, stamped with an “M” and a “30” – later confirmed to contain fentanyl according to a forensic laboratory report.
Johnson has the following prior convictions: Felon in Possession of a Firearm (1998) and Conspiracy RICO - Conspiracy to Distribute Marijuana (2009), both in the United States District Court, District of Kansas; and Possession of Cocaine, Marijuana, No Drug Stamp (2002), in the District Court of Sedgwick County, Kansas; and Felon in Possession of Ammunition (2015), in the United States District Court, District of Nebraska.
This case was investigated by the Omaha Police Department.
Iowa Man Sentenced for Drug Trafficking CrimeRead the Press Release
United States Attorney Susan Lehr announced that Stephen Ismael Monarrez, 45, of Carrol, Iowa, was sentenced on March 13, 2024 in federal court in Omaha, Nebraska, for distributing methamphetamine. United States District Judge Brian C. Buescher sentenced Monarrez to 120 months’ imprisonment. There is no parole in the federal system. After Monarrez’s release from prison, he will begin a 5-year term of supervised release.
On June 8, 2022, an ATF confidential source (CS) arranged to purchase meth from Monarrez. The CS was shown a photo of Monarrez, that they identified as the person who agreed to sell 4oz of meth for $1,200.00 dollars.
The CS went to the prearranged meet location in Omaha equipped with audio/video equipment. The CS parked on the east side of the street and Monarrez, identified by surveillance, entered the passenger side of the CS’s vehicle where the controlled buy occurred. A forensic lab determined the methamphetamine to be 94% pure.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Insurance Agent Charged in Alleged Scheme to Steal Clients Identities, File Fraudulent Insurance ApplicationsRead the Press Release
PROVIDENCE, RI – A North Attleboro, MA, self-employed insurance broker has been charged in federal court in Rhode Island with executing a scheme to obtain tens of thousands of dollars in commissions from an Iowa-based life insurance carrier by making unauthorized use of his clients’ personal identity information to sign them up for end-of-life insurance policies and draw money to pay for the unauthorized policies from their bank accounts, announced United States Attorney Zachary A. Cunha.
Bruno Francis Ragusa, 53, is charged by way of a federal criminal complaint with wire fraud, identity theft, and aggravated identity theft. He was released on unsecured bond following an initial appearance in U.S. District Court in Providence on Tuesday. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
It is alleged in documents filed with the court that Ragusa, through his North Attleboro-based company Atlantic Coast Senior Solutions, Inc., fraudulently obtained sales commissions by affixing the electronic signatures and other personal identity information of clients, without their knowledge or permission, on insurance policy applications and payment authorization forms for policies they did not request or authorize.
It is alleged that Ragusa utilized an online tool to submit approximately 206 policy applications to Great Western Insurance Company (GWIC), located in Des Moines, Iowa, from January 2019 to February 2023, of which an FBI review of records provided by Massachusetts insurance fraud investigators and GWIC determined that between December 5, 2022, and February 9, 2023, Ragusa electronically submitted nearly 150 insurance policy applications to GWIC, some just 15 minutes apart. The investigation revealed that some of the applications were being submitted in the names of people who had already passed away. Calls to the living “applicants” revealed that they did not know that policy applications had been submitted in their names and had not authorized Ragusa to submit the applications or payment authorization forms. Upon approval of an application, GWIC issues an advance commission to the agent responsible for the sale of the policy. The agent also receives an additional commission for each month a payment is received by GWIC and that the policy remains in effect. If a policy is cancelled shortly after being issued, the agent is required to return to GWIC the advance commission paid by the company. GWIC records show that Ragusa received $134,660.90 in advanced commission and $2,295.66 in additional commissions. Based on early policy cancellations, Ragusa owes GWIC $70,379.47.
On November 28, 2023, the Department of Business Regulation for the State of Rhode Island revoked Ragusa license to sell insurance in Rhode Island. Ragusa’s licenses to sell insurance in Massachusetts and Connecticut remain active.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
The matter was investigated by the FBI. United States Attorney Cunha thanks the United States Attorney’s Office for the District of Massachusetts and the North Attleboro Police Department for their assistance.
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Hopkinton Couple Arrested for Multiple Fraud SchemesRead the Press Release
BOSTON - A Hopkinton couple has been arrested and charged in connection with separate schemes to defraud their workers’ compensation insurance carriers, the Small Business Administration (SBA) and their mortgage lender.
Ronaldo Solano, 51, and Adriana Solano, 40, were indicted by a federal grand jury in Boston with one count each of conspiracy to commit mail and wire fraud and one count of conspiracy to commit wire and bank fraud. Ronaldo Solano was also charged with one count of mail fraud and one count of wire fraud. The defendants were arrested this morning and will appear in federal court in Boston at 3:30 p.m. today.
According to the indictment, between in or about 2012 and in or about 2020, Ronaldo and Adriana Solano — who operate a roofing and construction company based in Framingham under the names H&R Roofing & Construction Inc. and H&R Roofing & Siding Corp. — avoided more than $627,000 in workers’ compensation insurance premiums by underreporting their payroll and paying workers through a shell company.
Separately, it is alleged that, between in or about 2021 and in or about 2022, Ronaldo and Adriana Solano submitted a loan application on behalf of H&R Roofing & Siding Corp. to the SBA under the Economic Injury Disaster Loan (EIDL) Program, which provided for pandemic relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act. In the application, Ronaldo and Adriana Solano allegedly requested $2 million in relief funds for working capital and other eligible business expenses. After receiving the relief funds, it is alleged that Ronaldo and Adriana transferred $1 million of the funds to a personal bank account they shared, from which they allegedly used more than $825,000 for a down payment towards a home in Hopkinton. It is alleged that Ronaldo and Adriana Solano borrowed another $770,500 from a mortgage lender to fund the purchase of the Hopkinton home but did not disclose to their lender that they were using EIDL funds for the down payment.
The charge of conspiracy to commit mail fraud and wire fraud provides for a sentence of no more than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit wire fraud and bank fraud provides for a sentence of no more than 30 years in prison, five years of supervised release and a fine of $1 million or twice the gross gain or loss, whichever is greater. The charges of mail fraud and wire fraud provide for a sentence of no more than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Christopher Algieri, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Insurance Fraud Bureau of Massachusetts. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the EIDL Program, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
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. Additionally, this case was investigated in connection with the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, which was established to promote transparency and coordinate oversight of the federal government’s COVID-19 pandemic response. The PRAC brings together federal agents from 20 agency Inspector Generals to detect fraud, waste, abuse and mismanagement in the more than $5 trillion in authorized COVID-19 funds.
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.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Green Bay Man Indicted for Distributing Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 12, 2024, a federal grand jury had returned an indictment charging Bryan S. Peterson (age: 45) of Green Bay, Wisconsin, with two counts of distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2)(A). Peterson was arrested and appeared in federal court today.
If convicted of either count, Peterson would face a mandatory minimum of five years and up to 20 years in federal prison. He also would face a maximum fine of up to $250,000 per count, and a conviction would require him to register as a sex offender under state and federal law.
This case was investigated by the U.S. Department of Homeland Security’s offices in Monterey, California, and Milwaukee, Wisconsin. Assistant United States Attorney Daniel R. Humble will prosecute 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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact: Public Information Officer
(414) 297-1700
Green Bay Man Indicted for Distributing Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 12, 2024, a federal grand jury had returned an indictment charging Bryan S. Peterson (age: 45) of Green Bay, Wisconsin, with two counts of distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2)(A). Peterson was arrested and appeared in federal court today.
If convicted of either count, Peterson would face a mandatory minimum of five years and up to 20 years in federal prison. He also would face a maximum fine of up to $250,000 per count, and a conviction would require him to register as a sex offender under state and federal law.
This case was investigated by the U.S. Department of Homeland Security’s offices in Monterey, California, and Milwaukee, Wisconsin. Assistant United States Attorney Daniel R. Humble will prosecute 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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact: Public Information Officer
(414) 297-1700
Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Wausau Man Charged with Possessing Methamphetamine Intended for Distribution
Jonathan Rodriguez, 38, Wausau, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that Rodriquez possessed the methamphetamine on November 26, 2023.
If convicted, Rodriquez faces a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison.
The charge against Rodriquez was the result of an investigation conducted by the Wausau Police Department and the Marathon County Sheriff’s Office. Assistant U.S. Attorney Louis Glinzak is handling the case.
Fitchburg Man Charged with Possessing a Firearm and Ammunition as a Felon
Damariyah Muhammad, 22, Fitchburg, Wisconsin, is charged with possessing a firearm and ammunition as a felon. The indictment alleges that Muhammad possessed a loaded Glock 19 pistol on January 8, 2024. If convicted, Muhammad faces a maximum penalty of 15 years in federal prison.
The charge against Muhammad is the result of an investigation by the Dane County Sheriff’s Office, Fitchburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Colleen Lennon is handling the prosecution.
Gang Member Who Threatened to Burn Down a Yakima Bar Sentenced to 57 Months for Illegally Possessing a FirearmRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Alexis Nunez, 23, was sentenced after pleading guilty to one count of Felon in Possession of a Firearm. United States District Judge Mary K. Dimke imposed a sentence of 57 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, on March 29, 2022, in the Yakima County Superior Court, Nunez was sentenced to 24 months imprisonment (concurrent) for two separate felony offenses. On July 25, 2022, Nunez was released from state prison. Six months after his release from prison, on January 25, 2023, officers with the Yakima Police Department responded to the Little Dutch Inn bar. Nunez had been drinking alcohol and became agitated when he was told he would no longer be served. Witnesses said they heard Nunez make threatening statements, including that “he would have his homies shoot up the bar and burn it down.” Nunez also bragged that he recently had been released from prison.
YPD Officers observed Nunez and another person walking a short distance from the bar. As officers approached, they saw Nunez throw a black handgun. Officers then arrested Nunez. The firearm was a Taurus, Model G3 semi-automatic pistol. The magazine was loaded with more than 15 rounds of ammunition. Officers also discovered marijuana that was possessed for the purposes of sale.
On March 29, 2022, Nunez had been convicted of Attempting to Elude a Police Vehicle, a felony, in Yakima County Superior Court. Because of this conviction, Nunez could not legally possess a firearm.
“Alcohol, firearms, and felons can be a deadly combination. Mr. Nunez made violent threats to employees and was armed with an illegal firearm. I’m grateful no one was hurt,” stated U.S. Attorney Waldref. “My office prioritizes cases that involve dangerous felons who illegally possess firearms. Along with our law enforcement partners, we will continue our collaborative, focused efforts to target violent offenders and make our communities safer and stronger.”
“As U.S. Attorney Waldref said, felons and firearms don’t mix, especially when alcohol is added into the mix,” said ATF Seattle Special Agent in Charge Jonathan Blais. “We’re thankful that Yakima Police Department was able to apprehend Mr. Nunez quickly and remove him from the streets. Hopefully this sentence will give him time to think about his life choices and change them going forward.”
"Ensuring our community’s safety is our highest priority. The successful conviction of Mr. Nunez highlights the indispensable collaboration between the Yakima Police Department and our federal partners. These joint efforts underscore the commitment to safeguarding our community from violent offenders,” said Yakima Police Chief Matthew Murray.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Yakima Police Department. This case was prosecuted by Assistant United States Attorney Thomas J. Hanlon.
Four South Florida Residents Charged with PPP and Mortgage FraudRead the Press Release
MIAMI –Raisha Kelly, 43, and Widny Thibaud, 44, of Loxahatchee, Florida and Cortira Gray, 33, and Ann Gilchrist, 55 of Miami, Florida have been charged with conspiracy to commit wire fraud wire fraud in connection with their submission of false and fraudulent PPP loan applications.
According to allegations in the indictment and statements made in open court, Kelly, Thibaud, Gray and Gilchrist conspired with themselves and others to submit PPP loan applications and submitted and caused the submission of fraudulent PPP and EIDL loan applications, on behalf of themselves and corporate entities that they controlled. Kelly, in return for the payment of kickbacks, submitted and caused the submission of false and fraudulent PPP loan applications for Gilchrist, Gray and others. Kelly, Thibaud, Gray and Gilchrist submitted and caused the submission of false and fraudulent information and documentation in support of the PPP loan applications, including falsified Internal Revenue Service (IRS) forms, among other things that falsely and fraudulently represented the annual gross receipts and tentative profits of the sole proprietorships and corporate entities they controlled. In total, this conspiracy caused PPP lenders to make approximately $1.3 million in loans to Kelly, Thibaud, Gray, Gilchrist and their co-conspirators.
According to allegations, during the commission of the conspiracy Gray was an employee of the U.S. Postal Service (USPS) and Gilchrist was an employee of the Miami-Dade Transit Department.
Thibaud is also charged with a separate wire fraud scheme for his submission of a false and fraudulent mortgage loan application to a mortgage lender that caused Thibaud to receive a $700,000 mortgage for which he was not qualified.
Gray, Gilcrhist and Kelly had their initial appearances on March 11. Thibaud had his initial appearance on March 12.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Jonathan Ulrich, Special Agent in Charge, USPS Office of Inspector General (USPS OIG), Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Southeast Region made the announcement.
This case was investigated by the USPS OIG, SBA OIG, and DOL-OIG. This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 24-CR-20079.
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Four More Defendants Arraigned in Connection with Nationwide Conspiracy Targeting Credit UnionsRead the Press Release
ALBANY, NEW YORK – Victor Barriera, age 63, of the Bronx, New York, Jerjuan Joyner, age 49, of Brooklyn, New York, Akeem Balogun, age 53, of Brooklyn, and Lesley Lucchese, age 53, of Brooklyn, have been arrested on an indictment charging a bank fraud conspiracy that targeted credit unions all over the country starting in December 2021. All eight defendants have now been arraigned on the indictment.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
According to the indictment, court filings, and statements made by prosecutors in court, beginning in at least December 2021, Oluwaseun Adekoya, a/k/a “John Calling,” age 38, a Nigerian citizen residing in Newark, New Jersey, and David Daniyan, a/k/a “Bamikole Laniyan,” a/k/a “David Enfield,” a/k/a “Tajudeen Dosunmu,” a/k/a “David James,” a/k/a “Tony James,” a/k/a “James Bush,” age 59, a Nigerian citizen residing in Brooklyn, obtained the personal identifying information of scores of individuals who banked at credit unions throughout the United States.
The credit unions were members of a shared branching network, which allowed customers of member credit unions to withdraw funds from their accounts at other member credit unions by presenting an identification with their photograph, their account number, and the last four digits of their Social Security number. The network was designed to allow customers of localized credit unions easier access to their accounts when traveling throughout the country. However, according to the indictment, the defendants exploited this network by creating fake identifications in the names of real credit union customers, but with photographs of other individuals, whom they employed to conduct fraudulent transactions at shared branch member credit unions all over the country. In total, the indictment charges the eight defendants with obtaining more than $900,000, which ringleaders allegedly used to purchase luxury items including Rolex watches, Mercedes-Benz vehicles, and high-end clothing and apparel. The fraud was perpetrated in Albany, Clinton, Rensselaer, and Saratoga counties in the Northern District of New York, and all over the country.
According to statements made by prosecutors and court filings, authorities have seized over $45,000 in cash proceeds of the conspiracy, and an estimated tens of thousands of dollars in jewelry and merchandise, including Rolex watches, Gucci handbags, and Jimmy Choo shoes – many of which were new in their boxes.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The following defendants are charged in the indictment:
- Adekoya is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Daniyan is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Gaysha Kennedy, age 45, of Brooklyn, is charged with one count of conspiracy to commit bank fraud;
- Danielle Cappetti, age 45, of the Bronx, is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Barriera is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Lucchese is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
- Joyner is charged with conspiracy to commit bank fraud; and
- Balogun is charged with conspiracy to commit bank fraud.
Adeyoka, Daniyan, Barriera and Joyner have each been ordered detained pending trial; the other defendants were released with conditions.
The bank fraud conspiracy charges carry a maximum term of 30 years in prison and the aggravated identity theft charge carries a mandatory term of 2 years in prison, to be imposed consecutive to any term of imprisonment imposed on the bank fraud charge. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York and Newark, and Resident Agencies in Westchester, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General; the New York State Police; Cohoes Police Department; Colonie Police Department; Elmira Police Department; Corning Police Department; Plattsburgh Police Department; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; law enforcement agencies in New Hampshire, including the Rochester Police Department, Manchester Police Department, Amherst Police Department; the Norwich, CT Police Department; law enforcement agencies in Massachusetts, including the Springfield, MA Police Department; the Pennsylvania State Police; the Delaware State Police; and law enforcement agencies in Maryland, including the Harford County Sheriff’s Office and Baltimore County Sheriff’s Office.
Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Fort Wayne Man Sentenced to 100 Months in PrisonRead the Press Release
FORT WAYNE –Jalen Drake, 27 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Drake was sentenced to 100 months in prison followed by 2 years of supervised release.
According to documents in the case, Drake possessed a firearm in March of 2023 after previously being convicted of a felony offense. In 2018, Drake was convicted in Allen County of dealing in marijuana, and as such, was prohibited from possessing the firearm in this case.
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which consists of the FBI, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case 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.
Former Worth County Tax Commissioner Pleads Guilty to Filing False Tax ReturnRead the Press Release
ALBANY, Ga. – The former long-time Worth County, Georgia, Tax Commissioner has admitted to not reporting earnings from work she did for four cities on her tax return.
Tabetha DuPriest, 57, of Poulan, Georgia, pleaded guilty to one count of making and subscribing a false tax return before U.S. District Judge Leslie Gardner today. The maximum sentence is three years in prison to be followed by one year of supervised release, a $100,000 fine and restitution. A sentencing date will be determined by the Court. The defendant is not eligible for parole.
“There is no excuse for a long-time Tax Commissioner to fail to report earnings on personal income taxes, just like other citizens must do,” said U.S. Attorney Peter D. Leary. “These kinds of schemes undermine the public’s trust and simply won’t be tolerated by our office or our law enforcement partners.”
“Tax evasion undermines the integrity of our tax system and harms honest taxpayers,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Albany office. “The FBI remains committed to upholding tax compliance and pursuing those who attempt to evade their tax responsibilities.”
“As a tax commissioner, Tabetha DuPriest breached the public trust by willfully failing to report all of her income as required by law,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS special agents are committed to ensuring everyone pays their fair share of taxes to protect the integrity of the tax system.”
According to court documents, DuPriest was the Worth County Tax Commissioner since 2001; she also served as the President of the Georgia Association of Tax Officials from 2019-2021. In her role as Tax Commissioner, DuPriest oversaw the collection of motor vehicle taxes and property taxes for the Worth County cities of Sylvester, Poulan, Warwick and Sumner. For that work, she earned approximately $80,000 in wages a year and received a Form W-2 from the Worth County Board of Commissioners. In addition to her salary, each of these municipalities separately contracted with DuPriest to collect city taxes, and she was paid separately by each city for that work. An FBI and IRS investigation revealed that DuPriest failed to declare any of the additional income she had received from her independent contracts with the four municipalities in Worth County on her federal tax returns since she became Tax Commissioner. It was not until after she was interviewed by the FBI in 2022 that she began to declare the additional income. During the first FBI interview, DuPriest initially claimed she reported the additional income on her tax returns, however, during a subsequent interview she admitted she did not. DuPriest knew she was required to report these fees as self-employment income on her yearly tax returns. DuPriest received $99,293.65 from the four cities between 2016 and 2021 and did not report it as income, as required, on her tax returns. DuPriest is responsible for causing at least a $27,924.22 tax loss to the IRS and required to pay $22,482.22 in restitution.
This case was investigated by the FBI and the IRS.
Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.
Former U.S. Air Force member in Great Falls sentenced to 10 years in prison for scheme to obtain, sell child sexual abuse materialRead the Press Release
GREAT FALLS — A former member of the U.S. Air Force at the Malmstrom Air Force Base in Great Falls was sentenced today to 10 years in prison, to be followed by five years of supervised release, for obtaining and selling child sexual abuse material, U.S Attorney Jesse Laslovich said.
The defendant, Brandon Earl Bankston, 23, pleaded guilty in October 2023 to possession with intent to sell child pornography.
Chief U.S. District Judge Brian M. Morris presided. The court also ordered $60,000 restitution to victims. To date, the investigation has identified more than 20 victims of Bankston’s scheme, but only 20 victims requested restitution.
In court documents, the government alleged that Bankston obtained child sexual abuse material (CSAM) from various places on the internet and stored the material in an off-shore, cloud-based storage account. Bankston then used mobile messaging applications and fake online profiles to advertise the sale of the material to strangers online. When he found someone interested in the CSAM he possessed, Bankston received payment through electronic wire transfers and would then link the buyer, allowing access to the material stored in his offshore storage account. The government further alleged that Bankston possessed and traded thousands of images and videos of child sexual abuse, some of which depicted the abuse of toddlers. In the summer of 2021, the Great Falls Internet Crimes Against Children Task Force was alerted that a suspect in Montana had uploaded videos containing known CSAM to an account on “X” and further learned that a Snapchat user with a Montana address had posted an image of CSAM. The investigation determined that the internet provider address belonged to Bankston, who was an active-duty member of the U.S. Air Force assigned to the 341st Missile Security Forces Squadron at Malmstrom Air Force Base. Bankston has since been discharged and is no longer affiliated with the U.S. Air Force. Bankston received approximately $6,750 for the sale of CSAM from 42 separate transactions.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The Great Falls Internet Crimes Against Children Task Force, Homeland Security Investigations and the U.S. Air Force Office of Special Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former Telecommunications Company Manager Admits Role in SIM Swapping SchemeRead the Press Release
CAMDEN, N.J. – A former manager of a telecommunications company from Burlington County, New Jersey, admitted swapping the Subscriber Identity Module (SIM) numbers of cell phone customers into mobile devices controlled by another individual, who was paying the former manager for the unauthorized swaps, Attorney for the United States Vikas Khanna announced today.
Jonathan Katz, aka “Luna,” 42, of Marlton, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court on March 12, 2024, to an information charging Katz with conspiracy to gain unauthorized access to a protected computer.
According to documents filed in this case and statements made in court:
In May 2021, Katz was employed as a manager at a telecommunications store and accessed several customer accounts by using managerial credentials. Katz swapped the SIM numbers associated with the customers’ phone numbers into mobile devices controlled by another individual, enabling this other individual to control the customers’ phones and access the customers’ electronic accounts – including email, social media, and cryptocurrency accounts. In exchange for the swaps, Katz was paid in Bitcoin, which was traced back to Katz’s cryptocurrency account.
The conspiracy to gain unauthorized access to a computer offense carries a statutory maximum of five years in prison and a fine of not more than $250,000 or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greater. Sentencing is scheduled for July 16, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Cybercrime Unit.
katz.information.pdfFormer South Carolina Police Chief to be Sentenced in Sextortion SchemeRead the Press Release
COLUMBIA, S.C. — William Bruce Parker, former police chief, is scheduled be sentenced in federal court tomorrow, Thursday, March 14. Parker is being sentenced after being pleading guilty to cyberstalking resulting in serious bodily injury and communicating threats with the intent to extort victims for the production of pornography and coerced sex acts. Read the previous release here.
United States District Judge Cameron McGowan Currie accepted Parker’s guilty plea in October of 2023 and will impose the sentence.
WHEN: Thursday, March 14, 2024, 11 a.m.
WHERE: Matthew J. Perry, Jr. Federal Courthouse
Courtroom 1
901 Richland Street
Columbia, South Carolina
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NOTE: The prosecuting attorneys will be available for interviews following the sentencing. The sentencing hearing could last more than one hour. No cameras or cell phones are allowed in federal court.
Former Law Firm Office Manager Sentenced to 3 Years in Prison for Embezzling More Than $1.1 Million from San Francisco Law FirmRead the Press Release
SAN FRANCISCO – Jairo Tomas Santos was sentenced to 36 months in prison and ordered to pay $1,191,638.64 in restitution for bank fraud in connection with a scheme to embezzle funds from his former employer, a San Francisco-based law firm, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. William H. Alsup, United States District Judge.
Santos, 42, formerly of San Mateo, California, pleaded guilty to the charge on November 20, 2023. According to his plea agreement, Santos admitted he embezzled more than $1.1 million from a San Francisco-based law firm where he had been employed as the office manager. According to his plea agreement, Santos began his embezzlement scheme no later than March 2016 and continued it through February 2023. As part of the scheme, Santos obtained checks from the victim law firm, filled out the payee line of those checks, addressing them to “Jairo Santos,” and signed each check with the signature of the law firm’s senior partner even though Santos was not authorized to do so. Santos then deposited these checks into his personal checking accounts at Wells Fargo Bank. Santos admitted he deposited approximately 806 fraudulent and unauthorized checks from the victim law firm made payable to Santos into his personal checking accounts. The total value of these unauthorized deposits was approximately $1,191,683. Santos deposited these checks from the victim law firm knowing that the payments were not authorized by the firm or its senior partner.
A federal grand jury indicted Santos on July 25, 2023, charging him with three counts of bank fraud, in violation of 18 U.S.C. § 1344. Santos pleaded guilty to one count. As part of his sentencing, Judge Alsup dismissed the remaining counts.
In imposing the sentence, Judge Alsup remarked that this is “an egregious case” with “hundreds and hundreds of checks written and stolen” by the defendant. Judge Alsup emphasized that Santos “took advantage” of the victim law firm and that Santos’s conduct was “unforgivable.” In addition to the prison term and restitution, Judge Alsup also sentenced the defendant to a five-year period of supervised release to begin after the defendant is released from prison. Judge Alsup ordered the defendant to begin serving his prison term on April 23, 2024.
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 the FBI.
Former FBI Agent Trainee Sentenced to 15 Months in Prison for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that SETH MARKIN was sentenced by U.S. District Judge Edgardo Ramos to 15 months in prison for his participation in a scheme to trade in stock of Pandion Therapeutics (“Pandion”) based on material, non-public information that he misappropriated from his then-girlfriend and stole from her employer, a major law firm where his then-girlfriend was an attorney assigned to work on the acquisition of Pandion by Merck & Co. (“Merck”). MARKIN was arrested in July 2022 and pled guilty to securities fraud based on insider trading on December 4, 2023.
U.S. Attorney Damian Williams said: “Seth Markin betrayed the trust of his then-girlfriend when he misappropriated confidential information, traded based on that information, and tipped several friends and family members. Markin knew his actions were wrong and lied, repeatedly, to try to cover up his scheme. Markin, who had been accepted into the FBI as a new agent trainee at the time of his conduct, finds himself in a complete reversal of fortune — instead of investigating crimes, he’ll now spend time in prison. Today’s sentence should serve as a stark reminder that, no matter who you are, if you try to cheat the system by stealing and trading based on material, non-public information, you will be punished.”
As alleged in the Indictment, other public court documents, and statements made during court proceedings:
In early 2021, SETH MARKIN and BRANDON WONG together made more than $1.4 million dollars in illegal profits by trading in stock based on inside information that MARKIN stole from his then-girlfriend, who was at the time an attorney at a major law firm in Washington D.C. (the “Law Firm Associate”). At the time, MARKIN had been accepted into the Federal Bureau of Investigation (“FBI”) as a new agent trainee, and WONG was a systems analyst at an education company. In February 2021, MARKIN secretly looked through the Law Firm Associate’s confidential work documents, without her permission, and learned that, in a matter of weeks, Merck, a publicly traded pharmaceutical company, was going to acquire Pandion, a publicly traded biotechnology company, for approximately three times the value of Pandion’s share price. MARKIN immediately purchased Pandion stock on the basis of this material, non-public information and also told several family members and friends to purchase Pandion’s stock, causing WONG, another friend, and several family members to do so, including Family Member-1, Family Member-2, Family Member-3, Family Member-4, and Friend-1. In text messages, MARKIN assured WONG that he was “not uncertain” that when the “news drop[ped]” about Pandion, the price would “EXPLODE,” and they would earn “triple gains.”
WONG purchased hundreds of thousands of dollars’ worth of Pandion shares based on the material, non-public information he received from MARKIN. In addition to his purchases of Pandion stock, WONG told at least seven other people to purchase Pandion shares, causing some of the people he tipped to purchase tens or hundreds of thousands of dollars’ worth of Pandion stock, including Family Member-5, Friend-2, Friend-3, Friend-4, Friend-5, Friend-6, and Friend-7.
In total, MARKIN and WONG together caused at least 20 people to trade in Pandion stock based on the material, non-public information that MARKIN misappropriated from his girlfriend, resulting in millions of dollars of illegally obtained trading profits. To conceal their illegal insider trading scheme, MARKIN and WONG used an encrypted messaging application and deleted many of their text messages with each other. They also agreed on a cover story that they could provide to law enforcement, namely, that if they were asked how they anticipated Pandion’s stock price increase, they could say they “read it on Stocktwit,” in reference to a social media platform for sharing stock ideas, and falsely say that the news was “publicly being announced there.”
After Merck’s acquisition of Pandion was announced publicly, and the Pandion stockholdings of MARKIN and WONG, and those whom they tipped, significantly increased in value, the defendants sold their shares of Pandion for significant profits. With their illegal profits, the defendants and their tippees purchased luxury items and bought gifts for each other. For example, WONG purchased for MARKIN a Rolex watch valued at approximately $40,000, a trip to Hawaii, and a meal at a three-Michelin-starred restaurant in New York that cost more than $1,000. WONG also purchased a home in Florida.
Thereafter, MARKIN lied in order to hide his illegal insider trading. In or about June 2021, after MARKIN and the Law Firm Associate had ended their relationship and as MARKIN was preparing to begin training as a new agent at the FBI Academy in Quantico, Virginia, the Law Firm Associate called MARKIN to ask why MARKIN’s name had come up in an inquiry by the Financial Industry Regulatory Authority into trading in Pandion stock. In response, MARKIN lied to the Law Firm Associate and falsely claimed that he did not trade in Pandion stock.
MARKIN subsequently took steps to further conceal his criminal activity. On November 18, 2021, MARKIN lied to FBI agents when he was interviewed about his Pandion trading. That day, Special Agents from the FBI interviewed MARKIN in connection with an investigation they told him was being conducted by law enforcement in the Southern District of New York relating to insider trading in Pandion stock. During the interview, MARKIN adhered to the fake cover story he and WONG had concocted and falsely told the agents that he learned about Pandion on StockTwits, that he purchased the stock because of a recent earnings report and a new board member addition, and that he did not know that his former girlfriend worked on the Pandion transaction.
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In addition to the prison sentence, MARKIN, 32, of Washington Crossing, Pennsylvania, was sentenced to three years of supervised release and ordered to forfeit $82,366.
Mr. Williams praised the outstanding investigative work of the FBI and the Department of Justice’s Office of the Inspector General. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed parallel civil actions.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicolas Roos and Negar Tekeei are in charge of the prosecution.
Former California Rideshare Driver Charged with Federal Hate Crime for Antisemitic Attack on PassengerRead the Press Release
A Daly City, California, resident and former rideshare driver was arrested today for an Oct. 26, 2023, assault on a rider because he perceived the rider to be Jewish or Israeli.
“The defendant, a rideshare driver, is charged with assaulting a rider because he thought the rider was Jewish or Israeli,” said Attorney General Merrick B. Garland. “No one in this country should live in fear because of how they worship or where they come from. The Justice Department will aggressively prosecute those who perpetrate hate-fueled violence motivated by antisemitism or by bias of any kind.”
“No one should ever fear being attacked because of their nationality or religion,” said FBI Director Christopher Wray. “In this case, a rideshare driver assaulted the victim because he perceived them as Jewish or Israeli. The FBI is firmly committed to investigating such bias-motivated acts of violence and holding the perpetrators accountable to keep Americans safe.”
“When taking public transportation – whether a taxi, bus, or rideshare – customers should be able to ride without being profiled, or worse yet attacked, because of their nationality or religion by drivers,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We will prosecute any ride-share driver who assaults a passenger in such hate-fueled violence.”
According to the indictment unsealed this morning, on Oct. 26, 2023, Csaba John Csukás, 39, struck the victim in the face while at San Francisco International Airport (SFO) because the defendant perceived the victim to be Jewish or Israeli. The indictment alleges Csukás worked as a driver for an app-based rideshare company and was hired to drive the victim from SFO to the victim’s home. The indictment further alleges that when Csukás approached the victim at a predetermined pickup location, Csukás asked the victim if the victim was Jewish or Israeli, stated that he would not transport a Jewish or Israeli person, and attacked the victim by striking the victim in the face with his fist.
Csukás made his initial appearance today and is charged with committing a federal hate crime which prohibits, among other things, causing bodily injury because of the actual or perceived religion or national origin of a person in circumstances affecting interstate commerce.
Csukás faces a maximum penalty of 10 years in prison and a fine of $250,000 for the hate crime charge. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Special Agent in Charge Robert K. Tripp of the FBI San Francisco Field Office joined the announcement.
The FBI San Francisco Field Office investigated the case.
The U.S. Attorney’s Office for the Northern District of California’s Special Prosecutions Section is 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.
Former California Rideshare Driver Charged with Federal Hate Crime for Anti-Semitic Attack on PassengerRead the Press Release
SAN FRANCISCO—A Daly City, California, resident and former rideshare driver was arrested on March 13, 2024, for an Oct. 26, 2023, assault on a rider because he perceived the rider to be Jewish or Israeli.
“The defendant, a rideshare driver, is charged with assaulting a rider because he thought the rider was Jewish or Israeli,” said Attorney General Merrick B. Garland. “No one in this country should live in fear because of how they worship or where they come from. The Justice Department will aggressively prosecute those who perpetrate hate-fueled violence motivated by antisemitism or by bias of any kind.”
“When taking public transportation – whether a taxi, bus, or rideshare – customers should be able to ride without being profiled, or worse yet attacked, because of their nationality or religion by drivers,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We will prosecute any ride-share driver who assaults a passenger in such hate-fueled violence.”
“This unprovoked attack was senseless and brutal,” said Robert Tripp, SAC of the San Francisco FBI Field Office. “Hate crime is among the FBI’s highest priorities and we will work to bring justice for victims of bias-motivated crime.”
According to the indictment unsealed this morning, on Oct. 26, 2023, Csaba John Csukás, 39, struck the victim in the face while at San Francisco International Airport (SFO) because the defendant perceived the victim to be Jewish or Israeli. The indictment alleges Csukás worked as a driver for an app-based rideshare company and was hired to drive the victim from SFO to the victim’s home. The indictment further alleges that when Csukás approached the victim at a predetermined pickup location, Csukás asked the victim the if the victim was Jewish or Israeli, stated that he would not transport a Jewish or Israeli person, and attacked the victim by striking the victim in the face with his fist.
Csukás made his initial appearance today and is charged with committing a federal hate crime which prohibits, among other things, causing bodily injury because of the actual or perceived religion or national origin of a person in circumstances affecting interstate commerce.
Csukás faces a maximum penalty of 10 years in prison and a fine of $250,000 for the hate crime charge. If convicted, a federal district court judge will determine any sentence after consulting the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Ismail J. Ramsey for the Northern District of California and Special Agent in Charge Robert K. Tripp of the FBI San Francisco Field Office made the announcement.
The FBI San Francisco Field Office investigated the case.
The U.S. Attorney’s Office for the Northern District of California’s Special Prosecutions Section is prosecuting the case.
Former Atlantic City Councilman Admits Submitting False Voter RegistrationsRead the Press Release
CAMDEN, N.J. – A former Atlantic City councilman today admitted falsifying voter registrations, U.S. Attorney Philip R. Sellinger announced.
MD Hossain Morshed, 50, a former councilman of Atlantic City’s Fourth Ward, pleaded guilty today before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with fraudulent procurement and submission of voter registration applications.
U.S. Attorney Philip R. Sellinger“This defendant admitted that he attempted to deprive residents of New Jersey of a fair election by obtaining false voter registration applications and facilitating their submission. Working with our law enforcement partners, we were able to uncover Morshed’s efforts to garner votes from residents who were not allowed to vote for him. We are committed to investigating and prosecuting those who unlawfully attempt to compromise the integrity of our elections.”
“When you sign up to serve in public office, you are, and should be, held to a higher standard. Morshed admits he knowingly committed voter fraud, and then directed others to lie about it,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our voting processes and electoral functions are the bedrock of our democracy, and even a single elected official breaking to law in the hopes of returning to power creates cracks in the foundation. We must do all we can as law enforcement to protect our fundamental structure.”
According to documents filed in this case and statements made in court:
In April 2019, in advance of the June 2019 primary election, Morshed gave a prospective voter a New Jersey voter registration application that had already been filled out and which falsely asserted that the prospective voter had a residential address in the Fourth Ward (in Atlantic City), the ward that Morshed represented on the Atlantic City Council. Even though the address written on the form was not where the voter actually lived, Morshed urged the prospective voter to sign the application. Subsequently, Morshed visited the prospective voter at the voter’s actual residence and presented the prospective voter with a vote-by-mail application to sign which included the same false Fourth Ward Atlantic City address that was on the voter registration application and listed yet another false Atlantic City address for where the mail-in ballot should be sent to the voter.
The Atlantic County Superintendent of Elections subsequently received the falsified voter registration application that Morshed had the prospective voter sign and thereafter, the Atlantic County Board of Elections received the prospective voter’s completed mail-in ballot, and that ballot was counted towards the June 2019 primary election. The prospective voter later admitted that the voter did not receive, complete, or return the mail-in ballot. During lawfully recorded conversations between this voter and Morshed concerning possible questioning by law enforcement, Morshed directed the voter, if questioned by law enforcement, to make false representations about where the voter lived and who filled out the voter forms that Morshed had given to the voter. Sentencing is scheduled for July 16, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy; the FBI’s Newark, Atlantic City Resident Agency’s Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Officer-in-Charge Chief James A. Sarkos; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Cape May County Prosecutor's Office, under the direction of Prosecutor Jeffrey H. Sutherland; as well as special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; and postal inspectors of the U.S. States Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office and Assistant U.S. Attorney James H. Graham of the Organized Crime/Gangs Unit, under the supervision of the Special Prosecutions Division.
morshed.information.pdfFelon Sentenced to Serve 20 Years in Federal Prison for Child Sex TraffickingRead the Press Release
OKLAHOMA CITY – Earlier this week, MARCARIO EMMITT MARTIN, 36, of Oklahoma City, was sentenced to serve 240 months in federal prison for child sex trafficking, announced United States Attorney Robert J. Troester.
On November 15, 2022, a federal grand jury returned a three-count Indictment against Martin, charging him with child sex trafficking, sex trafficking by force, fraud, or coercion, and being a felon in possession of firearms. According to public record, in February 2021 law enforcement received information regarding Martin sex trafficking a minor victim. Court documents allege that Martin sexually abused the victim, provided the victim with disorienting and painful amounts of controlled substances, and engaged in sex trafficking of the minor for at least a month.
On August 31, 2023, Martin pleaded guilty to Count 1, and admitted he recruited, harbored, transported, and provided a person under 18 knowing the minor would be caused to engage in a commercial sex act.
At the sentencing hearing on Monday, U.S. District Judge Bernard M. Jones sentenced Martin to serve 240 months in federal prison, followed by supervised release for life. In announcing his sentence, the Court noted the seriousness of the offense and Martin’s extensive criminal history. The Court will determine restitution at a later hearing.
Public record reflects that Martin holds several previous felony convictions in Oklahoma County District Court, including two counts of possession of methamphetamine in case numbers CF-2016-6100 and CF-2016-7275, possession of a stolen vehicle in case number CF-2017-5130, felon in possession of a firearm in case number CF-2017-6285, escape from a penitentiary in case number CF-2018-1229, and endangering others while eluding and trafficking in methamphetamine in case number CF-2021-641.
This case is the result of an investigation by Homeland Security Investigations and the Oklahoma City Police Department. Assistant U.S. Attorney Mary E. Walters and Trial Attorney Gwendelynn Bills of the Department of Justice’s Child Exploitation and Obscenity Section prosecuted the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
Reference is made to public filings for additional information.
Federal Trial Jury Finds Prospect Man Guilty of Bank Fraud, Wire Fraud, and Money LaunderingRead the Press Release
Louisville, KY – Yesterday a federal jury convicted a Prospect man of seven felony offenses to include two counts of conspiracy to commit bank fraud, two counts of bank fraud, two counts of wire fraud, and one count of money laundering after a seven-day jury trial.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Vince Zehme of the FDIC Office of Inspector General, and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court documents and evidence presented at trial, from 2013 to 2014, Jeffrey Robert Owen, age 59, conspired with his wife, Kimberly Dawn Owen, age 56, to apply for four commercial real estate loans from three financial institutions using personal financial statements that omitted liabilities and judgments. After the loans at one of the banks went into default, Jeffrey Owen and his wife took steps to block the collection through fraud, including filing a fraudulent bankruptcy petition to stay foreclosure proceedings on one of the properties. To obtain escrowed insurance proceeds, Jeffrey Owen also provided the bank with invoices from a fake business and identified an acquaintance who had been dead for several years as one of the people who worked at the business. To thwart the bank and other creditors, Jeffrey Owen and his wife filed a lawsuit on behalf of one of their entities against Jeffrey Owen’s wife in her individual capacity. Jeffrey Owen used the lawsuit to garnish his wife’s wages, so another creditor would be unable to garnish them. They then spent the money from the garnishment on their household expenses such as the mortgage on their $750,000 home and tuition for their two children at a local private school.
Jeffrey Owen is scheduled for sentencing on July 17, 2024, in the United States District Court for the Western District of Kentucky. The Court ordered Jeffrey Owen detained pending sentencing. He faces a maximum sentence of 180 years in prison. A federal district court judge will determine the sentence after considering the sentencing guidelines and other statutory factors.
Kimberly Owen previously pled guilty to misprision of a felony for her conduct. Kimberly Owen is scheduled for sentencing on May 21, 2024, in the United States District Court for the Western District of Kentucky. She faces a maximum sentence of 3 years in prison. A federal district court judge will determine the sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The FDIC Office of Inspection General and the FBI investigated the case.
Assistant U.S. Attorneys Amanda Gregory and Nicole Elver are prosecuting the case with assistance from paralegal James Aaron Cooper.
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Federal Jury Finds Tampa Man and Woman Guilty of Possessing Cocaine, Fentanyl, and Machine Gun During Drug Trafficking CrimesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Elias Xavier Rosario Torres (26, Tampa) and Veronica Estefania Rodriguez Pinuela (23, Tampa) guilty of possession with the intent to distribute fentanyl and over 500 grams of cocaine and possession of a machine gun in furtherance of a drug trafficking crime. In addition, Rosario Torres was also found guilty of conspiracy to possess with the intent to distribute fentanyl and over 500 grams of cocaine and possessing a firearm as a convicted felon. Both defendants face a mandatory minimum penalty of 35 years, up to life, in federal prison. Rosario Torres and Rodriguez Pinuela were indicted by federal grand jury on October 25, 2022.
According to evidence presented at trial, Rosario Torres and Rodriguez Pinuela were stopped on March 8, 2022, by Tampa Police Department officers after a traffic infraction. During the traffic stop, officers located two backpacks in the defendants’ possession containing nearly a kilogram of cocaine, 16 grams of fentanyl, a Glock 23 handgun, two loaded magazines, and additional ammunition. The Glock 23 was modified with a chip that converted the handgun into a machine gun. At the time of the offense, Rosario Torres was a convicted felon, having been convicted of aggravated assault with a deadly weapon, and is prohibited from possessing a firearm under federal law.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Jeff Chang, James C. Preston, and Samantha E. Beckman.
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.
Facial recognition technology used to locate child victim after a decade leading to arrest of Elma manRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Matthew A. Steele, 53, of Elma, NY, was arrested and charged by criminal complaint with production and distribution of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, in January 2023, the Department of Homeland Security Cyber Crimes Center received a referral from the Queensland Police Service in Australia, regarding media they had discovered that appeared to be newly produced and unidentified child exploitation material. The referral included 47 images depicting the sexual exploitation of an early pubescent female victim (Victim 1). In September 2023, HSI performed a visual analysis of images, which included various areas of a home as well as distinct dermatological markings on Victim 1. A few of the images contained metadata, which helped to determine the type and serial number of the camera used and that the photos were created in March 2013. HSI was able to identify and locate Victim 1.
HSI agents executed a search warrant at Steele’s Elma residence, during which agents observed several photographs of Victim 1 as a child in several rooms. They also observed the layout and the décor of the residence, which matched some of the images from the from the Queensland Police Service. Agents also located the camera used to take the images.
Steele appeared at a detention hearing today before U.S. Magistrate Judge Jeremiah J. McCarthy and was ordered detained.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the Great Falls, Montana Police Department, under the direction of Chief Jeff Newton.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Executive Assistant U.S. Attorney to Leave Office after Stellar 14-Year CareerRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that Executive Assistant U.S. Attorney Lee M. Cortes Jr. is leaving the office for private practice after a 14-year career in the District of New Jersey, during which he served in a variety of key roles and made immense contributions to the cause of justice.
Cortes, who came to the office in 2010, oversaw the office’s Health Care Fraud Unit and was deputy chief of the Special Prosecutions Division before taking over as Executive U.S. Attorney. He also worked as a line attorney in the office, trying several federal criminal trials, as well as investigating and taking guilty pleas in some of the office’s most significant matters.
U.S. Attorney Philip R. Sellinger“Lee Cortes is one of the finest attorneys to have worked at the U.S. Attorney’s Office. He has worked on and supervised some of our most complex and important matters and has always conducted himself in the highest traditions of the office. As Executive Assistant U.S. Attorney, Lee has been part of my core management team, overseeing a staff of more than 300 as we work together every day to keep New Jersey safe. In his 14 years with the office, Lee has set a standard of excellence that serves as a model for all of our Assistant U.S. Attorneys.”
While serving as chief of the Health Care Fraud Unit, Cortes supervised a dozen Assistant U.S. Attorneys and directed criminal and civil investigations and prosecutions of corporations, executives, doctors, pharmacies, and others for health care-related offenses. These included health care fraud and violations of the Anti-Kickback Statute, the Federal Food, Drug, and Cosmetic Act, and the Foreign Corrupt Practices Act. He also directed the unit’s qui tam practice and supervised health care-related False Claims Act actions.
As deputy chief of the Special Prosecutions Division, Cortes supervised a dozen federal prosecutors handing public corruption matters, including prosecutions for civil rights violations.
“As a prosecutor, Lee has always acted with integrity, demonstrated an unwavering commitment to fairness, and worked extraordinarily hard to ensure just outcomes,” U.S. Attorney Sellinger said. “His achievements will be remembered, and his presence will be missed.”
Drug trafficker who created fortified compound at Bellingham homeless encampment pleads guiltyRead the Press Release
Seattle – A 32-year-old citizen of Mexico pleaded guilty today to drug trafficking and firearms charges related to his distribution of narcotics at a Bellingham homeless encampment, announced U.S. Attorney Tessa M. Gorman. Rigoberto Vasquez-Martinez has been in federal custody since he was arrested on August 29, 2023, following a traffic stop near Brownsville, Oregon. Vasquez-Martinez will be sentenced by U.S. District Judge Evanson on June 11, 2024.
According to the plea agreement, Vasquez-Martinez lived in a fortified encampment within an area known as the “Walmart encampment” in Bellingham. Vasquez-Martinez admits having armed guards acting as security around the main structure where he stayed. The encampment is called the Walmart encampment because it stretches a half-mile east of Walmart.
Law enforcement has responded to a wide range of incidents at the encampment and received information that Vasquez-Martinez was a significant drug supplier to the area. While Vasquez-Martinez was under investigation, he was stopped in Oregon apparently returning from California where he had picked up a supply of drugs. When Vasquez-Martinez’ car was searched, law enforcement found more than seven kilos of fentanyl pills – more than 65,000 pills in all. Vasquez-Martinez admits he was on his way back to Western Washington to distribute the fentanyl. They also seized $3,000 in cash and multiple cell phones. On that same day, law enforcement searched a storage locker in Lynnwood registered to Vasquez-Martinez’ wife. In it they found three kilos of fentanyl powder, 300 grams of methamphetamine, approximately 1.9 kilograms of heroin, and a 9mm handgun and $46,000 in cash. Vasquez-Martinez admits that 9mm handgun was used in furtherance of his drug trafficking activities.
Finally, on August 31, 2023, law enforcement searched the compound where Vasquez-Martinez had been living. They seized more than $4,000 in cash and an AR-15 semi-automatic rifle. They also seized a sawed-off shotgun.
Due to the drug amounts and the possession of the firearms, Vasquez-Martinez faces a mandatory minimum ten years in prison. Both possession of a controlled substance with intent to deliver and attempted possession of a controlled substance with intent to distribute are punishable by a mandatory minimum five years in prison and up to 40 years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five years in prison to run consecutive to any other sentence imposed.
Both prosecutors and defense will recommend a ten-year sentence when Vasquez-Martinez is sentenced. Judge Evanson is not bound by that recommendation and can impose any sentence allowed by law.
The case was investigated by the DEA and the Whatcom County Sheriff's Office Gang and Drug Task Force (WGDTF).
The case is being prosecuted by Assistant United States Attorney Amanda McDowell with assistance from Oregon Assistant United States Attorney Peter Sax.
Dodson man sentenced to 18 months in prison for assault charge stemming from vehicle crash on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS — A Dodson man who admitted to an assault charge stemming from a vehicle crash in which his truck hit another vehicle, seriously injuring the other driver, was sentenced today to 18 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Marvin James Cole, 28, pleaded guilty in October 2023 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged that on June 22, 2022, Cole crashed his GMC truck into a Dodge Avenger driven by the victim, identified as John Doe, on Highway 66 near Harlem, on the Fort Belknap Indian Reservation. Doe suffered serious injuries and ultimately was treated at a hospital in Seattle. A toxicology report showed amphetamine and methamphetamine in Cole’s blood. Cole agreed that he likely drifted into the other lane when he looked at his phone.
The U.S. Attorney’s Office prosecuted the case. The FBI, Fort Belknap Law Enforcement, Montana Highway Patrol and Phillips County Sheriff’s Office conducted the investigation.
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Crab grab nets federal convictionRead the Press Release
NORFOLK, Va. – A Tangier man pleaded guilty today to overharvesting Chesapeake Blue Crabs in Virginia waters and selling them in Maryland in violation of the Lacey Act.
According to court documents, between March 20, 2023, to April 20, 2023, James Warren Eskridge, 45, exceeded the maximum harvest and sale of blue crabs to a seafood buyer on 16 occasions. Chesapeake Blue Crabs are the most valuable fishery in the Chesapeake Bay and, as such, those fishing blue crabs are subject to strict limits by law. At the time of Eskridge’s violations, Virginia permitted licensed commercial crabbers to harvest up to 27 bushels of blue crab per day, regardless of the number of licenses crabbers present on a single vessel.
Eskridge operated the fishing vessel Rebecca Jean II with two mates out of Tangier Island, Virginia. On April 11, 2023, law enforcement observed Eskridge and his mates offload 60 bushels – more than double the Virginia limit – in Crisfield, Maryland. On April 11, 2023, Eskridge and his mates returned to Crisfield and offloaded 56 bushels. On April 13, 2023, they returned again and offloaded 58 bushels more.
When confronted by investigators, Eskridge originally claimed to have purchased the additional crabs from a “buy boat” to sell on shore. After being challenged, Eskridge admitted that all the crabs were his and that he was over the Virginia harvesting limit for blue crabs. Records from the seafood buyer in Crisfield showed that between March 20, 2023, and April 20, 2023, Eskridge sold in excess of 27 bushels to the seafood buyer on 16 occasions on which Eskridge’s over harvesting ranged from 32 bushels to 58.75 bushels of blue crab.
Eskridge pleaded guilty to one count of knowingly transporting and selling blue crab in interstate commerce between Virginia and Maryland in violation of Virginia law and one count of knowingly making and submitting a false record.
Eskridge is scheduled to be sentenced on July 17. He faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Edward Grace, Assistant Director for the Office of Law Enforcement, U.S. Fish and Wildlife Service, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea.
The Maryland Natural Resources Police provided significant assistance in the investigation of this case.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-141.
Convicted Felon from Pittsburgh Indicted on Narcotics and Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
The three-count Superseding Indictment named Kendall McKoy, 21, as the sole defendant.
According to the Superseding Indictment, on or about June 7, 2021, McKoy possessed with intent to distribute fentanyl and cocaine base. In addition, on that same day, McKoy possessed a firearm in furtherance of that drug trafficking crime. Finally, on or about June 27, 2022, McKoy possessed a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Superseding Indictment in this 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.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Drug Distributor Charged with Distributing Cocaine Base in Decker TowersRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Lamont Hudgins, 42, of Staten Island, New York, has been indicted by a federal grand jury with distributing cocaine base at Decker Towers, a Burlington Housing Authority high-rise for elderly and disabled residents. Hudgins was arraigned on March 11, 2024 and is detained pending further proceedings.
According to court records, in 2018, Hudgins was convicted of distribution of heroin and marijuana in the District of Vermont and sentenced to 46 months’ imprisonment. A complaint filed in this case alleges that, in 2023 and 2024, Hudgins distributed cocaine base and fentanyl to a confidential informant on at least seven occasions in and around Decker Towers.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Hudgins is presumed innocent until and unless he is convicted of a crime. Hudgins faces up to 20 years in prison and a fine of up to $1,000,000. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Federal Bureau of Investigation, the Burlington Police Department, the Franklin County Sheriff’s Department, and the Northwest Vermont Drug Task Force.
Assistant United States Attorney Corinne Smith is handling the prosecution. Mark A. Kaplan, Esq., represents Hudgins.
Columbus, Ohio, Resident Sentenced to More than 11 Years in Prison for Trafficking of Cocaine into Western PennsylvaniaRead the Press Release
PITTSBURGH, Pa. - A resident of Columbus, Ohio, has been sentenced in federal court to 135 months of imprisonment, to be followed by five years of supervised release, on his conviction for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Norberto Castillo-Lopez, 34, who was found guilty of the charge during a three-day jury trial in November 2023.
The evidence introduced during that trial established that Castillo-Lopez was the organizer and leader of an organization that was trafficking kilogram-quantities of cocaine from Columbus, Ohio, into the Western District of Pennsylvania. Beginning in December of 2019 and continuing through August of 2020, the Drug Enforcement Administration received authorization to conduct a Title III wiretap investigation into that organization, and Castillo-Lopez was intercepted agreeing to supply kilograms of cocaine to his co-conspirator, whose role was to redistribute Castillo-Lopez’s cocaine to lower-level distributors for resale in the cities of New Castle and Farrell. In September 2020, investigators executed a search warrant at Castillo-Lopez’s residence and recovered cocaine, bulk United States currency, and a kilogram wrapper.
In imposing the sentence, Judge Ranjan referenced the severity of the offense.
Assistant United States Attorneys Mark V. Gurzo and Katherine C. Jordan prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration in Pittsburgh, Columbus, and Harrisburg, Pennsylvania; Homeland Security Investigations in Pittsburgh and Orlando, Florida; Internal Revenue Service-Criminal Investigations; United States Postal Service in Columbus; Pennsylvania Office of Attorney General; Lawrence County Drug Task Force–Special Investigations Unit; and New Castle Police Department for the investigation leading to the successful prosecution of Castillo-Lopez.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Columbia Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
COLUMBIA, S.C. — Paul James, III, 35, of Columbia, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on Aug. 19, 2020, James shot a man outside of a Percival Road gas station after the man and James’ girlfriend had an argument. The shooting was captured on the gas station’s video surveillance system. Both James and his girlfriend left the scene. After reviewing the surveillance video, Richland County Sheriff’s Department investigators obtained a search warrant for James’ girlfriend’s address. When investigators executed the search warrant, they found a 9mm handgun inside of a child’s toybox. James claimed ownership of the gun.
James was prohibited from possessing a firearm and ammunition based on previous convictions in 2008 for assault and battery of a high and aggravated nature and three convictions in 2018 for distributing heroin and crack cocaine. James was also convicted in 2008 and 2016 for unlawfully carrying a pistol. James was on probation when the shooting incident occurred.
United States District Judge Mary Geiger Lewis sentenced James to 15 years in prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department (RCSD). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Cheyenne man sentenced for producing and possessing child pornographyRead the Press Release
Cody Foster, age 29, of Cheyenne, Wyoming, was sentenced today to 60 years in prison, with a lifetime of supervised release to follow if he were ever to be released from his term of imprisonment, for producing and possessing child pornography. Foster was indicted in Sept. 2023 and pled guilty on Oct. 30, 2023, to six counts of producing child pornography and one count of possessing child pornography.
Restitution is mandatory and may include expenses related to the victim’s care and treatment. The amount will be determined at a hearing on Jun. 3. U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Mar. 13.
According to court documents, on Aug. 9, 2023, FBI Cheyenne was notified by the FBI’s Operation Rescue Me/Endangered Child Alert Program team of newly produced child pornography on a dark web thread and a potential child victim in Cheyenne. A joint investigation was opened with Wyoming Internet Crimes Against Children Task Force (ICAC) and the FBI based on the images they received from the tip line.
The investigation led agents straight to Cody Foster, a trusted friend of the victim’s mother. Foster exploited their relationship to gain access to the prepubescent child victim. During a search of his residence and devices, agents uncovered hundreds of images and videos of child pornography, including depictions of sadomasochistic activity involving infants and toddlers. Agents also discovered the images and videos of the victim that were initially identified through the tip line. The evidence collected clearly showed the rape and sexual abuse of the prepubescent child victim by Foster, who had a distinct tattoo on his wrist that could be seen in the abusive images and videos he produced of the child victim.
Agents identified Foster and arrested him within 24 hours of receiving the initial tip from FBI’s Operation Rescue Me/Endangered Child Alert Program team.
“Our office has no higher responsibility than the protection of children from sexual exploitation,” said United States Attorney Nicholas Vassallo. “This defendant’s conduct was utterly reprehensible, but swift action by law enforcement put an end to it, and the 60-year sentence imposed by the court will prevent him from causing further harm to our community.”
“The facts of this case are horrific, and no sentence will fully heal the trauma of this victim. But the penalty in this case can send a message to others, and it will keep this predator from abusing more children,” said FBI Special Agent in Charge Mark Michalek. “The FBI will continue to protect the most vulnerable among us from those who seek to take advantage of their innocence.”
“This case highlights the difficult work agents across the state are involved in every day and the commitment of the Division of Criminal Investigation to aggressively pursue anyone who exploits or is a danger to our children. These investigations are conducted by a team of state, local and federal law enforcement officers. In Wyoming, we are fortunate that excellent partnerships exist between all our law enforcement agencies. It is because of these partnerships and the dedication of our law enforcement professionals and prosecutors that the results achieved in this court today are possible,” said Ronnie Jones, director of the Wyoming Division of Criminal Investigation.
This crime was investigated by the Federal Bureau of Investigation and the Wyoming Division of Criminal Investigation’s Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christyne Martens.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Case Number: 23-CR-00141-SWS
Casper man sentenced for possession with intent to distribute methamphetamineRead the Press Release
Tobias Anthony Smith, 42, of Riverton, Wyoming, was sentenced to 70 months’ imprisonment for possession with intent to distribute methamphetamine.
According to court documents, in June of 2023, the Wyoming Division of Criminal Investigation (DCI) learned that Smith was selling methamphetamine. Agents then completed a controlled purchase of methamphetamine from Smith. On Aug. 24, 2023, law enforcement served a search warrant on Smith’s Riverton residence. When interviewed, Smith told agents they would find methamphetamine in the house. Agents searched the property and found 386 grams of methamphetamine along with a scale and packaging material consistent with drug distribution.
Smith was indicted in Sept. 2023 and pleaded guilty on Dec 1, 2023. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Mar. 8.
This case was investigated by DCI and the FBI. It was prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Case No. 23-CR-00138
Camden County Businessman Admits Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, businessman admitted filing false tax returns that failed to report all of his income, U.S. Attorney Philip R. Sellinger announced today.
Anthony Cardellia, 59, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court on March 12, 2024, to an information charging him with one count of making and subscribing a false income tax return.
According to documents filed in this case and statements made in court:
Barreras owned, operated, and worked at home improvement contractors in the Philadelphia metropolitan area. Cardellia admitted that during 2016 and 2017, he used a commercial check casher to negotiate over $1.9 million of revenue checks for the home improvement businesses at which he worked. Cardellia kept about $190,000 of the cash proceeds, which he failed to report as income on his individual income tax returns. Cardellia admitted that he caused a tax loss of more than $45,000.
The count of making and subscribing a false tax return carries a maximum penalty of three years in prison and a fine of up to $250,000. Sentencing is scheduled for July 18, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
cardellia.information.pdfBronx Man Sentenced to 15 Years in Prison for Distributing Fentanyl in Exchange for Sex with A Minor and Causing the Death of A 19-Year-Old VictimRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VIRGIL WARDLOW was sentenced today to 15 years in prison for paying for commercial sex with a minor using fentanyl-laced pills that caused the death of a 19-year-old victim. WARDLOW previously pled guilty to one count of distribution of narcotics before by U.S. District Judge Mary Kay Vyskocil, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “The consequences of the defendant’s conduct are heart-wrenching: The defendant paid for sex with a 16-year-old victim using fentanyl-laced pills, which the victim’s 19-year-old friend then ingested, poisoning her and causing her death. Today’s sentence sends a powerful message to those who traffic deadly drugs to vulnerable victims and demonstrates that this Office will seek justice for families facing the horrific tragedy of losing a loved one to fentanyl poisoning and for victims of child sexual exploitation.”
According to court filings and statements made in court proceedings:
WARDLOW engaged in a pattern of paying for commercial sex with black market pills that contained fentanyl. On or about March 25, 2023, at a hotel room in the Bronx, New York, WARDLOW provided two of those pills to a 16-year-old female (“Victim-1”) in exchange for sex with Victim-1. After WARDLOW had sex with Victim-1 and WARDLOW left the hotel room, Victim-1 and her 19-year-old female friend (“Victim-2”) ingested the pills provided by WARDLOW. Thereafter, Victim-1 became ill, and Victim-2 became unconscious and died of a drug poisoning.
Between at least on or about February 8, 2023, and on or about April 24, 2023, WARDLOW exchanged several messages with other individuals in which WARDLOW offered to provide pills in exchange for sex or money. WARDLOW sent these messages using an anonymized cellphone number that masked his identity from his intended victims.
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In addition to the prison term, WARDLOW, 31, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $17,000 in connection with the funeral expenses of Victim-2.
Mr. Williams praised the outstanding investigative work of the New York State Police, the New York City Police Department, and Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit and Narcotics Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ZAN HAIRSTON, JR., 26, of Bridgeport, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on January 9, 2023, the Bridgeport Police Department received a report that Hairston had unlawfully entered a residence of a former girlfriend, searched through her belongings and, during a subsequent FaceTime call with her, threatened her by brandishing what appeared to be a firearm. When officers located and approached Hairston on Union Avenue in Bridgeport, Hairston attempted to flee. He was apprehended a short distance away, and officers recovered from the ground near Hairston a Taurus TX .22 firearm equipped with a mounted laser and loaded with an extended magazine containing 20 rounds of ammunition, a Glock 26 Gen4 firearm loaded with one round, and a Glock magazine with 13 rounds of ammunition.
Hairston’s criminal history includes felony convictions in Connecticut for conspiracy to commit robbery in the first degree with a firearm, burglary in the second degree, criminal possession of a firearm, and illegal possession of a weapon in a motor vehicle. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
Judge Nagala scheduled sentencing for June 7, at which time Hairston faces a maximum term of imprisonment of 15 years.
Hairston has been detained since his federal arrest on February 22, 2023.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Lauren Clark through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Berkeley County Man Admits to Elder Financial AbuseRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Inwood, West Virginia man has admitted to fraudulently taking over a quarter of a million dollars from his father.
Joseph Beach, age 54, pled guilty to one count of wire fraud. According to court documents and statements made in court, Beach was the fiduciary for his father, who is under the care of a veterans’ care facility and receives monthly benefits. As the fiduciary, Beach received his father’s veteran’s disability, retirement, and social security payments but used them for his own benefit. The total amount of funds taken by Beach was $253,867.12.
“It is always sad when older West Virginians are victimized by their own family members,” said United States Attorney William Ihlenfeld. “We will continue to aggressively pursue those who steal from their loved ones in order to enrich themselves.”
Assistant U.S. Attorney Eleanor Hurney is prosecuting the case on behalf of the government.
The Veterans Affairs Office of Inspector General, the U.S. Office of Personnel Management, and the Social Security Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bangor Man Sentenced to 14 Years After Being Caught with 400g of Fentanyl, 30g of Cocaine and a Firearm while Out on BailRead the Press Release
BANGOR, Maine: A Bangor man was sentenced today in U.S. District Court in Bangor for possessing controlled substances with the intent to distribute and being a felon in possession of a firearm.
U.S. District Judge John A. Woodcock, Jr. sentenced Allen Henry, 49, to 168 months in prison followed by five years of supervised release. Henry pleaded guilty May 23, 2023.
According to court records, in May 2022, officers with the Brewer Police Department responded to a call for service and located Henry in a parked vehicle. A record check revealed Henry had an active warrant for his arrest and active bail conditions stemming from a state charge. The bail conditions prohibited him from using or possessing any alcohol or illegal drugs. Upon conducting a bail check to ensure Henry was compliant with conditions, officers located more than 400 grams of fentanyl, approximately 30 grams of cocaine base and a firearm in his vehicle. Henry has a previous 2013 state conviction that prohibits him from possessing firearms.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and the Brewer Police Department investigated this case.
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Army Hotel Manager in South Korea Pleads Guilty to Conspiracy to Steal Government Property and Commit BriberyRead the Press Release
A U.S. citizen who served as U.S. Army hotel manager in South Korea pleaded guilty yesterday to a conspiracy involving the theft of government property and influencing the award of hotel contracts in exchange for bribes from a South Korean company.
According to court documents, Bon Ku, 52, was employed by the Dragon Hill Lodge (DHL), which is owned by a U.S. Army base in Seoul, South Korea. DHL is one of five resorts operated by the Department of Defense under the Armed Forces Recreation Centers program. Between 2014 and 2020, Ku conspired with Donald Gower, a U.S. citizen who was also a manager at DHL, to engage in two schemes to convert payments for DHL’s recyclable goods to their own use. To carry out these schemes, Ku directed DHL employees to engage in tasks outside the scope of their normal employment duties, resulting in the United States paying them to perform tasks that benefited Ku and Gower.
Between 2014 and 2021, Ku was also involved in four additional schemes in which he influenced the award of contracts valued at over $9 million in exchange for bribes from four South Korean companies, one of which was part of the conspiracy to which Ku pleaded guilty. As part of the bribe scheme to which Ku pleaded guilty, DHL awarded a contract to a South Korean company to, among other things, clean its loading dock. Prior to awarding this contract, Ku had an agreement with the company under which he would receive approximately 10-20% of the value of the contracts that were awarded by DHL. After entering into this agreement, Ku made a positive recommendation to DHL officials regarding the company’s ability to perform on the contract to influence its award to the company. Ku received payments related to this agreement from the company in his South Korean bank account, after which Ku split the payments with Gower.
Ku pleaded guilty to a dual-object conspiracy to commit theft of government property and bribery of a public official. He is scheduled to be sentenced on June 18 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of a global resolution, the government will move to dismiss an indictment in the U.S. District Court for the District of Columbia in which Ku is charged with conduct related to one of the additional schemes.
On Sept. 15, 2022, Gower pleaded guilty to conspiracy to commit theft of government property. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of five years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Acting Assistant Director in Charge Amir Ehsaei of the FBI Los Angeles Field Office; and Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army-CID) Fraud Field Office made the announcement.
The FBI and Army-CID are investigating the case.
Trial Attorneys Matt Kahn and Brandon Burkart of the Criminal Division’s Fraud Section are prosecuting the case.
Tuesday 12 March 2024
Woman Charged with Robbing Waterbury and Bristol Banks in FebruaryRead 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 a federal grand jury in New Haven returned an indictment today charging HEATHER BROWN, 49, last residing in New Haven, with robbing three Connecticut banks last month.
The indictment alleges that Brown robbed the Wells Fargo Bank located at 800 Wolcott Street in Waterbury on February 6, 2024; the Liberty Bank located at 1030 Hamilton Avenue in Waterbury on February 7, 2024; and the Webster Bank located at 575 Farmington Avenue in Bristol on February 9, 2024.
Brown has been in custody since her arrest on state charges on February 9, 2024.
The indictment charges Brown with three counts of bank robbery, which carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the Waterbury, Bristol, and Southington Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Nathan J. Guevremont.
U.S. Attorney’s office collects approximately $11-million dollars in civil and criminal actions in fiscal year 2023Read the Press Release
BUFFALO, NY - U.S. Attorney Trini E. Ross announced today that the Western District of New York collected $10,990,785.85 in criminal, civil and forfeiture actions in Fiscal Year 2023. Of this amount, $3,245,581.30 was collected in criminal actions, $4,374,170.95 was collected in civil actions, and $3,036,996 was collected in forfeiture actions. As a result, over $3,224,551.24 was given to victims of crime in the past year, while $1,712,236.00 was provided as aid to state and local law enforcement agency partners who worked with the United States Attorney’s Office on criminal cases.
In making the announcement, U.S. Attorney Ross specifically credited the work done by the Asset Recovery Division, under the leadership of Chief Kevin D. Robinson and Deputy Chief Grace Carducci. “My Office continues to focus on crime prevention, protecting the rights of all victims and collecting restitution and monetary penalties,” stated U.S. Attorney Ross. “We live in a time where victimization crimes against vulnerable people, including children and the elderly, are on the rise. With advancements in technology and the use of social media, my office has devoted considerable time and resources towards adjusting our efforts to stay ahead of the perpetrators. Our goal is to make sure that those committing crimes do not become unjustly enriched from their illegal actions and to make the victims whole.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
In addition to recovering funds, 27 dangerous firearms and 253 rounds of ammunition were forfeited in FY 2023 as instrumentalities of criminal conduct in drug and violent gang cases. Thirty-one computers and electronic media devices—most related to child exploitation cases—were also forfeited.
The following cases are examples of successful forfeiture and affirmative civil enforcement cases concluded this past year in the Western District of New York:
• US v. 399 Whispering Pines Circle, Greece, NY - The USAO filed a verified civil forfeiture complaint against 399 Whispering Pines Circle, in Webster, as property of value traceable to proceeds furnished in exchange for a controlled substance. The owner is alleged to have conspired with others known and unknown, to possess with intent to distribute and to distribute Schedule II controlled substances, specifically cocaine and fentanyl, in the greater Rochester area. As a result of a settlement agreement, the District Court ordered the forfeiture of the defendant real property to the Government. The net equity value of the real property is valued at approximately $119,000.
• US v. Darnell Manning - The defendant conspired with others known and unknown, to possess with intent to distribute and to distribute Schedule II controlled substances, specifically cocaine and fentanyl, in the greater Rochester area. Manning pleaded guilty and agreed to forfeit over $447,824.00 in seized assets, including United States currency, jewelry, a vehicle, two firearms and rounds of seized ammunition.
• United States ex rel. DeGroat v. Beyond Reps, Inc. et al. - Beyond Reps, Inc. d/b/a IronRod Health and Cardiac Monitoring Services has agreed to pay $673,200.92 to resolve allegations arising under the False Claims Act that they submitted false claims to federal health care programs relating to remote cardiac monitoring services. IronRod is a healthcare solutions company with headquarters in Phoenix, Arizona. IronRod provides remote cardiac monitoring services, among other services. The Government alleged that between January 1, 2018 and April 30, 2021, IronRod utilized technicians who lacked required credentials to conduct remote cardiac monitoring readings. The government also alleged that between June 1, 2018 and August 20, 2018, IronRod misrepresented that it performed services in New York State in order to obtain higher reimbursements from Medicare for remote cardiac monitoring services.
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Two Former City of Miami Police Department Employees Plead Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Two former City of Miami Police Department (MPD) employees pled guilty for their involvement in separate COVID-19 relief fraud cases.
U.S. v. Sheana Haslem, Case No. 24-20037-Cr-WILLIAMS/GOODMAN
On March 6, 2024, Sheana Haslem, 38, who was formerly a MPD Police Staffing Specialist, pled guilty to wire fraud in connection with her fraudulent applications for a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) advance, before U.S. District Judge Kathleen M. Williams.
According to the facts admitted at the change of plea, on July 6, 2020, Haslem, who at the time was employed full-time by the MPD, submitted and with the assistance of an associate, caused to be submitted, to the U.S. Small Business Administration (SBA), a fraudulent EIDL application claiming to be an independent contractor and the 100% owner of a hair and nail salon business operating under her own name. That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, Haslem’s business had gross revenues of approximately $89,993 and 15 employees. As a result of this fraudulent application, Haslem obtained from the SBA a $10,000 EIDL advance.
Subsequently, on February 27, 2021, Haslem submitted, and with the assistance of the same associate, caused to be submitted, a fraudulent PPP loan application claiming to be an independent contractor operating a business under her own name. That application falsely represented the business’ average monthly payroll as being $8,333, and as part of the application process, Haslem submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, claiming she had a security officer business that had a gross income of $102,874, no expenses, and a net profit of $102,874. As a result of this fraudulent application, Haslem obtained a $20,832 PPP loan from an SBA approved lender.
Haslem is scheduled for sentencing on May 28, before Judge Williams in Miami, Florida, where she faces a maximum sentence of twenty years in prison.
U.S. v. Keandra Carter, Case No. 23-20475-Cr-WILLIAMS/GOODMAN
On February 13, 2024, former MPD Public Service Aide Keandra Carter, 35, pled guilty before Judge Williams to wire fraud in connection with her fraudulent application for a PPP loan.
According to the facts admitted at the change of plea, on April 4, 2021, Carter, who was working as a full-time MPD Public Service Aide, submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a business under her own name. That PPP loan application falsely and fraudulently represented that her sole proprietorship’s 2019 gross income was $1,100,000. In support of that application, Carter submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, falsely stating that she was a “hair braider” and that her business had a gross income of $1,100,000. As a result of this false and fraudulent application, Carter obtained a $20,833 PPP loan from an SBA-approved PPP lender based in Pennsylvania.
Carter is scheduled for sentencing on May 2, before Judge Williams in Miami, where she faces a maximum sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, SBA Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the guilty pleas.
The FBI’s Miami Area Corruption Task Force, which includes task force officers from MPD’s Internal Affairs Section, and the SBA-OIG investigated the cases. Assistant U.S. Attorney Edward N. Stamm is prosecuting the cases.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Two Florida Residents Plead Guilty to Conspiring to Sell and Export Aircraft Parts with Counterfeit Airworthiness Approval TagsRead the Press Release
MIAMI - On March 6, Daniel Navarro, 50, of Miami Lakes, Florida, the former Vice President of, Sofly Aviation Services (Sofly), an aviation parts distribution company, and Jorge Guerrero, 71, of Hialeah, Florida, a Procurement & Asset Management Specialist for Sofly, both pled guilty to one count of conspiracy to defraud the United States.
“The prosecutors in our office, alongside our Department of Defense and Department of Transportation partners, are committed to protecting foreign and domestic airlines from people peddling aircraft parts that they falsely and dangerously claim to be airworthy,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Everyone must comply with established regulations in order to protect travelers and preserve aviation safety.”
According to court records, beginning in 2012 and continuing into 2019, Navarro and Guerrero purchased “as removed” aircraft parts and resold them using certificates that falsely claimed the parts to be airworthy under the regulations of the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA). The fraudulent approval tags represented those “as removed” parts to be overhauled, tested/inspected or repaired, which misled their buyers into believing them to be airworthy. Most often, Navarro and Guerrero would use an FAA approved repair station’s FAA certificate number to falsely certify the part to have been overhauled, tested/inspected or repaired by that repair station, when in fact they never were. According to the court documents, those parts were sold to Canadian airlines and a U.S. Department of Defense contractor.
“Falsifying the airworthiness of aircraft parts poses a significant danger to the public and our service members,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “These guilty pleas demonstrate our commitment to root out corruption and bringing to justice those who compromise the safety and readiness of aircraft for personal gain.”
“The guilty pleas in this investigation should send a clear signal that nefarious schemes that comprise the integrity of the aviation industry’s supply chain for commercial and military aircraft will not be tolerated,” said Joseph Harris, Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “We will continue working with our federal, law enforcement, and prosecutorial partners to disrupt fraudulent activities that adversely impact aviation safety.”
A sentencing hearing is scheduled for Navarro and Guerrero on May 23 before U.S. District Judge Federico A. Moreno. Navarro and Guerrero each face a maximum term of imprisonment of five years, followed by a term of supervised release of up to three years, for the offense of conviction. The court may also impose a fine of up to $250,000 and must order restitution. As part of the plea agreement, Navarro and Guerrero agreed to voluntarily forfeit any property acquired as a result of the offense. The judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DOT OIG conducted this investigation jointly with DCIS and with assistance from the FAA.
Assistant U.S. Attorney Zachary Keller is prosecuting the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under Case No. 23-CR-20416.
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Two Charlotte Businessmen Convicted at Trial of Failing to Account for and Pay over Trust Fund TaxesRead the Press Release
CHARLOTTE, N.C. – A Charlotte jury has returned a guilty verdict against two Charlotte businessmen for failing to account for and pay over to the Internal Revenue Service (IRS) more than $150,000 in trust fund taxes over five quarters in 2016 and 2017. Richard Brasser, 57, and Gregroy Gentner, 52, both of Charlotte, were convicted of multiple counts of failing to account for and pay over the trust funds taxes.
Donald "Trey" Eakins, Special Agent in Charge of the IRS, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
“When employers willfully fail to collect, account for and deposit with the IRS employment taxes due, they are stealing from the United States Treasury. In addition, employers who willfully fail to comply with their tax obligations unlawfully gain an unfair advantage over their honest competitors,” said U.S. Attorney King.
“Business owners such as Brasser and Gentner have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS,” said Special Agent in Charge Eakins. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who engages in tax fraud schemes such as these.”
According to evidence presented at trial, witness testimony, and other court documents, rFactr was a company with offices in Charlotte, that sold software and provided ongoing support for that software to companies that were leveraging their social networks as part of their sales platforms. Brasser was rFactr’s Chief Executive Officer and Gentner the Chief Operating Officer. Trial evidence established that from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees, but did not account for the taxes by filing Forms 941 with the IRS. Moreover, the defendants did not pay over the withheld taxes to the IRS in a timely manner.
According to trial evidence, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, between 2015 and 2017, Brasser and Gentner caused rFactr to owe more than $1.1 million in employment taxes.
At sentencing, Brasser and Gentner each face a maximum sentence of five years in prison for each count of failing to account for and pay over the trust funds taxes.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Caryn Finley and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
State Prisoner Indicted for Threatening to Kill A Federal JudgeRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Marcus Pratt (38, Crestview, Florida) with three counts of mailing threatening communications and three counts of influencing, impeding, or retaliating against a federal judge. Pratt faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies Pratt that the United States intends to forfeit any assets alleged to be traceable to proceeds of the charged offenses.
According to the indictment, Pratt sent a handwritten letter through the U.S. Postal Service dated August 2, 2023, addressed to the federal courthouse in Miami, threatening that his associates would kill a certain United States District Judge. Pratt sent another hand-written letter dated September 23, 2023, threatening that Pratt’s associates were going to kill the judge and whoever was at his house when they got there. Finally, Pratt sent a handwritten letter dated October 10, 2023, telling the judge that the defendant’s associates would kill him very soon. All letters were signed by Pratt and threatened to kill the judge due to the performance of his official duties and with the intent to retaliate against the judge on the account of the performance of his official duties.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by the Federal Bureau of Investigation and the United States Marshal Service. It is being prosecuted by Assistant United States Attorneys Rachel Lasry and Kirwinn Mike.
Stanberry Man Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Stanberry, Mo., man was indicted by a federal grand jury today for illegally possessing an unregistered sawed-off shotgun.
Erin L. Graves, 44, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Graves was in possession of a Remington 20-gauge shotgun, which had a barrel of less than 18 inches in length, on Jan. 15, 2024. Graves is charged with one count of being a felon in possession of a firearm and one count of possessing an unregistered firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Graves has five prior felony convictions for stealing, two prior felony convictions for driving while suspended or revoked, two prior felony convictions for tampering with a motor vehicle, two prior felony convictions for burglary, and prior felony convictions for possession of a controlled substance and resisting arrest.
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 Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Gentry County, Mo., Sheriff’s Office, and the Northwest Missouri Drug Task Force.
Project Safe Neighborhoods
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.
St. Charles Parish Man Pleads Guilty to Fentanyl DistributionRead the Press Release
NEW ORLEANS, LOUISIANA – AMARYD DOWNING, age 37, of Hahnville, La. pled guilty on March 5, 2024 to three (3) counts of distribution of a quantity of a mixture and substance containing a detectable amount of fentanyl,in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, on May 8, May 11, and May 22, 2023, St. Charles Parish detectives conducted an investigation during which they made controlled purchases of gram quantities of drugs from DOWNING in the Hahnville area. The drugs from each purchase tested positive for fentanyl and heroin. After making the controlled purchases, detectives arrested DOWNING.
If convicted, DOWNING faces a maximum term of twenty (20) years imprisonment, up to a $1,000,000.00 fine, at least three (3) years of supervised release and a mandatory $100.00 special assessment fee.
This case was investigated by the federal Drug Enforcement Agency and the St. Charles Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Spokane Drug Dealer Involved in Large-Scale Drug Trafficking Conspiracy and Violent Spokane-Area Shooting Sentenced to 11 Years in Federal PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Amy Katherin Riggs, 36, of Dayton, Washington, was sentenced after pleading guilty to Conspiracy to Distribute 500 Grams or More of Methamphetamine and 400 Grams or More of Fentanyl. U.S. Senior District Judge Rosanna Malouf Peterson imposed a sentence of 132 months in prison to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, the Drug Enforcement Administration (DEA) was investigating a drug trafficking organization with significant ties to the Eastern District of Washington. Investigators developed information that Riggs was a key facilitator for the organization as well as one of its biggest clients. The evidence showed Riggs was obtaining and distributing approximately $125,000 worth of heroin, methamphetamine, and fentanyl pills into the community per month. Riggs would receive between one-half to one kilogram of heroin, up to 10,000 fentanyl pills, and one to two pounds of methamphetamine.
When members of the organization were arrested by law enforcement, Riggs would attempt to determine if they were “rats,” meaning cooperating. She also would go to organization locations where search warrants were executed and collect the search warrant returns (documents required to be left by law enforcement) , itemizing the items seized. She also would take anything of value law enforcement might have inadvertently missed. For example, when a search warrant was executed at an organization stash house on Maxwell Avenue in Spokane on January 2022, , law enforcement located over three kilograms of fentanyl pills, a half pound of methamphetamine, a quarter pound of heroin, and several firearms. On the same date, a drug courier was arrested, as he came out of a stash house on the South Hill, with over two kilograms of methamphetamine, just shy of two kilograms of fentanyl pills, a large amount of U.S. Currency, and multiple firearms. Following the execution of these search warrants, Riggs reported to the leader of the organization in Mexico the items that were seized and checked the jail rosters to ensure the individuals were booked in jail – noting to the leader that if they were not, they knew the organization had a “rat” in its inner circle.
In addition, Riggs became a self-styled enforcer for the organization, to earn favor with the leader of the organization, who resides in Mexico. For example, on February 6, 2022, a drug courier for the organization was delivering approximately fifteen-to twenty pounds of methamphetamine and approximately 50,000 fentanyl-laced pills to a man named Brady Baughman in the Spokane area. Baughman tried to pay the courier for the drugs with fake U.S. Currency. The courier would not accept the fake money, so Baughman robbed the drug courier and sped off in his vehicle. Another member of the drug organization, who was present at the robbery, had left her iPad in Baughman’s vehicle and was able to track the device’s location. The couriers then called the leader of the drug organization in Mexico and informed him of the robbery. The leader then asked Riggs to get the drugs back.
Using the iPad’s location, which was relayed to her by the leader in Mexico, Riggs was able to track Baughman’s location. She also was able to text at least three other individuals to assist in locating Baughman, to include Daniel Skjold and her paramour Jody Wallette. In those text messages, Riggs sent details of Baughman’s identity, vehicle, and suspected location.
A short time later, a 911 caller reported an SUV-type vehicle shooting at another vehicle near the intersection of Nettleton and Rowan in Spokane. Responding law enforcement located seven 9mm shell casings in the area. Around that same time, Riggs’s Range Rover SUV was captured on camera in the area of the shooting. Other surveillance video showed a vehicle consistent with the Riggs’s vehicle traveling in the area and captured what appeared to be images of the driver shooting a handgun out the window.
Baughman was later apprehended by Spokane Police, and large kitty litter containers were recovered containing the methamphetamine and fentanyl pills stolen from the runner. Skjold was later arrested on multiple separate state charges stemming from a domestic-violence related drive-by-shooting case, which also involved unlawful possession of a firearm and witness tampering. Skjold later was sentenced to approximately 20 years in state prison for her role in the shooting. Wallette was later arrested on separate federal drug trafficking charges and was sentenced to 20 years in federal prison.
Later on in the investigation, in April of 2022, investigators located a new organization stash house on Nebraska Avenue in Spokane. On several occasions, Riggs was observed arriving and exiting the stash house. Investigators also observed Riggs meet with individuals identified as drug users and engaging in activities consistent with distributing drugs.
On April 13, 2022, a search warrant was executed at the Nebraska Avenue stash house. Riggs was at the home at the time the warrant was executed. During the search, agents found a small of amount of methamphetamine, and ecstasy pills inside Riggs’s purse. In the living room, agents located a quarter pound of methamphetamine sitting on a coffee table. Agents also located two 9mm pistols hidden behind a false wall in the residence. A few days prior to the execution of the search warrant, a separte warrant was executed on Rigg’s Range Rover and $13,000 in U.S. Currency, and the cell phone used during the robbery were located, as well as a .22 caliber firearm that was located in a backpack with paperwork for Riggs as well as Wallette.
An additional stash house was located in Spokane on Walnut Street in May 2022. Physical surveillance revealed a drug courier was utilizing a Lexus vehicle, registered to Riggs, to distribute drugs in the Spokane area. Law enforcement stopped the drug courier as they were leaving stash house, resulting in the recovery of more than two pounds of methamphetamine, six firearms, and around 3,000 fentanyl pills.
During sentencing, Judge Peterson noted Riggs was engaged in “very egregious” conduct by moving massive amounts of drugs into the community – drugs that destroy families – and did so while armed, which increases the danger to all. Judge Peterson also noted Riggs’ text messages showed the clear enthusiastic involvement Riggs had for her continued participation in the organization. In pronouncing the eleven year sentence, Judge Peterson also stated her concern with Riggs’s stated intent to continue her relationship with Wallette, warning Riggs that she will be judged by the company she keeps, and her continued association with him would be “determinantal to [her] future.”
“Ms. Riggs engaged in trafficking significant amounts of illegal narcotics in our community. She also had a reputation as someone who would use violence to accomplish the bidding of drug trafficking organizations,” said U.S. Attorney Waldref. “My office is committed to stopping the flow of deadly narcotics into our neighborhoods. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute dangerous individuals involved with drug trafficking to make our communities safer and stronger.”
“Ms. Riggs played a key role in a drug trafficking organization the dealt large amounts of fentanyl and methamphetamine to our community,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The DEA and our partners worked hard in this case to stop her and this sentence will protect our community from the deadly trifecta of fentanyl, methamphetamine, and firearms that Ms. Riggs brought to our area.”
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Spokane Police Department, and the Spokane County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
Sioux Falls Man Sentenced to 21 Years in Federal Prison in Connection with Fentanyl DeathRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls man convicted of one count of Distribution of a Controlled Substance Resulting in Death and two counts of Possession of a Controlled Substance with Intent to Distribute. The sentencing took place on March 11, 2024.
Armando Angel Cheshier, 25, was sentenced to 21 years in federal prison, followed by three years of supervised release on the count of Distribution of a Controlled Substance Resulting in Death. He was also sentenced to 20 years in federal prison, followed by three years of supervised release on both counts of Possession of a Controlled Substance with Intent to Distribute. All sentences are to run concurrently with one another. He was also ordered to pay restitution in the amount of $12, 457.85 and a $300 special assessment to the Federal Crime Victims Fund.
Cheshier was indicted by a federal grand jury in June of 2022. He was found guilty on all counts by a jury on November 22, 2023.
Cheshier distributed fentanyl and Xanax to the victim in this case, which ultimately resulted in her death, due to the fatal amounts of fentanyl in her system. The defendant and victim in this case were friends and had spent the night together, after both ingesting multiple illegal narcotics. The defendant awoke the next day to find the victim lying lifeless in his bed. After Cheshier traveled across town to obtain Narcan to administer to the victim, the authorities were then called, and pronounced the victim deceased at the scene. An interview of the defendant following the incident revealed that he had not only provided the fentanyl that caused the overdose, but that he had also ingested the remaining pills prior to authorities arriving at the scene. Prior to the date of the overdose incident, Cheshier had traveled to Minneapolis to obtain 100 fentanyl pills, which were for both personal use and distribution in the Sioux Falls area.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Cheshier was immediately remanded to the custody of the U.S. Marshals Service.