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24 April 2024
U.S. Attorney’s Office and the DEA Host Fentanyl Awareness and Prevention SummitRead the Press Release
MINNEAPOLIS – The United States Attorney’s Office along with the Drug Enforcement Administration hosted a community conversation focused on fentanyl awareness and prevention.
Stakeholders from across the Twin Cities, including healthcare advocates, elected officials, outreach workers, community-based organizations, as well as families who have lost loved ones to fentanyl poisoning, convened today to raise awareness about the fentanyl epidemic. The summit included information on current regional drug trends, myths surrounding the fentanyl crisis, and action steps to intervene and help save lives during an overdose situation.
“The goal of this summit is to raise awareness, dispel myths, identify trends and, most importantly, discuss how we as a community can collectively turn the tide on fentanyl deaths in Minnesota,” said United States Attorney Andrew Luger. “I am grateful to the addiction and recovery specialists, the outreach workers, and to the family members who have shared their expertise and their heartbreak. The work must continue. We owe it to our families, our friends, and our communities.”
“The Drug Enforcement Administration is proud to partner with the U.S. Attorney’s Office in an effort to amplify messaging about the dangers of fentanyl in our Minnesota communities,” DEA Omaha Division Special Agent in Charge Steven T. Bell said. “Last year, DEA investigators seized approximately 2.5 million lethal doses of fentanyl in Minnesota. It’s more important than ever that we talk with our loved ones about the consequences that can come from taking just one pill or experimentation with drugs.”
Each year in April, the U.S. Attorney’s Office recognizes National Crime Victims’ Rights Week, which honors crime victims and those who serve them. This year’s theme is “How would you help? Options, services, and hope for crime survivors.” This theme underscores the importance of our individual and collective responsibilities to empower victims through relevant and impactful support services. It highlights the power of collaborative efforts to promote community safety and well-being. For more information please visit: https://ovc.ojp.gov/ncvrw2024/overview
U.S. Attorney’s Office Reaches ADA Settlement with Bennigan’s Restaurant of Mandan, North DakotaRead the Press Release
BISMARCK: United States Attorney Mac Schneider announced today that the U.S. Attorney’s Office for the District of North Dakota completed its investigation and entered into a settlement agreement with Bennigan’s restaurant of Mandan, North Dakota to resolve allegations that Bennigan’s violated the Americans with Disabilities Act (“ADA”). Specifically, a complaint alleged that Bennigan’s refused to allow a veteran with a disability who uses a service animal to enter Bennigan’s with their service animal.
During its investigation, the U.S. Attorney’s Office found that the complainant attempted to enter Bennigan’s with their service animal. A Bennigan’s employee told the complainant they were not allowed to have the service animal in the restaurant and incorrectly told the complainant they needed documentation for the service animal.
Under the Americans with Disabilities Act, individuals with disabilities who use service animals may enter places of public accommodations, such as restaurants, with their service animals. The service animal must be allowed in any part of the restaurant customers are normally allowed to be. There is no requirement that individuals with disabilities show any documentation, licensure, or certification, nor is there a requirement that the service animal be wearing any vest, harness, or collar that indicates it is a service animal. A service animal is simply any dog trained to work or perform tasks for individuals with disabilities. If a place of public accommodation is unsure whether an animal is a service animal, under the ADA they may only ask two questions:
- Is the dog a service animal required because of a disability?
- What work or task has the dog been trained to perform?
Under the settlement agreement, Bennigan’s agreed to adopt a service animal non-discrimination policy for its restaurant, provide relevant training to its employees regarding the ADA, post signage indicating service animals are welcome, and pay $1,000 in damages to the complainant.
“People with disabilities who are accompanied by a service animal are entitled to come and go freely in the community,” said United States Attorney Schneider. “Bennigan’s cooperated throughout this investigation, and I commend its commitment to take swift remedial action. The corrective measures agreed to by Bennigan’s will give individuals with disabilities an equal opportunity to enjoy a great restaurant with legendary Irish hospitality in North Dakota, as is required by the ADA. We hope other proprietors will proactively comply with this important civil rights law. Service animals play an important role to ensure the independence of people with disabilities, and the U.S. Attorney’s Office is committed to ensuring that individuals with disabilities will have full and equal access to places of public accommodation.”
This matter was handled by Assistant U.S. Attorney Melissa H. Burkland of the District of North Dakota.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in North Dakota is not accessible to persons with disabilities may file a complaint online at www.ada.gov or contact the U.S. Attorney’s Office at 701-297-7400.
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U.S. Attorney’s Office Partners with Local Law Enforcement to Commemorate National Crime Victims’ Rights WeekRead the Press Release
LEXINGTON, Ky. – The U.S. Attorney’s Office for the Eastern District of Kentucky, along with the Fayette Commonwealth’s Attorney’s Office, the Fayette County Attorney’s Office, the Lexington Police Department, the Office of the Fayette County Sheriff, and the Federal Bureau of Prison’s Federal Medical Center commemorated 2024’s National Crime Victims’ Rights Week (NCVRW) (April 22-26, 2024) at the Lexington Crime Victims’ Rights Luncheon.
The luncheon is a collaboration of local law enforcement partners, to raise awareness about crime victims’ issues and rights, and to remind the community of the important resources and services available. In 2022, there were nearly 20 million crime victimizations in the United States. More than 6.6 million were the result of violent crimes, including rape or sexual assault, robbery, and aggravated and simple assault. Of those, only about 42% were reported to police.
This local partnership commemorates and celebrates the advancement of victims’ rights and honors those who have provided outstanding victim service. Awards were given by each agency to recognize the remarkable efforts provided by prosecutors, law enforcement officers, and victim assistance professionals across the Eastern District of Kentucky. The U.S. Attorney’s Office honored Justin Blankenship, an Assistant United States Attorney, with the Office’s Danny Ray Smith Crime Victims’ Rights Award, named after the Office’s first Victim Witness Coordinator. AUSA Blankenship was recognized for his extraordinary efforts in a demanding child exploitation prosecution. Through his dedicated support of the victim and tireless prosecution, the perpetrator was convicted and sentenced to a substantial prison term.
Other award recipients from the Lexington 2024 NCVRW Luncheon include:
- Crystal Happy-Clay, honored by the Fayette County Sheriff’s Office
- Marisol Contreras, honored by the Lexington Police Department
- Debbie Price, honored by the Fayette Commonwealth’s Attorney Office
- Amy Smith-Brantley, honored by the Fayette County Attorney’s Office
- Dr. Megan Schuster, Ph.D., honored by the BOP Federal Medical Center
The Office for Victims of Crime (OVC) of the U.S. Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme -- How Would You Help? -- invites all of us to consider how we can help crime victims, both in our professional and personal capacities. This includes ensuring our criminal justice agencies are victim-centered, trauma-informed, and prepared to help crime victims in every way we can. Personally, we should consider how we might help crime victims by being prepared if someone confides in us about victimization and becoming familiar with the many victim services our communities offer. For more information about help for victims, visit ovc.ojp.gov/help-for-victims/overview.
“Ensuring the rights of victims is critically important to the criminal justice system, and we simply must celebrate and recognize this fundamental support that allows victims’ voices to be heard,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Our Office is proud to partner with members of the law enforcement community to honor this dedicated support, and to renew our full commitment to victims of crime.”
OVC and the U.S. Attorney’s Office, along with our local partners, encourage widespread participation in the week’s events and in other victim-related observances throughout the year. On April 25, 2024, the U.S. Department of Justice will host OVC’s annual National Crime Victims’ Service Awards Ceremony, in Washington, D.C., to honor outstanding individuals and programs that serve victims of crime.
For additional information about this year’s National Crime Victims’ Rights Week, and how to assist victims in your community, please visit the U.S. Attorney’s Office website, at www.justice.gov/usao-edky. For additional ideas on how to support victims of crime, visit OVC’s website at www.ovc.gov.
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U.S. Attorney Recognizes National Crime Victims' Rights WeekRead the Press Release
MADISON, WIS. – U.S. Attorney for the Western District of Wisconsin, Timothy M. O’Shea, is joining with the U.S. Department of Justice, Office for Victims of Crime, in recognizing National Crime Victims’ Rights Week, April 21- 27, 2024.
National Crime Victims’ Rights week was established in 1981 to bring greater sensitivity to the needs and rights of victims of crime. The week is an opportunity “to reflect on the importance of making the justice system work for survivors of crime,” said U.S. Attorney O’Shea. “Many people think justice is only a conviction or an arrest, but for survivors, justice means being heard, treated with dignity and respect, and restored to the degree that goal can be achieved through restitution, treatment, and other remedies. My office will continue to strive to honor the voices of crime victims throughout all stages of federal criminal prosecutions.”
U.S. Attorney O’Shea also praised the work of those in law enforcement and in the larger community who support crime victims, “being a crime victim can have lifelong impacts on an individual’s mental and physical health. Providing emotional support and other assistance to crime victims is an invaluable part of providing justice and I applaud those who do this important work.”
More information about Crime Victims’ Rights Week can be found at: https://ovc.ojp.gov/program/national-crime-victims-rights-week/overview.
Two Former Employees of New Jersey Mortgage Lending Business Charged for Roles in Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – Two men have been charged in connection with their roles in a large-scale mortgage fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet A. Elmas, 32, a U.S. citizen who resides in Turkey, are charged by complaint with one count of conspiracy to commit bank fraud. They appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were each released $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
Gallo and Elmas were previously employed by a New Jersey-based, privately owned licensed residential mortgage lending business. Gallo was employed as a senior loan officer and Elmas was a mortgage loan officer and Gallo’s assistant. From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans. Gallo and Elmas routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates. Gallo and Elmas often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties.
By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates. The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval. Between 2018 through October 2023, Gallo originated more than $1.4 billion in loans.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
galloelmas.complaint.pdfTwin Falls Man Sentenced to Federal Prison for Providing Illegal Firearms, Including “Glock Switches,” to Californian with Cartel TiesRead the Press Release
BOISE – Arthur Michael Rhyne, a/k/a Arthur Michael O’Neil, 41, of Twin Falls, was sentenced to 7 years in federal prison for unlawful possession of firearms, U.S. Attorney Josh Hurwit announced today.
According to court records, in August 2023, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Rhyne for illegally obtaining and shipping firearms. Agents learned that Rhyne attempted to ship a loaded Glock 9mm pistol with a machinegun conversion device, called a “switch,” installed on the Glock. A machinegun conversion device is a device that, when integrated with a semiautomatic firearm, will convert it to fire in fully automatic capacity. This conversion of a Glock pistol with a “switch” machinegun conversion device, for example, will result in a rate-of-fire of approximately 1,100 – 1,200 rounds per minute, making these devices particularly lethal.
In October 2023, ATF agents obtained a federal search warrant for Rhyne’s residence in Twin Falls. Upon searching a safe in the residence, agents located 16 firearms, 14 machinegun conversion devices, 3 high-capacity drum magazines, 3 suppressors, more than 2,100 rounds of ammunition, including armor piercing ammunition, and 78 grams of methamphetamine. In addition to the Glock “switches,” agents also seized “Drop In Auto Sears,” which are machinegun conversion devices designed for a rifle platform firearm.
At the time of his arrest, Rhyne was prohibited from possessing firearms due to a 2008 California conviction for second degree commercial burglary.
According to court filings, Rhyne told agents that he was transferring firearms and ammunition to individuals in California. Rhyne admitted that he was purchasing the items, including Glock switches and silencers from a person overseas and then sending firearms and Glock switches to California. He also discussed armor piercing ammunition located in the safe and said it was purchased for his contact in California. When describing his contact in California who was receiving the firearms, Rhyne described him being a cartel drug dealer and said he believed the guns were going to Mexico.
“Glock switches and similar conversion devices are simple to manufacture and are easy to install. They turn regular firearms into machineguns capable of inflicting a tremendous toll in a few split seconds,” said U.S. Attorney Hurwit. “We will not tolerate the proliferation of the devices on our streets and will use all of our resources to hold accountable anyone who would distribute these deadly and illegal devices.”
“Mr. Rhyne clearly knew he was prohibited from possessing, let alone transferring, machine guns and other firearms and ammunition,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “So, this sentence is well warranted. ATF will continue to investigate those prohibited from possessing firearms and still continue to do so, as well as those who possess these deadly machinegun conversion devices.”
“Today's sentencing marks a significant victory in our ongoing efforts to combat illegal trafficking of these “trigger switches”. By partnering with the ATF, we have demonstrated our unwavering commitment to the goal of safe and secure communities for all,” said Inspector in Charge, Anthony Galetti, of the U.S. Postal Inspection Service. “The use and distribution through the mail of these illegal conversion devices poses a serious threat to public safety, and we will continue to work tirelessly to dismantle such operations.”
When sentencing Rhyne, Senior U.S. District Judge B. Lynn Winmill noted the case was “spine chilling.” Judge Winmill stated that by arming people with automatic firearms, silencers, and high-capacity magazines, Rhyne had created a law enforcement officer’s worst nightmare. Judge Winmill also ordered Rhyne to serve three years of supervised release following his prison sentence and to forfeit all recovered firearms and ammunition. Rhyne pleaded guilty to the federal charge in December 2023.
U.S. Attorney Hurwit commended the work of the ATF, the U.S. Postal Inspection Service, and the Twin Falls Police Department, for their collaborative work on this case.
This case was prosecuted by Assistant U.S. Attorneys Erin Blackadar and Christopher Atwood.
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.
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RhyneA_Government's Sentencing MemoThree Members of a Violent National Gang Convicted of RICO in DetroitRead the Press Release
DETROIT – After a seven-week trial in federal court, a jury convicted three members of the Almighty Vice Lords Nation of a RICO conspiracy that involved a 2020 murder, and other crimes, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by James Deir, Special Agent in Charge of the Detroit Field Office of the Alcohol, Tobacco, Firearms and Explosives (ATF), and Detroit Chief of Police James White.
Evidence at trial proved the Almighty Vice Lords Nation (AVLN) was a sprawling criminal enterprise which committed acts of violence, drug dealing, and other crimes, across the country. The trial involved members of the Traveling Vice Lords branch of the AVLN. The jury specifically found that the three men were responsible for a 2020 murder and attempted murder that took place at the Shirley-Plymouth playground on Detroit’s west side. The evidence at trial showed that Davun Baskerville killed J.G., a 29 year old man, in broad daylight in front of his two young children. Baskerville also shot and injured the children’s pregnant mother, who had witnessed the murder. The evidence proved that Terry Douglas and Schuyler Belew, Jr., aided and abetted the murder.
The jury convicted:
- Terry Douglas, 44, of Detroit, who was the Chief of the TVL branch. Douglas was convicted of RICO conspiracy, with a special finding that he was responsible for aiding and abetting the 2020 murder and participating in a conspiracy to distribute more than 280 grams of crack; of aiding and abetting the discharge of a firearm during and in relation to the 2020 murder and attempted murder; of conspiring to distribute more than 280 grams of crack cocaine; and of multiple other gun and drug charges. Douglas is subject to a mandatory 35-year sentence and up to life in prison.
- Schuyler Belew, Jr, 31, of Detroit, who was a leader—what is called a Universal Elite—of the TVLs in Michigan. Belew was convicted of RICO conspiracy, with a special finding that he was responsible for aiding and abetting the 2020 murder and participating in a conspiracy to distribute more than 280 grams of crack; and of aiding and abetting the discharge of a firearm during and in relation to the 2020 murder and attempted murder. Belew faces a mandatory sentence of 20 years and up to life in prison.
- Davun Baskerville, 34, of Detroit, who was the Chief of Security for the TVLs. Baskerville was convicted of RICO conspiracy, with a special finding that he was responsible for the 2020 murder and attempted murder; of discharging a firearm during and in relation to the 2020 murder; and, of discharging a firearm during and in relation to the attempted murder of a witness. Baskerville faces a mandatory sentence of 20 years and up to life in prison.
“Today, a jury delivered justice to the men responsible for a brutal murder that took place in broad daylight in a park where children play,” United States Attorney Dawn N. Ison said. “It gave closure to a mother who was viciously shot in front of her kids. And, hopefully, it sent a clear message to those who are involved in gangs that perpetuate so much violence: stop or we will stop you.”
“Today’s jury verdict finding four more members of the Almighty Vice Lord Nation (AVLN) guilty is proof that ATF Detroit is steadfast in its commitment to disrupt gun violence at its core to ensure every community member has an opportunity to live without the presence of gun violence. These four defendants represent the worst of the worst in our community. They let their individual and collective greed guide their violent pathway straight into federal prison. It should be common knowledge throughout the state of Michigan: violent gang activity will not be tolerated and will be disrupted; change your ways or we’ll help you change them with a drastic change of scenery (federal prison).” said, Special Agent in Charge Jimmy Deir.
“Through collaborating with our federal partners and others across law enforcement, we will continue to bring perpetrators of heinous acts like these to justice, showing our community that violence will not be tolerated in Detroit,” said Chief James E. White. “Together, all of us are making an impact to keep our community safe from violence and hold the bad actors that have been convicted of these crimes accountable.”
The jury convicted a fourth man, Lawon Carter, 36, of Detroit, of possession with the intent to distribute more than 28 grams of crack cocaine, cocaine, and heroin, and two counts of possessing a firearm in furtherance of a drug trafficking crime, but acquitted Carter of RICO conspiracy. Carter faces a mandatory minimum 15 years in prison and up to life.
This is the second trial in less than a year involving the Almighty Vice Lord Nation. In November 2023, three national leaders of the gang were convicted of RICO conspiracy and other crimes in federal court in Detroit.
Suspended DEA Special Agent Sentenced to Four Years in Prison for Taking BribesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN COSTANZO JR. was sentenced today by U.S. District Judge J. Paul Oetken to four years in prison for participating in a scheme in which his co-defendant, MANUEL RECIO, and others funneled tens of thousands of dollars to COSTANZO in exchange for COSTANZO providing sensitive law enforcement information to assist defense lawyers.
U.S. Attorney Damian Williams said: “With today’s sentence, John Costanzo Jr. finally faces the consequences of selling his office as part of a bribery scheme. By disclosing sensitive information in exchange for money, Costanzo endangered his fellow officers, interfered in significant criminal investigations, and violated the laws he had sworn to uphold. Such conduct demands serious punishment, and today’s sentence does just that. Let this be a message to all public officials who are tempted to profit illegally from their service — there will be serious consequences.”
According to the evidence presented in court during the trial:
JOHN COSTANZO JR. was a Drug Enforcement Administration (“DEA”) special agent most recently assigned to DEA Headquarters. He was a Group Supervisor in the DEA’s Miami Field Office until June 2019. MANUEL RECIO is a former DEA special agent who retired as the Assistant Special Agent in Charge for the Miami Field Office in November 2018. Upon his retirement, RECIO began operating his own business, which provided private investigative services to criminal defense attorneys and also helped defense attorneys to recruit clients. From around the time of RECIO’s retirement through around November 2019, RECIO agreed with COSTANZO to provide benefits to COSTANZO in exchange for COSTANZO providing RECIO with nonpublic information about DEA investigations. COSTANZO provided RECIO with information about nonpublic investigations, such as the identities of individuals charged and the anticipated timing of indictments and arrests, and intelligence which COSTANZO obtained from the Narcotics and Dangerous Drugs Information System (“NADDIS”), a DEA database that contains information about individuals who are or have been under investigation by the DEA. RECIO paid COSTANZO for this information, which RECIO used to help recruit new clients for criminal defense attorneys.
Among the benefits paid to COSTANZO were a $2,500 payment made in November 2018, shortly after RECIO’s retirement from the DEA, which was funneled to COSTANZO through a company owned by a close family member of COSTANZO. At the same time that this payment was made, RECIO began asking COSTANZO to run searches in NADDIS to provide RECIO with nonpublic DEA information about DEA targets and investigations. Following that initial payment, RECIO and others continued to provide benefits to COSTANZO, including tens of thousands of dollars that were funneled from RECIO through a company created by a DEA task force officer and $50,000 that was paid to COSTANZO through a close family member for COSTANZO’s purchase of a condominium in January and February 2019.
In return, COSTANZO continued to provide nonpublic DEA information to RECIO, including information about the timing of forthcoming indictments and information about DEA arrest plans of particular targets. COSTANZO also searched NADDIS for names of particular individuals requested by RECIO on dozens of occasions during the scheme and provided RECIO with information and assistance with particular charged defendants represented by attorneys for whom REICO was working. During the scheme, COSTANZO and RECIO took steps to conceal the existence of the scheme, including by structuring the payments from RECIO to COSTANZO through third parties and through COSTANZO’s use of a cellphone provided by RECIO for communications related to the scheme.
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In addition to the prison term, COSTANZO, 49, of Coral Gables, Florida, was sentenced to three years of supervised release and ordered to forfeit $98,250.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Department of Justice’s Office of the Inspector General and thanked the DEA’s Office of Professional Responsibility for its support in this matter.
The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Mathew Andrews, Emily Deininger, and Sheb Swett are in charge of the prosecution.
Summerdale Woman Sentenced to More Than Three Years in Prison for Bank Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
MOBILE, AL – A Summerdale woman was sentenced to 37 months in prison for bank fraud conspiracy and aggravated identity theft.
According to court documents, Jamie Danell Putman, 40, pleaded guilty to engaging in a bank fraud conspiracy between March 2022 and July 2023, and stealing other peoples’ identities in furtherance of the scheme. In April 2022, an identity-theft victim from Robertsdale filed a report with Foley police that somebody had unlawfully obtained her driver’s license, social security number, and other identifiers and had used them to open an unauthorized checking account and deposit fraudulent checks in it. Days later, Foley police arrested Putman at a hotel in possession of the victim’s stolen mail and identification documents, as well as several other items of stolen mail, including blank business checks. Putman admitted in a recorded interview that she had stolen the mail and identification documents. Putman admitted that she and several other people would drive around Baldwin County stealing mail, use acetone to “wash” checks, change the payee information on the checks, and then attempt fraudulent in-person and mobile deposits.
In March 2023, after her release from custody, Putman opened a T-Mobile Money bank account and conducted additional fraudulent deposits of counterfeited and forged checks bearing the identifiers of mail-theft victims. In July 2023, Foley police again arrested Putman, who was a passenger in a vehicle being driven by one of her coconspirators. In Putman’s purse, police found several stolen credits, checks, identity documents, and other stolen mail.
In addition to the 37-month prison sentence, Chief United States District Judge Jeffrey U. Beaverstock ordered Putman to serve a five-year term of supervised release, during which time she will undergo drug testing and treatment, will receive mental health evaluation and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Chief Judge Beaverstock ordered Putman to pay $300 in victim restitution and $200 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service, the Foley Police Department, the Summerdale Police Department, and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Serial Bank Robber Admits to Four Bank Robbery ChargesRead the Press Release
PROVIDENCE, RI – A Rhode Island man previously convicted of robbing seven banks dating back to 1997, today admitted to a federal judge in Providence that he robbed three banks and attempted to rob a fourth all within a three-day span in January 2021, announced United States Attorney Zachary A. Cunha.
Vaughn Watrous, 47, pleaded guilty today to four counts of bank robbery. The defendant’s sentences will be determined at a future date by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Watrous admitted to robbing three banks in Providence and Cranston on January 19, 20, and 21, 2021; and attempting to rob a fourth bank in North Providence on January 21, 2021.
According to court records, Watrous was previously convicted of multiple bank robberies in 1997, 2003, and 2013. In 1997 he was convicted in U.S. District Court in Salt Lake City, Utah, on a charge of bank robbery and sentenced to 51 months in federal prison; in 2003 in U.S. District Court in Providence on two counts of bank robbery and sentenced to 76 months of incarceration; and in October 2015 in U.S. District Court in Providence on four counts of bank robbery and sentenced in February 2016 to a term of incarceration of 92 months.
The case is being prosecuted by Assistant United States Attorney Julianne L. Klein.
The matter was investigated by the FBI, with the assistance of the Providence, Cranston, and North Providence Police Departments.
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Seattle Businessman Charged with Tax Evasion SchemeRead the Press Release
A federal grand jury in Seattle returned an indictment today charging a Washington man with tax evasion and the filing of false tax returns related to a scheme to conceal income received from his commercial property business.
According to the indictment, from at least 2015 to 2020, Steven Loo allegedly controlled and operated eight companies that owned commercial real estate. Each was managed by independent property management companies, which were responsible for managing the day-to-day operations of the real estate. Loo allegedly diverted the income he earned from his real estate by instructing the property management companies to issue checks, categorized as asset management fees, to two other entities that Loo controlled. Loo allegedly knew that the funds deposited into these bank accounts, totaling more than $4.8 million, were income to him and that he was required to report and pay tax on the funds. Nevertheless, Loo allegedly filed tax returns for 2015 through 2020 that did not report or pay tax on these funds.
By his conduct, Loo allegedly caused a tax loss to the IRS of over $1.6 million.
If convicted, Loo faces a maximum penalty of five years in prison for each tax evasion counts and a maximum penalty of three years in prison for each of the false tax return counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tessa M. Gorman for the Western District of Washington made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Regina Jeon of the Justice Department’s Tax Division and Assistant U.S. Attorneys Michael Dion and Sean Waite for the Western District of Washington are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Riverview Woman Sentenced for Embezzling $400,000 from Senior CitizensRead the Press Release
Tampa, FL – U.S. District Judge Thomas Barber has sentenced Victoria Zerillo (49, Riverview) to 18 months’ imprisonment for wire fraud in connection with her embezzlement of funds from a senior citizen residential community. As part of the sentence, the court also entered an order of forfeiture in the amount of $410,963.78, the proceeds of the wire fraud. Zerillo entered a guilty plea on August 18, 2023.
According to court documents, Zerillo was employed as a general manager of a non-profit that provided HVAC, appliance, and plumbing repair services to members of a senior citizen residential community. From December 2015 through November 2022, Zerillo and others conspired to commit wire fraud and embezzled more than $400,000 from the non-profit by creating false and fraudulent bank statements and destroying records. Zerillo spent the money on personal expenses, including luxury vacations. At sentencing, members of the senior citizen community testified that Zerillo’s embezzlement significantly harmed them financially.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with inappropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
Repeat Offender Sentenced for Firearms Offense and Possessing Crack Cocaine Near a SchoolRead the Press Release
WASHINGTON – DeAngelo Wayne McNeil, 37, of Washington D.C, was sentenced today to 36 months for unlawfully possessing a firearm and, while near a school, possessing cocaine base with the intent to sell it. The sentence, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves.
McNeil pleaded guilty January 24, 2024, to a count of unlawful possession of a firearm by a convicted felon and possession with the intent to distribute cocaine base near schools. In addition to the three-year prison term, Chief U.S. District Judge James E. Boasberg ordered McNeil to serve six years of supervised release.
According to court documents, when he was arrested on September 21, 2023, McNeil was on release in the Superior Court for the District of Columbia for similar conduct: unlawfully possessing a gun and possessing cocaine. He also had a 2018 conviction for possessing a gun and possessing cocaine with the intent to sell it.
Police took McNeil into custody near 1919 I Street, Northeast, which is about 850 feet from Phelps High School, located at 704 26th Street Northeast. Officers recovered a set of vehicle keys in McNeil’s hand. In addition, police found McNeil was carrying nearly 20 grams of a rock-like substance that field tested positive as crack cocaine. In his front left pocket, McNeil was carrying $545.25 in cash and a small digital scale.
McNeil’s car was located nearby. Police searched the vehicle and recovered $4960 in cash and a Glock model 30 .45 caliber semi-automatic pistol from the locked glovebox. The gunwas loaded with one round in the chamber and 12 rounds of ammunition in the magazine.
This case was investigated by the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Ryan Lipes and Jared English.
Registered Sex Offender Admits New Child Sex CrimeRead the Press Release
ST. LOUIS – A registered sex offender from northeast Missouri on Wednesday admitted crossing state lines to engage in sex with a minor.
Joshua T. Wilson, 23, of Monroe County, Missouri, pleaded guilty to a charge of transporting a minor across state lines to engage in sexual activity. As part of his guilty plea, Wilson admitted that he met a 16-year-old girl in the spring of 2022. Wilson and the victim began interacting on an almost-daily basis via online apps. They engaged in sexual conversations and exchanged sexual images. Wilson also met the teen for sex, and took her to Kansas, where he engaged in unlawful sexual activity with her.
Wilson is a registered sex offender.
The charge against Wilson carries a mandatory prison term of 10 years, and is punishable by up to 30 years in prison.
The FBI and the Monroe County Sheriff’s Department investigated the case. Assistant U.S. Attorney Dianna Edwards prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsfield Man Charged with Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
BOSTON – A Pittsfield man was indicted last week by a federal grand jury in Springfield for transporting a minor with intent to engage in sexual activity.
Paul Newton-Irelan, 50, was indicted on one count of transportation of a minor with intent to engage in criminal sexual activity. Newton-Irelan will make an initial appearance in Springfield federal court at a later date.
The indictment alleges that on Nov. 26, 2023, Newton-Irelan transported the minor victim to New York and Massachusetts with the intent that the victim engage in sexual activity.
The charge of possession of transportation of a minor with intent to engage in criminal sexual activity provides for a sentence of no less than 10 years in prison, no less than five years of supervised release, and a $250,000 fine.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Catherine G. Curley of the Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Picayune Man Pleads Guilty to Possession with Intent to Distribute 13 Grams of FentanylRead the Press Release
Gulfport, MS – A Picayune man pled guilty to possession with intent to distribute 13 grams of fentanyl.
Brandon Lamont Myers, 41, pled guilty in U.S. District Court in Gulfport.
According to court records, on August 14, 2023, law enforcement officers obtained a search warrant for the residence of Brandon Lamont Myers in Pearl River County, Mississippi. Agents seized $61,276 and 13 grams of fentanyl. They also seized a box of clear plastic bags and several digital scales.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
Myers pled guilty to possession with intent to distribute a controlled substance. He is scheduled to be sentenced on July 30, 2024, and faces up to twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi, Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration, and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations made the announcement.
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations and the Picayune Police Department.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Oregon Man Sentenced to Federal Prison for Conspiracy to Engage in Animal Crushing Resulting in the Torture, Mutilation and Murder of MonkeysRead the Press Release
EUGENE, Ore.—An Oregon man was sentenced to federal prison today for his role in a conspiracy to torture, mutilate, and murder monkeys, and then produce and distribute videos of those acts in exchange for money raised by an online animal abuse group.
David Christopher Noble, 48, of Prineville, Oregon, was sentenced to 48 months in federal prison and three years’ supervised release.
“The victims in this case cannot speak for themselves, but the impact of the grotesque violence brought upon them is unmistakable. At the direction of David Noble and his co-conspirators, the producers of these animal abuse videos not only killed monkeys but did so in a way that extended their pain and suffering as long as possible,” said Nathan J. Lichvarcik, Chief of the U.S. Attorney’s Office Eugene and Medford Branch Offices. “Today’s sentence should make it clear to others engaged in this heinous conduct that they will be held responsible for their crimes.”
“David Noble's depraved actions not only inflicted unspeakable agony upon innocent creatures but also tainted the very essence of humanity’s moral fiber,” stated Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Under Noble's direction, the production and distribution of grotesque animal abuse videos represented a dark descent into the abyss of cruelty and exploitation. Today’s sentencing underscores our unwavering commitment to holding individuals like Noble accountable for their reprehensible crimes against compassion and decency.”
According to court documents, from January 2022 through February 2023, Noble conspired with others in the District of Oregon and elsewhere to send multiple online payments to co-conspirators overseas to fund the production of videos depicting the torture, mutilation and murder of monkeys. In furtherance of the conspiracy, Noble administered an online group wherein members would raise funds to produce, discuss ideas for, and share animal abuse videos.
In Noble’s messages to the group, he expressed his enjoyment of videos depicting the torture and murder of long-tailed macaques, which members of the group, including Noble, referred to as “rats.” In one message to the group sent in June 2022, Noble expressed that the only thing he did not like in abuse videos was when the torturers “kill the rats too quickly,” and he further expressed a desire that they “keep it alive make it suffer make sure it knows to fear you and that you end its existence at any time.” In another message, Noble claimed “the noises they make from pain and abuse are some of my favorite sounds.”
In 2006, Noble, a former United States Air Force officer, was dismissed from the Air Force and ordered to serve six months in military custody following a court martial for fraud and an unprofessional relationship. In early February 2023, following the investigation in this case, investigators executed a search warrant on Noble’s residence and found approximately 50 videos depicting animal abuse, along with several firearms and ammunition.
On May 18, 2023, a federal grand jury in Eugene returned an indictment charging Noble with conspiring to engage in animal crushing and creating and distributing animal crush videos, creating animal crush videos, and illegally possessing a firearm as a dishonorably discharged person.
After his home was searched, Noble relocated from Prineville to Henderson, Nevada, and, on June 13, 2023, was arrested in Henderson. The next day, he made his first appearance in federal court in Las Vegas and was ordered detained pending his transfer to Oregon. On July 21, 2023, after arriving in Oregon, Noble was again ordered detained based on the nature of his offenses, including the extreme violence associated, and his possession of firearms.
On January 10, 2024, Noble pleaded guilty to conspiring to engage in animal crushing and creating and distributing animal crush videos.
This case was investigated by Homeland Security Investigations (HSI) and prosecuted by William M. McLaren and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
Ohio Man Sentenced for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Cincinnati, Ohio, man was sentenced in federal court today for carrying thousands of methamphetamine pills aboard a bus traveling through Kansas City, Mo.
Antuan McClendon, 43, was sentenced by U.S. Chief District Judge Beth Phillips to 11 years and three months in federal prison without parole.
On Dec. 21, 2023, McClendon pleaded guilty to possessing methamphetamine with the intent to distribute.
McClendon was a passenger aboard a bus traveling from Las Vegas, Nevada, to Indianapolis, Indiana, which stopped at a terminal in Kansas City, Mo. McClendon was arrested after a law enforcement drug-sniffing dog alerted to his backpack in an overhead compartment above his seat.
Officers searched McClendon’s backpack and found a large bundle hidden within a pair of jeans. The larger bundle contained three smaller bundles, each of which contained multi-colored tablets inside clear heat-sealed bags. In total, the bundles contained 8,288 methamphetamine tablets, which weighed a total of 2,899 grams.
McClendon admitted to officers that he had purchased the pills in Las Vegas and planned to sell them for $1 apiece.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Drug Enforcement Administration.
Odessa Man Pleads Guilty to Stealing Veterans Affairs FundsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Anthony J. Salomone (64, Odessa) has pleaded guilty to theft of government property. Salomone faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for July 11, 2024.
According to court documents, Salomone’s mother received Veterans Affairs (VA) benefits as the surviving spouse of a deceased veteran. The benefits were direct deposited into the mother’s checking account to which Salomone had access via a power of attorney. Salomone’s mother died on October 2, 2017. Salomone did not report his mother’s death to the VA, which continued to deposit monthly benefits for her until March 2022, thinking she was still alive. Salomone took those benefits, to which he was not entitled, and spent them on his own personal and business expenses. In total, he stole $63,359.92 in funds belonging to the United States.
This case was investigated by the Department of Veterans Affairs - Office of Inspector General’s Southeast Field Office. It is being prosecuted by Special Assistant United States Attorneys Matthew Del Mastro and Suzanne Huyler.
Newark Resident Admits Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted his role in a scheme to steal checks sent through the mail and commit bank fraud, U.S. Attorney Philip R. Sellinger announced today.
Malachi Jefferson, 25, of Newark, pleaded guilty on April 22, 2024, before U.S. District Judge Julien X. Neals in Newark federal court to an information charging him with bank fraud.
According to documents filed in this case and statements made in court:
From April 2022 through November 2022, Jefferson’s conspirator, a U.S. Postal Service employee, stole checks from a Keansburg, New Jersey, post office. Jefferson and his conspirators then worked to deposit the stolen checks in order to fraudulently obtain more than $150,000 from the victim financial institutions.
The defendant faces a maximum sentence of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Sept 9, 2024.
U.S. Attorney Sellinger credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector Christopher A. Nielsen, Philadelphia Division, officers with the Keansburg Police Department, under the direction of Chief Andrew Gogan, the Hazlet Police Department, under the direction of Chief of Police Robert Mulligan, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
jefferson.information.pdfNew Jersey Couple Convicted of Forced Labor and Other Federal CrimesRead the Press Release
After a two-week trial, a federal jury in Camden, New Jersey, found Bolaji Bolarinwa, 50, and Isiaka Bolarinwa, 67, both of Burlington County, New Jersey, guilty of forced labor and other crimes related to their coercive scheme to compel two victims to perform domestic labor and childcare in their home.
Bolaji Bolarinwa was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude. The jury also convicted Isiaka Bolarinwa of two counts of forced labor and one count of alien harboring for financial gain. The defendants were each acquitted of a second count of alien harboring for financial gain.
“The defendants deceitfully lured the victims to the United States with promises of benefits, but then betrayed them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants confiscated the victims’ passports, threatened them, degraded them, physically abused them and kept them under constant surveillance, all to coerce the victims’ labor and ruthlessly exploit them for the defendants’ own profit. Human trafficking is a heinous crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These defendants engaged in an egregious bait-and-switch, luring the victims with false promises of a life and an education in the United States, and instead subjected them to grueling hours, physical abuse and psychological abuse,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents and support staff for ensuring that justice was done in this case.”
“Imagine showing up in a foreign land, hoping for a better life and ending up trapped with no place to go and no one to turn to for help,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “The victims in this investigation suffered in unimaginable ways at the hands of their captors, enduring years of physical and mental abuse. Human trafficking often takes on many different forms and can hide in plain sight. I want to commend the agents and victim specialists who worked on this case, alongside our partners at the U.S. Attorney’s Office. We want everyone to know if you or anyone you know is a victim – you can come to us for help. We will bring your tormentors to justice.”
The evidence presented at trial, including the testimony of two victims, established that, between December 2015 and October 2016, Bolaji and Isiaka Bolarinwa – originally from Nigeria, but living in New Jersey as U.S. citizens – recruited two victims to come to the United States and then coerced them to perform domestic labor and childcare services for their children through physical harm, threats of physical harm, isolation, constant surveillance and psychological abuse. The defendants engaged in this venture knowing that both victims were out of lawful status while working in their home.
Once Victim 1 arrived in the United States in December 2015, Bolaji Bolarinwa confiscated her passport and coerced her through threats of physical harm to her and her daughter, verbal abuse, isolation and constant surveillance to compel her to work every day, around the clock for nearly a year. Isiaka was aware of his wife’s threats and abusive behavior toward Victim 1 and directly benefited from Victim 1’s cooking, cleaning and childcare. The defendants then recruited Victim 2 to come to the United States on a student visa. When Victim 2 arrived in the United States in April 2016, Bolaji Bolarinwa similarly confiscated her passport and coerced her to perform household work and childcare but relied more heavily on physical abuse. On at least one occasion, Isiaka Bolarinwa also physically abused Vitim 2, and he was aware of his wife’s coercive, abusive behavior toward Victim 2 and directly benefited from her cleaning and childcare. Victim 1 and Victim 2 lived and worked in the Bolarinwa home until October 2016, when Victim 2 summoned the courage to outcry to a professor at her college, who in turn, reported the targets to the FBI.
A sentencing hearing will be scheduled at a later date. Both defendants face a maximum penalty of 20 years in prison for each forced labor count, and a maximum penalty of 10 years in prison for the alien harboring count. Bolaji Bolarinwa faces a maximum penalty of five years in prison for each unlawful document conduct count. They will also be required to pay mandatory restitution to the two victims and each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
The FBI Newark Field Office investigated the case.
Assistant U.S. Attorney Jeffrey Bender for the District of New Jersey and Trial Attorney Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
More Than Six Years After Fleeing the U.S., Dominican Republic Native Sentenced to 6.5 Years in Federal Prison for Smuggling $2 Million in HeroinRead the Press Release
PITTSBURGH, Pa. - A Dominican Republic native and former New York City resident has been sentenced in federal court to 78 months of incarceration, to be followed by five years of supervised release, on his conviction for federal drug trafficking offenses, United States Attorney Eric G. Olshan announced today.
United States District Judge Robert J. Colville imposed the sentence on Habys Omar Meran, age 38.
According to information presented to the Court, on January 26, 2016, Meran was driving a van containing a sophisticated, hydraulically activated hidden compartment when stopped on Interstate 80 by a Pennsylvania State Trooper who specializes in drug interdiction. The compartment was found to contain over four kilograms of heroin, an amount valued at over $2 million when packaged and sold on the street. Meran’s passenger—his relative Juan Wilquin Hernandez-Bourdier—was convicted by a jury of all charges on December 13, 2018, and is currently serving a 10-year sentence in the Federal Bureau of Prisons. But prior to Meran’s trial, Meran removed his ankle monitor and fled the country on November 23, 2017. The United States Marshals Service initiated a fugitive investigation and Meran was arrested in the Dominican Republic in 2023 and subsequently extradited back to the United States under an international treaty with the Dominican Republic government.
Prior to imposing sentence, Judge Colville stated that the seriousness of Meran’s drug-trafficking actions and his subsequent flight from justice warranted the significant sentence imposed. Judge Colville also ordered that the vehicle used to transport the drugs be forfeited to the federal government and noted that Meran will be deported to the Dominican Republic after serving his 78-month term of imprisonment.
Assistant United States Attorneys Ross E. Lenhardt and James R. Wilson prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Homeland Security Investigations for the investigation that led to the prosecution of both Meran and Hernandez-Bourdier, with valuable assistance from the Pennsylvania State Police Interdiction Team, Pennsylvania State Police Crime Lab, Department of Homeland Security Crime Lab, United States Marshals Service, and Drug Enforcement Administration.
Mexican National Sentenced to more than 17 Years’ Imprisonment for Narcotics ChargeRead the Press Release
United States Attorney Susan Lehr announced on April 24, 2024, Fausto Antonia Castro Mendoza, 37, of Guaymas, Sonora, Mexico, was sentenced in federal court in Omaha, Nebraska, after having pled guilty to possession with intent to distribute methamphetamine and fentanyl. United States District Court Judge Brian C. Buescher sentenced Castro Mendoza to 210 months’ imprisonment. After completing his term of imprisonment, Castro Mendoza will be deported to Mexico as he is not a United States citizen.
On March 4, 2023, a Seward County Deputy Sheriff conducted a traffic stop on a white 2021 Chevrolet Tahoe traveling eastbound, near mile marker 382 on Interstate-80. The driver of the Tahoe was identified as Fausto Antonio Castro Mendoza. Codefendant Jesus Villanueva was identified as the front seat passenger. During the course of the traffic stop, the Deputy observed a marijuana product and subsequently searched the Tahoe discovering approximately 44 pounds of meth, and approximately 2 pounds of fentanyl pills.
During a post arrest interviews both Castro Mendoza and Villanueva admitted transporting the meth and fentanyl pills from Denver, Colorado, to Omaha, Nebraska, and that each was being paid to do so.
Villanueva pled guilty to the same narcotics charge and was sentenced to 235 months imprisonment on April 3, 2024.
This case was investigated by the Seward County Sheriff’s Office and the Drug Enforcement Administration.
Mexican National Sentenced to 10 Years in Prison for Trafficking Meth, FentanylRead the Press Release
ALPINE, Texas – A Mexican national was sentenced in a federal court in Alpine to 120 months in prison for possession with intent to distribute fentanyl and methamphetamine.
According to court documents, Marcos Kenedy Ledezma Campos, 35, attempted to enter the Presidio Port of Entry when, during inspection, agents extracted 69 bundles from the gas tank of his vehicle. Further analysis revealed the bundles contained approximately 2.4 kilograms of fentanyl pills and 33.8 kilograms of methamphetamine. Ledezma Campos was taken into custody. He pleaded guilty to the charge on Jan. 24.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
HSI investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
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Marinette County Man Sentenced to 12 years in Federal Prison for Soliciting Sexually Explicit Images of a MinorRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 24, 2024, David A. Johnson (age: 37) of Marinette County County, Wisconsin, was sentenced to 12 years in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, Johnson used various online media platforms to engage in sexual conversations with minors in Florida and Ohio. He requested explicit visual images from the minors and also sent them explicit images of his genitalia. Independently, each minor contacted law enforcement in their respective states. The Federal Bureau of Investigation (FBI) arranged to have an undercover agent converse with Johnson online. Johnson believed the agent was a 14-year-old child. Johnson demanded that the “child” send him explicit images. Within days of commencing the investigation, Johnson was taken into custody at his residence in Marinette.
At sentencing, Judge Griesbach noted the extremely serious nature of the crime and commended the bravery of the victims who reported Johnson’s actions. Judge Griesbach found a strong need to protect the public from Johnson. Ultimately, the judge determined that a sentence of 12 years in federal prison was a fair and just sentence. Upon the completion of his prison sentence, Johnson will spend 15 years on supervised release. He will also have to register as a sex offender under state and federal law.
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.
This case was investigated by the Green Bay Resident Agency, Milwaukee Division, and the Lima Resident Agency, Cleveland Division of the Federal Bureau of Investigations, Marinette County Sheriff’s Office and the Flagler County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Man convicted for sending nude photos and explicit texts to 13-year-old childRead the Press Release
GALVESTON, Texas – A federal judge has returned a guilty verdict against a Brazoria man for sending obscene photos and messages to a minor, announced U.S. Attorney Alamdar S. Hamdani.
U.S. District Judge Jeffrey Brown found George Jimenez, 45, guilty of coercion and enticement of a minor following a one-day trial that commenced April 3. Judge Brown entered the order late April 23. Prior to trial, Jimenez pleaded guilty to two counts of transfer of obscene material to a minor.
In April 2019, law enforcement discovered Jimenez had sent pictures of his genitals to a 13-year-old girl and other contacts in his phone. Five were the minors’ 12 and 13-year-old classmates.
Authorities executed a federal search warrant and discovered Jimenez was using the TextNow application to disguise himself as a teenage boy to engage in sexually explicit conversations with minors.
From March until April 2019, Jimenez engaged in those communications, including sending at least five pictures of his genitals to the 13-year-old child. In approximately 17 communications, Jimenez asked the minor victim for pictures of either her breasts, buttocks or genital area.
In a text exchange, the minor shared information with Jimenez that she shaved her genital region. Jimenez then sent messages asking to see images of it.
At the trial, the defense attempted to convince the court the messages he sent to the minor did not arise to the level of attempting to persuade the minor to send him sexually explicit photos of herself. He did not believe those claims and found Jimenez guilty as charged. In his ruling, the court stated, “these requests were direct, specific and unambiguous. They were not shrouded in innuendo or bashfulness. Simply put, there is no question that Jimenez repeatedly asked [the minor] to take and send him pictures of her genitals and pubic area.”
Judge Brown has sentencing for June 12. At that time, Jimenez faces 10 years to life in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
FBI conducted the investigation.
Assistant U.S. Attorneys Karen M. Lansden and Sherin S. Daniel are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Man Who Claimed to be Delta Force Veteran Found Guilty of FraudRead the Press Release
AUSTIN, Texas – A federal jury convicted a Manor man for four counts of wire fraud and one count of money laundering.
According to court documents and evidence presented at trial, between April 2021 and July 2023, Saint Jovite Youngblood, aka Kota Youngblood, 52, committed wire fraud against his victims by claiming Mexican drug cartel members were planning to commit violence against them. Youngblood falsely claimed to have been part of the U.S. Army’s Delta Force special operations unit and offered protection to his victims from the cartels in exchange for money. Youngblood also represented that funds obtained from his victim “investors” would be paid back with a significant return on the money. Instead, Youngblood allegedly used most of the money on junkets to Las Vegas to gamble in casinos.
Youngblood was arrested July 31, 2023. He now awaits a date to be sentenced before U.S. District Judge Robert Pitman, facing up to 20 years in prison for each of the four wire fraud counts and up to 10 years for the money laundering count.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Daniel D. Guess and Matt Harding prosecuted the case.
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Man Sentenced to Nine Years in Prison for Transporting Two Girls for ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – April 24, 2024
SAN DIEGO – Deonathan Abdul Gaston of Long Beach, California, was sentenced in federal court Monday to nine years in prison for transporting two girls, ages 15 and 16, to San Diego in August 2023 to engage in prostitution.
One of the victims had been reported missing from Arizona prior to being transported by Gaston from Arizona to Los Angeles and then to San Diego to engage in prostitution. Gaston had known one of the victims since she was 14.
The victims were rescued by the National City Police Department on August 13, 2023, when officers conducted a traffic stop on the defendant in a high-crime area known for prostitution. He had no driver’s license on him and was not going to be allowed to drive the car. He called his “girlfriend” to come pick up the car from the traffic stop; the girl turned out to be the missing Arizona teen. Officers then responded to the hotel where the girl said they were staying and found the other victim. The case was turned over to the San Diego Human Trafficking Task Force.
“Selling children for sex is a reprehensible crime that impacts victims for a lifetime,” said U.S. Attorney Tara McGrath. “We can all play a part in protecting the vulnerable by paying close attention to warning signs and reporting concerns. Our children are not necessarily being grabbed from the street. They are being groomed and recruited online.” Please see https://humantraffickinghotline.org/en/human-trafficking/recognizing-signs
If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.
This case was prosecuted by Assistant U.S. Attorneys Lyndzie M. Carter and Derek Ko.
DEFENDANTS Case Number 23-cr-1944-AGS
Deonathan Abdul Gaston Age: 26 Long Beach, CA
SUMMARY OF CHARGES
Transportation for Purpose of Prostitution – Title 18, U.S.C., Section 2421(a)
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
National City Police Department
San Diego County District Attorney’s Office
Homeland Security Investigations
Federal Bureau of Investigation
San Diego Human Trafficking Task Force
MPD Officer and a Maryland Accountant Plead Guilty to COVID Emergency Loan FraudRead the Press Release
Owen M. Grigsby, 44, of Waldorf, Maryland, and Himmeh Kuawogai, 46, of Ellicott City, Maryland, pleaded guilty today in U.S. District Court in connection with filing false and misleading information in order to fraudulently obtain over $95,000.00 in Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans. The announcement was made by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI’s Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department.
Grigsby is a patrol officer with the Metropolitan Police Department (MPD) who is currently on administrative leave with pay. Kuawogai is an accountant and owner of HAK Accounting Services. Both men both pleaded guilty to one count of conspiracy to commit wire fraud by engaging in a scheme to defraud and obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, which carries a potential penalty of five years in prison. The Honorable Randolph D. Moss presided over the guilty pleas and scheduled sentencing for September 10, 2024.
According to court documents, Kuawogai helped Grigsby establish Owen Grigsby Associates (OAG) in Maryland in July 2020. At the time, Grigsby was employed by the MPD. Although Grigsby was required to report any outside business venture to MPD pursuant to MPD policies, Grigsby failed to do so. OGA allegedly had no legitimate purpose and was created only to obtain EIDL and PPP loans.
In October 2020, Grigsby filed an EIDL application on behalf of OGA containing materially false statements to the Small Business Administration (SBA). Grigsby was approved for that loan and fraudulently obtained $53,600.00. In December 2021, Grigsby filed an application containing materially false statements on behalf of OGA to the SBA seeking to modify his original EIDL in the amount of $214,500.00. Grigsby was denied that loan modification. Grigsby applied for the EIDLs despite never intending to use loan funds for a legitimate business purpose.
In April 2021, Grigsby submitted his first PPP loan application on behalf of OGA containing materially false statements to Harvest Small Business Finance, LLC (HSBF), an FDIC-insured financial institution. In April 2021, Grigsby submitted his second PPP loan application on behalf of OGA containing materially false statements to HSBF. As a result of Grigsby’s first fraudulent and misleading PPP loan application, HSBF approved Grigsby’s loan application for OGA for $20,833.00 causing HSBF to disburse $20,833.00 into OGA’s bank account. As a result of Grigsby’s second fraudulent and misleading PPP loan application, HSBF approved Grigsby’s “Second Draw” loan application causing HSBF to disburse $20,833.00 into OGA’s bank account. Grigsby applied for the two PPP loans despite never intending to use loan funds for a legitimate business purpose. In August 2021, Grigsby filed two PPP loan forgiveness applications containing materially false statements. As a result of these fraudulent loan applications, HSBF forgave OGA’s first and second PPP loans.
For each fraudulent loan and forgiveness application Grigsby submitted on behalf of OGA, Kuawogai assisted Grigsby by providing him with amended and fake documents and explaining the loan application process to him via messaging applications, the phone, and email.
This case was investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, Small Business Administration Office of Inspector General, and the U.S. Attorney’s Office for the District of Columbia.
The case is being prosecuted by U.S. Attorney Rebecca G. Ross
Milwaukee Man Convicted of Laundering Proceeds of Business Email Compromise Fraud SchemesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that following a bench trial that concluded on April 23, 2024, Chief U.S. District Judge Pamela Pepper found Corey Lee, Sr. (age: 52) of Milwaukee, Wisconsin, guilty of one count of conspiracy to commit money laundering in violation of 18 U.S.C. § 1956(h) (Count 1), two counts of concealment money laundering in violation of 18 U.S.C. § 1956 (Counts 2 and 4), and two counts of engaging in financial transactions with money derived from criminal activity in violation of 18 U.S.C. § 1957 (Counts 5 and 6).
The evidence presented at trial established that between May 2018 and approximately July 2019, Lee and his co-conspirators laundered over $1.2 million, which were proceeds of four business email compromise (“BEC”) schemes. A BEC scheme is a form of cybercrime in which a fraudster uses false and misleading emails to fraudulently induce a victim to transfer funds to a bank account controlled by the fraudster and the fraudster’s accomplices.
Four businesses fell victim to the BEC schemes, and the evidence presented at trial revealed that Lee and his co-conspirators laundered those funds by transferring the money between and among various bank accounts they controlled, withdrawing large amounts in cash, and by transferring some of the money to others, in an elaborate effort to disguise the nature, location, source, ownership, and control of the fraud proceeds. Lee and his co-conspirators also used some of the victim funds for their own personal purposes, including vacations and luxury cars.
“Mr. Lee consciously and repeatedly laundered funds he knew were illicitly obtained by others. His actions helped cyber criminals victimize businesses by laundering money that was fraudulently obtained, making it more difficult for the victims and law enforcement to track the money,” said U.S. Attorney Haanstad. “We are committed to working with our federal, state, and local partners to hold everyone involved in these schemes accountable for their actions.”
“This case demonstrates the commitment of IRS Criminal Investigation in unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money, “stated Chicago Field Office Special Agent in Charge Justin Campbell. Lee faces a maximum prison sentence of twenty years each for Counts 1, 2, and 4, and 10-years imprisonment each for Counts 5 and 6.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorneys Benjamin Proctor and Peter Smyczek.
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Lincoln, Illinois, Man Sentenced to 156 Months for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Lincoln, Illinois, man, Curtis Kelly, 35, was sentenced on April 23, 2024, by U.S. District Judge Colleen R. Lawless to 156 months in prison, to be followed by a 5-year term of supervised release, for conspiring to distribute and distribution of methamphetamine.
Kelly was indicted in January 2023 and pleaded guilty in August 2023. He has been detained by the United States Marshals Service since December 21, 2022.
At sentencing, the government showed that Kelly conspired with Darryl Verser and Richard Dinger to distribute approximately 13 kilograms of methamphetamine to include specific drug transactions in November and December of 2022. Dinger is scheduled to be sentenced on May 17, 2024. The charges against Verser and another co-defendant, Nicholas Steele remain pending. Members of the public are reminded that an indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
The statutory penalties for distributing methamphetamine are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Drug Enforcement Administration, Illinois State Police, and Peoria Police Department. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Kelly 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.
Laboratory Owners Charged in $36M COVID-19 Testing Fraud SchemeRead the Press Release
MIAMI –An indictment was unsealed today in the Southern District of Florida charging three men for their alleged roles in an approximately $36 million health care fraud, wire fraud, and money laundering scheme that involved submitting false and fraudulent claims for COVID-19 testing to health care benefit programs, including Medicare and the Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program.
Enrique Perez-Paris, 47, of Aventura, Florida, and Diego Sanudo Sanchez Chocron, 47, of Venice, California, made their initial appearances today in the U.S. District Court for Southern District of Florida. Gregory Charles “Milo” Caskey, 57, of San Antonio, Texas, made his initial appearance today in the U.S. District Court for the Western District of Texas.
According to court documents, Perez-Paris, Sanchez, and Caskey were owners of Innovative Genomics, an independent laboratory. Between November 2019 and June 2023, the defendants and others allegedly conspired to submit claims for medically unnecessary and non-reimbursable COVID-19 testing. The defendants also allegedly paid illegal kickbacks and bribes to patient recruiters who arranged for health care providers to refer the tests to Innovative Genomics. At times, the defendants allegedly caused the HRSA COVID-19 Uninsured Program to be improperly billed for tests for Medicare beneficiaries. The defendants allegedly further billed for tests that the Food and Drug Administration had not approved for emergency-use authorization.
The defendants are each charged with conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy counts and a maximum penalty of 10 years on each health care fraud count.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office; and Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Reginald Cuyler Jr. of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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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Laboratory Owners Charged in $36M COVID-19 Testing Fraud SchemeRead the Press Release
Update: On March 27, 2025, defendants Diego Sanudo Sanchez Chocron and Gregory Charles “Milo” Caskey were found not guilty by a federal jury in the Southern District of Florida.
An indictment was unsealed today in the Southern District of Florida charging three men for their alleged roles in an approximately $36 million health care fraud, wire fraud, and money laundering scheme that involved submitting false and fraudulent claims for COVID-19 testing to health care benefit programs, including Medicare and the Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program.
Enrique Perez-Paris, 47, of Aventura, Florida, and Diego Sanudo Sanchez Chocron, 47, of Venice, California, made their initial appearances today in the U.S. District Court for Southern District of Florida. Gregory Charles “Milo” Caskey, 57, of San Antonio, Texas, made his initial appearance today in the U.S. District Court for the Western District of Texas.
According to court documents, Perez-Paris, Sanchez, and Caskey were owners of Innovative Genomics, an independent laboratory. Between November 2019 and June 2023, the defendants and others allegedly conspired to submit claims for medically unnecessary and non-reimbursable COVID-19 testing. The defendants also allegedly paid illegal kickbacks and bribes to patient recruiters who arranged for health care providers to refer the tests to Innovative Genomics. At times, the defendants allegedly caused the HRSA COVID-19 Uninsured Program to be improperly billed for tests for Medicare beneficiaries. The defendants allegedly further billed for tests that the Food and Drug Administration had not approved for emergency-use authorization.
The defendants are each charged with conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy counts and a maximum penalty of 10 years on each health care fraud count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office; and Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Reginald Cuyler Jr. of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Knox county man pleads guilty to committing child pornography crimes while on federal supervised releaseRead the Press Release
COLUMBUS, Ohio – A repeat sex offender pleaded guilty in U.S. District Court to committing new child pornography crimes while on federal supervised release.
Lee Allen Goudy, 30, of Howard, Ohio, admitted to distributing and possessing child pornography. He was sentenced in U.S. District Court in April 2018 to 78 months in prison for distributing pornography of pre-school-aged children.
As a previous offender, Goudy will face a prison sentence of at least 15 years and up to 40 years in prison for his current offense.
According to court documents, in August 2023, the FBI received a tip that Goudy was a Tier II registered sex offender and was believed to have uploaded child pornography online.
At least four cyber tipline reports related to Goudy were generated from the National Center for Missing and Exploited Children (NCMEC).
The investigation revealed that Goudy had distributed child pornography from a Reddit account via Kik messenger and on Twitter. Goudy used the same email address to trade child pornography that he used in his prior federal conviction.
Approximately 650 videos and 100 images of child sexual abuse material were recovered from Goudy’s iPhone. His collection included sexual abuse of infants and toddlers, and the sexual torture of babies. For example, one video depicted a newborn infant being smacked in the face, grabbed by the throat and shaken back and forth.
Goudy’s iPhone search history also included web searches like “supervised release monitoring iPhone” and “does federal monitoring work on iPhone.”
A second cell phone of Goudy’s also revealed searches for content related to violence, rape and sex acts against infants and toddlers. That phone included 150 images of child sexual abuse material that Goudy had traded on Discord.
Goudy was arrested in September 2023 for violating his federal supervised release warrant.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea offered before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Keshena Man Indicted for Kidnapping, Assault with Intent to Murder, and Strangulation on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 23, 2024, a federal grand jury returned a three-count indictment charging John V. Miller, Jr. (age: 42), of Keshena, Wisconsin, with kidnapping, assault with intent to murder, and strangulation on the Menominee Indian Reservation.
The indictment charged Miller as follows:
COUNT
DATE
CHARGE
MAXIMUM PENALTY IF CONVICTED
One
On or about March 29, 2024
Kidnapping in Indian Country, 18 U.S.C. §§ 1201(a)(2) and 1153(a)
Up to 20 years in prison, up to $250,000 fine
Two
On or about March 29, 2024
Assault with Intent to Murder, 18 U.S.C. §§ 113(a)(1) and 1153(a)
Up to 20 years in prison, up to $250,000 fine
Three
On or about March 29, 2024
Domestic Assault by Strangulation, 18 U.S.C. § 113(a)(8)
Up to 10 years in prison, up to $250,000 fine
According to filed court documents, on or about March 29, 2024, while at a location on the Menominee Indian Reservation, Miller allegedly strangled a woman with whom he had a prior intimate relationship, attempted to strangle her to the point of unconsciousness, and assaulted her in an attempt to kill her. Miller then allegedly seized and confined her inside the trunk of a vehicle to conceal his actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case in U.S. District Court in Green Bay.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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KC Tax Preparer Pleads Guilty to False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer pleaded guilty in federal court today to aiding the preparation of dozens of false tax returns.
Linzell Harris, 67, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of aiding and assisting in the preparation of a false tax return.
Harris owned and operated The MJM Group, Inc., a tax preparation business, from 1999 through 2022. By pleading guilty today, Harris admitted that he willfully exaggerated and fabricated multiple deductions and credits for his clients to obtain large refunds. The total tax loss to IRS for tax years 2015 through 2019 as a result of Harris’s false tax returns was $124,308.
Harris prepared returns for at least 12 taxpayer clients, resulting in at least 43 false income tax returns for tax years 2015 through 2019.
In addition to assisting in the preparation of false tax returns, Harris admitted he did not file personal tax returns for 2015 and 2016, causing a tax loss of $60,753.
The total tax loss caused the Harris’s preparation of false tax returns and his failure to file personal tax returns is $185,061.
Under federal statutes, Harris is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by IRS-Criminal Investigation.
Jacksonville Man Sentenced to Federal Prison for Escaping from Halfway HouseRead the Press Release
Jacksonville, FL – Chief U.S. District Judge Timothy J. Corrigan has sentenced Michael A. Crider (44, Jacksonville) to 30 months in federal prison for escaping from custody. Crider entered a guilty plea on January 3, 2024.
According to court documents, in 2018, Crider was adjudicated guilty and sentenced to 6 years and 8 months in federal prison for possessing a firearm as a convicted felon. In January 2023, while Crider was completing that term of imprisonment, the Bureau of Prisons transferred him into the custody of Bridges Federal Reintegration Centers–Jacksonville, a residential re-entry center or halfway house. While in custody there, Crider was subject to drug testing. On the evening of April 11, 2023, Crider was provided a copy of an incident report documenting a recent positive test for cocaine. Later, around midnight, a halfway house staff member noticed that Crider was not in his assigned dormitory. Staff members searched the facility but could not locate Crider.
A month later, on May 13, 2023, at approximately 6:00 a.m., in St. Augustine, Florida, a police officer saw a minivan (which Crider was driving) traveling at over 100 mph, running red traffic lights, and weaving in and out of traffic. The officer attempted to conduct a traffic stop. Crider refused to pull over, and a chase ensued. Crider eventually crashed the minivan and was arrested.
At the crash scene, the officer smelled marijuana coming from the minivan. Crider initially refused to identify himself, but eventually stated that he knew there was a warrant for his arrest. In the backseat of the minivan, police found a backpack, which contained several documents bearing Crider’s name, a scale, and a dose of buprenorphine 8mg, a synthetic opioid and Schedule III controlled substance.
This case was investigated by the U.S. Marshals Service and the St. Johns County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jacksonville Man Pleads Guilty to Making False Statements in an Attempt to Buy A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Peter Alexander Lawrence (41, Jacksonville) has pleaded guilty to making false statements and representations to a federally licensed firearms dealer. Lawrence faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in March 2023, Lawrence completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. On the form, Lawrence indicated that he had not been convicted of a crime where a judge could have imprisoned him for more than one year, and also that he had never been convicted of a misdemeanor crime of domestic violence. Both those statements were false in that, in 2008, Lawrence was convicted of a crime where the prison sentence could have been more than a year, and in 2018, he was convicted of misdemeanor domestic battery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brenna Falzetta.
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.
Jackson Man Sentenced to over 4 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 50 months in federal prison for possession of a firearm by a convicted felon.
According to court documents, on April 16, 2021, Samual McCray, 26, was found in possession of a firearm when Jackson Police officers responded to a domestic disturbance call at an apartment. Upon arrival, officers located two firearms in the apartment that belonged to McCray. When taking McCray into custody, officers found an additional firearm in his front left pants pocket. McCray has a previous felony conviction for manslaughter and is prohibited by federal law from possessing a firearm.
McCray pled guilty on July 26, 2023, to possession of a firearm by a convicted felon.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The FBI and Jackson Police Department investigated the case.
Assistant U.S. Attorney Matt Allen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Iowa City Man Sentenced to 27 Years in Federal Prison Related to Overdose DeathRead the Press Release
DAVENPORT, Iowa– A Iowa City man was sentenced today to 27 years in federal prison for Conspiracy to Distribute a Mixture and Substance Containing a Detectable Amount of Heroin Resulting in Death.
According to public court documents and evidence presented, on January 23, 2021, Iowa City Police officers were dispatched to a residence in Iowa City, Iowa, related to a suspected overdose. After investigation, Dione Dante Mobley (a.k.a. “Flee”), 43, and Lugene Shipp, 43, were identified as the source of the heroin and both were arrested for conspiracy to distribute heroin.
Mobley and Shipp were both convicted after a trial last fall. Today, Mobley was sentenced to 27 years of imprisonment. Shipp was previously sentenced to 25 years of imprisonment. After completing their terms of imprisonment, both Mobley and Shipp will be required to serve 5 years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa City Police Department, the University of Iowa Police Department, and the Johnson County Drug Taskforce.
Instagram Influencer Known as “Jay Mazini” Sentenced to 84 Months in Prison for Overlapping Fraud SchemesRead the Press Release
Earlier today, in federal court in Brooklyn, Jebara Igbara, also known as “Jay Mazini,” was sentenced by United States District Judge Frederic Block to 84 months in prison for wire fraud, wire fraud conspiracy and money laundering arising out of multiple schemes that resulted in millions of dollars in loss to trusting investors. Igbara pleaded guilty to the charges in November 2022. As set forth in the information, up until March 2021, Igbara maintained a popular Instagram account under the name “Jay Mazini,” where he would post videos depicting, among other things, occasions during which he would hand out large amounts of cash to various individuals as gifts. In reality, Igbara was perpetrating overlapping fraud schemes, scamming investors out of at least $8 million. As part of his sentence, Igbara was ordered to pay $10 million in forfeiture. The amount of restitution will be determined at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“The prosecution of Igbara unmasked him as a fraudster who used his social media popularity to con investors out of millions of dollars,” stated United States Attorney Peace. “Shamefully, he targeted his own religious community, taking advantage of their trust in him so he could spend and gamble their hard-earned money. Hopefully today’s sentence will influence fraudsters, like this defendant, to think twice about the consequences before they victimize investors for their own benefit.”
“Igbara was a crypto con man. He not only created a fake online presence to purport that he was a wealthy crypto investor, he used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes. He conned a New York Muslim community out of millions then simply spent it and gambled it away. Igbara had no regard for the victims he affected with his scam, but today’s sentence means that this crypto swindler, along with his social media persona, will now spend years in prison for his criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso.
Igbara maintained a popular social media presence on Instagram, calling himself “Jay Manzini,” with nearly one million followers during the offense period of 2019 to 2021. The defendant portrayed himself as a successful investor and businessman, and also posted material relating to his Muslim faith, portraying himself as religious. Igbara touted his purported wealth by posting videos on his Instagram account showing him handing out large sums of cash to shoppers waiting on the checkout line in grocery stores, individuals working in fast food restaurants and a woman he met at the airport who had lost her purse.
Igbara perpetrated an investment fraud scheme via a company called Halal Capital LLC. The scheme targeted members of the Muslim-American community in New York by soliciting their money for purported investments in stock, electronics resale and the sale of personal protective equipment. In reality, Igbara was operating a Ponzi scheme, and misappropriated nearly all of the money for his personal expenses, luxury vehicles and gambling. To raise money in order to pay his investors “returns,” and keep them on the hook, Igbara also perpetrated a second fraudulent scheme, wherein he posted on his Instagram and other social media accounts that he was willing to pay above-market prices for various cryptocurrencies. He would then send his victims doctored images of wire transfer confirmations that purported to show he had sent money for the cryptocurrency as promised, when in reality, the payment was never sent, and Igbara was merely stealing the cryptocurrency sent by his victim.
The government’s case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Lauren Howard Elbert and Joshua Dugan are in charge of the prosecution.
The Defendant:
JEBARA IGBARA (also known as “Jay Mazini”)
Age: 28
Edgewater, New JerseyE.D.N.Y. Docket No. 22-CR-424 (FB)
Inmate and Corrections Officer Sentenced in Bribery Scheme; Same Inmate Sentenced in Related Covid-Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – April 24, 2024
SAN DIEGO – Shawn Brown, an inmate at Richard J. Donovan Correctional Facility, was sentenced in federal court today to 30 months in prison for bribing a state corrections officer to smuggle contraband into prison, including dental molds and an expensive bejeweled “grill” for the inmate’s mouth.
A separate consecutive sentence of 48 months was also applied for Brown’s role in a scheme to file fraudulent claims with the California Employment Development Department, effectively stealing money that was intended give economic relief to people impacted by the pandemic. Brown was ordered to pay $550,000 in restitution to the State of California.
Benito Jamar Hugie, the corrections officer who helped Brown obtain the grill, was sentenced last month to 24 months in prison. Hugie, who is out on bond, was ordered to surrender by 12 p.m. on May 6, 2024.
Hugie pleaded guilty in November of 2023, admitting that he smuggled the gold-and-diamond grill into the facility in early October, 2020, and delivered it to Brown, who had custom ordered it from a jeweler in Houston, Texas, using a smuggled cell phone. A grill, also known as “fronts” or “golds,” is a type of dental jewelry worn over the teeth. Grills are generally made of metal and precious gems and are generally removable.
According to Brown’s plea agreement, the overall value of the scheme to acquire the custom grill, to bribe the corrections officer and to smuggle the contraband into the prison was more than $30,000.
At today’s hearing, U.S. District Judge Cathy Ann Bencivengo ordered Brown to turn over the grill to the government as part of his forfeiture agreement. Brown had opposed the request, arguing that he was unable to remove the grill because it was glued to his teeth. The government referred to a jail surveillance video that showed that the grill was, in fact, removeable. In this jail surveillance video, Brown was seen removing the grill from his mouth and putting it back in.
The COVID-related fraud scheme was discovered during the investigation of the bribery scheme. Agents learned that while in custody at the Richard J. Donovan Correctional Facility, Brown used his contraband cellular telephone to coordinate the theft of unemployment benefits intended for Californians who were unable to pay for food and housing as a result of the COVID-19 pandemic. Brown and co-conspirators caused an estimated $1.4 million in fraudulent claims to be filed with the state Employment Development Department, resulting in actual cash payouts of more than $695,000 to Brown and his co-conspirators.
Brown was originally serving time at the state prison for first degree murder in violation of California Penal Code Section 187(a). At today’s hearing Judge Bencivengo ordered that today’s two federal sentences be served consecutively to each other and to the original underlying state sentence.
“Diamonds are not always your friend,” said U.S. Attorney Tara McGrath. “These schemes have cost Brown years of his life and Hugie his career and good name. Maybe regular teeth would have been a better option.”
“The FBI and our law enforcement partners remain committed to ensuring the integrity of our criminal justice systems,” said FBI San Diego Acting Special Agent in Charge John Kim. “Those who abuse their positions of trust and those who corrupt the same will be held accountable as demonstrated in this investigation.”
This case was prosecuted by Assistant U.S. Attorney Orlando Gutierrez.
DEFENDANTS Case Number 22CR1238
Shawn Brown Age: 28 California Department of Corrections and Rehabilitation Inmate
Benito Jamar Hugie Age: 49 San Diego, CA
DEFENDANT Case Number 22CR1239
Shawn Brown Age: 28 California Department of Corrections and Rehabilitation Inmate
SUMMARY OF CHARGES
- Corruption Activities Stemming from the Grill
18 USC § 371 Conspiracy to Violate the Travel Act- Bribery (Count 1)
Defendants: Hugie, Brown
28 USC § 2461(c) Criminal Forfeiture
- Indictment 2: Fraud Activities Involving EDD
18 USC § 1349 Conspiracy; Mail Fraud
Defendants: Brown
28 USC § 2461(c) Criminal Forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
California Department of Corrections and Rehabilitation
Houston personal injury attorney and employee indicted for defrauding injured clients of settlement fundsRead the Press Release
HOUSTON – A Houston attorney and his former office manager are charged in federal court for conspiracy to commit mail fraud, announced U.S. Attorney Alamdar S. Hamdani.
Houston residents Clyde J. Moore, 62, and Mark A. Broussard, 63, made their initial appearances before U.S. Magistrate Judge Yvonne Ho at 2 p.m.
A federal grand jury returned the two-count indictment April 17 which was unsealed upon their arrests.
According to the indictment, Moore is an attorney who handles personal injury cases arising from car accidents. From approximately 2012 to 2021, he, Broussard and other employees at Clyde J. Moore Attorney at Law P.C. were allegedly involved in a scheme to defraud clients of settlement proceeds. The estimated amount of the fraud is $2.4 million.
Moore and his staff allegedly inflated the cost of medical expenses and misled injured clients to believe the firm paid certain medical providers more than they actually had, according to the charges.
As a result, clients allegedly received a smaller share of their entitled settlement funds. The charges allege the skimmed funds were diverted to the law firm’s trust account from which Moore allegedly made personal expenditures. These allegedly included luxury sports cars and his children’s private school tuition. The indictment alleges Moore also split the stolen funds with Broussard and other members of his firm who helped to execute the scheme.
For conspiracy to commit mail fraud, Moore and Broussard face up to five years in federal prison and a possible $250,000 maximum fine. Moore is also charged with an additional count of mail fraud which carries a maximum prison sentence of up to 20 years and a possible $250,000 fine.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Henryetta Resident Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenric West, age 47, of Henryetta, Oklahoma, pleaded guilty to one count of distributing methamphetamine.
The Indictment alleged that on September 28, 2023, West knowingly and intentionally distributed 112 grams of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the Oklahoma State Bureau of Investigation.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. West was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Heart Butte woman admits assaulting woman with vehicle on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Heart Butte woman accused of hitting another woman with her vehicle, pinning her between another vehicle, on the Blackfeet Indian Reservation, admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Julia Lee Bigback, 40, pleaded guilty to assault resulting in serious bodily injury. Bigback faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 29. Bigback was released pending further proceedings.
In court documents, the government alleged that on May 18, 2022, Bigback was drinking with others and driving a suburban around Browning. The group stopped at a residence where one of Bigback’s companions got into a physical altercation with the victim, identified as Jane Doe. Bigback remained in the suburban, parked behind two vehicles. After the fight, Bigback pulled forward in the suburban, hitting the car in front, which then struck Doe, who had been walking between two stationary cars. Doe was sandwiched between the two cars. Bigback then reversed out of the driveway and drove away. Doe suffered two broken legs and required extensive surgery.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.
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Group of Mobile Mail Thieves and Fraudsters Sentenced in Federal CourtRead the Press Release
MOBILE, AL – Five defendants from Mobile were sentenced for their roles in a scheme to commit bank fraud relating to theft of mail and fraudulent deposits of counterfeited and forged checks.
According to court documents, Jennifer Denise Johnson, 43, Julian Wayne Roberts, 36, Nicholas O’Neal Martin, 24, Maranda Lynn Slate, 34, and Micki Leigh Walker, 38, each pleaded guilty in federal court to engaging in a conspiracy to commit bank fraud between July 2021 and September 2022. The scheme involved Johnson and her coconspirators stealing mail from homes and businesses in the Mobile area, taking checks and other identification documents from the stolen mail, and generating counterfeits and forgeries to be deposited into bank accounts. Between August and October 2021, Johnson, Roberts, Martin, and Slate made numerous fraudulent check deposits and withdrawals at various Regions Bank branches in Theodore and Tillman’s Corner, as depicted on surveillance video. Federal agents also obtained text messages and Facebook messages that the defendants exchanged with one another in furtherance of the scheme.
In September 2022, Mobile police arrested Johnson and Walker after they attempted to cash another forged check that had been stolen from the mail and bore the identifiers of an elderly victim. Inside Johnson’s vehicle, agents found several bags full of stolen mail, identification cards belonging to mail-theft victims, and numerous stolen debit and credit cards belonging to victims. In a recorded interview with investigators, Johnson admitted that she was “addicted” to stealing mail and had been engaged in a mail-theft and fraud conspiracy with her codefendants for more than a year.
Chief United States District Judge Jeffrey U. Beaverstock sentenced Johnson and Roberts each to 36 months’ imprisonment, and Walker to 12 months and one day in prison Martin and Slate received sentences of time served. Upon release from custody, each defendant will serve a five-year term of supervised release, during which time they will receive drug and/or mental health treatment, and will be subject to credit restrictions. The court did not impose fines, but Chief Judge Beaverstock ordered the defendants to pay a total of $600 in special assessments and victim restitution in the following amounts: $2,500 (Johnson and Roberts); $2,000 (Martin); and $500 (Slate).
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service, the Mobile Police Department, and the Mobile County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Grand jury indicts local man & woman in connection with conspiracy to damage grocery store with an incendiary deviceRead the Press Release
CINCINNATI – A federal grand jury indicted a local man and woman in connection with a conspiracy to damage a Spring Grove Village grocery store with an incendiary device in the style of a Molotov cocktail.
Donald Donatelli, 28, and Angela Schweitzer, 35, are both charged with conspiring to commit malicious damage and destruction of a building in interstate commerce. Donatelli is also charged in a second count of directly causing the damage.
An affidavit filed in support of a criminal complaint details that around 10pm on Nov. 26, Donatelli allegedly threw an incendiary device in the style of a Molotov cocktail into the store. The store’s owner and his wife were inside the store at the time.
Donatelli and Schweitzer allegedly arrived at the store together in a white BMW. It is alleged that Schweitzer moved to the driver’s seat while Donatelli lit the device, opened the store’s door and threw it inside.
According to the affidavit, Schweitzer filmed a Snapchat video of the alleged crime and sent it to Donatelli.
Conspiring to commit malicious damage and destruction of a building, and the act of doing so, are federal crimes punishable by at least five and up to 20 years in prison.
Donatelli and Schweitzer were originally arrested on local charges and have been moved to federal custody. Their federal case was unsealed today.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges and acknowledged the assistance of the Cincinnati Fire Department, Cincinnati Police Department, Hamilton County Sheriff’s Office and Union Township Police Department. Assistant United States Attorneys Megan Gaffney Painter and Julie D. Garcia are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned three 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.
Two Madison Men Charged with Passing Counterfeit Money
Cornelius Stewart, 30, and Alex J. Stubbs, 26, both of Madison, Wisconsin, are charged in a 32-count indictment with conspiring to pass counterfeit obligations of the United States and with passing counterfeit $100 bills with intent to defraud. The indictment alleges that the two men passed counterfeit bills and attempted to pass counterfeit bills at businesses in Dane, Monroe, and Jefferson Counties between July and December 2023.
If convicted of the conspiracy charge, Stewart and Stubbs face maximum penalties of 5 years in prison. The men face maximum penalties of 20 years on each of the charges involving passing or attempting to pass counterfeit bills.
The charges against Stewart and Stubbs are the result of an investigation by the United States Secret Service and police departments from Madison, Verona, Fitchburg, Shorewood Hills, Cottage Grove, Marshall, Sun Prairie, Tomah, and Oconomowoc. Assistant United States Attorney Robert Anderson is handling the prosecution.
Mexican National Faces Additional Charge of Possessing Cocaine for Distribution
Eli Torres-Banos, 36, a citizen of Mexico residing in Watertown, Wisconsin, is charged with possessing 5 kilograms or more of cocaine intended for distribution. The indictment alleges that he possessed the cocaine on or about December 6, 2023.
Torres-Banos was charged on November 29, 2023, with being found in the United States after having been removed. The indictment alleged that he was found in the United States on June 7, 2023. He pled guilty to the offense on March 15, 2024, and his sentencing is scheduled for June 4, 2024, before U.S. Chief Judge James D. Peterson.
If convicted on the new drug charge, Torres-Banos faces a minimum penalty of ten years and a maximum penalty of life in prison.
The charges against Torres-Banos are the result of investigations conducted by the Drug Enforcement Administration, Jefferson County Drug Task Force, Watertown Police Department, and U.S. Immigration & Customs Enforcement. Assistant United States Attorneys Steven P. Anderson and Steven C. Ayala are handing the case.
Madison Man Charged with Multiple Drug Crimes
Kyle Evans, 33, Madison, Wisconsin, is charged in a nine-count indictment with distributing cocaine and methamphetamine, distributing 50 grams or more of methamphetamine, possessing for distribution and distributing 500 grams or more of methamphetamine, and maintaining a drug trafficking place. The indictment alleges that Evans committed all these acts between January 29, 2024 and April 9, 2024.
If convicted, Evans faces a minimum penalty of 10 years and a maximum penalty of life in prison for each of the charges involving 500 grams or more. He faces a minimum penalty of 5 years and a maximum penalty of 40 years in prison for each of the charges involving 50 grams or more. The remaining charges in the indictment each carry a maximum penalty of 20 years.
The charges against Evans are the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Louis Glinzak is handling the prosecution.
Grady County Man Sentenced to Serve 10 Years in Federal Prison for Child AbuseRead the Press Release
OKLAHOMA CITY – Yesterday, EVANDER DAYLE YANITO, 33, of Grady County, was sentenced to serve 120 months in federal prison for child abuse in Indian Country, announced U.S. Attorney Robert J. Troester.
On May 16, 2023, a federal grand jury charged Yanito with child abuse. According to an affidavit filed in support of a criminal complaint, on August 19, 2022, Yanito reported to medical personnel that a two-month-old infant was having difficulty breathing. The infant was transported to a Grady County hospital and later to OU Children’s Hospital, after which law enforcement began an investigation.
While at OU Children’s Hospital, Yanito spoke with members of the Chickasha Police Department and the Oklahoma Department of Human Services, and admitted to causing bodily harm to the infant victim.
On September 13, 2023, Yanito pleaded guilty, and admitted that he willfully injured and harmed the infant victim, and that he was responsible for the infant victim’s health, safety, and welfare.
At the sentencing hearing yesterday, U.S. District Judge Joe Heaton sentenced Yanito to serve 10 years in federal prison, followed by three years of supervised release. In announcing the sentence, the court noted the vulnerability of the infant victim and evidence indicating the infant victim was abused on more than one occasion.
This case is in federal court because Yanito is a citizen of the Navajo Nation and the crime occurred within the boundaries of the Chickasaw Nation.
This case is the result of an investigation by the Chickasha Police Department. Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
Reference is made to public filings for additional information.
Founders and CEO of Cryptocurrency Mixing Service Arrested and Charged with Money Laundering and Unlicensed Money Transmitting OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”); and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging KEONNE RODRIGUEZ, the Chief Executive Officer and a co-founder of Samourai Wallet (“Samourai”), and WILLIAM LONERGAN HILL, the Chief Technology Officer and also a co-founder of Samourai, with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. These charges arise from the defendants’ development, marketing, and operation of a cryptocurrency mixer that executed over $2 billion in unlawful transactions and facilitated more than $100 million in money laundering transactions from illegal dark web markets, such as Silk Road and Hydra Market; a web-server intrusion; a spearphishing scheme; and schemes to defraud multiple decentralized finance protocols. RODRIGUEZ was arrested this morning and is expected to be presented today or tomorrow before a U.S. Magistrate Judge in the Western District of Pennsylvania. HILL was arrested this morning in Portugal based on the U.S. criminal charges. The United States will seek HILL’s extradition to stand trial in the United States. The case is assigned to U.S. District Judge Richard M. Berman.
In coordination with law enforcement authorities in Iceland, Samourai’s web servers and domain (https://samourai.io/) were seized. Additionally, a seizure warrant for Samourai’s mobile application was served on the Google Play Store. As a result, the application will no longer be available to be downloaded from the Google Play Store in the United States.
U.S. Attorney Damian Williams said: “As alleged, Keonne Rodriguez and William Lonergan Hill are responsible for developing, marketing, and operating Samourai, a cryptocurrency mixing service that executed over $2 billion in unlawful transactions and served as a haven for criminals to engage in large-scale money laundering. Rodriguez and Hill allegedly knowingly facilitated the laundering of over $100 million of criminal proceeds from the Silk Road, Hydra Market, and a host of other computer hacking and fraud campaigns. Together with our law enforcement partners, we will continue to relentlessly pursue and dismantle criminal organizations that use cryptocurrency to hide illicit conduct.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “$2 billion in transactions with an unlicensed money transmitter means $2 billion flowed without any oversight, from whomever to wherever. Because of the company’s disregard for regulation, it’s alleged that Samourai Wallet laundered more than $100 million in criminal proceeds. Special Agents with IRS:CI New York and IRS:CI LA’s Cyber units worked with our federal and international law enforcement partners to not only arrest the founders and CEO, but to also seize their domain. Samourai Wallet is now closed for business.”
FBI Assistant Director in Charge James Smith said: “Threat actors utilize technology to evade law enforcement detection and create environments conducive to criminal activity. For almost 10 years, Keonne Rodriguez and William Hill allegedly operated a mobile cryptocurrency mixing platform which provided other criminals a virtual haven for the clandestine exchange of illicit funds, the facilitation of more than $2 billion in illegal transactions, and $100 million in dark web money laundering. The FBI is committed to exposing covert financial schemes and ensuring no one can hide behind a screen to perpetuate financial wrongdoing.”
According to the allegations in the Indictment unsealed today in Manhattan federal Court:[1]
Background on Samourai
From about 2015 through February 2024, RODRIGUEZ and HILL developed, marketed, and operated a cryptocurrency mixing service known as Samourai, an unlicensed money transmitting business from which they earned millions of dollars in fees. Samourai unlawfully combined multiple unique features to execute anonymous financial transactions valued at over $2 billion for its customers. While offering Samourai as a “privacy” service, the defendants knew that it was a haven for criminals to engage in large-scale money laundering and sanctions evasion. Indeed, as the defendants intended and well knew, a substantial portion of the funds that Samourai processed were criminal proceeds passed through Samourai for purposes of concealment. During the relevant period, Samourai laundered over $100 million of crime proceeds originating from, among other criminal sources, illegal darkweb markets, such as Silk Road and Hydra Market; various wire fraud and computer fraud schemes, including a web-server intrusion, a spearphishing scheme, and schemes to defraud multiple decentralized finance protocols; and other illegal activities.
RODRIGUEZ and HILL began developing Samourai in or about 2015. Samourai is a mobile application that users can download onto their cellphones, and the application has been downloaded over 100,000 times. After users download Samourai, they can store their private keys for any BTC addresses they control inside of the Samourai program. These private keys are not shared with Samourai employees, but Samourai operates a centralized server that, among other things, supervises and facilitates transactions between Samourai users and creates new BTC addresses used during the transactions. Samourai is used by customers all over the world, including customers located in the United States and in the Southern District of New York.
RODRIGUEZ and HILL designed Samourai to offer at least two features intended to assist individuals engaged in criminal conduct to conceal the source of the proceeds of their criminal activities. First, Samourai offers a cryptocurrency mixing service known as “Whirlpool,” which coordinates batches of cryptocurrency exchanges between groups of Samourai users to prevent tracing of criminal proceeds by law enforcement on the Blockchain. Second, Samourai offers a service called “Ricochet,” which allows a Samourai user to build in additional and unnecessary intermediate transactions (known as “hops”) when sending cryptocurrency from one address to another address. This feature similarly may prevent law enforcement and/or cryptocurrency exchanges from recognizing that a particular batch of cryptocurrency originates from criminal activity. Since the start of the Whirlpool service in or about 2019, and of the Ricochet service in or about 2017, over 80,000 BTC (worth over $2 billion applying the BTC-USD conversion rates at the time of each transaction) has passed through these two services operated by Samourai. Samourai collects a fee for both services, estimated to be about $3.4 million for Whirlpool transactions and $1.1 million for Ricochet transactions over the same time period.
RODRIGUEZ and HILL’s Knowledge and Intent for Criminal Proceeds to be Laundered by Samourai
RODRIGUEZ and HILL operated Twitter accounts that encouraged and openly invited users to launder criminal proceeds through Samourai. For example, in or around June 2022, Samourai’s Twitter account — operated by RODRIGUEZ — posted the following message regarding Russian oligarchs seeking to circumvent sanctions:
Similarly, in a private message on or about August 27, 2020, HILL — using a Twitter account with the username “Samourai Dev” — discussed the use of Samourai by criminals operating in online black markets such as Silk Road in private messages with another Twitter user (the “Twitter User”) (emphasis added):
Twitter User: Silk Road is why I first found Bitcoin and the desire to keep engaging in those types of markets is one reason that I want to defend/strengthen those use cases . . .
Samourai Dev: No, not at all. We probably have different views on some basic tenets of bitcoin, you and I – so to each his own so to speak. At Samourai we are entirely focused on the censorship resistance and black/grey circular economy. This implies no foreseeable mass adoption, although black/grey markets have already started to expand during covid and will continue to do so post-covid. . . .
Additionally, in response to Europol highlighting Samourai as a “top threat” to the ability of law enforcement to trace the proceeds of criminal activity, HILL posted a message in or around March 2021 suggesting that Samourai would not change its practices in response to allegations that Samourai was being used for money laundering:
Similarly, RODRIGUEZ and HILL possessed and transmitted to potential investors marketing materials that discussed how Samourai’s customer base was intended to include criminals seeking privacy or the subversion of safeguards and reporting requirements by financial institutions. For example, in Samourai’s marketing materials, RODRIGUEZ and HILL similarly acknowledge that the individuals most likely to use a service like Samourai include individuals engaged in criminal activities, including “Restricted Markets.”
In the below excerpt from Samourai’s marketing materials, RODRIGUEZ and HILL acknowledge that its revenues will be derived from “Dark/Grey Market participants” seeking to “swap their bitcoins with multiple parties” to avoid detection:
In Samourai’s marketing materials, RODRIGUEZ and HILL promoted Samourai’s Wallet and its “Mixing Service” as a “Premium Privacy Service” for transactions involving the proceeds of goods and services that include, among other things, “Illicit Activity.”
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RODRIGUEZ, 35, of Harmony, Pennsylvania, and HILL, 65, a U.S. national who was arrested in Portugal, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of IRS-CI and the FBI. He also acknowledged the assistance of the Justice Department’s Office of International Affairs. Mr. Williams also thanked Europol, the Portugal Judiciary Police, the Icelandic Police, the FBI Field Office in Pittsburgh, the FBI’s International Operations Division, and the IRS-CI Los Angeles Field Office for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Andrew K. Chan and David R. Felton are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.