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Tuesday 12 March 2024
Sinaloa Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE –Jose Jesus Lopez-Verduzco, 54 years old, of Sinaloa, Mexico, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty for conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 1,000 kilograms or more of marijuana, announced United States Attorney Clifford D. Johnson.
Lopez-Verduzco was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, Lopez-Verduzco was a leader in a drug organization receiving large drug shipments from the Sinaloa Cartel in Mexico for distribution in Northeast Indiana. During the service of a search warrant at a house in Columbia City in August of 2018, agents seized approximately 14 kilograms of cocaine, about 200 pounds of marijuana, and 9 firearms.
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which consists of the FBI, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Shiprock Man Charged with Second Degree MurderRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Morrie Lee Begaye appeared in federal court on an indictment charging him with second degree murder. Begaye, 36, of Shiprock, and an enrolled member of the Navajo Nation, will remain in custody pending trial which has not been scheduled.
According to the indictment, on June 26, 2022, Begaye unlawfully killed John Doe with malice aforethought
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charge, Begaye faces up to life imprisonment.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.
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Sex Traffickers Convicted of Cross-Country Exploitation of a MinorRead the Press Release
MIAMI – On March 8, a federal trial jury in Miami found Xavier Latrell Smith, 34, and Jayla Denice Welch, 22, both of Texas, guilty of carrying out a sex trafficking conspiracy involving a minor victim.
Smith and Welch were convicted of conspiracy to commit sex trafficking, sex trafficking of a minor, transporting a minor to engage in sexual activity, and coercion and enticement of a minor to engage in sexual activity. In addition, Smith was convicted of two counts of commission of a sex offense by a registered sex offender.
During the five-day trial, the government put on evidence that showed Smith, a registered sex offender, and Welch lured the minor victim to engage in sexual acts with false promises of a better life. Smith and Welch then posted commercial sex ads of the minor victim online as they travelled with the victim from Texas to Louisiana to Florida, where she was trafficked and engaged in prostitution. Smith and Welch collected the money the victim received from the unlawful sexual acts.
Based on the evidence presented, the minor victim was rescued from a hotel room reserved and paid for by Smith and occupied by Welch and the minor victim. During the course of the investigation, Smith’s cellular device rang when agents called the TextNow number associated with the minor victim’s commercial sex ads. After the minor victim was rescued, law enforcement reviewed Smith and Welch’s phones and recovered records of them photographing, posting and maintaining the commercial sex ads of the minor victim in six different cities. Welch and Smith both paid for and reserved hotel rooms that the minor victim used for the illegal sexual activity with the commercial sex customers.
Smith and Welch are scheduled to be sentenced on May 31, before U.S. District Judge Beth Bloom. Smith faces a maximum penalty of life in prison with a mandatory minimum sentence of 20 years’ imprisonment. Welch faces a maximum penalty of life in prison with a mandatory minimum sentence of 10 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD) made the announcement.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force. Assistant U.S. Attorneys Abbie D. Waxman and Bertila Lilia Fernandez are prosecuting the case. Assistant U.S. Attorney Eloisa Fernandez is handling asset forfeiture.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org.
To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20122.
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Serial Bank Robber Sentenced to More than 7 Years in PrisonRead the Press Release
TUCSON, Ariz. – James Valentine Siehien, 53, of Tucson, was sentenced on February 27, 2024, by United States District Judge Raner C. Collins to 87 months in prison, followed by five years of supervised release. Siehien pleaded guilty to one count of Bank Robbery and two counts of Armed Bank Robbery on March 16, 2023, for a series of bank robberies he committed in Tucson.
Siehien admitted that, on October 21, 2021, he robbed approximately $4,000 from Chase Bank. He also admitted that, on October 26, 2021, he robbed approximately $2,740 from PNC Bank, with what was later determined to be a fake explosive device. Siehien further admitted that, on November 5, 2021, while possessing an axe, he robbed approximately $2,200 from First Convenience Bank.
The Federal Bureau of Investigation and the Tucson Police Department, as part of the Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. Assistant U.S. Attorney, Adam D. Rossi, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-03071-TUC-RCC
RELEASE NUMBER: 2024-029_Siehien# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Schuylkill County Man Indicted for Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Miguel Peralta, Jr., age 35, of Shenandoah, Pennsylvania, was indicted by a federal grand jury for fentanyl trafficking in Luzerne County.
According to United States Attorney Gerard M. Karam, the indictment charges Peralta with one count of conspiracy to distribute more than 400 grams of fentanyl, four counts of distribution of fentanyl, and one count of being a convicted felon in possession of a firearm.
The charges against the defendant resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms (ATF), and the Luzerne County Drug Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law, for the fentanyl trafficking charges, Peralta faces a mandatory minimum sentence of ten years in prison, a maximum sentence of life in prison, a term of supervised release and a fine. For the firearms charge, Peralta faces a maximum sentence of 15 years in prison, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Rio Rancho Man Pleads Guilty to Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Eric McLoughlin, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced today that Peter Ryan Lynch pleaded guilty in federal court to one count each of possession of a firearm not registered with the national firearms registration and transfer records and illegal receipt of an imported firearm. Lynch, 46, of Rio Rancho, will remain in custody pending sentencing, which has not been set.
A federal grand jury indicted Lynch on May 18, 2023. According to publicly available court documents, on April 20, 2023, during the execution of a search warrant at Lynch’s residence in Rio Rancho, law enforcement officers located two silencers. In his plea agreement, Lynch admitted that he had ordered them online and that he did not have the proper legal authorization to possess them as he did not have permission from the Attorney General of the United States to import them and they were not registered to Lynch in the National Firearms Registration and Transfer Record.
At sentencing Lynch faces up to 10 years in prison.
Homeland Security Investigations investigated this case with assistance from the U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and New Mexico State Police. Assistant United States Attorney Jon K. Stanford is prosecuting the case.
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Readout of Justice Department Community Safety Webinars with Jewish, Muslim, Arab and Palestinian Community StakeholdersRead the Press Release
Last week, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Deputy Director Paul Abbate of the FBI and Component Head Justin Lock of the Community Relations Service (CRS) hosted two webinars with community stakeholders from Jewish, Muslim, Arab and Palestinian communities. The webinars build on the department’s vigorous efforts to combat rising violence and threats of violence based on their religion, race, color, ethnicity or national origin.
“No person and no community in this country should have to live in fear of hate-fueled violence or discrimination,” said Assistant Attorney General Clarke. “With an increase in volume and frequency of threats since Oct. 7th, the Justice Department reaffirms our commitment to using every tool available to address discrimination and violence targeting vulnerable communities.”
The Justice Department officials provided updates on their efforts to bolster community safety and to prevent, disrupt, and prosecute illegal acts motivated by hate-fueled violence and discrimination. During the webinars, they directed stakeholders to critical safety resources, and listened to stakeholders express their concerns about the rise in threats. Officials also highlighted the Department’s United Against Hate community education and engagement program, which has hosted more than 300 events around the country attracting more than 10,000 participants.
“We are tremendously grateful for the relationships we have with our community partners, and appreciate the opportunity for continued engagement,” said FBI Deputy Director Abbate. “We hear you, we share your concerns, and we will continue to work relentlessly, 24/7, to protect and keep members of your communities safe.”
Deputy Director Abbate discussed the regular, ongoing engagement the FBI has with Jewish, Muslim, Arab and Palestinian community organizations and leaders across the country. The FBI works diligently to maintain two-way communication with community organizations at headquarters and in each of the 56 field offices. He addressed the current threat environment, describing an upward trend in reported hate crimes and an increase in violence and threats of violence towards the communities. Deputy Director Abbate assured call participants that the FBI continues work, with urgency, along with state and local partners to mitigate threats and prevent harm to our communities.
“The CRS recognizes that safety for communities is inclusive of both physical safety as well as a sense of belonging within community,” said Component Head Lock. “To this end, the CRS is committed to opening and sustaining channels of communication, forums for dialogue and better understanding as a means of returning agency, dignity and power back to all American communities.”
Component Head Lock shared CRS’s ongoing work with community leaders, law enforcement and civil society to prevent and respond to hate crimes and facilitate training and mediation services. This work includes CRS’ Places of Worship Forum, which provides faith-based leaders and congregations information about religious-bias hate crimes and brings together federal, state and local law enforcement to address safety and security issues.
Assistant Attorney General Clarke also announced the release of a number of fact sheets and resource documents that are designed to give the public a better understanding of federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion, national origin as well as protections in places of public accommodation and in local land use decisions. Preventing and prosecuting hate crimes is a top priority for the Justice Department, and you can find a recently updated Hate Crimes Fact Sheet here.
If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov. If you believe you are a victim or a witness of a hate crime, report it to the FBI by calling 1-800-CALL-FBI or submit a tip at tips.fbi.gov. You can learn more about the department’s work on hate crimes here.
Puerto Rico United States Attorney’s Office Announces Whistleblower Pilot ProgramRead the Press Release
SAN JUAN, Puerto Rico – United States Attorney W. Stephen Muldrow announces that the Puerto Rico United States Attorney’s Office has launched a Whistleblower Pilot Program designed to encourage early and voluntary self-disclosure of criminal conduct by individual participants in certain non-violent offenses.
In exchange for such self-disclosure and cooperation, the U.S. Attorney’s Office will enter into a non-prosecution agreement where certain specified conditions are met, including, importantly, the condition that the government was not previously aware of the criminal conduct that is the subject of the disclosure. By providing clarity on the requirements of the benefits of such self-disclosure, we seek to incentivize individuals (and their counsel) to provide actionable and timely information. That will, in turn, help us bring more misconduct and criminal activity to light and better protect the communities we serve.
“Although other U.S. Attorney’s Offices have recently issued a similar policy, this new program follows on the message that this United States Attorney’s Office and our federal law enforcement partners have been stressing publicly for the past several years,” said U.S. Attorney Muldrow. “Full and complete early cooperation with federal authorities will be rewarded and is essential to our public service mission of rooting out fraud and public corruption and making our communities safer and stronger.”
Copies of the Whistleblower Pilot Program memorandum outlining this new policy, as well as a related Intake Form, are attached herewith and can also be found on the United States Attorney’s Office public website, located at https://www.justice.gov/usao-pr. In order to begin the whistleblower process under this program, the Intake Form can be sent via email to [email protected].
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pr_usao_pilot_whistleblower_final.pdf pr_usao_pwp_intake_form.pdfPrisoner Who Escaped from Bloomfield Halfway House Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that HECTOR SANTIAGO, 29, pleaded guilty yesterday in Hartford federal court to escaping from the custody of the Attorney General.
According to court documents and statements made in court, on November 18, 2019, Santiago was sentenced in Hartford federal court to 69 months of imprisonment for a narcotics trafficking offense. On June 23, 2023, he was transferred from the U.S. Penitentiary in Lee County, Virginia, to the Drapelick Center, a Residential Reentry Center (halfway house) in Bloomfield, to complete his custodial sentence. On September 27, 2023, Santiago left the facility and failed to return. He was located and arrested in Hartford on February 9, 2024.
Santiago has been detained since his arrest.
At sentencing, which is not scheduled, Santiago faces a maximum term of imprisonment of five years.
This matter was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Sean P. Mahard.
Portland Man Sentenced to 30 Years in Federal Prison for Murder Committed Amid Violent Robbery SpreeRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to 30 years in federal prison today for murdering a Milwaukie, Oregon man in his home amid a violent robbery spree that spanned several months and targeted at least six local businesses.
Keandre Dshawn LaMarcus Brown, 27, was sentenced to 360 months in federal prison and three years’ supervised release. He was also ordered to pay $29,991 in restitution to multiple victims.
“Gun violence continues to be one of the greatest public safety threats in our community,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “Keandre Brown and his accomplices’ string of armed robberies across the Portland area placed many innocent community members at significant risk.”
“Within months of completing a five-year prison sentence for attempted robbery, Keandre Brown went on a three-month crime spree, affecting over 20 victims, and brutally killing one. He used weapons, drugs, and fear to wreak havoc on our streets,” said Aubree M. Schwartz, Acting Special Agent in Charge of the FBI Portland Field Office. “Today’s significant sentence removes this dangerous individual from our community and highlights the tenacity of the FBI and our law enforcement partners to identify and apprehend criminals like him who threaten public safety.”
“I was among the first responders who arrived on the scene of Keandre Brown’s home invasion robbery after his victim called 911 screaming and begging for his life. After gunshots rang out on the line with our dispatchers, we saw firsthand the tragic result of this brutal murder,” said Luke Strait, Chief of the Milwaukie Police Department. “In the years that have followed, investigators from Milwaukie Police, the FBI, and the U.S. Attorney’s Office have worked tirelessly on what would become one of the most exhaustive investigations and prosecutions our region has seen in the last decade. Our criminal justice system has worked diligently and effectively to bring justice for this victim, his family, and the entire Milwaukie community.”
According to court documents, in the summer of 2016, Brown teamed up with an accomplice, Keith Bryon Woody Jr., 31, also of Portland, to engage in a series of armed robberies targeting multiple businesses in and around Portland. On August 2, 2016, the pair entered and robbed Paulsen’s Pharmacy on NE Sandy Boulevard in Portland. Both brandished firearms during the robbery, threatened numerous employees and customers, including by pointing a gun at the pharmacy manager’s head, and made off with controlled substances, cash, and several personal property items including wallets, credit cards, and phones.
Two weeks later, on August 13, 2016, Brown and Woody entered and robbed Fairley’s Pharmacy on NE Sandy Boulevard in Portland. The pair again brandished firearms, ordered employees and customers to the floor at gunpoint and zip-tied them, and proceeded to steal eight pill bottles that together contained approximately 1,600 Oxycodone pills.
Brown’s spree continued on August 31, 2016, when he and two accomplices entered and robbed the Lighthouse Deli on SE César Chávez Boulevard in Portland. Brown and his accomplices brandished firearms, zip-tied an employee, and stole cash as well as several wallets, credit cards, and phones from nearby employees and customers.
On September 5, 2016, after several days of planning, Brown, Woody, and multiple accomplices carried out a home invasion robbery targeting a Milwaukie man they believed possessed large quantities of cocaine and cash. The group forcibly entered the residence through a rear door and confronted the homeowner, who quickly retreated into a bathroom and called 911. Brown and Woody, each armed with semi-automatic firearms, positioned themselves outside the bathroom door where the homeowner had barricaded himself, while their accomplices searched the residence. Brown and Woody then fired their respective handguns multiple times at the bathroom door, penetrating the door and killing the homeowner.
Following the home invasion robbery and murder, Brown, with the assistance of others, carried out two additional armed robberies on a single day. On October 18, 2016, Brown and an accomplice entered and robbed a Plaid Pantry convenience store on NE Sandy Boulevard in Portland. The pair made off with cash, tobacco products, and various personal property items. Later the same day, Brown and an accomplice entered and robbed a Red Roof Inn on NE 82nd Avenue in Portland. The pair zip-tied an employee and threatened her to turn over cash but left empty handed after finding an empty cash register.
Investigators later connected Brown and Woody to an additional armed robbery of a pharmacy in Vancouver, Washington, on August 22, 2016, during which they threatened employees at gunpoint and made off with Oxycodone pills.
On October 20, 2016, U.S. Marshals arrested Brown and Woody traveling together in a vehicle. Both possessed firearms at the time of their arrest. Soon after, Brown was transferred to Clark County, Washington to face trial on charges of first-degree robbery, second-degree assault, and unlawful possession of a firearm. Brown was convicted on September 11, 2017, and later sentenced to 360 months in Washington State prison.
On November 4, 2020, a federal grand jury in Portland returned a multi-count indictment charging Brown, Woody, and several other accomplices for conspiring with one another to interfere with commerce by threats or violence, possessing firearms in furtherance of crimes of violence, and causing death through the use of a firearm.
Later, on July 11, 2023, in a separate criminal case, Brown was charged by criminal information with intentionally killing while engaged in drug trafficking. The same day, Brown pleaded guilty to one count each of conspiring with others to interfere with commerce by threats or violence and intentionally killing while engaged in drug trafficking, resolving both of his federal cases.
This case was investigated by the FBI and Milwaukie Police Department with assistance from the Portland Police Bureau, Oregon State Police Crime Lab, Clackamas County District Attorney’s Office, and Vancouver Police Department. It was prosecuted by Lewis S. Burkhart and Thomas H. Edmonds, Assistant U.S. Attorneys for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
Philadelphia Man Sentenced to More Than 10 Years in Prison in Connection with Two Violent CarjackingsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Dashawn Pringle, 27, of Philadelphia, Pennsylvania, was sentenced to 125 months’ imprisonment, three years of supervised release, a $300 special assessment, and $1,250 in restitution by United States District Court Senior Judge Timothy J. Savage for his role in two carjackings in the city.
On the afternoon of April 23, 2022, Victim #1 was operating his 2021 Honda Pilot near the 5100 block of Race Street. The victim temporarily pulled over to the side of the road, and Pringle and another male suddenly got in. When Victim #1 attempted to run from the scene, the two caught up to him, punched and kicked him, then stole his wallet, car keys, and vehicle.
In the early morning hours of May 1, 2022, Victim #2, a ride-share driver, had just made a drop-off on the 300 block of South Camac Street when the previously carjacked Honda Pilot pulled behind his vehicle and hit the back bumper. Seeing no damage, Victim #2 waved to the driver of the Pilot, later identified as Pringle, and departed the area. After the Honda Pilot followed him and the driver appeared to flag him down, Victim #2 pulled over on the 1200 block of Lombard Street and walked over to the driver’s side door of the Pilot, where Pringle promptly pointed a gun at his face and told him not to move or he’d be shot. A front-seat passenger took Victim #2’s keys and drove off in his 2018 Toyota Highlander.
On November 28, 2023, Pringle pleaded guilty to two counts of carjacking and possession of ammunition by a felon.
“Carjackings are offenses that really undermine public confidence and quality of life,” said U.S. Attorney Romero. “People going about their daily business shouldn’t have to fear armed criminals like Dashawn Pringle preying on them out of the blue, physically assaulting them, sticking guns in their face, and taking off in their car. We and our partners on the Carjacking Task Force are working every day to identify, prosecute, and take criminals like this off Philadelphia’s streets, with the public’s safety our number one priority.”
“Sentences like this are a product of the diligent work done by the FBI Philadelphia Violent Crimes Task force, who leverages the resources of our local law enforcement partners to remove violent offenders from our streets,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This serves as a reminder that brazen acts of violence will be not tolerated in this city and reinforces our commitment to fostering a safe community for the citizens of Philadelphia.”
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.
The case was investigated by the FBI Philadelphia Violent Crimes Task Force and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Martin E. Howley, Jr.
Paul Hendler Imprisoned on Federal Forgery ChargeRead the Press Release
Burlington, Vermont - The United States Attorney’s Office announced that Paul Hendler, 52, of Burlington, was sentenced today in United States District Court in Burlington to a total of 36 months of imprisonment following his guilty plea to a federal forgery charge. As part of these court proceedings, Hendler also admitted that he violated the terms of his supervised release on an earlier federal fraud conviction. Chief Judge Geoffrey Crawford ordered that Hendler serve 26 months on the forgery case and a consecutive 10-month term for violating supervised release. This combined 36-month term represented an upward variance from the advisory Sentencing Guidelines. The court ordered that Hendler serve an additional three years of supervised release following completion of his prison term. It also ordered Hendler to pay restitution in the amount of $80,000. Hendler has been detained without bail since entering his guilty plea last summer.
In 2011, the U.S. Attorney’s Office in Vermont first charged Hendler in a wide-ranging fraud indictment that accused him of committing a variety of frauds against individuals and businesses. Hendler eventually pleaded guilty to wire fraud and money laundering, and in 2015, was sent to prison. The court also ordered Hendler to pay restitution to multiple victims in a total amount of about $555,000. When Hendler was released from prison, he began a three-year term of supervised release. As a condition of supervised release, the court ordered Hendler to pay 10% of his gross monthly income toward his restitution obligation. Hendler’s release was supervised by the U.S. Probation Office in Vermont, and Hendler was required to submit monthly supervision reports to the Probation Office that included disclosures about monthly earnings and other cash inflows.On January 27, 2022, a federal grand jury in Burlington returned a two-count indictment that charged Hendler with forgery and making false statements. According to the indictment, between 2019 and January 2021, Hendler performed some consulting and other work for a business that operated two restaurants in South Hero, Vermont. In 2020, Hendler took possession of the company’s checkbook. Between 2019 and January 2021, the indictment alleges, Hendler embezzled tens of thousands of dollars from the business by stealing cash receipts generated by the restaurants, forging the business owner’s signature on checks Hendler made out to himself, and by fraudulently inducing the owner to give him blank checks, signed by her, which Hendler then made payable to himself.
The second count of the indictment accused Hendler of making materially false statements to the U.S. Probation Office in his monthly supervision reports. According to the indictment, the reports Hendler filled out and gave to Probation significantly underreported the amount of money Hendler was receiving from the South Hero restaurant business.
Hendler pleaded guilty to the forgery charge in July 2023. At that time, he also admitted that he violated his supervised release by not paying restitution in a timely way to the victims of his first indictment.
This case was investigated by the Boston Office of the U.S. Treasury Department’s Office of the Inspector General for Tax Administration, and U.S. Attorney Nikolas Kerest commends the investigators for their excellent work.
Hendler is represented by Brooks McArthur, Esq. and Amanda Hemley, Esq.. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Operators of Large-Scale Marriage Fraud “Agency” SentencedRead the Press Release
BOSTON – Four California-based individuals have been sentenced in federal court in Boston for their roles in running a large-scale marriage fraud “agency” that arranged hundreds of sham marriages for the primary purpose of circumventing immigration laws. This included, among other things, obtaining green cards under the Violence Against Women Act (VAWA) by claiming falsely that the undocumented clients had been abused by American spouses.
The defendants, all Philippine nationals residing in Los Angeles, were arrested and charged along with seven others with conspiracy to commit marriage fraud and immigration document fraud in April 2022.
Marcialito Biol Benitez, a/k/a “Mars,” 50, was sentenced on March 7, 2024 by U.S. District Court Judge Denise J. Casper to 22 months in prison and three years of supervised release. Benitez pleaded guilty in September 2023. Also on March 7, 2024, Juanita Pacson, 48, was sentenced by Judge Casper to two years of supervised release with the first four months on home detention after previously pleading guilty in September 2023.
Engilbert Ulan, 43, was sentenced on March 6, 2024 by Judge Casper to 14 months in prison and three years of supervised release. Ulan was convicted by a federal jury in November 2023.
On Jan. 11, 2024, Nino Valmeo, 47, was sentenced by Judge Casper to three years of supervised release with the first six months on home confinement after pleading guilty in August 2023.
Benitez, with the help of co-defendants, operated what he and others referred to as an “agency” that arranged hundreds of sham marriages between foreign national “clients” and United States citizens, including at least one foreign national who resided in Massachusetts. The agency then prepared and submitted false petitions, applications and other documents to substantiate the sham marriages and secure adjustment of clients’ immigration statuses for a fee of between $20,000 and $35,000 in cash.
Benitez operated the agency out of brick-and-mortar offices in Los Angeles, where he employed co-defendants Ulan and Valmeo as staff. Ulan and Valmeo assisted with arranging marriages and submitting fraudulent marriage and immigration documents for the agency’s clients. Benitez relied on several other co-conspirators to recruit U.S. citizens to marry the agency’s clients in exchange for payment.
After pairing foreign national clients with citizen spouses, Benitez’s agency staged fake wedding ceremonies at chapels, parks and other locations, performed by hired online officiants. Pacson, a friend of these co-defendants who worked at one of the chapels, assisted with sham wedding ceremonies and marriage documents. For many clients, the agency would take photos of undocumented clients and citizen spouses in front of prop wedding decorations for later submission with immigration petitions.
Benitez’s agency then submitted fraudulent, marriage-based immigration petitions to U.S. Citizenship and Immigration Services (USCIS), the federal agency responsible for granting lawful permanent resident status. Benitez, Ulan, Pacson, and others, advised clients about creating and maintaining the appearance of legitimate marriage to their spouses.
Ulan conducted practice interviews with the agency’s clients and their fake spouses for the purpose of preparing couples to pass required interviews with immigration authorities. He coached the sham couples to provide the same fabricated answers to questions posed during green card interviews and conceal the fraudulent nature of the marriages.
Benitez, Ulan, Valmeo, and Pacson assisted clients with preparing fraudulent supporting documents submitted as “evidence” of the marriages’ legitimacy. Ulan, Valmeo and Pacson also rented the use of their apartment addresses to clients who lived outside of Los Angeles so those clients could list these addresses as their own on green card applications and related documents, to make it appear to immigration authorities that they were living with their sham spouses in the Los Angeles area. Ulan and Valmeo also received cash commissions for referring new clients to the agency.
Benitez’s agency would assist certain clients – typically those whose spouses became unresponsive or uncooperative – with obtaining green cards under the Violence Against Women Act (VAWA) by claiming the undocumented clients had been abused by alleged American spouses. Specifically, Benitez, Valmeo, and others, would submit fraudulent applications on clients’ behalf for temporary restraining orders against spouses based on fabricated domestic violence allegations. Benitez’s agency would then submit the restraining order documentation along with immigration petitions to USCIS, in order to take advantage of VAWA provisions that permit non-citizen victims of spousal abuse to apply for lawful permanent resident status without their spouses’ involvement.
Benitez’s agency arranged sham marriages and submitted fraudulent immigration documents for at least 600 clients between October 2016 and March 2022.
Several co-defendants were previously sentenced by Judge Casper for their roles in this scheme. Peterson Souza, who referred non-citizens to the agency for a fee was sentenced to five months in prison and three years of supervised release with the first five months on home detention, and Felipe David, who referred clients to the agency for assistance with VAWA-based applications was sentenced to three years of supervised release.Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego; and Alanna Ow, Director of U.S. Citizenship & Immigration Services, San Diego District made the announcement today. The U.S. Attorney’s Office for the Central District of California provided valuable assistance in this matter. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Oklahoma City Man Pleads Guilty to Firearms Trafficking and Possession of a Machinegun and Agrees to Forfeit 194 Firearms, Machinegun Conversion Device, Ammunition, and Nearly $470,000 CashRead the Press Release
OKLAHOMA CITY – Yesterday, PHILLIP NILES MARTIN, 68, of Oklahoma City, pleaded guilty to firearms trafficking conspiracy and to unlawful possession of a machinegun, announced U.S. Attorney Robert J. Troester.
According to an affidavit in a previously filed criminal complaint, Martin was the subject of two previous Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigations for similar conduct. In 2013, Martin received a verbal warning for dealing firearms without a license and was advised that even with a license he could not deal firearms at an Oklahoma City swap meet. In 2020, he acknowledged receipt of an ATF cease-and-desist letter after a firearm that he had purchased was recovered at a crime scene in Mexico.
The affidavit further provides that in June 2022, ATF received multiple tips that Martin was illegally dealing in firearms at an Oklahoma City swap meet. An investigation revealed that Martin was still dealing firearms without a license and sold firearms at significantly inflated rates – approximately double retail price – without completing the background checks required by law.
Pursuant to a search warrant executed at Martin’s residence, agents seized 194 firearms, a significant quantity of ammunition, approximately $469,520 in cash, and a machinegun conversion device, commonly known as a “switch,” which when installed, converts a semi-automatic weapon into a fully automatic machinegun. Possession of these devices violates federal law.
On February 16, 2024, Martin was charged by Information with conspiracy to illegally traffic firearms and with unlawful possession of a machinegun.
Yesterday, Martin appeared before United States District Judge Jodi W. Dishman and pled guilty to both counts of the Information. In entering his plea, Martin specifically acknowledged he knowingly conspired with others to traffic firearms and that he illegally possessed a machinegun conversion device. Martin also agreed to forfeit all 194 firearms, the ammunition, approximately $469,520 in cash, and the machinegun conversion device.
At sentencing, Martin faces up to 25 years in federal prison and fines totaling up to $500,000. The sentencing hearing will take place in approximately 90 days.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Danielle M. Connolly is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. This case is also part of “Project Switch Off,” the Western District of Oklahoma’s local implementation of PSN. “Project Switch Off” targets illegal machinegun conversion devices to address the significant danger these illegal devices present and to remove them from our streets. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for more information.
North Carolina Home Health Care Agency and Owner Agree to Pay $600,000 to Resolve False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. – Family First Home Health Care, Inc. (Family First), a home health care agency located in Gastonia, N.C. (now d/b/a Gaston Piedmont Health Care Inc.), and its owner Marion James (James) have agreed to collectively pay $600,000 to resolve allegations that they knowingly violated the Federal and North Carolina False Claims Acts from January 1, 2015, through January 9, 2020, by submitting thousands of fraudulent claims to Medicaid for reimbursement, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Specifically, the United States and State of North Carolina (together, the Governments) alleged that Family First and James billed Medicaid for personal care services that were never performed, such as billing for in-home services on days when patients were hospitalized. Similarly, the Governments alleged that Family First and James billed for years of personal care services purportedly provided to patients in their homes by James’ daughter while she was hours away at college as a full-time student playing on the varsity basketball team, or billed for services provided by an aide after that aide had moved out of state.
The Governments further alleged that Family First and James engaged in a scheme to have family member aides provide personal care services to their own family member beneficiaries (for example, a daughter providing services to her mother) in violation of state Medicaid regulations, and then fraudulently bill for those services as if they were performed by a non-related aide, forging documents and signatures to perpetuate the scheme.
“Medicaid beneficiaries qualifying for personal care services are those that require assistance with daily living tasks, often the elderly. This settlement demonstrates that those who would profit from defrauding government healthcare payors while taking advantage of vulnerable patients entrusted to their care will be held accountable,” said U.S. Attorney King.
“Submitting false claims to Medicaid undermines the integrity of the program and wastes valuable taxpayer dollars,” said Special Agent in Charge Tamala E. Miles at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to investigating providers who allegedly defraud federal health care programs.”
“These defendants stole hundreds of thousands of taxpayer dollars while never actually providing the care they claimed to,” said North Carolina Attorney General Josh Stein. “My office will hold accountable those who defraud the Medicaid system and take away resources from people who need them.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former Family First employee Heather Coleman. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Coleman v. Family First Home Health Care, LLC and Marion James, No. 3:19-CV-405 (W.D.N.C.). The settlement amount was based on Family First and James’ ability to pay.
Assistant U.S. Attorney Seth Johnson and Investigator Cathleen Hollowell of the U.S. Attorney’s Office in Charlotte investigated the matter, in conjunction with the Medicaid Investigations Division of the North Carolina Attorney General’s Office and the Office of Inspector General of the United States Department of Health and Human Services.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
New York-Presbyterian/Brooklyn Methodist Hospital Settles Health Care Fraud Claims for $17.3 MillionRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with New York-Presbyterian/Brooklyn Methodist Hospital. The settlement agreement requires the hospital to pay $17.3 million to resolve allegations that it paid unlawful kickbacks to physicians at the hospital’s chemotherapy infusion center. The payments were made pursuant to a contractual arrangement that linked the compensation physicians received to the number of referrals the physicians made for services at the Center. The agreement also resolves claims that physicians at the infusion center failed to adequately supervise the chemotherapy services. The settlement resolves claims under the federal and New York State False Claims Acts. Of the total settlement amount, $16.410 million is to be paid to the federal government, and $890,000 is to be paid to New York State. The Hospital voluntarily self-disclosed the issues to the United States.
“This settlement addresses a compensation scheme that incentivized physicians to make referrals for services based on how much they would be paid and were essentially kickbacks,” stated United States Attorney Peace. “New York-Presbyterian/Brooklyn Methodist Hospital voluntarily self-disclosed the conduct to the United States, which allowed it to mitigate the penalties associated with the conduct.”
To ensure that physicians make medical decisions based solely on the needs of their patients, Medicare and Medicaid rules prohibit physicians from receiving any kind of remuneration in exchange for patient referrals for services. The United States’ investigation of New York-Presbyterian/Brooklyn found that physicians at a chemotherapy infusion center affiliated with the hospital were paid based, in part, on the volume of referrals they generated for it.
Medicare and Medicaid rules also require that those billing for medical services be involved in the services. A hospital, for instance, cannot bill for the services of a physician if that physician did not participate in the patient care. The rules recognize that non-physicians, like nurses, provide care to patients; such care is permissible and, often, desirable. But, in many instances, such care must be provided under the supervision of a physician who is available to assist in the care if need be. At the infusion center at issue in this matter, Medicare and Medicaid were billed for services provided by non-physicians even in instances in which physicians were not available to adequately supervise the services.
The matter was handled by Assistant United States Attorney Michael Blume of the Office’s Civil Division.
New York man sentenced to prison for possessing incendiary device he ignited near victim’s Butler County homeRead the Press Release
CINCINNATI – A New York man was sentenced in federal court here today to 46 months in prison for possessing an unregistered incendiary device. The defendant took a two-hour flight to light a woman’s car on fire.
Farhan Jami, 29, of East Meadow, New York, constructed an incendiary device, placed it on top of a vehicle’s hood and ignited the device. The fire destroyed the vehicle and damaged the side of the nearby Butler County house, which was occupied at the time of the fire.
According to court documents, in May 2023, Jami flew from New York to Ohio and brought thermite (an incendiary powder) and sparklers with him on the flight.
In the early morning hours of May 16, 2023, Jami traveled to a residence in Butler County and constructed an incendiary device using the thermite, sparklers and a ceramic pot. He placed the device on the hood of a car at the home and lit the sparklers. He left as the fire began.
Home security footage showed Jami wearing a hat, surgical mask and gloves while placing and lighting the device before walking away.
While responding to the scene, officers located Jami in a vehicle nearby. His shirt and pants had red residue on them consistent with thermite. Officers also discovered the lighter, hat, mask and gloves used during the crime, as well as a bag of thermite.
Jami was indicted by a federal grand jury in June 2023 and pleaded guilty in October 2023.
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 sentence imposed today by U.S. District Judge Matthew W. McFarland. Assistant United States Attorneys Timothy S. Mangan and Ryan A. Keefe are representing the United States in this case.
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New Orleans Man Sentenced Fifty-Nine Month Imprisonment After Pleading Guilty to Federal Firearms OffenseRead the Press Release
NEW ORLEANS, LOUISIANA- MICHAEL WILLIAMS, age 28, a resident of New Orleans, was sentenced on March 5, 2024 by U.S. District Judge Darrel J. Papillion to 59 months imprisonment to be followed by 3 years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to court documents, on January 10, 2023, WILLIAMS and three other individuals were standing near the intersection of North Broad and Hope streets at the edge of the Seventh Ward. When NOPD detectives drove by in an unmarked vehicle, the individuals backed up and clutched at their waistbands, indicating to the detectives that they possessed concealed firearms. Marked NOPD units were called to the area and, upon seeing the police vehicles, WILLIAMS fled and during the pursuit by an NOPD officer. WILLIAMS removed a Glock Model 43 handgun, that was concealed on his person, and discarded it on the ground.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Sentenced for Multiple Federal Offenses Related to Drugs, Firearm, and Possessing Car Stolen from Norfolk Southern RailyardRead the Press Release
NEW ORLEANS, LOUISIANA- NORMAN ANDREWS, age 24, a resident of New Orleans, was sentenced on March 5, 2024 by U.S. District Judge Jay C. Zainey, after previously pleading guilty to charges in a multi-count indictment.
ANDREWS was sentenced to 78 months imprisonment, followed by 5 years of supervised release, and a $300 mandatory special assessment fee for his convictions for possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659; possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, ANDREWS was arrested, following a brief chase, on February 11, 2023 in the French Quarter by a New Orleans Police Department officer. When ANDREWS was finally apprehended, he possessed a Glock Model 19x firearm with a loaded, extended magazine containing 31 rounds, a black ski mask, two blister packs of tapentadol, two bags of marijuana, and over $2,000 in cash.
On March 27, 2023, a Ford Explorer Timberline was stolen from the Norfolk Southern Automotive Distribution Facility. Andrews was observed on surveillance video driving the Ford Explorer, two days after it was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Violating Federal Gun Control and Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – HAROLD DECLOUET (“DECLOUET”), age 22, a resident of New Orleans, pleaded guilty on March 6, 2024 before U.S. District Judge Jane T. Milazzo to four counts of federal drug and weapons violations.
DECLOUET pleaded guilty to two counts of distribution of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of possession with intent to distribute cocaine base, marijuana, and tramadol, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 841(b)(2); and one count of possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
According to court documents, DECLOUET made two sales of cocaine base to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives in February of 2022. A few months later, in May of 2022, DECLOUET was arrested with cocaine base, marijuana, tramadol pills, over $1,000 in cash, and a Glock Model 19 handgun loaded with 31 rounds of ammunition.
With respect to his convictions for distribution of cocaine and possession with intent to distribute controlled substances, DECLOUET faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and a minimum of three years of supervised release on each count. With respect to his conviction for possessing a firearm in furtherance of a drug trafficking crime, DECLOUET faces a mandatory minimum sentence of five years and up to life in prison, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each count also carries a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Montana Man Pleads Guilty to Federal Wildlife Trafficking Charges as Part of Yearslong Effort to Create Giant Hybrid Sheep for Captive HuntingRead the Press Release
A Montana man pleaded guilty today to two felony wildlife crimes – a conspiracy to violate the Lacey Act and substantively violating the Lacey Act – as part of an almost decade-long effort to create giant sheep hybrids in the United States with an aim to sell the species to captive hunting facilities.
Arthur “Jack” Schubarth, 80, of Vaughn, Montana, is the owner and operator of Sun River Enterprises LLC – also known as Schubarth Ranch – which is a 215-acre alternative livestock ranch in Vaughn. The Schubarth Ranch is engaged in the purchase, sale and breeding of “alternative livestock” such as mountain sheep, mountain goats and various ungulates. The primary market for Schubarth’s livestock is captive hunting operations, also known as shooting preserves or game ranches.
According to court documents, Schubarth conspired with at least five other individuals between 2013 and 2021 to create a larger hybrid species of sheep that would garner higher prices from shooting preserves. Schubarth brought parts of the largest sheep in the world, Marco Polo argali sheep (Ovis ammon polii), from Kyrgyzstan into the United States without declaring the importation. Average males can weigh more than 300 pounds with horns that span more than five feet. Marco Polo argali are native to the high elevations of the Pamir region of Central Asia. They are protected internationally by the Convention on International Trade in Endangered Species, domestically by the U.S. Endangered Species Act and are prohibited in the State of Montana to protect native sheep from disease and hybridization.
Schubarth sent genetic material from the argali parts to a lab to create cloned embryos. Schubarth then implanted the embryos in ewes on his ranch, resulting in a single, pure genetic male Marco Polo argali that he named “Montana Mountain King” or MMK.
Court documents explain that Schubarth worked with the other unnamed coconspirators to use MMK’s semen to artificially impregnate various other species of ewes – all of which were prohibited in Montana – and create hybrid animals. Their goal was to create a larger and more valuable species of sheep to sell to captive hunting facilities, primarily in Texas.
To move the prohibited sheep into and out of Montana, Schubarth and others forged veterinary inspection certificates, falsely claiming that the sheep were legally permitted species. On occasion, Schubarth sold MMK semen directly to sheep breeders in other states.
Court documents also describe how Schubarth illegally obtained genetic material from wild-hunted Rocky Mountain bighorn sheep in Montana. Schubarth purchased parts of these wild-hunted sheep in violation of Montana law, which prohibits the sale of game animal parts within the state and prohibits the use of Montana game animals on alternative livestock ranches. Schubarth transported and sold the bighorn parts in interstate commerce.
“This was an audacious scheme to create massive hybrid sheep species to be sold and hunted as trophies,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “In pursuit of this scheme, Schubarth violated international law and the Lacey Act, both of which protect the viability and health of native populations of animals.”
“The kind of crime we uncovered here could threaten the integrity of our wildlife species in Montana,” said Ron Howell, Chief of Enforcement for Montana Fish, Wildlife & Parks (FWP). “This was a complex case and the partnership between us and U.S Fish and Wildlife Service was critical in solving it.”
The Lacey Act prohibits interstate trade in wildlife that has been taken, possessed, transported or sold in violation of federal or state law. The Lacey Act also prohibits the interstate sale of wildlife that has been falsely labeled. The Act is one of the most powerful tools the United States has to combat wildlife trafficking and prevent ecological invasion by injurious wildlife.
For each felony count, Schubarth faces a maximum penalty of five years in prison, a fine of up to $250,000 and three years of supervised release. Schubarth is scheduled to be sentenced on July 11 by Chief U.S. District Court Judge Brian M. Morris for the District of Montana.
The U.S. Fish and Wildlife Service and Montana FWP are investigating the case.
Trial Attorney Sarah M. Brown and Senior Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jeffrey Starnes for the District of Montana are prosecuting the case.
Mexican Citizen Sentenced to over 27 Years in Federal Prison in a South Dakota Cocaine ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sinaloa, Mexico man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 11, 2024.
Melecio Rodriguez Medina, 39, was sentenced to 27 years and three months in federal prison, followed by five years of supervised released. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Rodriguez Medina, and his co-conspirator, Mario Castro Covarrubias, were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in February 2022. Rodriguez Medina pleaded guilty on November 6, 2023 and Mario Castro Covarrubias pleaded guilty on January 3, 2024.
Rodriguez Medina and Castro Covarrubias were based in Mexico and were part of an international organization that arranged for the transportation of large amounts of narcotics to Sioux Falls, South Dakota, from Mexico. They coordinated with two couriers to get approximately 25 kilograms of cocaine delivered to Sioux Falls in October of 2021. On October 18, 2021, law enforcement seized the cocaine that they had shipped to South Dakota. In December of 2021, the two again coordinated to ship approximately 42 kilograms of cocaine to Sioux Falls, which was also seized. In addition to cocaine, Rodriguez Medina was responsible for organizing a shipment of 1 kilogram of fentanyl pills to Sioux Falls. Investigators also determined that Rodriguez Medina made arrangements for a co-conspirator in South Dakota to pick up multi-pound shipments of methamphetamine in California and then take them back to South Dakota for distribution.
This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Rodriguez Medina was immediately remanded to the custody of the U.S. Marshals Service.
Mescalero Woman Pleads Guilty to Domestic AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Prestina Lee Kazhe pleaded guilty in federal court to assault of an intimate partner resulting in substantial bodily injury. Kazhe, 44, of Mecalero, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending sentencing which has not been scheduled.
According to publicly available court records, on Sept. 24, 2023, Kazhe assaulted John Doe by repeatedly hitting him over the head with a Bud Light bottle and a metal pot and bit him on the arm. Following the assault, John Doe was transported to a nearby medical center where he was treated for three large lacerations which required multiple staples to close the wounds.
At sentencing, Kazhe faces up to 5 years in prison followed by 3 years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Joni Autrey Stahl is prosecuting the case.
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Member of Violent Gang Pleads Guilty to Racketeering, Firearm, and Drug Trafficking OffensesRead the Press Release
BOSTON – A Boston area man pleaded guilty yesterday to his role in Cameron Street, a violent Boston gang.
Keiarri Dyette, a/k/a “Kemo,” 26, pleaded guilty to conspiracy to participate in a racketeering enterprise, dealing in firearms without a license and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for June 13, 2024.
Dyette was identified as a member Cameron Street, a violent gang based largely in the Dorchester section of Boston. According to court documents, Cameron Street members use violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear, and enhance its reputation. They allegedly possess, carry, and use firearms to murder and assault their rivals. Like many members of Cameron Street, Dyette had tattoos and or wore clothing featuring the letter “C” or “KC” (for “Killa Cam”) that signified his membership in the gang:
As part of his role in the Cameron Street enterprise, Dyette used a pistol to assault a rival NOB/Wendover gang member in a parking lot on Hancock Street in Boston. Additionally, Dyette sold firearms and worked with other Cameron Street members to distribute cocaine and marijuana.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Member of Catalytic Converter Theft Crew Sentenced to More Than Three Years in PrisonRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Boston for his role in a regional organized theft crew that stole catalytic converters from nearly 500 vehicles, robbed jewelry stores and stole ATMs.
Nicolas Davila, 25, was sentenced by U.S. District Court Judge Leo T. Sorokin to 37 months in prison and five years of supervised release. In October 2023, Davila, pleaded guilty to one count of conspiracy to transport stolen property in interstate commerce; two counts of interstate transportation of stolen property; and possession with intent to distribute cocaine. The drug charge arises from cocaine found during the search of Nicolas Davila’s residence as part of the catalytic converter theft investigation.
In April 2023, Nicholas Davila was arrested and charged along with six others in connection with the theft, transportation and sale of stolen catalytic converters taken from at least 496 vehicles across Massachusetts and New Hampshire in 2022 through April 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement. According to court filings, there has been a precipitous decline in catalytic converter thefts reported in Massachusetts as a result of the April 2023 takedown – with only seven reported incidents of catalytic converter theft over the past 11 months following the arrests, in comparison to the hundreds of thefts reported during the nine-month period prior.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations.
Nicolas Davila was a member of a skilled, organized theft crew allegedly led by his brother, Rafael Davila, that utilized battery operated power-tools, car jacks to cut away and steal catalytic converters from vehicles across Massachusetts and into New Hampshire. The catalytic converter thefts were predicated upon the use of an internet application that provided real-time pricing for catalytic converters quantifying the commodity prices of the amounts of precious metal in a particular vehicle’s converter. Equipped with special knowledge of the values on the black market and technical skill with vehicles, the defendants targeted specific makes and models of vehicles to maximize the profits. The theft crew would travel hundreds of miles, hours on end in a single night, to specific locations, including home driveways and business parking lots, where large numbers of these vehicles were located in order obtain an economy of scale. On numerous occasions, the crew targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
As a result of the thefts, losses were determined to be approximately $5,000 per vehicle with certain trucks costing over $10,000 to repair. This amounts to an approximate $2 million in losses suffered by more than 300 separate victims who were forced to deal with their vehicles being disabled for potentially weeks on end. The more than 300 victims included businesses and individuals from all walks of life and all parts of Massachusetts and some from New Hampshire. They included a food pantry, families, automotive businesses, tradesmen, a bakery, single parents, a home healthcare provider and the elderly. Some businesses were repeatedly targeted on multiple nights.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. In particular, Torres sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
At sentencing, Nicolas Davila was held accountable for his participation in thefts of catalytic converters from 42 vehicles across Massachusetts and New Hampshire. Nicolas Davila was also held accountable for possessing cocaine and a firearm at the time of his arrest in April 2023.
Nicolas Davila is the fifth defendant to plead guilty in this case. In addition to the federal charges, Nicolas Davila separately faces a pending murder indictment in Hampden County Superior Court. His brother and the alleged leader of the theft crew, Rafael Davila, has pleaded not guilty and is presumed innocent.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of interstate transportation of stolen property each provide for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts police departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire police departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McKees Rocks Drug Trafficker Sentenced to Prison TermRead the Press Release
PITTSBURGH, Pa. - A resident of McKees Rocks, Pennsylvania, has been sentenced in federal court to 12 months plus one day of imprisonment, to be followed by three years of supervised release, on his conviction of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman imposed the sentence on Eric Howard, 36.
According to information presented to the Court, between February and June 2023, Howard conspired to distribute and possess with intent to distribute a quantity of fentanyl, a Schedule II controlled substance.
Prior to imposing sentence, Judge Stickman stated that the defendant had a significant record of drug trafficking and that a sentence of incarceration should serve as a deterrent from further drug trafficking activity.
Assistant United States Attorneys Katherine C. Jordan and Douglas C. Maloney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Howard.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Man Sentenced for Sending Bomb Threat to Arizona State Election OfficialRead the Press Release
A Massachusetts man was sentenced today to three years and six months in prison for sending a communication containing a bomb threat to an election official in the Arizona Secretary of State’s Office.
“Those using illegal threats of violence to intimidate election workers should know that the Justice Department will find you and hold you accountable under the law,” said Attorney General Merrick B. Garland. “The defendant in this case will spend the next three and a half years in federal prison for threatening an Arizona election official. We will continue to aggressively investigate and prosecute such unlawful threats of violence.”
According to court documents, on or about Feb. 14, 2021, James W. Clark, 40, of Falmouth, sent a message via the Arizona Secretary of State’s website through “Contact Elections,” addressing the election official by her first name and warning her that she needed to “resign by Tuesday February 16th by 9 am or the explosive device impacted in her personal space will be detonated.” Shortly after transmitting the message, Clark conducted online searches that included the full name of the election official in conjunction with the words “how to kill” and “address.” Additionally, on or about Feb. 18, 2021, Clark conducted online searches involving the Boston Marathon bombing.
“James W. Clark sent a bomb threat to an Arizona election official. As a result, law enforcement searched the office building where the official worked, as well as the official’s home and car, for an explosive device,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Public servants who ensure our free and fair elections must be able to do their jobs without fear. The Criminal Division will continue to aggressively investigate and prosecute those who target election officials with threats of violence.”
In response to Clark ’s message, law enforcement conducted partial evacuations and bomb sweeps of the building in which the Arizona Secretary of State’s Office was located, including an evacuation of the floor of the Office of the Arizona Governor located in the same building. Law enforcement also conducted bomb sweeps of the election official’s personal residence and of the election official’s car.
“The U.S. Attorney’s Office for the District of Arizona will continue to prosecute those who would threaten our public servants simply for performing the jobs they were hired to do,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “As we head into election season, we thank the state and county election community who make democracy possible.”
“Election officials, their staffs, and volunteers are essential to our democracy and any threat to these public servants is completely unacceptable,” said Special Agent in Charge Akil Davis of the FBI Phoenix Field Office. “As part of our mission to defend the democratic process, this case demonstrates that the FBI remains prepared to respond to these threats in an urgent and timely fashion.”
Clark pleaded guilty in August 2023 to one count of making a threatening interstate communication.
The FBI Phoenix Field Office investigated the case, with assistance from the FBI Boston Field Office.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Sean K. Lokey for the District of Arizona prosecuted the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Over two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Man Accused of Defrauding Investors in Sports Betting FundRead the Press Release
ST. LOUIS – A man from Pennsylvania has been indicted in St. Louis and accused of defrauding investors in a sports betting fund for more than five years.
Elijah A. Goshert, 47, was indicted on Nov. 15, 2023, on three counts of wire fraud. Goshert was arrested in Pennsylvania on Feb. 28, 2024, and pleaded not guilty in U.S. District Court in St. Louis Tuesday.
The indictment says Goshert, who had a day job at a telecommunications company, told investors that he ran an investment fund called the Magellan Sports Fund. Goshert said the fund placed sports bets using a "sophisticated computer algorithm" that substantially reduced risks, the indictment says. Goshert told investors he would not make any money unless the bets turned a profit, but the indictment says Goshert actually used investors’ money for his personal expenses, including Disney vacations, private school tuition and mortgage payments.
Goshert sent fraudulent “updates” and account statements to investors and lied to investors when they tried to withdraw cash, the indictment says. At least 10 investors lost more than $500,000, the indictment says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Each wire fraud charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Lawrence Woman Sentenced in Conspiracy to Use Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A Lawrence woman was sentenced today for her role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles.
Wanda Sanchez, 40, was sentenced by U.S. District Court Judge Patti B. Saris to two years of probation. In November 2023, Sanchez pleaded guilty to conspiracy to commit wire fraud, wire fraud and false representation of a Social Security number.
In January 2019, Sanchez visited a Massachusetts car dealership in an attempt to purchase a late-model vehicle and applied for 100% financing. In support of the application, Sanchez provided stolen biographical information of a real United States citizen, along with a fraudulent Puerto Rico driver’s license and a Social Security card in that identity as proof of identification. When Sanchez’s co-defendant and then-boyfriend Ricardo Acevedo arrived at the dealership to obtain the vehicle, he was immediately taken into custody. In May 2023, Acevedo was sentenced to six years in prison after previously pleading guilty to his role in the conspiracy.
Sanchez is the fifth defendant to be sentenced in this case. Altogether, Sanchez and her co-conspirators fraudulently purchased at least 47 vehicles and over $270,000 in other merchandise using stolen identities, resulting in over $2 million in losses. The co-conspirators have been ordered to pay over $781,000 in restitution to victims who submitted claims.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division are prosecuting the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Lamor Whitehead, Brooklyn Church Leader, Convicted of Fraud, Extortion, and False StatementsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict last night against LAMOR WHITEHEAD on two counts of wire fraud, one count of attempted wire fraud, one count of attempted extortion, and one count of making false statements to federal law enforcement agents. U.S. District Judge Lorna G. Schofield presided over the two-week trial.
U.S. Attorney Damian Williams said: “As a unanimous jury found, Lamor Whitehead abused the trust placed in him by a parishioner, tried to obtain a fraudulent loan using fake bank records, bullied a businessman for $5,000, tried to defraud him out of far more than that, and lied to federal agents. Whitehead’s reprehensible lies and criminal conduct have caught up with him, as he now stands convicted of five federal crimes and faces time in prison.”
According to the allegations in the Indictment and the evidence at trial:
LAMOR WHITEHEAD, who leads a church in Brooklyn, New York, stole from his own parishioners, sought to defraud and extort a businessman, and committed loan fraud. First, WHITEHEAD induced one of his parishioners to invest approximately $90,000 of her retirement savings with him by promising to use the money to help her buy a home. He then spent the money on luxury goods and other personal expenses and, when she demanded to be paid back, he continued to lie to avoid returning the money. Second, WHITEHEAD extorted a businessman for $5,000, then attempted to convince the same businessman to lend him $500,000 and give him a stake in certain real estate transactions in return for favorable actions from the Mayor of New York City, even though WHITEHEAD knew he could not obtain the favors he promised. Third, WHITEHEAD submitted a fraudulent application for a $250,000 business loan, including doctored bank statements that falsely claimed WHITEHEAD had millions of dollars in the bank and hundreds of thousands of dollars in monthly revenue. Finally, when speaking with Federal Bureau of Investigation (“FBI”) agents who were executing a search warrant outside WHITEHEAD’s mansion in New Jersey, WHITEHEAD falsely claimed that he had no cellphones other than the phone he was carrying when, in fact, WHITEHEAD had and regularly used a second cellphone, which was inside his house at the time.
* * *
WHITEHEAD, 45, of Paramus, New Jersey, was convicted of two counts of wire fraud, one count of attempted wire fraud, and one count of attempted extortion, each of which carries a maximum sentence of 20 years in prison, and one count of making false statements, which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Jane Kim, and Derek Wikstrom, with the assistance of Paralegal Specialist Christopher De Grandpre, are in charge of the prosecution.
La Fiscalía Federal del Distrito de Puerto Rico anuncia Programa Piloto para Denunciantes (Whistleblower Pilot Program)Read the Press Release
SAN JUAN, Puerto Rico – El Fiscal Federal W. Stephen Muldrow anuncia que la Oficina de la Fiscalía Federal del Distrito de Puerto Rico ha lanzado un Programa Piloto para Denunciantes (Whistleblower Pilot Program) diseñado para fomentar la divulgación temprana y voluntaria de conducta criminal por parte de participantes individuales en ciertos delitos no violentos.
A cambio de dicha divulgación y cooperación, la Fiscalía Federal entrará en un acuerdo de no enjuiciamiento cuando se cumplan ciertas condiciones específicas, incluida, sobre todo, la condición de que el gobierno no tuviera conocimiento previo de la conducta delictiva objeto de la divulgación. Al brindar claridad sobre los requisitos de los beneficios de dicha divulgación, buscamos incentivar a las personas (y a sus abogados) a brindar información procesable y oportuna. Eso, a su vez, nos ayudará a sacar a la luz más conductas indebidas y actividades delictivas, y a proteger mejor a las comunidades a las que servimos.
“Aunque otros Distritos han emitido recientemente una política similar, este nuevo programa sigue el mensaje que esta Fiscalía Federal y nuestros socios federales del orden público han estado enfatizando públicamente durante los últimos años,” dijo el Fiscal Federal W. Stephen Muldrow. “La cooperación temprana y completa con las autoridades federales será recompensada, al igual que es esencial para nuestra misión de servicio público de erradicar el fraude y la corrupción pública, y hacer que nuestras comunidades sean más seguras y fuertes.”
Adjunto incluimos copias del memorando del Programa Piloto para Denunciantes y del Formulario de Admisión. También se pueden encontrar en el sitio web público de Fiscalía Federal, ubicado en https://www.justice.gov/usao-pr. Para comenzar el proceso de denuncia de irregularidades bajo este programa, el Formulario de Admisión se puede enviar por correo electrónico a [email protected].
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pr_usao_pilot_whistleblower_final.pdf pr_usao_pwp_intake_form.pdfJustice Department Sues to Shut Down Central Florida-Based Return PreparerRead the Press Release
The Justice Department filed a complaint today seeking to bar a central Florida-area return preparer from owning or operating a tax return preparation business and preparing tax returns for others.
The civil complaint against Kenia Rodriguez, also known as Kenia Legon, was filed in the U.S. District Court for the Middle District of Florida. The complaint alleges that Rodriguez, through a fictitious entity called Rodriguez Tax Services, prepared federal income tax returns on which she claimed extensive fraudulent deductions and credits to purposely underreport the taxes her customers owed and claimed refunds they were not entitled to receive. Specifically, the complaint alleges that Rodriguez prepared returns with false or inflated itemized deductions claimed on Form 1040 Schedule A and false claims for residential clean energy credits. The United States contends that Rodriguez hid her tax preparation activity by failing to properly identify herself on the tax returns that she prepared.
According to the IRS, anyone who is paid to prepare or who assists in preparing federal tax returns is legally required to have a valid Preparer Tax Identification Number (PTIN), and paid preparers must sign and include their PTIN on the return. Not signing a return, commonly known as “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS. The complaint alleges that Rodriguez operated as a “ghost preparer.”
By repeatedly understating her customers’ tax liabilities, the complaint alleges that the United States has been harmed by Rodriguez’s conduct, resulting in the significant loss in tax revenue of over $6 million since 2021. In addition to seeking an injunction against Rodriguez, the government requests an order of disgorgement to prevent Rodriguez from profiting from violating the internal revenue laws.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys from the Tax Division are handling the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid "ghost preparers" and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Rodriguez Complaint (Filed).pdfJustice Department Finds Utah Prison System Discriminated Against Incarcerated Individual Based on Gender DysphoriaRead the Press Release
The Justice Department today announced its finding that the Utah Department of Corrections (UDOC) violated the Americans with Disabilities Act (ADA) by discriminating against an incarcerated transgender woman on the basis of her disability, gender dysphoria. The department’s investigation found that UDOC failed to provide the complainant (who identifies as female but was assigned male at birth) equal access to health care services after she repeatedly requested hormone therapy. UDOC also failed to make reasonable modifications to its policies and practices to treat the complainant’s gender dysphoria.
Gender dysphoria is a serious medical condition marked by clinically significant distress caused by an incongruence between the sex an individual is assigned at birth and their gender identity. Left untreated, individuals with gender dysphoria can experience serious adverse mental health outcomes.
“All people with disabilities including those who are incarcerated are protected by the ADA and are entitled to reasonable modifications and equal access to medical care, and that basic right extends to those with gender dysphoria,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that jails and prisons throughout the country do not discriminate against people with disabilities, and that right includes people with gender dysphoria.”
The department’s investigation found that UDOC imposed unnecessary barriers to treatment for gender dysphoria that were not required for other health conditions, and unnecessarily delayed the complainant’s treatment. When UDOC finally provided her with hormone therapy, it failed to take basic steps to ensure that the treatment was provided safely and effectively.
UDOC also failed to grant the complainant’s requests for reasonable modifications including permitting her to purchase female clothing and personal items in the commissary, modifying pat search policies and individually assessing her housing requests to avoid discrimination on the basis of gender dysphoria. As a result, her gender dysphoria worsened during her incarceration at UDOC. Twenty-two months after entering custody, she performed dangerous self-surgery and removed her own testicles.
The department’s written notice to UDOC of its findings details remedial measures necessary to address them. The department’s investigation is part of its broader efforts to combat discrimination against individuals with gender dysphoria. These include the Civil Rights Division’s recently filed statement of interest clarifying that gender dysphoria can be a covered disability under the ADA and explaining that correctional institutions violate the Eighth Amendment when they categorically refuse to provide medically necessary gender-affirming care to incarcerated individuals with gender dysphoria.
The Civil Rights Division’s Disability Rights Section is handling this matter in collaboration with the U.S. Attorney’s Office for the District of Utah.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov.
Jury Finds Russian-Swedish Operator of ‘Bitcoin Fog’ Guilty of Running the Darknet Cryptocurrency MixerRead the Press Release
WASHINGTON – Roman Sterlingov, a citizen of Russia and Sweden, was found guilty today of operating among the longest-running and most prolific bitcoin money laundering services on the darknet.
The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Deputy Attorney General Lisa Monaco, Chief Jim Lee of the Internal Revenue Service (IRS)-Criminal Investigation, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
Sterlingov, 35, was found guilty of money laundering conspiracy, sting money laundering, operating an unlicensed money transmitting business, and violations of the D.C. Money Transmitters Act. The jury also granted forfeiture to the government of several specific assets that law enforcement had previously seized, including over about 1,354 Bitcoin held in a Bitcoin Fog wallet, as well as $349,625 and various cryptocurrencies (including Bitcoin, Ethereum, Monero, and Stellar) held in seized Kraken cryptocurrency exchange accounts. U.S. District Court Judge Randolph D. Moss scheduled sentencing for July 15, 2024, and will also consider a further forfeiture money judgment. Money laundering conspiracy and money laundering sting each carry a statutory maximum sentence of 20 years in prison; unlicensed money services business and DC Code money transmission without a license each carry a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to the government’s evidence, Sterlingov operated Bitcoin Fog from October 2011 to April 2021. Bitcoin Fog was a cryptocurrency “mixer,” or “tumbler,” and had gained notoriety as a money laundering service for criminals seeking to hide their illicit proceeds from law enforcement. Over the course of its decade-long operation, stopped only when Sterlingov was arrested and detained, Bitcoin Fog moved well over 1.2 million bitcoin (BTC) – valued at approximately nearly $400 million at the time of the transactions. The bulk of that cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer fraud and abuse activities, and identity theft. His service also served purveyors of child sexual abuse material (CSAM) through the notorious site Welcome to Video.
“Darknet criminals should know by now that operations like Bitcoin Fog cannot provide the anonymity for cryptocurrency transactions that they claim they can,” said U.S. Attorney Matthew M. Graves of the District of Columbia. “This conviction demonstrates that the United States can and will combat the use of technology to carry out crimes in cyberspace.”
“Roman Sterlingov thought he could use the shadows of the internet to launder hundreds of millions of dollars in bitcoin without getting caught. But he was wrong,” said Deputy Attorney General Monaco. “Our team of agents, analysts, and prosecutors were relentless in their pursuit of justice, painstakingly tracing bitcoin through the blockchain to hold Sterlingov and his Bitcoin Fog enterprise to account. Today, a jury returned guilty verdicts on all counts — showing that no matter where you operate, if your cryptocurrency service reaches the United States, you must abide by U.S. law.”
“Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds,” said IRS Criminal Investigation Chief Jim Lee. “IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed.”
“For a decade, Sterlingov managed a cryptocurrency mixer that criminals used to launder millions of dollars linked to cybercrimes, narcotics sales, and child exploitation,” said Assistant Director in Charge David Sundberg. “His conviction demonstrates the FBI's commitment to working with our partners to disrupt the cybercriminal ecosystem by targeting its most technical and proficient enablers.”
“Roman Sterlingov operated Bitcoin Fog, a cryptocurrency ‘mixing’ service that allowed criminals to launder hundreds of millions of dollars in illicit funds from darknet marketplaces. The defendant and his customers believed they could use Bitcoin Fog to conceal these illicit transactions,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As the jury’s guilty verdict shows, that belief was mistaken. The Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.”
At launch, Sterlingov publicized Bitcoin Fog as a tool for anonymizing bitcoin transactions and evading law enforcement. His site charged customers a fee for the service. Historically, the largest users of Bitcoin Fog were darknet markets such as Agora, Silk Road, Silk Road 2.0, Evolution, and AlphaBay. As the jury found, Sterlingov’s mixing and tumbling activity was an illegal money transmitting and money laundering service under federal law.
While the identity of a BTC address owner is generally anonymous (unless the owner opts to make the information publicly available), the evidence at trial demonstrated that law enforcement can identify the owner of a particular bitcoin address by analyzing the blockchain. The analysis can also reveal additional addresses controlled by the same individual or entity. IRS-CI’s analysis determined Bitcoin Fog received approximately 486,861.69 BTC, valued at about $54,897,316 at the time of the transactions, directly from darknet markets. Bitcoin Fog sent approximately 164,931.13 BTC (about $23,690,956 at the time of the transactions) directly to darknet markets. In sum, the anonymizer sent or received more than $78 million in transactions involving known darknet markets, counting only direct transactions.
Based on Bitcoin Fog’s transaction activity over time, Sterlingov made millions in commissions from Bitcoin Fog transactions. Investigators obtained records of Sterlingov’s true-name accounts at several cryptocurrency exchanges. Analysis of those accounts revealed the vast majority of cryptocurrency deposited into Sterlingov’s accounts was originally sourced and traced back to bitcoin clusters associated with Bitcoin Fog.
Under U.S. law, it is a crime to conspire to commit money laundering, that is, to conduct financial transactions with proceeds from unlawful activity designed to conceal the nature, location, source, ownership, or control of such proceeds. It is also a crime to conduct or attempt to conduct a financial transaction involving property represented to be the proceeds of specified unlawful activity, with the intent to conceal the nature, location, source, ownership, or control of such property. It is also a crime to operate a money transmitting businesses without obtaining an appropriate money transmitting license in the state in which the service operates, or with FinCEN. The D.C. also criminalizes similar unlicensed activity.
Sterlingov was arrested April 27, 2021, at Los Angeles International Airport and has remained detained since that time.
The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Europol; the Swedish Economic Crime Authority (Ekobrottsmyndigheten), the Swedish Prosecution Authority, and the Swedish Police; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime, and the Directorate for Investigating Organized Crime and Terrorism.
Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown for the District of Columbia are prosecuting the case. Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). Paralegal Specialists Angela De Falco and Divya Ramjee provided valuable assistance.
Indictment Charges Danbury Resident with Fentanyl Trafficking OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JAIRO ABREU, 31, of Danbury, has been charged by indictment with a fentanyl trafficking offense.
As alleged in court documents and statements made in court, an investigation by the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department revealed that Abreu was trafficking fentanyl into Hartford. Abreu was arrested on state charges on October 17, 2023. Following his arrest, a search of his Danbury residence revealed approximately three kilograms of fentanyl and an additional approximately 2,000 wax sleeves containing fentanyl.
Abreu was arrested on a federal criminal complaint on February 23, 2024. On March 6, a grand jury in New Haven returned an indictment charging him with possession with intent to distribute 40 grams or more of fentanyl. Abreu appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford, entered a plea of not guilty to the charge, and was released on a $100,000 bond.
If convicted of the charge, Abreu faces a mandatory minimum term of imprisonment of five years and a maximum term of 40 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Manchester Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Sean P. Mahard through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Idaho Falls Woman Sentenced to Federal Prison for Possession with Intent to Distribute 11,000 Fentanyl PillsRead the Press Release
BOISE – Patricia Gomez, 42, of Idaho Falls, was sentenced to 70 months in federal prison for possession with intent to distribute fentanyl, U.S. Attorney Josh Hurwit announced today. In imposing the sentence, U.S. District Judge Amanda K. Brailsford ordered that Gomez serve three years of supervised release after her term of incarceration.
According to court records, Gomez conspired with four codefendants to distribute fentanyl. Three of the codefendants – Juan Villa, 34, Tyson Mitchell, 37, and Kevin Sermon, 34, were incarcerated for prior drug crimes during the conspiracy. Villa had been arrested after bringing 20,000 fentanyl pills into Idaho. Villa, Mitchell, and Sermon recruited Gomez and Summer Jones, 37, of Idaho Falls, to receive drugs from a California based source of supply and transport the drugs to Idaho for further distribution.
Around May 29, 2023, Gomez traveled outside of Idaho to obtain a drug load in furtherance of the conspiracy. On May 30, 2023, Gomez returned to Idaho. Investigators stopped her vehicle and arrested her with 11,000 fentanyl pills.
Villa, Mitchell, Sermon, and Jones have all pleaded guilty to federal drug crimes and are awaiting sentencing in April and May.
U.S. Attorney Hurwit commended the cooperative efforts of the Idaho Falls Police Department, the Idaho State Police, and the Drug Enforcement Administration for their work on these cases. Assistant U.S. Attorneys Christopher Atwood and Francis Zebari prosecuted these cases.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Honduran National Sentenced to 9 Years for Massive Immigration Fraud SchemeRead the Press Release
MOBILE, AL – A Honduran national living in Pensacola, Florida has been sentenced to nine years in federal prison for orchestrating a massive immigration fraud scheme involving over 425 victims nationwide.
According to court documents, Franklin Javier Perez-Rios, age 29, orchestrated a fraud scheme from 2017 through 2023 in which he claimed to be able to provide immigration-related services to foreign nationals living in the United States. As part of this scheme, Perez-Rios, who had no legitimate qualifications, pretended at various times to be a current United States government official, a former United States government official, an immigration attorney, a paralegal, or other immigration services professional. Believing that Perez-Rios could help them gain lawful status in the United States, hundreds of victims in Florida, Alabama, and at least fourteen other states paid Perez-Rios thousands of dollars each for what they believed were legitimate, legal immigration services. Foreign national victims hired Perez-Rios with the hope that he could help them achieve legal status after years of residing in the United States.
Perez-Rios did not obtain status for any of the victims as he promised. Rather, he routinely filed asylum paperwork with United States Citizenship and Immigration Services (“USCIS”) on the victims’ behalf, and then told them that they had to travel to California with him where they were subject to medical examinations and vaccinations. Neither the medical examinations nor the trips to California were legitimately part of the asylum process. For other victims, Perez-Rios filed no paperwork on their behalf despite saying he would. To keep the victims believing he was working on their behalf, Perez-Rios provided them with forged documentation supposedly from the United States Government. These forged documents led many victims to believe that they had obtained legal status in the United States when, in fact, they had not.
Victims paid Perez-Rios several thousand dollars each, often in cash, for his sham immigration services. Victims were falsely led to believe that much of this money consisted of “fees” that they had to pay to the United States government, including a fictitious “forgiveness fee” for illegally entering the United States. Perez-Rios profited at least $2.8 million dollars from victims during this scheme, and he used this money for gambling and to fund his lavish lifestyle.Approximately 50 victims attended Perez-Rios’s sentencing hearing on March 8, and many explained to U.S. District Court Judge Kristi DuBose how this scheme affected them. Most victims were from Spanish speaking countries, and they believed that Perez-Rios was one of their own, someone they could trust in their efforts to obtain legal status. The victims explained that Perez-Rios preyed on this trust and exploited their naivete concerning the actual immigration process. Many victims missed important deadlines to apply for asylum because they believed Perez-Rios was doing so on their behalf. All the victims who spoke at the sentencing hearing described how Perez-Rios abused their trust.
Perez-Rios pleaded guilty to nine counts of wire fraud associated with the scheme, and the United States recommended a sentence at the high end of the advisory guidelines range. Judge DuBose agreed with the United States’ recommendation and sentenced Perez-Rios to 108 months in prison followed by three years of supervised release. Judge DuBose entered a forfeiture money judgment against Perez-Rios for over $2.8 million, representing the amount of illegal proceeds obtained from his scheme. Perez-Rios was also ordered to pay nearly $2.5 million dollars in restitution to victims of his scheme.
“This defendant exploited vulnerable victims and abused their trust, twisting the United States immigration process to his own selfish ends,” said United States Attorney Sean P. Costello. “Working with our partners in law enforcement, we will bring to justice anyone who tries to take advantage of the immigration system to line their own pockets.”
Homeland Security Investigations (HSI) Mobile and Pensacola led this investigation in collaboration with USCIS’s Fraud Detection and National Security Directorate (FDNS). Several other agencies assisted HSI in this investigation including the Florida Department of Law Enforcement (FDLE), United States Customs and Border Protection (USCBP) Office of Field Operations, United States Border Patrol (USBP) Mobile Station, Pensacola Police Department, Internal Revenue Service (IRS), and the Florida Highway Patrol (FHP).
Assistant U.S. Attorneys Justin D. Kopf and Christopher J. Bodnar prosecuted the case on behalf of the United States. Assistant U.S. Attorneys Amanda Gordon and Ryan Love of the United States Attorney’s Office for the Northern District of Florida also assisted in the successful prosecution of this case.
If you believe Perez-Rios filed an application on your behalf, you can call the USCIS Customer Service hotline at 1-800-375-5283 and inquire on the status of your immigration application. The hotline is operational from 8 am to 8 pm Eastern Standard Time (EST) Monday through Friday. If you know your Alien Registration number (also referred to as your A Number) and/or receipt number, you can check the status of your case online at https://www.uscis.gov/tools/checking-your-case-status-online. You should also update your contact information for any pending applications with USCIS. Information on how to update your address with USCIS can be found at https://www.uscis.gov/addresschange.
Guatemalan National Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar A. Reyes-Garcia, age 43, of Guatemala, was indicted on March 6, 2024, by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Reyes-Garcia was previously removed from the United States on June 11, 2015, through Harlingen, Texas, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on January 16, 2023, Reyes-Garcia was encountered in Lebanon County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney Stephen Dukes is prosecuting the case.
The maximum penalty under federal law for this offense is two years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Grand jury indicts 2 Central Ohio women in $2.8 million in COVID-relief fraud schemeRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged two Central Ohio women with crimes related to fraudulently receiving more than $2.8 million total in covid-relief funds from the Paycheck Protection Program (PPP).
Lorie A. Schaefer, 62, of Westerville, allegedly received nearly $1.9 million in covid-relief funds by fraudulently claiming an affiliation with an Ohio pizza company.
According to the indictment, Schaefer opened new bank accounts in December 2020 prior to registering a fictitious business name with the State of Ohio in March 2021.
It is alleged that Schaefer fraudulently claimed affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn. When notified that a PPP loan for nearly $1.9 million had been filed in the name of Flying Pizza, individuals at the family-owned business said their restaurants could not justify such a large loan.
Schaefer claimed to have 98 employees and allegedly submitted altered bank records as part of her application. Schaefer also claimed the business was established in March 2021, even though the original Flying Pizza was established in 1984. Additionally, she claimed not to be under indictment despite having pending theft charges in Meigs County. Schaefer allegedly attached multiple fraudulent documents to her PPP application, including a bank statement, tax records, and a letter from the IRS.
Bank records indicate Schaefer improperly used PPP funds for personal expenses, for example, nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and more than $900,000 to purchase and renovate a condominium in Westerville. Schaefer also allegedly made purchases at Wayfair, Lamps Plus, Kroger, KFC, Burger King, Arby’s, McDonald’s and Olive Garden. Evidence also suggests Schaefer used the fraud proceeds to purchase vehicles in Ohio and property in Australia for her personal use.
Schaefer allegedly assisted co-defendant Latisha C. Holloway, 42, of Reynoldsburg, in fraudulently receiving more than $980,000 in PPP loans.
Holloway allegedly claimed to own a business called Jaguar Logistics, LLC. Holloway stated on loan application documents that she had 76 employees and had a total gross income of $4.9 million. Her loan application was submitted within a month of Schaefer receiving PPP loans and records indicate Holloway wired Schaefer $180,000 after receiving her own loan money. According to court records, Holloway similarly attached fraudulent documents to her PPP loan, including a bank statement and tax records.
Both defendants allegedly collected unemployment benefits after receiving federal covid-relief funds.
Finally, it is alleged that Schaefer used another individual’s Social Security Number to apply for and receive an additional $20,800 in PPP funds for “LS Associates,” a corporation established by Schaefer.
The indictment charges each woman with two counts of wire fraud and one count of money laundering. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential penalty of up to 10 years in prison.
Schaefer and Holloway were arrested in August 2023 and originally charged at that time by criminal complaint.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the U.S. Department of Transportation Office of Inspector General and the Federal Bureau of Investigation (FBI), Cincinnati Division. Assistant United States Attorney David J. Twombly is 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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Fort Leonard Wood Pharmacist Sentenced for Knife AttackRead the Press Release
SPRINGFIELD, Mo. – A civilian pharmacist at Fort Leonard Wood, Mo., was sentenced in federal court today for attempting to murder his supervisor with a knife and stabbing him multiple times.
Robert E. Sapp, 65, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole.
On May 1, 2023, Sapp pleaded guilty to one count of assault with intent to commit murder.
Sapp was working at a dispensing window at the Post Exchange Pharmacy at Fort Leonard Wood on Dec. 3, 2021, when he was approached by the supervisory pharmacist who suggested they have a conversation in another area of the pharmacy. Video footage depicts Sapp reaching into his front right pocket, pulling out a knife, and opening the blade. Sapp held the knife behind his back as he approached the supervisor in another area of the pharmacy. Sapp lunged toward the supervisor with the knife, knocked him to the ground, and continued stabbing at his face and head. Another pharmacy employee interrupted the attack. Sapp put the knife in his pocket and left the pharmacy.
Military Police Service activated an installation shut down, and Sapp was detained while attempting to leave in his vehicle. An MP who arrested Sapp after extracting him from his vehicle found a knife, which had hair and blood on it, in his pocket. There was blood on Sapp’s clothing. The vehicle also had blood on the interior of the driver’s side door.
The victim of the stabbing was transported to the General Leonard Wood Army Community Hospital. Medical personal reported he had multiple stab wounds, including at least two stab wounds to his head.
This case was prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Jessica R. Eatmon. It was investigated by the U.S. Army Criminal Investigation Command.
Former Jacksonville Jaguars Employee Sentenced to More Than Six Years for Embezzling in Excess of $22 MillionRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry L. Adams today sentenced Amit Patel (31, Jacksonville) to six years and six months in federal prison for committing wire fraud and engaging in an illegal monetary transaction. As part of his sentence, the court entered an order of forfeiture in the amount of $22,221,454.40, the proceeds of the wire fraud charge. Patel was also ordered to pay full restitution to the Jacksonville Jaguars, the victim of his offense and his former employer. Patel pleaded guilty on December 14, 2023.
According to court documents, Patel operated a fraud scheme through which he embezzled approximately $22,221,454 from the Jaguars. Specifically, Patel used his role as the administrator for the team’s virtual credit card (VCC) program to make hundreds of purchases and transactions with no legitimate business purpose. Then, to hide and continue to operate the scheme, rather than accurately report his VCC transactions, Patel created accounting files that contained numerous false and fraudulent entries and emailed them to the Jaguar’s accounting department. Patel used a variety of methods to hide his illicit transactions by omitting them from the files, while still having the total dollar amount of VCC expenditures match the balances paid by the Jaguars for the VCC program line of credit. For example, to hide his fraudulent VCC transactions, Patel identified legitimate reoccurring VCC transactions, such as catering, airfare, and hotel charges, and then duplicated those transactions; he inflated the amounts of legitimate reoccurring VCC transactions; entered fictitious transactions that sounded plausible, but that never actually occurred; and moved legitimate VCC charges from upcoming months into the month of the accounting file that was immediately due to the accounting department.
Patel’s fraudulent transactions began in September 2019 and continued until he was fired by the Jaguars in February 2023. He used the proceeds of this scheme, in whole or part, to place bets with online gambling websites, to purchase a condominium in Ponte Vedra Beach, Florida, to pay for personal travel for himself and friends (including chartering private jets and booking luxury hotels and private rental residences), to acquire a new Tesla Model 3 sedan and Nissan pickup truck, to pay a criminal defense law firm, and to purchase cryptocurrency, non-fungible tokens, electronics, sports memorabilia, a country club membership, spa treatments, concert and sporting event tickets, home furnishings, and luxury wrist watches. Patel did not report any of this illicit income on his tax returns.
“This case exemplifies the FBI’s relentless effort to protect American companies and their customers,” said Mark Dargis, Acting Special Agent in Charge of the FBI Jacksonville Division. “Amit Patel knowingly and wittingly created a deceptive scheme to fund a lavish lifestyle at his employer’s expense, and today’s sentencing is a warning to other scam artists: the FBI and our partners will continue to aggressively pursue corporate fraud investigations to protect consumers from bearing the costs associated with criminal activity.”
“Today, the IRS intercepted Patel’s playbook and achieved justice for the American public. Patel deceived the Jacksonville Jaguars and used his position of trust to steal from the team, gamble on games and fund a lavish lifestyle,” said IRS-CI Acting Special Agent in Charge Lani Rosado-Espinal. “IRS-CI will continue to work with our law enforcement partners to provide the financial expertise to unravel sophisticated fraud and money laundering schemes.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Brenna Falzetta and Michael J. Coolican. The asset forfeiture is being handled by Assistant United States Attorneys Mai Tran and Jennifer Harrington.
Former Cedar Rapids Resident Sentenced to Federal Prison in COVID-19 Pandemic Loan SchemeRead the Press Release
A former Cedar Rapids, Iowa, resident who helped other individuals procure more than 30 false and fraudulent COVID-19 pandemic loans, valued at more than $600,000, was sentenced on March 8, 2024, to six months in federal prison. Diamond Davies, age 24, from Maple Grove, Minnesota, received the prison term after a July 31, 2023 guilty plea to one count of wire fraud.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in late March 2020 that provided emergency financial assistance, including Paycheck Protection Program (“PPP”) loan funds, to the millions of Americans who were suffering the economic effects of the COVID-19 pandemic. Evidence at Davies’s plea and sentencing hearings showed that, over a two-month period in 2021, Davies helped to facilitate approximately 50 fraudulent PPP loan applications with a total value of approximately $1 million. Of these fraudulent PPP applications, over 30 were successful, and the government and its participating lenders in the PPP lost over $600,000. To obtain the fraud proceeds, false, fraudulent, and fictitious documents and statements, including fake tax documents, were submitted to various lending institutions in support of the PPP loans for the PPP applicants. Davies helped collect a fee (a portion of the fraudulent loan proceeds) from some of the PPP applicants.
Davies was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Davies was sentenced to six months’ imprisonment. She was ordered to make $651,582 in restitution to the Small Business Administration and one of its participating lenders. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department's response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Davies is being held in United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Small Business Administration, Office of the Inspector General and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-9.
Follow us on Twitter @USAO_NDIA.
Federal Jury Finds Large-Scale Pittsburgh Fentanyl Trafficker Guilty of Drug and Money Laundering OffensesRead the Press Release
PITTSBURGH, Pa. - After deliberating for three hours, a federal jury late on the afternoon of March 8, 2024, found Paris Carter guilty of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of acetyl fentanyl and conspiracy to commit money laundering, United States Attorney Eric G. Olshan announced today.
Carter, 34, formerly of Pittsburgh, Pennsylvania, was tried before United States District Judge Marilyn J. Horan in Pittsburgh.
Evidence introduced during the five-day trial established that, between January 2017 and February 2018, Carter arranged for the illegal importation of multiple kilograms of fentanyl and acetyl fentanyl directly from China and then distributed those drugs throughout the Pittsburgh region. Using the proceeds of his drug trafficking, Carter moved to Beverly Hills, California, where he rented two separate homes at costs of $10,000 and $14,500 per month and also leased three vehicles—two Bentleys and a Mercedes Benz. As part of his money laundering activity, Carter used other individuals to initiate financial transactions in their names to pay for the drugs obtained from China. He also provided drug proceeds to approximately seven other individuals who used these illicit funds to purchase cashier checks that Carter then used as downpayments on his vehicles, which he arranged to lease in the name of his aunt and co-defendant, Tamara Carter, whom the jury acquitted at trial.“Paris Carter flooded the Pittsburgh area with substantial quantities of fentanyl from China and lived large on the proceeds, moving to Beverly Hills and driving multiple Bentleys,” said U.S. Attorney Olshan. “Now, he faces a minimum sentence of 15 years’ imprisonment. We thank our law enforcement partners at the U.S. Postal Inspection Service and Pennsylvania State Police for their critical partnership in holding one of our region’s most significant fentanyl distributors accountable for his crimes.”
“The guilty verdict of Paris Carter was the culmination of years of tireless efforts by all of our law enforcement partners involved,” said Lesley Allison, Inspector in Charge of the Pittsburgh Division of the United States Postal Inspection Service. “Carter purchased kilos of fentanyl from China during the height of the opioid epidemic and used the proceeds to fund a lavish lifestyle with no regard to the health or safety of the American public. The U.S. Postal Inspection Service takes great pride in upholding our commitment to rid the U.S. Mail of these illicit and dangerous substances.”
During trial, the Court also was informed that Carter had previously been convicted in the Western District of Pennsylvania of a serious drug felony—namely, possession with the intent to distribute heroin, for which he was sentenced to 37 months of imprisonment in 2011.
Judge Horan scheduled sentencing for June 28, 2024. The law provides for a maximum total sentence of at least 15 years and up to life in prison, a fine of $20.5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Brendan T. Conway and Brendan J. McKenna prosecuted this case on behalf of the United States. The United States Postal Inspection Service and Pennsylvania State Police conducted the investigation of Carter.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Federal Jury Convicts Felon on Drug, Firearms ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Timothy Martinez, age 46, of Pueblo, was found guilty on one count of possession of methamphetamine with an intent to distribute, one count of possession of para-flurofentanyl with an intent to distribute, one count of carrying a firearm during and in relation to a drug trafficking crime, and one count of being a felon in possession of a firearm. A federal jury in Denver returned a guilty verdict against Martinez on Thursday, March 7, 2024.
According to the facts established at trial, Martinez was well known to the Pueblo Police Department. When he was arrested in July of 2023 on an unrelated active warrant, officers found a loaded semiautomatic handgun, fentanyl pills, methamphetamine, other drugs, and various types of ammunition. Martinez has prior felony convictions for aggravated battery, sex assault, failure to register as a sex offender, trespassing, domestic violence, controlled substance possession, and possession of a controlled substance with an intent to distribute.
“The Office of the United States Attorney in Colorado continues to work toward our goal of making our state safer by getting criminals like this off the streets,” said Cole Finegan, United States Attorney for the District of Colorado. “Once again, this type of conviction is made possible by effective, local, state, and federal partnerships.”
“The FBI is committed to working with local law enforcement to stamp out violent crime and protect our communities. Federal task forces augment local agencies with specialized investigative resources and open pathways for federal prosecution. That is what happened in this case worked by our Organized Crime Drug Enforcement Task Force with Pueblo Police” said FBI Denver Special Agent in Charge Mark Michalek. “This conviction should send a clear message that we will continue to pursue the most violent and persistent offenders and hold them accountable to the fullest extent of the law.”
United States District Court Judge Daniel D. Domenico presided over the jury trial. Martinez will be sentenced later.
The FBI conducted the investigation. Assistant United States Attorneys Aly Mance and Dustin Andre-Vandenberg handled the prosecution.
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.
Case Number: 23-CR-00347
Federal Judge Finds Man Guilty of Obstructing the Freedom of Access to a Clinic EntranceRead the Press Release
COLUMBIA, S.C. — Steven Clark Lefemine, 68, of West Columbia was found guilty yesterday of violating the Freedom of Access to a Clinic Entrances (FACE Act) by a federal judge following a bench trial. This is the first FACE Act conviction in South Carolina.
The FACE Act provides criminal penalties for blocking access to any facility that provides reproductive health care services, including abortions. Evidence presented during trial showed that on Nov. 15, 2022, Lefemine sat in front of the entrance to Planned Parenthood South Atlantic (PPSA) in Columbia and blocked access to the facility. Testimony provided by employees of PPSA indicated that the clinic provides a litany of reproductive services, including birth control, mental health counseling, pregnancy testing and planning, prenatal and postpartum services as well as abortion. PPSA staff is familiar with Lefemine because he frequently protests the operation of the clinic. PPSA staff members preserved the incident via video and audio recording. Lefemine elected to act as his own attorney during the case. During his testimony, he admitted blocking the doors to the clinic to prevent the clinic from performing abortions.
“We will protect South Carolinians’ right to peacefully protest, but we will also protect their right to access healthcare facilities,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Lefemine’s protest became unlawful when he physically prevented patients from entering Planned Parenthood.”
United States District Judge Joseph A. Anderson presided over the bench trial, which lasted one day. Lefemine faces a maximum penalty of six months in federal prison. He also faces a fine of up to $10,000, and one year of supervision to follow the term of imprisonment. Judge Anderson will sentence Lefemine after receiving and reviewing a sentencing report prepared by the U.S. Probation Office
This case was investigated by the FBI Columbia Field Office and the Columbia Police Department. Assistant U.S. Attorney T. DeWayne Pearson is prosecuted the case.
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Duwamish River Settlement Provides Benefits to Fish, Wildlife and Local CommunitiesRead the Press Release
Today the Elliott Bay Trustees announced a settlement with General Recycling of Washington LLC (General Recycling) and its affiliates – Nucor Steel Seattle Inc. and the David J. Joseph Company – related to natural resource injuries caused by hazardous contaminants released into Seattle’s Lower Duwamish River.
The Elliott Bay Trustees include the United States, on behalf of the National Oceanic and Atmospheric Administration (NOAA); the Department of the Interior represented by the U.S. Fish & Wildlife Service; the State of Washington, on behalf of the Department of Ecology and Department of Fish and Wildlife; the Muckleshoot Indian Tribe; and the Suquamish Indian Tribe of the Port Madison Reservation.
As part of the settlement, the companies will construct and maintain a habitat restoration project at the General Recycling facility, located on the west bank of the Lower Duwamish River. It will provide nearly three acres of off-channel habitat for fish and other wildlife and natural resources injured by contamination. This habitat will provide refuge areas and food sources for wildlife and various fish species, including juvenile salmon migrating from upriver spawning areas.
The settlement also requires the companies to reimburse a proportion of costs incurred by the Trustees to assess natural resource damages in the river totaling more than $360,000.
The settlement and project resolve claims alleged under federal and state laws for natural resource damages stemming from releases of oil and hazardous substances from the General Recycling facility.
“This settlement will provide critically needed habitat in the Lower Duwamish River that will provide significant benefits to important natural resources in the region,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“NOAA is pleased to join this agreement with our co-trustees, private partners and industry to help restore vital habitats, fisheries and wildlife injured by pollution at this site,” said Assistant Administrator Nicole LeBoeuf for NOAA’s National Ocean Service. “Clean and productive waterways are vital to Tribal and local communities for their cultural and economic well-being and this restoration will especially benefit those who have been disproportionately impacted by pollution.”
“This agreement marks an important step towards restoration of salmon habitat in the Duwamish River, which is essential for the recovery of salmon species and for the exercise of the treaty fishing rights of the Suquamish people as guaranteed by the 1855 Treaty of Point Elliott,” said Chairman Leonard Forsman of the Suquamish Tribe. “The Salish Sea, and the marine life that depend on it, are precious resources to the Suquamish people. We look forward to continued progress in reversing the damage done by years of pollution and destructive land use. With this settlement, and more that are on the way, we are beginning to see what restoration of habitat looks like, and that means strengthening our treaty fishery and our way of life.”
“This project on the Duwamish River will restore habitat for fish, wildlife and birds in a crucial estuarine environment,” said Washington State Supervisor Brad Thompson of the U.S. Fish & Wildlife Service. “It exemplifies what can be accomplished when partners come together to develop a common vision and then work side by side to realize that vision.”
“Ecology is pleased General Recycling and co-trustees have reached this settlement that will aid the recovery of the Lower Duwamish River, benefiting both wildlife and Washington residents,” said Natural Resource Trustee Michael L. Blanton for the Washington State Department of Ecology.
“The Washington Department of Fish and Wildlife fully supports this project that will restore valuable out-migrating juvenile salmonid habitat, while also removing a significant amount of shoreline armoring, shoreline debris, and creosote-treated pilings, a source of PAH contamination harmful to fish and wildlife,” said Trustee Representative Laura Arber for the Washington Department of Fish and Wildlife. “This rearing habitat, in a heavily industrialized area, will benefit multiple species including ESA listed juvenile salmonids in the Lower Duwamish estuary and bring us one step closer to salmon recovery.”
The Elliott Bay Trustees developed a Draft Restoration Plan and Environmental Assessment (RP/EA) analyzing the environmental benefits and impacts of the project, which is also subject to a 30-day comment period. A copy of the draft RP/EA is available here.
This settlement is part of a series of early settlements with polluting parties for natural resource damages in the Lower Duwamish River. More information about the Lower Duwamish River Natural Resource Damage Assessment is online at: https://darrp.noaa.gov/hazardous-waste/lower-duwamish-river.
Today’s settlement was filed by the Justice Department’s Environmental Enforcement Section in the U.S. District Court for the Western District of Washington. It is subject to a 30-day public comment period and court approval. To view and comment on the proposed Consent Decree, visit the department’s website: www.justice.gov/enrd/consent-decrees.
Dunn County Man Charged with Production of Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 12, 2024, a federal grand jury returned a two-count indictment alleging that Nicholas A. Viste (age: 26) of the City of Menomonie, Dunn County, Wisconsin, produced child sexual abuse material (“CSAM”) in violation of Title 18, United States Code, Section 2251(a).
According to the indictment, on August 6th and 7th of 2022, Viste employed, used, persuaded, and coerced a minor to take part in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. If convicted, Viste faces a mandatory 15 years’ imprisonment and up to 30 years’ imprisonment as to each count charged in the indictment.
This case was investigated by the City of Menomonie Police Department and the Manitowoc County Sheriff’s Office. Assistant United States Attorney Daniel R. Humble will prosecute the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer
(414) 297-1700
Drug Traffickers Sentenced for Importing Fentanyl and Methamphetamine from Mexico to Metro-AtlantaRead the Press Release
ATLANTA – Alba Ordoñez-Ordoñez has been sentenced to federal prison for conspiring to transport and distribute fentanyl disguised as oxycodone pills and methamphetamine, in Metro-Atlanta. Jose Guadalupe Canizales-Rivera was also sentenced for his role in assisting Ordoñez-Ordoñez with her methamphetamine operation.
“These sentences reflect the grave risks to public safety created by drug traffickers who disguise dangerous narcotics as legitimate medication,” said U.S. Attorney Ryan K. Buchanan. “We are grateful to our federal and local law enforcement partners for their collaboration in helping to keep our communities safer from deadly drugs like fentanyl and methamphetamine.”
“Together, we were able to prevent very dangerous drugs from reaching the streets. I’m proud to stand alongside our partner agencies as we work to stop these criminal enterprises that pollute our neighborhoods with their poison,” said Acting Special Agent in charge Anthony J. Patrone who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to work with our federal, state and local law enforcement partners to disrupt and dismantle these drug trafficking organizations and prevent them from flooding our communities with illicit drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: on February 17, 2021, U.S. Customs and Border Protection officers in Erlanger, Kentucky conducted a border search of a shipment bound for Georgia. The shipment, which contained an air conditioning unit, entered the United States from Mexico. The search revealed more than two kilograms of a white powder hidden inside the compressor of the air conditioner, which tested positive for methamphetamine.
Homeland Security Investigations special agents and task force officers in Atlanta made a controlled delivery of the drugs to the shipment’s intended destination, a residence in Norcross, Georgia. Alba Ordoñez-Ordoñez, who was accompanied by Jose Guadalupe Canizales-Rivera, arrived at the location and signed for the package. Ordoñez-Ordoñez and Canizales-Rivera were disassembling the air conditioner at the same time agents executed a search warrant at the residence. Inside the residence, agents discovered over 700 grams of crystal methamphetamine, a mailed package containing more than 4,000 pills with markings like oxycodone that actually contained lethal amounts of fentanyl, and drug trafficking paraphernalia.
Further investigation revealed that Ordoñez-Ordoñez had previously traveled to Texas to obtain and transport to her residence approximately 16 kilograms of methamphetamine. She then manufactured and crystalized this methamphetamine in her kitchen. During this process, she exposed her six-year-old daughter to the drug fumes, causing the child to become ill.Alba Ordoñez-Ordoñez, 43, of Honduras, was sentenced on March 12, 2024, by U.S. District Judge Steven C. Jones, to 138 months of imprisonment, followed by five years of supervised release.
Jose Guadalupe Canizales-Rivera, 33, of Mexico, was previously sentenced on August 9, 2022, to five years, three months in prison to be followed by five years of supervised release.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with invaluable assistance provided by U.S. Customs and Border Protection.Assistant U.S. Attorneys Calvin A. Leipold, III and Rebeca M. Ojeda prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Atlanta Strike Force is to disrupt, dismantle, and prosecute the highest-level members of international drug cartels and transnational criminal organizations that have operations in metro Atlanta and throughout the United States.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
District Man Admits Defrauding Covid-19 Tenant Assistance ProgramRead the Press Release
WASHINGTON – Ronald Allen, Jr., 54, of Washington, D.C., pleaded guilty today in Superior Court to one count of first-degree theft and one count of false statements for fraudulently obtaining and keeping $31,044 from a Covid-19 tenant assistance program, announced U.S. Attorney Matthew M. Graves and Daniel W. Lucas Inspector General for the District of Columbia.
At today’s plea hearing, Allen admitted that in July and September of 2021, he submitted false information on two separate applications to the Stronger Together by Assisting You (STAY DC) program, a DC government program established in 2021 to help cover rent and utilities for renters suffering hardship from the Covid-19 pandemic. Allen falsely stated that he had earned no income in 2020 or 2021, and falsely stated that his work had stopped because of the pandemic when, in fact, he maintained steady income during both years from several sources. Based on Allen’s false statements, the DC government sent Allen two checks, totaling $31,044, that Allen had promised to use to pay back rent and utilities. Allen admitted that he did not use any of that money to pay his outstanding rent obligations, or utilities, as required by the terms of the program, and instead spent all of the STAY DC money on luxury goods, travel, dining, and other personal expenses. As part of the plea agreement, Allen agreed to pay full restitution, in the amount of $31,044.
The Honorable Jason Park accepted Allen’s guilty plea and scheduled sentencing for May 3, 2024.
In announcing the guilty plea, U.S. Attorney Graves and Inspector General Lucas commended the work of those who investigated the case from the District of Columbia Office of the Inspector General. The case was prosecuted by Special Assistant U.S. Attorney Micah Bluming, on detail from the DC Office of the Attorney General to prosecute matters involving fraud and public corruption.
Detroit-Area Man Found Guilty of Maliciously Setting Fires to Truck Trailers of Major Commercial Trucking CompanyRead the Press Release
RIVERSIDE, California – A Michigan man was found guilty by a jury today of maliciously setting fires to six semi-trailers belonging to a major commercial trucking company in the Inland Empire and High Desert during a 10-month span.
Viorel Pricop, 66, of Allen Park, Michigan, was found guilty of six counts of arson of vehicle or property in interstate commerce. Pricop has been in federal custody since October 2022.
According to evidence presented at a 16-day trial, from December 2021 to September 2022, Pricop maliciously set fire to six semi-trailers belonging to Swift Transportation, a Phoenix-based commercial trucking company. Four of the arsons occurred in San Bernardino County (Newberry Springs, Ludlow, Barstow, and Hesperia) and two occurred in Riverside County (Coachella).
In each of the incidents, the Swift-owned trailer was parked at or near a truck stop when a fire occurred on the trailer portion of the vehicle, mainly on or near the trailer tires.
Pricop set on fire at least 18 additional Swift Transportation semi-trailers in other states from June 2020 to March 2022, according to an affidavit previously filed in this case. These incidents occurred at locations spanning from Barstow, California to McCalla, Alabama, with most incidents occurring along Interstate 10 and Interstate 40, the affidavit states. Federal criminal charges associated with some of these fires were filed against Pricop in the District of New Mexico and the District of Arizona.
“This defendant went on a rampage of retaliation against a victim of his last crime,” said United States Attorney Martin Estrada. “Rather than take advantage of the second chance offered to him, he chose an incredibly reckless and dangerous path. We will not accept arson and other violent crime on our streets, and I am grateful that this defendant will now be held to account.”
“We have methodically worked each of the fire scenes, collected evidence, interviewed witnesses, and reviewed video footage to help us solve these arson cases,” said Special Agent in Charge Brendan Iber of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Phoenix Field Division. “ATF’s certified fire investigators will continue to enforce federal laws pertaining to arson and support our state and local police and fire investigators.”
“Since beginning the work to solve this case, our arson investigators did a great job of looking at each fire to put the pieces together,” said New Mexico State Fire Marshal Randy Varela. “We know how important our partnerships with other agencies are, especially with a case that spans across multiple states, and we are proud of the work that we were able to do together to catch this arsonist.”
Swift Transportation hired a fire investigation consultant to assist with fire scene examinations. A pattern began to develop when multiple reports noted substantially similar methods of lighting the trailers on fire, including where on the vehicles the fires began, and the fact the fires occurred during the middle of the night.
A review of cell tower data near some of the fires showed that a specific device – later found to be a navigation device installed in a commercial tractor-style truck – connected to cell towers near many of the fires at or around the times of the fires. Law enforcement determined that this device was installed on a vehicle operated by Pricop. Law enforcement also identified the cellphone subscribed to Pricop and, after obtaining court authorization, obtained historical cellular data and real-time location information for Pricop’s cellphone. Analysis of this data showed that Pricop’s cellphone was present in the general area of all California fires, as well as the 18 additional fires across the country.
In September 2022, search warrants were executed on Pricop’s tractor-trailer, personal vehicle and residence, yielding additional evidence corroborating his involvement in this series of arsons. This evidence included a gas torch, torch-style lighters, and record keeping documents containing location information, such as cargo pickup and delivery dates which coincided with the time and location of several fires in the series of 24 fires across the country.
Swift Transportation and other trucking companies were victims of thefts between 2010 and 2014. Swift initiated its own investigation into those thefts and utilized bait trailers to catch thieves. In 2015, someone broke into one of the bait trailers and took boxes of electronic goods containing tracking devices. Swift investigators tracked those boxes to a storage facility in Michigan, and local law enforcement in Michigan arrested Pricop in possession of the boxes of electronic goods from the bait trailer.
Pricop was convicted in 2018 in the Eastern District of Michigan for a tax offense and for transportation of stolen goods, charges stemming from the investigation conducted by Swift. Pricop was sentenced to time served in that case, amounting to approximately 26 months’ imprisonment. His term of supervised release ended in June 2019, approximately one year before the arsons in this case began.
United States District Judge Sunshine S. Sykes scheduled a June 7 sentencing hearing, at which time Pricop will face a mandatory minimum sentence of five years in federal prison and a statutory maximum of 20 years in federal prison for each count.
ATF and the New Mexico State Fire Marshal’s Office investigated this matter.
Assistant United States Attorneys Cory L. Burleson, Sean D. Peterson and Mitchell M. Suliman of the Riverside Branch Office are prosecuting this case.