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23 April 2024
Readout of War Crimes Accountability Team Director and U.S. Special Prosecutor for the Crime of Aggression’s Visit to UkraineRead the Press Release
The Justice Department’s War Crimes Accountability Team (WarCAT) Director Christian Levesque and U.S. Special Prosecutor for the Crime of Aggression Jessica Kim traveled to Kyiv, Ukraine, from April 15 to 17, to reaffirm the department’s commitment in advancing accountability for atrocity crimes and Russian aggression against Ukraine. WarCAT Director Levesque and Special Prosecutor Kim were joined by the department’s Resident Legal Advisor posted in Kyiv, Jared Kimball, WarCAT Attorney Advisor Roman Chaban, and the FBI Legal Attaché in Kyiv, Christopher Geiger.
The trip continues the Justice Department’s extensive work supporting Ukraine, building on Attorney General Garland’s June 2022 announcement in Lviv, Ukraine, launching WarCAT to centralize and strengthen the Justice Department’s war crimes accountability efforts, and the June 2023 appointment of a U.S. Special Prosecutor for the Crime of Aggression to work closely with the International Centre for the Prosecution of the Crime of Aggression against Ukraine (ICPA) based at Eurojust in The Hague.
WarCAT Director Levesque, Ukraine Prosecutor General Andriy Kostin, Special Prosecutor Kim, and FBI Legal Attaché Geiger.
While in Kyiv, the delegation met with key Ukrainian counterparts and their staff on operational matters, including Prosecutor General Andriy Kostin, Head of the International Legal Cooperation Department Zurab Adeishvili, and Head of the War Crimes Department Yuriy Belousov; the National Police of Ukraine’s Head of the Department of Investigation Maksym Tsutskeridze, Head of the Division for Documentation of Crimes Committed in the Context of Armed Conflict Oleksandr Shapovalov, Head of the International Police Cooperation Department Ivan Hulpa, and Head of the International Communication Division Olha Yevtushenko; members of the Ukrainian Interagency Working Group, including military advisors; and officials from the Security Service of Ukraine. With these partners, WarCAT Director Levesque and Special Prosecutor Kim discussed ongoing investigations, information-sharing, and technical cooperation, as well as the various legislative, procedural, and technical challenges associated with such investigations and potential solutions.
U.S. delegation with officials of the National Police of Ukraine.
The delegation visited the International Criminal Court’s Field Office in Kyiv and met with partners from the Atrocity Crimes Advisory Group to increase partnership and coordination on the situation in Ukraine. They also met with U.S. Ambassador to Ukraine Bridget Brink and Deputy Chief of Mission Robert Needham, and provided an overview of the Justice Department’s Ukraine accountability efforts to U.S. Embassy Kyiv personnel.
On April 16, Special Prosecutor Kim, with ICPA Ukraine team members and military advisors, visited the Kyiv Scientific Research Institute of Forensic Expertise of the Ministry of Justice (KFI), a leading forensic examination institution. The KFI visit provided the opportunity to view weapons debris from recovered ballistic missiles, air-guided missiles, and unmanned aerial vehicles shot down by Ukrainian air defenses over Kyiv and other Ukrainian cities, as well as to receive expert briefings on analyses of weapon components and technologies to further the ICPA’s efforts in securing evidence of Russian aggression.
Special Prosecutor Kim, with ICPA Ukraine team members, receives analysis of weapons debris from recovered ballistic missiles at the KFI from Ukrainian forensic experts.
On April 17, Resident Legal Advisor Kimball, Special Prosecutor Kim (who previously served as the department’s anti-corruption Resident Legal Advisor for Eastern Europe), and FBI Special Agent Kari Harrison, a skilled anti-corruption investigator, delivered a roundtable workshop for prosecutors and investigators from the Specialized Anti-Corruption Prosecutor’s Office (SAPO) and National Anti-Corruption Bureau (NABU) at the U.S. Embassy in Kyiv. The workshop focused on using racketeering and organized crime statutes to combat high-level public corruption. SAPO and NABU workshop participants engaged in a robust discussion on special investigative techniques, covert and overt investigative steps, legislative and procedural options and barriers, and shared challenges in penetrating and dismantling organized criminal groups. The workshop was part of a series of anti-corruption efforts led by Resident Legal Advisor Kimball, with support from the Department of State’s Bureau of International Narcotics and Law Enforcement to ensure that the rule of law prevails in Ukraine.
FBI Special Agent Harrison, Kyiv Resident Legal Advisor Kimball, and Special Prosecutor Kim deliver an anti-corruption roundtable workshop for SAPO and NABU prosecutors and investigators at U.S. Embassy Kyiv.
During the trip, the group also visited several cultural and heritage sites in Kyiv – targets of Russian aggression – including Zoloti Vorota (Golden Gate), the main entrance into the ancient city of Kyiv; Independence Monument; and Maidan Nezalezhnosti (Independence Square), the central square of Kyiv, which was the site of the pro-independence protests in the 1990s, Orange Revolution in 2004, and Euromaidan Revolution in 2013 and 2014.
Ukrainian flags and photos honor fallen Ukrainian servicemembers in Maidan Nezalezhnosti (Independence Square), with Independence Monument in the background.
Throughout the visit, the delegation emphasized the department’s commitment in pursuing every avenue of accountability for Ukraine. Additionally, WarCAT Director Levesque and Special Prosecutor Kim further highlighted how the Justice Department, together with its international partners, will continue to hold accountable all those directly responsible or otherwise complicit in Russian aggression against Ukraine.
Ramsey Tax Preparer Sentenced to Prison for Tax CrimesRead the Press Release
ST. PAUL, Minn. – A Ramsey man has been sentenced to six months in prison followed by one year of supervised release and restitution for operating a tax preparation business as cover for a tax fraud scheme, announced United States Attorney Andrew M. Luger.
According to court documents, Lyle Nierenz, 70, ran tax preparation businesses—called Fast-R-Tax and Lyle’s Tax Service—out of his home in Ramsey, Minnesota. Nierenz prepared and filed numerous income tax returns falsely claiming that his clients had significant tax-deductible charitable contributions, unreimbursed employee expenses, or unreimbursed business expenses. taxNierenz did this without his clients’ knowledge or permission to fraudulently inflate their returns. He then diverted a portion of the inflated refunds to his personal bank accounts.
To avoid detection, Nierenz repeatedly made it appear that his clients self-filed their fraudulent returns. He also provided many of his clients with a doctored copy of their tax returns that matched the refund the client actually received. Between tax years 2014 and 2018, Nierenz’s fraudulent return scheme resulted in a tax loss of approximately $336,000. Nierenz also repeatedly failed to declare on his own tax returns the income he generated by charging his clients for tax preparation.
On July 28, 2021, Nierenz pleaded guilty to one count of aiding and assisting in the preparation of false tax returns and one count of making and subscribing a false tax return. He was sentenced yesterday in U.S. District Court by Judge Donovan W. Frank.
This case is the result of an investigation conducted by IRS Criminal Investigations and the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Jordan L. Sing and Joseph H. Thompson prosecuted the case.
Philadelphia Man Sentenced to 90 Months of Incarceration for Trafficking Three Firearms and Unlawfully Possessing a FourthRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Aaron Douglas, 31, of Philadelphia, PA, was sentenced today by United States District Judge Mark A. Kearney to 90 months’ imprisonment, followed by three years of supervised release, for illegally distributing three firearms and unlawful possession of a firearm by a felon.
Between January 12, 2023, and April 10, 2023, Douglas illegally obtained and sold three semi-automatic handguns in Philadelphia, trafficking a 9mm Smith & Wesson Model SW9VE firearm, a 9mm Beretta Model APX firearm, and a 9mm Glock Model 47 firearm. The FBI subsequently executed a search warrant at the defendant’s North Philadelphia residence and discovered that he unlawfully possessed a fourth firearm – a .45 caliber Glock Model 30 semi-automatic pistol – that he wasn’t permitted to have due to his previous conviction in 2015 for illegally possessing a firearm.
“Every illegal gun taken off the street is a small victory in our fight against violent crime,” said U.S. Attorney Romero. “Aaron Douglas, and others who illicitly traffic firearms, have no regard for the damage they’re doing to our communities. My office and our partners will continue to target the illegal gun trade in our investigations and prosecutions, reducing gun violence and hopefully saving lives in the process.”
“Today’s sentencing is one more step toward keeping illegally bought and resold weapons off the streets,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “This case illustrates our enduring commitment to making our neighborhoods safer for the communities we serve.”
“This case is another example of our cooperation with our law enforcement partners to keep guns out of the hands of felons and dangerous criminals,” said Eric DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Gun trafficking puts our communities at risk. It is also a federal offense that can land you in prison for years.”
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 Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Michael R. Miller.
Perry Man Sentenced to Serve 52 Years in Federal Prison After Forcing Woman to Drive to Texas Coast at GunpointRead the Press Release
Defendant sexually assaulted victim in her home and car during day-long crime spree
OKLAHOMA CITY – Today, ZACHARY CHARLES FOWLER, 24, of Perry, was sentenced to serve 624 months in federal prison for kidnapping, carjacking, and using a firearm in furtherance of those crimes, announced U.S. Attorney Robert J. Troester.
On September 6, 2022, a federal grand jury returned a three-count Indictment against Fowler, charging him with kidnapping, carjacking, and using and brandishing a firearm during and in relation to a crime of violence. In May 2023, Fowler was tried by a federal jury and found guilty on all counts.
At trial, the evidence showed that Fowler and the victim had previously been in a relationship. Following the end of that relationship, Fowler arrived at the victim’s home in the early morning of March 29, 2022. Fowler broke into the home of his victim, kicked in her bedroom door, wrestled control of a firearm owned by the victim, and sexually assaulted the victim at gunpoint.
The jury also heard testimony that Fowler forced the victim to leave her home at gunpoint and drive him to Corpus Christi, Texas. Throughout the drive, Fowler sexually assaulted the victim again. After arriving in Corpus Christi, the victim was able to escape. Fowler was arrested later the same day by law enforcement in Texas.
“The vile conduct of this defendant, and the trauma he forced upon his victim, are evidence of a clear and present danger in our community that necessitated swift and decisive punishment,” said U.S. Attorney Robert Troester. “While today’s steep penalty will not erase the damage done by Mr. Fowler, we hope it will serve as another step in the healing process for the victim and their family.”
“Today’s sentence completes the judicial process for Mr. Fowler, who forced his victim into a frightening situation that tormented her both physically and emotionally,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “While the trauma cannot be undone, we hope the victim and this community takes comfort in knowing a violent offender has been taken off our streets.”
At the sentencing hearing today, U.S. District Judge Scott L. Palk sentenced Fowler to serve 52 years in prison, followed by three years of supervised release. In announcing his sentence, Judge Palk noted the “horrific and terrifying” nature of the case and described Fowler’s behavior as “horrendous and dehumanizing”. Judge Palk also noted Fowler’s lack of acceptance of responsibility for his actions.
This case is the result of an investigation by the FBI Oklahoma City Field Office, the Noble County Sheriff’s Office, the Corpus Christi Police Department, and Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys Matthew P. Anderson and Jacquelyn M. Hutzell prosecuted the case.
Reference is made to public filings for additional information.
Owner of Burbank-Based Blood Testing Laboratory Indicted for Allegedly Evading the Payment of Nearly $5.8 Million in TaxesRead the Press Release
LOS ANGELES – A federal grand jury today indicted a Burbank man who allegedly evaded the payment of nearly $5.8 million in federal taxes over several years by using a shill to illegally collect Medicare reimbursement payments made to his blood-testing company.
Armen Muradyan, 58, is charged via indictment with one count of tax evasion. He has been in federal custody since his April 9 arrest at Los Angeles International Airport on a criminal complaint in this matter. Muradyan, a dual citizen of the United States and Armenia, was arrested prior to boarding a one-way flight whose ultimate destination was Armenia.
Muradyan’s arraignment is scheduled for April 29 in United States District Court in downtown Los Angeles.
According to court documents, Muradyan owned and operated a Burbank-based blood testing laboratory called Genex Laboratories Inc. Medicare and bank records show that Medicare paid millions of dollars in reimbursements to Genex for blood testing. The reimbursements were wired to bank accounts in the name of an individual identified in court documents as “L.S.” – Muradyan’s long-time friend to whom Muradyan had offered to pay $2,000 per month to pretend to be Genex’s owner.
Muradyan allegedly told L.S. that he needed him to submit Medicare enrollment papers to Medicare on Genex’s behalf because Medicare had banned Muradyan from submitting claims.
L.S. and Muradyan allegedly opened bank accounts for Genex in L.S.’s name, but which Muradyan controlled. L.S. neither owned nor operated Genex and visited the company’s Burbank office to collect his $2,000 monthly payment and to sometimes sign documents at Muradyan’s direction.
For the tax years of 2015 through 2020, Muradyan allegedly instructed L.S. to report Genex’s financial activity on L.S.’s personal income tax returns using documents that L.S. provided to his own tax preparer. The documents purportedly showed that Genex had minimal net profit or was operating at a loss, meaning the company had little or no income tax liability.
For the same period, Muradyan allegedly submitted income tax returns that reported none of Genex’s financial activity as his own and that he averaged an income of $40,000 per year. In fact, Muradyan allegedly personally received and used millions of dollars in Medicare reimbursements to support his own expensive lifestyle.
For these tax years, Muradyan’s unreported income was approximately $16,231,046, resulting in a total federal income tax due and owing by him of approximately $5,771,567, according to court documents.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS Criminal Investigation, the FBI, and the United States Department of Health and Human Services – Office of Inspector General are investigating this matter.
Assistant United States Attorney Mark Aveis of the Major Frauds Section and Trial Attorney Mahana K. Weidler of the Department of Justice’s Tax Division are prosecuting this case.
Orange County felon sentenced for federal firearms violationRead the Press Release
BEAUMONT, Texas – An Orange, Texas convicted felon has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Michael Octavius Hampton, 51, pleaded guilty on Oct. 4, 2023, to being a felon in possession of a firearm and was sentenced to 33 months in federal prison by U.S. District Judge Marcia Crone on April 23, 2024.
According to information presented in court, on June 26, 2023, Hampton visited a pawn shop in Orange where he was known by the employees as he frequently pawned various items such as tools. Hampton requested to purchase a pistol, provided his state-issued identification and completed the required ATF Form 4473. On the form, Hampton indicated he had never been convicted of a felony, a requirement to purchase a firearm. Hampton then signed the form acknowledging the information he provided was true and correct. The pawn shop submitted the form through the National Criminal Background Check System, also known as NICS, and received a message indicating the transaction was neither approved nor denied and pending further background checks. As required by law, the pawn shop did not transfer the firearm to Hampton due to the delayed status and Hampton left the store. On July 3, 2023, Hampton came back to the pawn shop to pick up the firearm that he had purchased. The NICS check was still in delayed status, however since the pawn shop had waited the required three days without a denial, the firearm was transferred to Hampton. Hampton again re-certified that his answers on the ATF 4473 Form were correct – including that he had not been previously convicted of a felony – by signing the form a second time. Hampton then took possession of the firearm, which was captured on video by the pawn shop.
Further investigation revealed Hampton was a convicted felon having been previously convicted of murder in Jefferson County in 1995 and prohibited by federal law from owning or possessing firearms or ammunition. Hampton was arrested by federal agents at his home on July 26, 2023, and the firearm was recovered.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.
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Non-profit embezzler sent to prison for stealing over $280,000 from employerRead the Press Release
HOUSTON – A 49-year-old former administrative assistant for the Katy Area Economic Development Council (KAEDC) has been sentenced for wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Janet Leigh Medrano aka Janet Jackson pleaded guilty Dec. 12, 2023.
U.S. District Judge Keith Ellison has now ordered Medrano to serve 27 months in federal prison to be immediately followed by three years of supervised release. Jackson was additionally ordered to pay restitution in the amount of $281,489.91. At the hearing, the court heard testimony from a KAEDC representative about how Medrano’s theft left the non-profit organization on the brink of bankruptcy. In handing down the sentence, Judge Ellison noted that this was not an appropriate case for leniency. Medrano attempted to excuse her conduct by claiming she had difficulty providing for her family. Judge Ellison dismissed the claim by stating he had heard from thousands of individuals with much more desperate financial situations.
From 2014 to 2019, Medrano worked as an administrative assistant for KAEDC. Beginning in 2016 until her termination in 2019, Medrano stole from the organization using four different schemes. When KAEDC confronted Medrano, she attempted to hide her crime by providing altered bank statements to cover the ongoing theft.
Further investigation revealed Medrano was not telling the truth and had stolen over $280,000 from KAEDC.
Medrano was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Christine Lu prosecuted the case.
New York Man Charged with Child Exploitation OffensesRead 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, announced that a federal grand jury in New Haven returned an indictment today charging NICOLAS BROWN, also known as “Breezy,” 28, of New York, New York, with child exploitation offenses.
As alleged in court documents, on multiple occasions in March 2024, Brown arranged Uber trips to pick up one to three teenage girls, two of whom were under the age of 18, from a state-run group home in Connecticut and deliver them to him at various Connecticut hotels and shopping malls where he engaged in explicit sexual conduct with one of the minor victims. On one occasion, an Uber trip that Brown arranged took the two minors to meet him at the Bridgeport train station. Brown and the two minors traveled to Manhattan, and then to a hotel in South Hackensack, New Jersey, where they stayed for several days.
On March 20, 2024, Brown was located at a hotel in Danbury and arrested on state charges. It is alleged that an iPhone seized from Brown at the time of his arrest revealed videos depicting child sex abuse, including videos that that he took engaging in sexually explicit conduct with a minor victim.
The indictment charges Brown with production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and with possessing and accessing with intent to view child pornography, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Brown has been detained in state custody since his arrest.
This matter is being investigated by the Federal Bureau of Investigation, the West Hartford Police Department, and the Danbury Police Department, with the assistance of the Connecticut Department of Children and Families. The case is being prosecuted by Assistant U.S. Attorney Christopher Lembo.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
New Orleans Man Sentenced for False Statements on an Individual Tax ReturnRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that CHRISTOPHER COBURN (“COBURN”), age 51, of New Orleans, was sentenced for making false statements on an individual tax return, in violation of Title 26, United States Code, Section 7206(1).
According to court documents, COBURN owned and operated a tax preparation business called 1040 Tax Express in New Orleans. For tax years 2016 through 2018, COBURN willfully under-reported his income from this tax preparation business by approximately $104,156 on his individual tax returns. This underreporting caused a loss of approximately $29,781 to the Internal Revenue Service.
U.S. District Judge Darrell James Papillion sentenced COBURN to five years of probation and ordered him to complete 100 hours of community service. Judge Papillon also ordered COBURN to pay $29,781.00 in restitution to the Internal Revenue Service and along with a $100 mandatory special assessment fee. COBURN also agreed to a permanent injunction prohibiting him from preparing, assisting in, directing, or supervising the preparation or filing of federal tax returns on behalf of others.
The U.S. Attorney’s Office would like to acknowledge the work of the Internal Revenue Service Criminal Investigations on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
Multimillion-dollar unlicensed money transmitter convictedRead the Press Release
HOUSTON – A federal jury has returned a guilty verdict against an Iraqi citizen who resided in Richmond for operating a money transmitting business without a license, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for less than one hour before finding Sameer Sami Rasheed Al Salman, 55, guilty on one count of unlicensed money remitting following a two-day trial.
During the trial, the jury heard evidence about Salman’s money transmitting business, which he operated at his residence in Richmond. Since 2020, Salman transferred and wired millions of dollars from bank accounts in the United States to ones all over the world including China, Indonesia and India.
The jury heard testimony about how Salman offered his services locally and performed informal hawala transactions, a method of transferring money without using the banking system. Salman conducted these transfers which amounted to thousands of dollars from his driveway and required individuals to show their identification. Many transfers originated from Iraq and some transfers were up to $40,000.
Authorities identified Salman’s illegal money transmitting operation after extensive surveillance and conducted a search of his residence. At that time, they discovered over $282,000 in cash stored within the house.
At the trial, the defense attempted to convince the jury Salman had lawful authority to operate a money transfer business in Iraq. The jury did not believe those claims and found him guilty as charged.
“Money flowed from Iraq through Houston thanks to Rasheed Al Salman’s illegal money transmitting business, a business he conducted from his home’s driveway and without a license,” said Hamdani. “Hawala operators like Salman pose a real threat to banking systems because they undermine the oversight and regulation of significant money transfers - transfers that when unregulated, often end up in the coffers of international criminal organizations.”
U.S. District Judge Sim Lake presided over the trial and set sentencing for Aug. 16. At that time, Salman faces up to five years in federal prison and a possible $250,000 maximum fine.
FBI conducted the investigation. Assistant U.S. Attorneys Heather Winter and Steven Schammel are prosecuting the case.
Monroe, Washington, resident convicted for role in wide-ranging drug trafficking ringRead the Press Release
Seattle – A 42-year-old Monroe, Washington resident was convicted today in U.S. District Court in Seattle of Conspiracy to distribute controlled substances following a week-long jury trial, announced U.S. Attorney Tessa M. Gorman. Humberto Garcia was arrested in December 2020 with seven other defendants tied to a drug trafficking ring distributing heroin, methamphetamine, and fentanyl throughout the Puget Sound region. The jury deliberated about two hours before reaching the guilty verdict. U.S. District Judge Richard A. Jones scheduled sentencing for August 16, 2024.
According to records filed in the case and testimony at trial, Garcia’s car was searched on October 3, 2020, after drug ringleader Jose Luis Ibarra-Valle, 40, was pressuring Garcia to get him a firearm to kill a drug user who owed him money. No firearm was found, but Garcia had drugs hidden in a fake soda can in the car. A few weeks later, Ibarra-Valle was stopped returning from a drug run to California. In the car authorities found approximately 10,000 pills that contained fentanyl, more than eight kilograms of methamphetamine, and more than a kilogram of heroin. These drug amounts count towards Garcia’s conviction as part of the conspiracy.
Ibarra-Valle and the other coconspirators entered guilty pleas. Last year, Ibarra-Valle was sentenced to nine years in prison. The remaining coconspirators have been sentenced, with a range of sentences from time served, to over six years in prison. Garcia is the final defendant in this case and the only one who went to trial.
Over the course of the investigation law enforcement seized 16,000 suspected fentanyl pills, 30 pounds of suspected methamphetamine, and six pounds of suspected heroin.
In his closing statement, Assistant United States Attorney Michael Harder pointed to numerous wiretapped phone conversations between Garcia and drug supplier Ibarra-Valle. “They were setting up a working relationship,” Harder said, Garcia wanted to be “his right-hand man.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
The investigation was led by the Drug Enforcement Administration in partnership with the Federal Bureau of Investigation, Homeland Security Investigations, Whatcom Gang and Drug Task Force, Washington State Patrol, Snohomish Regional Drug Task Force, United States Border Patrol, Customs and Border Protection, Skagit County Interlocal Drug Enforcement Unit, the Whatcom County Sheriff’s Office, the Lake Stevens Police Department and Tulalip Police Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Michael Harder.
Missouri Woman Admits Theft of Federal Retirement BenefitsRead the Press Release
ST. LOUIS – A Missouri woman on Tuesday admitted taking more than $75,000 in retirement benefits to which she was not entitled after the death of her mother-in-law.
Ronda G. Oswalt, 58, of Marion County, near Hannibal, Missouri, pleaded guilty in U.S. District Court in St. Louis to one felony count of theft of government money.
As part of her guilty plea, Oswalt admitted that she failed to notify the U.S. Office of Personnel Management about the death of her mother-in-law in December 2018. After the death, federal retirement benefits continued to be automatically deposited into her mother-in-law’s credit union account. Oswalt admitted using that money to cover personal expenses, including by writing checks to herself and paying personal bills. In total, Oswalt took $75,734 in federal retirement benefits between December 2018 and November 2021 to which she was not entitled, her guilty plea says.
Oswalt is scheduled to be sentenced July 25. The theft charge is punishable by up to 10 years in prison, a fine of up to $250,000, or both prison and a fine.
The Office of Personnel Management Office of Inspector General investigated the case. Assistant U.S. Attorney Justin Ladendorf is prosecuting the case.
Minneapolis Man Sentenced to 192 Months in Prison for Receiving, Distributing, and Accessing Child Pornography OnlineRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 192 months in prison, followed by a lifetime of supervised release, for receipt, distribution, and access with intent to view child pornography, announced U.S. Attorney Andrew M. Luger.
According to court documents and the evidence presented at trial, beginning in August 2020, through January 2022, Michael Francis Hamer, 56, knowingly and frequently obtained, distributed, and accessed child pornography online. On multiple occasions, he used Facebook and Gmail to directly message self-identified minor victims, some as young as 11 years old, to request and distribute images and videos depicting the sexual abuse of minors. Hamer also joined Facebook Messenger group chats that were named “Boys sex video,” “Kids Video Sex,” and “#Good Boy?,” among others, to solicit and access child sexual abuse images.
Hamer was previously convicted in Minnesota state court for solicitation of a child to engage in sexual conduct. As a result of this state conviction, Hamer was required to register as a predatory offender with the Minnesota Bureau of Criminal Apprehension. Additionally, Hamer admitted to possessing child pornography during his 2012 conviction.
Hamer was convicted by a federal jury on December 7, 2023, of one count of receipt of child pornography, one count of distribution of child pornography, and two counts of access with intent to view child pornography. He was sentenced today in U.S. District Court before Judge Katherine M. Menendez, who described Hamer’s conduct as “relentless behavior,” and noted that there was long-term damage to the victims depicted in the child sexual abuse material. Judge Menendez also remarked that reviewing one of the child sexual abuse videos at trial “is something I can never unsee,” and that it was something “the jury can never unsee” as well.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, with assistance from the Minneapolis Police Department and Homeland Security Investigations. It was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorneys Hillary A. Taylor, Emily A. Polachek, and Chelsea A. Walcker prosecuted the case.
Member of Violent New Haven Gang Pleads Guilty to Racketeering ChargeRead the Press Release
SAMUEL DOUGLAS, also known as “Blamm,” 25, of New Haven, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in New Haven to a racketeering offense stemming from his role in a violent New Haven street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating an ongoing gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Douglas and other members of the Exit 8 gang engaged in drug trafficking, used, and shared firearms, and, since June 2018, have committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
Douglas pleaded guilty to conspiracy to engage in a pattern of racketeering activity, and specifically admitted that on June 16, 2018, he and another Exit 8 member shot at and attempted to kill a member and associate of a rival gang in the area of Fountain Street, Davis Street, and Lakeview Terrace in New Haven. In the shooting, the intended victim’s associate suffered seven gunshot wounds, but survived the attack. Investigators found 15 spent ammunition casings at the scene.
Judge Bolden scheduled sentencing for August 6, at which time Douglas faces a maximum term of imprisonment of 20 years. He is currently detained.
This investigation is being conducted by ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens, Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. 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.
Manhattan Man Pleads Guilty to Possessing and Intending to Distribute CocaineRead the Press Release
ALBANY, NEW YORK – William De La Rosa, age 29, of New York, New York, pled guilty yesterday to possessing with intent to distribute one kilogram of cocaine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
De La Rosa admitted to driving to a hotel in Amsterdam, New York, on January 25, 2024, where he planned to distribute one kilogram of cocaine to another person. When he arrived, law enforcement searched his vehicle and discovered the cocaine.
De La Rosa faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of post-release supervision of between 4 years and life, when United States District Judge Anne M. Nardacci sentences him on August 16, 2024. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The DEA and the Johnstown Police Department investigated the case. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.
Louisville Man Indicted for Controlled Substances Conspiracy, Heroin, and Fentanyl Trafficking Offenses and Money LaunderingRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on April 17, 2024, charging a Louisville man with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute heroin and fentanyl, and money laundering.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of the Homeland Security Investigations Nashville and Acting Special Agent in Karen Wingerd of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office made the announcement.
According to the indictment, Garron Board, 39, was charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute heroin, possession with intent to distribute fentanyl, and laundering of monetary instruments. These offenses occurred between March 24, 2023, and April 4, 2024.
The defendant made his initial court appearance last week before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. The Court ordered the defendant detained pending trial. If convicted, Board faces a mandatory minimum sentence of 10 years and up to life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by HSI and IRS-CI.
Assistant U.S. Attorney Alicia P. Gomez is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Local pharmacist charged with attempted sex trafficking of a minor and child sex tourismRead the Press Release
MIAMI – On April 19, a local pharmacist was charged by criminal complaint with attempted sex trafficking of a minor and attempted travel to engage in illicit sexual conduct.
According to the criminal complaint and the underlying affidavit, law enforcement officers stopped Stefan Andres Correa, 42, of Miami, Florida, attempting to board a flight from Miami to Bogota, Colombia. It is alleged that, law enforcement officers discovered nine cellular phones in Correa’s possession containing videos of Correa engaging in intercourse with purported minor children, as well as a chat exchange with a suspected sex trafficker, where Correa allegedly paid for commercial sex with children aged between 10 to 12 years old in Colombia. According to the allegations, during the chat exchange, Correa agreed with the suspected sex trafficker to meet with the minor victims once he arrived in Colombia.
Correa made his initial appearance on April 19. A detention hearing is scheduled for today, April 23, at 10:00 a.m. If convicted, Correa faces a mandatory minimum sentence of 15 years in prison with a maximum sentence of life in prison as well as up to a lifetime of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami made the announcement.
HSI Miami investigated the case with assistance from HSI offices in Cleveland, Ohio, and Bogota, Colombia, as well as U.S. Customs and Border Protection (CBP). The Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogota, Colombia, also provided critical assistance. Assistant U.S. Attorney Lauren Astigarraga-Little is prosecuting it.
A criminal complaint contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate better, 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.
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 report online child sexual exploitation visit https://report.cybertip.org/ or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children (NCMEC) in partnership with HSI and other law enforcement agencies.
To learn more about the National Resource 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 24-mj-02786.
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Lawton Pair Plead Guilty to Murder and Accessory to Murder after Woman's Body is Found in Wildlife RefugeRead the Press Release
OKLAHOMA CITY – Yesterday, TEVIN TERRELL SEMIEN, 29, of Lawton, pleaded guilty to second-degree murder and illegal possession of a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On October 17, 2023, a federal grand jury returned a four-count Indictment against Semien and co-defendant Nicole Leigh Logsdon, 24, also of Lawton. The Indictment charged Semien with one count of first-degree premeditated murder, one alternative count of second-degree murder, and one count of illegally possessing a firearm after a previous felony conviction. Logsdon was separately charged with accessory after the fact to murder.
According to an affidavit filed in support of a criminal complaint against Semien, on May 17, 2023, Karon “Dinkers” Conneywerdy Smith, 68, was found dead in the Wichita Mountains Wildlife Refuge. Investigators searched Smith’s home, which was within Indian Country, and observed blood consistent with a violent struggle. Smith’s vehicle was missing as well. On May 21, 2023, Texas law enforcement observed Smith’s vehicle driving south of Dallas, Texas. Officers attempted to pull the vehicle over, but the vehicle fled at a high speed and eventually crashed into a lake. The two occupants of the vehicle, later identified as Semien and Logsdon, attempted to flee on foot but were apprehended.
Yesterday, Semien pleaded guilty to second-degree murder and being a felon in possession of a firearm. As part of his plea, Semien admitted to deliberately and intentionally killing Smith.
On January 10, 2024, Logsdon pleaded guilty to accessory after the fact to murder and admitted to helping Semien in his attempt to avoid arrest and prosecution.
At sentencing, Semien faces up to life in federal prison and Logsdon faces up to 15 years in federal prison.
This case is in federal court because Smith and Logsdon are enrolled members of the Comanche Nation and the murder occurred within Indian Country.
This case is a result of an investigation by the FBI Oklahoma City, Dallas, and New Orleans field offices; the Oklahoma State Bureau of Investigation; the U.S. Fish and Wildlife Service; the Comanche Nation Police Department; the Comanche County Sheriff’s Office; the Lawton Police Department; the U.S. Marshals Service; the Rice, Texas Police Department; and the Navarro County, Texas Sheriff’s Office. Assistant U.S. Attorney Mark R. Stoneman is prosecuting this case.
The case furthers the Department of Justice’s Missing or Murdered Indigenous Persons efforts to address violence against Native American individuals. More information about this initiative is at https://www.justice.gov/tribal/mmip.
Reference is made to public filings for more information.
Lake County Convicted Felon Sentenced to Two Years in Federal Prison for Possession of A FirearmRead the Press Release
Ocala, Florida – United States District Judge Thomas P. Barber has sentenced Tyran Terrell Harris (24, Leesburg) to two years in federal prison for possession of a firearm by a convicted felon. Harris entered a guilty plea on February 7, 2024.
According to the court records, Harris has multiple prior state felony convictions including grand theft, tampering with a witness, and grand theft auto. On September 25, 2023, officers from the Leesburg Police Department observed Harris walking around an apartment complex with a loaded firearm. Knowing Harris was a convicted felon from previous interactions with him, the officers arrested Harris and took possession of the firearm. A record check showed the firearm had been reported stolen approximately two weeks earlier. Harris subsequently admitted to the officers that he knew he could not possess the firearm as a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Leesburg Police Department. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Justice Department to Monitor Polls in Pennsylvania for Compliance with Federal Voting Rights LawsRead the Press Release
WASHINGTON – The Justice Department announced that it is monitoring today’s election in Berks, Luzerne and Philadelphia Counties, Pennsylvania, to ensure compliance with federal voting rights laws.
The Civil Rights Division enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The division regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the division also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
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Justice Department Reaches Civil Settlement with Victims Abused by Lawrence NassarRead the Press Release
The Justice Department announced today that it has settled 139 administrative claims arising from allegations of sexual abuse committed by former physician and USA Gymnastics official Lawrence Gerard Nassar.
Over the course of nearly two decades and ending in 2016 when he was arrested by the State of Michigan, Nassar sexually abused hundreds of victims under the guise of performing medical treatments. These settlements will resolve administrative claims against the United States alleging that the FBI failed to conduct an adequate investigation of Nassar’s conduct. In July 2021, the Department’s Office of the Inspector General issued a report critical of certain aspects of the FBI’s response to, and investigation of, allegations against Nassar.
“For decades, Lawrence Nassar abused his position, betraying the trust of those under his care and medical supervision while skirting accountability,” said Acting Associate Attorney General Benjamin C. Mizer. “These allegations should have been taken seriously from the outset. While these settlements won’t undo the harm Nassar inflicted, our hope is that they will help give the victims of his crimes some of the critical support they need to continue healing.”
The settlement agreements, which have been approved by the Department, resolve 139 claims for a total of $138.7 million to be distributed to claimants.
Note: The headline of this press release has been updated to remove the characterization of the number of settlements.
Justice Department Dedicates “Faces of Gun Violence” Exhibit at ATF’s Inaugural Gun Violence Survivors’ SummitRead the Press Release
Attorney General Merrick B. Garland and Director Steven M. Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) dedicated a new “Faces of Gun Violence” exhibit today at a ceremony hosted during ATF’s Inaugural Gun Violence Survivors’ Summit. The exhibit honors and memorializes those whose lives have been tragically lost to gun violence.
“As we remember those we have lost to gun violence, the Justice Department promises that we will strive every single day to honor their lives in our work,” said Attorney General Merrick B. Garland. “We promise that we will not rest until every family, every law enforcement agent, and every community is safe from the devastation of gun violence. As our dedicated ATF agents pass by the ‘Faces of Gun Violence’ exhibit every day, it will stand as a powerful monument to those they are fighting for.”
“Today, survivors of gun violence, including those in law enforcement, came together to tell their stories and engage in important discussions about preventing gun violence, which continues to devastate families and communities across the country,” said Deputy Attorney General Lisa Monaco. “I thank the women and men of ATF for the work they do every day to keep our communities safe and for convening this Summit. And I’m especially grateful to today’s participants who have lost loved ones to gun violence and who honor their memories by fighting for a better, safer future.”
“The ‘Faces of Gun Violence’ exhibit is a permanent reminder of what ATF comes to work to do every day — a reminder of why agents risk their lives and why everyone at ATF dedicates their careers to this mission: to honor the fallen and protect the living,” said ATF Director Dettelbach. “This exhibit both honors and tells the stories of the victims of firearms violence. And it reminds us to keep front and center the lives, the stories, and the courage of those who have been impacted by firearms violence.”
The “Faces of Gun Violence” exhibit consists of a wall and digital kiosk. The wall consists of 118 photos of people who have been killed by gun violence in, among other incidents, mass casualty events, such as school shootings; community shootings; domestic violence shootings, and by suicide. The photographs on the wall will stay up for one year, until another 118 photographs take their place at next year's Gun Violence Survivors' Summit.
Alongside the wall is the digital kiosk, which contains the same photographs with accompanying short biographies for each person. The kiosk will remain for the foreseeable future, and new photos and bios will be added after each year’s dedication on a rolling basis as they are submitted.
The dedication was the final event of the day, concluding ATF’s Inaugural Gun Violence Survivors’ Summit, which brought together more than 200 survivors of gun violence, members of law enforcement, U.S. Attorneys, health care professionals, and victim advocates. The Summit included remarks by Deputy Attorney General Monaco and San Diego District Attorney Summer Stephan, as well as a number of panel discussions that focused on experiences of survivors of gun violence, firearms and domestic violence, law enforcement as survivors, and the effects of secondary trauma.
By sharing experiences, discussing the toll gun violence takes on lives, and learning about ATF’s mission and efforts to respond and prevent violent crime, the Summit increased understanding and transparency.
Justice Department Charges Four Iranian Nationals for Multi-Year Cyber Campaign Targeting U.S. CompaniesRead the Press Release
An indictment was unsealed today in Manhattan federal court charging Iranian nationals Hossein Harooni (حسین هارونی), Reza Kazemifar (رضا کاظمی فر), Komeil Baradaran Salmani (کمیل برادران سلمانی), and Alireza Shafie Nasab (علیرضا شفیعی نسب) for their involvement in a cyber-enabled campaign to compromise U.S. government and private entities, including the U.S. Departments of Treasury and State, defense contractors, and two New York-based companies. Nasab was charged for the same conduct in a previous indictment that was unsealed on Feb. 29. The defendants remain at large.
Concurrent with today’s unsealing, the U.S. Department of State’s Rewards for Justice program (RFJ) is offering a reward of up to $10 million for information leading to the identification or location of the group and the defendants. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act (CFAA). Additionally, the Treasury Department announced sanctions against the four defendants, among other malicious cyber actors.
“Criminal activity originating from Iran poses a grave threat to America’s national security and economic stability,” said Attorney General Merrick B. Garland. “These defendants are alleged to have engaged in a coordinated, multi-year hacking campaign from Iran targeting more than a dozen American companies and the U.S. Treasury and State Departments. This case represents just one part of the U.S. government’s effort to counter the range of threats originating from Iran that endanger the American people.”
“The FBI is constantly working to detect and counter cyber campaigns like the one described in today’s indictment. From enabling lethal plots and repressing our citizens and residents to targeting our critical infrastructure, we’ve often seen the trail of dangerous cyber-criminal activity lead back to Iran,” said FBI Director Christopher Wray. “Today’s announcement demonstrates the FBI’s commitment to using every lawful tool at our disposal, together with our domestic and international partners, to disrupt the threats posed from Iran to American businesses and citizens.”
“Today’s charges pull back the curtain on an Iran-based company that purported to provide ‘cybersecurity services’ while in actuality scheming to compromise U.S. private and public sector computer systems, including through spearphishing and social engineering attacks,” said Assistant Attorney General Matthew G. Olsen of the Department of Justice’s National Security Division. “The Department is committed to using a whole of government approach to disrupt such malicious activities and impose consequences on the individuals that carry them out. Employees that continue to work at these companies risk arrest and prosecution or a lifetime as an international fugitive from justice.”
“As alleged, the defendants participated in a cyber campaign using spearphishing and other hacking techniques in an attempt to compromise private companies with access to defense-related information,” said U.S. Attorney Damian Williams for the Southern District of New York. “Cyber intrusion schemes such as the one alleged threaten our national security, and I’m proud of our law enforcement partners and the career prosecutors of this office for continuing to use innovative technologies and investigative measures to disrupt and track down these cybercriminals. If you have information leading to the to the identification or location of Harooni, Kazemifar, Salmani, or Nasab, please reach out to the Department of State at rewardsforjustice.net.”
According to court documents, from at least in or about 2016 through at least in or about April 2021, Harooni, Kazemifar, Salmani, Nasab, and other conspirators were members of a hacking organization that participated in a coordinated multi-year campaign to conduct and attempt to conduct computer intrusions. These intrusions targeted more than a dozen U.S. companies and the U.S. Departments of Treasury and State.
During the conspiracy, Kazemifar, Salmani, and Nasab were employed by Mahak Rayan Afraz (محک رایان افراز), an Iran-based company that purported to provide cybersecurity services, but which was, in fact, a front for the conspirators’ operations.
The hacking group’s private sector victims were primarily cleared defense contractors, which are companies that have been granted security clearances by the U.S. Department of Defense to access, receive, and store classified information for the purpose of conducting activities in support of U.S. Department of Defense programs. In addition, the group targeted a New York-based accounting firm and a New York-based hospitality company.
In conducting their hacking campaigns, the group used spearphishing — tricking an email recipient into clicking on a malicious link — to infect victim computers with malware. During their campaigns against one victim, the group compromised more than 200,000 employee accounts. In another campaign, the conspirators targeted 2,000 employee accounts. In order to manage their spearphishing operations, the group created and used a particular computer application that enabled the conspirators to organize and deploy their spearphishing attacks.
In the course of these spearphishing attacks, the conspirators compromised an administrator email account belonging to a defense contractor (Defense Contractor-1). Access to this administrator account empowered the conspirators to create unauthorized Defense Contractor-1 accounts, which the conspirators then used to send spearphishing campaigns to employees of a different defense contractor and a consulting firm.
In addition to spearphishing, the conspirators utilized social engineering, which involved impersonating others, generally women, to obtain the confidence of victims. These social engineering contacts were another means the conspiracy used to deploy malware onto victim computers and compromise those devices and accounts.
Kazemifar was responsible for testing the tools utilized by the conspiracy to execute its cyber campaigns. For example, Kazemifar was involved in testing spearphishing emails used to target victim companies and was involved in developing malware utilized by the conspiracy in social engineering initiatives. During the course of his involvement in the conspiracy, from at least in or about 2014 through at least in or about 2020, Kazemifar also worked for the Iranian Organization for Electronic Warfare and Cyber Defense (EWCD). EWCD is a component of the Islamic Revolutionary Guard Corps (IRGC), which is itself a component of the Iranian Armed Forces. Among other things, the IRGC is responsible for Iran’s offensive cyber capabilities. The United States has designated the IRGC as a foreign terrorist organization.
Harooni was responsible for procuring, administering, and managing the online network infrastructure, including computer servers and customized software used to facilitate the computer intrusions. Harooni also fraudulently used the identity of a real person (Individual-1), including his use of a copy of Individual-1’s true passport, to conceal his role in procuring online infrastructure used by the conspiracy to facilitate the computer intrusion campaign.
Salmani was responsible for testing tools utilized by the conspiracy to execute spearphishing campaigns, including the campaign against a hospitality company. Salmani was also involved in maintaining infrastructure used by the conspirators.
Nasab was responsible for procuring infrastructure used by the conspiracy, particularly infrastructure used in furtherance of social engineering campaigns. Nasab also used Individual-1’s identity, including Individual-1’s name and passport, to register server and email accounts that were used during malicious cyber campaigns.
The defendants are each charged with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and wire fraud. If convicted, they face up to five years in prison for the computer fraud conspiracy, and up to 20 years in prison for each count of wire fraud and conspiracy to commit wire fraud. Harooni is additionally charged with knowingly damaging a protected computer, which carries a maximum penalty of 10 years in prison. Harooni, Salamani, and Nasab are additionally charged with aggravated identity theft, which carries a mandatory consecutive term of two years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Cyber Division is investigating the case.
Assistant U.S. Attorneys Ryan B. Finkel, Dina McLeod, and Daniel G. Nessim for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentJustice Department Announces Charges Against Four Iranian Nationals for Multi-Year Cyber Campaign Targeting U.S. CompaniesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; and James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, announced today the unsealing of an Indictment charging Iranian nationals HOSSEIN HAROONI (حسین هارونی), REZA KAZEMIFAR (رضا کاظمی فر), KOMEIL BARADARAN SALMANI (کمیل برادران سلمانی), and ALIREZA SHAFIE NASAB (علیرضا شفیعی نسب) for their involvement in a cyber-enabled campaign to compromise U.S. government and private entities, including the U.S. Departments of Treasury and State, defense contractors, and two New York-based companies. The case has been assigned to U.S. District Judge Mary Kay Vyskocil. NASAB was charged for the same conduct in a previous Indictment that was unsealed on February 29, 2024. The defendants remain at large.
U.S. Attorney Damian Williams said: “As alleged, the defendants participated in a cyber campaign using spearphishing and other hacking techniques in an attempt to compromise private companies with access to defense-related information. Cyber intrusion schemes such as the one alleged threaten our national security, and I’m proud of our law enforcement partners and the career prosecutors of this Office for continuing to use innovative technologies and investigative measures to disrupt and track down these cybercriminals. If you have information leading to the to the identification or location of Harooni, Kazemifar, Salmani, or Nasab, please reach out to the Department of State at rewardsforjustice.net.”
Attorney General Merrick B. Garland said: “Criminal activity originating from Iran poses a grave threat to America’s national security and economic stability. These defendants are alleged to have engaged in a coordinated, multi-year hacking campaign from Iran targeting more than a dozen American companies and the U.S. Treasury and State Departments. This case represents just one part of the U.S. government’s effort to counter the range of threats originating from Iran that endanger the American people.”
FBI Director Christopher A. Wray said: “The FBI is constantly working to detect and counter cyber campaigns like the one described in today’s indictment. From enabling lethal plots, and repressing our citizens and residents, to targeting our critical infrastructure, we’ve often seen the trail of dangerous cyber-criminal activity lead back to Iran. Today’s announcement demonstrates the FBI’s commitment to using every lawful tool at our disposal, together with our domestic and international partners, to disrupt the threats posed from Iran to American businesses and citizens.”
Assistant Attorney General Matthew G. Olsen said: “Today’s charges pull back the curtain on an Iran-based company that purported to provide ‘cybersecurity services’ while in actuality scheming to compromise U.S. private and public sector computer systems, including through spearphishing and social engineering attacks. The Department is committed to using a whole of government approach to disrupt such malicious activities and impose consequences on the individuals that carry them out. Employees that continue to work at these companies risk arrest and prosecution or a lifetime as an international fugitive from justice.”
FBI Assistant Director in Charge James Smith said: “Hostile threat actors have become increasingly aggressive in their attempts to infiltrate and disrupt our country’s cyber infrastructure. These four defendants allegedly employed sophisticated techniques in a multi-year cyber hacking campaign targeting the U.S. Departments of Treasury and State and several private sector companies entrusted with supporting the work of the Department of Defense. These charges send a clear message – the FBI prioritizes cybersecurity to protect our sensitive information and will not tolerate threats or cyber-attacks by anyone.”
According to the allegations contained in the Indictment:[1]
From at least in or about 2016 through at least in or about April 2021, HAROONI, KAZEMIFAR, SALMANI, NASAB, and other conspirators were members of a hacking organization that participated in a coordinated multi-year campaign to conduct and attempt to conduct computer intrusions. These intrusions targeted more than a dozen U.S. companies and the U.S. Departments of the Treasury and State.
During the conspiracy, KAZEMIFAR, SALMANI, and NASAB were employed by Mahak Rayan Afraz (محک رایان افراز), an Iran-based company that purported to provide cybersecurity services, but which was, in fact, a front for the conspirators’ operations.
The hacking group’s private sector victims were primarily cleared defense contractors, which are companies that have been granted security clearances by the U.S. Department of Defense to access, receive, and store classified information for the purpose of conducting activities in support of U.S. Department of Defense programs. In addition, the group targeted a New York-based accounting firm and a New York-based hospitality company.
In conducting their hacking campaigns, the group used spearphishing — tricking an email recipient into clicking on a malicious link — to infect victim computers with malware. During their campaigns against one victim, the group compromised more than 200,000 employee accounts. In another campaign, the conspirators targeted 2,000 employee accounts. In order to manage their spearphishing operations, the group created and used a particular computer application that enabled the conspirators to organize and deploy their spearphishing attacks.
In the course of these spearphishing attacks, the conspirators compromised an administrator email account belonging to a defense contractor (“Defense Contractor-1”). Access to this administrator account empowered the conspirators to create unauthorized Defense Contractor-1 accounts, which the conspirators then used to send spearphishing campaigns to employees of a different defense contractor and a consulting firm.
In addition to spearphishing, the conspirators utilized social engineering, which involved impersonating others, generally women, to obtain the confidence of victims. These social engineering contacts were another means the conspiracy used to deploy malware onto victim computers and compromise those devices and accounts.
KAZEMIFAR was responsible for testing the tools utilized by the conspiracy to execute its cyber campaigns. For example, KAZEMIFAR was involved in testing spearphishing emails used to target victim companies and was involved in developing malware utilized by the conspiracy in social engineering initiatives. During the course of his involvement in the conspiracy, from at least in or about 2014 through at least in or about 2020, KAZEMIFAR also worked for the Iranian Organization for Electronic Warfare and Cyber Defense (“EWCD”). EWCD is a component of the Islamic Revolutionary Guard Corps (“IRGC”), which is itself a component of the Iranian Armed Forces. Among other things, the IRGC is responsible for Iran’s offensive cyber capabilities. The U.S. has designated the IRGC as a foreign terrorist organization.
HAROONI was responsible for procuring, administering, and managing the online network infrastructure, including computer servers and customized software used to facilitate the computer intrusions. HAROONI also fraudulently used the identity of a real person (“Individual-1”), including his use of a copy of Individual-1’s true passport, to conceal his role in procuring online infrastructure used by the conspiracy to facilitate the computer intrusion campaign.
SALMANI was responsible for testing tools utilized by the conspiracy to execute spearphishing campaigns, including the campaign against a hospitality company. SALMANI was also involved in maintaining infrastructure used by the conspirators.
NASAB was responsible for procuring infrastructure used by the conspiracy, particularly infrastructure used in furtherance of social engineering campaigns. NASAB also used Individual-1’s identity, including Individual-1’s name and passport, to register server and email accounts that were used during malicious cyber campaigns.
Concurrent with the unsealing of the Indictment, the U.S. Department of State’s Rewards for Justice program (“RFJ”) is offering a reward of up to $10 million for information leading to the identification or location of the group and the defendants. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act.
Anyone with information on these malicious cyber actors, or associated individuals or entities, please contact Rewards for Justice via the Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion . More information about this RFJ reward offer is located on the Rewards for Justice website.
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KAZEMIFAR, 36, of Iran, is charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.
HAROONI, 34, of Iran, is charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of knowingly damaging a protected computer, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison.
SALMANI, 38, of Iran, is charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison.
NASAB, 39, of Iran, is charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI, including the work of the FBI Cyber Division.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel, Dina McLeod, and Daniel G. Nessim are in charge of the prosecution, with assistance from Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Jury Convicts Detroit-Based Cocaine and Heroin TraffickerRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced that a jury convicted Joseph Michael McNoriell, also known as Mike X, of Detroit, 43, of conspiracy to distribute cocaine and heroin and possession with intent to distribute cocaine. The jury announced its verdict last Thursday after three days of trial. McNoriell is scheduled to be sentenced on August 7, 2024.
“These illegal substances destroy lives and devastate communities,” said U.S. Attorney Mark Totten. “We will never prosecute our way out of this problem, but we will continue our work to dismantle the regional-level supply lines that distribute drugs across Michigan.”
The evidence at trial showed that the McNoriell worked with other individuals to deliver two kilograms of cocaine from southeast Michigan to Lansing. On June 2, 2022, McNoriell used a female drug courier driving a different car and followed her in his car to deliver two kilograms of cocaine. McNoriell was unaware that investigators with the Drug Enforcement Administration (DEA) and troopers with the Michigan State Police (MSP) anticipated the delivery and seized the two kilograms of cocaine from the courier’s car. A photograph of the seized kilograms of cocaine is provided below:
“This investigation emphasizes the mission of the DEA: combatting criminal drug networks like the one Mr. Mcnoriell was involved in,” said DEA Special Agent in Charge Orville O. Greene. “Along with our local, state and federal partners, we will relentlessly pursue individuals and organizations who prioritize greed and profit over human lives.”
This case was prosecuted by Assistant United States Attorneys Vito S. Solitro and LaToyia T. Carpenter. It was investigated by the Drug Enforcement Administration, Michigan State Police, Lansing Police Department, and Holland Department of Public Safety.
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Jamestown Resident Sentenced to Seven Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
ERIE, Pa. - A resident of Jamestown, Pennsylvania, has been sentenced in federal court to 84 months in prison, to be followed by 15 years of supervised release, and ordered to pay restitution in the amount of $7,000 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Hank Thomas Fisher, 22.
According to information presented to the Court, from March 2020 to August 2021, Fisher distributed images and videos depicting prepubescent minors engaging in sexually explicit conduct. Fisher also possessed thousands of images and videos of child sexual abuse material.
Prior to imposing sentence, Judge Baxter noted the lifelong impact that these crimes will have on the young victims depicted in the child sexual abuse material.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and Pennsylvania State Police for the investigation leading to the successful prosecution of Fisher.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indictment Charges New Haven Man on Federal Supervised Release with Unlawful Possession of a FirearmRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, New Haven Police Chief Karl Jacobson, and West Haven Police Chief Joseph Perno announced that a federal grand jury in New Haven returned an indictment today charging ELBERT LLORRENS, 31, of New Haven, with unlawful possession of a firearm by a felon.
As alleged in the indictment, on March 1, 2024, Llorrens possessed a loaded Smith & Wesson, model SD40 VE, .40 caliber pistol. In March 2017, Llorrens was convicted in Connecticut federal court of carjacking, and he was on federal supervised release when he possessed the firearm.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
If convicted of the charge in the indictment, Llorrens faces a maximum term of imprisonment of 15 years.
Llorrens has been detained since his arrest on state charges since March 1, 2024.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New Haven Police Department, and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
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.
Houstonian charged with filing over $500,000 in fraudulent disaster relief loansRead the Press Release
HOUSTON – A 26-year-old woman is set to appear in federal court for conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Khalia Douglas is expected to make her initial appearance before U.S. District Judge Yvonne Ho at 2 p.m.
According to the criminal information filed April 16, from March 2020 until June 2021, Douglas allegedly submitted false and fraudulent applications to the Federal Emergency Management Agency (FEMA), Small Business Administration, the U.S. government and a bank for financial assistance.
As part of the alleged scheme, Douglas gave instructions to co-conspirators on
how to fraudulently apply for FEMA assistance and allegedly assisted others in applying for FEMA rental assistance. Douglas allegedly received payment from co-conspirators for assisting them in filing fraudulent FEMA applications for assistance with rentals, critical needs and personal property assistance. Douglas also helped others in filing false applications for Paycheck Protection Payment loans, Economic Injury Disaster Loan assistance and bank loans, according to the charges.
Douglas allegedly assisted in filing the false applications causing an attempted loss of $514,415.
If convicted, Douglas faces up to five years in federal prison and a possible $250,000 maximum fine.
The Department of Homeland Security - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hazelwood Company Owner Admits Contract FraudRead the Press Release
ST. LOUIS – The owner of a steel company in Hazelwood, Missouri on Tuesday admitted committing fraud during a repair project for a Mississippi River lock and dam.
Theodore J. “Ted” Stegeman, 60, pleaded guilty in U.S. District Court in St. Louis to one felony count of wire fraud. In his plea agreement, Stegeman admitted that between October and December of 2019, he devised a scheme to defraud the contractor and the U.S. Army Corps of Engineers by falsely claiming that a part manufactured by his company passed safety tests.
Stegeman is owner and CEO of Industrial Steel Fabrication LLC (ISF), which was a subcontractor on a project to repair Lock and Dam No. 25 on the Mississippi River near Winfield, in Lincoln County, Missouri. ISF was responsible for fabricating and welding cover plates, or flanges, for all 17 bridge spans. The flanges were supposed to undergo ultrasonic tests to identify any defects in the welded joints.
The government believes that these flanges are critical, load-bearing components. If a span weld cracks, there is a possibility the bridge and dam could fail, leading to possible fatalities and major damage to a large crane weighing up to 220,000 pounds that traverses the dam. Stegeman’s position, according to the plea agreement, is that the flanges are not “fracture critical components.”
In October 2019, Stegeman’s company delivered a flange for bridge span #10 that had failed an ultrasonic test. To conceal the failed test, Stegeman re-assigned ISF employees who knew about the failed test. He then altered the ultrasonic testing report to make it appear as if that flange had passed. ISF also supplied a flange for bridge span #12 that had not been tested and Stegeman told others to falsify a test to make it appear as if the part had passed. The contractor installed the flanges on bridge span #10 in October and November of 2019 and the upstream bottom flange on span #12 in December of 2019.
Stegeman’s crime caused a total loss of $238,059, representing the cost of removing, testing and re-installing flanges. He has agreed to repay that money.
Stegeman is scheduled to be sentenced September 12. Wire fraud is punishable by up to 20 years in prison, a $250,000 fine or both prison and a fine.
The Defense Criminal Investigative Service and the Department of the Army Criminal Investigation Division investigated the case. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Former postal manager who stole drugs from the mail pleads guilty to drug and gun chargesRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Ralph Minni, 54, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute 500 grams or more of cocaine, and possession of a firearm by an unlawful user of a controlled substance. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that on multiple occasions between May 2018, and May 2, 2022, Minni used his position as the Greece Post Office station manager to take parcels containing controlled substances, such as marijuana, out of the mail stream and into his private office, remove the contents, and then return the empty packages back into the mail stream. Minni then transported the controlled substances to his residence, where he would store and redistribute the narcotics to other individuals. On three occasions in March and April of 2022, Minni distributed quantities of cocaine to a coworker, who then proceeded to snort the cocaine off Minni’s office desk in his presence. On May 2, 2022, a search warrant was executed at Minni’s residence during which investigators recovered quantities of marijuana, approximately 700 grams of cocaine, approximately 40 firearms, and over 19,000 rounds of ammunition. Minni was arrested that same day after leaving the Greece Post Office. Officers recovered a quantity of marijuana from inside his vehicle, which he had removed from a mailed package and planned to take back to his residence for subsequent sale and distribution.
The plea is a result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the United States Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent-in-Charge Matthew Modafferi; and the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Ketty Larco-Ward. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, under the direction of Special Agent-in-Charge Bryan Miller; the Greece Police Department, under the direction of Chief Michael Wood; and the New York State Police, under the direction of Major Miklos Szoczei II.
Sentencing is scheduled for August 13, 2024 at 9:15a.m. before Judge Siragusa.
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Former credit union manager admits to embezzling over $200,000 from elderly client accountsRead the Press Release
HOUSTON – A 57-year-old Prairie View woman has pleaded guilty to one count of embezzlement by a federal credit union employee, announced U.S. Attorney Alamdar S. Hamdani.
Gloria Hall was employed at Prairie View Federal Credit Union (PVFCU). From 2017 through 2019, while acting as manager, she purposefully maintained an antiquated business practice which would not allow customers to access their accounts online. Hall admitted she was able to and did access at least two elderly customer accounts and misappropriated $211,563.12 of their funds for her own personal gain.
PVFCU was one of the oldest continually operational federal credit unions a historically black college or university had established in the United States. It did not survive Hall’s embezzlement. PVFCU existed for approximately 85 years prior to its failure and merger with the Cy-Fair Federal Credit Union in early 2022.
“Hall’s personal greed trumped the needs of her community,” said Hamdani. “These banks often form the bedrock of our society, and their failures can have devastating impacts on the people that rely on them. Her actions had severe consequences, actions that deserve a harsh yet just punishment.”
U.S. District Judge Charles Eskridge accepted the plea has set sentencing for Aug. 22. At that time, Hall faces up to 30 years in federal prison and a possible $1 million maximum fine.
Hall was permitted to remain on bond pending sentencing.
The FBI – Bryan Resident Agency conducted the investigation. Assistant U.S. Attorneys Grace Murphy and Thomas Carter are prosecuting the case.
Former Weymouth Police Officer Pleads Guilty to Assaulting a Man During an ArrestRead the Press Release
BOSTON – A former Weymouth Police officer pleaded guilty today to assaulting a man in custody by punching him multiple times without legal justification.
Justin Chappell, 43, pleaded guilty to one count of deprivation of rights under color of law. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 16, 2024. Chappell was charged on April 3, 2024.
On July 2, 2022, Chappell was a police officer for the Weymouth Police Department. While on duty, he responded to a call regarding an allegedly intoxicated man causing a disturbance at a home in Weymouth. Chappell placed a man under arrest, and while attempting to put the man in the police cruiser, Chappell punched the man approximately 13 times with a closed fist without legal justification. The punches caused obvious pain and visible injuries to the man’s head.
The charge of deprivation of rights under color of law resulting in bodily injury provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Weymouth Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorneys Torey B. Cummings and Neil J. Gallagher Jr. of the Criminal Division are prosecuting the case.
Former New Mexico Sheriff’s Office Deputy Pleads Guilty to Violating Civil Rights of Arrestee and Obstruction of JusticeRead the Press Release
A former sheriff’s deputy, Michael A. Martinez, 34, pleaded guilty today to violating the civil rights of a female arrestee by sexually assaulting her inside his patrol car and to obstructing justice by attempting to destroy his patrol car’s WatchGuard DVR system, which had recorded footage from his patrol car’s internal cameras of the sexual assault.
“Police sexual violence targeting women in their custody are heinous crimes that have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant weaponized his authority, exploited the power of his badge, handcuffed the victim and assaulted her in the backseat of his vehicle. We cannot and must not normalize police sexual violence and exploitation. We encourage survivors to find the courage to come forward and report these crimes to the FBI. The Justice Department stands ready to use our federal civil rights laws to seek justice and restitution for survivors of sexual misconduct by law enforcement officers and others who abuse their authority.”
“Law enforcement officers serve the innocent and guilty alike” said U.S. Attorney Alexander M. M. Uballez for the District of New Mexico. “Being accused of a crime does not deprive you of the basic human right to dignity and respect. If you abuse your position of authority and betray the oath you swore to the public by sexually assaulting those in your charge, your badge will not shield you from justice.”
“Civil rights violations, particularly when they involve a member of law enforcement, are of tremendous concern,” said Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office. “The entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve. The FBI will vigorously investigate any officer or agent of the law who is breaking the rules that he or she is sworn to uphold or is violating the civil rights of others.”
According to the plea agreement, at the time of the offense, Martinez worked as sheriff’s deputy for the Doña Ana Sheriff’s Office in Doña Ana County, New Mexico. On April 30, 2023, Martinez responded to a car accident and placed the victim under arrest for driving while intoxicated and careless driving. Martinez transported the victim to a medical center and, after the victim received medical clearance, he handcuffed her hands behind her back and put her back inside his patrol car, where he began sexually assaulting her. Afterward, he transported her to the Doña Ana Detention Center.
Several hours later, Martinez attempted to physically destroy his patrol car’s WatchGuard DVR system, which is the patrol car’s internal video camera system that, among other things, records and stores footage from the patrol car’s backseat camera. Martinez, correctly, believed that the DVR system contained a video recording of him sexually assaulting the victim in the backseat of his patrol car and attempted to destroy and conceal that recording from any future investigation.
A sentencing hearing will be set at a later date. Martinez faces a maximum penalty of 10 years in prison and up to three years of supervised release. In addition, Martinez must pay restitution to the victim and, upon release, adhere to state and federal sex offender registration requirements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Albuquerque Field Office, Las Cruces Resident Agency investigated the case, with assistance from the Doña Ana Sheriff’s Office and New Mexico State Police.
Assistant U.S. Attorney Matilda Villalobos for the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division are prosecuting the case.
Foreign National Extradited from Mexico to the United States to Face Fentanyl Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A Mexican national made his initial appearance in federal court in Sacramento on Friday, April 19, 2024, to face charges for fentanyl-pill, cocaine, and methamphetamine trafficking and money laundering, U.S. Attorney Phillip A. Talbert announced.
On March 3, 2022, a federal grand jury returned a superseding indictment against Luis Felipe Lopez Zamora, aka Gordo, 28, formerly of Tijuana, Mexico, and 13 co-defendants, charging them with a variety of fentanyl-pill, cocaine, and methamphetamine trafficking and money laundering crimes. Lopez Zamora was arrested by Mexican authorities on Jan. 2, 2024, on a warrant based on an extradition request, and he remained detained in Mexico pending his extradition. He was extradited from Mexico to the United States on April 18, 2024.
According to court documents, Lopez Zamora was a Tijuana-based source of supply and organizational leader of a Sacramento-based drug trafficking organization (DTO). The leader of the DTO in Sacramento was Lopez Zamora’s brother, co-defendant Jose Lopez-Zamora. From at least May 2019 until January 2021, the DTO was responsible for importing tens of thousands of fentanyl-laced counterfeit oxycodone “M-30” pills from Mexico and distributing them in northern California and elsewhere. The DTO also distributed cocaine and methamphetamine.
Lopez Zamora is charged with one count of conspiracy to distribute and possess with intent to distribute at least 400 grams of a mixture or substance containing fentanyl, cocaine, and at least 50 grams of methamphetamine; two counts of possession with intent to distribute at least 400 grams of a mixture or substance containing fentanyl; and one count of conspiracy to launder money.
Eight defendants have pleaded guilty and six have been sentenced as follows:
- Rudi Jean Carlos pleaded guilty and, on Oct. 11, 2022, was sentenced to 10 years and one month in prison.
- Jason Lamar Lee pleaded guilty and, on Oct. 11, 2022, was sentenced to eight years and seven months in prison.
- Javier Hernandez pleaded guilty and, on Nov. 8, 2022, was sentenced to two years and eight months in prison.
- Christopher Kegan Williams pleaded guilty, and on Dec. 14, 2021, was sentenced to two and a half years in prison.
- Baudelio Vizcarra Jr., pleaded guilty, and on Jan. 24, 2023, was sentenced to two and a half years in prison.
- Mateo Elias Guerrero-Gonzales pleaded guilty and, on Oct. 11, 2022, was sentenced to two years and three months in prison.
- Alejandro Tello pleaded guilty and is scheduled to be sentenced on Sept. 3, 2024.
- Christian Anthony Romero pleaded guilty and is scheduled to be sentenced on July 16, 2024.
Charges are pending against the following defendants: Jose Guadalupe Lopez-Zamora, Leonardo Flores Beltran, Joaquin Alberto Sotelo Valdez, Erika Gabriela Zamora Rojo, Jose Luis Aguilar Saucedo, Rosario Zamora Rojo, and Sandro Escobedo. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET‑5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. The Justice Department’s Office of International Affairs worked with Mexican authorities to secure the arrest and extradition of Lopez Zamora. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, Lopez Zamora faces a mandatory minimum of 10 years and a maximum statutory penalty of life in prison on each of the drug trafficking counts and a maximum statutory penalty of 20 years in prison on the money laundering conspiracy count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
Florida Man Sentenced for Laundering Proceeds of Nigerian Romance Scams and Business Email CompromisesRead the Press Release
A Florida man was sentenced today in federal court to 48 months in prison for his role in laundering the proceeds of scams against American consumers and businesses to co-conspirators located in Nigeria.
According to court documents, Niselio Barros Garcia Jr., 50, of Winter Garden, was part of a network of individuals who laundered proceeds of fraud from romance scams, business email compromises and other fraud schemes. Garcia supplied bank accounts to his co-conspirators for the purpose of receiving proceeds from the scams. After he received the proceeds, Garcia used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria.
Business email compromises involve criminals hacking or spoofing business email accounts to initiate fraudulent money transfers. Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.
Garcia pleaded guilty to conspiracy to commit money laundering in the Southern District of Florida in January. According to Garcia’s plea agreement, Garcia personally laundered over $2.3 million of criminal proceeds. As part of his sentence, Garcia was ordered to forfeit $464,923.91 in proceeds that he personally received from the offense. Four additional defendants have been charged in this scheme but remain at large.
“This case demonstrates the department’s continued commitment to prosecuting transnational fraud and those who knowingly facilitate it,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “By facilitating the concealment of illicit profits, third-party money launderers enable large-scale transnational fraud schemes. This case underscores the department’s commitment to protecting consumers and disrupting the infrastructure that makes these crimes lucrative.”
The FBI Buffalo Field Office investigated the case.
Trial Attorneys Lauren M. Elfner and Matthew Robinson of the Civil Division’s Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Final Franklin Enterprise member sentenced following murder plotRead the Press Release
NORFOLK, Va. – A Franklin area man was sentenced today to 22 years and nine months in prison for conspiracy to commit murder and other crimes.
Malik Trevonte Newsome, aka “Red,” “Redd,” and “Hitman Red,” 31, of Ivor, Virginia, was the final defendant sentenced for his role in a violent spree committed by members and associates of a Blood-affiliated criminal Enterprise that operated in and around Franklin, Virginia. Newsome; Ronald Damone Jenkins, Jr., aka “G,” 42, of Franklin; Japree Lortez Brooks, aka “Choppa,” and “Primo,” 40, of Murfreesboro, North Carolina; Montrail Je’Quan Manley, aka “Yay,” 28, of Portsmouth; and Deon Dominick Sykes, aka “Animal,” 35, of Franklin, participated in three shootings between late 2017 and early 2019. When a high-ranking member of the Enterprise was murdered by a rival Crip-affiliated gang, the group hunted down and shot members and associates of the Crip gang. One of the victims was shot in the hand and leg, two other victims sustained gunshots to their torsos, leaving each with colostomy bags and other permanent injuries.
A federal jury convicted Newsome, Jenkins, and Brooks on December 11, 2023. Newsome was convicted of conspiracy to commit murder in aid of racketeering and witness tampering and obstruction of an official proceeding.
Jenkins was convicted of conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, and being a felon in possession of a firearm and ammunition. On April 16, 2024, Jenkins was sentenced to 25 years in prison.
Brooks was convicted of conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, carrying and discharging a firearm during and in relation to a crime of violence, and witness tampering and obstruction of an official proceeding. On April 18, 2024, Brooks was sentenced to 35 years in prison, plus an additional year for a violation of conditions of supervised release in a separate matter.
Manley pleaded guilty on June 6, 2023, to conspiracy to commit murder in aid of racketeering and being a felon in possession of a firearm and ammunition. On January 4, 2024, he was sentenced to 12 years in prison.
Sykes pleaded guilty on July 27, 2023, to conspiracy to commit murder in aid of racketeering. On January 4, 2024, he was sentenced to 10 years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations; Steve Patterson, Chief of Franklin Police; and Josh Wyche Sr., Southampton County Sheriff, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Assistant U.S. Attorney Kristen Taylor for the Eastern District of Virginia and Trial Attorney Christopher Taylor of the Department of Justice’s Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-101.
EDVA Announces Availability of Half a Million Dollars in Grant Funding for Project Safe Neighborhood InitiativesRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the availability of over $500,000 in grant funding for Project Safe Neighborhood (PSN) initiatives.
"Addressing violence requires an all-hands effort," said U.S. Attorney Aber. "Communities that work closely together are more successful in driving down violent crime rates. Prevention, intervention, and enforcement go hand in hand to tackle the root causes of violent crime. PSN grant funding is an important resource in a strategy that assists communities and neighborhoods to work together."
Since 2022, local organizations in EDVA have received over $750,000 in PSN grant funding. The last two years of PSN recipients include the following:
- Project Safe Alive and Free (SAF) supports a Group Violence Intervention effort in Hopewell and the surrounding Tri-Cities area that pairs community violence intervention methods and intense life coaching with a trauma-based violence intervention program. This program also works collaboratively with Assistant United States Attorneys from EDVA’s Richmond Division.
- Parents Against Bullying Virginia (PABVA) facilitates anti-bullying programs in the Newport News public school system including “Girl & Gent Talk” group sessions with at-risk youth and the STAR Bright Kidz Puppet program.
- The City of Richmond RVA League for Safer Streets, focuses on prevention and intervention for young individuals who may be susceptible to or involved in gangs by facilitating a Midnight Basketball League where youth are engaged in workshops on topics such as conflict resolution.
- Ballistic IQ technology for the police departments of the cities of Norfolk, Virginia Beach, Portsmouth, Chesapeake, and Hampton.
- A three-year research grant on the impact of effectiveness of Group Violence Intervention by the George Mason Center for Evidence Based Policy.
- Real Life Group Violence Intervention and services for individuals making re-entry into the community from correctional facilities.
EDVA’s PSN violence reduction strategy, which is supported by these initiatives, sets the following goals to reduce violent crime:
- Engage, collaborate, and invite community stakeholders to share responsibility in efforts to reduce violent crime. The Group Violence Intervention (GVI) strategy is an example of this.
- Build trust between law enforcement and the community through effective communication, regular interaction, and the support and protection of crime victims.
- Reduce accessibility and possession of handguns among minors.
- Reduce re-offending and break the cycle of re-victimization.
- Disrupt and dismantle the region’s most organized and violent gangs.
- Identify chronic violent offenders responsible for a disproportionate level of violent crime.
- Work with citizens in neighborhoods most impacted by violent crime on harm reduction strategies.
The U.S. Attorney and the PSN Grant Committee encourage organizations and local and state agencies whose programs support our PSN goals within the district to apply for the remaining grant assistance by visiting the Virginia Department of Criminal Justice Services (DCJS) website at https://www.dcjs.virginia.gov/grants/programs/fy-2024-project-safe-neighborhoods-grant-program-eastern. Applications must be submitted in the DCJS Online Grants Management System (OGMS) no later than 5:00 p.m. on May 29, 2024.
PSN is 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. The PSN Grant Committee is currently prioritizing three regions impacted most by violent crime - Richmond, Newport News, and Norfolk - but will evaluate grant applications from across the Eastern District. Applicants submitting a grant may apply for funds between $25,000 and $200,000.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dominican National Sentenced to Prison for Illegally Reentering U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSE OZUNA CRUZ, also known as Jose Cruz-Cruz, Jose Chapulin, Jose Ozuna-Montero, and Jose Ozun-Cruz, 48, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, Ozuna was deported from the U.S. to the Dominican Republic in February 2010 following a felony conviction in the U.S. District Court for the Southern District of California for conspiracy to distribute cocaine, and a 37-month prison sentence. Ozuna subsequently illegally reentered the U.S. On November 21, 2022, he was arrested by Waterbury Police in Waterbury and charged with various state drug distribution and firearm possession offenses.
Ozuna has been detained since his federal arrest on November 9, 2023. On January 30, 2024, he pleaded guilty to illegal reentry.
The state charges against Ozuna are pending.
This matter was investigated by U.S. Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
Doctor Charged with Unlawfully Distributing Controlled Substances and Health Care FraudRead the Press Release
A New Hampshire doctor made his initial appearance today in Burlington, Vermont, on charges related to his alleged involvement in conspiracies to illegally distribute controlled substances and to commit health care fraud.
According to court documents, Adnan S. Khan, M.D., 48, of Grantham, orchestrated his alleged illegal prescribing and health care fraud conspiracies through New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics located in Vermont, New Hampshire, and Maine. Through NEMCA, Khan allegedly distributed drugs to individuals outside the usual course of professional practice and without a legitimate medical purpose. Khan allegedly required that patients pay cash in exchange for their prescriptions, despite many of his patients having insurance through Medicare and Vermont Medicaid. Khan allegedly prescribed the drugs knowing that at least some of his patients were abusing and diverting the drugs. In addition, Dr. Khan allegedly ordered medically unnecessary definitive urine drug testing while soliciting kickbacks and bribes from laboratories, knowing that federal health care programs would be billed for the medically unnecessary tests.
Khan is charged with one count of conspiracy to commit unlawful distribution of a controlled substance, 12 counts of illegal distribution of a controlled substance, one count of conspiracy to commit health care fraud, and two counts of health care fraud. If convicted, Khan faces a maximum penalty of 20 years in prison on the illegal distribution counts and a maximum penalty of 10 years in prison on each of the health care fraud counts.
As a condition of Khan’s release pending trial, he is prohibited from writing prescriptions for controlled substances.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Nikolas P. Kerest for the District of Vermont; Acting Special Agent in Charge Stephen Belleau and Diversion Program Manager Evangela Dortch of the Drug Enforcement Administration (DEA) New England Division; Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Boston Field Office; Special Agent in Charge Craig L. Tremaroli of the FBI Albany Field Office; and Attorney General Charity R. Clark of the Vermont Attorney General’s Office, on behalf of the office’s Medicaid Fraud & Residential Abuse Unit, made the announcement.
DEA, HHS-OIG, the FBI, and the Vermont Attorney General’s Office, Medicaid Fraud and Residential Abuse Unit are investigating the case.
Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Gilman for the District of Vermont are prosecuting the case.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.
The Vermont Attorney General’s Office, Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 8 1/2 Years in Prison for ManslaughterRead the Press Release
WASHINGTON – Eugene Williams, 18, of Washington, D.C., was sentenced yesterday for the February 8, 2022, shooting death of 16-year-old DeShaun Francis, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Williams was sentenced by the Honorable Maribeth Raffinan of the Superior Court of the District of Columbia.
Williams previously pleaded guilty on December 6, 2023, to voluntary manslaughter while armed with a firearm. According to the D.C. Voluntary Sentencing Guidelines, Williams faced a sentencing range of seven-and-a-half to 15 years in prison. The U.S. Attorney’s Office requested 15 years in prison. The Court sentenced Williams under the Youth Rehabilitation Act and ordered him to serve eight-and-a-half years of a 10 year sentence, suspending 18 months of prison time. Williams must also serve 18 months of supervised probation, upon release.
According to the government’s evidence, on February 8, 2022, Williams arranged to buy marijuana from a family member of DeShaun Francis. The family member, who was also planning to visit his father after making the sale, asked Mr. Francis if he wanted to ride along. Mr. Francis agreed to come along and was seated in the front passenger seat of the car when Williams came out to inspect the marijuana. Williams initially walked to the driver’s side of the car, briefly interacted with the occupants, and then re-entered an apartment building. A short time later Williams returned to the car with his codefendant, Anthony Greene. Greene approached the driver’s side of the car and Williams then walked to the passenger side of the car, armed with a firearm, and fired one shot into the car, striking DeShaun Francis, who was unarmed, in the head. Thereafter, as Greene and Williams fled the scene, there was an exchange of gunfire between Mr. Francis’ family member and Greene and Williams. Mr. Francis was hospitalized in critical condition until February 11, 2022, when he succumbed to his injuries.
In announcing the sentencing, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of former Assistant U.S. Attorney Steven Rickard and Assistant U.S. Attorney Andrea Antonelli, who investigated and prosecuted the case.
Department of Justice Commemorates 2024 National Crime Victims’ Rights WeekRead the Press Release
DES MOINES, Iowa – The Department of Justice’s Office for Victims of Crime and the United States Attorney’s Office for the Southern District of Iowa join federal, state, and local communities nationwide in observing National Crime Victims’ Rights Week and celebrating victims’ rights, protections, and services. This year’s observance takes place April 21-27, 2024, and features the theme, “How would you help? Options, services, and hope for crime survivors,” which is focused on creating safe environments for crime victims to share what happened to them and offer support, options for life-saving services, and most importantly, hope. The 2024 theme asks all of us—friends, family members, neighbors, colleagues, community leaders, victim service providers, criminal justice practitioners, and health professionals—how we can help crime victims.
As part of this observance, the Southern District of Iowa recognizes the courage and bravery of victims, and the outstanding work of law enforcement, victim advocates, and community service partners throughout Iowa. Ten individuals are recognized for outstanding service to victims:
Award for Excellence in Victim Services
- Shannon Knudsen, SANE, S.A.F.E. Center of Iowa
- Emily Milke, IL Sexual Assault Medical/Legal Advocate, Family Resources
- Lindsay Wilson, Victim Advocate, Family Crisis Centers
Law Enforcement Victim Service Award
- Josh Dagit, Special Agent, Internal Revenue Service-Criminal Investigation
- Kegan Jacobson, Detective, Burlington Police Department
- Kevin Kohler, Special Agent, Federal Bureau of Investigation
- Robert Larsen, Special Agent, Iowa Division of Criminal Investigation
- Denise Rudolph, Special Investigator, Iowa Insurance Division
- Chris Scanlan, Special Investigator, Iowa Insurance Division
- Jeremy Tosh, Investigator, Ottumwa Police Department
“Every day law enforcement officers and victim service providers give priceless assistance and support to courageous crime survivors. With their unwavering support, these individuals provide hope, safe spaces and vital services to victims in our community and are a critical component of our criminal justice system. These awards proudly recognize the exceptional efforts of a number of these individuals who provided assistance to federal and state victims in the Southern District of Iowa,” said United States Attorney Richard D. Westphal for the Southern District of Iowa.
The 2024 Law Enforcement Victim Service Award recognizes the performance of Josh Dagit, Special Agent, Internal Revenue Service-Criminal Investigations, and Jeremy Tosh, Investigator, Ottumwa Police Department. Special Agent Dagit and Investigator Tosh provided extraordinary assistance to hundreds of immigrant victims in the investigation and prosecution of a fraudulent tax scheme. Those immigrants were literally from all over the world—Burma, Eritrea, Ethiopia, Kenya, Mexico, and other places. Some were refugees. Nearly all had little education and were unable to speak or read English. Special Agent Dagit and Investigator Tosh showed time and time again that they were willing to do whatever it takes to ensure the victims’ participation and comfort, all in hopes of justice being served.
The 2024 Law Enforcement Victim Service Award recognizes the performance of Kegan Jacobson, Detective, Burlington Police Department. Detective Jacobson’s work in United States v. Miesha Stanley et al., exemplified his dedication to holding sex traffickers accountable for preying on society’s most vulnerable members. Detective Jacobson’s worked with victim service specialists to utilize trauma informed interview skills, responded to safety concerns, and built a strong and trusting rapport with victims. Detective Jacobson’s investigation of this matter both provided victims a secure environment and services, and also made the Burlington community safer.
The 2024 Award for Excellence in Victim Services is awarded to Shannon Knudsen, SANE Coordinator, S.A.F.E. Center of Iowa. S.A.F.E. Center of Iowa is a non-profit agency aimed at providing solutions to better serve victims of sexual assault across Iowa. Knudsen has professionally and personally proven to be dedicated to assisting both the criminal justice system and crime victim service programs. Knudsen works with Mid-Iowa Sexual Assault Response Team (SART) and Iowa State University/Story County SART as the Sexual Assault Nurse Examiner (SANE) Coordinator, a state-wide technical assistance role for sexual assault examiner programs in the state of Iowa for the Iowa Coalition Against Sexual Abuse. Shannon Knudsen assists with coordinating collaborative care at each of nine exam sites served by Mid-Iowa SART and two exam sites in Story County, as well as developing policies, and procedures and coordinating training to maintain the competency of Mid-Iowa SART and Story County SANEs.
The 2024 Law Enforcement Victim Service Award recognizes the performance of Kevin Kohler, Special Agent, Federal Bureau of Investigation, Denise Rudolph and Chris Scanlan, Special Investigators, Iowa Insurance Division for their outstanding work in a complex fraud and money laundering investigation involving over thirty elderly victims and millions of dollars of fraud. Victims lost hundreds of thousands of dollars in life savings, proceeds from the sale of real estate, or other assets. Other victims reported being unable to afford travel, medical care, gifts for their family members, and other items they had planned to enjoy in their later years.
The 2024 Law Enforcement Victim Service Award recognizes the performance of Robert Larsen, Special Agent, Iowa Department of Public Safety-Division of Criminal Investigation. Special Agent Larsen has spent countless hours helping, supporting, and corroborating child victims accounts of abuse, reviewing cybertips, executing search warrants, interviewing suspects, meeting with victims and witnesses, developing strong cases for prosecution. He has spent many hours traveling the roads across Iowa, including Council Bluffs, Harlan, Clarinda, Shenandoah, Audubon, and other smaller counties in the Southern District of Iowa, setting up meetings with witnesses documenting the details of their abuse, explaining the court process, and preparing witnesses for plea hearings, trial, and sentencing.
The 2024 Award for Excellence in Victim Services is awarded to Emily Milke, IL Sexual Assault Medical/Legal Advocate, Family Resources. Milke has assisted with hands-on child pornography cases, death cases, sex trafficking cases, and a civil case involving a landlord that has victimized female tenants. She is a strong advocate and goes above and beyond to access the needs of the victims and to get them the services they need. Emily Milke is dependable, professional, compassionate, and easily establishes a trusting relationship with victims.
The 2024 Award for Excellence in Victim Services is awarded to Lindsay Wilson, Victim Advocate, Family Crisis Centers. Wilson will show up at moment’s notice if necessary. She is professional and approachable. She treats victims with respect, and they rely on her for assistance and support. Involved with victims of a large-scale overdose death investigation, many involving younger victims, Wilson provided compassionate and steadfast support to grieving parents and assisted them in navigating through the legal system. Lindsay Wilson is the ultimate team player.
President Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ojp.gov/ncvrw2024.
Defendant Convicted of Murder for Hire in Fatal Shooting Outside Karaoke Bar in QueensRead the Press Release
Today, a federal jury in Brooklyn returned a guilty verdict against Antony Abreu on both counts of an indictment charging him with murder-for-hire and murder-for-hire conspiracy in connection with the February 12, 2019 killing of 31-year-old Xin “Chris” Gu, outside of a karaoke bar in Queens. The verdict followed a two-week trial before United States District Judge Carol Bagley Amon. When sentenced, the defendant faces a mandatory term of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the verdict.
“With today’s conviction of Abreu, a cold-blooded triggerman who executed a young man in exchange for an expensive wristwatch, this Office has held all the conspirators responsible for this murder plot driven by greed and revenge,” stated United States Attorney Peace. “The victim was marked for death simply because he was pursuing the American dream by starting his own company. Chris Gu was celebrating his promising future and the Chinese New Year when his life was violently ended in the street without warning. His killers will spend the rest of their lives in prison.”
“Antony Abreu appraised Xin “Chris” Gu to be worth that of an expensive watch, murdering him for such jewelry. After Gu decided to pursue his own business dream, his slighted employer bribed Abreu to carry out the final step in this twisted judge, jury, and executioner scheme. Today’s conviction of the final defendant in this cold-blooded conspiracy emphasizes the FBI’s commitment to restoring the balance of justice and reaffirming that no individual is permitted to put a price on another’s life,” stated FBI Assistant Director-in-Charge Smith.
“The tireless work of the detectives, agents, and prosecutors in this case helped hold to full account the men responsible for this murder,” stated NYPD Commissioner Caban. “This is another example of our agencies’ collaborative commitment to public safety, and further proof that no one is beyond the reach of the law.”
As proven at trial, Abreu was hired to murder Gu as part a revenge scheme orchestrated by Gu’s former boss, Allen Yu. Allen Yu’s business, Amaco, lost substantial business when Gu left to start his own property development company. Enraged at Gu’s perceived disloyalty, Allen Yu hired co-conspirators You You and Zhe Zhang to kill Gu in exchange for payment. Zhang in turn hired Abreu to carry out the murder.
On the evening of February 11, 2019, and into the following pre-dawn hours, Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing. After dinner, Gu and a smaller group went to a karaoke bar, Grand Slam KTV in Flushing. When Gu left the bar and was getting into a cab, Abreu approached and shot Gu multiple times at close range, killing him. In exchange for committing the murder, Zhang gave Abreu a luxury Richard Mille wristwatch valued at over $100,000.
In the days after the murder, in an effort to avoid detection, Abreu sold the car he used in the murder to a relative and sold a burner phone used to facilitate the murder. In the following months, Abreu repeatedly bragged about committing the murder to various associates and posted on social media about the wristwatch Zhang had given him. After his arrest, Abreu obtained a contraband phone in jail, which he used to attempt to intimidate and retaliate against government witnesses in the case and to make payments to potential defense witnesses.
You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing. Allen Yu and Zhang were convicted at trial in October 2023 and face mandatory life sentences when they are sentenced.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Gabriel Park and Eric Silverberg are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Legal Assistant Thomas “Cole” Englert.
The Defendants:
ANTONY ABREU (also known as “Anthony”)
Age: 36
Corona, QueensE.D.N.Y. Docket No. 22-CR-208 (CBA)
Deepwater Man Sentenced for $500,000 CARES Act FraudRead the Press Release
SPRINGFIELD, Mo. – A Deepwater, Mo., man was sentenced in federal court today for fraudulently obtaining more than $500,000 in Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Brian Ruth, Sr., 47, was sentenced by U.S. District Judge Roseann Ketchmark to nine years in federal prison without parole. The court also ordered Ruth to pay a $15,000 fine, to pay $522,765 in restitution to the Small Business Administration, and to forfeit to the government $336,000. Ruth was taken into custody immediately following the hearing to begin serving his prison term.
On May 5, 2021, Ruth pleaded guilty to one count of wire fraud and two counts of money laundering. Ruth admitted that he applied online in May and June 2020, and received three PPP loans totaling $522,765 for three separate business entities. Each of the loan applications contained materially false statements and included fraudulent supporting documents. Ruth, who was convicted in 2018 of filing false or fraudulent tax returns, falsely claimed on his PPP loan documents that he had not been convicted of a fraud offense within the last five years of applying for these loans.
Ruth falsely claimed his three businesses were operational and employed numerous individuals in February 2020, when in reality, the businesses had not been open or operational and did not employ anyone.
Ruth also admitted that he directed the fraudulently obtained PPP loan proceeds to be wired to his bank accounts. According to court documents, at least five bank accounts under Ruth’s name were seized in an effort to recover some of the monies he had fraudulently stolen. When Ruth’s bank accounts were seized by law enforcement, they contained less than $6 in all of the five accounts collectively. Ruth spent all of the money he stole within about five months to fund his luxurious lifestyle.
Ruth used the proceeds of his fraud to gamble, purchase real estate, and purchase a 2016 Cadillac, a 2020 Dodge Charger, and a 2017 Dodge Challenger. Ruth traded the Cadillac and the Charger (along with $27,415) to purchase the Challenger.
According to court documents, Ruth has prior convictions for 10 felonies and 11 misdemeanors that include stealing, passing bad checks, theft, identity theft, violating protection orders, filing false tax returns, and immoral conduct with a minor. He has been arrested and/or charged with an additional 23 felony and 26 misdemeanor offenses throughout his life, including passing bad checks, trespassing, identity theft, fraudulent use of a credit card, burglary, and possessing a dangerous weapon. Ruth has not gone a single year in his life in which he has not been arrested and/or convicted for some type of fraud or other criminal offense.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation.
Dallas Man Sentenced to 14 Years in Prison for Receipt of Child Pornography from Butte CountyRead the Press Release
SACRAMENTO, Calif. — Cameron Andrew Garcia, 30, of Dallas, Texas, was sentenced today to 14 years in prison, 10 years of supervised release, and $5,000 in victim restitution for two counts of receipt of visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2014-2015, Garcia formed an online relationship with a minor victim from Butte County and instructed the minor victim to send him sexually explicit photos and videos, which the victim did. In 2020, Garcia sent Instagram messages to the same victim, threatening to post sexually explicit images and videos of the victim to public websites unless the victim produced new sexually explicit images and videos for him and sent him money. Garcia also used the Instagram app and the internet in 2020 to communicate with a second minor victim whom he knew was under the age of sixteen and solicited and received multiple videos of that victim engaged in sexually explicit conduct. When this second minor victim was not forthcoming with an additional picture, Garcia again resorted to extortion by threatening to post explicit content of the victim publicly.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
DEA’s National Prescription Drug Take Back Day set for April 27, 2024Read the Press Release
BILLINGS — The U.S. Attorney’s Office for the District of Montana joins the Drug Enforcement Administration in support of the National Prescription Drug Take Back Day on Saturday, April 27. The biannual event will be from 10 a.m. to 2 p.m. at sites across Montana. The event is an effort to rid homes of potentially dangerous, expired, unused and unwanted prescription drugs.
This initiative addresses a vital public safety and public health issue. Medicines that languish in homes are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses from these drugs.
“All Montanans can help stop the epidemic of drug overdoses and those that lead to death, especially from opioids, by safely disposing of unused or expired prescription drugs in their homes. Participating in DEA’s Drug Take Back Day is an easy way to clean out the medicine cabinet and prevent these drugs from being abused. I urge everyone to help make their communities safer,” U.S. Attorney Jesse Laslovich said.
“Prevention of drug misuse starts at home. For over a decade DEA’s National Prescription Drug Take Back Day has provided our community a safe and easy way to get rid of unnecessary medications,” said DEA Montana Resident Agent in Charge Cesar Avila. “This past fall we collected more than 1,100 pounds of unneeded medications throughout Montana, and, with your help, we hope to collect even more this Saturday.”
Numerous sheriff’s offices, police departments and federal agencies across Montana are participating in Take Back Day. Information about collection sites and more information about event is available here: https://takebackday.dea.gov/
During the last Take Back Day held on Oct. 28, 2023, 4,383 law enforcement participants at 4,675 collection sites across the country brought in a total weight of 599,897 pounds, or 300 tons, of drugs. This brings the total weight collected to 17.9 million pounds, or more than 8,950 tons, of prescription drugs collected in the history of the program. Collection results may include materials other than prescription drugs.
During the October 2023 event, Montanans turned in 1,109 pounds of prescription drugs at 21 collection sites. Nineteen law enforcement agencies participated. Total all time weight collected in Montana is 54,554 pounds.
In addition to DEA’s National Drug Take Back Day on April 27, prescription drugs can be disposed of any day throughout the year at any of the 11,000 authorized collectors. For more information on collection sites, visit: https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1
For more information about the disposal of prescription drugs or about the April 27 Take Back Day event, go to www.DEATakeBack.com.
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Convicted Felon Arrested on Federal Firearm ChargeRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Anthony Donnell Pew (47, Orlando) on an indictment charging him with possession of a firearm by a convicted felon. If convicted, Pew faces a minimum mandatory sentence of 15 years, up to life, in federal prison. A federal grand jury indicted Pew on April 2, 2024.
According to the indictment, Pew was previously convicted of 14 felonies, including tampering with evidence, felony battery, and multiple sales of controlled substances. On February 28, 2023, Pew was in possession of two handguns and ammunition. Because of his prior felony convictions, Pew is prohibited from possessing firearms and ammunition under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eustis Police Department. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Consolidated Nuclear Security Agrees to Pay $18.4 Million to Settle False Claims Act Allegations of Timecard FraudRead the Press Release
Consolidated Nuclear Security LLC (CNS) has agreed to pay the United States $18.4 million to settle allegations that, between July 1, 2014, and June 30, 2020, CNS knowingly submitted false claims to the National Nuclear Security Administration (NNSA) for time not worked at NNSA’s Pantex Site near Amarillo, Texas. The NNSA’s Pantex Site is the nation's primary facility for the assembly, disassembly and retrofitting of nuclear weapons. CNS, a Delaware company with its principal place of business in Tennessee, held a contract to manage and operate the site.
“We will not tolerate the misuse of public funds by those who do business with the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors fulfill their commitments particularly with respect to highly sensitive work on matters of national security.”
The settlement announced today resolves admissions by CNS that certain production technicians at the Pantex Plant recorded hours on their timesheets that they did not work. The United States paid CNS for that time under the CNS contract. CNS received credit in the settlement under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases.
“Taxpayers should never be on the hook for the cost of work that was not performed,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “Government contractors who misrepresent hours will be held accountable.”
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Texas, Civil Division’s Commercial Litigation Branch and Department of Energy, Office of the Inspector General. Assistant U.S. Attorneys Ken Coffin and Brian Stoltz for the Northern District of Texas and Senior Trial Counsel Don Williamson of the Justice Department's Civil Division handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementClearwater Men Indicted for Possessing Firearms and Ammunition as Convicted FelonsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Robert Pugh (34, Clearwater) with possession of firearm or ammunition by a convicted felon, and Leon Williams (34, Clearwater) with possession of ammunition by a convicted felon. If convicted, Pugh faces a maximum penalty of 15 years in federal prison, while Williams faces a maximum penalty of life in federal prison and a minimum mandatory penalty of 15 years under the Armed Career Criminal Act.
According to the indictment, on January 3, 2024, Pugh was in possession of a loaded Taurus firearm and a loaded Sig Sauer firearm. Prior to possessing the firearms and ammunition, Pugh had previously been convicted of multiple felonies including aggravated battery, felonious possession of a firearm or ammunition, and the sale of cocaine. On the same date, Williams possessed multiple rounds of ammunition. Prior to possessing the ammunition, Williams had been previously convicted of multiple counts of the sale of cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney Jeff Chang.
This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Child Exploitation Investigation Leads to 50-Month Sentence for Defendant’s Drug SupplierRead the Press Release
PORTLAND, Maine: A Portland man was sentenced today in U.S. District Court in Portland for conspiring to distribute cocaine.
U.S. District Judge Jon D. Levy sentenced Tyler Vangel (aka Tyler Linscott, Tyler Carter, Andrew Flanagan), 30, to 50 months in prison to be followed by three years of supervised release. He pleaded guilty on October 31, 2023.
According to court records, while investigating Sebastian Demers in early 2022 for suspected child exploitation, law enforcement learned that Demers was also selling drugs and that Vangel was Demers’ supplier. Investigators opened a separate inquiry into Vangel and learned that between January 2021 and June 2022, Vangel regularly obtained and transported large quantities of cocaine from a Lawrence, Massachusetts-based supplier to be distributed by himself and others, including Demers, to customers in Maine. Among the evidence seized during the investigation was Vangel’s phone, which revealed orders from lower-level distributors requesting a “basket” (3.5 grams) and “half key” (half kilogram) as well as Vangel responding about having a “brick” (kilogram).
Homeland Security Investigations investigated the case.
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Chicago-Area Tax Preparer Sentenced for False Return SchemeRead the Press Release
An Illinois woman was sentenced today to one year and one day in prison for preparing and filing false income tax returns for clients.
According to court documents and statements made in court, Vervia Watts, of Lansing, operated a tax preparation business in Illinois and elsewhere. From at least January 2017 through June 2023, Watts prepared and filed over 900 fraudulent income tax returns for her clients, reporting false education expenses and business income to obtain larger refunds from the IRS than the clients were otherwise entitled to receive. Watts received at least $300 for each return she prepared. The IRS paid approximately $1.3 million in fraudulent refunds.
In addition to her prison sentence, U.S. District Judge Lindsay C. Jenkins for the Northern District of Illinois ordered Watts to serve one year of supervised release and to pay approximately $1,349,314 in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Meredith Havekost and Regina Jeon of the Tax Division prosecuted the case.