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17 April 2024
KC Man Sentenced for Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine and heroin and for illegally possessing a firearm.
John A. Caylor, 55, was sentenced by U.S. Chief District Judge Beth Phillips on Tuesday, April 16, to 13 years and six months in federal prison without parole.
On Sept. 20, 2023, Caylor pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Caylor admitted that he participated in the drug-trafficking conspiracy from Feb. 28, 2020, to Sept. 20, 2022.
Co-defendant Jose Jesus Sanchez-Mendez, 42, a citizen of Mexico who illegally entered the United States, pleaded guilty on Sept. 20, 2023, to his role as the chief local operative of the drug-trafficking organization that distributed methamphetamine, heroin, cocaine, and fentanyl sourced from Mexico. Sanchez-Mendez managed the importation, processing, and distribution of hundreds of kilograms of illegal drugs in the Kansas City metropolitan area.
During the conspiracy, Caylor sold methamphetamine and other illegal drugs to a confidential informant on eight separate occasions. Caylor was arrested when he met the confidential informant for a ninth transaction, at which time Caylor was in possession of approximately 29.8 grams of methamphetamine.
Law enforcement officers searched Caylor’s hotel room and found a loaded Bersa .380-caliber handgun under a pillow on the bed, approximately 525.3 grams of marijuana, and drug paraphernalia.
Caylor is among 44 defendants charged in this case, and among seven defendants who have been sentenced. A sentencing hearing has not yet been scheduled for Sanchez-Mendez.
On June 8, 2022, Homeland Security Investigations (HSI) led an operation that involved 140 officers and agents from 14 state, local and federal law enforcement agencies. Officers made 34 arrests, executed 16 search warrants and seized 84.4 kilograms of methamphetamine, 4.5 kilograms of heroin, 10.4 kilograms of fentanyl, 7.6 kilograms of cocaine, 10.5 kilograms of marijuana, 687 Xanax pills, 3.1 kilograms of unknown pills, a quantity of bulk cash, five firearms, a 3D printer with manufactured ghost gun parts, and a liquid methamphetamine conversion lab.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Megan A. Baker. It was investigated by Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Jackson County Drug Task Force, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Missouri State Highway Patrol, the Kansas Highway Patrol, the Independence, Mo., Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Olmsted County, Minn., Sheriff’s Office, the Texas Department of Public Safety, the FBI, the Clay County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
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.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Justice Department Secures Agreement with Texas Education Agency to Ensure Testing Accommodations for People with DyslexiaRead the Press Release
AUSTIN, Texas – The United States has reached a settlement with the Texas Education Agency (TEA), a state agency responsible for certifying teachers to teach in classrooms across the state of Texas, to resolve alleged violations of Title II of the Americans with Disabilities Act (ADA) in the administration of the Science of Teaching Reading (STR) examination, a standardized examination required for the issuance of certain teacher certification fields in Texas.
The Department of Justice received an ADA complaint alleging that an individual with dyslexia and dysgraphia was denied oral administration as an alternative testing arrangement for the STR examination. The complaint prompted an investigation by the U.S. Attorney’s Office for the Western District of Texas. The ADA prohibits public entities from administering a licensing program in a manner that subjects individuals with disabilities to discrimination because of those disabilities.
Under the settlement agreement, the TEA agrees that it will allow a qualified reader or text-to-speech technology as an alternative testing arrangement for the STR examination for testing candidates who otherwise establish through appropriate documentation that such modifications are appropriate, including for individuals who are diagnosed with dyslexia. Additionally, to resolve the complaint, the TEA will provide the requested modifications to the complainant when they take the STR examination.
“Preparing for professional certification examinations is a stressful time for anyone, let alone people with disabilities who may also worry that their requests for alternative testing arrangements may be rejected,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “People with dyslexia should not be denied the testing accommodations they deserve. The ADA requires such modifications to ensure that people with disabilities are not being graded on their disabilities, and unfairly denied access to their chosen professions.”
Assistant U.S. Attorney David Goode represented the government during the resolution process. For more information about the ADA, visit www.ada.gov, or call the Department of Justice’s tollfree information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Justice Department Launches Carjacking Task Forces in Targeted Areas Across the CountryRead the Press Release
The Justice Department announced that 11 U.S. Attorneys’ Offices have now established a carjacking task force to focus efforts and resources on this important public safety threat.
“The Justice Department has no higher priority than keeping our communities safe. We do so by targeting the most significant drivers of violent crime and by acting as a force multiplier for our state and local law enforcement partners. We’re seeing results — with violent crime declining broadly nationwide,” said Deputy Attorney General Lisa Monaco. “Today, we are launching seven new carjacking task forces across the country to build on the success of task forces in Chicago, Washington, D.C., Philadelphia, and Tampa, where available data shows that carjacking rates are now falling. When prosecutors, officers, agents, and analysts come together to crunch data, share intelligence, and apply best practices, we can make real progress in the fight against all forms of violent crime, including carjacking.”
In keeping with the Department’s Comprehensive Strategy for Reducing Violent Crime, the task forces represent a strategic enforcement priority for the Department, focusing federal resources on identifying, investigating, and prosecuting the most significant drivers of violent crime.
Building on the initial efforts of and best practices learned from carjacking task forces in the U.S. Attorneys’ Offices for the District of Columbia, Northern District of Illinois, Eastern District of Pennsylvania, and Middle District of Florida, U.S. Attorneys’ Offices in the following seven districts are announcing the creation of carjacking task forces in their communities:
- District of Oregon
- Eastern District of Texas
- Northern District of Alabama
- Northern District of California
- Eastern District of Louisiana
- Southern District of Mississippi
- Western District of Washington
Carjacking and other violent crime task forces have proven to be an effective part of successful violent crime reduction strategies by focusing on significant crime drivers and taking violent offenders off the streets of our communities. For example, carjackings in Philadelphia declined by 31% from 2022 to 2023, and armed carjackings are down 28% in the District of Columbia this year compared to the same period in 2023. In Chicago, carjackings decreased 29% from a high in 2021 through the end of 2023.
The newly formed task forces will be led by the U.S. Attorneys’ Offices, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), working alongside state, local, Tribal, and territorial law enforcement partners. At initial kickoff meetings, task force members will come together to institute expedited sharing and prompt action procedures related to car thefts, carjackings, and the recovery of stolen or suspect vehicles — as well as effective evidence gathering and technology exploitation strategies. The task forces will also collaborate on how to use federal sentencing enhancements for cases where adults use juveniles to commit carjackings, as well as work with state and local authorities to ensure the appropriate handling of juvenile suspects. The task forces will also assist state and local officials who wish to seek Justice Department grant funding for juvenile intervention and diversion resources.
Individual Charged with Sex-Trafficking of Women on Pennsylvania Avenue in Brooklyn Known as the “Penn Track,” and Enticement of A MinorRead the Press Release
BROOKLYN, NY - Earlier today, an indictment was unsealed in federal court in Brooklyn charging Joel David Forney, also known as “Sirbar,” with three counts of sex trafficking, Mann Act transportation for purposes of commercial sex and coercion and enticement of a minor. The charges in the indictment arise from the defendant’s trafficking of women to work as prostitutes in New York, including along an open-air sex trafficking market on a stretch of Pennsylvania Avenue in Brooklyn, New York known as the Penn Track, as well as the defendant’s alleged transportation of women from New York to multiple other states, including Connecticut and Missouri, with the intent that they engage in commercial sex for his financial benefit. The charges also arise from the defendant’s alleged rape of a teenage girl in 2014. Forney was arrested this morning in Kissimmee, Florida and is scheduled to be arraigned this afternoon in the Middle District of Florida.
Breon Peace, United States Attorney for the Eastern District of New York, Kristen M. Clarke, Assistant Attorney General for Civil Rights at the Justice Department, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, the defendant raped a minor, and preyed on vulnerable women to sell their bodies for his own profit, while subjecting them to constant acts and threats of violence,” stated United States Attorney Peace. “With today’s arrest, this Office seeks to hold Forney accountable for his cruel and depraved crimes. We will continue working with our law enforcement partners to eradicate the degradation of women forced into sex work at the Penn Track and elsewhere in the district.”
Mr. Peace expressed his thanks to the New York City Police Department/FBI Child Exploitation Human Trafficking Task Force for their outstanding investigative work on the case.
“These charges represent the darkest side of the criminal world. Not only did Joel Forney allegedly force several victims into commercial sex trafficking through repeated violence and death threats, but he also allegedly raped a female minor victim after luring her into his residence. Today’s arrest affirms the FBI’s promise to investigate those who commit such heinous crimes, and ensure they are brought to justice,” stated FBI Assistant Director-in-Charge Smith.
As alleged in court filings, between at least the summer of 2016 and continuing through at least 2022, Forney trafficked women to engage in commercial sex in Brooklyn, New York and in other states through force, fraud and coercion for his financial benefit. The defendant trafficked his victims both in hotel rooms and on Pennsylvania Avenue in East New York, Brooklyn, a notorious location for commercial sex known as the Penn Track. The defendant subjected the victims to his total control and forced them to adhere to a list of rules designed to maximize his profits and minimize their resistance. When his victims disobeyed his directives, he used physical violence, and sometimes death threats, as a form of punishment.
Forney allegedly began trafficking Jane Doe #1 in the summer of 2016, when he lured her to travel from her home in Wisconsin to New York City with false promises of a legitimate job offer. When Jane Doe #1 arrived, he brought her to a hotel where he raped her and threatened her with violence. He then photographed her and posted advertisements on the internet using her photo to promote commercial sex. For the next several months, the defendant trafficked Jane Doe #1, bringing her to hotels in New York, Connecticut, Massachusetts and other locations, where he compelled her to engage in commercial sex. The defendant retained the majority of the proceeds of her commercial sex work. If Jane Doe #1 failed to earn enough money or acted in a way that he viewed as disrespectful, he would slap, punch, or sexually assault her. He routinely threatened to kill Jane Doe #1. On one occasion, he showed Jane Doe #1 a photograph on his phone of a dismembered woman and told her that “this is what happens to bi-----s who leave their pimps.”
Forney began trafficking Jane Doe #2 in October 2017 at the Penn Track and in other states where he forced her to perform commercial sex for his financial benefit. As was the case with Jane Doe #1, Forney kept the majority of the financial proceeds of Jane Doe #2’s work. Forney would beat her if she violated his rules. On one occasion, angered by Jane Doe #2’s perceived disobedience, Forney punched her in the face, breaking her front tooth.
Forney trafficked a third victim, Jane Doe #3, beginning in May 2017. As with Jane Doe #2, the defendant compelled Jane Doe #3 to work in commercial sex largely on the Penn Track, and kept most of her earnings. Like all the women the defendant trafficked, Jane Doe #3 was instructed to strictly adhere to the defendant’s rules, and any acts of disobedience were met with violence and threats.
In addition to sex trafficking, Forney also engaged in sexually predatory conduct directed at a minor. Specifically, in June 2014, when Forney was 31-years-old, he encountered Jane Doe #4, who was then 14 years-old, walking home in Queens. He told her she was pretty; she told him her age. After exchanging contact information, the defendant continued to communicate with the girl—regularly telling her she was beautiful—before inviting her to his home where he raped her.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Forney faces a minimum term of 15 years in prison, and up to life imprisonment.
If you are a victim of trafficking—whether by Forney or someone else—and have information to provide, please contact the FBI, which is prepared to help you regardless of your immigration status, at tips.fbi.gov or call 1-800-CALL-FBI.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Lauren Elbert and Antoinette N. Rangel and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are in charge of the prosecution.
The Defendant: JOEL DAVID FORNEY (also known as “Sirbar”)
Age: 41
Kissimmee, FloridaE.D.N.Y. Docket No. 24-CR-146 (KAM)
IRS Revenue Agent Indicted for Filing False Tax ReturnsRead the Press Release
BOSTON – A Revenue Agent for the United States Internal Revenue Service (IRS) was indicted yesterday by a federal grand jury in Boston for allegedly filing false personal tax returns for three years.
Ndeye Amy Thioub, 67, of Swampscott, was indicted on three counts of filing false tax returns and three counts of filing false tax returns as an employee of the United States. Thioub was previously arrested and charged by criminal complaint in March 2024.
According to the charging documents, Thioub was hired in 2006 as an Internal Revenue Agent in the IRS Large Business and International Division. As a Revenue Agent, Thioub planned and conducted examinations of tax returns using extensive and specialized knowledge of accounting techniques, practices and investigative audit techniques to examine and resolve various tax issues of individuals and business organizations. As a result of her education, training and experience, Thioub was highly knowledgeable about tax law. In addition, Thioub received yearly training in IRS Employee Tax Compliance, which instructs that IRS employees must comply with their tax obligations, including timely filing accurate tax returns and payment of taxes due.
It is alleged that Thioub filed false personal tax returns for tax years 2017, 2018 and 2019. It is further alleged that, for each year, Thioub filed a false Schedule C claiming a business loss from a purported “import and export” business she claimed to have. As a result, the claimed net loss was carried over to her personal IRS Form 1040s and used to reduce Thioub’s adjusted gross income and ultimate tax liability.
The charge of filing a false tax return provides for a sentence of up to three years in prison, followed by one year of supervised release and a $100,000 fine. The charge of filing a false tax return by an employee of the United States provides for discharge from employment and a sentence of up to five years in prison, followed by one year of supervised release and a $10,000 fine. 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; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Christopher J. Gust, Acting Special Agent in charge of the U.S. Department of Treasury Inspector General for Tax Administration, Northeast Field Division made the announcement today. Assistant U.S. Kristina E. Barclay of the Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hopkinsville Man Sentenced to 10 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Paducah, KY – A Hopkinsville, Kentucky man was sentenced yesterday to 10 years in federal prison for possession with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Erek G. Davodowich of the DEA Louisville Field Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to court documents, Daniel Champion, 42, of Hopkinsville, was sentenced to 10 years in prison, followed by 5 years of supervised release, for one count of possession with intent to distribute methamphetamine. On June 29, 2021, in Christian County, Kentucky, Champion possessed with the intent to distribute more than 50 grams of methamphetamine.
There is no parole in the federal system.
The case was investigated by the DEA Paducah Post of Duty and the Hopkinsville Police Department, with assistance from the Christian County Sheriff’s Office.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Guam Man Sentenced to 120 Months in Federal Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jason Solatario Brown, age 48, from Yigo, Guam was sentenced to 120 months imprisonment for Possession of Child Pornography, in violation of 18 U.S.C. § 2252. The Court also ordered five years of supervised release following imprisonment and a mandatory $100.00 special assessment fee. The Court also ordered Brown to register with the Sex Offender Registry anywhere he lives, works, or goes to school.
On November 24, 2020, a Federal Bureau of Investigation special agent searched Brown’s cellular telephone. During the examination the agent discovered 28 videos and images of child sexual abuse material (CSAM). The images depicted adult males engaging in sexually explicit conduct with young boys. Evidence revealed that Brown shared the videos and images with another person using the Facebook messenger app. Brown shared the images after receiving a request for images of children below the age of fifteen.
“Our children are facing unprecedented threats to their safety,” stated United States Attorney Anderson. “Digital technology facilitates nearly every crime. We must make every effort to combat the exploitation of children. Those who violate their innocence will be held accountable.”
“This sentence demonstrates that the FBI will vigorously pursue those who target young innocent children and bring justice to those who have been victimized,” said FBI Special Agent in Charge Steven Merrill. “We ask the public to be vigilant and report these heinous acts to the FBI at 1-800-CALL-FBI or at tips.fbi.gov so we can put these perpetrators away for a long time
This investigation was conducted by the Federal Bureau of Investigation. This prosecution is part of the Project Safe Childhood initiative, whose mission is to combat internet or technology-facilitated sexual exploitation crimes against children. PSC works in coordination with U.S. Attorney’s Offices, the Federal Bureau of Investigation, and the National Center for Missing and Exploited Children. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Grand Jury Indicts Former School Janitor Accused of Possession of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a Grand Jury indicted Bradley Arkesteyn, 28, of Rockford, for possessing child pornography. Arkesteyn was previously charged by criminal complaint, and he has been detained by the Court since March 20, 2024. Arkesteyn is set for arraignment on April 24, 2024.
“My office will always fight to protect the most vulnerable,” said U.S. Attorney Mark Totten. “Every image of child exploitation is a crime, whether possessed, viewed, or distributed. My team will continue working with our law enforcement partners to hold offenders accountable.”
As described in more detail in the criminal complaint, Arkesteyn allegedly posted images and videos of child pornography in a social media group called “kiddo only.” Arkseteyn also allegedly communicated privately with an undercover FBI task force officer about a sexual interest in children and his work as a custodian in an elementary school. The relevant school district has been notified.
“I am grateful to our dedicated agents and task force officers from the Western Michigan Based Crimes Against Children Task Force (WEBCHEX) for their investigative work on this case,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Today's indictment is a testament to the FBI and task force officers’ daily work to combat sexual exploitation, particularly against minors. Those who engage in such crimes will face justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. The case is being investigated by the FBI.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Georgian National and Son Charged with Laundering More Than $500,000 They Believed to Be Drug Cartel ProceedsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Spencer L. Evans, the Special Agent in Charge of the Las Vegas Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of YOHANAN ELIGOOLA and DAVID ELIGOOLA in connection with a conspiracy to launder money that the defendants believed to be narcotics proceeds. The individuals who purported to be operatives of a narcotics cartel were in fact undercover law enforcement officers (the “Undercover Agents”), and YOHANAN ELIGOOLA also attempted to sell those individuals various weapons, including surface-to-air missiles. YOHANAN ELIGOOLA was arrested on April 15, 2024, in New York, New York, and presented yesterday before U.S. Magistrate Judge Katharine H. Parker in the Southern District of New York. DAVID ELIGOOLA was arrested yesterday in Miami, Florida, and presented before a U.S. Magistrate Judge in the Southern District of Florida.
U.S. Attorney Damian Williams said: “As alleged, Yohanan Eligoola worked with individuals he believed to be representing a drug cartel to launder hundreds of thousands of dollars and to sell them deadly weapons, including surface-to-air missiles. Unbeknownst to him, those cartel members were in fact undercover FBI agents. Our law enforcement partners and the career prosecutors of this Office work relentlessly to disrupt dangerous criminal activity.”
FBI Special Agent in Charge Spencer L. Evans said: “FBI Las Vegas would like to thank our partners at the SDNY U.S. Attorney’s Office, FBI New York, and FBI Miami for their diligent work leading to these arrests. We are committed to working collaboratively and utilizing our partnerships to combat organized crime groups to stem the illegal flow of weapons that endangers U.S. national security.”
As alleged in the Complaints:[1]
The Undercover Agents represented to YOHANAN ELIGOOLA that they worked for a drug cartel, and YOHANAN ELIGOOLA arranged to launder their narcotics proceeds. Over the course of 2023, YOHANAN ELIGOOLA, DAVID ELIGOOLA — YOHANAN ELIGOOLA’s son — or their co-conspirators received large quantities of cash from the Undercover Agents on five separate occasions. In total, they received more than $500,000 in cash, and returned all of it — minus their fee — back to the Undercover Agents in the form of laundered cryptocurrency and bank wires.
YOHANAN ELIGOOLA informed the Undercover Agents that he could launder up to $1 million in cash per day on behalf of the cartel and that “the bank will never ask you a question” when YOHANAN ELIGOOLA transferred the laundered funds back to them.
Before he had received any money from the Undercover Agents, YOHANAN ELIGOOLA asked one of them if the money was “from drugs.” The Undercover Agents told him that it was and that they were “dealing with Colombians.”
YOHANAN ELIGOOLA also offered to sell the Undercover Agents various munitions and bragged that he controlled a large fraction of the defense industry in a particular country. YOHANAN ELIGOOLA further claimed that he marked up munitions he sold by approximately 500% because they were “black market.” The Undercover Agents informed YOHANAN ELIGOOLA that they “have issues with aircraft,” referred to “the fucking helicopters,” and asked for “stingers.” Because the Undercover Agents represented that they worked for a drug cartel, the Undercover Agents meant that government helicopters had been interdicting the operations of the cartel, and the Undercover Agents wanted Stinger missiles — which are man-portable surface-to-air missile systems that are effective in shooting down helicopters — in order to shoot down those helicopters.
YOHANAN ELIGOOLA asked the Undercover Agents to send him a list of the type of munitions they wanted to purchase and offered to let the Undercover Agents visit him in other countries to see the munitions firsthand.
The Undercover Agents subsequently requested a number of weapons, including rifles, grenades, rocket-propelled grenades, anti-tank weapons, suicide drones, and Stinger missiles. YOHANAN ELIGOOLA responded that he could provide most of those weapons and listed the prices he would charge. As to the Stinger missiles, YOHANAN ELIGOOLA offered FN-6 and FN-16 man-portable surface-to-air missile systems as alternatives.
On April 15, 2024, the Undercover Agents met with YOHANAN ELIGOOLA at a restaurant in New York, New York, in order to make a down payment on the surface-to-air missiles. The Undercover Agents provided YOHANAN ELIGOOLA with $690,000 in cash as a down payment for approximately eight such missiles. YOHANAN ELIGOOLA was then arrested by the FBI.
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YOHANAN ELIGOOLA, 58, of the nation of Georgia, and DAVID ELIGOOLA, 34, of Hallandale Beach, Florida, are each charged with conspiracy to launder money, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Micah Fergenson and Kevin Mead are in charge of the prosecution.
The charges contained in the Complaints 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 Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Furniture company employee sentenced to 5 years in prison for embezzling more than $26 million from employerRead the Press Release
COLUMBUS, Ohio – A Central Ohio man was sentenced in U.S. District Court here today to 60 months in prison for embezzling more than $26 million from his Columbus employer.
As part of his sentence, Yi He, 36, of Powell, will pay restitution to his former employer and to the IRS, and he will forfeit a Tesla vehicle.
According to court documents, Yi was a long-time and trusted employee of a furniture company that provides furniture to retailers like Wayfair, Overstock, Kohls, Walmart and Ashley. Yi was solely responsible for payroll and payroll tax-related duties for the company.
From 2018 until 2022, Yi embezzled money from the company’s bank account into his own personal and financial investment accounts. Yi submitted false and fraudulent bank and financial statements to the company’s leadership to remain undetected.
For example, in one wire transfer in February 2022, Yi wired himself $100,000. Yi falsified that month’s bank account statement by removing the transaction entirely.
In total, Yi stole $26.5 million from the company.
Yi also helped oversee an employee incentive LLC that rewarded company employees with 10 or more years of service. The LLC offered employees a way to earn more and supplement retirement. Yi similarly embezzled from the LLC’s bank accounts. For example, in one wire transfer in April 2022, he paid himself $200,000 by falsely categorizing the transfer as “Rent.” In total, he stole $635,000 from the LLC.
Yi failed to accurately report his income to the IRS for tax years 2018 through 2021, causing a total tax loss of approximately $6.8 million.
Yi pleaded guilty in August 2023 to committing wire fraud and filing a false tax return.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Deputy Criminal Chief Jessica W. Knight is representing the United States in this case.
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Fruitland Man Charged with Assault and Federal Firearms OffenseRead the Press Release
ALBUQUERQUE – A Fruitland man is facing federal charges following allegations that he and his brother instigated a confrontation at a residence which culminated in a standoff with law enforcement officers. Walliford Tso, 35, of Fruitland, and an enrolled member of the Navajo Nation, appeared in federal court for an initial appearance where the Court temporarily detained him pending a detention hearing, which is scheduled for April 17, 2024.
The criminal complaint alleges that on March 23, 2024, Tso and his brother, Justin Tso, went to Jane Doe’s home in Fruitland, New Mexico. Justin entered the home and asked Jane Doe for a cigarette. When she told Justin that she had no cigarettes, Justin took a machete that was lying near the front door without permission and walked away.
When Jane Doe’s significant other, John Doe 1, yelled after the brothers, a verbal altercation followed. After the exchange, the brothers chased John Doe into the house. As Jane Doe was locking the door behind him, the brothers kicked in the door, entered the home and assaulted John Doe.
John Doe was able to get away and exited the house with Jane Doe and their small child. Jane Doe and John Doe called 911 using their cellphone. A Navajo Police Department officer arrived during the incident and detained Tso’s brother before searching for Tso. The search led him to Tso’s parents’ house about 200 yards away. The officer went around to the back of the house and observed Tso hiding behind a structure with a rifle in his hands. Tso raised the rifle and pointed it at the officer, who took cover and gave Tso commands to drop the weapon. Tso eventually obeyed and was taken into custody.
Tso is charged with assault with a dangerous weapon, and using, carrying, and brandishing a firearm during and in relation to a crime of violence. If convicted of the current charges, Tso faces up to 17 years in prison followed by five years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Meg Tomlinson is prosecuting the case.
A criminal complaint 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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Four District Men Charged with PCP Conspiracy and Gun CrimesRead the Press Release
WASHINGTON – A 21-count superseding indictment, unsealed today in U.S. District Court, charges four Washington D.C. men — Lamont M. Langston, 43; Jamar Bennett, 44; Norman Morris, 43; and Kelvin Sanker, 42 — with distributing and conspiring to distribute mass amounts of phencyclidine (also known as PCP) in the metropolitan region, and with firearms offenses, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office, and Special Agent in Charge Jarod Forget, of the DEA Washington Division.
According to court documents, the defendants organized a drug trafficking organization that packaged and distributed multiple kilograms of PCP in the District of Columbia. Jamar Bennett allegedly sold PCP to undercover officers on numerous occasions in 2023 and 2024. The PCP was supplied by Langston, with assistance from Morris and Sanker. Bennett and Morris are also alleged to have dealt fentanyl in the District of Columbia, with Bennett selling large quantities of fentanyl to an undercover officer.
Langston was arrested on February 25, 2024, by MPD officers after fleeing from a police cruiser and discarding a handgun that had been converted into a machinegun with a “giggle switch.” Langston hid from law enforcement in the Watts Branch tributary stream until he was located with help from an MPD helicopter and extracted with an MPD K9. From Langston’s person, coat, and vehicle, law enforcement recovered an AK-style Mini Draco pistol loaded with 22 rounds of ammunition, a water bottle containing an amber liquid that tested positive for PCP, and nearly $10,000 in cash. Langston made his initial appearance in District Court on March 1, 2024.
Bennett was arrested March 6, 2024, and made his initial appearance the same day. During a search of his residence, law enforcement recovered a Ruger LC9 handgun. Today, April 17, Morris was arrested in Anne Arundel County and Sanker was arrested in Washington D.C. Morris and Sanker also made their first court appearances today.
All four defendants are charged with conspiring to distribute PCP. Langston is also charged with using, carrying, and possessing a machinegun in furtherance of a drug trafficking offense; and with two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. Bennett is charged with five counts involving the distribution of fentanyl, and nine counts involving distribution of PCP. Morris also faces a fentanyl distribution charge.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case is being investigated by DEA and FBI. It is being prosecuted by Special Assistant U.S. Attorney Adam Stempel and Assistant U.S. Attorney Peter Roman of the Violence Reduction and Trafficking Offenses Section.
An indictment is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent unless and until proven guilty.
Former Marine Sentenced to 15 Years for Distributing and Possessing Child PornographyRead the Press Release
RALEIGH, N.C. – A former marine was sentenced to 180 months in prison followed by 10 years of supervised release for distribution and possession of child pornography. Jonathon Allen Frew, age 33, pled guilty on August 17, 2023. He was also assessed $10,000 under the Justice for Victims of Trafficking Act and $5,000 under the Amy, Vicky and Andy Child Pornography Victim Assistance Act.
According to court documents and other information presented in court Frew was investigated by the Naval Criminal Investigative Services (NCIS) after Kik social media reported on five separate occasions one of its users had uploaded child pornography. Kik made the report to the National Center for Missing and Exploited Children who forwarded the report to NCIS after learning the Kik account and IP address used to upload the images were connected to Frew who was an active-duty Marine at the time.
Results from a Kik search warrant showed on one day Frew uploaded 24 images and videos of child pornography into a chat group. Pursuant to a search warrant, Frew’s home was searched, and digital devices were seized. Child pornography was located on his cellular device. In total Frew possessed approximately 250 images and 30 videos of child pornography. Frew ultimately admitted to law enforcement that he obtained child pornography and would later upload it to chat groups. Frew’s collection of images and videos included very young children, infants, and toddlers, as well as images depicting sadistic and masochistic conduct.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge James C. Dever III presided over the sentencing. The United States NCIS investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-CR-64-D.
Former KC Man Pleads Guilty to Attempting to Produce Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former Kansas City, Mo., man who moved to Mexico and lived under another name, pleaded guilty in federal court today to attempting to produce child pornography.
Wyatt Christopher Maxwell, also known as “Louis Whitaker,” 24, pleaded guilty before U.S. District Judge Roseann A. Ketchmark to one count of attempting to produce child pornography.
Maxwell lived in Kansas City, Mo., at the time of the offense, but afterward moved to Puerto Vallarta, Mexico, where he went by the name “Louis Whitaker” as a cabaret singer. He was arrested in Mexico following his indictment and has remained in federal custody since his arrest.
According to today’s plea agreement, the Overland Park, Kansas, Police Department received tips in February 2021, via the Greater Kansas City Crime Stoppers tipline, that Maxwell was producing child pornography with a 16-year-old resident of Overland Park. Maxwell reportedly uploaded the child pornography to various online accounts. The child victim told investigators that Maxwell had been recording sexually explicit videos of the two of them for several months. Some of the recordings were created at Maxwell’s residence and some were created in a nearby park.
Law enforcement agents interviewed Maxwell on Feb. 3, 2021. He confirmed he uploaded videos to his accounts on OnlyFans and JustForFans, for which he estimated he made from $3,000 to $10,000 per month from subscribers. Maxwell admitted he created approximately 20 videos where he was engaged in some type of sex act with the child victim. Those videos were uploaded to his OnlyFans and JustForFans accounts.
Investigators found 39 videos of child pornography that were downloaded on Maxwell’s cell phone, 96 videos of child pornography involving the child victim, and 24 images of child pornography involving the child victim.
Investigators confirmed payments from Maxwell’s OnlyFans account totaling $49,151, and from Maxwell’s JustForFans account totaling $2,954. There were 153 videos uploaded to the JustForFans account, 16 of which depicted sexual activity involving the child victim.
Under federal statutes, Maxwell is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Overland Park, Kan., Police Department.
Project Safe Childhood
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Employee of Defunct New Jersey Marble and Granite Company Admits Participating in $17 Million Bank FraudRead the Press Release
NEWARK, N.J. – A former employee of a now-defunct New Jersey-based marble and granite wholesaler today admitted his role in a scheme to defraud a bank in connection with a $17 million secured line of credit, U.S. Attorney Philip R. Sellinger announced.
Nitin Vats, 52, an Indian national, pleaded guilty before U.S. District Judge Susan D. Wigenton to count one of an indictment charging him with conspiracy to commit wire fraud affecting a financial institution.
According to documents filed in this case and statements made in court:
From March 2016 through March 2018, an owner and employees of Lotus Exim International Inc. (LEI), including Vats, conspired to obtain from the victim bank a $17 million line of credit by fraudulent means. The victim bank extended LEI the line of credit, believing it to have been secured in part by LEI’s accounts receivable. In reality, the conspirators had fabricated and inflated many of the accounts receivable, ultimately leading to LEI defaulting on the line of credit.
To conceal the lack of sufficient collateral, Vats created fake email addresses on behalf of LEI’s customers so that other LEI employees could pose as those customers and answer the victim bank’s and outside auditor’s inquiries about the accounts receivable. The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the victim bank losses of approximately $17 million.
The count of conspiracy to commit wire fraud affecting a financial institution to which Vats pleaded guilty carries a maximum potential penalty of 30 years in prison and a fine of $1 million. Sentencing is scheduled for Sept. 11, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
vats.indictment.pdfFlorida attorney sentenced to federal prison for role in COVID-19 fraud schemeRead the Press Release
SAVANNAH, GA: A Florida attorney has been sentenced to federal prison and ordered to pay restitution for participating in a scheme to illegally obtain funding from a federal COVID-19 small business relief program.
Shaquandra Woods, 41, of Jacksonville, Fla., was sentenced to 75 months in prison for Conspiracy to Commit Wire Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker, who presided over the four-day trial in which a federal jury convicted Woods, also ordered her to pay $42,848 in restitution and to serve three years of supervised release upon completion of her prison term. There is no parole in the federal system.
“Shaquandra Woods prolifically filed fraudulent applications for COVID-19 pandemic relief funds for herself and for others,” said U.S. Attorney Steinberg. “With our law enforcement partners, we will continue to prosecute those who engage in such self-enriching behavior at taxpayers’ expense.”
As authorized by the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL) to eligible small businesses experiencing substantial financial interruptions due to the COVID-19 pandemic. Woods, an attorney licensed to practice law in Florida and Georgia, completed at least nine applications for EIDL funding for herself and others, fabricating and submitting false documents to support the applications.
As a result of the fraudulent applications, Woods was successful in obtaining more than $300,000 for herself.
“Woods will now pay the price for stealing pandemic relief funds that others needed to keep a business open or to keep a roof over their heads,” said Supervisory Senior Resident Agent Will Clarke of FBI Atlanta’s Savannah Resident Agency. “Federal programs such as these are set up to help those in need, not to benefit criminals. Prosecution of those who illegally obtain government benefits will continue to be a priority for our office.”
“Today’s sentencing sends a clear message that those who defraud SBA’s programs will be held accountable,” said Amaleka McCall-Braithwaite, Special Agent in Charge of the Eastern Region of the SBA Office of Inspector General. “Our office will remain steadfast in pursuing those who exploit such vital resources for personal gain, ensuring accountability and justice for the American taxpayer. I want to thank the U.S. Attorney’s office and our law enforcement partners for their unwavering commitment to pursuing justice in this case.”
The case was investigated by the FBI and the Small Business Administration Office of Inspector General and prosecuted for the United States by Assistant U.S. Attorney Ryan C. Grover and Former Senior Litigation Counsel Jenna G. Solari.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Florida Man Charged with Sex Trafficking Multiple Women and Sexually Assaulting a Minor in New YorkRead the Press Release
An indictment was unsealed in Brooklyn, New York, today charging a Florida man with sex trafficking multiple women and coercion and enticement of a minor.
Joel David Forney, 41, of Kissimmee, was charged with sex trafficking; interstate transportation for purposes of prostitution; and coercion and enticement of a minor. Forney was arrested today and is scheduled to be arraigned this evening in the Middle District of Florida.
Forney allegedly trafficked women to work in commercial sex in New York, including at an open-air sex trafficking market along a stretch of Pennsylvania Avenue in Brooklyn known as the Penn Track, as well as the defendant’s transportation of women from New York to multiple other states, including Connecticut and Missouri, with the intent that they engage in commercial sex for his financial benefit. Forney is also charged with coercion and enticement of a minor.
According to the indictment, for years, Forney preyed on vulnerable women in tough financial circumstances by sex trafficking them, violently assaulting them and subjecting them to constant threats of violence.
If convicted, Forney faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Breon Peace for the Eastern District of New York and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.
The FBI New York Field Office is investigating the case.
Assistant U.S. Attorneys Lauren Elbert and Antoinette N. Rangel for the Eastern District of New York and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
If you are a victim of trafficking — whether by Forney or someone else — and have information to provide, please contact the FBI, which is prepared to help you regardless of your immigration status, at tips.fbi.gov or call 1-800-CALL-FBI.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five People Sentenced for Fentanyl Trafficking in the Eastern PanhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – Five people have been sentenced for their crimes involving fentanyl distribution across the Eastern Panhandle of West Virginia.
- Christopher Arthur Jones, also known as “Smooth,” of Philadelphia, Pennsylvania, was sentenced to 300 months in prison and 15 years of supervised release for racketeering enterprise (RICO) conspiracy and fentanyl distribution charges. Jones, age 39, was the leader of the organization, directing members of the enterprise to sell drugs, commit acts of violence, launder money, and commit fraud in West Virginia, Maryland, Pennsylvania, and Delaware. The business was based in Philadelphia, but Jones had drug houses in Martinsburg, West Virginia and elsewhere.
- Noah Izreel Neverdon, age 21, of Parkville, Maryland, was sentenced to 70 months in prison and 3 years of supervised release for conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. Neverdon sold fentanyl as a part of a drug operation from Baltimore to West Virginia.
- Dylan Moyers, age 24, of Romney, West Virginia, was sentenced to 41 months in prison and 3 years of supervised release for his role in a drug conspiracy, selling heroin and fentanyl in Hampshire and Mineral Counties. According to court documents, Moyers’ home was used as a heroin and fentanyl sales hub for the operation.
- Michael Nicholas Calder, also known as “Ice,” age 37, of Martinsburg, West Virginia, was sentenced to 85 months in prison and 3 years of supervised release for the distribution of fentanyl and cocaine base. According to statements made in court, a traffic stop of Calder’s vehicle yielded fentanyl pills, cocaine, and eutylone.
- Russell Guy Fitzgerald, age 61, of Rawlings, Maryland, was sentenced to 30 months in prison and three years of supervised release for conspiracy to possess with intent to distribute and to distribute fentanyl. According to court documents and statements made in court, Fitzgerald, also known as “Rusty,” was selling fentanyl from his Maryland home and a home in Mineral County, West Virginia. Searches of both locations resulted in the seizure of fentanyl capsules, methamphetamine, cocaine, and 20 firearms.
Assistant U.S. Attorney Lara Omps-Botteicher and Assistant U.S. Attorney Kyle Kane prosecuted the cases on behalf of the United States.
The agencies involved in the various investigations include: the Federal Bureau of Investigation; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Potomac Highlands Drug Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard.
The Jones matter 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.
U.S. District Judge Gina M. Groh presided.
Five Individuals Charged in Elder Fraud Scheme, Including Two In-Home CaretakersRead the Press Release
BIRMINGHAM, Ala. – Five individuals have been charged in an elder fraud scheme, announced U.S. Attorney Prim Escalona and FBI Special Agent in Charge Carlton L. Peeples.
In March, a twelve-count indictment filed in U.S. District Court charged Mykia Henderson, 32, of Moody, Cynthia H. Mixon, 50, of Fairfield, and Corey Webb, 44, of Moody, with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
According to the indictment, between December 2020 and February 2022, Mixon and Henderson, who are mother and daughter, were the caretakers for the elderly victim. Corey Webb was Henderson’s husband. During this time, the three defendants devised a scheme to defraud the victim by charging the victim’s credit cards through accounts set up by Square, Inc. and Stripe, Inc., issuing checks to themselves drawn on the victim’s bank accounts, and transferring the funds they received to their own personal bank accounts.
Two additional defendants have also been charged related to this scheme.
In March, Whitney Wallace, 33, of Birmingham, was charged in an information with wire fraud. According to the information, Wallace was employed as the victim’s house cleaner. Between December 2021 and March 2022, Wallace stole the victim’s credit card information and continued using the card to make purchases for personal items after she stopped working for the victim. Wallace used the fraudulently obtained credit card information to purchase items from Amazon.com, Target.com, and DoorDash in the amount of approximately $43,227.12.
In January, Shakira English, 23, of Birmingham, was charged in an eleven-count indictment with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. English was a hairdresser. She maintained a payment-processing account with Square, Inc. that she would use to charge customers’ credit or debit cards for payment. Between May 2020 and October 2021, English used her Square, Inc. account to fraudulently charge the victim’s credit cards over $130,000 and then transferred the funds into her personal bank account.
The maximum penalty for conspiracy to commit wire fraud and for wire fraud is 20 years in prison. The mandatory minimum sentence for aggravated identity theft is two years.
The Mountain Brook Police Department and FBI investigated the case. Assistant U.S. Attorney Ryan S. Rummage 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.
Final defendant sentenced in Gloucester meth trafficking conspiracyRead the Press Release
NEWPORT NEWS, Va. – A Gloucester man was sentenced today to 12 years in prison for trafficking methamphetamine.
According to court documents, as early as May 1, 2020, Jeremy John Gleason, 42, began selling meth in Gloucester. A confidential source told investigators that after Gleason went “dry” due to his source of supply being impacted by COVID, he tried to corner the meth market in Gloucester by buying “everything.” Gleason purchased large amounts of meth every two days and distributed it to co-conspirators.
On April 6, 2021, law enforcement conducted a controlled purchase of meth in which Gleason sold 14.2 grams of meth. On April 20, 2021, Gleason sold 14.7 grams of meth during another controlled purchase.
On Nov. 30, 2023, Gleason pleaded guilty to conspiracy to distribute methamphetamine. He was accountable for distributing over 9,000 grams of meth during the conspiracy. He is the final conspirator to plead guilty and be sentenced for his role in the conspiracy.
Andrew Ryan Higgins, 29, of North, Virginia, pleaded guilty on Aug. 30, 2023, to conspiracy to distribute methamphetamine. On Dec. 18, 2023, he was sentenced to 12 years in prison.
Johnathan Willard Lowney, 42, of Hayes, Virginia, pleaded guilty on Sep. 5, 2023, to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On Jan. 9, he was sentenced to 15 years in prison.
Kenneth Dale Lowney, 39, of Gloucester, Virginia, pleaded guilty on Aug. 31, 2023, to conspiracy to distribute methamphetamine. On Jan. 4, he was sentenced to 10 years in prison.
Patrick Sean McNulty, 34, of Hayes, pleaded guilty on Aug. 14, 2023, to conspiracy to distribute methamphetamine. On Dec. 20, 2023, he was sentenced to four years and four months in prison.
Amanda Nicole Carter, 38, of Gloucester, pleaded guilty on Sep. 5, 2023, to conspiracy to distribute methamphetamine. On Jan. 9, she was sentenced to nine years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Darrell W. Warren, Jr., Gloucester County Sheriff; and Ron Montgomery, York County Sheriff, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Assistant U.S. Attorneys Devon Heath and Peter Osyf prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-40.
Felon Who Pretended to Work for the ATF to Steal Firearms Sentenced to Federal PrisonRead the Press Release
A felon who possessed twenty firearms in May and June 2023 was sentenced on April 11, 2024, to more than eight years in federal prison.
Ken Nakato, age 36, from Coralville, Iowa, received the prison term after an October 20, 2023 guilty plea to one count of possession of a firearm by a felon.
Information from a plea agreement and sentencing hearing showed that on May 17, 2023, Hiawatha police officers responded to a domestic disturbance involving Nakato. Officers began to assist Nakato with removing his belongings, including several firearms, from a residence, but a criminal history check showed Nakato had a felony conviction. Nakato falsely denied being a felon. Officers seized seven firearms, including a short-barreled rifle, from the residence and Nakato’s car.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) spoke with Nakato at his residence on May 19, 2023, and Nakato admitted that he was not allowed to possess firearms. That night, Nakato texted someone else that he was officially an employee of the ATF, which would be “a clear record.” On May 23, 2023, Nakato told an acquaintance that he was working for the ATF, and he needed to seize the acquaintance’s firearms. Nakato took seven firearms and thousands of rounds of ammunition from the acquaintance. Law enforcement subsequently seized these seven firearms from Nakato on May 24 and May 25, 2023.
On June 7, 2023, Nakato convinced a family member to buy two firearms for him from a licensed firearms dealer in Coralville. He was in possession of one of those firearms on June 15, 2023, when he was pulled over by Iowa City police officers. Between May 17, 2023, and June 15, 2023, Nakato possessed at least twenty firearms.
Nakato was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Nakato was sentenced to 100 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Nakato is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hiawatha Police Department, the Iowa State Patrol, the Coralville Police Department, and the Iowa City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-0048.
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Federal Jury Finds District Man Guilty of Transporting and Possessing Child PornographyRead the Press Release
WASHINGTON – Stephen Rattley Johnson, 36, of Washington, D.C., was found guilty today of transporting and possessing child pornography. The jury verdict, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
According to court documents and the evidence presented at trial, on September 21, 2020, and October 1, 2020, Johnson uploaded hundreds of child pornography files to his Google Drive cloud storage account. Google identified 220 of the files as known child pornography and closed Johnson’s account. Consistent with its statutory obligations, Google reported the material to the National Center for Missing and Exploited Children, which in turn referred the matter to law enforcement. Investigators obtained the contents of Johnson’s Google account, which included hundreds of child pornography files.
Law enforcement arrested Johnson on October 7, 2021, and searched his then-residence in the H Street Corridor of Northeast Washington. Among other evidence, law enforcement seized his cellphone and the laptop Johnson had used to upload the child pornography. Although Johnson deleted the child pornography from his computer after Google closed his account, digital forensics experts were able to recover artifacts showing that Johnson had downloaded many of the files as early as April 2020 and that he had opened and watched them. Many of the files are videos depicting the rape and sadistic sexual abuse of prepubescent girls. In addition, Johnson’s web browser history showed that he had navigated to child pornography online—including several of the files he later uploaded to Google—and evidence from his cellphone showed that he continued to seek out child pornography even after Google closed his account.
The jury found Johnson guilty of five counts of transportation of child pornography and one count of possession of child pornography. On the possession count, the jury further found that the child pornography involved minors under 12 years of age, an aggravating circumstance that doubles the statutory maximum sentence. The Honorable Carl J. Nichols, who presided over the trial, has ordered Johnson detained pending sentencing.
Transportation of child pornography carries a mandatory minimum term of five years in prison and a statutory maximum of 20 years in prison. Possession of child pornography involving minors under 12 years of age carries an enhanced maximum term of 20 years in prison. The offenses also carry potential financial penalties, including mandatory restitution for identified victims. The maximum statutory penalties for federal offenses are prescribed by Congress and are provided here for informational purposes only. The sentence imposed in this case will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI Washington Field Office and Metropolitan Police Department’s Child Exploitation and Human Trafficking Task Force, the Northern Virginia and Washington, D.C., Internet Crimes Against Children Task Force, and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Assistant U.S. Attorney Paul V. Courtney and Special Assistant United States Attorney Ryan Lipes of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
The prosecution team received valuable assistance from the High Technology Investigative Unit at CEOS, and all of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marissa Mondelli and Carolyn Carter-McKinley, former Paralegal Specialist Alexis Spencer-Anderson, Victim–Witness Service Coordinator Tonya Jones, Supervisory Litigation Technology Specialist Leif Hickling, and Assistant U.S. Attorneys Janani Iyengar and Jocelyn Bond.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Indictment Charges Willimantic Man with Stealing More Than 30 Guns from Newington Gun StoreRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in New Haven returned an indictment yesterday charging KWITZPATRICK DUFFANY, 36, formerly of Willimantic, with firearm and drug offenses stemming from an investigation into the theft of more than 30 firearms from a Newington gun store last year.
As alleged in the indictment, on May 27, 2023, Duffany stole more than 30 firearms from Hoffman’s “Guns for the Good Guys,” a federal firearms licensee located in Newington. On that date, Duffany also possessed with intent to distribute fentanyl and cocaine, and used a firearm in relation to that offense.
It is alleged that Duffany’s criminal history includes two state convictions for burglary in the third degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Duffany with theft of firearms from a licensee, an offense that carries a maximum term of imprisonment of 10 years; unlawful possession of firearms by a felon, an offense that carries a maximum term of imprisonment of 15 years; possession with intent to distribute fentanyl and cocaine, an offense that carries a maximum term of imprisonment of 20 years; and use of a firearm during and in relation to a drug trafficking crime, an offense that carries a mandatory consecutive sentence of at least five years.
Duffany has been detained since his arrest on unrelated state charges on May 31, 2023.
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) and the Newington Police Department, with the assistance of the Connecticut State Police and the Willimantic Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert S. Dearington.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of New Britain for its cooperation in investigating and prosecuting this matter.
Edinburg man sentenced for distributing child pornographyRead the Press Release
McALLEN, Texas – A 27-year-old local man has been sentenced for distribution of child pornography depicting prepubescent minors via a social media messaging application, announced U.S. Attorney Alamdar S. Hamdani.
Ryant Rodriguez pleaded guilty March 9, 2022.
Chief U.S. District Judge Randy Crane has now sentenced Rodriguez to 132 months in federal prison to be immediately followed by five years of supervised release. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Rodriguez distributed multiple images and videos depicting child pornography as a member of a social media group chat dedicated to the trade and exchange of child pornography.
The investigation revealed he was also in possession of approximately 963 pornographic images depicting children between the ages of five to 10 on his phone at the time of his arrest.
Rodriguez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Winnebago County Sheriff’s Office conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Dupo School District Employee Accused of EmbezzlementRead the Press Release
EAST ST. LOUIS, Ill. – A Waterloo woman is facing multiple federal charges after being accused of embezzling money from 2020-2022 as an employee at Dupo Community Unit School District #196.
A grand jury charged Linda J. Johnson, 57, with three counts of theft from federally funded programs. If convicted, Johnson could face up to 10 years’ imprisonment and/or $250,000 in fines per count.
“When individuals steal funds from school districts, they selfishly place themselves above the students, faculty and community as a whole,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, Johnson worked an administrative role in the superintendent’s office for Dupo Community Unit School District #196. In this role, Johnson oversaw the district’s activities account with funds for student athletics, clubs, and extracurriculars.
The indictment charges that Johnson received control over cash and checks intended to be deposited into the district’s activities account. She would prepare bank deposit slips reflecting the correct amount of cash and checks received, but later she prepared a second set of fraudulent deposit slips that only accounted for the checks, while she kept the cash. The loss to the school district is estimated to be more than $100,000.
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant,” said Acting Special Agent in Charge Joe Rodriguez. “We would like to thank the Dupo Police Department for their assistance and proactive efforts in this investigation.”
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The FBI Springfield Field Office and the Dupo Police Department are leading the investigation. Assistant U.S. Attorney Steve Weinhoeft is prosecuting the case.
Dubuque Man Sentenced to More than a Decade in Prison for His Role in Shooting Outside Dubuque BarRead the Press Release
A Dubuque man who fired a gun near a group of people following a fight was sentenced on April 16, 2024, to more than 12 years in prison.
Marvin Brantley, age 31, from Dubuque, Iowa, received the prison term after a November 13, 2023, guilty plea to possession of a firearm by a felon.
Information disclosed during the plea and sentencing hearings revealed that on April 8, 2023, Brantley was involved in a fight outside a bar in Dubuque, Iowa. Brantley and a group of people were observed on surveillance video fighting with another group of people. At one point, a victim fell on the ground and Brantley stomped on him twice. The groups separated and as Brantley and his group were walking through the parking lot of a bar, Brantley pulled a gun out and fired at the group. Several people were standing outside the bar at the time. No one was hurt. Following the shooting, officers searched Brantley’s house. They found marijuana but no firearm. Brantley was arrested on related state charges. While in custody, Brantley called his sister and, talking in code, directed her to his house where he told her the firearm was hidden. Over the course of multiple calls, Brantley’s sister located the firearm. Brantley directed her to wash the gun and throw it away. Based on the phone calls, officers searched the sister’s residence. While they did find a gun, it was not the gun used in the shooting. The sister admitted that she took the gun to Chicago and left it with a family member. The sister was able to get the gun back and turned it into law enforcement.
Brantley was a felon at the time of the shooting. He has seven prior adult criminal convictions, four of which involve violence or assaultive conduct.
Brantley was sentenced in Cedar Rapids by Chief United States District Court Judge C.J. Williams. Brantley was sentenced to 145 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1021.
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District Man Pleads Guilty to Use of Firearm in Drug Crime Amidst Investigation into StabbingRead the Press Release
WASHINGTON – Darnell Lamont Savoy, 24, of Washington, D.C., pleaded guilty today to possessing a firearm in furtherance of a drug trafficking offense, which was revealed during the investigation into an October 2022 stabbing that Savoy committed while he was on release and under indictment for the December 2018 near-murder shooting of a 14-year-old boy in Northeast Washington, D.C.
The plea was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Savoy pleaded guilty today before U.S. District Court Judge Timothy J. Kelly to the use of a firearm in furtherance of a drug trafficking offense. Judge Kelly set a sentencing date for August 2, 2024. Savoy faces at least five years and a maximum of life in prison on the charge. A district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Over the federal government’s written and oral objections, in 2021, Savoy was released from custody while awaiting trial in Superior Court on charges of assault with intent to kill while armed and related offenses stemming from the 2018 shooting.
According to court documents, months later, on October 11, 2022, Savoy allegedly stabbed a person during an argument and fled the scene. Investigators tracked Savoy to the 3900 block of Southern Avenue, SE. On the morning of October 21, 2022, MPD officers and FBI agents executed a search warrant at an apartment unit where Savoy was staying with a woman and a 3-year-old child. During the search, law enforcement found a plastic bag containing 4.55 grams of an off-white powder, a digital scale with white powder residue, a red cut straw with white powder residue, and a two-pack of naloxone. The powder and the residues tested positive for fentanyl.
In a blue jacket that contained Savoy’s ID and credit card, investigators discovered 27 zip baggies with an off-white powder weighing a total of 7.3 grams, 29 blue pills stamped M30, 16 red zip baggies containing an off-white powder weighing nearly 5 grams, and $473 in U.S. currency. The powders tested positive for fentanyl.
In a hall closet, on top of a dryer, officers discovered a loaded, unregistered, semi-automatic Glock 30, loaded with 24 rounds of .45 caliber ammunition. DNA testing linked Savoy to the firearm. The fentanyl recovered during the search warrant was found in a common area of the apartment that the three-year-old had access to, which could have led to the death or serious injury of the child.
On March 29, 2024, Savoy and two co-defendants pleaded guilty in Superior Court to their roles the December 28, 2018, shooting of a father and son in the Clay Terrace neighborhood. Savoy was driving when his co-defendant fired 30 shots into an SUV in which the father and son were sitting. The boy was shot nine times, including in the head, abdomen, chest, and back. The father sustained gunshot wounds to his leg and hand. Superior Court Judge Michael O’Keefe scheduled sentencing for June 23, 2024.
The federal case is being investigated by the FBI Washington Field Office and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Alicia Long and Special Assistant U.S. Attorney Adam Stempel. Valuable assistance was provided by Assistant U.S. Attorney William G. Hart and former Special Assistant U.S. Attorney Sarah J. Rasalam.
The shooting of the boy and his father was investigated by the Metropolitan Police Department, FBI and the United States Attorney’s Office. It is being prosecuted by Assistant U.S. Attorneys Kimberley Nielsen and Sharon Donovan.
Deputy Attorney General Lisa Monaco Announces New Crime Gun Intelligence Center in ChicagoRead the Press Release
Alongside state and local law enforcement partners in Chicago, Deputy Attorney General Lisa O. Monaco and Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced today the opening of a new Crime Gun Intelligence Center (CGIC) in Chicago.
“Chicago's expanded crime gun intelligence center uses cutting-edge technology to trace crime guns, link ballistics evidence to connect shootings, and identify gun traffickers and straw purchasers who arm violent criminals,” said Deputy Attorney General Monaco. “By combining talent, technology, and data from 13 agencies in a single hub, law enforcement in Chicago will generate more leads to take repeat shooters off the streets, so we can push case-closure rates up and drive violent crime rates down. To continue our historic progress against violent crime, we need to bring more crime gun intelligence to more law enforcement agencies, in more jurisdictions, more quickly than ever before.”
“We are putting agents, cops, detectives, deputies, and prosecutors, all from different agencies across law enforcement, in one room working together. Each morning, they are reviewing key evidence from the previous night’s shootings, using real-time, state of the art intelligence. It is a true game changer. CGICs make homicide cases. CGICs stop the next shooting. And CGICs help identify illegal sources and stop the guns that are getting to the shooters,” said ATF Director Steve Dettelbach. “I want to commend the ATF Chicago leadership and the dozen law enforcement agencies that have committed to working together under one roof with a focus on real-time ballistics testing and firearms tracing. Without all of them, this CGIC does not happen. This level of partnership is truly exceptional. Chalk one up for the good guys.”
CGICs are centralized law enforcement hubs that focus exclusively on investigating and preventing gun violence in local communities. They use cutting-edge technologies, including ATF’s National Integrated Ballistic Information Network (NIBIN) and eTrace systems, to rapidly develop and pursue investigative leads in order to drive case clearance rates up — which in turn can help drive violent crime rates down. They bring together, under one roof, the expertise of firearm evidence examiners, intelligence analysts, and investigators to rapidly collect, analyze, and share information about guns used in violent crimes. In total, ATF operates more than 60 CGICs nationwide.
“The CGIC in Chicago will allow us to identify specific incidents and trends in firearm offenses, enabling us to move quickly in investigating and prosecuting violent crimes in the most appropriate venue,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “The CGIC is a significant investment from the Justice Department to accelerate our efforts to reduce violent crime in the Northern District of Illinois.”
“This unprecedented partnership in Chicago among local, state, and federal law enforcement will ensure the prompt and comprehensive delivery of intelligence related to firearms used in crimes,” said Special Agent in Charge Christopher Amon of the ATF Chicago Field Division. “The timely tracing of recovered firearms and NIBIN analysis of cartridge cases will produce comprehensive intelligence vital to solving gun crime in our communities.”
“This CGIC brings together different areas of the government that are all committed to saving lives and preventing the gun violence plaguing our communities,” said Superintendent Larry Snelling of the Chicago Police Department. “Partnership and collaboration are vital to strengthening public safety across Chicago. The CGIC is that partnership in action.”
Thirteen agencies across federal, state, and local law enforcement are co-located within the new CGIC, focusing on real-time comprehensive ballistics testing and firearms tracing, two of ATF’s fundamental pillars of Crime Gun Intelligence. Also co-located at the CGIC are federal and state prosecutors to ensure the charging process is timely and effective. The Chicago CGIC partners include ATF, the U.S. Attorney’s Office for the Northern District of Illinois, Chicago Police Department, Cook County Sheriffs Police, Homeland Security Investigations, Drug Enforcement Administration, FBI, U.S. Secret Service, Illinois State Police, Chicago High Intensity Drug Trafficking Area, Cook County State’s Attorney’s Office, Illinois Attorney General’s Office, Illinois Department of Corrections, and Justice Department’s Bureau of Justice Assistance.
Del Rio Gang Member Sentenced to 10 Years in Prison for Firearm Theft that Led to 2019 MurderRead the Press Release
DEL RIO, Texas – A Del Rio man was sentenced in a federal court in Del Rio to 120 months in prison for possession of a stolen firearm.
According to court documents, Jaime Rivera, 49, burglarized a U.S Border Patrol agent’s home in April 2019, and stole nine firearms. Rivera and a codefendant, Manuel Angel Lomas aka Emanuel Lomas, sold several of the firearms, one of which was used by codefendant Robert Evans Jr. to murder Amanda Riojas. The weapon was disposed of and recovered in the San Felipe Creek.
“Jaime Rivera sold several firearms that he had stolen from a federal agent, which ultimately played a part in the murder of a 26-year-old Del Rio woman,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I thank our partners at Homeland Security Investigations for their investigative work in this case, and the Val Verde County Sheriff’s Office for their vital collaboration that led to these arrests and successful prosecutions.”
“This sentence represents another important stride in the tireless work by HSI and its law enforcement partners to target and ultimately dismantle the transnational street gangs that are spreading crime and violence throughout our communities," said Special Agent in Charge Craig Larrabee for HSI San Antonio. “Our efforts to combat this threat are still very much ongoing. To gang members who are still out there committing crimes, HSI sends a clear message: ‘The long arm of the law will reach you, and you too will face the consequences of your egregious behavior.”
Evans Jr. and Lomas were indicted alongside Rivera in 2019. On Sept. 14, 2022, Evans Jr. was sentenced to 120 months in prison with credit for time served. Lomas remains in federal custody and is scheduled to be sentenced July 26. In 2022, Evans Jr. was also sentenced in state court to serve 45 years in state prison, which he’ll serve after his federal imprisonment.
HSI led investigation with valuable assistance from the Val Verde County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Josh Garland and Rex Beasley prosecuted the case.
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Crow Agency man admits assaulting woman on Crow Indian ReservationRead the Press Release
BILLINGS — A Crow Agency man accused of punching a woman in the face admitted to an assault charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Darek Paul Birdinground, 33, pleaded guilty to assault resulting in serious bodily injury as charged in an indictment. Birdinground faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 14. Birdinground was detained pending further proceedings.
The government alleged in court documents that while investigating a separate, unrelated assault, the FBI learned in June 2023 of an assault that occurred on Jan. 21, 2023 in Crow Agency, on the Crow Indian Reservation. Agents with the FBI and Bureau of Indian Affairs learned that the victim, identified as Jane Doe, was driving a truck in Crow Agency when she saw an SUV coming up fast behind her, so she pulled over. Doe’s driver window was rolled down. Birdinground, the driver of the SUV, got out carrying a baseball bat and approached Doe. He was angry and asked Doe a question. Confused, Doe looked at a passenger and when she turned back toward Birdinground, he punched her in the left eye. Birdinground then used the baseball bat to break the windows of the truck. Doe suffered loss of vision in her eye.
Assistant U.S. Attorney Lori Harper Suek is prosecuting the case. The FBI and BIA conducted the investigation.
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Clewiston Felon Pleads Guilty to Firearms and Drug Trafficking OffensesRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Javier Velasquez, Jr. (38, Clewiston) has pleaded guilty to two counts of distribution of cocaine, three counts of felon in possession of firearms, one count of illegal possession of a machinegun, and one count of carrying firearms during and in relation to a drug trafficking crime. Velasquez faces a minimum mandatory penalty of five years, up to life, in federal prison. A sentencing date has not been set.
According to court documents, between July 13 and September 19, 2023, Velasquez sold an undercover federal agent cocaine, multiple firearms, and a Glock switch. A Glock switch enables a semi-automatic firearm to operate as a fully functioning machine gun. Velasquez is a convicted felon and therefore is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mark Morgan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Cedar Rapids Man Pleads Guilty to Escape from Federal CustodyRead the Press Release
A man who escaped from custody in the Gerald R. Hinzman Center pled guilty on April 16, 2024, in federal court in Cedar Rapids.
Casey Duhme, age 34, from Cedar Rapids, Iowa, was convicted of one count of escape from federal custody. At the plea hearing, Duhme admitted that he was in custody at the Hinzman Center under a federal court order pursuant to his prior conviction for conspiracy to manufacture methamphetamine. Duhme admitted that, between June 12, 2023, and August 31, 2023, he left custody without authorization by failing to return to the Hinzman Center as required.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Duhme remains in custody of the United States Marshal pending sentencing. Duhme faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the United States Marshals Service and the Northern Iowa Fugitive Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 24-20.
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Calloway County Felon Sentenced to over 3 Years for Illegally Possessing a FirearmRead the Press Release
Paducah, KY – A Calloway County man was sentenced yesterday to 3 years and 10 months in prison for illegally possessing a firearm after having been previously convicted of a felony offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Sheriff Nicky Knight of the Calloway County Sheriff’s Office made the announcement.
According to court documents, Ronnie Harold Sharp, 49, was sentenced to 3 years and 10 months in prison, followed by 3 years of supervised release, for unlawfully possessing a Smith & Wesson, model SW40VE, .40 caliber semiautomatic pistol and a Smith & Wesson, model 32-1, .38 caliber revolver on March 14, 2022. Sharp was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On June 10, 2013, in Calloway Circuit Court, Sharp was convicted of theft by unlawful taking over $500, theft of an automobile, two counts of first-degree wanton endangerment, receiving stolen property over $500, first-degree fleeing or evading police, and manufacturing methamphetamine, first offense.
On May 5, 2005, in Calloway Circuit Court, Sharp was convicted of two counts of complicity to second-degree assault, criminal attempt to manufacture methamphetamine, and possession of anhydrous ammonia.
There is no parole in the federal system.
This case was investigated by the Calloway County Sheriff’s Office and the ATF Paducah Satellite Office.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Buffalo man arrested, charged with enticement of minorRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Nasif Talukder, 22, of Buffalo, NY, was arrested and charged by criminal complaint with sexual enticement of a minor, which carries a mandatory minimum penalty of 10 years in prison.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, a 14-year-old girl (minor victim) met Talukder on Teen-Chat.org. Talukder offered her $100 to engage in sexual activity and the two made plans to meet. On the morning of March 30, 2024, an individual who knows the minor victim saw her getting into a vehicle later identified as Talukder’s vehicle. The individual contacted the minor victim’s parent, who then notified the Town of Tonawanda Police Department. A subsequent investigation resulted in Talukder’s arrest. A search of the minor victim’s phone recovered multiple screenshots of the “Teen-Chat.org” conversation between the minor victim and Talukder.
Talukder made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on home detention with electronic monitoring.
The complaint is the result of an investigation by the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Billings man admits to illegal possession of silencerRead the Press Release
BILLINGS — A Billings man today admitted to a firearms crime after law enforcement located a silencer along with 14 firearms in his residence while conducting an investigation, U.S. Attorney Jesse Laslovich said.
The defendant, William Henry Alberts, 66, pleaded guilty to possession of an unregistered firearm. Alberts faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 14. Alberts was released pending further proceedings.
In court documents, the government alleged that on April 25, 2023, Alberts and another man were on a motorcycle when they were pulled over for a traffic stop. The other person had abandoned a stolen four-wheeler and was taken into custody. Alberts was allowed to walk back to his property. In the meantime, law enforcement secured Alberts’ property, believing that federal fugitive was living on the property. When Alberts arrived home, he gave law enforcement permission to search his home for the fugitive. During the search, law enforcement saw a shotgun in plain view. Alberts admitted that he was convicted of a drug felony in 1992 and admitted that there were at least 10 firearms in the house. Officers executed a search warrant and found 14 firearms, methamphetamine and assorted ammunition. Officers also located a black suppressor/silencer. The silencer was not registered as required by law, and so the possession violated federal firearms laws.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Beckley Man Pleads Guilty to Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Derrick Lee Hodge, 35, of Beckley, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on February 1, 2023, Hodge sold a controlled substance containing fentanyl to a confidential informant at a Beckley hotel where Hodge was staying. Hodge admitted to the transaction and further admitted to selling controlled substances containing fentanyl to a confidential informant on January 26 and January 31, 2023, in Beckley.
On February 2, 2023, law enforcement officers executed a search warrant at Hodge’s Beckley hotel room. Officers seized a small bag containing cocaine, a set of digital scales with purple residue, plastic bags $347 and a Ruger Model EC9S 9mm semi-automatic handgun during the search. Hodge admitted that he was distributing drugs out of the hotel room and possessed the seized firearm.
Hodge is scheduled to be sentenced on August 2, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-139.
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Alyssa Burkett Murder Trial: Jury Convicts Holly Elkins of Orchestrating KillingRead the Press Release
A Rowlett woman who helped her fiancé orchestrate the brutal murder of his ex-girlfriend was convicted at trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Holly Ann Elkins was indicted in June 2023. On Wednesday, after seven days of trial and an hour and a half of deliberation, a jury convicted her of conspiracy to stalk, stalking using a dangerous weapon resulting in death, and brandishing a firearm in relation to a crime of violence.
Her former fiancé, Andrew Beard, previously pleaded guilty to stalking using a dangerous weapon resulting in death and discharging a firearm during a crime of violence and was sentenced to 43 years in federal prison.
“Holly Elkins and Andrew Beard constructed a campaign of terror aimed at Alyssa Ann Burkett, the mother of Mr. Beard’s young daughter. After months of harassment and stalking, this campaign ended in the incredibly violent murder of Alyssa at the hands of Mr. Beard with Ms. Elkins’s full participation and knowledge in the planning and ensuing attempted cover-up. This U.S. Attorney’s Office, and the Department of Justice as a whole, are committed to bringing those guilty of such heinous domestic violence to justice. I pray that today’s verdict brings the victim’s family the peace they need to move forward. I know they will never allow Alyssa’s daughter to forget just how much her mother loved her,” said U.S. Attorney Leigha Simonton.
According to evidence presented at trial, Ms. Elkins helped plot the Oct. 2, 2020 murder of 24-year-old Alyssa Ann Burkett, Mr. Beard’s ex-girlfriend, with whom he shared a young daughter.
The government argued that Ms. Elkins – who apparently dreamt of a life with Mr. Beard and a mother/ child relationship with his daughter – repeatedly attempted to call into question Ms. Burkett’s fitness as a parent. When that failed, Ms. Elkins goaded Mr. Beard into taking Ms. Burkett’s life, labeling the victim a “c**t” and a “dumb b**ch” and a “garbage s**t mom.”
The perpetrators’ relationship began in early April 2020. Later that month, Ms. Elkins spent her first weekend with Mr. Beard and his daughter. By May, the couple were shopping for engagement rings. In June, however, Ms. Elkins grew frustrated at Mr. Beard’s continuing association with Ms. Burkett, writing, “your BM [baby mamma] owns you,” “you continue to put BM first,” “you choose to be idk for lack of a better term submissive to her,” and “I don’t have want or need any bullshit from anyone.”
Ms. Elkins began a campaign to harass Ms. Burkett in summer 2020, shortly after Ms. Elkins moved into Mr. Beard’s home.
In June, Ms. Elkins and Mr. Beard conspired to place a GPS tracker on Ms. Burkett’s vehicle. A month later, Ms. Elkins placed a call to 911 under the name fake “Amber,” falsely claiming that Ms. Burkett’s car was driving erratically on the interstate. In August 2020, Ms. Elkins falsely reported to police that Ms. Burkett’s mother had attacked her, creating scratches on her own chest to support the lie. Five days later, Ms. Elkins and Mr. Beard paid a private investigator to dig up dirt on Ms. Burkett and her new boyfriend. (The investigator, who testified at trial, found nothing incriminating.) In September, Ms. Elkins helped Mr. Beard plant drugs and a gun in Ms. Burkett’s vehicle; Mr. Beard then placed a call to police under a fake name claiming Ms. Burkett was selling drugs to black men out of her car.
Then, on Sept. 10, just three weeks before the murder, Ms. Elkins accompanied Mr. Beard to a sporting goods store, where he purchased a black rainsuit in cash. On Sept. 14, two and a half weeks before the murder, Ms. Elkins purchased dark makeup from a drug store. On Sept. 19, she accompanied Mr. Beard to a big box store, where they purchased .410 shotgun shells and a Camillus knife.
One week prior to the murder, Ms. Elkins texted Mr. Beard and said “I hope you handle it.” She requested that he be “ride or die” for her and said if he was not, she is not sure the relationship can continue. Shortly after that text exchange, Google records reflect that Andrew Beard began conducting searches for how to remove gunpowder from his hands.
On Oct. 2, 2020, Mr. Beard, dressed in a black rainsuit and disguised as a Black man, shot Ms. Burkett in the head with a shotgun while she sat behind the wheel of her car in her work parking lot. As she staggered out of the car, Mr. Beard grabbed her and stabbed and slashed her 44 times. Her coworkers testified at trial that they found Ms. Burkett covered in blood and gasping for air in front of her office front door. She died as her coworkers tried to render aid to her.
During the murder, Ms. Elkins stayed at Beard’s home in Rockwall with Ms. Burkett’s daughter. In an attempt to create an alibi, she later claimed Mr. Beard had been home with her during the crime.
At the trial, Ms. Burkett’s new boyfriend testified that he believed Ms. Elkins was the “puppet master” behind the murder.
Ms. Elkins now faces up to life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the Carrollton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Gary Tromblay, Rick Calvert, and Ryan Niedermair are prosecuting the case. U.S. District Judge Jane Boyle presided over trial.
Alabama Tax Preparer Sentenced for False Tax Return SchemeRead the Press Release
An Alabama man was sentenced yesterday to 30 months in prison for conspiring to prepare and file false tax returns for clients in Jackson, Mississippi, and for preparing false returns.
According to court documents and evidence presented in court, Jonathan Barefoot worked at Sunbelt Tax Service in Jackson. He conspired with others to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, Barefoot and his co-conspirators prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS.
In addition to his prison sentence, U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi ordered Barefoot to serve one year of supervised release.
Four of Barefoot’s co-conspirators have previously received the following sentences:
- Adam Earnest: 100 months in prison;
- Christopher Randell: 70 months in prison;
- James Klish: 50 months in prison; and
- John Wells: 15 months in prison.
Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department's Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney Bert Carraway for the Southern District of Mississippi prosecuted the case.
Accused Drug Dealer Charged After Allegedly Possessing 43 Pounds of Blue Fentanyl Pills, $33,000 and Other Illicit DrugsRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment today charging a foreign national living in Utah with drug crimes after agents allegedly seized 43 pounds of blue M-30 fentanyl pills and other narcotics.
According to court documents, Elder Alberto Ahumada-Castro, 29, of Murray, Utah, was suspected by federal agents of distributing drugs in the Salt Lake Valley. On April 10, 2024, Ahumada-Castro was spotted by agents overnighting at a motel in Murray, Utah. After obtaining a search warrant for Ahumada-Castro’s vehicle and motel room, agents located and seized approximately 2800 blue M-30 fentanyl pills, approximately $33,000, and a larger amount of blue M-30 fentanyl pills that weighed 43 pounds, 4 ounces. The pills field tested positive for properties of fentanyl. Ahumada-Castro was arrested.
DEAPrior to Ahumada-Castro’s arrest, court documents allege that on April 3, 2024, he possessed with the intent to distribute cocaine, heroin, and methamphetamine in the District of Utah.
Ahumada-Castro is charged with possession of fentanyl with intent to distribute, possession of cocaine with intent to distribute, possession of heroin with intent to distribute, and possession of methamphetamine with intent to distribute. His initial court appearance on the indictment is scheduled for April 22, 2024, at 10:30 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI).
Special Assistant United States Attorney Ryan Holtan of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
16 April 2024
Virginia-Based Defense Contractor Pleads Guilty to Bribery Conspiracy Involving Government Contracts Worth More Than $100 MillionRead the Press Release
NEWS RELEASE SUMMARY – April 16, 2024
SAN DIEGO – Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, pleaded guilty in federal court today, admitting that it participated in a bribery scheme with the company’s former Executive Vice President Russell Thurston, and former Naval Information Warfare Center employee James Soriano, among others.
According to Cambridge’s plea agreement, the company — acting through Thurston and an unnamed employee — gave various things of value to Soriano, including jobs for Soriano’s family and friends, meals, and a ticket to the 2018 MLB All Star Game held at Nationals Park in Washington D.C. One of the friends hired by Cambridge, Liberty Gutierrez, was giving Soriano $2,000 a month from her Cambridge salary, according to Gutierrez’s plea agreement.
In return, Soriano, acting in his position as a contracting officer’s representative at Naval Information Warfare Center ensured that Cambridge was awarded two large task orders. Soriano further ensured Cambridge was able to capture a steady stream of government funds by approving various projects on the task orders after they were awarded the contract, including more than 70 projects on one of the task orders. As a result of the conspiracy, the government obligated more than $32 million on one of the task orders and over $100 million on the other.
Soriano also allowed Cambridge employees to draft various procurement documents for him, even where the company was competing for the contract against other bidders. Thurston and Soriano worked together to remove document properties so other government employees would not know of Cambridge’s involvement in drafting the documents.
Cambridge admitted that the company made a total profit of $7,429,995.23 as a result of the conspiracy. Cambridge is next scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on July 3, 2024.
“Service members depend on the honesty and integrity of our nation’s defense contractors to be able to do their jobs,” said U.S. Attorney Tara McGrath. “A business model based on fraud is both illegal and undermines the fairness of the system.”
“The guilty plea of Cambridge International Systems, Inc. is a constructive step towards holding the company accountable for its active participation in an illegal scheme that corrupted the government’s acquisition processes,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “Such illicit actions ultimately waste invaluable U.S. taxpayer money and degrade American warfighter readiness.”
“Cambridge International Systems, Inc. demonstrated a culture of complicity in undermining the defense contracting process,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS:CI is committed to supporting investigations into activities that can harm national security, whether directly or indirectly, and to working with our law enforcement partners to ensure our warfighters are protected from this sort of corruption.”
“Bribery and procurement fraud within the Department of the Navy threatens warfighter safety and perpetuates unfair contracting practices that negatively affect honest businesses,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to exposing those who abuse the procurement process for personal gain.”
Thurston and Soriano are separately charged with conspiracy to commit bribery and bribery in case number 24CR341-TWR.
DEFENDANTS Case Number 24-cr-759-TWR
Cambridge International Systems, Inc. Arlington, VA
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years corporate probation; a maximum $500,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
Virginia Man Pleads Guilty to Bank Robbery ConspiracyRead the Press Release
ALBANY, NEW YORK – Brian Tierney a.k.a “Wodanaz,” age 30, of Lynchburg, Virginia, pled guilty today to conspiring to commit bank robbery. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Tierney admitted that between November 14 and November 27, 2022, he agreed to and planned to commit an armed bank robbery at a branch in Johnstown, New York, with two co-conspirators, Michael Brown, Jr. a.k.a. “Russ,” and Luke Kenna a.k.a. “Lt.” As part of that conspiracy, Kenna conducted surveillance of the bank and purchased items, including weapons, to commit the robbery; Tierney ordered handgun parts for use in the robbery and sent photographs of a handgun and a radio scanning and jamming device for use in robbing the bank to Kenna; and Brown drove to New York to conduct surveillance of the bank with Kenna.
Brown pled guilty to conspiracy to commit bank robbery on June 23, 2023. Kenna pled guilty to conspiracy to commit bank robbery and possession of a firearm as a prohibited person on August 17, 2023. Kenna and Brown are both scheduled to be sentenced on June 14, 2024.
Sentencing for Tierney is scheduled for August 16, 2024, before Chief United States District Judge Brenda K. Sannes, when Tierney faces a maximum term of 5 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. 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 FBI Albany Field Office’s Joint Terrorism Task Force (JTTF), which includes FBI Special Agents, and federal, state, and local investigators, including from the New York State Police, investigated the case. The FBI’s Philadelphia Field Office, the FBI’s Richmond Field Office, and the New York State Police Special Investigations Unit also provided assistance. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
United States Recovers More Than $2 Million in Aircraft Collision CaseRead the Press Release
NEWS RELEASE SUMMARY – April 16, 2024
SAN DIEGO – The United States has recovered $2,020,000 in a lawsuit it brought on behalf of the Department of the Navy for damages incurred as a result of a May 30, 2020, aircraft collision at Brown Field Municipal Airport in San Diego.
In 2023, the United States brought a lawsuit against defendants Christopher Sanders, Tac Air Ops, LLC, Tac Air California, Inc., Kapowsin Air Sports, Ltd., the City of San Diego, Brown Field Municipal Airport, Brown Field Aviation Ventures, Inc., and Lancair Corporation seeking damages as a result of the defendants’ negligent acts and/or omissions arising from the aircraft collision. The collision involved a parked United States Marine Corps MV-22 “Osprey” aircraft and a taxiing De Havilland DHC-6-100 “Twin Otter” aircraft, owned by Kapowsin, and leased and operated by the Tac Air defendants.
On April 15, 2024, the United States and defendants stipulated to dismiss the case with prejudice, after entering a global settlement agreement in which the United States recovered $2,020,000.
“This unfortunate incident caused an MV-22 to be stricken from service, which resulted in a significant loss to the United States and the Department of the Navy,” said U.S. Attorney Tara McGrath. “Securing an early resolution in this case achieved the right result,” said McGrath.
This case was handled by Assistant U.S. Attorney Mary Cile Glover-Rogers.
Case Number
United States of America v. Christopher Sanders et al., 23-cv-1000-W-DDL
SUMMARY OF CLAIMS
1. Negligence
2. Breach of Restrictive Covenants
AGENCY
The United States brought this lawsuit on behalf of the Department of the Navy
U.S. Attorney’s Office Hosts United Against Hate Program on the Gulf CoastRead the Press Release
Gulfport, Miss. – U.S. Attorney Todd Gee announced today that the U.S. Attorney’s Office hosted a United Against Hate community outreach program at the Morning Star Baptist Church in Gulfport.
The United Against Hate program was launched by the Justice Department to connect community groups with federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.
In May of 2021, Attorney General Merrick Garland announced steps towards the Department of Justice’s enhanced efforts to combat and confront hate crimes. Attorney General Garland stated: “Hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands. All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love, or how they worship.”
The United Against Hate program gives the U.S. Attorney’s Office an opportunity to connect with faith-based leaders to help effect positive change within the community. Faith-based leaders are usually the first persons contacted when individuals or families face hateful behavior. Often hate crimes and incidents go underreported, allowing offenders to continue to spread their hate, fear, and intimidation. This event assisted faith-based leaders in the Gulfport area in identifying hate crimes, understanding the importance of reporting these crimes and most importantly, discussing strategies to prevent acts of hate.
Today’s presentation, entitled “United Against Hate: Identifying, Reporting and Preventing Acts of Hate”, was led by U.S. Attorney Todd Gee and Assistant U.S. Attorneys Mitzi Dease Paige, Glenda Haynes, Andrea Jones, Angela Givens Williams, Keesha Middleton, Shundral Cole, Jonathan Buckner, and Max Myers, along with law enforcement partners who investigate hate crimes, including agents from the FBI and a representative of the District Attorney’s office for Harrison, Hancock, and Stone Counties. At the conclusion of the program, members of the media were invited to gather outside of the church to ask any questions about the initiative. Today’s event was the second of its kind to be hosted by the U.S. Attorney’s Office for the Southern District of Mississippi. The first program was held in Jackson in June 2023.
Additional information about the Justice Department’s United Against Hate Program can be found here: https://www.justice.gov/hatecrimes/spotlight/united-against-hate
The U.S. Attorney’s Office’s online complaint form to report allegations of civil rights violations is available at https://www.justice.gov/usao-sdms/civil-division webpage. The form can be emailed [email protected] , or concerns can be shared by leaving a voice mail for our Civil Rights Division at (601) 973-2825.
U.S. Attorney's Office Secures Agreement with Gastonia Hotel to Ensure Access to People with DisabilitiesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that federal prosecutors have reached a settlement agreement with the owners of the Express Inn and Suites LLC (Express Inn) in Gastonia, N.C. The agreement requires the owners of the Express Inn to provide access and accommodations to customers with disabilities, under the Americans with Disabilities Act (ADA).
The U.S. Attorney’s Office initiated an investigation following a complaint filed with the U.S. Department of Justice, claiming that the Express Inn violated the ADA by refusing to provide a room to a visually impaired individual based on speculation about the individual’s capabilities.
Under federal law, private entities that own or operate “places of public accommodation,” including hotels and other places of lodging, are prohibited from discriminating on the basis of disability.
The ADA requires that hotels provide access to individuals with disabilities, and a hotel cannot impose or apply eligibility criteria that screen out or tend to screen out an individual with a disability from full and equal enjoyment of any goods, services, or accommodations.
Upon learning of the complaint, the Express Inn cooperated with the investigation and subsequently agreed to remedy its past discriminatory conduct. According to the terms of the agreement, the Express Inn will provide employee training, update its policies, practices, and procedures to comply with the ADA, and provide monetary relief for the impacted individual.
“My office is committed to enforcing the ADA and protecting all civil rights in this District,” said U.S. Attorney King, who also leads the Attorney General’s Advisory Subcommittee on Civil Rights.
“People with disabilities have a right to equal access to hotel accommodations and should not be denied lodging on the basis of disability. I want to thank the customer who brought this matter to our attention, and I am pleased that the Express Inn has entered into an agreement that ensures going forward individuals with disabilities will not be denied their rights under federal law.”
Individuals who believe they have been victims of discrimination may file an ADA complaint online at https://www.ada.gov/file-a-complaint/. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at 800-514-0301 (voice) or 1-833-610-1264 (TTY).
This matter was handled by Assistant U.S. Attorney (AUSA) Janice Powers of the U.S. Attorney’s Office in Charlotte. AUSA Powers also serves as the U.S. Attorney’s Office’s Civil-Civil Rights Coordinator.
U.S. Attorney Dena J. King Announces Criminal Indictments Resulting from Joint Crime Reduction Efforts Targeting Drug Trafficking and Illegal Firearms Activity in AshevilleRead the Press Release
ASHEVILLE, N.C. – Today, Dena J. King, U.S. Attorney for the Western District of North Carolina, announced criminal indictments against 13 individuals on drug and/or gun charges. The indictments are the result of multiple joint investigations led by federal prosecutors, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Asheville Police Department, into the alleged distribution of narcotics, such as fentanyl, and illegal firearms activity in the Asheville area.
“When our streets are plagued with drugs and illegal guns, our communities pay the price,” said U.S. Attorney King. “The charges announced today are the result of our concerted efforts with our law enforcement partners to remove drugs and illegal guns from our neighborhoods and reduce the violence and criminal activity fueled by the drug trade. We are stronger together. When we join forces, our crime reduction efforts are more effective and we can better protect our citizens and vulnerable communities from dangerous drugs and gun-induced violence.”
“ATF has a shared commitment with our law enforcement partners to address violent crime relentlessly and from every angle,” said ATF Special Agent in Charge Bennie Mims. “By removing firearms from illegal possessors and shutting down firearms and drug trafficking networks, we’re breaking the cycle of violent crime and making our communities safer.”
“The Asheville Police Department values its local, state, and federal partnerships. This collaboration has made Western North Carolina safer from the destructive influence of those who exploit addiction, and the tragedies caused by gun-related violence. We will continue to work together as a team to foster safer neighborhoods for all residents and visitors.”
The names of the 13 individuals and the offenses pending against them are:
Darrien Quantael Cannady, 35, of Asheville, is charged with three counts of distribution of a controlled substance containing a detectable amount of cocaine base. The alleged conduct occurred between August 2022 and November 2022, in Buncombe County.
Aric Rashad Harper, 30, of Swannanoa, N.C., is charged with possession of machineguns and possession of a firearm by a convicted felon. The indictment alleges that, in November 2022, in Buncombe County, Harper possessed two machinegun conversion kits, commonly known as “Glock switches.” A Glock switch, or “auto sear,” is an illegal conversion device that enables a conventional semi-automatic pistol to function as a fully automatic firearm.The indictment further alleges that, during that time, Harper unlawfully possessed a pistol, knowing that he had been previously convicted of at least one crime punishable by imprisonment for a term exceeding one year.
Eric Kelvin Hart, 42, of Asheville, is charged with distribution of methamphetamine. The indictment alleges that Hart distributed the methamphetamine in September 2022, in Buncombe County.
Valachie Wendell Hendon, 41, of Asheville, is charged with four counts of distribution of fentanyl, one count of distribution of fentanyl and methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, and three counts of possession of a firearm by a felon. The indictment alleges that, between April and May 2023, Hendon engaged in the distribution of fentanyl in and around Buncombe County and illegally possessed firearms. The investigation led to the recovery of two privately manufactured firearms (ghost guns), eight firearms, including an AR-type rifle and a 12-gauge shotgun, and more than 80 rounds of ammunition, that the government contends were involved in the offenses charged in the indictment and are subject to forfeiture proceedings.
Jamal Marqui McDaniel, 46, of Asheville, is charged with one count of conspiracy to distribute and to possess with intent to distribute methamphetamine; nine counts distribution of methamphetamine; one count of possession with intent to distribute fentanyl and methamphetamine; eight counts of possession of a firearm in furtherance of a drug trafficking crime; and six counts of possession of a firearm and/or ammunition by a felon. The indictment alleges that, between September 2022 and February 2023, McDaniel engaged in the distribution of fentanyl and methamphetamine in and around Buncombe County. The indictment alleges that McDaniel, during the relevant period, distributed the controlled substances while in possession of firearms. The investigation led to the recovery of two ghost guns, eight firearms, and ammunition, that the government contends were involved in the offenses charged in the indictment and are subject to forfeiture proceedings. McDaniel’s co-defendant, Glisa Nechole Ponder, 43, is charged with conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine.
Christopher Deshawn Nelson, 41, of Asheville, is charged with four counts of distribution of methamphetamine and three counts of felon in possession of a firearm. The indictment alleges that, between June 2022 and August 2022, Nelson allegedly distributed methamphetamine in Buncombe County and elsewhere and illegally possessed three firearms on three separate occasions. Nelson was previously convicted of at least one crime punishable by imprisonment for a term exceeding one year and he is prohibited from possessing firearms.
Dequan Tyrie Payton, 33, of Arden, N.C., is charged with distribution of fentanyl and three counts of distribution of methamphetamine. The indictment alleges that Payton distributed the controlled substances between September 2022 and November 2022, in and around Buncombe County.
Ronald Lee Peak, 43, of Hendersonville, N.C., is charged with two counts of distribution of methamphetamine and two counts of possession of a firearm by a felon. The indictment alleges that between July 2022 and August 2022, Peak possessed with intent to distribute methamphetamine in Buncombe County. It is also alleged that, during that time, Peak illegally possessed two firearms knowing that he had previously been convicted of at least one crime punishable by imprisonment for a term exceeding one year.
Breanna Nicole Reed, 27, of Asheville, is charged with three counts of distribution of fentanyl. Reed allegedly engaged in the distribution of fentanyl between June 2022 and August 2022, in Buncombe County.
Tyrone Eugene Sitton, 46, of Asheville, is charged with three counts of distribution of fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm by a felon. According to allegations in the indictment, between November 2022 and December 2022, Sitton distributed fentanyl in Buncombe County. The indictment further alleges that Sitton, knowing he had been previously convicted of at least one crime punishable by imprisonment for a term exceeding one year, knowingly and unlawfully possessed three firearms, including a 12-gauge shotgun and a rifle. The indictment also charges Sitton’s co-defendant, Maurice Antonio Jeter, 42, of Hendersonville, with possession with intent to distribute fentanyl.
Khalil Tirik Shabazz, 28, of Asheville, is charged with three counts of knowingly and intentionally distributing a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance. The indictment alleges that Shabazz distributed the controlled substance in July 2022, in and around Buncombe County.
The charges in the indictments are allegations. The defendants are innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended the ATF and the Asheville Police Department for conducting the investigations that led to the federal charges.
Assistant U.S. Attorneys with the U.S. Attorney’s Office in Asheville are prosecuting the cases, including Christopher Hess, Alex M. Scott, and Special Assistant U.S. Attorney Annabelle Chambers.
The cases are 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.
In July 2022, as part of PSN, the U.S. Attorney’s Office, in partnership with the ATF, launched Think Again, an informational campaign to educate the public about gun crimes and illegal firearms purchasing or misuse and to increase the reporting of illegal firearms activity to law enforcement. The campaign encourages the public to submit an anonymous tip about illegal firearms and other criminal activity to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS.
For additional information about our Think Again initiative, please visit our website. You can view our Think Again Public Service Announcements here.
U.S. Army Financial Counselor Pleads Guilty to Defrauding Gold Star FamiliesRead the Press Release
A New Jersey financial counselor with the U.S. Army and major in the U.S. Army Reserves pleaded guilty today to defrauding Gold Star families and related crimes.
Caz Craffy, also known as Carz Craffey, 41, of Colts Neck, pleaded guilty before U.S. District Judge Georgette Castner in Trenton, New Jersey, to six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency.
“Those who target and steal from the families of fallen American servicemembers will be held accountable for their crimes,” said Attorney General Merrick B. Garland. “Nothing can undo the enormous loss that Gold Star families have suffered, but the Justice Department is committed to doing everything in our power to protect them from further harm.”
“Caz Craffy admitted today that he brazenly took advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, using lies and deception,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. We will use every means at our disposal to ensure that those who defraud our military families are held accountable. Caz Craffy now faces the prospect of years in prison for ripping off these families to line his own pocket.”
“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch of the Department of the Army Criminal Investigation Division Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the U.S. Attorney’s Office, Defense Criminal Investigative Service (DCIS), FBI, Homeland Security Investigations (HSI), and our own investigative analyst, resulted in this investigation’s swift resolution.”
“The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity, and respect by individuals entrusted to assist them in obtaining survivor benefits,” said Principal Deputy Director James R. Ives of DCIS. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.”
“Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “The soldier, sailor, marine, or airman they loved died during a time of conflict — defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, but no amount of money can replace what they’ve lost. Craffey took advantage of his position and defrauded families already going through a tremendous amount of suffering. He is being held accountable, and his victims are seeing justice prevail.”
“Craffy disgraced his entrusted position to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Acting Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) Newark. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.”
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 payment and the servicemember’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy acknowledged that he was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He admitted to encouraging the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the scheme, the Gold Star family accounts lost more than $3.7 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
Craffy faces a maximum penalty of of 20 years in prison for each count of wire fraud and securities fraud, a maximum penalty of of two years in prison for submitting a false statement on a loan application, and a maximum penalty of five years in prison for the charges of acts affecting a personal interest and false statements to a federal agent. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. A sentencing hearing is scheduled for Aug. 21.
The U.S. Securities and Exchange Commission (SEC) has a pending civil complaint against Craffy based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
The Department of the Army Criminal Investigation Division, DCIS, FBI, and HSI Newark, investigated the case, with assistance from the SEC and FINRA.
Assistant U.S. Attorneys Martha K. Nye and Carolyn Silane for the District of New Jersey are prosecuting the case.
U.S. Army Financial Counselor Admits Defrauding Gold Star FamiliesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, financial counselor with the United States Army and major in the U.S. Army Reserves today admitted defrauding Gold Star families and related crimes, U.S. Attorney Philip R. Sellinger announced.
Caz Craffy, aka “Carz Craffey,” 41, of Colts Neck, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to the indictment filed against him, which charged six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency.
“Those who target and steal from the families of fallen American servicemembers will be held accountable for their crimes,” Attorney General Merrick B. Garland said. “Nothing can undo the enormous loss that Gold Star families have suffered, but the Justice Department is committed to doing everything in our power to protect them from further harm.”
U.S. Attorney Philip R. Sellinger“Caz Craffy admitted today that he brazenly took advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, using lies and deception. These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. We will use every means at our disposal to ensure that those who defraud our military families are held accountable. Caz Craffy now faces the prospect of years in prison for ripping off these families to line his own pocket."
“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” Special Agent in Charge Joel Kirch, Department of the Army Criminal Investigation Division, Northeast Field Office, said. “The hard work, long hours, and dedication of our partners within the Task Force, from the United States Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”
“The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said James R. Ives, Principal Deputy Director of the Defense Criminal Investigative Service, the law enforcement arm of the DoD Office of Inspector General. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.”
“Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, but no amount of money can replace what they’ve lost. Craffey took advantage of his position and defrauded families already going through a tremendous amount of suffering. He is being held accountable, and his victims are seeing justice prevail.”
“Craffy disgraced his entrusted position to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” Homeland Security Investigations Newark acting Special Agent in Charge William S. Walker said. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.”
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 payment and the servicemember’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy acknowledged that he was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He admitted to encouraging the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the scheme, the Gold Star family accounts lost more than $3.7 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Aug. 21, 2024.
The U.S. Securities and Exchange Commission (SEC) has a pending civil complaint against Craffy based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Walker, with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Head of Enforcement Bill St. Louis.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the Criminal Division in Trenton, and Carolyn Silane of the Economic Crimes Unit in Newark.
craffy.indictment.pdfTwo New York Men Admit Participating in More Than $25 Million COVID-19 Fraud, other Offenses, including Fentanyl DistributionRead the Press Release
NEWARK, NJ. – Two New York men today admitted conspiring with others to defraud dozens of states to obtain millions of dollars of COVID-19 unemployment benefits; one of the defendants also admitted to fentanyl conspiracy and distribution and conspiring to defraud the IRS of tax credit benefits, U.S. Attorney Philip R. Sellinger announced.
Natanael Valdez Brito, aka “El Pocho,” 35, of the Bronx, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to a four-count information charging him with conspiracy to distribute fentanyl, possessing with intent to distribute fentanyl, and two counts of conspiracy to commit wire fraud.
Alexander Arismendy Alix Hernandez, 23, of the Bronx, New York, pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to commit wire fraud.
Billy Castro, 33, previously pleaded guilty to the wire fraud conspiracy to which Valdez and Alix pleaded guilty, and Castro and Juan De La Cruz Infante Torres, 52, previously pleaded guilty to the fentanyl offenses to which Valdez pleaded guilty. Both Castro and Infante are awaiting sentencing.
The following individuals were previously charged by complaint for the same wire fraud conspiracy: Rafael Josmin Nunez Duarte, 33, and Josmin Rafael Nunez Duarte, aka “Mello,” 33, both of the Bronx, New York; Leonel Frias Espaillat, 32, of Allentown, Pennsylvania; and Abrahan Rivas Rojas, aka “Milandro,” 36, and Yarisa Espaillat, aka “Yari,” 34, both of the Dominican Republic. Nunez, Duarte, Frias, and Espaillat have been released on bond. Rivas remains at large.
U.S. Attorney Philip R. Sellinger“The financial benefits provided by the government in response to the COVID-19 pandemic provided enormous relief to Americans who were struggling to get by. Unfortunately, people like the defendants who pleaded guilty today saw the pandemic as an opportunity to enrich themselves illicitly. Our office is focused on combating all types of fraud, especially when it involves exploiting the suffering of others.”
“Much of the world has moved on from the pandemic,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Gone are masking, social distancing, and quarantining. However, our work searching out and bringing to justice fraudsters who used COVID-19 as a get-rich-quick scheme forges on even now and will until everyone who broke the law is held accountable. The men pleading guilty to their roles in this conspiracy should serve as a warning to others who think the more time that goes by, they will get away with it. You won't, and we will catch you.”
According to documents filed in this case and statements made in court:
Valdez and Alix conspired with Castro, Nunez, Duarte, Frias, Rivas, Espaillat, and others to use the personal identifying information of thousands of individuals to create fictitious online profiles claiming to be real people seeking unemployment benefits as a result of the COVID-19 pandemic. The conspirators submitted fraudulent applications to the departments of labor of Puerto Rico and dozens of other states, including Pennsylvania, New York, and New Jersey. Once the fraudulent unemployment benefit applications were approved, the conspirators received unemployment benefit funds through debit cards, which they either cashed out at ATMs or used to make purchases. To date, law enforcement has identified that the unwitting individuals’ information was used to fraudulently obtain more than $25 million in unemployment benefits from approximately 29 states and Puerto Rico.
Valdez also conspired with others to attempt to defraud the IRS of more than $1.9 million in tax credit benefits, for which the conspirators received at least $129,446. Valdez and others used personally identifying information to fraudulently apply for $1,800 child tax credit benefits and other benefits from the IRS. When law enforcement searched Valdez’s residence, they recovered hundreds of completed applications in sealed envelopes, which were ready to be mailed to the IRS.
In May and June 2021, Valdez conspired with Castro, Infante, and others to distribute substantial quantities of fentanyl. Valdez obtained kilograms of fentanyl from a source of supply in Mexico. Valdez then provided the kilograms to Castro, which he coordinated with Infante to sell. On June 15, 2021, Castro and Infante took approximately 2 kilograms of fentanyl from Castro’s Queens, New York apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately 2 additional kilograms of fentanyl, along with driver’s licenses, Social Security cards, debit cards, tax forms, bills, and other documents – including COVID-19 unemployment benefits applications and debit cards – in the names of approximately 100 individual victims that were used in furtherance of the unemployment benefit fraud conspiracy.
The charges of conspiracy to distribute and possession with intent to distribute fentanyl each carry a maximum sentence of 20 years in prison and a maximum fine of $1 million. The conspiracy to commit wire fraud charges carry a maximum penalty of 20 years in prison and a fine of the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing for both defendants is scheduled for Aug. 27, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan in Newark; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to the guilty pleas and charges. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor for their assistance in the investigation.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
The government is represented by Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Sam Thypin-Bermeo of the OCDETF Unit in Newark.
The charges and allegations against Nunez, Duarte, Frias, Rivas, and Espaillat are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
alix.information.pdf valdez.information.pdfTucson Man Pleads Guilty to Second Degree Murder of a ChildRead the Press Release
TUCSON, Ariz. – Pablo Martinez, Jr., 36, of Tucson, pleaded guilty on Monday to Second Degree Murder for the killing of a child. Sentencing is scheduled for July 5, 2024, before United States District Judge Scott H. Rash.
Martinez admitted that on September 29, 2019, he murdered the six-year-old victim by holding the victim’s face under a running bathtub faucet for between five to ten minutes, while giving the victim a bath. The victim inhaled water that caused liquid thermal burns, resulting in his death. The victim was an enrolled member of the Pascua Yaqui Indian Tribe.
A conviction for second degree murder carries a maximum penalty of up to life in prison, a fine of $250,000.00, and a term of five years of supervised release.
The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant U.S. Attorneys Frances M. Kreamer Hope and Matthew C. Cassell, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBER: CR-19-2617-TUC-SHR
RELEASE NUMBER: 2024-052_Martinez, Jr.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Trempealeau County Man Sentenced to 18 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Seth W. Fagan, 33, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 18 years in prison for receiving child pornography. This term of imprisonment will be followed by a lifetime period of supervised release. Fagan pleaded guilty to this charge on January 16, 2024.
The investigation into Fagan began in March 2023, when a 16-year-old victim in Onalaska, Wisconsin, reported to her school resource officer that she was being threatened and harassed by a Snapchat user. The victim told the officer that she accepted a friend request from a Snapchat user who said he was a teenage male in the area. After exchanging nude photos, the Snapchat user began to threaten the victim, stating that he would send her nude photo to her family and friends if she did not send him more nude images.
An investigation into the Snapchat user’s name and records showed that this account, and many other Snapchat accounts, were being controlled by Fagan. Fagan used his Snapchat personas to message numerous minors pretending to be a teenage male. Fagan solicited and received hundreds of images of minors in the community and across the country. In some incidents, he threatened to publicly share the images if the minors did not send him additional images.
During the search of Fagan’s devices, law enforcement found many videos of a twelve-year-old victim Fagen was communicating with via Snapchat. Fagan received sexual images of this victim and then threatened to share them if she did not comply with his demands for more images. Fagan recorded a series of videos of this victim where he directed her to perform sexual acts on herself and told her to cry while he watched.
At sentencing, Judge Peterson found Fagan’s large number of young victims disturbing and aggravating, and his actions calculating. Judge Peterson observed that Fagan had a commitment to abusive conduct, noting that his behavior towards the twelve-year-old victim was particularly cruel. Judge Peterson also found that Fagan posed a danger to the community and that a long sentence was warranted to protect the public and to reflect the seriousness of Fagan’s conduct.
U.S. Attorney Timothy M. O’Shea praised the courage of the victims who came forward in this case. “By doing so, these victims helped stop Fagan’s crimes against them and countless other victims. Sextortion is a terrible crime, and my office will continue to vigorously prosecute those who engage in this disturbing behavior.”
According to the FBI, there has been a significant spike in children and teens being threatened and coerced into sending explicit images online, a crime known as sextortion. Sextortion can start on any site, app, messaging platform, or game where people meet and communicate. Most often, the crime starts when young people believe they are communicating with someone their own age who is interested in a relationship or with someone who is offering something of value.
Unfortunately, in a sextortion scheme, the abuser uses the original images or video as leverage against the victim. After the criminals have one or more videos or pictures, they threaten to publish that content, or they threaten violence, to get the victim to produce more images. The shame, fear, and confusion children feel when they are caught in this cycle often prevents them from asking for help or reporting the abuse.
U.S. Attorney O’Shea urged parents and guardians to talk to their children about sextortion and discuss what they should do if they are being extorted by someone online. “Keep an open dialog with your children and urge them to tell you or another trusted adult if they are ever asked to exchange inappropriate content, even if the situation is uncomfortable.”
Additional information about this type of crime can be found at:
https://www.missingkids.org/netsmartz/resources
https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/sextortion
The charges against Fagan were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Onalaska and Sparta Police Departments, and the Ritchie County Sheriff’s Department in West Virginia. The prosecution of the case has been handled by Assistant U.S. Attorney Kathryn Ginsberg.
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”