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17 April 2024
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.”
Three Individuals Plead Guilty to Trafficking Methamphetamine Through the Orlando AirportRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg announces that Jevonn Clayton (48, Auburndale), Venus Lott (45, Bartow), and Richardson Sid (40, Winter Haven) have pleaded guilty to conspiracy to possession with intent to distribute methamphetamine. All three defendants face a maximum penalty of life in federal prison. Sentencing hearings have not yet been scheduled.
According to the plea agreement, on August 11, 2022, Clayton agreed to transport suitcases containing methamphetamine from Los Angeles to Orlando on behalf of a drug trafficker. Shortly thereafter, Clayton and the drug trafficker recruited Lott and Sid to travel to California to assist in transporting the suitcases.
On August 16, 2022, Clayton, Lott, and Sid departed Los Angeles for Orlando, with five suitcases packed with large amounts of methamphetamine. Agents with the Drug Enforcement Administration and the Metropolitan Bureau of Investigation were investigating inbound flights at the Orlando airport. The agents located and searched the suitcases belonging to Clayton, Lott, and Sid and recovered several vacuum-sealed bags that contained over 35 kilograms of methamphetamine.
This case was investigated by the Drug Enforcement Administration, with valuable assistance from the Metropolitan Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Noah P. Dorman.
Thoreau Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
ALBUQUERQUE – A Thoreau man pleaded guilty in federal court to charges arising from the shooting of his friend during a drunken argument.
Gerrick Mariano, 26 years old, an enrolled member of the Navajo Nation, pleaded guilty to assault resulting in serious bodily injury.
According to court records, on August 20, 2022, Mariano and his friend, John Doe, were drinking alcohol when they got into a verbal argument. Afterwards, Mariano pointed a rifle at John Doe’s chest; Doe pushed the barrel of the rifle away. The rifle accidentally discharged, and a bullet struck John Doe in his right shoulder.
John Doe had to be airlifted to a hospital for medical treatment and continues to experience limited use of his right shoulder.
At sentencing, Mariano faces up to 10 years in prison followed by three years of supervised release. He must also make restitution to Doe for expenses directly linked to his crime.
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 Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation, New Mexico State Police, and New Mexico Park Rangers. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Texas Man Sentenced to 90 Months in Federal Prison for Robbery of Personal Property of the United StatesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Tarek Sonnier, age 26, a resident of Fresno, Texas, to 90 months in federal prison following his conviction for robbery of personal property of the United States. The Court further sentenced Sonnier to serve three years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty plea, on October 6, 2021, at approximately 4:00 p.m., the victim postal worker was delivering mail in her capacity as a USPS mail carrier. Sonnier, who had been waiting behind a tree near the rear of the USPS vehicle, crossed the street with a red letter. The victim noticed Sonnier as he crossed the street, looked in his face, and asked him if he had to mail something. When he got close to the victim, Sonnier pepper sprayed the victim and snatched USPS keys from her. The keys included a set of USPS Promaster truck keys and a USPS Arrow Key. Sonnier and his accomplice then fled in a silver Camaro.
Surveillance camera footage across the street from the incident captured the robbery. The surveillance footage captured a silver Camaro with distinctive damage to the rear passenger side drive pass by, then a few minutes later an individual, later identified as Sonnier, walk down the street and wait behind a tree near the rear of the USPS vehicle. Sonnier was dressed in a black shirt, and black sweatpants with white stripes halfway down the sides. The surveillance video also captured the robbery. In addition, a witness saw the silver Camaro with distinctive damage to rear passenger side prior to the robbery. Also, footage from several surveillance cameras in the area captured the silver Camaro with damage to the rear passenger side.
On October 7, 202l, at approximately 2:30 pm, near 2000 Lobdell Dr., BRPD conducted a lawful traffic stop on a silver Camaro. This silver Camaro had distinctive damage to the rear passenger side. The driver of the vehicle was Sonnier. On October 8. 2021, BRPD executed a search warrant on the Camaro and located notable evidence that included the following: (1) USPS truck keys, (2) black adidas sweatpants with a stripe that goes half-way down the side, (3) stolen
U.S. mail, checks, and money orders; numerous checks were from Houston and postmarked from September 202l, but many were also dated October 6, 2021 and from Baton Rouge, and (4) bottles of “Wite Out” and “Heet,” which are both commonly used to alter checks. In addition, on October 7, 2021, the victim selected Sonnier out of a photo lineup as the person that robbed her.
This case was investigated by the United States Postal Service and Baton Rouge Police Department and was prosecuted by Assistant United States Jeremy S. Johnson.
Texas Man Pleads Guilty to Wire Fraud Conspiracy Involving over $12 Million in Consumer ElectronicsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that OLUSEUN MARTINS OMOLE, a/k/a “Seun Omole,” pled guilty today to conspiracy to commit wire fraud for his participation in a widespread scheme to defraud thousands of victims in the United States and elsewhere of thousands of consumer electronics and other goods totaling more than $12 million. OMOLE pled guilty before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “Over the course of approximately five years, Oluseun Martins Omole received more than $12 million worth of fraudulently obtained consumer electronics and other items. Thousands of victims believed that they were sending these electronics and items to romantic lovers, legitimate buyers, and reputable employers. Instead, they went straight to Omole, who repackaged those electronics and goods and shipped them in bulk to co-conspirators located overseas in exchange for the equivalent of hundreds of thousands of U.S. dollars. Those like Omole who participate in such fraud schemes will find themselves facing prison time.”
According to the allegations contained in the Indictment and Complaint, the plea agreement, and other public filings and statements made in court:
From at least in or about February 2018 through at least in or about March 2023, OMOLE participated in a criminal enterprise based in Nigeria (the “Enterprise”), which orchestrated various scams to defraud thousands of victims in the United States and elsewhere of more than $12 million in consumer electronics, including smartphones, smartwatches, laptops, and tablets, among other items. The scams perpetrated by the members of the Enterprise included (i) romance scams, in which Enterprise members sent electronic communications to victims feigning romantic intentions, gained their trust and affection, and took advantage of that goodwill to induce victims into sending consumer electronics and other money or property to OMOLE; (ii) online marketplace scams, in which Enterprise members sent electronic communications to victims feigning interest in buying consumer electronics, falsely represented to the victim that the items had been paid for, and instructed the victim to send the consumer electronics to OMOLE; and (iii) employment scams, in which Enterprise members posted phony jobs online and informed unwitting victims that they were hired before instructing victims to send electronics to OMOLE under the guise that those electronics were needed for the job (together, the “Fraudulent Electronics Scams”).
During the relevant time period, OMOLE owned and operated a business corporation named Tobylink Impessions, Inc., a/k/a Tobylink Impressions, Inc. (“Tobylink”), which claimed to be a distributor, re-seller, and supplier of satellite communications equipment. In reality, however, Tobylink served as a vehicle through which OMOLE received thousands of fraudulently obtained goods from victims of the Enterprise before repackaging and shipping those items to various co-conspirators located in Nigeria. During his participation in the conspiracy, OMOLE received and sent more than $12 million in consumer electronics and other items to other members of the Enterprise, in exchange for the equivalent of hundreds of thousands of U.S. dollars in fees that OMOLE charged other Enterprise members.
If you believe you are a victim of the Fraudulent Electronics Scams, you may contact the following email address: [email protected].
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OMOLE, 57, of Sugar Land, Texas, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. As part of his plea agreement, OMOLE agreed to pay restitution in an amount to be ordered by the Court and to forfeit an amount of U.S. currency to be ordered by the Court, as well as various consumer electronics and other goods seized by law enforcement.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. OMOLE’s sentencing is scheduled for July 30, 2024, before U.S. District Judge Jesse M. Furman.
Mr. Williams praised the work of the Federal Bureau of Investigation. Mr. Williams also thanked Homeland Security Investigations for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.
Supplier for crack distribution ring heads to prisonRead the Press Release
GALVESTON, Texas – A 42-year-old Texas City resident has been sentenced for conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Shane Alan Flores pleaded guilty Nov. 9, 2021.
U.S. District Judge Jeffrey V. Brown has now ordered Flores to serve 90 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional information regarding the 2.2 kilograms of cocaine Flores supplied to co-conspirators for the manufacture and sale of cocaine base aka “crack” and his role in the conspiracy.
During 2018, Flores supplied cocaine powder to a crack distribution ring operating in the La Marque and Texas City areas to manufacture into the cocaine base or “crack” and sold to locals.
Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Safe Streets and Violent Crimes Task Force conducted the investigation. Assistant U.S. Attorney Kenneth A. Cusick prosecuted the case.
St. Louis Tax Preparer Arrested, Accused of Preparing 41 Fraudulent ReturnsRead the Press Release
ST. LOUIS – A St. Louis, Missouri-based tax preparer was arrested Tuesday after being indicted and accused of fraudulently preparing 41 tax returns for clients.
Shasherese M. Reed, 52, was indicted by a grand jury in U.S. District Court in St. Louis April 10 on 41 counts of aiding and assisting in the preparation of false and fraudulent tax returns.
The indictment says in 2015, the IRS revoked the Preparer Tax Identification Number (PTIN) assigned to Reed and the Electronic Filing Identification Number issued to her business, Sha-Sha Taxes, meaning she was no longer authorized to prepare tax returns for compensation. The indictment says that despite that, Reed prepared tax returns for clients from 2017 to 2022 using a tax preparation business, Majac Money, opened by her daughter and operated out of Reed’s home.
The indictment says Reed prepared 41 fraudulent tax returns that used her daughter’s PTIN and falsely identified her daughter as the paid preparer on the returns. The returns claimed false and fraudulent deductions for things like state and local taxes, business expenses, medical and dental expenses and mortgage interest, it says.
“Return preparer fraud remains a top investigative priority for IRS Criminal Investigation (CI). Our agency devotes a large amount of time and resources to presenting such cases to the U.S. Attorney for prosecution,” said Special Agent in Charge Thomas F. Murdock of the St. Louis Field Office. “The IRS encourages taxpayers to be selective and to verify a return preparer’s credentials before enlisting their services for a fee. CI will aggressively pursue those who present corrupt credentials and deceive honest taxpayers into trusting them.”
Each charge Reed faces is punishable by up to three years in prison, a $100,000 fine or both a prison term and a fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
St. Louis Man Sentenced to 27 Years in Prison for Three Carjackings, Including One That Was FatalRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a man who committed three carjackings in St. Louis in 2021, including one that killed a 72-year-old man, to 27 years in prison.
Carmain Milton, 50, stole a woman’s 1998 Toyota Camry on Sept. 21, 2021, in the 4500 block of Pershing Place.
A week later, in a parking lot at the intersection of Chouteau Avenue and South Sarah Street, Milton approached two victims and said, “I will shoot you, don’t be a hero, give me your jewelry.” Milton stole debit/credit cards, rings, an iPhone and the Audi A6 belonging to one of the victims.
Later that day, in the 300 block of North Boyle Avenue, Milton carjacked a man’s 2004 Honda Element and then ran the victim over. The victim was severely injured and later died.
Milton had what appeared to the victims to be a handgun. He was arrested a few hours later with a pellet gun and a wallet from the second carjacking.
In court Tuesday, Assistant U.S. Attorney Cassandra Wiemken said Milton’s violent behavior was escalating and was the culmination of 30 years of criminal conduct.
The daughters of the third carjacking victim said their father was a “devoted, attentive and loving grandfather” who had a long career in the chemical manufacturing industry, and whose work continues to have a global impact. The crime devastated their mother and left the community fearful that, “It could happen to anyone.”
Milton pleaded guilty in January to two counts of carjacking and one count of carjacking resulting in death.
The St. Louis Metropolitan Police Department and the FBI investigated the case. Assistant U.S. Attorney Cassandra Wiemken is prosecuting the case.
St. Louis County Woman Admits $100,000 Pandemic Loan FraudRead the Press Release
ST. LOUIS –A woman from St. Louis County, Missouri on Tuesday admitted fraudulently obtaining five pandemic relief loans totaling $104,163.
Camille N. Foster, 32, pleaded guilty in U.S. District Court to two counts of wire fraud. She admitted that between May 2020 and November 2021, she fraudulently obtained five Paycheck Protection Program (PPP) loans.
PPP loans were intended to help struggling small businesses during the COVID-19 pandemic. Foster submitted loan applications on behalf of three businesses, Humble Hearts Home Healthcare LLC, Embellished Jewels LLC and Muse Me Boutique LLC. On the applications, she knowingly misrepresented the payroll and annual income of the businesses, which were not in operation at the time. She also submitted fraudulent tax forms to support the applications. Each application requested about $20,000. In an application for Muse Me Boutique, Foster used someone else’s name and Social Security number on the application, and Foster signed that person’s name on the application without the person’s knowledge or authorization.
Based on the false representations in her PPP loan applications, the lenders approved the applications and transferred the loan amounts into Foster’s bank accounts.
Foster spent the money on personal retail purchases, dining, cosmetic surgery, bill payments, travel, tax payments and payments to others. She then submitted fraudulent applications for PPP loan forgiveness for many of the loans she received, falsely claiming that she had spent most or all the money on payroll costs.
Foster, also known as Foster-Nunley, is scheduled to be sentenced July 18. The charge is punishable by up to 20 years in prison, a $250,000 fine, or both prison and a fine. She has also agreed to a $104,163 money judgment.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
St. Charles County Residents Accused of Forced Labor, Labor Trafficking and TheftRead the Press Release
ST. LOUIS – Four St. Charles County, Missouri residents have been indicted on charges including forced labor, labor trafficking and theft of government funds.
Venkatesh Sattaru, 35, of O’Fallon, Nikhil Penmatsa, 27, of Defiance, Sravan Penumetcha and Nitya Sattaru, both of St. Charles County, were indicted Wednesday in U.S. District Court in St. Louis.
Nitya Sattaru pleaded not guilty Monday. Venkatesh Sattaru, Penmatsa and Penumetcha are scheduled to appear in court Wednesday for their arraignments and detention hearings.
Venkatesh Sattaru, Penmatsa and Penumetcha each face one count of forced labor. The indictment accuses them of obtaining the labor and services of an Indian national through a combination of force and threats of force. Venkatesh Sattaru was also indicted on one count of labor trafficking.
Venkatesh Sattaru and Nitya Sattaru, who are married, face one count of conspiracy to commit theft of government funds and 47 counts of theft of government funds. The indictment accuses them of defrauding the Program of Comprehensive Assistance for Family Caregivers, also known as the Caregiver Support Program, which provides financial compensation for providing care to qualified military veterans. The indictment says the couple conspired to falsely claim that Venkatesh Sattaru, a veteran of the U.S. Army, was unable to care for himself and needed help walking, bathing, using the restroom and getting dressed. They claimed he was unable to drive, complete housework, cook, shop or manage his own finances or medication allotment, the indictment says. Their fraud triggered monthly payments ranging from $1,405 to $4,723 from April 2020 to February of 2024, the indictment says, totaling $83,776.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by Homeland Security Investigations, the U.S. Department of Veterans Affairs Office of Inspector General and the St. Charles County Police Department. Assistant U.S. Attorney Dianna Edwards is prosecuting the case.
Preventing and deterring human trafficking remains a high priority for the U.S. Department of Justice. If you or someone you know is a victim of human trafficking, contact the National Human Trafficking Hotline at (888) 373-7888 or by texting “INFO” to 233733. Information is also available on the hotline website: https://humantraffickinghotline.org.
Springfield Restaurant Owner Pleads Guilty to Fraud Relating to LoansRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, Omar Hernandez-Lopez, 39, of the 8100 block of Tack Lane pleaded guilty on April 1, 2024, to misprision of a felony in connection with wire fraud and false statements on loan applications. Acceptance of the plea is pending before U.S, District Court Judge Sue Myerscough. Sentencing for Hernandez-Lopez has scheduled for August 29, 2024, at the U.S. Courthouse in Springfield, Illinois.
In court before U.S. Magistrate Judge Karen L. McNaught, Hernandez-Lopez admitted that starting around June 2018 and continuing until at least June 2019, he concealed the fraudulent nature of several falsified documents that were submitted to loan providers. Two fraudulent loan packages were submitted in an attempt to obtain a business loan for Hernandez-Lopez’s restaurant, La Fiesta Grande. The other two fraudulent loan packages were submitted in a successful attempt to obtain a home mortgage loan. Hernandez-Lopez was aware of the submission of fraudulent documents and took steps to conceal their fraudulent nature from the loan companies and law enforcement.
Hernandez-Lopez remains free pending sentencing.
Hernandez-Lopez faces the following statutory penalties: not more than 3 years in prison, not more than a $250,000 fine, a $100 special assessment, and restitution in an amount ordered by the Court.
The charges were investigated by the Federal Deposit Insurance Corporation Office of Inspector General, Chicago Region. Assistant U.S. Attorney Sierra Senor-Moore and Tanner Jacobs are representing the government in the prosecution.
Senior Administrator for Dolton, Ill. and Thornton Township, Ill. Charged in Federal Court with Bankruptcy FraudRead the Press Release
CHICAGO — A senior administrator for both the Village of Dolton, Ill. and Thornton Township, Ill. has been charged in federal court with engaging in a bankruptcy fraud scheme involving the making of false statements in his bankruptcy petition to conceal from creditors his assets and sources of income and a significant claim against him.
An indictment returned Monday in U.S. District Court in Chicago charges KEITH DOUGLAS FREEMAN, 45, of Orland Park, Ill., with one count of bankruptcy fraud. The charge is punishable by a maximum sentence of five years in federal prison. Arraignment has not yet been scheduled.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorney Jason A. Julien and Special Assistant U.S. Attorney Brian P. Netols.
The officials noted that Freeman was indicted as part of an ongoing federal investigation.
According to the indictment, Freeman on Jan. 3, 2024, filed a Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court in Chicago. The petition included a Schedules and Statement of Financial Affairs – a document in which the debtor is required to identify, among other things, all of his assets and sources of income, as well as any claims against him. The indictment alleges that Freeman made several materially false statements and omissions in the document, including knowingly underreporting income he derived from his employment as both the Village Administrator for Dolton and the Municipality Manager for Thornton Township, as well as fees he received from his private consulting business. Freeman also allegedly concealed that the Village of Robbins, Ill. had filed a claim against him related to approximately $90,396 that Freeman received in excess of his authorized salary while he was the Village Administrator for Robbins, a position he held from 2017 to 2021.
Freeman also furnished the Chapter 7 Trustee with a purported copy of his 2022 individual income tax return, which represented that Freeman’s total income from employment was $45,186. The indictment states that Freeman knew he had not filed an income tax return for that year, and that his actual income, which included a $100,000 salary for the Dolton position alone, substantially exceeded that amount.
It was further part of the scheme that on Jan. 30, 2024, while testifying under oath at a meeting of creditors, Freeman falsely represented that he was not an employee of Dolton and that he did not receive payment from Dolton, the indictment states. The following month, Freeman allegedly caused his pay from Dolton to be directly deposited into a recently opened bank account that he had not disclosed to the creditors or the Chapter 7 Trustee.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Freeman indictmentSalem Man and Lynn Man Pleaded Guilty to Counterfeit Pill Trafficking ConspiracyRead the Press Release
BOSTON – Two men pleaded guilty last week in federal court in Boston to participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Kion Shepherd, 33, of Salem and Raymond Kulakowski, 36, of Lynn pleaded guilty to one count each of conspiring to distribute and to possess with intent to distribute controlled substances. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencings for July 25, 2024 and September 3, 2024, respectively.
According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area. Shepherd and Kulakowski are the eighth and ninth defendants to plead guilty in this matter.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics & Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Robert Waters, Jr. and Westville Remarketing, Inc. Settle Alleged False Claims Act ViolationsRead the Press Release
CONCORD- The U.S. Attorney’s Office for the District of New Hampshire entered into a settlement agreement with Robert Michael Waters, Jr. and Westville Remarketing, Inc, (Westville) to resolve allegations that Waters and Westville violated the False Claims Act by taking and misusing proceeds of an Economic Injury Disaster Loan (EIDL) to purchase a yacht, U.S. Attorney Jane E. Young announces.
Waters and his Company, Westville, have agreed to pay the proceeds from an auction of the yacht and an additional $150K to the government. In the settlement, Waters agreed to the auction of the yacht and to cooperate in the transfer of title to whoever purchases it. The auction of the yacht will occur at a later date.
“Unfortunately, individuals like Mr. Waters attempted to inappropriately benefit from government programs aimed at aiding Americans and the economy during the COVID-19 pandemic,” said U.S. Attorney Jane E. Young. “This Office and our law enforcement partners are working tirelessly to uncover this widespread fraud and recover these funds on behalf of American taxpayers. This settlement demonstrates that we will pursue both civil and criminal avenues to hold those who committed COVID-19 pandemic fraud accountable and divest them of their ill-gotten gains.”
The United States contends that Waters and his Company, Westville, falsely represented to the Small Business Administration (SBA) that Westville would apply the proceeds of the EIDL to its business to counteract the negative economic effects of COVID-19, and instead used $340,000 of the loan proceeds to purchase an Azimut yacht called the “Alisa.” On April 7, 2020, Robert Waters, a 50% owner of Westville, submitted an application for an EIDL for $40,000 on Westville’s behalf. On December 27, 2021, he applied for a modification of the original EIDL for an additional $343,800. On February 15, 2022, just over one month after receiving the EIDL proceeds from the SBA, Waters transferred $340,000 of the funds to another entity he wholly owned, and spent the funds and other money to purchase the yacht “Alisa.” This yacht had no legitimate business purpose.
Waters was indicted by a federal grand jury on August 2, 2023. The U.S. Attorney’s Office moved to dismiss the indictment following a revelation of additional information. The Court accepted the motion, and the criminal case was dismissed on March 29, 2024.
The Federal Bureau of Investigation and the Internal Revenue Service led the investigation. The United States Marshal Service assisted with the investigation and seizure of the vessel. Valuable assistance was provided by the U.S. Department of Commerce. Assistant U.S. Attorneys Aaron Gingrande and Raphael Katz represented the government in this matter.
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Water's Civil SettlementRegistered Sex Offender Sentenced to 29 Years in Prison for Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Wayne Lee Hauzer, 59, of Tracy, was sentenced today to 29 years in prison and a $10,000 fine for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in April 2022, Hauzer engaged in a private chat via Kik messenger with an undercover federal agent who Hauzer believed to be a 13-year-old girl. During the conversation, Hauzer sent the undercover agent videos of children engaged in sexually explicit conduct. Hauzer was a registered sex offender at the time of this offense and is subject to an enhanced statutory penalty because he had prior federal convictions for enticement of a minor, attempted enticement of a minor, and distribution of child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shelley D. Weger and Jessica L. Delaney prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Raleigh Car Dealership Owner Pleads Guilty in Tax Fraud SchemeRead the Press Release
RALEIGH, N.C. – Carol Jean Darrow, 60, pled guilty today pursuant to a criminal information to failure to pay $346,775 in withheld employee payroll taxes. Darrow is the co-owner and operator of The Auto Finders, Inc. (TAF), a corporation headquartered in Durham, North Carolina. TAF is an automobile dealership. The defendant, a resident of Raleigh, North Carolina, managed the financial affairs of TAF, including approving payments to creditors and payroll taxes due.
“For five years, this auto dealer took money from their employees’ paychecks, supposedly for taxes, and then pocketed it for themselves,” said U.S. Attorney Michael Easley. Blatant fraud like this undermines faith in our system, and we won’t allow it in North Carolina.”
TAF was required to pay over the withheld payroll taxes to the Internal Revenue Service (IRS) through periodic deposits. In addition, TAF was required to file, at the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941) setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, the total amount of FICA taxes due, and the total tax deposits.
In her position at TAF, the defendant was responsible for collecting, truthfully accounting for, and paying over the payroll taxes due and owing from TAF to the IRS. Between 2016 and 2021, TAF continuously failed to meet its payroll tax obligations to the IRS, resulting in a substantial underpayment of tax. She faces up to 5 years in prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert B. Jones, Jr. accepted the plea. Sentencing will occur before United States District Judge Louise W. Flanagan later this year. The IRS-CI is leading the investigation, and Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
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. 5:23-CR-363-FL.
Pittsburgh Resident Sentenced for Possession of Firearm with Obliterated Serial NumberRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to time served—approximately 16 months of imprisonment—to be followed by three years of supervised release on his conviction of possession of a firearm with an obliterated serial number, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge David S. Cercone imposed the sentence on Raymond Young, 22.
According to information presented to the Court, on January 12, 2022, Allegheny County Police detectives were working in the Homestead area on a violent crime suppression detail when they observed Young preparing to smoke marijuana. When approached by the detectives, Young reached for his waistband, where he had concealed a stolen and loaded Glock 23 semi-automatic handgun with a round in the chamber. The serial numbers on the slide and frame of the weapon were obliterated. Also recovered from Young’s person incident to his arrest were $544 in cash, approximately 100 grams of marijuana, and a black digital scale.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Allegheny County Police Department for the investigation leading to the successful prosecution of Young.
Pere Marquette Hotel Developers Sentenced to a Combined Five and Half Years in Prison for Mail Fraud, Money Laundering and Bankruptcy ChargesRead the Press Release
PEORIA, Ill. – Pere Marquette Hotel developers Gary E. Matthews and Monte J. Brannan were sentenced yesterday in federal court. Matthews, 81, of the 400 block of Highview Road in East Peoria, Illinois, has been sentenced to 40 months in the Bureau of Prisons. Brannan, 71, of the 3200 block of North Elmcroft Terrace, Peoria, Illinois was sentenced to 24 months imprisonment.
At the sentencing hearing before U.S. District Chief Judge Sara Darrow, the Government presented evidence that in 2008, Matthews created GEM Hospitality, LLC for the purpose of owning and developing a premiere hotel complex in downtown Peoria, Illinois. This project included renovating the existing Pere Marquette Hotel, as well as developing a new Marriott Courtyard Hotel. Immediately upon its inception, Matthews began defrauding his investors, sweeping their investments into his existing business accounts, and using their funds for several purposes unrelated to the Pere Marquette project.
Brannan joined Matthews as a partner in the project in July 2011, and the Government presented evidence that once both hotels were opened, he and Matthews conspired to steal funds from the investors and lenders to the project and to launder their ill-gotten funds.
After a lengthy hearing, Matthews was found individually responsible for stealing more than $3,400,000 from more than thirty individual investors. Matthews and Brannan were found jointly responsible for stealing an additional $4,700,000 from the hotel projects lenders and investors.
Also at the hearing, Judge Darrow rejected Matthews and Brannan’s arguments that their actions were simply a contract dispute. In doing so, Judge Darrow noted that at the heart of Matthews and Brannan actions was their repeated decisions to lie and steal from others and that what they did was “theft.” She went on to note that they had hurt the project’s investors and lenders, and the Peoria community through their actions.
Brannan pleaded guilty mid-trial to the 3 bankruptcy charges, but both Matthews and Brannan were tried on the remaining 18 counts in the 11-day trial. Matthews was found guilty of all 5 of the mail fraud counts and 12 of the 13 money laundering charges. Brannan was found guilty of all 5 of the mail fraud counts and all 13 money laundering charges.
Both Matthews and Brannan were released after their sentencing but were given dates to report to the Bureau of Prisons to begin serving their sentences. Their current bonds remain in full force and effect.
“The prosecution and conviction of Matthews and Brannan should serve as a reminder to those who are in positions of trust and authority, that they need to honor that trust.” said United States Attorney Gregory K. Harris. “The large-scale fraud committed in this case caused immense harm to individuals, businesses, and the City of Peoria. We will continue to seek justice and prosecute to the fullest those who take advantage of others for their own personal gain.”
"Gary Matthews and Monte Brannan presented a façade of upstanding businessmen, but in reality, they scammed lenders, creditors, and their community,” said Justin Campbell, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Despite the complexity of their deceitful business dealings, IRS Criminal Investigation and its fellow law enforcement partners were successful in bringing these two fraudsters to justice.”
“The U.S. Postal Inspection Service, along with its law enforcement partners, will aggressively investigate all schemes in which the U.S. Mail is used to victimize individuals and businesses and deprive them of their hard-earned money. These sentences are a clear indication that our investigative efforts will not cease until those responsible for such criminal acts are brought to justice,” said Ruth M. Mendonça, Inspector in Charge of the Chicago Division of the U.S. Postal Inspection Service.
“Today’s sentence shows that abusive and fraudulent conduct will not be tolerated, and the bankruptcy system and its integrity will be protected through the commitment of U.S. Attorney Harris and our law enforcement partners,” said U.S. Trustee Nancy J. Gargula for Region 10. The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10, encompassing the districts of Indiana and Central and Southern Illinois, is headquartered in Indianapolis with additional offices in Peoria, IL and South Bend, IN.
The case investigation was conducted by the United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Douglas F. McMeyer, Ronald L. Hanna, and William J. Lynch represented the government at trial. The case was presented to a federal grand jury for indictment by Criminal Chief Darilynn J. Knauss.
Oxford Man Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – An Oxford, Mass. man pleaded guilty last week to his role in a large-scale drug trafficking conspiracy that allegedly distributed fentanyl and cocaine in and around the Quincy and Weymouth areas.
Chaasad Cyprien, 23, pleaded guilty to possession with intent to distribute cocaine and to conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Court Judge William G. Young scheduled sentencing for July 17, 2024.
Cyprien was charged in September 2022, along with Aderito Amado, Neylton Fontes and Erica Vieira. Cyprien possessed with intent to distribute cocaine and participated in a conspiracy to distribute cocaine in Quincy and Weymouth until at least January 2021. Cyprien is the first defendant to plead guilty. The remaining defendants have pleaded not guilty and are pending trial.
The charge of possession with intent to distribute cocaine and conspiracy to distribute and possession with intent to distribute provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Plymouth County Sheriff’s Department; Plymouth and Weymouth Police Departments; and FBI’s Metro Boston Gang Task Force. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Philip A. Mallard of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Medford Construction Company Pleads Guilty to Tax Crimes and Making False StatementsRead the Press Release
BOSTON – A former Quincy man pleaded guilty last week to a tax fraud scheme that resulted in a tax loss of approximately $2,824,577 and making false statements about a fatal workplace accident.
Mauricio Baiense, 57, pleaded guilty to one count of conspiracy to defraud the United States, seven counts of failure to collect and pay over taxes, one count of aiding and assisting in the preparation of a false tax return and one count of making false statements. U.S. Senior District Court Judge William G. Young scheduled sentencing for July 19, 2024. In August 2022, Baiense was indicted by a federal grand jury.
Baiense owned and operated Contract Framing Builders, Inc. (CFB), a Medford-based construction business. Baiense was responsible for filing CFB’s quarterly employment tax returns and collecting and paying IRS payroll taxes withheld from the wages of the company’s employees. From approximately 2013 through 2017, Baiense facilitated having approximately $11 million worth of checks drawn on CFB’s corporate bank account to purported subcontractors, which were in fact nominee entities controlled by him. Baiense then cashed or directed others to cash the checks at a check cashing business and used the money to operate an “off-the-books” cash payroll for CFB’s employees. Baiense did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. Baiense also assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.
When questioned under oath at a U.S. Department of Labor Occupational Safety and Health Administration hearing regarding a fatal workplace accident pertaining to an employee of Baiense’s company, Baiense made false statements to a federal investigator - falsely claiming that the deceased employee did not work for him.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of failure to collect and pay over taxes each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aiding and assisting in the preparation of a false tax return provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of making a false statement provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. 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; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Galen Blanton, Regional Administrator of the Department of Labor OSHA Region 1; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General in Boston made the announcement. Valuable assistance was provided by the Department of Homeland Security, OSHA Criminal Investigations Team, Region 1; and the Department of Labor, Office of Inspector General. Assistant U.S. Attorney David Tobin of the Major Crimes Unit and Trial Attorney Thomas F. Koelbl of the Justice Department’s Tax Division are prosecuting the case.
Owner of Former D.C.-Area Tax Preparation Business Sentenced for Tax SchemeRead the Press Release
An Indiana woman was sentenced today to 21 months in prison for conspiring to file false tax returns, wire fraud and tax evasion.
According to court documents and statements made in court, Awett Tedla, now of Indianapolis, was the owner and operator of Speedy Tax Services LLC in Washington, D.C., and District Heights, Maryland. From 2012 through 2016, Tedla and her co-conspirators prepared and electronically filed false income tax returns for clients that reported fictitious businesses and claimed certain tax credits, including the Earned Income Tax Credit, to generate inflated tax refunds. Tedla and her co-conspirators charged their clients different fees that depended on the size of the fraudulent refund.
In 2016, Tedla also filed a false tax return for herself that underreported gross receipts from her business and taxable income.
From 2012 through 2016, Tedla caused a tax loss to the IRS of approximately $171,534.
In addition to her prison sentence, U.S. District Judge Carl J. Nichols for the District of Columbia ordered Tedla to serve three years of supervised release and to pay $171,534 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation and the Treasury Inspector General for Tax Administration investigated the case.
Trial Attorneys Mark McDonald and George Meggali of the Tax Division prosecuted the case.
Ohio Financial Planner Sentenced to Prison for Promoting an Illegal Charitable Contribution Tax ShelterRead the Press Release
A financial planner from Cleveland was sentenced to 20 months in prison for conspiring to defraud the United States by promoting an illegal tax shelter scheme involving false charitable deductions.
According to court documents and statements made in court, Rao Garuda was the president and chief executive officer of Associated Concepts Agency Inc. He promoted a fraudulent tax shelter known as the “Ultimate Tax Plan” or the “Advanced Legacy Plan” that was organized, marketed and sold by his co-conspirator, Michael Meyer.
They marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that the organizers knew were fraudulent. In particular, Garuda and others promoted the scheme as a way for clients to receive the deduction without relinquishing ownership or control over the assets the clients purported to have donated. Garuda continued to sell the scheme despite being warned by several attorneys that the scheme was illegal.
Garuda also assisted clients in backdating documents so that clients could claim purported donations on their prior years’ tax returns.
In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Garuda’s clients. In response, Garuda created false, backdated documents and directed clients to submit them to the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan.
In addition to his prison sentence, U.S. District Judge Bridget Meehan Brennan for the Northern District of Ohio ordered Garuda to serve three years of supervised release and to pay $1,506,399 in restitution.
Cullen Fischel, Associated Concepts’ chief operating officer, was sentenced to four months in prison, three years of supervised release and was ordered to pay $268,605 in restitution for his role in the scheme.
On April 10, Meyer was sentenced to eight years in prison for his role in the scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Michael Boteler of the Tax Division and Assistant U.S. Attorney Elliott Morrison for the Northern District of Ohio are prosecuting the case.
Ohio Financial Planner Sentenced to Prison for Promoting an Illegal Charitable Contribution Tax ShelterRead the Press Release
A financial planner from Cleveland was sentenced to 20 months in prison for conspiring to defraud the United States by promoting an illegal tax shelter scheme involving false charitable deductions.
According to court documents and statements made in court, Rao Garuda was the president and chief executive officer of Associated Concepts Agency Inc. He promoted a fraudulent tax shelter known as the “Ultimate Tax Plan” or the “Advanced Legacy Plan” that was organized, marketed and sold by his co-conspirator, Michael Meyer.
They marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that the organizers knew were fraudulent. In particular, Garuda and others promoted the scheme as a way for clients to receive the deduction without relinquishing ownership or control over the assets the clients purported to have donated. Garuda continued to sell the scheme despite being warned by several attorneys that the scheme was illegal.
Garuda also assisted clients in backdating documents so that clients could claim purported donations on their prior years’ tax returns.
In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Garuda’s clients. In response, Garuda created false, backdated documents and directed clients to submit them to the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan.
In addition to his prison sentence, U.S. District Judge Bridget Meehan Brennan for the Northern District of Ohio ordered Garuda to serve three years of supervised release and to pay $1,506,399 in restitution.
Cullen Fischel, Associated Concepts’ chief operating officer, was sentenced to four months in prison, three years of supervised release and was ordered to pay $268,605 in restitution for his role in the scheme.
On April 10, Meyer was sentenced to eight years in prison for his role in the scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Michael Boteler of the Tax Division and Assistant U.S. Attorney Elliott Morrison for the Northern District of Ohio are prosecuting the case.
New York Man Sentenced to 6 Months in Federal Prison for Human SmugglingRead the Press Release
CONCORD – A Brooklyn New York man was sentenced today in federal court in Concord for smuggling unauthorized immigrants, U.S. Attorney Jane E. Young announces.
Abraham Hernandez, 27, was sentenced by U.S. District Court Judge Samantha Elliott to 6 months in prison and 1 year of supervised release. On January 17, 2024, Hernandez pleaded guilty to three counts of bringing in or harboring certain aliens.
“The defendant deliberately evaded United States immigration laws by smuggling unauthorized immigrants into this country as cargo,” U.S. Attorney Young said. “Illegally crossing the northern border through the Great North Woods is dangerous and risks human lives. The U.S. Attorney’s Office and the U.S. Border Patrol agents will continue to target those who pose a threat to U.S. border security and deliver consequences to those who prioritize their own profits over the safety of others and the laws of this country.”
“Effective enforcement hinges on real penalties for criminal actions,” said Border Patrol Swanton Sector Chief Robert N. Garcia. “Border Patrol continues to enforce the laws of the United States and this prosecution by U.S. Attorney Young and decision by U.S. Court Judge Elliot demonstrates that those attempting to break those laws will be held accountable,” he added.
According to the charging documents, on or about June 13, 2023, Abraham was stopped in Pittsburg, New Hampshire while transporting in a Honda SUV nine unauthorized immigrants who were in the United States in violation of law.
The United States Border Patrol led the investigation. Assistant U.S. Attorney Geoffrey Ward prosecuted the case.
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New Orleans Tax Preparer Charged with Tax and Covid FraudRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that CELINA BOLTON-FULTZ (“BOLTON-FULTZ”), age 35, of Slidell, was charged today with thirty counts of assisting in filing false tax returns, in violation of 26 U.S.C. § 7206(2), five counts of filing her own false returns, in violation of 26 U.S.C. 7206(1), four counts of false statements, in violation of 18 U.S.C. § 1001, and two counts of theft of government funds, in violation of 18 U.S.C. § 641.
According to the bill of information, from 2018 through 2022, BOLTON-FULTZ submitted thirty false tax returns for seven clients of her tax preparation business. In these tax returns, BOLTON-FULTZ fraudulently inflated her client’s income by adding fake “household help” income to their returns to obtain inflated tax credits that they otherwise would not have been eligible to receive. BOLTON-FULTZ also fraudulently reduced her own income on her 2017-2021 tax year returns, by reducing her gross receipts and reporting false expenses for businesses that she owned.
In addition to the tax crimes, BOLTON-FULTZ was charged with two types of fraud concerning funds disbursed under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Specifically, she was charged with four counts of making false statements, in violation of 18 U.S.C. § 1001, for submitting fraudulent applications in 2020 and 2021 for Paycheck Protection Program (“PPP”) loans. To accomplish this fraud, she provided false information about her businesses’ payroll and submitted fake tax forms to support those PPP applications. BOLTON-FULTZ was also charged with theft of government funds, under 18 U.S.C. § 641, for submitting false applications to the Small Business Administration for Economic Injury Disaster Loan (“EIDL”) EIDL funds. In this scheme, BOLTON-FULTZ inflated her businesses’ revenues and expenses and submitted false tax documents to support her EIDL applications. In total, she is alleged to have received $204,103 through the fraudulent PPP and EIDL applications.
If convicted of these charges, BOLTON-FULTZ faces up to three years of imprisonment as to each of the tax counts, up to five years of imprisonment as to each of the PPP fraud counts, and up to ten years of imprisonment as to each of the EIDL fraud counts. She also faces a fine of up to $100,000 for the tax counts and up to $250,000 for the PPP and EIDL fraud counts, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under 18 U.S.C. § 3571, or both. Following any term of imprisonment, BOLTON-FULTZ also faces up to three years of supervised release for the PPP and EIDL fraud counts, and up to one year of supervised release for the tax counts.
U.S. Attorney Duane A. Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of IRS Criminal Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas Moses, Health Care Fraud Coordinator.
New Orleans Man Pleads Guilty to Distributing Fentanyl and Illegally Possessing FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – KENTRELL HUBBARD, age 25, a resident of New Orleans, pleaded guilty on April 9, 2024 before U.S. District Judge Wendy B. Vitter to distribution of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) and being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8).
According to court documents, in June of 2023, HUBBARD sold fentanyl to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives. One week later, special agents with the Federal Bureau of Investigation observed HUBBARD in possession of a Ruger Model Ruger-57, 5.7 x 28 mm caliber semi-automatic pistol. HUBBARD is prohibited from possessing a firearm because of a prior federal felony conviction for conspiracy to transport stolen vehicles across state lines and a Louisiana conviction for simple burglary.
With respect to his conviction for distribution of fentanyl, HUBBARD faces up to 20 years in prison, a fine of up to $1,000,000, and a minimum of three years of supervised release. With respect to his conviction for being a felon in possession of a firearm, HUBBARD faces up to 15 years in prison, up to a $250,000 fine, and up to three years of supervised release. Each count also carries a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Indicted for Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on April 5, 2024, a federal grand jury charged TIERON PRICE, age 21, a resident of New Orleans, in a five-count superseding indictment with drug and gun violations. These violations occurred on May 22, 2023, and January 19, 2024.
In Counts 1 and 4 of the superseding indictment, PRICE is charged with possession of a machinegun, in violation of Title 18, United States Code, Section 922(o). If convicted, PRICE faces up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release. In Count 2, PRICE is charged with possession with intent to distribute Tampentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). If convicted, PRICE faces up to twenty years imprisonment, a fine of up to $1,000,000.00, and a period of at least three years of supervised release. In Count 3, PRICE is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). If convicted, PRICE faces a mandatory minimum sentence of five years up to life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, and up to five years of supervised release. In Count 5, PRICE is charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). If convicted, PRICE faces up to fifteen years of imprisonment, a fine of up to $250,000, and up to three years of supervised release. As to each charged count, PRICE also faces payment of a mandatory special assessment fee of $100.00.
According to court records, on May 22, 2023, PRICE led the Louisiana State Police on a vehicle chase in New Orleans that ultimately resulted in a collision and his arrest. PRICE’s DNA was found on a firearm taken from the vehicle. This firearm was fitted with a Glock switch, rendering it a fully automatic weapon. On January 19, 2024, the New Orleans Police Department, while conducting surveillance, spotted PRICE and several associates, inside a stolen vehicle. PRICE was eventually found inside a residence and arrested. After obtaining a search warrant for the residence, police discovered narcotics; a Glock Model 19, 9mm caliber semi-automatic pistol, bearing serial number BBZ5439; a Glock Model 21 Gen 4, .45 caliber pistol, bearing serial number AFUU442; a Glock Model 17, 9 mm caliber handgun, bearing serial number BRMW111; and two Glock switches.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Jersey Longshoreman Sentenced for Tax FraudRead the Press Release
A New Jersey man was sentenced yesterday to 29 months in prison for evading taxes and not filing income tax returns.
According to court documents and evidence presented at trial, Jonathan Michael worked as a crane mechanic in the machine shop at the Port Newark Container Terminal. In 2014, after decades of filing tax returns and paying his taxes, Michael gave his employer a fraudulent IRS Form W-4, Employee Withholding Allowance Certificate, that claimed he was exempt from any federal income tax withholding. From 2014 through 2021, Michael did not file tax returns or pay any tax, even though he earned over $2.5 million in wages.
According to evidence presented at the sentencing hearing, Michael’s conduct resulted in a tax loss to the IRS of $656,740.
In addition to his prison sentence, Judge Stephanos Bibas of the U.S. Court of Appeals for the Third Circuit, sitting by designation, ordered Michael to serve three years of supervised release and to pay $378,844 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division and former Assistant U.S. Attorney Matthew F. Nikic for the District of New Jersey prosecuted the case.
Montgomery County Felon Sentenced to 181 Months for Drug and Firearms OffensesRead the Press Release
ALBANY, NEW YORK – Bernardo Tovar, age 34, of Amsterdam, New York, was sentenced today to 181 months in prison for engaging in a drug trafficking conspiracy, for possessing with intent to distribute fentanyl pills, cocaine, and methamphetamine, and for possessing a firearm in furtherance of a drug trafficking crime.
United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
As part of his prior guilty plea, Tovar admitted that from May 2022 to December 2022, he conspired to distribute counterfeit oxycodone pills containing fentanyl, as well as cocaine and methamphetamine. Tovar, who has a prior violent felony conviction for attempted robbery, also admitted to possessing fentanyl pills, cocaine, and methamphetamine, as well as a loaded handgun to protect his drugs and drug proceeds, on December 7, 2022, when law enforcement searched his apartment.
Chief United States District Judge Brenda K. Sannes also imposed an 8-year term of post-imprisonment supervised release.
Tovar’s alleged co-conspirator, Samuel Payano, was arrested on December 7, 2022, and charged with distribution and possession with intent to distribute a controlled substance (fentanyl). The charges against Payano remain pending and are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The DEA and ATF investigated this case, and Assistant United States Attorney Alexander P. Wentworth-Ping is prosecuting the case.
Moldovan Botnet Operator Indicted for Role in Conspiracy to Unlawfully Access Thousands of Infected Computers Throughout the United StatesRead the Press Release
Note: Click here to view the wanted poster for Alexander Lefterov
PITTSBURGH, Pa. - A Moldovan national has been indicted by a federal grand jury in Pittsburgh for computer fraud crimes, aggravated identity theft, and conspiracy to commit wire fraud, United States Attorney Eric G. Olshan announced today.
The nine-count Indictment names Alexander Lefterov, a/k/a “Alipako,” a/k/a “Uptime,” a/k/a “Alipatime,” age 37, of Chisinau, Moldova, as the sole defendant.
According to the Indictment, from March 2021 through November 2021, Lefterov and his co-conspirators operated and controlled a botnet comprising thousands of infected computers throughout the United States, including in the Western District of Pennsylvania. Lefterov’s co-conspirators allegedly included “coders” who used their technical expertise to maintain and update the botnet over time. During the conspiracy, Lefterov and his co-conspirators stole victims’ login credentials—i.e., usernames and passwords—from the infected computers and then used the credentials to gain access to victim accounts at financial institutions, payment processers, and retail establishments as means to steal money from the victims. To further monetize the scheme, Lefterov allegedly leased the botnet to other co-conspirators by providing them access to infected computers as well as to the victims’ stolen credentials. Lefterov and his co-conspirators also provided access to the botnet for the purpose of distributing malware, including ransomware, to infected computers within the botnet. As the owner and operator of the botnet, Lefterov allegedly received a percentage-share of profits derived from the scheme.
“Lefterov and his co-conspirators allegedly used their sophisticated cyber skills and capabilities to victimize people throughout the country without regard for the financial havoc they wreaked,” U.S. Attorney Olshan said. “This case illustrates the resolve of our office and the law enforcement community to identify and pursue accountability from those who seek to exploit technology for their own personal gain at the expense of ordinary citizens. We will continue our collective fight to keep our neighbors safe regardless of whether they’re out on the street or sitting behind their keyboards.”
“Protecting Americans in cyber space is a top priority, and we will aggressively pursue anyone, no matter if they’re on U.S. soil or overseas, who believes our population is an easy target,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI and our partners will continue investigating the sources behind malware intrusions and the hijacking of machines for malicious attacks against Americans online. We urge everyone to practice secure cyber hygiene.”
“The United States Secret Service continues to locate cyber criminals wherever they may be, whether domestically or hiding abroad,” said Special Agent in Charge Timothy Burke, U.S. Secret Service Pittsburgh Field Office. “Working with our partners, we will continue these investigations to safeguard Americans from cyber fraud and other illicit activities.”
The Indictment against Lefterov was returned on December 28, 2021, and unsealed today.
The conspiracy to commit computer fraud, unauthorized access of a protected computer to obtain information for financial gain, and conspiracy to commit wire fraud offenses each carry a maximum penalty of five years in prison. The intentional damage to a protected computer offense carries a maximum penalty of 10 years in prison, and the maximum penalty for each of the aggravated identity theft offenses is not less than two years of imprisonment to run consecutively to any other term of imprisonment imposed. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and United States Secret Service conducted the investigation leading to the Indictment in this case. The Justice Department’s Office of International Affairs provided valuable assistance in this matter, as did Lithuanian and Moldovan authorities.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican citizen indicted for attempting to export 600 rounds of ammunition to MexicoRead the Press Release
BROWNSVILLE, Texas – A federal grand jury has returned an indictment against a Mexican citizen residing in San Benito for attempting to smuggle ammunition into the Republic of Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Fabian Osiel Flores-Morales, 30, attempted to depart the United States into Mexico via the outbound lane at the International Port of Entry in Los Indios March 21. Upon inspection of the 2009 Dodge Ram he was driving, authorities discovered hundreds of rounds of ammunition concealed throughout the vehicle.
The indictment alleges he attempted to export approximately 250 rounds of 9mm, 150 rounds of .45 caliber and 200 rounds of .40 caliber ammunition from the United States to the Republic of Mexico.
Flores does not have a license to export firearms or ammunition and has not applied for one, according to the charges.
Originally charged by criminal complaint, Flores-Morales remains in custody pending his arraignment.
If convicted, he faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David Coronado is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mexican National Sentenced to 2 Years in Prison for Unlawful Return to the United States after Removal and Unlawful Possession of a Means of IdentificationRead the Press Release
Jackson, Miss. – A Mexican National was sentenced to 24 months in prison for unlawful return of an alien removed after conviction for a felony and unlawful possession of a means of identification.
According to court documents, Juan Carlos Troncoso-Garrido, 53, was convicted in 1999 of possession with intent to distribute 5 kilograms or more of cocaine. As a result, he was placed in removal proceedings, and subsequently removed from the United States and returned to Mexico.
At some point thereafter, Troncoso-Garrido reentered the United States without inspection and assumed the name and identity of a United States citizen. After assuming the identity, Troncoso-Garrido fraudulently applied for a Transportation Worker Identity Credential (TWIC). This document can be used to gain access to critical infrastructure areas or sites. Agents from Homeland Security Investigations and the Transportation Security Administration were able to intervene and apprehend Troncoso-Garrido before he received a TWIC card.
U.S. Attorney Todd W. Gee, Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations, and Deputy Special Agent in Charge Anthony Whitmore of the Transportation Security Administration made the announcement.
Homeland Security Investigations and the Transportation Security Administration investigated the case.
Assistant U.S. Attorney Adam T. Stuart prosecuted the case.
Mexican National Sentenced for Wire Fraud and Identity TheftRead the Press Release
FRANKFORT, Ky. – A Mexican National who resides in Danville, Ky., Arturo Hernandez-Pozos, 54, was sentenced on Tuesday, by U.S. District Judge Gregory Van Tatenhove, to 42 months in prison, for wire fraud, making a false statement in a passport application, and aggravated identity theft.
According to his plea agreement, Hernandez-Pozos was previously removed from the United States on two occasions; and prior to his last removal in 2006, he had assumed the identity of U.S. Citizen who had previously died, at two years of age. Hernandez-Pozos used the U.S. Citizen’s birth certificate and baptismal record. He then procured a social security number for the stolen identity; and on three separate occasions, in 2011, 2015, and 2021, he submitted applications for a U.S. passport using that stolen identity. Ultimately, an investigation by the Social Security Administration OIG revealed that the Social Security Administration had paid Hernandez-Pozos $88,684.50 in disability benefits, from 2017 through 2023, based on his false representation of the stolen identity.
When law enforcement arrested Hernandez-Pozos, in June 2023, they conducted a search of his residence and discovered a number of fraudulent identity documents, including 20 social security cards, 14 permanent alien cards, three Mexican matriculation cards, and five driver’s licenses, all in various identities. They also found hologram stickers. Among the identities found was one for Ruben Rodriguez-Ortiz, which was another identity that Hernandez-Pozos had used. Additional investigation revealed that Hernandez-Pozos was taking orders for false identification documents and distributing them to individuals, in Kentucky and across the United States, using the United States Postal Service. There were more than 100 unique social security numbers involved in his scheme to transfer false identification documents.
Under federal law, Hernandez-Pozos must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. As part of his sentencing, Hernandez-Pozos must also pay $88,684.50 in restitution to the Social Security Administration.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Marvin D. Mauldin, Resident Agent-in-Charge, SSA Office of the Inspector General; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division; Rana Saoud, Special Agent in Charge, Homeland Security Investigations, Nashville Field Office; and Mark Woods-Hawkins, Special Agent in Charge, U.S. Department of State's Diplomatic Security Service, Chicago Field Office, jointly announced the sentencing.
The investigation was conducted by the SSA-OIG, USPIS, HSI, and U.S. Department of State's Diplomatic Security Service. Assistant U.S. Attorney Emily Greenfield prosecuted the case on behalf of the United States.
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