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16 April 2024
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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Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to three months in federal prison.
Jorge Luis Laguna-Razo, age 35, a citizen of Mexico illegally present in the United States and residing in Charlotte, North Carolina, received the prison term after a January 31, 2024, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Laguna-Razo admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Laguna-Razo was previously deported in October 2017 following his conviction in the Southern District of Texas for illegally entering the United States. He was also deported to Mexico in February 2008. On September 30, 2023, immigration officials learned Laguna-Razo had illegally returned to the United States and found Laguna-Razo at the Tama County Jail following his arrest for operating a motor vehicle while intoxicated. Laguna-Razo was convicted of OWI on January 3, 2024.
Laguna-Razo was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Laguna-Razo was sentenced to 92 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Laguna-Razo is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-02.
Follow us on Twitter @USAO_NDIA.
Meth “cooks” sent to prison in custom importation schemeRead the Press Release
McALLEN, Texas – Three men have been sentenced for their roles in a scheme to traffic and “cook” custom meth orders in the McAllen area, announced U.S. Attorney Alamdar S. Hamdani.
Alfredo Duarte, 32, Fullerton, California, and Mexican citizens Abraham Pena-Quintero, 39, and Francisco Hernandez-Madrid, 49, each pleaded guilty April 24, 2023.
Chief U.S. District Judge Randy Crane has now imposed a 135-month-term of imprisonment for Duarte, while Pena-Quintero and Hernandez-Madrid received 78 and 57 months, respectively. Duarte must also serve three years of supervised release following his sentence. Not U.S. citizens, Pena-Quintero and Hernandez-Madrid are expected to face removal proceedings following their respective terms of imprisonment. At the hearing, the court heard additional evidence about how Duarte planned and orchestrated a scheme with undercover authorities to trade guns in exchange for drugs. In handing down the prison terms, Judge Crane noted the specialized methods of the scheme to “cook” exceptionally large crystals of meth and the dangerousness that such narcotics represent to the United States.
An undercover investigation around 2021 revealed Duarte and co-conspirators imported liquid meth from Mexico. They would then “cook” it into crystals to whatever purity level and size their customers wanted.
Through the course of the investigation, the individuals delivered over 11 kilograms of meth in the McAllen area. Duarte served as the customer-facing member of the conspiracy, while Pena-Quintero and Hernandez-Madrid were narcotics couriers.
Pena-Quintero and Hernandez-Madrid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Duarte was permitted to remain on bond and voluntarily surrender at a later date.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration conducted the investigation as part of a joint operation deemed “Operation: Knock Down.” Assistant U.S. Attorney Robert L. Guerra Jr. prosecuted the case.
Media Advisory: U.S. Attorney Announces National Crime Victims’ Rights Week EventsRead the Press Release
RALEIGH, N.C – In commemoration of National Crime Victims’ Rights Week (NCVRW), U.S. Attorney Michael Easley is announcing NCVRW observances planned in the Eastern District of North Carolina for the week of April 22-26, 2024. Members of the public and media are invited to attend.
- On Monday, April 22nd, candlelight vigils will be held in Raleigh and Wilmington to honor crime victims and their families.
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- Raleigh event details: 6:00 p.m. – 7:00 p.m. at the Wake County Commons Building (4011 Carya Drive, Raleigh, NC 27610). This event is being held in partnership with the Wake County District Attorney and Wake County Sheriff’s Office.
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- Wilmington event details: 7:00 p.m. – 8:00 p.m. at the Alton Lennon Federal Building (2 Princess Street, Wilmington, NC 28401). This event is being held in partnership with the New Hanover District Attorney’s Office and A Safe Place.
- On Tuesday, April 23rd, the National Crime Victims’ Rights Ceremony will be held in Raleigh. This event is sponsored by the U.S. Attorney’s Offices for the Eastern, Middle and Western District and the Interagency Council.
- 11:00 a.m. – 12:30 p.m. at the State Archives Building (109 E. Jones Street, Raleigh, NC 27601)
- Registration is required for this event. https://www.justice.gov/usao-ednc/event/ncvrw-ceremony-2024
For additional information about this year’s NCVRW and how to assist victims in your own community, please visit the United States Attorney’s Office website. For more ideas on how to support victims of crime, visit OVC’s website at www.ovc.ojp.gov.
Malden Man Sentenced for Distributing Fentanyl and Using and Trafficking Stolen Identities and Credit CardsRead the Press Release
BOSTON – A Malden man was sentenced last week in federal court in Boston to distributing fentanyl and using stolen identities to conduct transactions and obtain credit cards.
Derick Coulanges, a/k/a/ “Casa,” 38, as sentenced by U.S. District Court Judge Indira Talwani to 42 months in federal prison followed by three years of supervised release. In January 2024, Coulanges pleaded guilty to distribution and possession with intent to distribute fentanyl; possession of five or more identification documents with intent to use them unlawfully; and use of and trafficking in unauthorized access devices with intent to defraud to obtain property valued over $1,000.
In January and February 2023, Coulanges was recorded selling a cooperating witness 50 grams of fentanyl in Coulanges’ Mercedes Benz. In the recordings, Coulanges also offered to procure counterfeit driver’s licenses for the cooperating witness that contained stolen personal identifying information (PII). Coulanges would go on to explain the manner in which a counterfeit driver’s license bearing stolen PII could be utilized to open bank accounts and obtain credit cards to purchase items.
In March 2023, during a search of Coulanges’ Malden apartment, which he had obtained using a drug customer’s stolen identity, approximately 28 grams of methamphetamine was located. During a search of Coulanges’ Mercedes Benz, six driver’s licenses bearing stolen PII and one counterfeit license that bore Coulanges’ photograph with stolen PII of an individual from Ohio were recovered. A subsequent investigation revealed that the individuals associated with the driver’s licenses had been the victims of identity theft and had bank accounts and credit cards opened in their name. The counterfeit driver’s license bearing Coulanges’ photograph had been used to open bank accounts, apply for loans and obtain credit cards. Surveillance footage was located depicting Coulanges opening the accounts and then utilizing the fraudulently obtained credit cards to conduct transactions at various retailers, including at two jewelry stores where he purchased approximately $12,000 in jewelry.
Coulanges’ stole the identities of 17 victims, including a handful of his drug customers. The other stolen identities were from victims from across the United States. The Mercedes Benz that Coulanges owned was obtained through a fraudulent loan that he coerced one of his drug customers to obtain. Coulanges also procured a luxury apartment through a fraudulent loan application using the stolen identity and license of another drug customer.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
MEDIA ADVISORY: U.S Attorney Will Thompson to Honor Crime Victims and Advocates at Thursday, April 18, 2024 CeremonyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will preside over the Opening Ceremony for the 23rd Annual Operation Reach Out and present this year’s Excellence in Victim Advocacy and Justice Awards on Thursday, April 18, 2024, at 10 a.m. at the Robert C. Byrd U.S. Courthouse in Charleston.
Honorees include the West Virginia Supreme Court of Appeals for its Remote Domestic Violence and Sexual Assault Outreach Project. This initiative allows victims in a growing number of counties to file petitions and participate in court hearings remotely, without having to be in the same building as the people from whom they are seeking protection. Law enforcement officers, local and state government officials, and nonprofit service organizations are also among the honorees.
This annual event is held to raise awareness of victims’ rights, educate the public about the various organizations that provide services to crime victims, and promote crime prevention and safety.
The U.S. Attorney’s Office for the Southern District of West Virginia and the Operation Reach Out Committee sponsor this ceremony in coordination with National Crime Victims' Rights Week (NCVRW), which is being commemorated this year on April 21-27. The 2024 NCVRW theme is “How would you help? Options, services, and hope for crime survivors.”
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. In 1981, President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week to bring greater sensitivity to the needs and rights of victims of crime.
More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ojp.gov/program/national-crime-victims-rights-week/overview.
WHAT: 23rd Annual Operation Reach Out Opening Ceremony
WHEN: Thursday, April 18, 2024, at 10 a.m.
WHERE: Fifth Floor, Robert C. Byrd U.S. Courthouse, Charleston
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.
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Long Island Businessman Sentenced to 24 Months in Prison for Covid-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Donald Finley, a Locust Valley businessman and owner of the now-defunct Jekyll & Hyde theme restaurant in Manhattan and the Bayville Adventure Park on Long Island, was sentenced by United States District Judge Joan M. Azrack to 24 months in prison. Finley pleaded guilty in May 2023 to disaster relief fraud and wire fraud in connection with his receipt of $3.2 million dollars in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). As part of his sentence, Finley has paid in full $3.2 million in restitution. As part of his sentence, Finley was also ordered to pay a $15,000 fine and complete 500 hours of community service.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.
“Finley viewed the deadly pandemic that was gripping the nation as a way to steal millions of dollars in COVID-19 relief funds that he used to purchase a vacation home in Nantucket,” stated United States Attorney Peace. “Today the defendant learned the price to pay for such a shameful crime is a loss of his freedom and full restitution for the victims of his scam. Let this be a lesson to other lawbreakers who have engaged in similar conduct that this Office will not forgive and forget COVID-19 fraud.”
“Donald Finley is an admitted criminal, pleading guilty to pocketing millions in COVID-19 relief funds. While he was enjoying his spoils from his ill-gotten gains, many business owners with legitimate needs were just able to keep the doors open. Today’s sentencing means that no one was amused by this Bayville Adventure Park owner’s criminal acts, and he will now face time in prison,” stated IRS-CI Special Agent-in-Charge Fattorusso.
USPIS Inspector-in-Charge Brubaker said, “Postal Inspectors and our law enforcement partners are committed to fighting fraud in whatever form it takes, and we will pursue criminals from the busy streets of Manhattan to the shores of a quiet seaside village. We want crooks to know that when you use the mail to defraud the public, justice will be served. Today’s sentencing is proof of that truth.”
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. The PPP program was overseen by the Small Business Administration (“SBA”) and various financial institutions received and processed the PPP loan applications, which, if approved, would then be funded directly by the lenders and backed by the federal government.
One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL Advance which did not have to be repaid.
As set forth in court filings, between March 2020 and March 2021, amid the COVID-19 pandemic, Finley fraudulently applied for, and received, at least 29 PPP and EIDLP loans totaling approximately $3.2 million on behalf of corporate entities he controlled. The applications contained false information, bogus financial data and fabricated supporting documentation, all of which was designed to fraudulently induce the SBA and the lenders administering the PPP and EIDL programs to approve the loans. Once the loans were approved, Finley sent the funds through more than 30 bank accounts to prevent tracing of the proceeds, with substantial portions of the stolen funds being used to purchase real property in Nantucket, Massachusetts in February 2021.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution.
The Defendant:
DONALD FINLEY
Age: 61
Locust Valley, New YorkE.D.N.Y. Docket No. 23-CR-181 (JMA)
Level III Sex Offender Convicted on Child Pornography Charges for a Fifth TimeRead the Press Release
PROVIDENCE, RI – A level III sex offender is scheduled to be sentenced in federal court in July, having been convicted for a fifth time on child pornography charges, announced United States Attorney Zachary A. Cunha.
Patrick M. O’Donnell, 63, arrested in July 2023, less than one month after being released from state prison after completing a four-year term of incarceration following his fourth state conviction on child pornography offenses, pleaded guilty on Monday in federal court to a charge of possession of child pornography.
In this most recent matter, during a sex-offender compliance check conducted on July 6, 2023, O’Donnell was found to be in possession of two cellphones, in violation of the conditions of the terms of his state probation. A forensic review of the cellphones revealed of images of child pornography.
O’Donnell is scheduled to be sentenced in federal court on July 29, 2024. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to court records, O’Donnell was convicted previously in Rhode Island state court on child pornography offenses in 2007, 2011, 2016, and 2020.
The case in federal court is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by Homeland Security Investigations, the Rhode Island State Police Internet Crimes Against Children Task Force, Cranston Police, and the Rhode Island Department of Corrections, Probation and Parole.
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Justice Department Secures Agreement to Resolve Claims of Immigration-Related Discrimination at Washington University School of Medicine in St. LouisRead the Press Release
The Justice Department announced today that it secured a settlement agreement with The Washington University, a private university headquartered in St. Louis. The agreement resolves the department’s determination that its medical school, known as Washington University School of Medicine in St. Louis (WashU School of Medicine), violated the Immigration and Nationality Act (INA) by discriminating against a worker based on his citizenship status and then retaliating against him for complaining about the discrimination.
“Workers who believe that an employer has discriminated against them based on citizenship status have the right to stand up for themselves, including by making internal complaints to the employer, without retaliation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding employers accountable for unlawful discrimination and retaliation.”
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) determined that WashU School of Medicine discriminated against an individual who had been granted asylum by the federal government when it repeatedly confronted him about his immigration status, his documentation and his right to work, even though he had provided sufficient proof of his permission to work. The department also determined that WashU School of Medicine retaliated against the worker when it terminated his employment for complaining about the discrimination.
Under the terms of the settlement, the school will pay civil penalties to the United States and pay backpay to the affected worker who filed a complaint with IER. The agreement also requires the school to train its personnel on the INA’s antidiscrimination requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements.
IER is responsible for enforcing the antidiscrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices or retaliation and intimidation.
Find more information on how employers can avoid discrimination when hiring workers with asylum or refugee status on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Announces That It Will Provide Technical Assistance to Indianapolis Metropolitan Police Department Under COPS Office’s Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced it will engage with the Indianapolis Metropolitan Police Department (IMPD) through the COPS Office’s Collaborative Reform Initiative’s Critical Response program.
In conjunction with the National Policing Institute, and at the request of IMPD Chief Christopher Bailey, the COPS Office will conduct an independent review and analysis of data, records, policies, and practices related to officer involved shootings. The review will also examine the department’s policies, procedures, training, and practices to assist the Department as they work to make them more reflective of accepted state and national best and emerging practices.
“It takes a real commitment to transparency to engage in these types of reviews,” said Acting Associate Attorney General Benjamin C. Mizer. “This is a significant step for the Indianapolis Metropolitan Police Department in their efforts to ensure effective community policing, and we know both the Department and the community will benefit.”
“Taking an in-depth look at these areas is always a positive step and can result in real changes,” said Director Hugh T. Clements, Jr. of the COPS Office. “We credit Chief Bailey and the leadership of the department for asking for this assistance.”
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at www.cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Critical Response program is designed to provide targeted technical assistance (TA) to state, local, territorial, and Tribal law enforcement agencies experiencing high profile events, major incidents, or sensitive issues of varying need. Critical Response is highly customizable by providing flexible assistance to law enforcement agencies that have recently experienced a critical incident or identified an issue of significant community concern in their department’s operations. The TA generally falls into three categories: (1) immediate delivery of TA to address a pressing and acute need, (2) data analysis, and (3) after-action reviews to understand and learn from law enforcement and public safety responses to critical incidents or issues.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
Jamaican National Pleads Guilty to Debt Relief ScamRead the Press Release
Sereika Savariau, 37, of Jamaica, pleaded guilty today in U.S. District Court to creating a series of fraudulent debt relief companies that tricked U.S. victims into paying fraudulent processing fees and disclosing sensitive personal identifying information.
The announcement was made by U.S. Attorney Matthew M. Graves and Assistant Inspector General for Investigations Sally Luttrell of the Treasury Department, Office of Inspector General.
Savariau, also known as Sereika Savariau-Goodison, pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution, which carries a potential penalty of 30 years in prison. The Honorable Amit P. Mehta presided over Savariau’s guilty plea and scheduled sentencing for September 19, 2024.
As part of her guilty plea, Savariau admitted that from at least June 2016 through September 2018, she and other conspirators created and operated a series of fraudulent debt relief companies that tricked U.S. citizens into paying bogus processing fees and disclosing personal identifying information and identity documents. One of the fraudulent websites said consumers could receive up to $60,000 in government-funded aid to pay their bills. Another claimed consumers could receive up to $25,000 in annual debt relief.
Savariau admitted that through their false representations she and her co-conspirators tried to defraud U.S. victims out of more than $550,000. More than 50 individuals sent money to conspirators because of the scheme, most commonly through Western Union, believing the funds were service processing fees.
Conspirators also fraudulently used some of the victims’ personal identifying information for other illegal purposes. For example, one victim’s information was used to create a PayPal account for use in the scheme. Her information also was used to apply for and obtain an American Express pre-paid credit card. A different victim’s name and address were used to register one of their fraudulent debt relief sites.
Savariau’s conduct directly violated a prior judicial order issued in September 2015 by the Honorable Reggie B. Walton in Case No. 14-CV-1414 that, among other things, permanently restrained her and those working with her from misrepresenting to others that they would reduce substantially consumers’ debts.
Savariau was indicted by a federal grand jury in December 2021 and extradited from Jamaica to the United States in September 2023.
This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Justice Department's Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau.
The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello of the Criminal Division's Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia.
International Arms Dealers Charged with Conspiring to Unlawfully Export Weapons and Ammunition from the United States to Sudan and IraqRead the Press Release
MIAMI – An indictment was unsealed yesterday charging Syria national Mohamad Deiry and Lebanese national Samer Rayya, both principals of an Iraq-based arms company, Black Shield Ltd., with conspiring to export munitions from the United States to Sudan and Iraq without the necessary licenses and approvals, in violation of the Arms Export Control Act. Additionally, Deiry and Rayya were charged with conspiring to commit money laundering in furtherance of their illicit procurement activities.
Both Rayya and Deiry remain at large and wanted by the FBI. The defendants have ties to or may visit Syria, Lebanon, Iraq, Turkey, Russia, Belarus, Sudan and Libya.
Concurrent with this announcement, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Black Shield, also known as Black Shield for Trading LLC, Deiry, and Rayya, as well as other individuals and entities involved in the procurement network used by Deiry and Rayya in support of Black Shield’s illegal supply of munitions used in conflicts around the world.
“The U.S. Attorney’s Office is committed to the prosecution of those individuals and corporations that illicitly procure munitions to be shared overseas,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Our goal is to identify and thwart arms traffickers and money launderers whose criminal acts fuel the destabilization of nations and perpetuation of international conflicts.”
“These defendants allegedly ran an international arm trafficking ring and conspired to unlawfully export anti-aircraft ammunition and other military arms and munitions from the United States to Sudan and Iraq, promoting violence and putting Americans and our allies at risk,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These charges exemplify the Justice Department’s commitment to investigating and holding accountable those who defy our U.S. export controls.”
“This indictment demonstrates the FBI’s resolve to investigate those who seek to illegally acquire and sell U.S. arms, ultimately fueling conflict around the world,” said Executive Assistant Director of the FBI’s National Security Branch Larissa L. Knapp. “Deiry and Rayya’s alleged actions will not be taken lightly, and the FBI will do all within its power to ensure that they are brought to justice. Illegal arms exportation and international money laundering will not be tolerated.”
According to the indictment, between April and November 2016, Deiry, Rayya and others conspired to export munitions, including 23-millimeter antiaircraft ammunition, Bushmaster 40mm Grenade Launchers, FN SCAR-L CQC (5.56x45mm) assault rifles, FN SCAR-H CQC (7.62x51mm) assault rifles, FNH 5.7x28mm green tip ammunition, and HK MR762A1 LRP ii (7.62x51mm) assault rifles, from the United States to Sudan and Iraq without first obtaining the required licenses or approvals from DDTC. Specifically, the co-conspirators attempted to illegally acquire the munitions from the United States in a deal worth $1,200,000, which was part of a larger scheme to illegally acquire $4 million worth of 23-millimeter ammunition. The conspiracy involved the transshipment of the munitions from the United States to Guatemala and from Guatemala to false end-users in Cyprus before ultimately arriving in Sudan and Iraq. In furtherance of the conspiracy, Black Shield wired a downpayment of $100,000 from a front company located in Benin, West Africa. The conspiracy involved both Black Shield emissaries from India and Belarus, who traveled to the United States to inspect the munitions, as well as Israeli American and Israeli Romanian-Uzbeki brokers, who acted as middlemen between the supplier and end-users.
Deiry and Rayya are charged with conspiracy to unlawfully export defense articles from the United States, which carries a maximum statutory penalty of five years in prison; and conspiracy to engage in international money laundering, which carries a maximum statutory penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Miami Field Office is investigating the case.
Assistant U.S. Attorney Randy Hummel for the Southern District of Florida is prosecuting the case, with valuable assistance from Trial Attorneys Brendan Geary and Tracy Varghese of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-6029.
Indictment
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International Arms Dealers Charged with Conspiring to Unlawfully Export Weapons and Ammunition from the United States to Sudan and IraqRead the Press Release
An indictment was unsealed yesterday charging Syria national Mohamad Deiry and Lebanese national Samer Rayya, both principals of an Iraq-based arms company, Black Shield Ltd., with conspiring to export munitions from the United States to Sudan and Iraq without the necessary licenses and approvals, in violation of the Arms Export Control Act. Additionally, Deiry and Rayya were charged with conspiring to commit money laundering in furtherance of their illicit procurement activities.
Both Rayya and Deiry remain at large and wanted by the FBI. The defendants have ties to or may visit Syria, Lebanon, Iraq, Turkey, Russia, Belarus, Sudan and Libya.
Concurrent with this announcement, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Black Shield, also known as Black Shield for Trading LLC, Deiry, and Rayya, as well as other individuals and entities involved in the procurement network used by Deiry and Rayya in support of Black Shield’s illegal supply of munitions used in conflicts around the world.
“These defendants allegedly ran an international arm trafficking ring and conspired to unlawfully export anti-aircraft ammunition and other military arms and munitions from the United States to Sudan and Iraq, promoting violence and putting Americans and our allies at risk,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These charges exemplify the Justice Department’s commitment to investigating and holding accountable those who defy our U.S. export controls.”
“This indictment demonstrates the FBI’s resolve to investigate those who seek to illegally acquire and sell U.S. arms, ultimately fueling conflict around the world,” said Executive Assistant Director of the FBI’s National Security Branch Larissa L. Knapp. “Deiry and Rayya’s alleged actions will not be taken lightly, and the FBI will do all within its power to ensure that they are brought to justice. Illegal arms exportation and international money laundering will not be tolerated.”
“The U.S. Attorney’s Office is committed to the prosecution of those individuals and corporations that illicitly procure munitions to be shared overseas,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Our goal is to identify and thwart arms traffickers and money launderers whose criminal acts fuel the destabilization of nations and perpetuation of international conflicts.”
According to the indictment, between April and November 2016, Deiry, Rayya and others conspired to export munitions, including 23-millimeter antiaircraft ammunition, Bushmaster 40mm Grenade Launchers, FN SCAR-L CQC (5.56x45mm) assault rifles, FN SCAR-H CQC (7.62x51mm) assault rifles, FNH 5.7x28mm green tip ammunition, and HK MR762A1 LRP ii (7.62x51mm) assault rifles, from the United States to Sudan and Iraq without first obtaining the required licenses or approvals from DDTC. Specifically, the co-conspirators attempted to illegally acquire the munitions from the United States in a deal worth $1,200,000, which was part of a larger scheme to illegally acquire $4 million worth of 23-millimeter ammunition. The conspiracy involved the transshipment of the munitions from the United States to Guatemala and from Guatemala to false end-users in Cyprus before ultimately arriving in Sudan and Iraq. In furtherance of the conspiracy, Black Shield wired a downpayment of $100,000 from a front company located in Benin, West Africa. The conspiracy involved both Black Shield emissaries from India and Belarus, who traveled to the United States to inspect the munitions, as well as Israeli American and Israeli Romanian-Uzbeki brokers, who acted as middlemen between the supplier and end-users.
Deiry and Rayya are charged with conspiracy to unlawfully export defense articles from the United States, which carries a maximum statutory penalty of five years in prison; and conspiracy to engage in international money laundering, which carries a maximum statutory penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Miami Field Office is investigating the case.
Assistant U.S. Attorney Randy Hummel for the Southern District of Florida is prosecuting the case, with valuable assistance from Trial Attorneys Brendan Geary and Tracy Varghese of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentHuntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Danielle D. Jones, 35, of Huntington, pleaded guilty today to distribution of fentanyl and a quantity of cocaine base, also known as “crack.”
According to court documents and statements made in court, on August 16, 2023, Jones sold quantities of crack and what she thought was heroin for $800 to a confidential informant at her Huntington residence. Jones admitted to the transaction, and to arranging it with the informant beforehand. Jones further admitted to selling a quantity of what she thought was heroin to the confidential informant on three other occasions between August 22, 2023, and December 27, 2023, at her residence. Jones also sold the confidential informant a quantity of crack during the December 27, 2023, transaction.
A forensic analysis later confirmed that the suspected heroin sold in all four transactions was fentanyl totaling approximately 27 grams.
Jones is scheduled to be sentenced on August 19, 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).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor 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. 3:24-cr-2.
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Human Smugglers Sentenced for Their Roles in Highway Death of JuvenileRead the Press Release
PHOENIX, Ariz. – Gerson Montano, 38, and Robert Dale Hart, 64, both of Tucson, were sentenced last month by United States District Judge Diane J. Humetewa for their roles leading to the death of a 17-year-old undocumented noncitizen. Montano was sentenced to 70 months in prison, followed by five years of supervised released. Montano was convicted of Transportation of Illegal Aliens Resulting in Death. Hart was sentenced to 51 months in prison, followed by five years of supervised release. Hart was convicted of Conspiracy to Transport Illegal Aliens Resulting in Death.
On August 3, 2022, at approximately 11 p.m., Arizona Department of Public Safety Officers attempted to stop an SUV traveling westbound on I-10. The SUV failed to yield then abruptly pulled over in the center median of the interstate. Multiple people then fled from the vehicle and ran across the eastbound lanes of traffic. Two individuals who fled were then struck by a semi-truck, both were undocumented noncitizens. One undocumented noncitizen, age 17, died at the scene, while the other was taken to the hospital with serious injuries.
The driver of the SUV, who also fled on foot, was Montano. During the subsequent investigation, agents learned Hart had hired Montano to transport the undocumented noncitizens.
Homeland Security Investigations, Customs and Border Protection’s United States Border Patrol, and Arizona Department of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Timothy Courchaine and Lisa E. Jennis, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-2022-1083-PHX-DJH
RELEASE NUMBER: 2024-051_Montano# # #
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.Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS – HECTOR STEFANO FLORES-DUARTE, a/k/a “Stefano Flores”, age 30, pled guilty on April 9, 2024 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to court documents, law enforcement authorities in Lafourche Parish, learned that HECTOR STEFANO FLORES-DUARTE, (“FLORES-DUARTE”) had been involved in domestic abuse and, subsequently, arrested him. Federal authorities were contacted and determined that FLORES-DUARTE was a citizen of Honduras. FLORES-DUARTE had been previously removed from the United States on June 10, 2022 and, thereafter, illegally re-entered the United States.
FLORES-DUARTE faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and Lafourche Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Gulfport Man Sentenced to 5 Years in Prison for Possession with Intent to Distribute over 80 Grams of FentanylRead the Press Release
Gulfport, Miss. – A Gulfport man was sentenced to 60 months in prison for possession with intent to distribute 81.1 grams of fentanyl.
Ashton Craig Cuevas, 19, was sentenced in U.S. District Court in Gulfport.
According to court documents, on April 21, 2023, the Harrison County Sheriff’s Office conducted a search warrant on the residence of Ashton Craig Cuevas, 19, in Gulfport. The search took place the day after Harrison County conducted a controlled purchase of fentanyl pills from Cuevas. The search of Cuevas’s home yielded 81.1 grams of fentanyl, as well as the pre-recorded buy money from the controlled purchase on April 20th.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
Cuevas pled guilty on August 22, 2023, to possession with intent to distribute a controlled substance.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and the Harrison County Sheriff’s Office.
Assistant U.S. Attorney Erica Rose prosecuted the case.
Four Individuals Indicted on Charges Related to Attempted International Arms TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Durante King-Mclean, age 25, Prasath Paramalingam, age 34, Archit Grover, age 36, all of Brampton, Ontario, Canada, and Jalisa Edwards, age 25, Ft. Lauderdale, FL, were charged in a multi-count federal indictment with charges stemming from a conspiracy to engage in international firearms trafficking.
According to United States Attorney Gerard M. Karam, the indictment alleges that King-Mclean was stopped by Pennsylvania State Police on September 2, 2023, in Franklin County, Pennsylvania, after several motor vehicle violations were observed. It is further alleged that King-Mclean, who was illegally in the United States from Canada, fled on foot when troopers discovered firearms in the rental vehicle. A court authorized search warrant for the vehicle led to the recovery of 65 firearms that were allegedly destined to be illegally smuggled into Canada. Two of those firearms were fully automatic and considered machine guns under federal law. Eleven of the firearms were determined to be stolen, and one firearm had an obliterated serial number.
The indictment further alleges that Paramalingam was involved in the conspiracy since April 2023 with persons known and unknown to the grand jury, including King-Mclean, to arrange for King-Mclean’s illegal entry into the United States. While King-Mclean was in the United States, Paramalingam allegedly arranged funding for King-Mclean to purchase the various firearms which he obtained in Florida, Georgia and elsewhere as King-Mclean traveled back towards Canada and through Franklin County. Grover and Edwards were charged by the grand jury as accessories after the fact for their alleged assistance to King-Mclean after his arrest to conceal evidence concerning his attempted gun smuggling and provide co-conspirators with information regarding the scope of the investigation, among other things.
“ATF’s highest priority is reducing violent gun crime, and firearms trafficking feeds that crime by putting guns in the hands of violent criminals and other prohibited people,” said Eric J. DeGree, Special Agent in Charge (SAC) for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Philadelphia Field Division. “Far from being a victimless crime, trafficking presents a grave threat to public safety across our nation and to our neighbors. Thanks to our cooperative efforts, this action has kept 65 firearms off the street — preventing them from being used in any number of killings and other crimes – and ended this international firearms trafficking scheme. ”
“International arms trafficking greatly endangers citizens of both countries,” said Acting Special Agent in Charge of HSI Philadelphia Sara C. Bay. “HSI is proud to be on the front lines against the crime and devastation that illegal weapons bring to the cities in which they are used. We will continue to use our global reach and cooperate with our law enforcement partners to combat transnational weapons trafficking.”“This indictment is the result of outstanding pro-active enforcement by our Patrol Troopers, which led to a larger successful inter-agency investigation,” said Major Serell Ulrich, Director, Pennsylvania State Police, Bureau of Criminal Investigation. “Illegal firearm trafficking has no boundaries, and we will continue to work with our law enforcement partners both federally and internationally to mitigate this worldwide problem. Anytime illegal firearm trafficking affects our Commonwealth, the Pennsylvania State Police will strive to identify, investigate, and arrest those responsible.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Harrisburg Office, the Pennsylvania State Police, and Homeland Security Investigations (HSI). Assistant United States Attorney William A. Behe is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Former Regions Bank Manager Indicted for Embezzlement and Bank Fraud SchemeRead the Press Release
A federal grand jury recently returned a four-count indictment charging Eric Jason Schouest, age 53, of Plaquemine, Louisiana, with embezzlement and bank fraud. Schouest appeared for his arraignment and pled not guilty to the pending charges.
According to court documents, Schouest was employed at Regions Bank from 2010 to 2021 as a branch manager overseeing business transactions and practices at the Regions Bank Plank Road branch. In his capacity as branch manager, Schouest had the authority to access customer accounts, instruct others to open and close accounts, issue cashier’s checks, and transfer funds in and out of bank customers’ accounts.
Beginning in or about 2020, and continuing through in or about April 2021, Schouest exploited his position of trust at Regions Bank to embezzle funds from customer accounts and deposit the money into his personal bank accounts. Schouest would also send false and fraudulent emails and forged documents to other Regions Bank employees to conceal his scheme. Schouest used some of the traceable fraudulent funds to make loan payments on personal items such as a house and a car. Through his scheme, Schouest caused a loss to Regions Bank of more than $250,000.
The embezzlement and bank fraud indictment counts are each punishable by a maximum penalty of 30 years in prison and a maximum $1 million fine.
This matter is being investigated by the Social Security Administration Office of the Inspector General, the United States Treasury Inspector General for Tax Administration, and the U.S. Secret Service. The case is being prosecuted by Deputy Criminal Chief Edward H. Warner and Litigation Counsel Jennifer M. Kleinpeter.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.