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12 September 2023
New York Man Admits Possessing Fentanyl with Intent to Distribute, Resisting ArrestRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted possessing fentanyl with intent to distribute and resisting his arrest with a deadly or dangerous weapon, U.S. Attorney Philip R. Sellinger announced.
Miguel Nuñez, 50, of Bronx, New York, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of possessing 40 grams of fentanyl with intent to distribute and one count of resisting and impeding officers with a deadly or dangerous weapon.
According to documents filed in this case and statements made in court:
On March 24, 2021, Nuñez and Jesus Higuera-Parra, 28, of Ontario, California, drove from New York City to Elizabeth, New Jersey, for the purposes of distributing fentanyl. When they arrived to meet the drug purchaser, they were approached by members of the Drug Enforcement Administration (DEA). Nunez, the driver of the vehicle, put his car in reverse and attempted to elude the law enforcement personnel, which resulted in a collision with a DEA car.
The narcotics offense to which Nunez pleaded guilty carries a mandatory minimum term of five years in prison, a maximum penalty of 40 years in prison, and a fine of $5 million. The resisting and impeding offense to which Nunez pleaded guilty carries a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 23, 2023.
Higuera-Parra previously pleaded guilty to an information charging him with possessing with intent to distribute fentanyl and is awaiting sentencing.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit and Benjamin Levin of the National Security Unit.
nunez.information.pdfNew Orleans Man Pleads Guilty to Federal Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Tuesday, September 12, 2023 that KEILEN HAWKINS, age 25, pled guilty to a one-count indictment for being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). HAWKINS faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100. Sentencing in this case is set for December 20, 2023.
On February 12, 2023, members of the New Orleans Police Department (NOPD) High Intensity Drug Trafficking Area (HIDTA) task force investigated complaints made in the NOPD 5th District about ongoing illegal narcotics distribution in the area. As officers conducted surveillance, they observed what was believed to be a hand-to-hand narcotics transaction. While officers continued their investigation, HAWKINS arrived on the scene. Officers detained HAWKINS for safety purposes while they conducted their investigation. Eventually, HAWKINS advised that he was in possession of a firearm. Officers recovered a Glock Model 19, nine-millimeter semi-automatic pistol, bearing serial number BVCS826, from HAWKINS’s waistband. Officers learned that HAWKINS had prior felony convictions punishable by a term of imprisonment in excess of one year, which made his firearm possession illegal under federal law. Namely, HAWKINS had been convicted most recently on August 18, 2022, in the Criminal District Court for the Parish of Orleans, Case Number 552-193 “J,” for being a felon in possession of a firearm and illegal possession of a stolen firearm, in violation of LA-R.S. 14:95.1 and LA-R.S. 14:69.1.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
Missouri Man Accused of Recording Sex with MinorRead the Press Release
ST. LOUIS – A man from Brookfield, in Linn County, Missouri, has been accused in an indictment in U.S. District Court in St. Louis of recording himself having sexual contact with a minor.
Russell Alan Pirkey, 52, pleaded not guilty Tuesday to a charge of sexual exploitation of a child and a charge of accessing with intent to view child pornography.
The indictment accuses Pirkey of coercing a minor into engaging in sexually explicit conduct for the purpose of video recording it between April 1 and April 8 of 2023. It also says Pirkey accessed child pornography between Jan. 1, 2023 and April 8, 2023.
A motion seeking to have Pirkey held in jail until trial says he used his cell phone to record himself having sexual contact with a 10-year-old girl. Pirkey was being held in jail on pending charges in Linn County Circuit Court.
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 sexual exploitation of children charge carries a potential penalty of 15 to 30 years in prison, a $250,000 fine or both. The access with intent to view charge is punishable by up to 20 years in prison and the same fine.
The FBI, the Brookfield Police Department and the Linn County Sheriff’s Office investigated the case. Assistant U.S. Attorney Nathan Chapman is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mexican National Sentenced to 14 Years for Meth Conspiracy, Illegally Reentering the United StatesRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally reentering the United States.
Miguel Esquivel-Alvarez, 41, was sentenced by U.S. District Judge Howard F. Sachs to 14 years in federal prison without parole.
On Jan. 24, 2023, Esquivel-Alvarez pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of illegally reentering the United States after having been deported.
Esquivel-Alvarez admitted that on July 31, 2020, he and others sold approximately 921.6 grams of pure methamphetamine at a gas station in the 1600 block of 14th Street in Kansas City, Mo., for $14,000. He and others also sold approximately 453.7 grams of methamphetamine at a parking lot in Independence, Mo., as well as a Ruger AR-556 rifle, for a total of $7,100.
Additionally, Esquivel-Alvarez and others transported approximately six kilograms of methamphetamine from a residence in Kansas City, Kansas, on Oct. 1, 2020. He was arrested following a car stop along Interstate-70 in Independence.
Esquivel-Alvarez had been deported and removed from the United States on Oct. 16, 2013, and was in the country illegally.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement, and the Kansas City, Mo., Police Department.
Mexican Citizen Sentenced to 27 Months for Illegally Possessing a FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jesus Dalather Corona, 33, a citizen of Mexico found in Jefferson County, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 27 months in prison for possessing a firearm as a felon. Corona pleaded guilty to this charge on June 5, 2023.
On December 19, 2022, a staff member at an employment facility in Fort Atkinson, Wisconsin was helping an employee find his jacket and grabbed a jacket from a shelf above a common area coat rack and felt a handgun. A temporary employee, later identified as Corona, immediately walked over to the staff member and said, “That’s my stuff. Don’t touch it.” Corona took the coat, folded it up, placed it back on the shelf, and walked away.
The staff member notified a security guard because the employment facility prohibited people from bringing firearms into the building. The security guard searched the jacket and found a loaded Taurus 9 mm pistol inside one of the jacket’s pockets.
The security guard called the Fort Atkinson Police Department. Law enforcement officers responded and took custody of the firearm, as well as 14 rounds of 9 mm ball ammunition. In addition, officers watched surveillance video that showed Corona wore the jacket when he entered the building, put the coat on the shelf, and confront the staff member when she grabbed Corona’s jacket.
Officers then asked to speak with Corona, who ultimately admitted that he had a felony conviction and purchased the firearm from a friend. Following the defendant’s admission, officers arrested Corona for illegally possessing the firearm.
In sentencing Corona, Judge Conley noted that Corona posed a danger to the community when he reentered the United States after being previously deported and armed himself with a firearm.
The charge against Corona was the result of an investigation conducted by the Fort Atkinson Police Department and U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Man Involved in Shooting at Wilmington Funeral Home Pleads Guilty to Drug and Gun ChargesRead the Press Release
WILMINGTON, N.C. – Charles Gilbert Green, age 29, pled guilty today to two counts of distribution of cocaine base (crack) and possession of ammunition by a convicted felon.
According to court documents and other information presented in court, in 2021 members of the Brunswick County Vice and Narcotics Unit received information that a man that went by “CJ” was distributing narcotics in Leland. Law enforcement was able to identify “CJ” as Charles Gilbert Green. On June 2, 2021, and on September 23, 2021, law enforcement utilized a confidential informant to conduct controlled purchases of cocaine base (crack) from the defendant.
On April 2, 2022, at approximately 1:30 p.m., officers with the Wilmington Police Department were dispatched to the area of 6th Street and Red Cross Street after receiving a ShotSpotter alert and multiple 911 calls about shots fired. Upon arrival, officers located one person suffering from multiple gunshot wounds and he was immediately transported to the hospital where he received treatment and recovered from his injuries. During their investigation, officers located six fired shell casings in front of the John H. Shaw’s Son Funeral Home on Red Cross Street, where people were gathered for a funeral. Five fired shell casings were also found on the southeast corner of Red Cross and North 6th Street. Officers were able to locate security camera footage which showed Green firing multiple shots from the southeast corner of Red Cross Street towards a group of individuals standing near the funeral home where the shell casings were found. Green then got into a white Ford Flex and fled the scene. Based on their review of the video footage, officers determined the shell casings found in front of the funeral home were fired in self-defense.
At the time of the shooting, Green was a convicted felon and was prohibited from possessing a firearm or ammunition. His prior felony convictions include a conviction for common law robbery in 2018 and a conviction for possession with intent to sell or deliver marijuana in 2014.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief United States District Judge Richard E. Myers II accepted the plea. Sentencing will occur before Chief United States District Judge Richard E. Myers II later this year. The FBI’s Coastal Carolina Safe Street’s Gang Task Force is leading the investigation, and Special Assistant United States Attorney William Van Trigt 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. 7:23-cr-00014-M.
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Maine Man Arrested for Racially-Motivated Death Threats Against Black NeighborRead the Press Release
A Maine man was arrested today on federal charges for sending a threatening voicemail to a neighbor.
According to the indictment, Charles Allen Barnes, 47, of Lewiston, allegedly used an interstate communications service to transmit a voice message in which he used racial slurs and stated that he was outside a neighbor’s residence and would kill any Black person who emerged. Barnes also allegedly chose the neighbor as the object of the offense because of the neighbor’s race.
Barnes is charged with one count of violating the federal interstate threats statute. If convicted, he faces a maximum penalty of five years in prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darcie N. McElwee for the District of Maine and Special Agent in Charge Jodi Cohen of the FBI Boston Division made the announcement.
The FBI Boston Division investigated the case.
Assistant U.S. Attorney Sheila W. Sawyer for the District of Maine and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
barnes_indictment_september_12.pdfMacon Resident Pleads Guilty to $3.5+ Million Tax Filing SchemeRead the Press Release
MACON, Ga. – A Middle Georgia woman admitted she falsified tax documents and received more than $331,758 in refunds, including creating a fake business claiming hundreds of non-existent employees, in an attempt to commit a tax fraud scheme totaling more than $3.5 million.
Lonnise Janelle Andrews, 43, of Macon, pleaded guilty to one count of making and subscribing a false return, one count of false claim for a tax credit and one count of false claim for a refund before U.S. District Marc T. Treadwell on Sept. 11. Andrews faces a maximum sentence of thirteen years in prison and a maximum of $600,000 in fines. In addition, Andrews agreed to pay $331,758 restitution to the IRS. Sentencing is scheduled for Jan. 4, 2024. Andrews is not eligible for parole.
“Those engaged in tax refund schemes and fraud are breaking federal law and will be held accountable for these crimes,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, we will seek justice on behalf of taxpayers.”
“Lonnise Andrews took responsibility today for fraudulently obtaining tax refunds and Employee Retention Credits when she pled guilty to these crimes,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal special agents will continue investigating, on behalf of honest taxpayers, those who engage in breaking tax laws.”
According to court documents, Andrews falsified IRS tax forms for herself, her father and a fake business, including reporting incomes, losses and withholdings she knew not to be true. On her own Form 1040 filed for tax year 2019, Andrews used a tax preparation website to generate fake Forms 1099-MISC and 1099-R; as a result, the IRS issued her a $165,245 refund check she was not entitled to, and she cashed.
In addition to the false Forms 1040 filed for herself and her father, Andrews filed false Forms 941 and Forms 7200, the latter developed by IRS in response to employment tax legislation, including the Families First Coronavirus Response Act (FFCRA) and Coronavirus Aid, Relief, and Economic Security (CARES) Act. Andrews filed for an entity named Andrews Harris Corbin (AHC), listing her father and a fictitious person named “Greg Corbin” as the organizers of AHC. AHC never filed an income tax return, had not been reported as a Schedule C business on anyone’s tax return and has never filed any documents with the Social Security Administration pertaining to its employees. Andrews signed and filed the false forms in 2020 and attempted to—and at one point successfully did—obtain refunds and credits. She reported AHC had 957 employees and requested a credit via a Form 7200 in the amount of $3,086,325. On April 11, 2020, she filed a quarterly Form 941 reporting AHC paid $1,435,500 in wages, tips and other compensation, and requested a refund in the amount of $25,978.83. AHC had no employees, had not paid any payroll taxes to be eligible for a refund and was not entitled to these credits and refunds. The IRS processed the Form 941 request for refund and sent a check in the amount of $25,978.83 to AHC at a UPS mailbox in Macon that Andrews had her father set up. Surveillance video confirmed her father picked the check up on Dec. 8, 2020. The check was not deposited and was later found in her bedroom during a search.
As part of her plea agreement, Andrews has agreed to pay restitution for the entirety of tax refunds listed in the indictment, totaling $331,758.
The case was investigated by the IRS.
Assistant U.S. Attorneys Elizabeth Howard and Amy Helmick are prosecuting the case for the Government.
Missoula Woman Sentenced to Prison on Methamphetamine and Fentanyl ChargesRead the Press Release
MISSOULA — A 34-year-old Missoula woman was sentenced today for possessing methamphetamine and fentanyl pills, U.S. Attorney Jesse Laslovich said.
U.S. District Judge Donald W. Molloy sentenced Lindsay Ann Rumph to 70 months in prison followed by 5 years of supervised release. The defendant pleaded guilty to possession with intent to distribute controlled substances in April 2023.
The government alleged in court documents that on February 4, 2023, in Missoula County, a traffic stop was initiated on the vehicle Rumph was driving and a later search of the vehicle, pursuant to a Montana State search warrant, resulted in the recovery of methamphetamine, fentanyl pills, various drug paraphernalia, a firearm, and $279 in U.S. Currency. Rumph was interviewed after the traffic stop and admitted that drugs would be found in both the vehicle and on her person. In March of 2023, the U.S. Department of Justice Drug Enforcement Administration Western Laboratory completed an analysis on the methamphetamine and determined it was more than 50 grams of actual methamphetamine.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Montana Regional Violent Crime Task Force.
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.
Missoula Man Sentenced to Prison on Methamphetamine and Fentanyl ChargesRead the Press Release
MISSOULA — A 36-year-old Missoula man was sentenced today for possessing methamphetamine and over 3,500 fentanyl pills, U.S. Attorney Jesse Laslovich said today.
U.S. District Judge Donald W. Molloy sentenced Joseph Anthony Schrantz to 10 years in prison followed by 5 years of supervised release. The defendant pleaded guilty to possession with intent to distribute controlled substances in April 2023.
“All Montanans know drugs and guns are a deadly combination and the amount of fentanyl Schrantz possessed in this case is staggering and alarming. Today’s sentence should send the message to criminals inclined to illegally possess guns and traffic dangerous drugs that we are committed to working with our law enforcement partners to bring them to justice in our continuing efforts to protect our communities.” U.S. Attorney Laslovich said.
The government alleged in court documents that on July 13, 2022, Missoula Police Department officers responded to Downtown Pawn for a report of a male that stole a Glock 22 .40 caliber handgun. Officers reviewed surveillance footage that showed Joseph Schrantz reaching over the counter, taking the firearm, and leaving the store. Later that day, officers recognized Schrantz driving a vehicle and initiated a traffic stop. Schrantz confirmed he had stolen the gun and provided consent for officers to retrieve it from under the center console of the vehicle. Schrantz was also in possession of two small cork-topped glass bottles: one containing 82 round blue pills marked “M30”, the other containing a small amount of methamphetamine. Lab testing reflected the pills were fentanyl and the meth was 100% pure. Law enforcement found another small baggie of meth and more than 100 additional fentanyl pills. In a key-code safe in the rear seat there were two large ziplock bags containing 3,451 fentanyl pills, one large ziplock bag containing 248 grams of 100% pure meth, distribution baggies, and a digital scale with residue. The center console held additional distribution baggies, and, on the floorboard, there was a black wallet with $734 in cash. The vehicle was registered to Schrantz and another female.
Assistant U.S. Attorney Karla Painter prosecuted the case, which was investigated by Missoula Police Department, Montana Probation and Parole, Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration.
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.
Lexington Businessman Sentenced to 10-months for Distributing Misbranded 3M N95 masksRead the Press Release
LEXINGTON, KY- Adam Sloan, 44, the Chief Commercial Officer of Old World Timber, a Lexington-based company specializing in antique wood reclamation, was sentenced by U.S. District Judge Karen Caldwell on Tuesday to 10 months in prison for selling misbranded N95 respirator masks during the COVID-19 pandemic.
In the fall of 2020, during the COVID-19 pandemic, Sloan, along with Nathan Brown, the CEO of Old World Timber, directed the company to begin importing and selling medical-grade 3M™ N95 respirators (masks). Old World Timber purchased more than 100,000 alleged 3M N95 masks from a company in China, and resold them to customers throughout the United States. In his plea agreement, Sloan acknowledged that by March 2021, information from multiple sources, including 3M’s COVID-19 Fraud and Counterfeit Product Response Team, alerted him to the high probability that the masks he imported from China were counterfeit. Sloan deliberately ignored these concerns and directed his company to continue selling the masks, misleading customers as to their authenticity. Between March 3, 2021 and April 9, 2021, Brown caused Old World Timber to sell 57,460 misbranded masks for a total of $129,353.
Upon Sloan’s release from prison, he will be under the supervision of the U.S. Probation Office for one year. Sloan was also ordered to pay $129,353 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; George A. Scavdis, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations Metro Washington Field Office; and James C. Harris, Special Agent in Charge, Homeland Security Investigations, Baltimore Field Division, jointly announced the sentence.
The investigation was conducted by the U.S. Food and Drug Administration and the U.S. Department of Homeland Security. The United States was represented by Assistant U.S. Attorney Will Moynahan.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Leader of International Money Laundering Network Sentenced for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
ALEXANDRIA, Va. – A foreign national was sentenced today to 10 years in prison and ordered to forfeit $6 million for conspiracy to commit money laundering after laundering millions of dollars of drug proceeds on behalf of international drug trafficking organizations.
According to court documents, from at least 2014 to 2020, Jianxing Chen, 42, of Belize City, Belize, led and controlled a network of couriers who transported cash generated by the sale of cocaine throughout the United States – including Chicago, Houston, Los Angeles, New York, and Atlanta – from those locations to New York City. From there, the cash was laundered through a variety of methods until it, or its equivalent value, was remitted to drug trafficking organizations in Latin America, including Mexico. Chen received “contracts” to transport and launder this money through co-conspirators who were prosecuted and convicted based on the same superseding indictment.
Chen coordinated the laundering of multimillion dollar quantities of drug proceeds from Latin American drug trafficking organizations, including organizations based in Mexico, into the hands of Chinese nationals, who subsequently engaged in a sophisticated scheme to covertly launder the drug money into mainland China, largely circumventing the U.S. financial system.
Chen pleaded guilty on May 23. In October 2021, co-defendant, Xizhi Li, was sentenced to 15 years in prison for leading the conspiracy to launder tens of millions of dollars for foreign drug trafficking organizations. Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Drug Enforcement Administration Administrator Anne Milgram made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema
The DEA Louisville Division and the DEA’s Special Operations Division, Bilateral Investigations Unit investigated the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland (Oregon), Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta, Manila, Tokyo, Seoul, Bangkok, Lima, and Canberra. The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection’s National Targeting Center were partners in the case’s investigation.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Chen from Peru. The United States also thanks Peruvian law enforcement authorities for their assistance and collaboration.
Assistant U.S. Attorney Anthony Aminoff, former Assistant U.S. Attorneys David A. Peters and Rachael C. Tucker, and Deputy Chief Mary K. Daly and Chief Stephen Sola of the Justice Department’s Money Laundering and Asset Recovery Section, Money Laundering and Forfeiture Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-334.
Leader of International Money Laundering Network Sentenced for Laundering Millions of Dollars in Drug ProceedsRead the Press Release
A foreign national was sentenced today to 10 years in prison and ordered to forfeit $6 million for conspiracy to commit money laundering after laundering millions of dollars of drug proceeds on behalf of international drug trafficking organizations.
According to court documents, from at least 2014 to 2020, Jianxing Chen, 42, of Belize City, Belize, led and controlled a network of couriers who transported cash generated by the sale of cocaine throughout the United States – including Chicago, Houston, Los Angeles, New York, and Atlanta – from those locations to New York City. From there, the cash was laundered through a variety of methods until it, or its equivalent value, was remitted to drug trafficking organizations in Latin America, including Mexico. Chen received “contracts” to transport and launder this money through co-conspirators who were prosecuted and convicted based on the same superseding indictment.
Chen coordinated the laundering of multimillion dollar quantities of drug proceeds from Latin American drug trafficking organizations, including organizations based in Mexico, into the hands of Chinese nationals, who subsequently engaged in a sophisticated scheme to covertly launder the drug money into mainland China, largely circumventing the U.S. financial system.
Chen pleaded guilty on May 23. In October 2021, co-defendant Xizhi Li was sentenced to 15 years in prison for leading the conspiracy to launder tens of millions of dollars for foreign drug trafficking organizations. Li signed a consent order of forfeiture for $10,000,000 to the United States pursuant to his plea.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and DEA Administrator Anne Milgram made the announcement.
The DEA Louisville Division and the DEA’s Special Operations Division, Bilateral Investigations Unit investigated the case, with assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit and the DEA’s offices in New York, Chicago, Los Angeles, Houston, Omaha, Atlanta, Newark, Portland (Oregon), Dallas, Mexico City, Merida (Mexico), Guatemala City, Belmopan (Belize), Beijing, Hong Kong, Jakarta, Manila, Tokyo, Seoul, Bangkok, Lima, and Canberra. The U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations (HSI), U.S. Postal Inspection Service, Interpol, and U.S. Customs and Border Protection’s National Targeting Center were partners in the investigation.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Chen from Peru. The United States also thanks Peruvian law enforcement authorities for their assistance and collaboration.
Deputy Chief Mary K. Daly and Chief Stephen Sola of the Justice Department’s Money Laundering and Asset Recovery Section, Money Laundering and Forfeiture Unit, former Assistant U.S. Attorneys David A. Peters and Rachael C. Tucker and Assistant U.S. Attorney Anthony Aminoff for the Eastern District of Virginia prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Leader of $25 Million International Money Laundering Conspiracy Pleads GuiltyRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to leading a sophisticated international money laundering organization that also distributed large quantities of cocaine and MDMA (ecstasy).
Jin Hua Zhang, 36, of Staten Island, N.Y., pleaded guilty to money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine. U.S. District Judge Angel Kelley scheduled sentencing for Feb. 1, 2024. Zhang was among 10 others charged in October 2022 in connection with the conspiracy. The defendants and one other were subsequently charged in a superseding indictment in May 2023.
“Money is the lifeblood of any narcotics trafficking organization. Mr. Zhang targeted the critical flow of funds and the vicious circle that leads to deadly drugs being sold on our streets every day. This office is committed to dedicating the resources to do whatever we can to choke off the flow of money as part of our efforts to combat narcotics trafficking,” said Acting United States Attorney Joshua S. Levy.
“Today, Jin Hua Zhang admitted to leading a sophisticated, transnational criminal organization that flooded the streets of Massachusetts with kilos of cocaine and ecstasy and laundered at least $25 million through a global network in an attempt to conceal their criminal conduct,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “FBI Boston’s Organized Crime Task Force will continue to work with our law enforcement partners to unravel elaborate and complex schemes like this one, to ensure the individuals behind them are held accountable for the harm they’ve inflicted on our communities.”
Zhang’s network was first detected in the greater Boston area, but alleged leaders and members of the organization were later identified throughout the United States and overseas. During a year-long investigation Zhang’s organization was infiltrated and it was determined that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses and internet-based scams. Zhang directed alleged co-conspirators to pick up hundreds of thousands of dollars in cash or transmit millions of dollars in wire transfers and bank deposits. Zhang then converted those funds into cryptocurrency, which he believed would enable his organization to transfer illicit funds without detection by banks’ security teams or law enforcement.
Over numerous recorded conversations and meetings, Zhang, and allegedly others, discussed efforts to launder funds from drug trafficking and other scams and laundered money from fraud operations based in Cambodia. In less than one year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents. To date, funds have been traced from the Zhang Organization to Hong Kong and elsewhere including China, India, Cambodia and Brazil, among other locations.
In addition to money laundering, Zhang, and allegedly others, were recorded distributing kilograms of cocaine and MDMA that Zhang intended for distribution in Massachusetts.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, at least eight years of supervised release and a fine of up to $10 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 U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.
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.
KC Man Sentenced to 15 Years for Illegal Firearm, Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm and for possessing methamphetamine to distribute.
Kendall A. Childress, 40, was sentenced by U.S. District Judge Howard F. Sachs to 15 years and eight months in federal prison without parole.
On April 20, 2023, Childress pleaded guilty to one count of being a felon in possession of a firearm and one count of possessing methamphetamine with the intent to distribute.
Kansas City police officers stopped Childress, who was driving a 2012 Kia Soul, on an outstanding felony arrest warrant on Sept. 20, 2022. When officers searched Childress during his arrest they found a Walther PK380 semi-automatic firearm tucked into the left side of his waistband and a Smith & Wesson 9mm semi-automatic firearm in the right side of his waistband. The Smith & Wesson firearm had been reported stolen.
Officers also searched the Kia and found a plastic bag that contained 64.59 grams of methamphetamine in the center console, as well as another plastic bag that contained 4.34 grams of fentanyl.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Childress has four prior felony convictions for the criminal use of a financial card, two prior felony convictions for burglary, and prior felony convictions for receiving stolen property, stealing, resisting arrest by fleeing, trafficking drugs, battery against a correctional officer, possession of narcotics, unlawful possession of a firearm, possession of a controlled substance, and unlawful use of a weapon.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
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.
KC Daycare Owner Pleads Guilty to $772,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., day care owner has pleaded guilty in federal court to her role in a conspiracy that resulted in a $653,329 tax loss to the federal government, as well as fraudulently collecting almost $120,000 in government benefits she was not entitled to receive.
Patricia L. Johnson-Rushing, 55, pleaded guilty before U.S. District Judge Greg Kays on Thursday, Sept. 7, 2023, to one count of theft of public money, one count of benefits fraud, and one count of conspiracy to defraud the United States.
Johnson-Rushing admitted that she fraudulently received $83,394 in public funding for her childcare center, Granny’s Pray & Play, located at 3714 E. 27th Street in Kansas City, Mo., and that she unlawfully received food stamps. Johnson-Rushing also admitted that she participated in a conspiracy to obstruct the collection of federal employment taxes by failing to pay over to the government $154,186 in federal income tax and FICA contributions collected from the paychecks of Granny’s Pray & Play employees. This was part of a total tax loss to the government, including the employer’s share of payroll taxes, of $653,329.
The total fraud to which Johnson-Rushing pleaded guilty is $772,861.
Theft of Public Money
Johnson-Rushing admitted that she submitted false claims to the Missouri Department of Social Services that intentionally reported false information for children attending Granny’s Pray & Play from Jan. 1, 2016, to Nov. 28, 2019. The purpose of the scheme was to receive payments from the federal Child Care and Development Block Grant Program. This program is intended to help low-income families get access to high-quality early care and after-school programs. Parents of adopted children are eligible to receive the childcare subsidy for their children who are under the age of 13 if both parents are working. However, the provider agreement explicitly states that the owner of the childcare center cannot be paid for services to their own children.
Six children adopted by Johnson-Rushing and her husband were approved to receive the childcare subsidy for full time care. In order to qualify for the childcare subsidy, Johnson-Rushing submitted false documentation to misrepresent her ownership of the center and to falsely claim employment elsewhere. According to the plea agreement, the total funds fraudulently paid to Granny’s Pray & Play is $83,394.
Benefits Fraud
From 2016 to 2019, Johnson-Rushing signed food stamp applications to receive subsidy money from the state of Missouri. On those applications, she falsely claimed to have no job or bank account. In reality, she frequently withdrew funds from the Granny’s Pray & Play bank account to purchase cashier’s checks for herself. Personal expenses were also paid in her name from the Granny’s Pray & Play bank account, including $15,000 towards the purchase of a Cadillac Escalade in October 2016.
Based on the fraudulent statements and representations in her application, Johnson-Rushing unlawfully acquired $12,310 in food stamps. Her fraudulent applications, which included additional fraud, caused a total loss to the Missouri Family Support Division of $36,138.
Conspiracy to Defraud the United States
Granny’s Pray & Play had about 15 employees and withheld funds in federal income tax and FICA contributions from their paychecks. Johnson-Rushing failed to pay over those trust fund taxes from her employees to the Internal Revenue Service in the amount of $154,186.58 from first quarter 2015 through fourth quarter 2018.
The total tax loss in relevant conduct (which includes Johnson-Rushing’s portion of federal and state payroll taxes as the employer) is $499,142, which combined with $154,186 in total tax loss for failure to pay over employee taxes yields a total tax loss of $653, 329.
Under federal statutes, Johnson-Rushing is subject to a sentence of up to 35 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and IRS-Criminal Investigation.
Honduran Man Pleads Guilty to Possession of a Firearm by a Prohibited PersonRead the Press Release
Jackson, Miss. – A Honduran man pleaded guilty to possession of a firearm by a prohibited person, announced U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations in New Orleans
According to court documents, Tommy Pineda-Guevara was found in possession of a firearm during a traffic stop on September 1, 2022. Pineda-Guevara is a Citizen and National of Honduras. As such, it is contrary to federal law for Pineda-Guevara to possess any firearm.
Pineda-Guevara is scheduled to be sentenced on December 12, 2023, and faces a maximum penalty of 15 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Mississippi State Highway Patrol, Bureau of Alcohol, Tobacco, Firearms, and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Adam T. Stuart is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hammond Man Sentenced to 151 Months in PrisonRead the Press Release
HAMMOND- Johnny Wilbourn, 42 years old, of Hammond, Indiana was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to one count of distribution of cocaine, announced United States Attorney Clifford D. Johnson.
Wilbourn was sentenced to 151 months in prison followed by 3 years of supervised release.
According to documents in the case, Wilbourn sold cocaine on three separate occasions throughout August and September 2020. During a search of Wilbourn’s home, law enforcement found fentanyl, a cutting agent, and a digital scale. Wilbourn’s criminal history included prior felony convictions for murder, manufacturing cocaine, and retail theft.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Hammond Police Department and the DEA’s North Central Laboratory in Chicago. This case was prosecuted by Assistant U.S. Attorney Michael J. Toth.
Guatemalan Resident Indicted on a Charge of Violating Federal Immigration LawsRead the Press Release
PITTSBURGH, PA – A resident of Guatemala, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Oscar Oloroso-Carranza, 27, as the sole defendant.
According to the Indictment presented to the court, on or about June 24, 2023, Oloroso-Carranza knowingly illegally reentered the United States as a previously removed alien.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000 or both. 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.
The U.S. Immigration and Customs Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Frederick Medical Practice Pays the United States More Than $850,000 to Resolve Claims that it Inappropriately Billed for Medical ServicesRead the Press Release
Baltimore, Maryland – Frederick Oncology and Hematology Associates, P.C., a former medical practice located in Frederick, Maryland, have paid the United States $850,949 to settle allegations that Frederick Oncology and Hematology Associates, P.C. (“FOHA”) submitted inappropriate claims to the United States for evaluation and management services.
The settlement agreement was announced today by United States Attorney for the District of Maryland Erek Barron, Special Agent in Charge Maureen Dixon of the Office of Inspector General for the Department of Health and Human Services (“HHS-OIG”), Special Agent in Charge Christopher Dillard of Defense Criminal Investigative Services (“DCIS”) Mid-Atlantic Field Office, and Conrad Quarles, Deputy Assistant Inspector General for Investigations, Office of Personnel Management, Office of Inspector General (OPM-OIG).
“It is fundamental that a medical provider accurately bill for services that are actually provided,” said United States Attorney Erek L. Barron. “The United States Attorney’s Office is committed to recovering monies for the federal healthcare programs and will hold practices and individuals accountable for their actions,” said Barron.
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health, and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with our law enforcement partners to investigative allegations of fraud in federal health care programs.”
“This settlement demonstrates DCIS’ commitment to investigate health care providers who take advantage of TRICARE for personal enrichment,” said Special Agent in Charge Christopher W. Dillard, DCIS Mid-Atlantic Field Office. “DCIS proudly stands with our investigative law enforcement partners to root out fraud, waste and abuse.”
According to the settlement agreement, from January 1, 2013, to November 1, 2017, FOHA improperly submitted claims for evaluation and management using a code modifier that is only appropriate when there is a separate and distinct evaluation and management service on the same day as a procedure or other service being performed on a patient. FOHA submitted and was paid for those improperly billed claims when FOHA did not perform a separate and distinct evaluation and management. Additionally, FOHA improperly submitted claims from January 1, 2013, to November 1, 2017, under the billing number of the patient’s physician rather than the non-physician provider who treated the patient in the physician’s temporary absence.
The civil settlement reached by the U.S. Attorney’s Office for the District of Maryland arose from an initiative inside the U.S. Attorney’s Office, which involves the use of dedicated resources and personnel to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the effected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
U.S. Attorney Erek L. Barron commended the HHS-OIG, DCIS, and OPM-OIG for their work in the investigation. The case was handled by Assistant United States Attorney Thomas Corcoran.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Sharon Resident Pleads Guilty to Trafficking Fentanyl, Heroin, Cocaine and MethamphetamineRead the Press Release
PITTSBURGH, PA – Alphonse Johnson pled guilty to trafficking fentanyl, heroin, cocaine, and methamphetamine, United States Attorney Eric G. Olshan announced today.
Johnson, age 41, formerly of Sharon, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Johnson pled guilty to (1) conspiring to distribute 40 grams or more of fentanyl, 100 grams or more of heroin, and quantities of cocaine, cocaine base, and methamphetamine, between June 2020 and June 2021; and (2) possessing with intent to distribute quantities of cocaine, cocaine base, and methamphetamine on April 20, 2021. Judge Bissoon scheduled sentencing to occur on January 3, 2024, at 1:30 p.m.
The law provides for a sentence of at least five years and up to 60 years in prison and a fine of up to $6,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Portland Marathon President Sentenced in Federal CourtRead the Press Release
PORTLAND, Ore.—The former president and event director of the Portland Marathon pleaded guilty and was sentenced in federal court today for evading taxes due on the funds he stole from the charitable organization that had backed the race since the early 1980s.
Lester V. Smith, Jr., 83, of Tomball, Texas, was sentenced to three years’ federal probation to include eight months of home confinement. Smith was also ordered to pay $411,279 in restitution to the IRS.
Prior to being sentenced, Smith pleaded guilty to one count of attempting to evade and defeat income taxes.
According to court documents, for nearly 35 years, Smith served as the president and event director of Portland Marathon Inc. (PMI), the charitable organization formerly responsible for planning and operating the Portland Marathon. In these roles, Smith managed the organization’s day-to-day operations and finances, and had sole authority to approve expenses paid from PMI’s business bank account.
Beginning in January 2012 and continuing through 2017, Smith made or directed others to make unauthorized transfers of funds from PMI’s bank account to his own personal checking account, paid various personal credit cards with PMI funds, and wrote unauthorized checks from PMI payable to himself. On one occasion, Smith used a PMI check to purchase a $60,000 Infiniti sport utility vehicle. Smith also used stolen funds to pay for home remodeling projects, shopping sprees at department stores, home décor, furniture, and other luxury goods and services.
Smith and another individual also incorporated a for-profit company called Next Events Productions, LLC to consult with PMI about setting up running events. Between 2012 and 2017, PMI made more than $302,000 in payments to Next Events. Investigators later discovered bank records from Next Events showing that once PMI funds were deposited, a substantial portion was transferred to Smith’s personal bank account.
While defrauding PMI, Smith also substantially underreported more than $1.2 million in taxable income to the IRS. Despite retaining an accountant to prepare his and his wife’s personal income tax returns for 2012 through 2017, Smith failed to disclose to the accountant payments received from PMI, the purchase of the Infiniti SUV with PMI funds, or funds received from PMI via Next Events.
On February 17, 2022, a federal grand jury in Portland returned a seven-count indictment charging Smith with wire fraud and attempting to evade and defeat income taxes.
This case was investigated by the FBI and IRS Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Former Naval Engineer Charged with Unlawful DisclosureRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nicole K. Schuster, 32, of Revere, Massachusetts was charged by Information with disclosing contractor bid, proposal, and source information. Schuster was a mechanical engineer and “project lead” employed by the United States Department of the Navy (“the Navy”) at the Naval Foundry and Propeller Center in Philadelphia, Pennsylvania (the “NFPC”).
According to the Information, in or about early 2019, Schuster began working as the project lead on a solicitation for a procurement contract for a submarine propeller-making machine known as a VTC. During the contracting and bidding process, Schuster favored one company, identified in the information as “Company 1,” over other competing companies. Schuster urged her superiors to make the contract for this VTC a “sole source” contract for Company 1. That is, she requested that the contracting process should be established in a manner that would ensure that Company 1 would be awarded the procurement contract. The NFPC and Defense Logistics Agency agreed to favor Company 1 in this process but did not agree to prevent other companies from pursuing the contract. Rather, they established a process that allowed other contractors to submit information and compete for the contract.
The information further alleges that on or about September 14, 2019, Schuster sent a WhatsApp message to a representative of Company 1 expressing her “loyalty” to Company 1 and attaching to the message Company 2’s confidential and proprietary contractor bid, proposal, and source selection information for its VTC. The documents that Schuster provided to this representative of Company 1 were marked “SOURCE SELECTION INFORMATION,” “OFFICIAL USE ONLY,” and “[Company 2] Proprietary information.” The documents included cost and pricing data and proprietary information about manufacturing processes and techniques. This disclosure gave Company 1 a competitive advantage over Company 2 and other companies seeking to obtain the VTC contract.
On or about April 28, 2020, the procurement contract for the VTC was awarded to Company 1 for a total price of $15,254,608.
The case was investigated by the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service and the U.S. Naval Criminal Investigative Service, Economic Crimes Field Office, and is being prosecuted by Assistant United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Law Firm Partner Pleads Guilty to Bankruptcy FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN ROESSER pled guilty today to abusing the bankruptcy system by making false statements under penalty of perjury and submitting falsified records. ROESSER will be sentenced by U.S. District Judge Analisa Torres, to whom the case is assigned.
U.S. Attorney Damian Williams said: “The United States bankruptcy system does immense public good and provides a backstop for people trying to lawfully navigate their way out of debt. The defendant — who used to be a lawyer and knew exactly what he was doing — manipulated and corrupted a system that helps so many. He lied to the U.S. Bankruptcy Court for the Southern District of New York so that he could use its protections to keep his assets and to avoid paying his bills. This Office will bring to justice those who abuse the public’s trust and use their status to try to place themselves above the law.”
According to the allegations in the Indictment and statements made in public court proceedings:
From in or about March 2013 through in or about January 2018, ROESSER was a partner at three multinational law firms. During his time as a partner at these law firms, ROESSER earned substantial income — and incurred substantial income tax liability. ROESSER resigned from the New York bar in or about June 2020, after admitting to misappropriating client funds.
On or about February 3, 2022, ROESSER filed for Chapter 11 bankruptcy (the “Bankruptcy”) in the U.S. Bankruptcy Court for the Southern District of New York. In a Chapter 11 bankruptcy, a debtor may remain “in possession,” meaning that the debtor keeps possession and control of his assets during the bankruptcy. But a debtor-in-possession must propose a viable plan of reorganization, which creditors then vote to approve or reject. If a debtor fails to comply with the requirements of Chapter 11, a Chapter 11 bankruptcy can be converted to a Chapter 7 bankruptcy or can be dismissed. In a Chapter 7 bankruptcy, an appointed trustee usually converts a debtor’s assets into cash for distribution among creditors. If a bankruptcy is dismissed, the debtor loses the protections of bankruptcy. For example, creditors can take steps to seize a debtor’s assets. ROESSER’s assets included a house he estimated was worth millions of dollars and an Aston Martin Rapide, a luxury sports car.
ROESSER sought to remain a debtor-in-possession during the Bankruptcy, and on or about February 17, 2022, he opened a debtor-in-possession account for the Bankruptcy (the “DIP Account”).
On or about February 17, 2022, ROESSER submitted a declaration (the “Declaration”) in the Bankruptcy. ROESSER declared under penalty of perjury that the Declaration was true and correct. The Declaration stated, in part, that ROESSER “[had] significant tax debt, which I will attempt to deal with in my chapter 11 reorganization.” The Declaration also contained the following statements:
Currently, I am in the real estate business and expect a commission of approximately $9,500,000 of which 45% would inure to my benefit and the other 55% to my partner. I expect payment of this commission in June of 2022.
. . .
The needs and interests of my creditors will best be served by my continued possession of [a house in Bronxville, New York, valued in the Declaration at $2,600,000] and management of my affairs as debtor-in-possession under Chapter 11 until I receive the income that is coming to me.
On or about February 22, 2022, the Internal Revenue Service (“IRS”) filed a Proof of Claim in the Bankruptcy, listing the IRS’s claims against ROESSER. These claims totaled $2,229,971.77 for income taxes assessed between 2014 and 2019. After adding penalties and interest, these claims totaled $3,850,819.07.
On or about March 15, 2022, at a meeting held in the Bankruptcy, ROESSER testified under oath, in substance and in part, that he expected that a limited liability company (the “LLC”) in which he held a 45% interest would receive approximately $9.6 million on or before June 2022. At a continued meeting held in the Bankruptcy on or about April 18, 2022, ROESSER again testified, in substance and in part, that he expected to receive millions of dollars soon.
On or about June 27, 2022, a legal assistant for ROESSER’s lawyer sent an Assistant U.S. Attorney in the Southern District of New York (the “AUSA”), who was representing the IRS in the Bankruptcy, a document (“Bank Record-1”) purporting to show an online banking screenshot relating to a bank account held by the LLC (the “LLC Account”). The legal assistant’s message stated, in sum and substance, that Bank Record-1 had been provided by ROESSER that day. Bank Record-1 showed an available balance of $9,661,090.00 in the LLC Account. But Bank Record-1 was fake. The LLC Account never had more than $200 in it.
On or about July 6, 2022, ROESSER’s lawyer sent the AUSA a document (“Bank Record-2”) purporting to show an online banking screenshot relating to the DIP Account. Bank Record-2 showed an available balance of $9,661,000.00 in the DIP Account. Bank Record-2 was also fake. In reality, the DIP Account never had a positive balance.
On or about August 8, 2022, and August 9, 2022, ROESSER’s lawyer and the AUSA electronically signed a stipulation (the “Stipulation”) stating, in sum and substance, that the secured claims of the IRS would be resolved provided that ROESSER paid $3,923,981.26 to the IRS within seven days after the Stipulation was so ordered by a Judge.
On or about September 8, 2022, ROESSER’s lawyer filed in the Bankruptcy on ROESSER’s behalf a monthly operating report (the “Monthly Operating Report”). The Monthly Operating Report was electronically signed by ROESSER and stated, “I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.” The Monthly Operating Report listed for “Total receipts (net of transfers between accounts),” the amount $9,662,594, and for “Cash balance end of month,” the amount $9,602,924. Attached to the Monthly Operating Report was a document (“Bank Record-3”), purporting to be an Account Information Report for the DIP Account. Bank Record-3 showed a current balance of $9,578,105.73, a last deposit Amount of $9,661,000.00, and a last deposit date of July 1, 2022. However, the Monthly Operating Report, including the amounts it listed for “Total Receipts” and “Cash balance end of month,” and Bank Record-3, were false. The DIP Account never received $9,661,000.00 on July 1, 2022, or any other date. In fact, the DIP Account never had a positive balance.
On or about September 23, 2022, Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York so ordered the Stipulation. The same day, a legal assistant for ROESSER’s lawyer sent the AUSA a copy of a check made out to the “U.S. Treasury” in the amount of $3,923,981.26. This check purported to be from the DIP Account. However, the DIP Account did not have a positive balance, let alone sufficient funds to pay the check.
On or about March 3, 2023, Judge Lane dismissed the Bankruptcy. Without the protections of bankruptcy, creditors can now take steps to seize ROESSER’s assets to pay his debts.
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ROESSER, 52, of Bronxville, New York, pled guilty to one count of false oaths and claims in bankruptcy. The charge carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Field Office.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Steven J. Kochevar is in charge of the prosecution.
Former Finance Director of Non-Profit Trade Association Sentenced to 18 Months in Prison for Embezzlement SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DONNA MURRAY was sentenced by U.S. District Judge Paul A. Engelmayer to 18 months in prison for embezzling approximately $490,000 from her employer over the course of a year and a half.
U.S. Attorney Damian Williams said: “Donna Murray’s employer trusted her to safeguard its money as Director of Finance. Instead of protecting her employer, Murray betrayed that trust by siphoning nearly half a million dollars from the organization’s bank account into her own pockets, even as the COVID-19 pandemic ravaged the nation’s economy. Not only did Murray spend her employer’s money on luxury purchases and other items, but she went so far as to doctor the organization’s general ledger to conceal her crimes from her employer and its outside auditor. Today’s sentence sends a message to those entrusted with authority that if you abuse that trust for personal gain, you will be caught, and you will pay a steep price.”
According to the Information and other filings and statements made in court:
From in or about December 2017 until her sudden resignation in or about August 2022, MURRAY was employed as the Director of Finance for a non-profit financial services trade association located in Manhattan. The organization, which has more than 600 institutional members, works to promote industry thought leadership, participate in industry advocacy work, educate members and stakeholders, and establish industry standards and best practices.
As the director of finance, MURRAY was the sole finance department employee and was responsible for maintaining the organization’s books, updating its general ledger, handling accounts receivable and payable, and providing the organization’s financial statements to outside auditors. Out of the organization’s 14-16 employees during the relevant period, MURRAY was also the only employee with access to the organization’s online banking accounts and the only employee with the ability to make wire transfers for the organization.
From at least October 2019 through at least in or about March 2021, MURRAY embezzled $488,177.24 from one of the organization’s bank accounts through 105 unauthorized wire transactions from the organization’s bank account to her personal bank account in amounts that increased over time. To conceal her fraud from her employer and its outside auditor, MURRAY leveraged her knowledge of the outside auditor’s practices and the organization’s vendors and vendor invoicing schemes to generate false, but plausible-sounding, entries in the general ledger. MURRAY also transferred money from her employer’s bank account to her bank account in amounts less than $10,000, which would have triggered bank reporting requirements. Finally, MURRAY altered a bank statement submitted to the organization’s deputy general counsel to falsely reflect that a wire transfer had gone to an employer-funded health plan instead of MURRAY.
After misappropriating hundreds of thousands of dollars from her employer’s bank account to her own, MURRAY withdrew from her bank account over $400,000 in cash on more than 347 occasions — sometimes multiple times a day — and used the remainder of the stolen funds for peer-to-peer online money transfers, personal loan payments, and consumer and luxury items, including Yves Saint Laurent and Michael Kors designer apparel; beauty, wellness, and skincare products and services; home furnishings and décor; online streaming and satellite radio purchases; over 180 Amazon orders; smoke shop purchases; and a $200 treadmill for cats.
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In addition to her prison term, MURRAY, 38, of Staten Island, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of 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.
Former Bronx Public Charter School Teacher Pleads Guilty in Connection with Sexual Abuse of Five Former StudentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JESUS CONCEPCION pled guilty to 10 charges related to his sexual abuse of five minor victims who attended the public charter middle school where CONCEPCION worked.
U.S. Attorney Damian Williams said: “Jesus Concepcion engaged in a years-long scheme to manipulate, exploit, and sexually abuse young girls at the middle school where he taught. Concepcion abused his position of trust as the students’ teacher to lull them into a false sense of security and to then exploit them for his own sexual gratification. This guilty plea is a reminder that the Southern District of New York will work tirelessly with our law enforcement partners at the FBI to hold predators like Concepcion to account for their heinous crimes.”
According to the Superseding Indictment and statements made in court and in public filings:
CONCEPCION was a music teacher and orchestra instructor at a public charter middle school located in the Bronx, New York, (“School-1”) from in or about 2000 up to and including in or about 2007. During that same time period, CONCEPCION abused his position as a teacher to induce and attempt to induce five of his students (“Minor Victim-1,” “Minor Victim-2,” “Minor Victim-3,” “Minor Victim-4,” and “Minor Victim-5,” and together the “Minor Victims”) to engage in sexual acts. The Minor Victims were as young as 12 years old at the time of the abuse.
To carry out his sexual abuse of the Minor Victims, CONCEPCION singled out the Minor Victims for personal attention. He gave them money, clothing, jewelry, and other gifts, and he provided certain Minor Victims with alcohol to facilitate the abuse. He persuaded the Minor Victims to believe that they were in romantic relationships with him and provided certain Minor Victims with cellphones so that he could communicate with them in secret and to arrange sexual encounters.
CONCEPCION engaged in sexual acts including oral sex and sexual intercourse with Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4 in various locations on multiple occasions, including in School-1’s music room, in the back room of School-1’s auditorium, in his car, at motels, and at his residences. On numerous occasions, CONCEPCION brought Minor Victims from School-1 or other locations in the Bronx to motels in New Jersey. On at least one occasion, CONCEPCION engaged in sexual acts with Minor Victim-3 at a New Jersey motel against her will. In addition, after Minor Victim-1 graduated middle school, CONCEPCION traveled to Minor Victim-1’s high school in Connecticut to have sex with her.
CONCEPCION similarly pursued Minor Victim-5 and sent hundreds of text messages over the course of several months to Minor Victim-5, who was then 13 years old, leading her to believe that they were in a romantic relationship. CONCEPCION arranged to meet Minor Victim-5 during school hours at School-1 and kissed Minor Victim-5 on the mouth.
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CONCEPCION, 50, of Simpsonville, South Carolina, pled guilty to a 10-count Superseding Indictment, including five counts of enticing a minor to engage in illegal sexual activity. Counts One through Four each carry a mandatory minimum term of five years in prison and a maximum term of 30 years in prison. Count Five carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison. CONCEPCION also pled guilty to four counts of transporting a minor to engage in illegal sexual activity. Counts Six through Nine each carry a mandatory minimum term of five years in prison and a maximum term of 30 years in prison. CONCEPCION also pled guilty to Count 10, charging him with traveling with intent to engage in illegal sexual activity with a minor, which carries a maximum term of 30 years in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the efforts of Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Camille L. Fletcher, Alexandra S. Messiter, and Jacqueline Kelly are in charge of the prosecution.
Former Alabama Department of Corrections Lieutenant Pleads Guilty to Federal Civil Rights and Obstruction Offenses for Assaulting a Restrained Inmate and Lying to Cover It UpRead the Press Release
A former Alabama Department of Corrections (ADOC) lieutenant pleaded guilty today to using excessive force on an inmate and lying afterwards in an official report to cover up his abuse.
According to the plea agreement, former William E. Donaldson Correctional Facility Lieutenant and Shift Commander Mohammad Shahid Jenkins, who had more than 20 years of experience in law enforcement, used excessive force on inmate V.R. Specifically, on Feb. 16, 2022, Jenkins willfully deprived inmate V.R. of his right to be free from excessive force by kicking him, hitting him, spraying him with chemical spray, striking him with a can of chemical spray and striking him with a shoe, while V.R. was restrained inside of a holding cell and not posing a threat. Jenkins admitted that, over the course of approximately five minutes and outside the presence of other officers and inmates, Jenkins repeatedly re-entered the holding cell that V.R. was in and re-assaulted him numerous times. Jenkins used a dangerous weapon — chemical spray and the can of chemical spray — on V.R. and his attacks on V.R. caused V.R. to suffer bodily injury. Following his assault on V.R., Jenkins authored a false incident report. In it, he gave a false account of where, in Donaldson, he transported V.R. to and he omitted entirely his use of force on V.R. from his report. As part of the factual basis, Jenkins further admitted that he lied to investigators by denying using any force on V.R.
Further, as part of the factual basis, Jenkins admitted to using force on another inmate on a different occasion at Donaldson. Specifically, on Nov. 29, 2021, Jenkins willfully deprived inmate D.H. of his right to be free from excessive force by repeatedly spraying D.H. with chemical spray while D.H. was handcuffed behind his back and compliant, by hitting D.H. in the head with the can of chemical spray and by delivering an open-hand strike to D.H.’s head while D.H. was suffering from the effects of chemical spray.
“Senior law enforcement officers set the tone for junior officers whom they supervise,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant abused his position of power to carry out a violent assault on a restrained inmate, in an isolated location of the prison. The Justice Department will continue to hold accountable law enforcement officers who violate the civil rights of any American, including those who are incarcerated in our jails and prisons.”
“There is zero tolerance for corrections officers who commit these egregious crimes,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “My office will continue to aggressively prosecute and bring to justice those who abuse their authority and prey on vulnerable people who they are sworn to protect and keep safe.”
“The civil rights of all must be protected, including those who are in the trusted custody of law enforcement officials,” said Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Field Office. “To willfully deprive any individual without due process or subject the same to cruel and unusual punishment can’t be tolerated or perceived to be so commonplace it’s considered normal inside of our institutions. The FBI will remain committed to holding those who swore an oath to protect and serve, but instead willfully abused their privileges and abandon their responsibilities as law enforcement officers, accountable.”
Sentencing is scheduled for Dec. 19. Jenkins faces a maximum penalty of 10 years in prison on the excessive force charge related to his assault of V.R. and 20 years in prison on the obstruction charge. He also faces up to three years of supervised release and a fine of up to $250,000.
The FBI Birmingham Field Office investigated the case with the assistance of ADOC’s Law Enforcement Services Division.
Assistant U.S. Attorney George Martin for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section are prosecuting the case.
Five Former Memphis Police Officers Charged with Federal Civil Rights, Conspiracy and Obstruction Violations in Connection with the Death of Tyre NicholsRead the Press Release
A federal grand jury in Memphis, Tennessee, returned an indictment today charging five former Memphis Police Department (MPD) detectives with federal civil rights, conspiracy, and obstruction offenses resulting in the death of Tyre Nichols on Jan. 7.
“The country watched in horror as Tyre Nichols was kicked, punched, tased, and pepper sprayed, and we all heard Mr. Nichols cry out for his mother and say ‘I’m just trying to go home,’” said Attorney General Merrick B. Garland. “Officers who violate the civil rights of those they are sworn to protect undermine public safety, which depends on the community’s trust in law enforcement. They dishonor their fellow officers who do their work with integrity every day. The Justice Department will continue to hold accountable officers who betray their oath.”
“Tyre Nichols should be alive today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “It is tragic to see a life cut short at 29, with so many milestones unmet, so many words unsaid, so much potential unfulfilled. These federal charges reflect the Justice Department’s unwavering commitment to protecting the constitutional and civil rights of every American and preserving the integrity of the criminal justice system. We stand ready to hold law enforcement officers accountable for their misconduct because no one is above the law in our country.”
“When I announced this investigation back in January, I said I wanted this city to be a place where justice is done,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This indictment alleging civil rights violations is an important step in ensuring that justice is done for Tyre Nichols. I want to thank the dedicated team of prosecutors and law enforcement agents who are working on this case. I’m proud of our team and proud of their commitment to protecting the civil rights of all Americans.”
According to the four-count indictment, all five defendants, Emmitt Martin III, 31; Tadarrius Bean, 24; Demetrius Haley, 30; Desmond Mills Jr., 33; and Justin Smith, 28, while serving as members of an MPD SCORPION team, willfully deprived Nichols of his constitutional rights. The first count of the indictment alleges that the defendants, aided and abetted by one another, violated Nichols’ right to be free from the use of unreasonable force by a police officer by assaulting him and by failing to intervene in the unlawful assault. Count one also alleges that this offense resulted in bodily injury and the death of Nichols.
Count two of the indictment alleges that all five defendants violated Nichols’ right to be free from a law enforcement officer’s deliberate indifference to his serious medical needs. Specifically, the indictment alleges that even though the defendants knew that Nichols had a serious medical need, the defendants willfully disregarded that medical need by failing to render medical aid and by failing to advise the MPD dispatcher and emergency medical personnel of the circumstances surrounding Nichols’ serious medical need. Count two also alleges that this offense resulted in bodily injury and death of Nichols.
Count three of the indictment alleges that all five defendants conspired to cover up their use of unlawful force by omitting material information and by providing false and misleading information to their supervisor and to others. Specifically, the indictment outlines overt acts the defendants committed in furtherance of the conspiracy, including, among others, failing to tell MPD and Memphis Fire Department personnel that the defendants had struck Nichols and that the defendants had discussed hitting Nichols with straight haymakers and taking turns hitting him. Further, the indictment alleges that the defendants provided false and misleading information to two MPD officers tasked with writing reports about Nichols’ arrest. Finally, it alleges that the defendants submitted Response to Resistance Reports that contained false and misleading information and omitted that the defendants had assaulted Nichols.
Count four of the indictment alleges that the defendants committed an obstruction offense by intentionally omitting material information, and providing false and misleading information, to two MPD officers tasked with writing MPD reports about the arrest of Nichols.
Counts one and two of the indictment carry a maximum penalty of life in prison. Counts three and four each carry a maximum penalty of 20 years in prison.
The charges announced today are separate from the Justice Department’s civil pattern or practice investigation into the MPD. The charges announced today are criminal, while the pattern or practice investigation is a civil investigation that will be conducted separately and independently from the criminal case and will be handled by a different team of career staff from the Civil Rights Division and the U.S. Attorney’s Office.
The charges announced today are also separate from, and in addition to, the charges the State of Tennessee has brought against these former officers related to the death of Nichols. The federal charges allege different criminal offenses. Specifically, and among other federal charges, today’s indictment alleges violations of the U.S. Constitution, rather than of state law.
The FBI Memphis Field Office investigated this case.
Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers for the Western District of Tennessee and Special Litigation Counsel Kathryn E. Gilbert and Deputy Chief Forrest Christian of the Justice Department’s Civil Rights Division are prosecuting the case.
Remote video URLAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Former Memphis Police Officers Charged with Federal Civil Rights, Conspiracy and Obstruction Violations in Connection with the Death of Tyre NicholsRead the Press Release
WASHINGTON – A federal grand jury in Memphis, Tennessee, returned an indictment today charging five former Memphis Police Department (MPD) detectives with federal civil rights, conspiracy, and obstruction offenses resulting in the death of Tyre Nichols on Jan. 7.
“The country watched in horror as Tyre Nichols was kicked, punched, tased, and pepper sprayed, and we all heard Mr. Nichols cry out for his mother and say ‘I’m just trying to go home,’” said Attorney General Merrick B. Garland. “Officers who violate the civil rights of those they are sworn to protect undermine public safety, which depends on the community’s trust in law enforcement. They dishonor their fellow officers who do their work with integrity every day. The Justice Department will continue to hold accountable officers who betray their oath.”
“Tyre Nichols should be alive today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “It is tragic to see a life cut short at 29, with so many milestones unmet, so many words unsaid, so much potential unfulfilled. These federal charges reflect the Justice Department’s unwavering commitment to protecting the constitutional and civil rights of every American and preserving the integrity of the criminal justice system. We stand ready to hold law enforcement officers accountable for their misconduct because no one is above the law in our country.”
“When I announced this investigation back in January, I said I wanted this city to be a place where justice is done,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This indictment alleging civil rights violations is an important step in ensuring that justice is done for Tyre Nichols. I want to thank the dedicated team of prosecutors and law enforcement agents who are working on this case. I’m proud of our team and proud of their commitment to protecting the civil rights of all Americans.”
According to the four-count indictment, all five defendants, Emmitt Martin III, 31; Tadarrius Bean, 24; Demetrius Haley, 30; Desmond Mills, Jr., 33; and Justin Smith, 28, while serving as members of an MPD SCORPION team, willfully deprived Nichols of his constitutional rights. The first count of the indictment alleges that the defendants, aided and abetted by one another, violated Nichols’ right to be free from the use of unreasonable force by a police officer by assaulting him and by failing to intervene in the unlawful assault. Count one also alleges that this offense resulted in bodily injury and the death of Nichols.
Count two of the indictment alleges that all five defendants violated Nichols’ right to be free from a law enforcement officer’s deliberate indifference to his serious medical needs. Specifically, the indictment alleges that even though the defendants knew that Nichols had a serious medical need, the defendants willfully disregarded that medical need by failing to render medical aid and by failing to advise the MPD dispatcher and emergency medical personnel of the circumstances surrounding Nichols’ serious medical need. Count two also alleges that this offense resulted in bodily injury and death of Nichols.
Count three of the indictment alleges that all five defendants conspired to cover up their use of unlawful force by omitting material information and by providing false and misleading information to their supervisor and to others. Specifically, the indictment outlines overt acts the defendants committed in furtherance of the conspiracy, including, among others, failing to tell MPD and Memphis Fire Department personnel that the defendants had struck Nichols and that the defendants had discussed hitting Nichols with straight haymakers and taking turns hitting him. Further, the indictment alleges that the defendants provided false and misleading information to two MPD officers tasked with writing reports about Nichols’ arrest. Finally, it alleges that the defendants submitted Response to Resistance Reports that contained false and misleading information and omitted that the defendants had assaulted Nichols.
Count four of the indictment alleges that the defendants committed an obstruction offense by intentionally omitting material information, and providing false and misleading information, to two MPD officers tasked with writing MPD reports about the arrest of Nichols.
Counts one and two of the indictment carry a maximum penalty of life in prison. Counts three and four each carry a maximum penalty of 20 years in prison.
The charges announced today are separate from the Justice Department’s civil pattern or practice investigation into the MPD. The charges announced today are criminal, while the pattern or practice investigation is a civil investigation that will be conducted separately and independently from the criminal case and will be handled by a different team of career staff from the Civil Rights Division and the U.S. Attorney’s Office.
The charges announced today are also separate from, and in addition to, the charges the State of Tennessee has brought against these former officers related to the death of Nichols. The federal charges allege different criminal offenses. Specifically, and among other federal charges, today’s indictment alleges violations of the U.S. Constitution, rather than of state law.
The FBI Memphis Field Office investigated this case.
Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers and Special Litigation Counsel Kathryn E. Gilbert and Deputy Chief Forrest Christian of the Justice Department’s Civil Rights Division are prosecuting the case.
View the Attorney General’s full video statement here.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fayette County Man Sentenced to 30 Years for Armed Drug Trafficking and Illegal Possession of a FirearmRead the Press Release
LEXINGTON, Ky. — A Lexington man, Quincy Marquice Taylor, 37, was sentenced to 360 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute cocaine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a convicted felon.
According to evidence at trial, on October 27, 2021, Taylor was involved in a single-vehicle collision on southbound I-75. After exiting his vehicle, Taylor attempted to provide a bystander with a bag containing 45 grams of cocaine and a firearm. After the bystander declined, Taylor hid the bag near brush along the exit ramp. Taylor then left the scene by hitchhiking with a second bystander to Richmond, Ky.
Taylor had multiple prior convictions for felony drug trafficking. As a convicted felon, he was prohibited from possessing a firearm. Additionally, based on his significant prior criminal history, Taylor qualified as an Armed Career Criminal, which enhanced his sentence.
Taylor was convicted by a jury of these offenses in May 2023.
Under federal law, Taylor must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for six years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Chief Lawrence Weathers, Lexington Police Department; and Chief Rodney Richardson, Richmond Police Department, jointly announced the sentence.
The investigation was conducted by ATF and the Lexington Police Department with assistance from the Richmond Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Convicted Felon Sentenced for Possessing Narcotics and Firearm in Furtherance of Drug TraffickingRead the Press Release
ALEXANDRIA, Va. – A Baltimore man was sentenced today to 10 years in prison for possession of a firearm in furtherance of a drug trafficking offense and possession with the intent to distribute cocaine.
According to court documents, in December 2022, Rodney Burgess, 29, unlawfully purchased a firearm, extended magazine, and 9mm ammunition from a Federal Firearms Licensee in Woodbridge through a straw purchaser. On March 2, 2023, investigators with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) arrested Burgess pursuant to a federal warrant. During a search incident to his arrest, investigators recovered from Burgess’s person at least 40 grams of cocaine base, a Schedule II substance; pills containing Fentanyl; and $1,453 in cash. Investigators also recovered a loaded 9mm handgun with extended magazine, a scale, two cell phones, and empty drug packaging material in his hotel room.
Burgess was ordered to forfeit the firearm and all accompanying magazines and ammunition that were seized at the time of his arrest.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Toni M. Crosby, Special Agent in Charge of the ATF’s Baltimore Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Baltimore City Police Department provided significant assistance in this case.
Special Assistant U.S. Attorneys Colleen McCarthy and Brittney Dimond, and Assistant U.S. Attorney Ronald L. Walutes, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-93.
Co-Founder of Multibillion-Dollar Cryptocurrency Scheme “OneCoin” Sentenced to 20 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” was sentenced to 20 years in prison for his orchestration of the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, millions of victims invested over $4 billion worldwide in the fraudulent cryptocurrency. Today’s sentence was imposed by U.S. District Judge Edgardo Ramos. IGNATOVA, who was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022, remains at large.
U.S. Attorney Damian Williams said: “As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars with promises of a ‘financial revolution’ and claims that OneCoin would be the ‘Bitcoin killer.’ In fact, OneCoins were entirely worthless, and investors were left with nothing, while Greenwood lined his own pockets with over $300 million. We hope this lengthy sentence resonates in the financial sector and deters anyone who may be tempted to lie to investors and exploit the cryptocurrency ecosystem through fraud.”
According to public court filings and statements made in Court:
GREENWOOD and IGNATOVA co-founded OneCoin Ltd. (“OneCoin”) in 2014. OneCoin was based in Sofia, Bulgaria. OneCoin marketed and sold a fraudulent cryptocurrency by the same name. OneCoin began operating in the United States in or around 2015. Between the fourth quarter of 2014 and the fourth quarter of 2016 alone, the scheme took in more than $4 billion from at least 3.5 million victims.
OneCoin marketed its fake cryptocurrency through a global MLM network of OneCoin members. GREENWOOD conceived of OneCoin’s use of an MLM structure and was OneCoin’s global master distributor and the leader of the MLM network through which the fraudulent cryptocurrency was marketed and sold. Through the MLM structure, OneCoin members received commissions for recruiting others to purchase cryptocurrency packages. As the top MLM distributor of OneCoin, GREENWOOD earned 5% of monthly OneCoin sales from anywhere in the world, which totaled more than $200 million from the fourth quarter of 2014 through the fourth quarter of 2016 alone and exceeded approximately $300 million in total. GREENWOOD’s mastery as a salesman and the use of the MLM structure helped contribute to OneCoin’s rapid growth and incredible success.
From OneCoin’s inception, GREENWOOD and IGNATOVA used the notoriety of Bitcoin to convince investors that OneCoin was the next “can’t miss” investment opportunity. GREENWOOD and IGNATOVA wanted investors to believe that OneCoin was a legitimate cryptocurrency like Bitcoin and deliberately drew the comparison between the two cryptocurrencies through their representations to investors and their marketing materials. For example, in a OneCoin PowerPoint presentation prepared by GREENWOOD, OneCoin described itself as “a unique and innovative cryptocurrency, that is born on the success of the pioneering and famous cryptocoin, Bitcoin.” In another slide, OneCoin highlighted the explosive growth of Bitcoin, stating that “Bitcoins increased their value 75 times in 2013,” and including the following quote from The Guardian newspaper, “Man buys $27 of bitcoin, forgets that he had bought and finds that they’re now worth $886,000.”
In reality, unlike legitimate cryptocurrencies, OneCoin had no actual value and was conceived of by GREENWOOD and IGNATOVA as a fraud from day one. The misrepresentations made by GREENWOOD and others to OneCoin investors were legion, and the cryptocurrency was worthless. Among other things, OneCoin lied to its members about how its cryptocurrency was valued, claiming that the price of OneCoin was based on market supply and demand, when in fact OneCoin itself arbitrarily set the value of the coin without regard to market forces. The purported value of a OneCoin grew steadily from €0.50 to approximately €29.95 per coin, as of in or about January 2019. The purported price of OneCoins never decreased in value.
GREENWOOD also lied to investors about the utility of the tokens included in trader packages, claiming that they could be used to secure positions in OneCoin’s “mining pools,” depicted in promotional materials as computer hardware used to “mine” OneCoins. But there were no mining pools and no computers to mine OneCoin either. GREENWOOD knew that this lie was essential to convincing investors that OneCoin was a legitimate cryptocurrency. As he wrote in an email to IGNATOVA, “[t]he concept of converting tokens into OneCoin is an important phase for validity and truth behind the OneCoin. The so called ‘mining’ of coins is a concept that is very familiar in the industry and a story we can sell to the members.” However, as GREENWOOD and IGNATOVA both knew, OneCoin was “not mining actually—but telling people shit.” In the same email exchange, GREENWOOD asked IGNATOVA, “how can this be investigated and found out?” and “Can any member (trying to be clever) find out that we actually are not investing in machines to mine but it is merely a piece of software doing this for us?”
OneCoin also claimed to have a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions. But, in reality, OneCoin lacked a true blockchain — that is, a public and verifiable blockchain. Indeed, by approximately March 2015, GREENWOOD and IGNATOVA had started allocating to members OneCoins that did not even exist in OneCoin’s purported private blockchain, referring to these coins as “fake coins.” By at least June 2015, GREENWOOD and IGNATOVA began emailing one another models tabulating current and projected future trader package sales volumes along with outstanding tokens and OneCoins. The spreadsheets identified separate lines for “mined coins,” “mined coins (real),” and “fake coins.” The references to “fake coins” in those records referred to OneCoins that had been distributed to members but did not exist on the OneCoin “blockchain.” Two months later, in August 2015, IGNATOVA wrote to GREENWOOD, in an email with the subject line, “I am afraid this is an issue,” “This is the implication from the big sales 4 weeks ago. 1.3 [billion] fake coins. We are fucked, this came unexpected and now needs serious, serious thinking.”
On July 4, 2015, IGNATOVA announced the official opening of the United States market for OneCoin during an online webinar. During the webinar, IGNATOVA said, among other things: “[I]f we want to go and catch Bitcoin, we never can do this without being strong in the U.S. and without being part of the community. So, um, this is actually why I am so excited about the U.S. as the market. It’s something that is about prestige. It’s a huge market. And, um, it is, I think, a place of innovation, of Wall Street, a place where we have to be if we want to be big.”
Many victims in the United States invested in fraudulent OneCoin cryptocurrency packages, including residents of the Southern District of New York. In total, more than 3.5 million victims invested in OneCoin and lost more than $4 billion dollars from the scheme —money that GREENWOOD, IGNATOVA, and others used to fund extravagant lifestyles. As the top MLM distributor of OneCoin, GREENWOOD earned more than $300 million during the scheme, much of which he spent on his own lavish lifestyle. For example, in or around December 2015, GREENWOOD used approximately $10,000 of fraud proceeds to stay at an exclusive five-star resort in Brazil. Later that month, GREENWOOD used an additional $21,000 of fraud proceeds to stay at a luxury villa with a beach view in Koh Samui, Thailand. Later, when GREENWOOD traveled to Barcelona in May 2016, he used investor funds to stay at another luxury five-star hotel and rented a Range Rover for the duration of his trip.
GREENWOOD also used proceeds from the scheme to purchase luxury designer clothes, footwear, and watches totaling approximately $2 million; pay a down payment of approximately 475,000 British Pound Sterling for a Sunseeker yacht; and to purchase real estate properties in various countries, including in Spain, Dubai, and Thailand. Finally, GREENWOOD used investor funds to travel around the world on a private “OneCoin” airplane and posted promotional videos of his travel online.
GREENWOOD was arrested at his residence on the island of Koh Samui, Thailand, in July 2018 and was extradited to the United States to face fraud and money laundering charges in October 2018. GREENWOOD has been detained since his arrest in July 2018.
On October 12, 2017, IGNATOVA was charged with OneCoin-related fraud and money laundering charges in the U.S. District Court for the Southern District of New York, and a federal warrant was issued for her arrest. On October 25, 2017, IGNATOVA traveled on a commercial flight from Sofia, Bulgaria, to Athens, Greece, and has not been seen publicly since. IGNATOVA was added to the FBI’s Top Ten Most Wanted List in June 2022. The FBI is offering a $100,000 reward for information leading to IGNATOVA’s arrest.
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In addition to his prison term, GREENWOOD, 46, a citizen of Sweden and the United Kingdom, was ordered to pay approximately $300 million in forfeiture.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service-Criminal Investigation and the FBI, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office. Mr. Williams also thanked the New York County District Attorney’s Office for their assistance throughout the investigation. Mr. Williams further thanked Thai authorities, including the Royal Thai Police and the Office of the Attorney General, for their assistance in the arrest and extradition of GREENWOOD. The Justice Department’s Office of International Affairs worked with law enforcement partners in Thailand to secure the arrest and extradition of GREENWOOD.
If you have any information about IGNATOVA’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Juliana N. Murray, and Kevin Mead are in charge of the prosecution.
Church Rock Man Charged with Sexual AbuseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Nathaniel Luz appeared in federal court on a complaint charging him with four counts of aggravated sexual abuse, one count of sexual abuse of a minor and two counts of abusive sexual contact. Luz, 31, of Church Rock and a registered member of the Navajo Nation, will remain in custody pending trial.
According to court documents, between January 2014 and April of 2022, Luz allegedly engaged in sexual acts with a child who had not then attained the age of 12 years in five separate incidents. Then, between January 2021 and December 2021, Luz allegedly engaged in sexual contact with a second victim, a child who had not yet attained the age of 12 years. Lastly, in August 2022, Luz allegedly engaged in a sexual act with a third victim, a child who had attained the age of 12 years but had not attained the age of 16 years.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted on the current charges, Luz faces up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office, Navajo Police Department and the Navajo Department of Criminal Investigations investigated this case. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.
Cherokee, Iowa Man Sentenced to 4 Years in Federal Prison for Illegally Possessing More than 30 FirearmsRead the Press Release
A Cherokee, Iowa man who was found to be in possession of 23 firearms, 3 short-barreled rifles and 6 silencers, was sentenced September 11, 2023, to 4 years in federal prison.
Jason Ballou, age 52, from Cherokee, Iowa, received the prison term after an April 27, 2023, guilty plea to possession of a firearm by a prohibited person.
Ballou was found to be in possession of the firearms while law enforcement was executing a state search warrant, investigating another crime. Ballou was previously convicted of possession of prohibited firearms (a machine gun), and unlawful receipt of unregistered firearms, both in the Northern District of Iowa.
Ballou was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 48 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Ballou is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by Cherokee, Iowa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, (ATF) and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4098.
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Carter County Resident Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Morris Hulen Mapp, age 70, of Ardmore, Oklahoma, entered a guilty plea for Failure to Register as a Sex Offender.
According to U.S. Marshals, Mapp, a convicted sex offender, failed to alert authorities to his presence in the Eastern District of Oklahoma as required by law. Mapp, who received felony convictions in the State of Texas in 1992 for Indecency with a Child, knowingly failed to register in the State of Oklahoma despite traveling from Texas and residing in the state from May 2022 until his arrest on May 19, 2023.
The charges arose from an investigation by the U.S. Marshal Service and the Carter County Sheriff’s Office.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea in Muskogee and ordered the completion of a presentence investigation report. Mapp will remain in custody of the U.S. Marshal pending sentencing.
Special Assistant United States Attorney Genevieve A. Ozark represented the United States.
Cape Coral Men Sentenced for Their Roles in A Multi-Million Dollar Credit Card Fraud SchemeRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Carlos Tejeda (62, Cape Coral) to 16 years in federal prison, Juan Tejeda (35, Cape Coral) to 15 years in federal prison, and Pedro Pelaez (59, Cape Coral) to 6 years in federal prison for their roles in a large-scale credit card fraud scheme which operated in Cape Coral between late-2015 and mid-2018. On April 27, 2023, a federal jury had found father-and-son ringleaders Carlos and Juan Tejeda guilty of 44 federal offenses, including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, conspiracy to commit money laundering, production of counterfeit access devices, and possession of device-making equipment. For his role in the fraud, the jury found Pelaez guilty of 11 federal offenses, including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and conspiracy to commit money laundering.
According to evidence presented during the seven-day trial, Carlos Tejeda recruited several friends and associates, including Pedro Pelaez, to create shell companies, obtain credit card processing terminals for their shell companies, and then permit Carlos Tejeda to swipe counterfeit credit cards fraudulently encoded with stolen credit and debit card numbers using the shell company credit card terminals. Evidence showed that Juan Tejeda’s primary role was to encode the counterfeit cards for his father Carlos Tejeda, but that he personally swiped counterfeit cards on the shell company terminals as well. Each fraudulent transaction was typically between $1,000 and $3,000, but the same stolen card number was often used several times across multiple shell companies before victim cardholders from across the United States realized that their card numbers had been compromised.
After the stolen funds were deposited into the shell company bank accounts, the shell company owners would kickback a pre-determined percentage of the fraudulent proceeds to Carlos or Juan and keep the remainder for themselves. In total, nine shell companies were used to perpetrate the fraud, including those personally opened by Carlos and Juan Tejeda. Credit card transaction data presented to the jury showed that during the duration of the fraud, thousands of credit card charges totaling more than $2.6 million were attempted or conducted on the shell company terminals. In total, nine people have now been convicted and sentenced for their roles in this fraud, including the three above-named individuals.
This case was investigated by the United States Secret Service and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
California, PA Resident Indicted on a Charge of Theft by a Credit Union EmployeeRead the Press Release
PITTSBURGH, PA – On August 22, 2023, a resident of California, Pennsylvania, was indicted by a federal grand jury in Pittsburgh on a charge of theft by a credit union employee. Metz made an initial appearance in Federal Court today and was released on $10,000 unsecured bond United States Attorney Eric G. Olshan announced.
The one-count Indictment named Heidi Metz, 40, of California, Pennsylvania as the sole defendant.
According to the Indictment presented to the court, from June 2021 through September 2022, Metz stole more than $40,000 from Cal-Ed Federal Credit Union.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of not more than $1,000, and a term of supervised release of not more than five years; or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bitcoin ATM Company Forfeited over $1 Million for Conspiring to Violate the Bank Secrecy ActRead the Press Release
SACRAMENTO, Calif. — Folsom company Amani Investments LLC, which operated Coinucopia kiosks that exchanged U.S. currency for Bitcoin, forfeited $1 million in currency, a Mercedes-Benz, Bitcoin, and other items for its criminal efforts to avoid reporting requirements under the Bank Secrecy Act, U.S. Attorney Phillip A. Talbert announced.
In February 2023, Amani Investments LLC, doing business as Coinucopia, pleaded guilty to conspiring to avoid filing Currency Transaction Reports (CTRs) that are required under federal law. The federal Bank Secrecy Act was enacted by Congress to combat the laundering of criminal proceeds, and it requires money services businesses to report each transaction involving more than $10,000 in currency. Willful violation of the requirement to file these reports, commonly called CTRs, is a federal criminal offense.
According to court documents, on multiple occasions Amani Investments exchanged over $10,000 in U.S. currency for Bitcoin without filing a CTR, as required by the Bank Secrecy Act. Many transactions were conducted during face-to-face exchanges of more than $10,000 in cash for Bitcoin with a Managing Officer of Amani Investments, all without the filing of a CTR. In total, approximately $1 million was involved in the crime. Today the court finalized Amani Investments’ forfeiture order, which included a Mercedes-Benz E63, Bitcoin, gold coins, and $1 million in United States currency.
“Federal currency transaction reporting requirements are intended to protect our financial system from the influx of criminal proceeds,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will continue to hold accountable those who seek to evade these requirements.”
“Today’s sentence holds Amani Investments, dba Coinucopia, a registered Money Service Business, accountable for violating the Bank Secrecy Act,” said Tatum King, Special Agent in Charge, HSI San Francisco / NorCal. “We know that money is the lifeblood of criminals as evidenced by the $1 million forfeiture, which is why it is a primary focus for HSI across all of our investigative programs. We appreciate the work of HSI personnel with FBI, USPIS, DEA, IRS-CI, USAO Eastern District, and Sacramento County Sheriff’s Office who worked this multi-year case collaboratively and resulted in the substantial forfeiture of ill-gotten gains.”
This case is the product of an investigation by Homeland Security Investigations (HSI), as part of the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from HSI, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration. The NCIDE Task Force is a joint, federal task force focused on targeting all forms of dark web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorneys Robert C. Abendroth and Veronica M.A. Alegría prosecuted the case.
- Albuquerque Smoke Shop Owner Sentenced to 3 Years in Prison for Drug Offense
Albuquerque Man Pleads Guilty to Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced that Marquez Martinez pled guilty to dealing in firearms without a license and two counts of unlawful possession and transfer of a machine gun. Martinez, 25, of Albuquerque, will remain at the La Pasada Halfway House under numerous conditions of release pending sentencing, which has not been scheduled.
According to court documents, in January of 2023, Martinez came to the attention of the Albuquerque Police Department (APD) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) when a West Mesa High School student was found on campus with two firearms in their possession, one being a Glock which had been modified with a machine gun conversion device commonly referred to as a “switch.” The Glock was traced back to its original purchaser, Martinez. Over the next five months, undercover detectives from the Albuquerque Police Department conducted 4 controlled purchases of both firearms and machine gun conversion devices from Martinez through Instagram and tied two more guns seized during traffic stops back to him. During that time, the ATF also tracked Martinez’s firearm purchases, counting a total of approximately 35 purchased in 5 months. Based on this evidence, the ATF executed a search warrant on Martinez’s residence where they located approximately 15 firearms, a large amount of ammunition, and numerous ammunition magazines.
When questioned by agents, Martinez admitted to purchasing hundreds of firearms since turning 21, including at least 50 purchases in the past 6 months.
At sentencing, Martinez faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Patrick E. Cordova is prosecuting the case.
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Adair County Resident Pleads Guilty to Kidnapping and Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justin Kyle Muskrat, age 37, of Bunch, Oklahoma, entered a guilty plea to kidnapping and illegal possession of a firearm and ammunition.
The Indictment filed on April 13, 2023, charged Muskrat with one count of Kidnapping in Indian Country and one count of Felon in Possession of Firearm and Ammunition.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Adair County Sheriff’s Office, and the Cherokee Nation Marshal Service.
According to investigators, Muskrat kidnapped an individual from a Muskogee County residence on March 15, 2023. Armed with a machete, Muskrat forced the victim into a car trunk and transported him to an Adair County residence. There, Muskrat bound, assaulted, and threatened the victim. Upon arrest, law enforcement officers found Muskrat, a felon, illegally in possession of a Ruger, Model LCP, .380ACP caliber, semi-automatic pistol and several rounds of ammunition.
The crimes occurred in Adair County, Oklahoma, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Muskrat will remain in custody of the U.S. Marshall pending sentencing.
Assistant United States Attorneys T. Cameron McEwen and Josh Satter represented the United States.
Ada Resident Pleads Guilty to Assault with A Dangerous Weapon and RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alexander Elias Clark, age 22, of Ada, Oklahoma, entered a guilty plea to one count of assault with a dangerous weapon and one count of robbery.
The indictment, filed on August 9, 2023, charged Clark with one count of Assault with Intent to Commit Murder in Indian Country, one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, one count of Assault Resulting in Serious Bodily Injury in Indian Country, and one count of Robbery in Indian Country.
According to investigators, on June 14, 2023, Clark attacked an individual at an Ada residence, stabbing the victim repeatedly before fleeing. Clark later entered a nearby convenience store, threatened to kill the cashier, and stole a 30-pack of beer.
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police, the United States Department of the Interior - Bureau of Indian Affairs, the Ada Police Department, and the Pontotoc County Sheriff’s Office.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Clark was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney James Seaman represented the United States.
11 September 2023
Westmoreland County Resident Sentenced to 36 Months’ Imprisonment for Conviction of Bank Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, PA - A resident of Westmoreland County, has been sentenced in federal court to 36 months’ imprisonment and four years’ supervised release on her conviction of bank fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced today.
United States District Mark R. Hornak imposed the sentence on Nina Marie Barkley, age 36, of Westmoreland County, Pennsylvania.
According to information presented to the court, while Barkley was employed as a counselor at a drug treatment facility, she stole the personal identification information of a patient, identified in the Indictment as K.P., including K.P.’s Social Security number, date of birth, and home residence. Barkley then used K.P.’s personal identification information, without K.P.’s permission or authorization, to obtain loans from various financial institutions. The total losses associated with the fraud were over $60,000.
The court also was informed that, after Barkley was charged with the offenses in the Indictment, she continued to use K.P.’s personal identification information, without K.P.’s permission or authorization, and applied for government assistance through the Emergency Rental Assistance Program (“ERAP”) in K.P.’s name. In addition, after being charged with the offenses in the Indictment, Barkley stole the personal identification information of another individual and used that information to attempt to obtain another line of credit.
Assistant United States Attorney Karen Gal-Or prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, U.S. Department of Health and Human Services, Pennsylvania State Police and West Mifflin Police conducted the investigation leading to the successful prosecution of Barkley.
West Virginia man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dakota Brian Whetzel, age 25, of Romney, West Virginia, was sentenced today to 87 months in federal prison for possession of child pornography.
According to court documents and statements made in court, the West Virginia State Police received a cybertip about child pornography that led to a search warrant of Whetzel’s apartment. Officers seized electronic devices and found hundreds of child pornography images, some depicting children under the age of 12.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
U.S. Attorney's Office for the Eastern District of Tennessee Announces $1.3 Million in Department of Justice Grant Funding for Youth MentoringRead the Press Release
KNOXVLLE, Tenn. On September 11, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $1.3 Million in Department of Justice, Office of Juvenile Justice, and Delinquency Programs (OJJDP) grant funding to support the mentoring for youth affected by opioid and other substance misuse.
- Knoxville Leadership Foundation - $650,000.
- Boys and Girls Clubs of the Tennessee Valley – $650,000.
OJJDP envisions a juvenile justice system centered on the strengths, needs, and voices of youth and families. Young people and family members with lived experience are vital resources for understanding and reaching persons involved or at risk of involvement with youth-serving systems. OJJDP asks stakeholders to join them in sustainably integrating bold, transformative youth and family partnership strategies into their daily work. OJJDP believes in achieving positive outcomes for youth, families, and communities through meaningful partnership and active partnerships, ensuring they play a central role in collaboratively developing solutions.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page. For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
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U.S. Attorney Sellinger to Hold Fourth Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Trenton next week at the fourth in a series of planned town hall meetings. The town hall series is one initiative of U.S. Attorney Sellinger to engage directly with citizens’ concerns and ultimately to improve public safety in New Jersey.
The town hall will be held on Tuesday, Sept. 12, 2023, doors opening at 6:00 p.m., with the program beginning promptly at 6:30 p.m. and running until 8:30 p.m. at the Greater Mt. Zion AME Church, 42 Pennington Ave., Trenton, New Jersey, 08618. U.S. Attorney Sellinger and members of his staff will discuss the work of his office in a variety of areas, including federal civil rights enforcement, bias and hate crimes, environmental justice, violent crime, opioid-related crime, and post-incarceration programs.
This is a community event and is open to the public.
Two Jamestown Men Plead Guilty for Their Roles in Heroin/Fentanyl ConspiracyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Justin Yuchnitz, 29, and Brandon Andino, 38, both of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo for their roles in a Jamestown drug conspiracy. Yuchnitz pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, heroin and fentanyl, and faces a maximum penalty of 20 years in prison and a fine up to $1,000,000. Andino pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, and faces a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that defendant Yuchnitz sold heroin and fentanyl that he received from co-defendant Joseph Zaso, utilizing electronic media, such as Facebook and CashApp, to carry out his drug trafficking activities. For example, in February 2021, he utilized his CashApp account to pay $2000 to Zaso to cover his drug debts. During the conspiracy, defendant Andino distributed large amounts of heroin and fentanyl that he also received from Joseph Zaso. Andino also distributed heroin and fentanyl on behalf of Zaso to Zaso’s associates and customers.
Co-defendants Brian Cessna, Denver Komenda, and Richard Philbrick were previously convicted. Co-defendants Joseph Zaso and Kyle Lewis are scheduled to go to trial in February 2024.
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 sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone.
Yuchnitz is scheduled to be sentenced on January 5, 2024, at 9:30 a.m., which Andino is scheduled to be sentenced on January 8, 2024, at 9:30 a.m., both before Judge Vilardo.
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Tucson Man Sentenced to 10 Years for Possession of Child Sex Abuse MaterialRead the Press Release
TUCSON, Ariz. – Kyle Adam Haney, 60, of Tucson, Arizona, was sentenced by United States District Judge John C. Hinderaker on August 31, 2023, to 120 months in prison. Haney pleaded guilty on October 6, 2022, to one count of Possession of Child Pornography. When Haney is released from prison, he will be on supervised release for the remainder of his life and will be required to register as a sex offender.
Haney was identified in connection with an investigation into the production of child sex abuse material by the Federal Bureau of Investigation. In the course of that investigation, agents discovered communications by Haney about sharing sexually explicit images of prepubescent children. Agents subsequently searched Haney’s phone pursuant to a search warrant and discovered several sexually explicit images of minor children which included infants and toddlers.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Carin C. Duryee and Scott A. Turk, District of Arizona, Tucson, handed the prosecution.
CASE NUMBER: CR 21-02970-TUC-JCH
RELEASE NUMBER: 2023-135_Haney# # #
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 Twitter @USAO_AZ for the latest news.Three Memphis Men Plead Guilty in Series of Carjackings, KidnappingsRead the Press Release
Memphis, TN – All three men responsible for a series of violent carjackings and kidnappings that occurred over last year’s holiday season have pled guilty to the charges against them. Adrian Pegues, 19, Malik Malone, 18, and Alan Key, 20, all of Memphis, have each pled guilty in federal court to a series of violent events that occurred in December 2022 in Memphis and Germantown. Pegues and Key also pled guilty to an additional carjacking that occurred in Memphis in July 2022. United States Attorney Kevin G. Ritz announced the changes of plea today.
According to U.S. Attorney Ritz and information presented in court, on December 20, 2022, Pegues and Malone carjacked and kidnapped two individuals separately, and forced them at gunpoint to withdraw money from ATMs. The facts of those incidents are as follows:
- The two men kidnapped and carjacked the first victim from her driveway in East Memphis. They forced her to drive her vehicle to an ATM at First Citizens National Bank in Arlington, TN and withdraw money from her bank account. After they forced her to drive around looking for another ATM, they eventually returned to the same ATM and again forced her to withdraw money.
- Pegues and Malone then ordered the first victim to follow another vehicle into an apartment complex in Cordova, TN, where they kidnapped and carjacked a second victim, again at gunpoint.
- Pegues and Malone split up and attempted to force the victims to withdraw more money from ATMs. Eventually, both Pegues and Malone ordered the victims to drop them off in Memphis and they fled.
On December 30, 2022, Pegues, Malone, and Alan Key attempted to kidnap a person at the Saddle Creek shopping center in Germantown with the intent to commit another robbery.
- The trio parked next to the victim’s vehicle and waited as she exited a store and approached her vehicle.
- As the victim opened her door, Pegues and Malone bumped the victim with their car door, ordered her to get in the vehicle, and tried to get into her vehicle.
- The victim struggled with Pegues and Malone. An armed private citizen saw what was occurring and intervened. When confronted, the men got back into their vehicle and escaped.
Additionally, investigators determined that Pegues and Key committed another carjacking in Memphis on July 25, 2022. During this carjacking, Pegues was armed with a firearm. Both Pegues and Key also pled guilty to this carjacking and the use of a firearm in this incident as well.
On May 25, 2023, Malik Malone appeared before Chief United States District Judge Sheryl H. Lipman and pled guilty to all charges.
On September 5, 2023, Adrian Pegues appeared before Magistrate Judge Charmiane G. Claxton and pled guilty to 11 of the 12 charges against him. On September 6, 2023, Alan Key also appeared before Magistrate Judge Charmiane G. Claxton; he pled guilty to all charges against him.
Malone is scheduled to be sentenced by Chief Judge Lipman on October 20, 2023. Pegues and Key will be sentenced by Chief Judge Lipman on December 18, 2023. There is no parole in the federal system.
This case was investigated by the FBI’s Safe Streets Task Force, the Germantown Police Department, and the Memphis Police Department.
Assistant United States Attorney Greg Wagner is handling the prosecution of this matter for the government.
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Thornton Man Charged as Felon in Possession of a FirearmRead the Press Release
Denver—The United States Attorney’s Office for the District of Colorado announces that 36-year-old Dean Fabiano, of Thornton, has been charged by criminal complaint with Possession of a Firearm by a Prohibited Person.
According to the criminal complaint unsealed in federal court, Fabiano has multiple felony convictions that prohibit him from possessing firearms and ammunition. When, on September 6, 2023, federal law enforcement executed a search warrant at Fabiano’s home, they found 18 firearms, as well as various firearms parts, suspected drugs, potential destructive devices, and Nazi memorabilia and drawings. During the search, law enforcement found a letter from a storage facility where Fabiano rented a storage unit. Law enforcement then obtained and executed a search warrant at the storage unit, where they found more firearms and firearm parts.
The Defendant made his initial appearance in federal court in Denver on September 8, 2023, where he was advised by United States Magistrate Judge Neureiter of the charge pending against him.
This case is being investigated by Homeland Security Investigations and the ATF. Assistant United States Attorney Kelly Churnet is handling the prosecution.
The charge in the criminal complaint is an allegation and the Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Case Number: 23-mj-00156