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24 August 2023
Doctor Pleads Guilty to Role in Antitrust Conspiracy That Limited Cancer Patients’ Options for Life Saving Care in Southwest FloridaRead the Press Release
A medical oncologist and former president and managing partner of Florida Cancer Specialists & Research Institute LLC (FCS) pleaded guilty yesterday to conspiracy to allocate oncology treatments for cancer patients in Southwest Florida.
According to court documents filed in the U.S. District Court in Ft. Myers, Florida, Dr. William Harwin participated in a conspiracy from 1999 to September 2016 to suppress competition by agreeing to allocate chemotherapy treatments for cancer patients to FCS and radiation treatments to another oncology company in Lee, Collier, and Charlotte Counties.
Harwin pleaded guilty to one count of violating Section One of the Sherman Act. Sentencing will take place at a future date as set by the court. A federal district court judge will impose sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“This long-running criminal conspiracy denied cancer patients access to a competitive marketplace for lifesaving oncology treatments,” said Acting Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “The Antitrust Division will not hesitate to prosecute health care providers who choose profits over patients.”
“The FBI will not stand by and allow those trusted with saving lives to manipulate the health care system for their own benefit,” said Special Agent in Charge David Walker of the FBI Tampa Field Office. “This investigation demonstrates the commitment of the FBI and its partners to protect patient care and the healthcare marketplace.”
In April 2020, FCS was charged for its role in the same criminal conspiracy and entered into a deferred prosecution agreement resolving the charge against the company, under which it admitted to conspiring to allocate chemotherapy and radiation treatments for cancer patients. Under the agreement, FCS agreed to pay a $100 million criminal penalty and to cooperate fully with the Antitrust Division’s ongoing investigation.
The FBI Tampa Field Office – Fort Myers RA investigated the case.
Assistant Chief Mark Grundvig, Senior Trial Counsel Eun-Ha Kim and Trial Attorneys Patrick Hallagan and Aidan McCarthy of the Antitrust Division’s Washington Criminal II Section are prosecuting the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Florida.
Anyone with information in connection with this investigation or other antitrust violations should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
Columbia County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Christopher Stickles, age 35, of Copake, New York, pled guilty today to receiving child pornography.
United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Stickles admitted that between January 2021 and August 2022, he accessed the Internet in order to visit file-sharing sites and websites that contained child pornography. Stickles further admitted that while on these sites, he downloaded more than 15,000 still image and video files that contained child pornography.
At sentencing on December 20, 2023, before United States District Judge Anne M. Nardacci, Stickles faces at least 5 years and up to 20 years in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to a life term. The court may also impose a fine, restitution, and forfeiture of the computer Stickles used to commit his offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Stickles will also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, which includes FBI special agents, and state and local investigators, including members of the New York State Police. The Internet Crimes Against Children (ICAC) Task Force assisted the investigation.
Assistant U.S. Attorney Rick Belliss is prosecuting the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cherokee, N.C. Man Is Sentenced to Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a Cherokee, North Carolina man for possession with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Edward Dwayne Taylor, who is 35 years old and an Enrolled Member of the Eastern Band of Cherokee Indians, was ordered to serve 87 months in prison, followed by five years of supervised release.
Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD) joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on June 4, 2021, a CIPD officer conducted a traffic stop of a vehicle in Cherokee, knowing that the driver was operating the vehicle with a suspended license. Taylor was one of the passengers in the vehicle. Over the course of the traffic stop, law enforcement recovered from another passenger a bag that contained more than 130 grams of methamphetamine, digital scales, and small plastic baggies, items that are consistent with drug distribution. Court documents show that over the course of the investigation CIPD officers determined that the methamphetamine belonged to Taylor, and that the other passenger had agreed to hide the drugs at Taylor’s request.
Taylor is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked CIPD for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
California Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – PEDRO VAZQUEZ, age 31, of California, pled guilty on August 15, 2023, before Chief United States District Judge Nannette Jolivette Brown to a two-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A), and 846, and possession with intent to distribute five hundred (500) grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, VAZQUEZ and others known and unknown to the U.S. Attorney, conspired to distribute and possess with intent to distribute approximately 49.7 kilograms of methamphetamine. In addition, VAZQUEZ drove to Metairie, Louisiana to conduct a narcotics transaction that consisted of approximately 100 pounds of methamphetamine.
VAZQUEZ is scheduled to be sentenced on December 7, 2023, and faces a mandatory minimum sentence of 10 years, up to a maximum of life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release per count as well as a mandatory $100 special assessment fee per count.
This case was investigated by the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Broome County Man Sentenced for Making Interstate Threats to Member of CongressRead the Press Release
SYRACUSE, NEW YORK – Joseph F. Morelli, age 51, of Endicott, New York was sentenced today to serve three months in prison for making threatening phone calls from his home to the voicemail in the office of a member of Congress in Washington, D.C.
United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. Morelli was ordered to surrender to prison on October 2, 2023. Chief U.S. District Judge Brenda K. Sannes also ordered Morelli to serve a three-year term of supervised release after completing his sentence of incarceration. The Court directed the parties to further brief the issue of restitution sought by the victim for a decision at a later date.
As part of his guilty plea, Morelli admitted to that on March 3, 2022, he placed a telephone call to the Washington, D.C. office of a member of the U.S. House Representatives that said in part, ““I'm gonna have to take your life into my own hands… I'm gonna hurt you. Physically, I’m gonna harm you.”
A second voicemail message on March 3, 2022, said in part, “I'm gonna have to show you, to your face, right up front, what violence truly is, and I don't think you're gonna like it.… I can pay someone 500 bucks to take a baseball bat and crack your skull. …You are going to get f**king physically hurt.”
A third voicemail message on March 3, 2022, included, “you're gonna cause people to get hurt, so I'm gonna have to hurt you physically. … I'm gonna make sure that, even if they lock me up, someone's gonna get you ‘cause I'll pay them to.”
The Federal Bureau of Investigation (FBI) and the United States Capitol Police investigated the case. Assistant U.S. Attorney Richard Southwick was the prosecutor.
Brooklyn Man Indicted for Kidnapping Five Women and Numerous Other CrimesRead the Press Release
A 20-count superseding indictment was filed yesterday in federal court in Brooklyn charging Chad Barclay with interstate prostitution, Hobbs Act robbery, kidnapping, access device fraud, aggravated identity theft, witness tampering, and obstruction of an official proceeding. Those crimes involve five female victims. In addition, one male was the victim of access device fraud and aggravated identify theft. Barclay was arrested in May 2023 and ordered detained pending trial. Barclay will be arraigned on the superseding indictment at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the superseding indictment.
“As alleged, the defendant is a dangerous criminal who sexually assaulted and robbed multiple vulnerable women while using fear to make them his prisoners,” stated United States Attorney Peace. “I commend the prosecutors and FBI Special Agents for bringing this serial offender to justice. Anyone who believes they are a victim of a crime committed by Barclay is asked to contact the United States Attorney’s Office at https://www.justice.gov/usao-edny/report-crime or the FBI.”
“Barclay is alleged to have callously sexually assaulted, robbed multiple women, or both through threats of violence and coercion. This type of criminal behavior has no place in our communities. Today’s indictment serves as a notice to any individual who willingly uses threats and intimidation to commit sexual assault and other violent crimes—the FBI will ensure you face punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
As alleged in court filings, from September 2022 to May 2023, Barclay engaged in a criminal pattern of enticing women, some of whom were contacted through online escort websites, to meet with him, and then sexually assaulting and/or robbing them. After luring them to his apartment in Brooklyn, Barclay sexually assaulted multiple female victims, instilling fear and confining them for hours in his apartment. Barclay also compelled the victims to unlock their phones so he could take control of the phones and transfer thousands of dollars to himself through various financial platforms. On several occasions, Barclay stole the victims’ bank cards and used them to make unauthorized ATM withdrawals. In some cases, Barclay asked his victims personal questions in an attempt to identify whether they had friends and family in New York or lived alone, and accessed their phones to gather personal information about them—including where they lived and whether they had children—to further coerce them into complying with his demands.
If you are a victim or have information, there are several ways to contact the FBI: send a tip online at tips.fbi.gov or call 1-800-CALL-FBI. The FBI is ready to work with callers in their native language and regardless of your immigration status.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of kidnapping, Barclay faces up to 20 years in prison.
The government’s case is being prosecuted by Assistant United States Attorneys Andy Palacio and Lorena Michelen.
The Defendant:
CHAD BARCLAY
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-242 (S-1) (FB)
Belchertown Man Convicted of Social Security FraudRead the Press Release
BOSTON – A Belchertown man was convicted today by a federal jury of fraudulently receiving Social Security disability benefits.
Kenneth Pontz, 59, was convicted following a three-day jury trial of one count of theft of public funds. Pontz was arrested and charged in June 2022. He is scheduled to be sentenced on Jan. 4, 2024.
Over a period of more than six years, Pontz stole approximately $49,929 in Social Security disability benefits.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Belchertown Police Chief Kevin Pacunas made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg and Assistant U.S. Attorney Neil L. Desroches of the Criminal Division prosecuted the case.
Bartlesville Teenager sentenced for MurderRead the Press Release
TULSA Okla. – A Cherokee teenager was sentenced yesterday to more than 17 years in federal prison for second degree murder of a toddler, announced U.S. Attorney Clint Johnson.
U.S. District Chief Judge John F Heil III sentenced Cherokee citizen Terry Nathan Hindman, 19, of Bartlesville to 17 years and 6 months in federal prison followed by 5 years of supervised release.
“This young child suffered horrible abuse and a tragic death from the abuse of Terry Hindman,” said U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office and our law enforcement partners will continue to fight for justice against those who harm Oklahoma’s children.”
During the sentencing, Judge Heil addressed the family saying that he “would like to create a sentence that will heal the pain, but I can’t do that.” He further addressed the defendant stating, “You can’t possibly make up for the damage you’ve done, but moving forward you can try.”
The father of the victim addressed the court about Hindman before sentencing and said, “I fear he enjoyed giving him (the child) something to cry about;” and “What possible excuse could you have for torturing a child?” The father further stated, “Our memories of our son are now haunted by memories of pain.”
In a statement read to the court, Dylan Chapman, the uncle of the victim said, “Words cannot fully capture the depth of pain our family has suffered. There is nothing more heartbreaking than seeing a dying child.”
During his plea on May 9, 2022, Hindman admitted that on Sept. 29, 2021, he threw the 23-month-old victim causing the injuries that killed him. Hindman stated that he intentionally threw the victim “from across the room onto a couch in the apartment with excessive force.” Hindman said the child “hit his head on the wall behind the couch and landed on a table in front of the couch striking his head. Afterwards, he stumbled around and seem dazed.” Hindman did not seek medical attention for the toddler and did not tell anyone of the incident, including doctors when the child was taken to the hospital later that day.
Hindman further admitted that on Oct. 2, 2021, he was again watching the child when he began having medical problems and appeared to be having a hard time breathing. Hindman stated, “I did not seek medical care,” but the toddler was taken to the hospital and “I again failed to tell anyone of his previous injury.”
The child died from blunt force trauma on Oct. 7, 2021, because of his original injury on Sept. 29, 2021.
Hindman will remain in custody of the U.S. Marshal Service pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bartlesville Police Department and FBI investigated the case.
Assistant U.S. Attorneys Chantelle Dial and Shannon Cozzoni prosecuted the case.
Auto Zone robber sent to prisonRead the Press Release
HOUSTON –A 31-year-old Houston resident has been ordered to federal prison following his convictions on two counts of Hobbs Act robberies as well as discharging a firearm during one of the crimes, announced U.S. Attorney Alamdar S. Hamdani.
Dominique Andrews pleaded guilty May 2, admitting he robbed two Auto Zone locations in Houston.
U.S. District David Hittner has now handed Andrews a 180-month term of imprisonment for the two robberies. He also received 120 months for the firearms discharge which must be served consecutively to the other sentence imposed. The total 300-month prison term will be immediately followed by five years of supervised release. In handing down the sentence, the court noted Andrews had a significant criminal history of violence and stated that an upward variance from the sentencing guidelines was warranted. In addition, he ordered restitution to the victims in both robberies.
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Crime Gun Strike Force will continue to aggressively investigate armed robbery crews not only to remove criminals from the streets but to reduce the trauma endured by the victims involved in these violent crimes,” said ATF Special Agent in Charge Fred Milanowski.
On Feb. 4, 2022, Andrews entered the Auto Zone on Cullen Boulevard and robbed an employee at gunpoint. He produced a silver semi-automatic firearm and demanded money from the victim. Fearing for her life, the employee complied. Andrews also took two car scanners. During the robbery, he discharged a round from his firearm.
The same day, Andrews went to another Auto Zone on Telephone Road. He again produced a silver semi-automatic firearm and demanded money from the employee victim. Andrews discharged several rounds from the firearm he was carrying while in the commission of the robbery. Andrews got more money and fled.
Andrews has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and the Houston Police Department conducted the investigation.
The ATF Crime Gun Strike Force is an ATF led, multi-agency approach, that utilizes crime gun intelligence and investigative resources to combat firearms related violent crime in the Greater Houston Area.
This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. 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.
Assistant U.S. Attorney Joe Porto is prosecuting the case.
Assistant District Attorney Charles Minor Appointed as Special Assistant United States AttorneyRead the Press Release
CHATTANOOGA, Tenn. – United States Attorney Francis M. Hamilton III announced the appointment of Assistant District Attorney (“ADA”) Charles Minor to serve as a Special Assistant U.S. Attorney (“SAUSA”) in the Criminal Division of the U.S. Attorney’s Office in Chattanooga, Tennessee. This appointment is the result of a partnership between the U.S. Attorney’s Office and the Hamilton County District Attorney’s Office.
“Due to the extraordinary proliferation of crimes against children originating on the internet, we have joined efforts with District Attorney Coty Wamp to fight crimes against children by a adding a specially appointed federal prosecutor to work these types of cases,” said U.S. Attorney Francis M. Hamilton III. “As a SAUSA, ADA Minor will work with the district’s Project Safe Childhood program and other Assistant U.S. Attorneys to improve the program’s effectiveness. We are grateful that District Attorney Wamp is willing to share her talent with our office to combat dangerous predators who relentlessly use the internet to exploit the most vulnerable members of our community. ADA Minor has developed a great working relationship with federal agents and task force officers over the years, and his record shows he is dedicated to ending the exploitation of children.”
“When my office realized there was a way in which we could partner with the U.S. Attorney’s Office and federal agencies to ensure prosecution for offenders who prey on children, we knew it was something we wanted to be involved in,” said District Attorney Coty Wamp. “ADA Minor stepped up and has made these cases a priority. We are very proud of this partnership.”
Charles Minor has worked as an Assistant District Attorney for Hamilton County since 2006, where he has focused on prosecuting child abuse and child exploitation cases, homicide, violent crimes, and drug cases. He holds a Bachelor of Arts from the University of Tennessee Chattanooga and a Juris Doctorate from the Northeastern University in Boston, Massachusetts.
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Armed Henderson Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 180 months in prison for trafficking fentanyl and possession of firearms. On March 20, 2023, Neno King, 31, pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of heroin and fentanyl, possession with the intent to distribute a quantity of fentanyl, and possession of a firearm by a felon.
“The Henderson Police Department has made major investments in the federal partnership and the people of Henderson are safer for it,” said U.S. Attorney Michael Easley. “This city is bringing every law enforcement tool to fight the opioid crisis, and we are proud to partner with state and local police and prosecutors to fight fentanyl trafficking and save lives.”
Chief Marcus Barrow of Henderson PD stated: “This is just another example of our collective efforts to make our community safer. I’m hopeful the impact is felt across our community.”
According to court documents and other information presented in court, law enforcement conducted multiple controlled purchases of heroin suspected of containing fentanyl from King in the Spring of 2022. In March 2022, agents executed a search warrant at King’s residence in Henderson where they recovered three firearms and a substance containing fentanyl.
King has prior felony convictions for possession with the intent to manufacture, sell, or deliver heroin (2013), possession of heroin (2015), possession with the intent to manufacture, sell, or deliver heroin (2016), and fleeing and eluding arrest in a motor vehicle (2016).
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henderson Police Department, the North Carolina State Bureau of Investigation and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00335-BO.
Arkansas Man Gets 70 Months in BOP for Trafficking Methamphetamine to IllinoisRead the Press Release
EAST ST. LOUIS, Ill. – A man from Arkansas was sentenced to 70 months in federal prison Wednesday after he admitted to transporting 11 pounds of crystal methamphetamine to Fairview Heights, Illinois.
Leonardo A. Hernandez, 50, of Bentonville, Arkansas, pleaded guilty to one count of possession with intent to distribute a controlled substance. In addition to the prison sentence, he will serve two years of supervised release.
Co-defendant Luis A. Aguilar-Caldera, 31, of Chula Vista, California, pleaded guilty to one count of possession with intent to distribute a controlled substance and was sentenced to 70 months imprisonment on April 12, 2023. After serving his sentence, he will be placed on supervised release for two years.
“Out-of-state drug dealers frequent southern Illinois roadways to execute plans for distribution across the country,” said U.S. Attorney Rachelle Aud Crowe. “DEA plays a critical role to help disband criminal drug rings, and I thank the agents who worked this case.”
According to court documents, a confidential informant working with the DEA set up a controlled purchase of methamphetamine from a Mexico-based supplier in May 2021. The individual met two men in a Ford F-150 at the Flying J truck stop in Alorton, Illinois.
Hernandez was driving and Aguilar-Caldera was the passenger in the truck that was pulling a lawn mower on a trailer. The men told the confidential source there were 11 pounds of methamphetamine located in the tires of the lawn mower.
As the Ford F-150 and the confidential source were driving to a mechanic shop to remove the tires and retrieve the drugs, DEA agents conducted a traffic stop in Fairview Heights and arrested the men in the truck.
The Drug Enforcement Administration led the investigation, and Assistant U.S. Attorney Daniel Carraway prosecuted the case.
Antigua Man Arrested 13 Years After Being Charged with Racketeering in Connection with Illegal Gambling RingRead the Press Release
BOSTON – An Antigua man has been arrested more than a decade after being charged in connection with his participation in a large-scale illegal gambling business which utilized an Antiguan Internet site but operated in the continental United States.
Richard Sullivan, 73, of St. John’s, Antigua, was indicted by a federal grand jury in Boston in August 2010 with racketeering (RICO), operating an illegal gambling business, transmission of wagering information, money laundering and interstate travel in aid of racketeering. Sullivan was arrested on Aug. 20, 2023 at John F. Kennedy International Airport in New York while proceeding through customs upon his return to the United States from Antigua. Sullivan was arraigned in the Eastern District of New York on Aug. 21, 2023 and will appear in federal court in Boston at a later date.
This prosecution marked one of the first times that individuals were charged with violating the Unlawful Internet Gambling Enforcement Act (UIGEA), and the first in Massachusetts. The UIGEA statute was enacted in 2006 to deter the use of the U.S. banking system to pay Internet gambling debts incurred by U.S. citizens. Sullivan and his co-defendants are charged with over 75 counts of engaging in U.S. banking transactions involving U.S.-based gamblers to pay gambling debts owed to Sports Offshore.
According to the indictment, Sullivan and his three co-conspirators – Todd Lyons, Robert Eremian and Daniel Eremian – operated Sports Offshore, an online gambling site licensed in Antigua that was actually operating in the United States, conducting an illegal gambling business that stretched from Massachusetts to Florida. It is alleged that Sports Offshore used an Internet site and toll-free telephone line registered in Antigua to service United States customers. The ring also allegedly employed approximately 50 gambling agents in the United States, who solicited hundreds of customers and collected gambling debts, forwarding the illegal gambling proceeds to Antigua.
To conceal the conspiracy, Sullivan and his co-conspirators allegedly created numerous fictitious entities with no legitimate business purpose to launder the proceeds of their illegal gambling business so that authorities could not detect U.S.-based financial transactions involving Sports Offshore.
Sullivan allegedly managed the daily activities of Sports Offshore at its gambling office in St. John’s, Antigua. In that capacity, Sullivan allegedly supervised approximately 30-50 employees who accepted wagers from customers in the United States that were placed over the telephone and the Internet. It is alleged that Sullivan directed collection activities regarding customers and agents located in the United States who owed money to Sports Offshore. Sullivan also allegedly served as an agent for Sports Offshore, in that he was responsible for a group of Massachusetts customers who gambled with Sports Offshore and he earned commissions on gambling losses incurred by those customers. It is further alleged that Sullivan utilized individuals who resided in Massachusetts to collect money from his Massachusetts customers which he had shipped directly to Antigua via the mail.
In total, Sullivan and his co-conspirators allegedly collected over $22 million for Sports Offshore through the illegal gambling operation and laundered more than $10 million in checks and wire transfers.
In December 2011, Lyons and Daniel Eremian were convicted following a five-week jury for their roles in the conspiracy. Lyons was sentenced to four years in prison, one year of supervised release and was ordered to forfeit $24.6 million. Daniel Eremian was sentenced to three years in prison, one year of supervised release and was ordered to forfeit $7.7 million.
The charge of racketeering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of operating an illegal gambling business provides for a sentence of up to five years in prison, and up to two years of supervised release and a fine of up to $250,000. The charge of transmission of wagering information provides for a sentence of up to two years in prison, and up to one year of supervised release and a fine of up to $250,000. The charge of money laundering 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. The charge of interstate travel in aid of racketeering provides for a sentence of up to five years in prison, and up to two years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of Internal Revenue Service, Criminal Investigation, Boston Field Office; Brian Kyes, United States Marshal for the District of Massachusetts; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of New York and the Essex County District Attorney’s Office. Assistant U.S. Attorney Dustin Chao, Chief of the Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
23 August 2023
Woman Who Aided Robber of ATM Workers in St. Louis County SentencedRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a woman who helped in the robbery of workers servicing an ATM in St. Louis County, Missouri to 56 months in prison.
Gregreonia Hampton, 21, drove the robber to the Vantage Credit Union on May 31, 2022, where he robbed two employees of ATM Solutions with a fully-automatic Anderson Manufacturing AM-15 firearm. When Hampton pleaded guilty in May to a charge of aiding and abetting a robbery, she admitted having enough foreknowledge of the robbery that she could have walked away.
The robber, 21-year-old Mark Anthony Diggs, was sentenced last month to 121 months in prison. Diggs pleaded guilty in April to one robbery charge and one count of possession and brandishing a firearm in furtherance of a crime of violence.
Both Diggs and Hampton were ordered to repay the money they stole.
The St. Louis County Police Department, the FBI, the Missouri State Highway Patrol and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Linda Lane is prosecuting the case.
United States Obtains $607,284 Crop Insurance False Claims Act Judgment Against Klickitat County Farm OwnerRead the Press Release
Yakima, WA – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States had successfully obtained a $607,284 fraud judgment against Rick T. Gray (Gray) and Gray Farms & Cattle Co. LLC (Gray Farms) for submitting false and fraudulent claims for crop insurance for farm businesses owned by Gray in Klickitat County, Washington. The Court determined that Gray and Gray Farms were liable under the False Claims Act for defrauding the federal crop insurance program, and imposed the maximum damages and penalties sought by the United States.
The federal crop insurance program, run by the United States Department of Agriculture (USDA), provides a mechanism through which participating farm owners may obtain monetary subsidies and financial protection against losses to their crops. If a participating farm owner experiences loss due to weather or other factors, the farm owner may submit a claim for indemnity from those losses. Crucial to participation in the program is that the farm owner must disclose all sales of product during a given crop year. In 2015, Gray submitted claims for loss on behalf of his farm businesses and received hundreds of thousands of dollars in indemnity payments.
In September 2021, the United States filed a Complaint pursuant to the False Claims Act, a federal statute that protects the public from fraud against federal programs, alleging that Gray had submitted false crop insurance claims during 2015 by knowingly failing to disclose tens of thousands of bushels of wheat that Gray sold during that crop year, and affirmatively misrepresenting his wheat production and sales for the year. In a judicial order dated August 21, 2023, United States District Judge Thomas O. Rice granted summary judgment on behalf of the United States with respect to the United States’ False Claims Act claims, finding that the undisputed evidence demonstrated that Gray knowingly submitted false claims and made false statements material to payment by knowingly failing to disclose and misrepresenting more than 35,000 bushels of wheat that he sold during crop year 2015, leading to Gray fraudulently receiving $180,428 in indemnity payments to which he was not entitled.
The False Claims Act calls for treble (triple) damages as well as additional penalties for each false claim submitted. Therefore, in addition to finding both Gray and Gray Farms liable, the Court imposed total judgment of $607,284 in treble damages and the maximum possible penalties.
“The Federal Crop Insurance program was created in the wake of staggering losses, poverty, and famine caused by the Dust Bowl,” said United States Attorney Waldref. “It not only protects our farmers and farm workers, but protects our community’s food supply, and helps to keep food affordable. Attempting to cheat the system by claiming losses for crops that in fact were not lost but that the farm owner successfully sold, is simply unconscionable. I’m so grateful for the exceptional investigative and analytical expert work performed by the USDA’s Office of Inspector General and the USDA’s Risk Management Agency, which uncovered this fraud during a thorough investigation, and then continued to support the public’s interest during protracted litigation. This case demonstrates that we will work tirelessly and aggressively with our law enforcement partners to pursue fraud against vital programs and to keep our communities safe and strong.”
USDA Risk Management Agency Administrator Marcia Bunger said, “We will continue to uphold the public’s trust in the crop insurance program by working closely with the Office of Inspector General, the Department of Justice and other government agencies to ensure the successful investigation and prosecution of cases involving crop insurance fraud, waste and abuse. The court’s determination in this case should serve as a strong deterrent to others who may contemplate similar actions.”
The investigation was handled by the USDA Office of Inspector General and the USDA Risk Management Agency, Special Investigations Group, while the civil enforcement action was prosecuted by Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter, and also by former Special Assistant United States Attorney Allie Jensen.
1:21-CV-03126-TOR
United States Files Forfeiture Action to Recover Cryptocurrency Traceable to Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an investment fraud scheme targeting a Massachusetts resident. The government seeks to forfeit 87,637 Tether (USDT) seized from an account located at Binance, a cryptocurrency exchange and custodian.
In November 2022, an investigation began into a cryptocurrency investment fraud scheme targeting a Massachusetts resident. As alleged in court documents, the individual was tricked, through fraudulent text and WhatsApp messages, into transferring a total of $975,900 from his bank account first into two cryptocurrency exchanges and then from there into a fraudulent cryptocurrency exchange.
From that transfer, the funds, in the form of cryptocurrency, were allegedly transferred through a series of intermediary cryptocurrency addresses. Ultimately, investigators were able to trace some of the funds to an account located at Binance, the contents of which were seized in May 2023.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. The complaint alleges that the seized currency was proceeds of the wire fraud. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is the fourth civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and business email compromise (BEC) fraud scams – should contact USAMA.CyberTip@usdoj.gov.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
U.S. Attorney’s Office Charges Ten Defendants in Drug Trafficking ProbeRead the Press Release
CHICAGO — A federal drug trafficking investigation has resulted in charges against ten individuals for allegedly trafficking fentanyl-laced heroin and other drugs on the South Side of Chicago.
The multi-year investigation, led by the DEA Chicago Field Division and the Chicago High Intensity Drug Trafficking Area program, utilized undercover and controlled narcotics purchases, covert surveillance operations, and wiretapped communications to shut down a drug trafficking operation. Criminal complaints filed in federal court in Chicago allege that the defendants were affiliated with the Gangsters Disciples, a Chicago street gang. The traffickers allegedly used a designated cellular telephone to receive and service narcotics orders, with various defendants taking shifts working the phone to distribute narcotics.
Most of the defendants were arrested Tuesday and have begun making initial appearances in U.S. District Court in Chicago. Law enforcement on Tuesday also executed court-authorized searches of multiple locations in Chicago.
The charges and arrests were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the DEA, Nicholas J. Roti, Executive Director of Chicago HIDTA, and Fred Waller, Interim Superintendent of the Chicago Police Department. Valuable assistance was provided by the U.S. Marshals Service. The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Edward Liva.
The case is part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.
Three complaints charge ten individuals with federal narcotics violations:
U.S. v. Ware, et al, 23 CR 409
Charged in this federal drug conspiracy are KEVIN WARE, 49, of Chicago, CHRISTOPHER WARE, 45, of Chicago, BRANDAN ALLEN, 31, of Chicago, RICKY WILLIAMS, 37, of Chicago, DARREL BROOKS, 51, of Chicago, LEROY PRESLEY, 49, of Riverdale, Ill., and ERNEST ROWLETTE, 49, of Chicago.
The charges allege that Kevin Ware led a trafficking organization and oversaw its operation, including managing the potency and supply of the narcotics it sold. He allegedly held discussions with dealers regarding best practices for interacting with customers and what types of deals to offer them. Kevin Ware also allegedly obtained information from his dealers about their interactions with law enforcement. Soon after two law enforcement seizures of suspected narcotics last year, Williams and other dealers reported the incidents to Kevin Ware, the complaint states.
The conspirators allegedly utilized a residence in Chicago’s West Pullman neighborhood as a “stash house” to store narcotics and cash. In 2021 and 2022, undercover law enforcement officers and cooperating sources made approximately 44 controlled purchases of narcotics from members of Kevin Ware’s organization, the charges allege.
U.S. v. Pearson, et al, 23 CR 422
Kevin Ware is also charged in a second federal drug case, along with MICHAEL PEARSON, 49, and JAMIE PEARSON, 46, both of Chicago.
According to the charges, the defendants distributed fentanyl and fentanyl-laced heroin. Michael Pearson allegedly conducted several drug deals in Chicago’s Pullman and West Roseland neighborhoods. One of the alleged deals occurred in May 2021 in a delicatessen in the 10700 block of South Michigan Avenue, where Michael Pearson arranged for the sale of heroin mixed with fentanyl and methamphetamine, the complaint states. Unbeknownst to Michael Pearson, the buyer was cooperating with law enforcement, the complaint states.
U.S. v. Allen, 23 CR 408
Charged with distributing fentanyl and fentanyl-laced heroin is REGINALD ALLEN, 22, of Chicago. Reginald Allen allegedly sold the drugs on the South Side of Chicago on several occasions in 2021 and 2022.
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The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Allen complaint Pearson et al complaint Ware et al complaintTroy Woman Pleads Guilty to Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – Jazell Shuler, age 35, of Troy, New York, pled guilty today to conspiring to distribute marijuana and launder money.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Chief Daniel DeWolf of the Troy Police Department; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In pleading guilty, Shuler admitted to being a member of a marijuana and tetrahydrocannabinols (THC) trafficking organization that cultivated marijuana on a commercial scale in Fresno, California, and shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region. Shuler also admitted to laundering marijuana and THC proceeds for the organization.
The packages of marijuana were shipped through UPS and FedEx from a shipping store in Fresno, Fast Pack & Ship, by Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” and McKenzie Merrialice Coles, aka “Kenzie.” At the direction of David Singletary, aka “DB,” Shuler received packages of marijuana at her and David Singletary’s respective residences in Troy and notified David Singletary when the packages arrived. Shuler also packaged marijuana for sale.
The marijuana was sold out of “knock spots” in the Capital Region, which advertised various strains and quantities of marijuana and THC “edibles” for sale, with prices, on white boards. The defendant worked at the “knock spots” and updated the information on the white board for David Singletary. In addition to working at the “knock spots,” Shuler sold marijuana.
The defendant also laundered marijuana and THC proceeds for the organization by sending $13,500 in money transfers purchased with cash drug proceeds from Troy to six people in Fresno, Windsor, and Merced, California, including Nehemiah Fane, aka “Neil,” and James Tyrell Daniels, aka “Red” and “Ghost.” David Singletary provided Shuler with the cash drug proceeds for the money transfers.
Shuler faces up to 20 years in prison on each of the two counts to which she pled guilty, conspiring to distribute marijuana and conspiring to commit money laundering; fines of up to $1 million and $500,000, respectively, on each count; and a term of supervised release of between 3 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Shuler was charged in an indictment with Dwight and David Singletary, McKenzie Coles, Fane, Daniels and 18 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Dwight Singletary, David Singletary, McKenzie Coles, Fane, and Daniels have pled not guilty, and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Shuler, five other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, and Kristle Walker, previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department, and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tornado Cash Founders Charged with Money Laundering and Sanctions ViolationsRead the Press Release
A Russian national and a Washington man were charged today with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business.
According to the indictment, unsealed today in the Southern District of New York, Roman Storm, 34, of Auburn, Washington, and Roman Semenov, 49, of Russia, created, operated, and promoted Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions, and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization. Storm was arrested today in the state of Washington and will be presented later today in the Western District of Washington.
“As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government,” said Attorney General Merrick B. Garland. “These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”
“Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous,” said FBI Director Christopher Wray. “You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator. Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions. As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”
“Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
“As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable U.S. sanctions violations wherever they operate.”
“As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than one billion dollars in criminal proceeds and violated U.S. sanctions,” said U.S. Attorney Damian Williams for the Southern District of New York. “Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”
Storm and Semenov were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency. The defendants and their co-conspirators allegedly created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service. The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and Storm and Semenov chose not to implement know-your customer or anti-money laundering programs as required by law. As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds. Storm and Semenov allegedly knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes. However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.
In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds. Storm and Semenov allegedly knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions. They implemented a change in the service so they could make a public announcement that they were compliant with sanctions, but in their private chats they agreed that this change would be ineffective. They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control (OFAC) as blocked property.
Storm and Semenov are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, each of which carries a maximum penalty of 20 years in prison. They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the IRS-Criminal Investigation are investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance.
Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti for the Southern District of New York, and Trial Attorneys Jacques Singer-Emery and Garrett Coyle of the Justice Department's National Security Division are prosecuting the case in partnership with the Criminal Division’s National Cryptocurrency Enforcement Team (NCET).
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tornado Cash Founders Charged with Money Laundering and Sanctions ViolationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Nicole M. Argentieri, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, and Bryant Jackson, the Special Agent in Charge of the Cincinnati Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging ROMAN STORM and ROMAN SEMENOV with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business. The charges in the Indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group, the sanctioned North Korean cybercrime organization. ROMAN STORM was arrested today in the state of Washington and will be presented today in the U.S. District Court for the Western District of Washington. The case has been assigned to U.S. District Judge Katherine Polk Failla. SEMENOV remains at large.
U.S. Attorney Damian Williams said: “As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions. Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes. Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.”
Attorney General Merrick B. Garland said: “As alleged in the indictment, the defendants operated a $1 billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government. These charges should serve as yet another warning to those who think they can turn to cryptocurrency to conceal their crimes and hide their identities, including cryptocurrency mixers: it does not matter how sophisticated your scheme is or how many attempts you have made to anonymize yourself, the Justice Department will find you and hold you accountable for your crimes.”
FBI Director Christopher A. Wray said: “Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous. You can’t hide from us behind a keyboard — whether you’re a hacker or facilitator. Those charged today engaged in a conspiracy to launder money for cybercriminals, including for a North Korean cybercrime organization seeking to evade sanctions. As we have with this operation, the FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes, and holding anyone who assists those criminals accountable.”
Acting Assistant Attorney General Nicole M. Argentieri said: “Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. As alleged, the defendants operated Tornado Cash as a safe haven for criminal actors to obfuscate the trail of funds tied to their criminal activities, such as computer hacking and wire fraud. The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
Assistant Attorney General Matthew G. Olsen said: “As stated in the indictment, the defendants’ cryptocurrency service facilitated more than $1 billion in illicit transactions, and they knowingly allowed a globally sanctioned cybercrime group to launder hundreds of millions of dollars on behalf of the North Korean regime. The Justice Department – alongside our domestic and international law enforcement partners – will use every tool in our arsenal to pursue and dismantle the criminal networks that enable US sanctions violations wherever they operate.”
FBI Assistant Director in Charge James Smith said: “Today’s indictment of Tornado Cash co-founders Roman Storm and Roman Semenov highlights their alleged role in creating a cryptocurrency mixer that ultimately served as a gateway for the laundering of more than $1 billion in criminal proceeds. As alleged, when it became clear that a sanctioned North Korean cybercrime organization was using the platform to launder hundreds of millions of dollars derived from cyber heists, Storm and Semenov turned a blind eye to the illicit activity and made public representations that they were compliant with sanctions laws. Today’s enforcement actions remind the public that the FBI, when faced with illegal activity, is committed to tracing the untraceable, and will remain focused on protecting victims of financial crime wherever those crimes are committed — be it through the traditional banking system or the virtual currency blockchain.”
IRS-CI Special Agent in Charge Bryant Jackson said: “As alleged, Tornado Cash was used to launder over $1 billion. IRS Criminal Investigation’s Special Agents use their financial expertise to follow the flow of cryptocurrency transactions and dismantle major money laundering organizations that try to conceal the criminal source of their funds. Today's indictment is a direct result of our collaboration with our law enforcement partners, both in the U.S. and abroad. Through our work together, those who use deceit and fraud to line their pockets with illegal profits will be held accountable.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
ROMAN STORM and ROMAN SEMENOV were two of the three founders of the Tornado Cash service, a cryptocurrency mixer that allowed its customers to engage in untraceable transfers of cryptocurrency. The defendants and their co-conspirators created the core features of the Tornado Cash service, paid for critical infrastructure to operate the Tornado Cash service, promoted the Tornado Cash service, and made millions of dollars in profits from operating the Tornado Cash service. The Tornado Cash service advertised to customers that it provided untraceable and anonymous financial transactions, and STORM and SEMENOV chose not to implement know your customer or anti-money laundering programs as required by law. As a result, the Tornado Cash service was used to launder more than $1 billion in criminal proceeds. STORM and SEMENOV knew about these money laundering transactions and received complaints and requests for help from victims of hacking and other cybercrimes. However, they refused to implement any controls and continued to operate the Tornado Cash service and facilitate these money laundering transactions.
In April and May 2022, the Tornado Cash service was allegedly used by the Lazarus Group, a sanctioned North Korean cybercrime organization, to launder hundreds of millions of dollars in hacking proceeds. STORM and SEMENOV knew that the Tornado Cash service they were operating was engaging in these sanctions-violating transactions. They implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective. They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.
* * *
ROMAN STORM, 34, of Auburn, Washington, and ROMAN SEMENOV, 35, a Russian national, are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, which each carry a maximum sentence of 20 years in prison. They are also each charged with conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of the FBI and IRS-CI. He also acknowledged the assistance of the Justice Department’s Office of International Affairs. Mr. Williams further thanked the Joint Chiefs of Global Tax Enforcement (“J5”) for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit and the Criminal Division’s National Cryptocurrency Enforcement Team (“NCET”). Assistant U.S. Attorneys Thane Rehn and Benjamin Gianforti are in charge of the prosecution.
The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the Department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Storm and Semenov IndictmentThree Men Sentenced to Federal Prison After Armed Robbery of a Columbia Postal CarrierRead the Press Release
COLUMBIA, SOUTH CAROLINA —Don Everett Peters, III, a/k/a “Pop,” 21, and Shylik Lamont Smalls, a/k/a “Mitch,” 22, both of Columbia, and Elijah Rasue Dewayne Ellis, a/k/a “Smoke,” a/k/a “Black,” 21, of Valdosta, Georgia, have each been sentenced to federal prison for their roles in the March 17, 2022, armed robbery of a United States Postal Letter Carrier in downtown Columbia.
Peters, Smalls, and Ellis each pleaded guilty to conspiracy to commit armed robbery of a United States Postal Letter Carrier, assault/armed robbery of a United States Postal Letter Carrier, and theft/possession of a United States Postal arrow key. Peters and Smalls also pleaded guilty to theft/possession of United States mail.
Evidence presented in court showed that on the afternoon of March 17, 2022, after surveilling another postal carrier in the Hollywood-Rose Hill/Rosewood area of Columbia, the trio decided to rob a letter carrier making his rounds on Hollywood Drive. While Peters waited in the getaway car, Smalls and Ellis—while wearing masks—approached the carrier. Ellis pointed a gun at the carrier and demanded his keys. Peters then picked up the two co-conspirators and they fled the area.
After an extensive investigation, including review of numerous surveillance cameras and interviewing witnesses, law enforcement authorities linked the getaway vehicle to Peters. After a review of Peters’ prior encounters with law enforcement and cell phone records, postal inspectors were able to link Smalls to Peters. They determined that Smalls matched the description of one of the robbers, that both Smalls and Peters had access to firearms, and that Smalls was in possession of clothing matching the description of the clothing worn by one of the robbers.
Search warrants were obtained for Peters’ and Smalls’ apartments and vehicles and executed on May 4, 2022. Smalls was found with the stolen arrow key in his pants pocket. Investigators also recovered stolen mail, check making materials, several electronic devices such as cell phones and laptops, and two privately made firearms, which are commonly known as “ghost guns.” One ghost gun was found in Peters’ bedroom and the other in Smalls’ bedroom. Inside Peters’ car, Inspectors found documentation belonging to Ellis.
After waiving their rights, both Peters and Smalls admitted to being involved in the robbery, along with Ellis. Peters and Smalls were placed under arrest and a warrant was issued for Ellis. On May 31, 2022, Ellis was arrested in Valdosta, Georgia, where he was found in possession of a “ghost gun” and a quantity of marijuana. After advice of rights, Ellis admitted to being involved in the robbery with Peters and Smalls. All three have been in custody since their 2022 arrests.
“Make no mistake, we will bring all of our federal resources to bear when our postal carriers are robbed,” said U.S. Attorney Adair F. Boroughs, “Postal carriers are an integral part of our communities, and we are thankful for the residents who provided critical information as a part of this investigation and those who stood by the carrier at the sentencing hearing.”
“The sentences imposed in this case exemplify the unending dedication of the U.S. Postal Inspection Service to protect the employees of the United States Postal Service. When our employees are victims of robberies and assaults, we do not stop until we identify those responsible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the United States Postal Inspection Service. “We extend our appreciation to the U.S. Attorney’s Office and our law enforcement partners for their support in this case.”
United States District Judge Mary Lewis Geiger sentenced Peters to 7 years in prison. Smalls and Ellis were each sentenced to 6 years in prison. Following their prison terms, each will be on supervised release for 3 years. There is no parole in the federal system.
This case was 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.
This case was investigated by the United States Postal Inspection Service and the Columbia Police Department. Additionally, the United States Marshals Fugitive Task Force and the Lowndes County, Georgia, Sheriff’s Office assisted in the arrest of Ellis. Assistant U.S. Attorneys Stacey D. Haynes and Lamar Fyall prosecuted the case.
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Three Charged in Fentanyl Overdose in St. Francois County JailRead the Press Release
ST. LOUIS – Three people have been indicted in U.S. District Court in St. Louis on drug charges and have been accused of helping smuggle the drugs that killed a St. Francois County jail detainee in 2021.
Timothy L. Noll, 34, Garry “Will” Triplett, 36, and Alissa R. Hahn, 28, were indicted August 9 on a charge of conspiracy to distribute a controlled substance. Triplett and Hahn are also facing a charge of distribution of a controlled substance and Noll is facing a charge of distributing a controlled substance resulting in death.
The indictment accuses Triplett of providing controlled substances to Hahn on July 31, 2021. Hahn and others distributed drugs to Noll the next day and on August 2, 2021, Noll provided drugs to the detainee who died as a result, according to the indictment.
A detention motion says Noll was captured on a jail video call coordinating with a drug supplier and instructing a family friend how to conceal narcotics in the spine of a bible. Noll’s cellmate later died of a fentanyl overdose within feet of the bible, according to the detention motion and statements made in court. A motion regarding Triplett says he was caught on video on July 31, 2021 supplying capsules and a bag of a crystal substance that were later hidden in the bible.
Triplett made his first appearance in court Wednesday, where he pleaded not guilty to the charges. Hahn pleaded not guilty August 17 and Noll pleaded not guilty the next day. Triplett and Noll waived detention hearings and will be held in jail until trial.
“We are working with the Missouri State Highway Patrol, who investigate overdose deaths of detainees in correctional institutions, and we will prosecute these cases,” said U.S. Attorney Sayler A. Fleming. “If convicted in federal court, those who supply drugs that kill could spend the rest of their lives in prison.”
The charges against Noll and Triplett carry a potential penalty of a mandatory life sentence in prison. Hahn’s charges are punishable by up to 20 years in prison.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Missouri State Highway Patrol. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Taos Woman Sentenced to 5 Years Supervised Probation and Community Service for Assault Resulting a Serious Bodily InjuryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Kylie Lujan was sentenced to 5 years supervised probation and a period of community service. Lujan, 26, of Taos, New Mexico, and an enrolled member of the Taos Pueblo, pled guilty to assault resulting in bodily injury on March 30, 2023.
According to court documents, on March 25, 2022, Lujan’s sister, Jane Doe, asked her to spend the night at her house and watch their grandmother, who is wheelchair bound and on dialysis, the next day. When Lujan’s sister picked her up, she suspected that Lujan was intoxicated. Lujan later admitted that she drank a pint of Jack Daniels before Jane Doe picked her up.
Later that night, Lujan’s sister expressed her disappointment in Lujan’s failure to “step up” and assist the family with their grandmother’s care. Without hesitation, Lujan wrapped her hands around her sister’s neck, then choke slammed her to the ground before punching her “five to six” times in the face with a closed fist. When their grandmother attempted to intervene, Lujan pushed her away and fled the scene. The assault resulted in multiple fractures that required Jane Doe be emergency airlifted to UNMH for facial reconstructive surgery.
Federal prosecutors made the recommendation for supervised release instead of jail time based on Lujan’s complete compliance with the terms of her pretrial release, lack of criminal history, and with the support of her family, including Jane Doe.
The Taos Pueblo Department of Public Safety investigated this case. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Sunnyside Man Sentenced to Ten Years Imprisonment for Selling Drugs Within the Boundaries of the Yakama NationRead the Press Release
Yakima, Washington – On August 22, 2023, United States District Judge Mary K. Dimke sentenced Jesse Robledo, 36, of Sunnyside, Washington, to 10 years in federal prison after his guilty plea to Distribution of Fifty Grams or More of Actual Methamphetamine. Robledo will also begin five years of court supervision after he is released from custody.
According to information disclosed during court proceedings – between May 7, 2021, and July 14, 2021 – on three separate occasions, Robledo, who is not a Native American, entered the Yakama Nation and sold methamphetamine to a confidential informant within the boundaries of the Yakama Nation. At the time of this offense, Robledo already had a lengthy criminal history. He previously had been convicted of bail jumping, residential burglary, first degree identity theft, first degree theft, forgery, second degree unlawful possession of a firearm, and felon in possession of a firearm and ammunition.
United States Attorney Vanessa R. Waldref, the chief federal law enforcement officer for the Eastern District of Washington, commended the efforts of the FBI Task Force in targeting individuals selling drugs within the boundaries of the Yakama Nation. “The United States Attorney’s Office will aggressively prosecute individuals who are selling drugs within the boundaries of the Yakama Nation. When dangerous narcotics enter our communities, we see an increase in violent crime. Holding individuals accountable who are dealing drugs and removing these narcotics from our streets will make all of our neighborhoods and communities safer and stronger.”
United States Attorney Waldref previously had announced in May 2022 that the FBI increased resources to further address violent crime in Yakima County, within the boundaries of the Yakama Nation. The purpose of this FBI Task Force is to disrupt gang activity, weapons trafficking, narcotics distribution, and to eradicate violent crime in Eastern Washington.
Following the sentencing, Yakima County Sheriff Robert Udell stated, “The FBI Task Force once again proved its effectiveness in combating illegal drugs and violent crime in Yakima County. In this case, FBI special agents and local law enforcement removed a career criminal from the Yakama Nation, making a huge impact on the safety of everyone living within the Yakama Nation.”
“Mr. Robledo knew he was distributing these potentially deadly drugs on the Yakama Indian Reservation” said Richard A. Collodi, Special Agent in charge of the FBI’s Seattle field office. “The work of our investigators and partners has resulted in a 10-year prison sentence and is another step in our effort at making the reservation a safer place.”
The case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
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South Carolina Man and Woman Plead Guilty to Hate Crime and Conspiracy for Bias-Motivated Armed Robberies Targeting Hispanic VictimsRead the Press Release
A South Carolina man and woman pleaded guilty in U.S. District Court in Columbia, South Carolina, to a federal hate crime, conspiracy and other charges.
According to court documents, beginning in January 2021 and continuing through February 2021, Gabriel Brunson, 20, and Sierra Fletcher, 33, both of Columbia, conspired to target people the defendants identified as Mexican or Hispanic at places of public accommodation, including gas stations and grocery stores. After identifying these targets, the defendants would rob their victims at gunpoint. The defendants targeted their victims because of their victims’ race and national origin.
Both defendants admitted their involvement in a Jan. 22, 2021, armed robbery in which the defendants followed their victims from a grocery store and restaurant to their home, and then robbed the victims at gunpoint, stealing cash and a cellphone. Fletcher admitted to being involved in several other robberies on Jan. 30, 2021, including a carjacking and a home invasion robbery of other Hispanic victims. The defendants admitted to using guns during their crimes.
The information to which Brunson and Fletcher pleaded guilty charges each of them with one hate crime for the Jan. 22, 2021, robbery of Hispanic victims. The information further charges Brunson and Fletcher with conspiracy, Hobbs Act robbery and carrying firearms in connection with those crimes.
“These defendants targeted Hispanic victims for violent acts of armed robbery because of their race, national origin and perceived vulnerability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No person should have to fear for their lives or property because of their race or national origin. The Justice Department will continue to vigorously prosecute those who commit bias-motivated crimes.”
“Prosecuting civil rights crimes is a priority for our office,” said U.S. Attorney Adair Boroughs for the District of South Carolina. “Federal law recognizes that crimes targeting people of a particular race or national origin is particularly egregious, and we stand ready to enforce the national hate crimes law here in South Carolina.”
“These were not crimes of opportunity. The defendants systematically robbed at gunpoint people whom they identified as Mexican or Hispanic,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Hate motived violence has no place in our country. The FBI will continue to aggressively investigate these crimes and promote a culture of safety and inclusivity in all the communities we serve.”
The plea agreements require both defendants to pay restitution to all victims. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI Columbia Field Office investigated the case, with assistance from the Richland County and Lexington County Sherriff’s Departments.
Assistant U.S. Attorneys Ben Garner and Brook Andrews for the District of South Carolina and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
Sex offender sentenced for illegally being in US…for the 9th timeRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old man illegally present in the United States has been sentenced for returning to the United States without permission, announced U.S. Attorney Alamdar S. Hamdani.
Elvis Cristian Hernandez-Ayala pleaded guilty June 1.
U.S. District Judge David S. Morales has now ordered Hernandez-Ayala to serve 37 months in federal prison. He was also on supervised release for a prior illegal re-entry conviction and also received 12 months for that violation, six months to be served consecutively. Not a U.S. citizen, he is expected to face removal proceedings following his total 43-month-term of imprisonment. At the hearing, the court heard additional evidence regarding Hernandez-Ayala’s frequent illegal re-entries and his troubling criminal history, including a prior conviction for sexual assault in which Hernandez-Ayala had raped another undocumented alien in a stash house.
On April 5, Hernandez-Ayala attempted to circumvent the Border Patrol (BP) Checkpoint near Falfurrias. Authorities found him and three others walking through the brush on a ranch.
The investigation revealed he had been previously removed from the United States eight times following his convictions such as felony possession of a controlled substance, driving while intoxicated and sexual assault.
Hernandez-Ayala will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Second Providence Man Admits to Assaulting U.S. Postal CarrierRead the Press Release
PROVIDENCE , RI – A Providence man on Tuesday admitted to a federal judge that he assaulted a U.S. Postal Service letter carrier purportedly because of a near collision between the man’s car with a mail delivery truck as they passed on a tightly packed Providence street, announced United States Attorney Zachary A. Cunha.
Branley Ferreras-Severino, 22, admitted that he repeatedly punched the letter carrier when the worker returned to his truck after having delivered packages to a nearby house. Ferreras-Severino admitted that he was standing by the mail truck and said, “You think it’s funny? You almost hit me. You wanna get popped?” The carrier took that to mean being shot with a gun.
Ferreras- Severino admitted that a passenger in his car, Ismael Colon-Pena, 19, of Providence, joined him in assaulting the Postal employee. The mail carrier attempted to fend off the attack and then ran from the area while dialing 911 for help. He provided investigators with the license plate number of the car driven by Ferreras-Severino, which they learned was registered to Ferreras-Severino’s mother.
As part of the investigation, U.S. Postal Service Inspectors obtained security videos from a nearby residence that depicted the attack. The Postal carrier identified both defendants from photographs shown to him by investigators.
Ferreras-Severino pleaded guilty on Tuesday to a charge of assault of a federal employee. He is scheduled to be sentenced on November 22, 2023. Colon-Pena pleaded guilty to the same charge on February 14, 2023. At sentencing on May 18, 2023, he was entered into the Deferred Sentencing Program for a term of 12 months.
As a result of their convictions, both men, Dominican Republic nationals, face deportation proceedings.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
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Savannah man convicted at trial for armed bank robberyRead the Press Release
SAVANNAH, GA: A Chatham County man has been convicted after trial for the robbery of a Savannah bank.
Omar Lockhart, 35, of Savannah, was found guilty after a two-day trial in U.S. District Court of Bank Robbery, a charge that subjects Lockhart to a statutory penalty of up to 20 years in prison, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
In addition, the jury found Lockhart guilty of Using, Carrying, or Possessing a Firearm in Relation to a Crime of Violence, which subjects him to an additional seven years in prison consecutive to the sentence for bank robbery. The jury also found Lockhart guilty of Possession of a Firearm by a Convicted Felon.
There is no parole in the federal system.
“Omar Lockhart terrorized the employees of a business by brandishing a gun during a robbery,” said U.S. Attorney Steinberg. “We commend our law enforcement partners for their outstanding work in safely bringing him to justice.”
As described at trial, Lockhart entered the Synovus Bank on Paulsen Street in Savannah on March 7, 2022, produced a pistol, and pointed it at a teller. He declared he was robbing the bank and handed grocery bags to the teller, demanding the money in her drawer. He then took the money and left the bank, telling everyone to “have a nice day.”
Savannah Police officers and the FBI later located Lockhart at a Savannah hotel where he had paid cash to rent a room and arrested him after a brief standoff with the SWAT team.
Lockhart remains in custody of the U.S. Marshals Service, and U.S. District Court Judge William T. Moore Jr. will schedule sentencing following completion of a pre-sentence investigation by U.S. Probation Services.
“No one should ever be terrorized physically or emotionally, like the victims in this armed robbery, simply because they work at a business or patronize that business,” said FBI Savannah RA Supervisory Senior Resident Agent Will Clarke. “We are committed to keep our communities safe from violence and seek justice for the victims of these crimes.”
The case was investigated by the Chatham County Police Department, the Savannah Police Department, and the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Bradley R. Thompson and John P. Harper III.
Rhode Island Attorney Pleads Guilty to Federal Wire Fraud, Tax Evasion ChargesRead the Press Release
PROVIDENCE, RI – Rhode Island personal injury attorney Peter P.D. Leach on Tuesday admitted to a federal judge that he conducted a Ponzi scheme to defraud clients by misappropriating over $500,000 in client settlement funds; he also admitted that he took evasive steps to conceal his ill-gotten gains from the IRS while failing to pay more than $250,000 in taxes, announced United States Attorney Zachary A. Cunha.
In pleading guilty to charges of wire fraud and tax evasion, Leach admitted that he forged client signatures and deposited client settlement checks into his attorney IOLTA account, using those funds to pay personal expenses and to repay earlier clients whose funds he had embezzled. To prolong his scheme, Leach repeatedly made false representations to clients about the status of their cases, and told them that he would pay their medical expenses and other bills with settlement funds he had received.
An investigation by the Rhode Island State Police Financial Crimes Unit and Internal Revenue Service - Criminal Investigation determined that Leach’s criminal activity resulted in losses to clients of more than $250,000.
Leach also admitted that from 2014-2019, he took multiple steps to conceal his gains from the IRS, including by making false statements on IRS forms regarding his assets; making false statements to IRS Revenue officers about his ability and willingness to pay his taxes and about his withdrawal of over $540,000 of cash from his IOLTA accounts for payment of personal expenses; and by transferring money from his client account to the account of family members to make personal payments.
The investigation determined that Leach failed to pay more than $250,000 in taxes.
Leach is scheduled to be sentenced on January 4, 2024. The defendant’s sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Sandra R. Hebert and Denise Barton.
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Repeat offender imprisoned for having sadomasochistic child pornography imagesRead the Press Release
GALVESTON – A 71-year-old Pearland resident has been sent back to prison for receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Dan McClure pleaded guilty May 17.
U.S. District Judge Jeffrey Brown has now ordered McClure to serve 262 and 240 months for the receipt and possession convictions, respectively. They will run concurrently for a total 262-month-term of imprisonment. At the hearing, the court heard evidence that McClure has had a sexual interest in children since the late 1980s. This led him to not only sexually abuse at least three minor females, but collect child pornography over the last two decades. McClure was further ordered to serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation began when authorities learned of an individual who had uploaded a child pornography image. They determined the owner of the IP address associated with it was a registered sex offender living in Pearland identified as McClure.
Law enforcement executed a search warrant at his residence and seized numerous devices, including one McClure had hidden in the ceiling. Forensic examination revealed two of the devices contained child pornography. They ultimately found a total of 831 images of child pornography, 736 of which contained prepubescent minors. Approximately 100 included sadomasochistic conduct.
McClure will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Recidivist Sex Offender Sentenced to 10 Years for Possession of Child PornographyRead 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 FBI Albuquerque Field Office, announced that Richard Crisman was sentenced to 10 years in federal prison. Crisman, 39, of Albuquerque, pled guilty to possession of child pornography on April 12, 2023. This was Crisman’s second conviction for possession of child pornography. He previously pled guilty to receipt of a visual depiction of minor engaged in sexually explicit conduct on Feb. 24, 2012, and was sentenced to 97 months in federal prison followed by 25 years of supervised release.
According to court documents, on April 7, 2021, during a routine field visit to Crisman’s residence in Rio Rancho, the US Probation Officer noticed an unauthorized USB device attached to his computer and confiscated the device. A search of the device and Crisman’s other devices revealed thousands of images and videos of children under the age of 18 engaging in sex acts. When questioned, Crisman admitted to downloading the Child Sexual Abuse Material.
Upon his release from prison, Crisman will be subject to lifetime supervised release.
The FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Anderson C. Hatfield is prosecuting the case.
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Readout from United States Attorney Alexander M.M. Uballez’s Violent Crime Listening Session with Social Justice AdvocatesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and his staff met with social justice advocates on August 1 at the Main Public Library to discuss violent crime. Baruch Campos, Program Director for Together for Brothers, Starlyn Brown and Karen Douglas from the League of Women Voters of Central New Mexico, and Jack Champagne, Program and Legal Director from the New Mexico Black Leadership Council, presented statements. This was the fourth listening session held with community members this summer.
United States Attorney Uballez opened the session by explaining that the Attorney General directed United States Attorney’s Offices to focus on addressing violent crime through intervention and outreach efforts. Participants described how crime at bus stops and on buses reflects a larger issue with guns, drugs and violent crime in Albuquerque. Others described how the negative perception of the city and law enforcement in the community and the media, whether accurate or inaccurate, produces an amount of fear and divisiveness which is disproportionate to the actual circumstances in the city. Participants agreed that Albuquerque Community Services (ACS) needed more support and resources so that they could expand their scope of work.
Speaking to the challenges facing local organizations who work with the unhoused population to address drugs and violence, Baruch Campos said “we’ve tried working with organizations like HopeWorks and organizations that specialize in [the unhoused population]. The issues there when we tried to do that, they’re just so overwhelmed. There’s a lot, there’s a huge population that is in need. When I think about that, it’s just like what is our city doing to support either those organizations doing that work or to support people directly?”
Jack Champagne agreed, saying “a lot of them are closing down too. I’ve noticed as we’ve kind of gotten on the tail end of COVID funding they just haven’t had any additional support and so they just couldn’t keep the doors open. So now we’re dealing with less of these organizations doing work and the remaining organizations are getting even more that they have to do.”
When asked what concerns participants have about safety and violence in the community, Starlyn Brown and Karen Douglas agreed that gun violence was a general concern, especially the increase in gun violence amongst youth. One participant shared that their family had been directly affected by gun violence and that the case remains unsolved, leaving the family without answers or closure.
When asked what issues the participants see that cause the divide between law enforcement and the community, Champagne observed “my perception of [APD] is that they’re kind of in a bit of a double bind in the sense that they are perceived as both over policing and under policing…. they’re responses are perceived as heavy-handed and occasionally they’re seen as not responding at all.” Champagne continued, “its very easy for a direct response to spiral out of control, especially if we are dealing with new police officers or police officers in a new community or police officers in a community that is not their own... we don’t have a ton police who know what it’s like to live in the [International] District for instance, so it’s very difficult for them to understand what an appropriate response is.”
“…we expected too much of APD.” Brown agreed. “It’s kind of like in the school system where the teachers are babysitters, they’re councilors, they have to, you know, deal with the parents.”
On August 18, 2023, USA Uballez, together with ACS and the Mayor’s Office, announced that the Department of Justice awarded a $2,050,000.00 grant to the Albuquerque Community Safety Department and its Violence Intervention Program. ACS and VIP will use the discretionary earmark funding to expand the scope of their programs. This will enhance service in violence prevention, intervention, and support within Albuquerque. In addition to the expansion of the existing work, this funding can help with exploring the establishment of an Office of Violence Prevention for the City of Albuquerque.
USA Uballez convened this listening session as part of the Department of Justice’s Project Safe Neighborhoods (PSN) Program. USA Uballez previously met with representatives from organizations that serve Albuquerque’s International District, community providers who serve the unhoused population, and addiction and treatment service providers. These sessions were an opportunity for the USA and his staff to recognize the vital role that these leaders, providers and advocates play in our community.
PSN is an evidence-based program proven 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. In New Mexico, the United States Attorney’s Office pursues a community violence intervention approach. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based intervention, prevention, and reentry programs for lasting reductions in crime.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The program’s emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
Providence Man Pleads Guilty to Federal Firearm and Drug Trafficking ChargesRead the Press Release
PROVIDENCE , RI – A Providence man admitted to a federal judge today that, in February 2021, while he was detained at the Adult Correctional Institutions (ACI) on unrelated charges, he arranged by telephone with his then girlfriend to locate and sell a firearm that he illegally possessed, and took steps to continue running his established drug trafficking business.
Ronald M. Kramer, 39, admitted that, while confined at the ACI, another inmate told him about an individual outside of the prison who might be interested in purchasing a firearm Kraemer was trying to get rid of. Kramer provided his girlfriend with that information, who then contacted and arranged to meet with the person to sell him the firearm. At that meeting, Kramer’s girlfriend also discussed and arranged to sell the gun buyer methamphetamine pills. Subsequently, she made at least two deliveries of pills to the buyer, totaling more than 244 grams. The person who took possession of the firearm and the drugs was, in fact, a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) undercover agent.
On April 1, 2021, law enforcement agents executed a search warrant on the girlfriend’s apartment. During the search agents located a safe containing $10,790 in cash which were proceeds of the sale of methamphetamine.
Kramer pleaded guilty today charges of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; and possession of a firearm by a prohibited person, announced United States Attorney Zachary A. Cunha.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
The matter was investigated by ATF, with the assistance of the Providence Police Department.
United States Attorney Cunha thanks the Rhode Island Department of Corrections, United States Postal Inspection Service, United States Marshals Service, Rhode Island State Police, and the Pawtucket, Providence, Cranston, and North Providence Police Departments for their assistance in the investigation of this case.
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Penfield Man Pleads Guilty to Perjury for Lying Under Oath in George Moses InvestigationRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Francis Cardinell, 77, of Penfield, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to perjury by materially inconsistent statements, which carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that George Moses, former chairman of the board of the Rochester Housing Authority, was convicted and sentenced to serve 78 months in prison for defrauding three organizations, including the Rochester Housing Charities. In April 2019, Cardinell, owner of Akwasasne Construction, a general contracting firm in Rochester, was interviewed as a witness in connection with the investigation. When asked about a $63,000 contract for boiler work to be performed by his company at the Rochester Housing Charities, Cardinell advised that he paid a cumulative amount of more than $20,000 in cash to Moses as kickbacks related to this contract. Cardinell also stated that he gave Moses $14,000 in cash out of a payment of $28,000; $7,500 in cash out of a payment of approximately $18,000; and another $3,500 in cash out of an $8,000 payment he received, for a total of approximately $25,000 in kickbacks. However, during the federal trial of George Moses, while under oath on the witness stand, Cardinell testified on cross-examination that he had lied about the kickback scheme and that he never made payments to Gorge Moses in exchange for contracts for his company.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Department of Housing and Urban Development, under the direction of Special Agent-in-Charge Christina D. Scaringi, and Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing is scheduled for December 18, 2023, before Judge Wolford.
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Passenger vessel operator convicted of operating illegal charter cruise businessRead the Press Release
GALVESTON, Texas - A 66-year-old Seabrook man has pleaded guilty to a violation of captain of the port order in connection with his illegal charter cruise business, announced U.S. Attorney Alamdar S. Hamdani.
Gordon Johnson admitted to operating the MV SPANISH PRINCESS without complying with an order of the highest ranking U.S. Coast Guard (USCG) officer in the Houston-Galveston area. Johnson made false statements to authorities claiming he did have paying passengers on his ship. He also instructed passengers, one of whom was a police officer, to inform USCG personnel they were not paying passengers.
“The Coast Guard Investigative Service (CGIS) is firmly committed to partnering with law enforcement agencies to identify and stop those who pose a hazard to the boating public,” said Special Agent in Charge Brian Jeanfreau, CGIS Gulf Region. “Ensuring mariners are fully qualified to safely operate passenger vessels is of upmost importance to the USCG.”
As part of his plea, Johnson also admitted he engaged in another scheme in which he took money from a couple for a trip that never occurred. The couple paid him $20,000 to transport them on the MV SPANISH PRINCESS to Roatan, Honduras, where they were going to live. The trip did not happen, and Johnson only returned $1,000 of their money.
U.S. District Judge Jeffrey Brown accepted the plea and set sentencing for Nov. 1. At that time, Johnson faces up to 10 years in prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeit the MV SPANISH PRINCESS.
Previously released on bond, Johnson was permitted to remain on bond pending that hearing.
The CGIS conducted the investigation. Assistant U.S. Attorney Adam L. Goldman prosecuted the case.
Owners of Military Contracting Companies Sentenced for Bid Rigging in TexasRead the Press Release
Two military contractors were sentenced today in the U.S. District Court for the Eastern District of Texas, Texarkana Division, for their roles in a bid-rigging scheme involving the maintenance and repair of military tactical vehicles in Texas. The multi-year scheme secured more than $17 million in taxpayer dollars.
Aaron Stephens, of Queen City, Texas, was sentenced to 18 months in prison and ordered to pay a criminal fine of $50,000. According to a plea agreement filed on Jan. 12, Stephens and his co-conspirators rigged bids on certain government contracts from May 2013 to January 2018 to give the false impression of competition and secure government payments. The conspirators submitted coordinated, higher-priced and non-competitive bids to ensure a designated company won each contract. Stephens and his co-conspirators rigged six different contracts for work performed for the Red River Army Depot in Texarkana, Texas. The projects included heavy military equipment work like refurbishing armor kits for military trucks and turrets for Humvees.
John “Mark” Leveritt, of Heath, Texas, was sentenced to six months in prison and ordered to pay a criminal fine of $300,000. According to a plea agreement filed on July 13, 2022, Leveritt engaged in the same conspiracy from May 2013 to April 2018 involving seven bids.
“Today’s sentences demonstrate our commitment to safeguarding the integrity of the military contracting process,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We will hold accountable those who enrich themselves at the expense of our armed forces and ultimately the public.”
“Servicing heavy military vehicles and equipment are critical to the functioning of the U.S. military and its mission, so anticompetitive practices such as those used by the defendants in this case harm the military, taxpayers, and legitimate businesses alike,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The Eastern District of Texas will vigorously prosecute those who compromise the integrity of the procurement process for greed and personal gain.”
“This sentencing should stand as a deterrent to those who would engage in fraud and corruption for personal gain and is a testament to the thorough and professional effort of our investigative partnerships with the United States Attorney’s Office and the FBI,” said Acting Special Agent-in-Charge Michael Curran of the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of the U.S. Government and the U.S. Army.”
“Today’s sentences are the result of the tireless work and dedication of multiple agencies to hold these individuals accountable for conspiring to defraud the United States government,” said Special Agent in Charge Chad Yarbrough of the FBI Dallas Field Office. “The public can rest assured that we remain committed to aggressively pursuing anyone that uses government programs for their own personal gain.”
The division’s Washington Criminal II section, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI Dallas Field Office investigated the case
Trial Attorneys Jillian Rogowski, Daniel Loveland, and Aidan McCarthy of the Antitrust Division’s Washington Criminal II Office prosecuted the case.
In November 2019, the Justice Department created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force.
Omaha Man Sentenced to 152 Months for Possession of Methamphetamine and FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that Eric K. Rose, 36, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Judge Brian C. Buescher sentenced Rose to a total of 152 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On January 26, 2022, Rose was staying at the Towne Place Suites Marriott in Omaha. Omaha police narcotics detectives, knowing he was staying there, served a search warrant on his room. Inside the room, officers located two ounces of methamphetamine, a drug ledger with “Rose” written on it, 15 live 9mm bullets, $3,000 cash, baggies, and a digital scale with methamphetamine residue. The officers also searched an SUV in the parking lot and located a Smith & Wesson SD40 handgun, a loaded magazine for the gun, and $635 cash. Rose admitted the methamphetamine and gun were his and he confessed to dealing methamphetamine. In particular, he asked his wife to bring the gun to the hotel because his methamphetamine supplier was looking to collect a drug debt.
The $3,635 constitutes drug proceeds or was used to facilitate Rose’s drug trafficking and that has been forfeited to the United States.
This case was investigated by the Omaha Police Department.
New Rochelle Man Charged with Bronx ShootingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Steven A. Nigrelli, the Acting Superintendent of the New York State Police (“NYSP”), announced the unsealing of a Complaint charging TYRIEK SKYFIELD with firing two shots at a victim on a residential street in the Bronx, injuring the victim. SKYFIELD will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “As alleged, Tyriek Skyfield fired two bullets at another individual on a residential street in the Bronx. One of those bullets struck the victim, injuring him. Thanks to the swift action of our law enforcement partners, Skyfield is now being held accountable for his alleged violent actions.”
NYSP Acting Superintendent Steven A. Nigrelli said: “This case sends a clear message that senseless acts of gun violence will not be tolerated, and justice will prevail. Working together with all levels of law enforcement, we can and are making a difference in the fight to end gun violence in our communities. I commend our New York State Police investigators, the U.S. Attorney’s Office, and the NYPD for their swift and diligent work on this case.”
According to the allegations in the Complaint:[1]
On Saturday, July 22, 2023, shortly before 10:00 p.m., SKYFIELD fired two gunshots at another individual (“Victim-1”) in the vicinity of Needham Avenue in the Bronx.
Surveillance video captured SKYFIELD brandishing a handgun at Victim-1 seconds before firing one of the shots. A still image from the surveillance footage is below:
One of the gunshots struck Victim-1 in the foot.
After firing the shots at Victim-1, SKYFIELD fled the scene on foot and was picked up outside a nearby building by a white BMX X6 SUV a few minutes later.
SKYFIELD later traveled to a club in Queens as a passenger in the same car. Video surveillance footage from the club showed SKYFIELD presenting proof of identification and entering the club:
The club’s identification records, in combination with video surveillance footage, indicated that the individual seen entering the club in the above still images was SKYFIELD.
After canvassing the scene of the shooting, NYPD officers recovered a shell casing from one of the gunshots in a nearby yard.
SKYFIELD was not permitted to possess ammunition because of prior felony convictions, one of which was a conviction for an armed robbery.
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SKYFIELD, 31, of New Rochelle, New York, is charged with possession of ammunition after a felony conviction, which carries a maximum sentence of 15 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 NYSP and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York and thanked the New York City Police Department for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Z. Margulies is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Skyfield ComplaintNew Castle Resident Pleads Guilty to Trafficking Fentanyl and CocaineRead the Press Release
PITTSBURGH, PA – Donald Snowden was convicted of trafficking fentanyl and cocaine, United States Attorney Eric G. Olshan announced today.
Snowden, age 32 of New Castle, Pennsylvania, pled guilty to conspiring to distribute fentanyl and cocaine, between May 2021 and October 2022, and to distributing fentanyl, on August 31, 2022. Snowden pled guilty before United States District Judge Arthur J. Schwab. Judge Schwab scheduled sentencing to occur on January 17, 2024, at 9:00 a.m.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, and the Pennsylvania State Police conducted the investigation resulting in the convictions in this case.
Nageezi Man Sentenced to 17 and a Half Years in Prison for Second-Degree MurderRead 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 FBI Albuquerque Field Office, announced that Evan Haceesa was sentenced to 17 years six months in prison. Haceesa, 29, of Nageezi, New Mexico, and an enrolled member of the Navajo Nation, pled guilty to second-degree murder on March 22, 2023.
According to court documents, on Aug. 28, 2022, following a familial argument, Haceesa attacked a defenseless Jane Doe, who was his girlfriend of ten years and the mother of his two children. Haceesa attacked her at his father’s residence in Nageezi on the Navajo Nation. Haceesa continuously punched Jane Doe in the face until she lost consciousness and then kicked her lifeless body several times. After the initial attack, which lasted approximately 10-15 minutes, Haceesa retrieved a wheel barrel and placed Jane Doe’s body in it before he went inside to sleep. An officer from the Navajo Police Department responding to a report of domestic violence arrived on scene later that night and found Jane Doe unclothed and unresponsive, still in the wheel barrel.
Jane Doe was airlifted to the San Juan Regional Medical Center in Farmington, New Mexico, where she immediately underwent surgery and had to be connected to a ventilator to assist breathing. Jane Doe’s injuries included, among other things, significant blood and air in her abdomen, a perforated small intestine, bleeding in and around the small intestine, a bilateral nose fracture, and partially collapsed lungs. Though it initially appeared that Jane Doe might eventually recover, her condition worsened over the course of a week, and after two additional surgeries she succumbed to her injuries on Sept. 8, 2022.
Upon his release from prison, Haceesa will be subject to 5 years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Murray Man Charged with Possessing Molotov CocktailRead the Press Release
Paducah, KY – On August 8, 2023, a federal grand jury returned an indictment charging a Murray, Kentucky man with possessing a Molotov cocktail, a destructive device.
United States Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to the indictment, on September 10, 2022, in Calloway County, Kentucky, Jack Thomas Epperson, 20, possessed a Molotov cocktail, a destructive device that was not registered to him in the National Firearms Registration and Transfer Record.
Epperson made his initial court appearance on August 21, 2023, before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Epperson faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF Paducah Satellite Office is investigating the case, with assistance from the Kentucky State Police, Murray Police Department, and Murray State University Police Department.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
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Mobile Man Sentenced to More Than Seven Years in Prison for Fraudulent PPP Loan Application and Fentanyl DistributionRead the Press Release
MOBILE, AL – A Mobile man was sentenced to a total of 85 months in prison for committing wire fraud in connection with a false PPP loan application and conspiring to distribute fentanyl while on federal pretrial release conditions.
According to court documents, in April 2021, Kentarius Williams, 31, submitted a fraudulent application to the Small Business Administration (“SBA”) requesting a Paycheck Protection Program (“PPP”) loan in the amount of $20,833. In his PPP loan application, Williams falsely claimed that he was the sole proprietor of a nonexistent “cleaning service” business in need of relief due to the COVID-19 pandemic. Williams submitted a fake tax schedule purporting to show more than $100,000 in business income and monthly payroll expenses in excess of $8,000. In submitting the fraudulent application to the SBA, Williams caused a wire communication to travel from the SBA’s computer servers in Virginia to a bank’s computer servers in Oregon, in violation of the federal wire fraud statute.
Additionally, Williams admitted that from at least September 2022 through February 2023, he conspired with other people to distribute fentanyl. On several occasions, narcotics agents used confidential informants to conduct controlled purchases of fentanyl pills from Williams. Those transactions—including sales of fentanyl that Williams made while he was on pretrial release conditions in his federal wire fraud case—were videotaped. Agents executed a search warrant at Williams’s apartment in Mobile in February 2023, seizing fentanyl and oxycodone pills, among other things. Agents also searched Williams’s cell phone, which contained numerous text and Instagram messages in which he discussed his sales of fentanyl and other drugs. For example, in January 2023, Williams wrote that he “got rich off” sales of fentanyl pills, which he said he could obtain for “dirt cheap.”
United States District Judge Terry F. Moorer sentenced Williams to serve 14 months in prison for the wire fraud, and 71 months in prison for the fentanyl distribution conspiracy, ordering the prison terms to run consecutively to one another. In addition to the 85-month total prison term, Judge Moorer ordered Williams to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Williams to pay $200 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation, SBA Office of Inspector General, Treasury Inspector General for Tax Administration, and Mobile Police Department investigated the wire fraud case. The Drug Enforcement Administration investigated the drug case.
Assistant U.S. Attorneys Kasee Heisterhagen and Lydia Lucius prosecuted the wire fraud case on behalf of the United States. Assistant U.S. Attorney Justin Roller prosecuted the drug case on behalf of the United States.Mobile Man Sentenced for Fentanyl DistributionRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 41 months in prison for conspiring to distribute fentanyl.
According to court documents, Eddie Rembert, 52, admitted that from at least September 2022 through February 2023, he conspired with other people to distribute fentanyl. On several occasions, narcotics agents used confidential informants to conduct controlled purchases of fentanyl pills from Rembert. Those transactions were videotaped. Agents executed a search warrant at the apartment of one of Rembert’s coconspirators in Mobile in February 2023, seizing fentanyl and oxycodone pills, among other things. Agents also searched the coconspirator’s cell phone, which contained numerous text messages from Rembert in which he discussed his sales of fentanyl pills.
In addition to the 41-month prison term, United States District Judge Terry F. Moorer ordered Rembert to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Moorer ordered Rembert to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Miami Woman Pleads Guilty to Fentanyl Charge Following Traffic Stop in JamestownRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Elina Martinez, 65, of Miami, FL, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute 40 grams or more of fentanyl, which carries mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
On December 7, 2022, a Jamestown Police Officer conducted a traffic stop after observing Martinez’s vehicle, bearing a Missouri license plate, committing a number of traffic violations. Martinez, who produced a Florida driver’s license and car rental paperwork to the officer, gave consent for the officer to search the car. Officers opened the hood of the car and observed an “aftermarket” car battery that appeared to be too large for the car and tampered with due to the presence of an unknown adhesive. Officers cut into the battery and found a plastic bag containing a large quantity of blue pills. The defendant was detained, and the car was towed for a more extensive search. Officers later searched the car battery and the car and discovered a plastic bag containing approximately 9 lbs. 13 oz. of blue pills bearing the markings “m” and “30.” The pills contained 4,389 grams of fentanyl.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Chautauqua County Sheriff Office, under the direction of Sheriff James Quattrone, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for December 8, 2023, at 12:30 p.m. before Judge Arcara.
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Mexican Man Sentenced for Methamphetamine TraffickingRead the Press Release
Acting United States Attorney Susan Lehr announced that Jose Emmanuel Hernandez-Gomez, 30, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for trafficking methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hernandez-Gomez to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
On May 8, 2021, a York County Sheriff’s deputy stopped a vehicle containing 27 pounds of methamphetamine. As part of the investigation, it was determined that the methamphetamine was to be delivered to an address in Omaha. The Drug Enforcement Administration and Omaha Police Department assisted in transporting the vehicle to Omaha, where an undercover officer then went to the address to deliver the methamphetamine. Hernandez-Gomez came out of the residence and gave the undercover officer $6,000 and took possession of the methamphetamine. Hernandez-Gomez was then immediately arrested.
This case was investigated by the York County Sheriff’s Office, DEA, and the Omaha Police Department.
Members of Charlotte-Based Auto Theft Ring Are Charged in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed in federal court today, charging five individuals with stealing dozens of high-end vehicles worth millions of dollars from dealerships located across the United States, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
The indictment charges Dewanne Lamar White, 43, of Sumter, South Carolina, Garyka Vaughn Bost, 24, of Denver, North Carolina, Kevin Ja’Coryen James Fields, 27, of Charlotte, Hosea Fernandez Hampton, Jr., 25, of Charlotte, and Reginald Eugene Hill, 23, of Charlotte, with conspiracy to transport, possess, and sell stolen vehicles in interstate commerce, and interstate transportation of a stolen motor vehicle. White, Fields, and Hampton are also charged with possession of a stolen motor vehicle.
According to allegations in the indictment, from 2021 to 2023, the defendants engaged in a conspiracy to steal luxury vehicles worth millions of dollars from dealerships in North Carolina, South Carolina, Georgia, Florida, Tennessee, Kentucky, Alabama, Mississippi, Louisiana, Indiana, Ohio, Pennsylvania, New Jersey, New York, and Arizona. The indictment alleges that the co-conspirators transported the stolen vehicles back to Charlotte and sold them locally at prices well below market value. The indictment further alleges that, to maximize profits, the co-conspirators stole luxury vehicles made by Bentley, BMW, Cadillac, Land Rover, Porsche, and Mercedes-Benz, and other expensive models from Chevrolet, Dodge, Ford, and other manufacturers.
According to allegations in the indictment, the defendants executed the thefts in a number of ways. In some instances, the co-conspirators visited dealerships posing as customers interested in purchasing the vehicles. After pretending to test drive or inspect the vehicles, the co-conspirators would allegedly swap the vehicles’ key fobs with similar ones, and later use the stolen key fobs to steal the vehicles. Other times, the indictment alleges that the co-conspirators employed methods like “smash and grab” thefts, where they would break into dealerships and locate keys to the high-end models, or break open lockboxes containing keys to luxury vehicles, and then drive the vehicles off the lot. The indictment alleges that Bost, Fields, and Hill often served as drivers in the conspiracy, and White and Hampton frequently paid them and other drivers for their work in the scheme. The indictment further alleges that on several occasions the defendants and their co-conspirators stole multiple vehicles simultaneously, resulting in hundreds of thousands of dollars in losses.
According to allegations in the indictment, once the stolen vehicles were taken off the dealership lots, the defendants avoided law enforcement detection by removing the GPS navigation and tracking systems from the stolen vehicles, attaching fictitious dealer tags or stolen license plates on the vehicles, and replacing the vehicles’ authentic Vehicle Identification Numbers, among other things.
In announcing the federal indictment, U.S. Attorney King said, “We will not tolerate brazen theft schemes that cost businesses and consumers millions of dollars. I want to thank our federal and local law enforcement partners for their incredible work with this ongoing investigation that has led to today’s charges.”
“Stopping schemes like this is critical as it not only protects businesses, but also it helps protect our economy,” said Special Agent in Charge Martinez. “We worked closely with a number of our law enforcement partners to shut down this multimillion-dollar operation and bring the perpetrators to justice and I am happy with the success of the operation.”
“No matter how complicated an interstate theft ring may seem, the FBI is poised to uncover, dissect, and dismantle the scheme,” said Special Agent in Charge DeWitt. “We are committed to working with our partners to ensure justice is served.”
The charge of conspiracy to transport, possess, and sell stolen vehicles in interstate commerce carries a maximum penalty of five years in prison and a $250,000 fine. The charge of interstate transportation of a stolen motor vehicle and possession of a stolen vehicle each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
U.S. Attorney King thanked HSI, FBI, and CMPD for their investigation of the case
and recognized the contributions of the York County South Carolina Sheriff’s Office and many other state and local law enforcement partners that contributed to the investigation.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Marion County Man Convicted of Human TraffickingRead the Press Release
TYLER, Texas - A Jefferson, Texas man has been convicted of federal sex trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Corey Johnson, 40, pleaded guilty to one count of conspiracy to commit sex trafficking today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Johnson engaged in trafficking at least three victims between March 2020 and September 2020 in Texas, Louisiana, Tennessee, New York, and California. Johnson transported the victims and arranged transportation for the victims between various hotels and motels to perform commercial sex acts. Johnson recruited the victims by social media and threatened to harm them if they did not perform commercial sex acts for commercial sex customers. Johnson obtained customers by purchasing and posting advertisements on various internet websites.
Under federal statutes, Johnson faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case was investigated by Texas DPS Criminal Investigations Division. This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Robert Austin Wells, with assistance from Trial Attorney Julie Pfluger of the Justice Department’s Civil Rights Division, Human Trafficking Prosecution Unit.
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Madison Man Sentenced to 7 Years for Robbing Two Madison BusinessesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Scott C. Tolliver, 43, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for two counts of robbery. The prison term will be followed by 3 years of supervised release. Tolliver pleaded guilty to these charges on May 23, 2023.
On April 15, 2022, at around 5:25 pm, Tolliver robbed the McDonald’s Restaurant on Regent Street in Madison. During the robbery, Tolliver approached the cash register wearing all black, sunglasses, and a medical-style facemask, pointed a black handgun at the employee, and demanded all of the money in the register. After receiving cash from the employee, Tolliver fled the restaurant on a bicycle.
Later that same night, at around 8:53 pm, Tolliver robbed the Walgreens on East Campus Mall in Madison. During that robbery, Tolliver approached the cash register wearing a black ski mask and dark clothing, showed the employee a black handgun in his waistband, and told her to give him all of the money and to not run. After receiving the cash from the register, Tolliver fled the store on the same bicycle.
Madison Police Department officers were able to identify Tolliver as the robber of both businesses after reviewing surveillance video from McDonald’s, Walgreens, and city street cameras. Officers were able to track Tolliver leaving both businesses and riding his bicycle back to his apartment in Madison. When officers searched Tolliver’s apartment, they located the bicycle and clothing consistent with those worn by the robber.
At the time of the robberies, Tolliver was on active state supervision for a prior felony conviction. He was also out on bond for a pending felony state case.
At sentencing, Judge Conley highlighted Tolliver’s lengthy criminal history including prior convictions involving weapons, domestic violence, child abuse, batteries in prison, and stalking. He said that Tolliver has repeatedly proven to be a danger to the community with instances of violence. Judge Conley noted that the victims in this case suffered emotional distress during the robberies and the long-term impact on them is not fully knowable at this time.
The charges against Tolliver were the result of an investigation conducted by the Madison Police Department and Federal Bureau of Investigation. The Dane County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Awards Almost $70 Million in Grant Funding for Support Services for American Indian and Alaska Native Victims of CrimeRead the Press Release
The Justice Department announced today the awarding of $69,632,900 through 212 awards in the Department’s Tribal Victim Services Set-Aside (TVSSA) program, which provides support to American Indian and Alaska Native communities across the country to enhance services for victims of crime, consistent with the requirements of the Victims of Crime Act.
These awards will fund a wide range of services for crime victims, from counseling and civil legal assistance to emergency housing and Tribal wellness ceremonies. Of these TVSSA awards, almost $22 million will go to 67 Tribal communities in Alaska.
“The Justice Department recognizes that Alaska Native families and communities have endured persistently high levels of violence and that women and girls have borne the brunt of that violence,” said Attorney General Merrick B. Garland. “We are here today to reaffirm the Justice Department’s commitment to working across the federal government and with Alaska Native communities to meet these urgent challenges.”
Additionally, earlier today, the Justice Department’s Office on Violence Against Women (OVW) granted $774,790 in Sexual Assault Services Formula Grant Program (SASP) awards for Alaska Native communities.
Attorney General Garland traveled to Anchorage and Galena, Alaska, where he met with Alaska Native community leaders from several villages. The Attorney General was joined by Sen. Lisa Murkowski in visiting with village leaders in Galena, and additionally joined by Rep. Mary Peltola at a roundtable in Anchorage with representatives of Native Tribal organizations to discuss public safety issues in Alaskan Native Villages.
The Department grants are especially meant to help Alaska Native communities and remotely located tribes meet the victim service challenges that they face. OVC recently piloted a new approach to make it easier to access grants recognizing some challenges posed by limited human and technological resources. This pilot was implemented in direct response to requests from Alaska Native villages who needed in-person support with grant applications. Grant managers from OVC’s Tribal Division were deployed to Alaska and spent 32 days on the ground meeting with more than two dozen Alaska village grant applicants and helped with such tasks as creating program designs and project budgeting.
The Department has granted hundreds of awards since the Tribal Victim Services Set-Aside program was launched five years ago, and they have helped provide services to thousands of crime victims. More than 88,000 victims have received direct services since 2020. These funds are being used to serve victims of domestic violence, sexual assault, arson, burglary, elder abuse, fraud, theft, kidnapping, as well as sex and labor trafficking. The Office for Victims of Crime (OVC)’s Tribal Division has worked closely with Tribal leaders and Tribal advocates to make sure this program is as responsive as possible to the needs of Tribes.
These awards and the Attorney General’s trip exhibit the continued efforts of the Justice Department to uplift Tribal communities and ensure they have the resources they need to maintain public safety and security.
Justice Department Announces Results of Nationwide COVID-19 Fraud Enforcement ActionRead the Press Release
The Justice Department announced today the results of a coordinated, nationwide enforcement action to combat COVID-19 fraud, which included 718 enforcement actions – including federal criminal charges against 371 defendants – for offenses related to over $836 million in alleged COVID-19 fraud.
“The Justice Department has now seized over $1.4 billion in COVID-19 relief funds that criminals had stolen and charged over 3,000 defendants with crimes in federal districts across the country,” said Attorney General Merrick B. Garland. “This latest action, involving over 300 defendants and over $830 million in alleged COVID-19 fraud, should send a clear message: the COVID-19 public health emergency may have ended, but the Justice Department’s work to identify and prosecute those who stole pandemic relief funds is far from over.”
The announcement was made by Deputy Attorney General Lisa O. Monaco at a roundtable meeting of senior Justice Department officials, law enforcement partners, and Office of Inspector General (OIG) executives. Deputy Attorney General Monaco also announced the launch of two additional COVID-19 Fraud Enforcement Strike Forces: one at the U.S. Attorney’s Office for the District of Colorado, and one at the U.S. Attorney’s Office for the District of New Jersey. These two strike forces add to the three strike forces launched in September 2022 in the Eastern and Central Districts of California, the Southern District of Florida, and the District of Maryland.
“The law enforcement actions announced today reflect the Justice Department’s focus – working with our law enforcement partners nationwide – on bringing to justice those who stole from American businesses and families at a time of national emergency,” said Deputy Attorney General Monaco. “The two new Strike Forces launched today will increase our reach as we continue to pursue fraudsters and recover taxpayer funds, no matter how long it takes.”
At the meeting, Michael C. Galdo, Acting Director of COVID-19 Fraud Enforcement, detailed the results of the three-month coordinated law enforcement action that took place from May through July 2023, which included criminal, civil, and forfeiture actions. More than 50 U.S. Attorneys’ Offices, including the COVID-19 Fraud Enforcement Strike Forces, the Justice Department’s Criminal and Civil Divisions, and more than a dozen law enforcement and OIG partners worked together to conduct the sweep.
“I applaud the hard work of our prosecutors around the country,” said Acting Director Galdo. “However, this announcement is not a victory lap. Our mission is not complete. We know from our investigative partners that identifying those who committed pandemic relief fraud and recovering stolen funds is difficult work. But the Justice Department, including our strike forces, U.S. Attorneys’ Offices, and the Criminal and Civil Divisions, is committed to using our criminal, civil, and forfeiture tools to hold these fraudsters accountable.”
As part of the effort, 718 law enforcement actions occurred, including criminal charges, civil charges, forfeitures, guilty pleas, and sentencings, with a combined total actual loss of more than $836 million. Criminal charges were filed against 371 defendants, and 119 defendants pleaded guilty or were convicted at trial during the sweep. Over $57 million in court-ordered restitution was imposed. 117 civil matters occurred during the sweep, with over $10.4 million in judgments. Prosecutors worked with law enforcement to secure forfeiture of over $231.4 million.
As part of the announcement, Acting Director Galdo said that 63 of the defendants had alleged connections to violent crime, including violent gang members also accused of using pandemic funds to pay for a murder for hire. Twenty-five defendants have alleged connections to transnational crime networks.
Many of the cases in the enforcement action involve charges related to pandemic unemployment insurance benefit fraud and fraud against the two largest pandemic Small Business Administration programs: the Paycheck Protection Program and Economic Injury Disaster Loans. Additional matters involved pandemic healthcare billing fraud, fraud against the Emergency Rental Assistance program, and fraud committed against the IRS Employee Retention Credit program (ERC), a refundable tax credit for businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. IRS Criminal Investigations (IRS-CI) worked with the California Strike Force and the U.S. Attorney’s Office for the District of New Jersey to bring multimillion dollar ERC fraud cases during the enforcement action.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force (CFETF) 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.
The COVID-19 Fraud Enforcement Action cases were prosecuted by the following Justice Department entities: Criminal Division’s Fraud Section; Civil Division’s Fraud Section, Consumer Protection Branch; and by the following U.S. Attorneys’ Offices: Northern District of Alabama, Southern District of Alabama, Arizona, Eastern District of California, Central District of California, Northern District of California, Southern District of California, Colorado, Washington, D.C., Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Middle District of Georgia, Northern District of Georgia, Southern District of Georgia, Southern District of Indiana, Idaho, Northern District of Illinois, Northern District of Iowa, Eastern District of Kentucky, Western District of Kentucky, Western District of Louisiana, Massachusetts, Maryland, Eastern District of Michigan, Western District of Michigan, Eastern District of Missouri, Western District of Missouri, Northern District of Mississippi, Maine, Montana, Eastern District of North Carolina, Western District of North Carolina, New Hampshire, New Jersey, Nevada, Northern District of New York, Northern District of Oklahoma, Northern District of Ohio, Southern District of Ohio, Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, Puerto Rico, Rhode Island, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Western District of Texas, Eastern District of Virginia, Western District of Virginia, Eastern District of Washington, Western District of Washington, Eastern District of Wisconsin, and Northern District of West Virginia.
The cases were investigated by the following agencies: FBI; U.S. Secret Service; IRS-CI; Defense Criminal Investigative Service; Homeland Security Investigations; U.S. Postal Inspection Service; Army Criminal Investigations Division; Food and Drug Administration’s Office of Criminal Investigations; the Diplomatic Security Service; and the Offices of Inspectors General from the Small Business Administration, Department of Labor, Department of Homeland Security, Federal Deposit Insurance Corporation, Department of Health and Human Services, Department of Veterans Affairs, Federal Housing Finance Agency, Federal Reserve Board, Social Security Administration, the Special Inspector General for Pandemic Relief, Treasury, and the Treasury Inspector General for Tax Administration.
OCDETF Fusion Center and OCDETF’s International Organized Crime Intelligence and Operations Center, the Pandemic Response Accountability Committee, the Financial Crimes Enforcement Network, and the National Unemployment Insurance Fraud Task Force provided key support.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.