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11 August 2023
Methamphetamine Trafficking Organization IndictedRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of a 17-count indictment charging Clemente Betancourt (27), Estevan Betancourt (18), Larry Lee Woodard, Jr. (28), Adonis Bonilla (28), Omar Mejia (28), Jesse Leahy (47), and Alexander Perez (29), all residents of Bradenton, with conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine. If convicted on all counts, each faces a maximum penalty of life in federal prison. The indictment also notifies the defendants that the United States intends to forfeit any and all property, which is alleged to be traceable to proceeds of the offenses.
According to the indictment, between March 2022 and May 2023, the above-named individuals were involved in a conspiracy to distribute more than 50 grams of methamphetamine in Bradenton and throughout Manatee County. In addition to the conspiracy charges, the defendants are charged with narcotics transactions on specific dates.
At the time of the arrests, a search warrant was executed at Clemente and Estevan Betancourt’s house in Bradenton. As a result of that search, three firearms, approximately one pound of methamphetamine, 22 cellphones, cocaine, and marijuana were seized.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.,
This case was investigated by a joint Organized Crime Drug Enforcement Task Force (OCDETF) which includes Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. The Central Florida Gulf Coast High Intensity Drug Trafficking Area (HIDTA) which includes the Bradenton Police Department, the Manatee County Sheriff’s Office, the North Port Police Department, the United States Coast Guard Investigative Service, the Palmetto Police Department, the Sarasota Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives also assisted with the investigation. This case will be prosecuted by Assistant United States Attorneys Maria Guzman, David Sullivan, and Suzanne Nebesky.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
McCurtain County Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cedric Jamara Cherry, of Idabel, Oklahoma, age 42, pleaded guilty to one count of Felon in Possession of a Firearm and Ammunition.
The Indictment alleged that on March 15, 2023, within the Eastern District of Oklahoma, Cherry possessed a firearm and ammunition, in and affecting interstate commerce, despite having been previously convicted of a felony. Under federal law, individuals previously convicted of a crime punishable by imprisonment for more than one year are prohibited from possessing firearms or ammunition.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Cherry was remanded to the custody of the U.S. Marshal pending sentencing.
Maryland Man Sentenced to 18 Years in Prison for Fatal Stabbing Inside Local D.C. NightclubRead the Press Release
WASHINGTON – Michael Dolson, 37, of Upper Marlboro, Maryland, was sentenced today to 18 years in prison for the March 14, 2022 stabbing death of Kenneth Thomas, Jr., 42, of Silver Spring Maryland, announced United States Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). Mr. Thomas was a Howard University graduate with a Masters of Divinity and a licensed Minister.
Dolson pleaded guilty to voluntary manslaughter while armed on March 24, 2023, in Superior Court in the District of Columbia. In addition to the prison term, Superior Court Judge Rainey Brandt ordered five years of supervised release.
According to the government’s evidence, on Sunday, March 13, 2022, Dolson and his companion went to the Cloud Lounge at 1919 9th St., NW. The couple was seated at the back of the establishment, away from other patrons, ordered cocktails and smoked marijuana, despite the club’s rule against the consumption of marijuana on the property. Kenneth Thomas, Jr., approached the couple and asked to sit at the table with them, which he did for an hour and a half. As the evening wore on, Dolson became annoyed with the victim and gestured for Thomas to sit elsewhere. Thomas did not oblige so Dolson slashed Thomas on the face with a hidden knife he brought into the nightclub. Thomas stood up and Dolson lunged at him, stabbing him in the chest. Dolson and his companion then left the club. Thomas was taken to the hospital and pronounced dead. Dolson was later arrested on April 5, 2022, and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels, Victim/Witness Advocate Jennifer Clark and Victim Witness Service Coordinator, Katina Adams-Washington. Finally, they commended the work of Assistant U.S. Attorney Sarah C. Santiago, who investigated and prosecuted the case.
Man and Woman Found Guilty of Serious Felony Crimes Which Occurred Within the Boundaries of the Yakama Nation Indian ReservationRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a jury returned verdicts on August 11, 2023 following the trial of Sundron Larsell Miller (age 37) and Paula Eulojia Cantu-Lopez (age 27), of White Swan, Washington. Miller was found guilty of carjacking, brandishing a firearm during and in relation to a crime of violence, being a felon in possession of a firearm, and assault with intent to commit murder. Cantu Lopez was found guilty of carjacking, brandishing a firearm during and in relation to a crime of violence, and assault resulting in serious bodily injury.
Evidence introduced at trial established that Miller and Cantu-Lopez were romantically involved. On December 28, 2021, the victim was with both Miller and Cantu-Lopez, driving in the area of Fort Simcoe Road on the Yakama Reservation. The victim was driving her pickup, and Miller began assaulting Cantu-Lopez. When the victim tried to intervene, both Miller and Cantu-Lopez turned and assaulted the victim, who is an enrolled member of the Yakama Nation.
During the assault, the victim was pulled out of her own truck, and Miller attempted to shoot the victim with her own rifle, which had been on the backseat of the truck. Miller pointed the rifle at the victim’s face, and the victim saw Miller pull the trigger and heard a “clicking” sound. Fortunately, the rifle was unloaded. After attempting to kill the victim, Miller and Cantu-Lopez beat the victim, threw her in the back of the truck, and transported her to a residence in White Swan. Miller then got into the driver’s seat of the victim’s truck, and while Miller drove away, Cantu-Lopez sat in the back seat and held the victim by her hair. After arriving at a residence, the victim was again beaten by Miller and Cantu-Lopez.
Ultimately, and with an incredible amount of bravery, the victim was able to break away and run for her life. Officers with the Yakama Nation Police Department quickly responded to the scene and collected evidence of the crimes. The Federal Bureau of Investigation also assisted in the investigation.
Chief United States District Judge Stanley A. Bastian presided over the trial, which began on August 7, 2023. Sentencing in this matter is set for November 15, 2023.
“I am incredibly grateful for the courage of victims – many of whom have suffered generations of trauma – who are willing to engage with law enforcement to seek justice,” stated U.S. Attorney Waldref. “The agents, officers, and prosecutors, who investigated and tried this case have dedicated their careers to protecting members of our community. Today’s result would not be possible but for the joint efforts of the Yakama Nation Tribal Police Department, the FBI, the United States Attorney’s Office and the community. By working together, we can continue to build trust and keep our communities safe and strong.”
“The sudden violence displayed in this case is horrifying,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “The subjects assaulted the victim multiple times, took her truck, and attempted to use her own firearm against her. The FBI and our tribal partners are committed to combatting violent crime and holding those responsible accountable.”
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Michael Murphy and Christopher Bridger, Assistant U.S. Attorneys for the Eastern District of Washington.
1:22-CR-02041-SAB
Man Pleads Guilty to Sending Bomb Threat to Arizona State Election OfficialRead the Press Release
A Massachusetts man pleaded guilty today to sending a communication containing a bomb threat to an election official in the Arizona Secretary of State’s office.
“Americans who serve the public by administering our voting systems should not have to fear for their lives simply for doing their jobs,” said Attorney General Merrick B. Garland. “As this case demonstrates, the Justice Department is investigating and prosecuting violations of federal law against election officials and election workers. Only by protecting those who administer the election process can we ensure that the right to vote, itself, is protected.”
According to court documents, on or about Feb. 14, 2021, James W. Clark, 38, of Falmouth, sent a message via the website contact form of the Arizona Secretary of State’s Office, Election Division, addressed to the election official, and warned her that she needed to “resign by Tuesday February 16th by 9 am or the explosive device impacted in her personal space will be detonated.”
“Threatening public officials is a serious matter, never warranted by the situation no matter how heated or politically charged,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “Cases like this are important in protecting not only the public official victimized by the conduct, but also the integrity of our election processes as a whole.”
Shortly after transmitting the message, Clark conducted online searches that included the full name of the election official in conjunction with the words “how to kill” and “address.” Additionally, on or about Feb. 18, 2021, Clark conducted online searches involving the Boston Marathon bombing.
“Defending the rights of Americans, particularly the right to vote, is a fundamental part of the FBI’s mission to protect the American people and uphold the constitution,” said FBI Director Christopher Wray. “Election workers are dedicated members of our community who have the solemn responsibility of ensuring the integrity of the U.S. voting process. The FBI will fiercely protect election officials from threats of violence and intimidation, and in doing so, protect the fidelity of U.S. elections.”
Clark pleaded guilty to one count of making a threatening interstate communication. He is scheduled to be sentenced on Oct. 26 and faces 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.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge Akil Davis of the FBI Phoenix Field Office joined in the announcement.
The FBI Phoenix Field Office is investigating the case, with assistance from the FBI Boston Division.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Sean K. Lokey for the District of Arizona are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ offices and FBI field offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Man Charged with Making Threat to Michigan Election WorkerRead the Press Release
An Indiana man will make his initial appearance at the federal district court in Detroit today for allegedly sending a threatening communication to an election worker in Michigan.
According to court documents, on or about Nov. 10, 2020, Andrew Nickels, 37, of Carmel, allegedly called the victim, who was the clerk of a local municipality, and left a voicemail in which Nickels stated, in part, “We’re watching your…mouth talk about how you think that there’s no irregularities…[Y]ou frauded out America of a real election…Guess what, you’re gonna pay for it, you will pay for it...[T]en million plus patriots will surround you when you least expect it, and your little infantile Deep State security agency has no time to protect you because they’ll be bought out and we’ll [expletive] kill you…[Y]ou will [expletive] pay for your [expletive] lying ass remarks…We will [expletive] take you out. [Expletive] your family, [expletive] your life, and you deserve a [expletive] throat to the knife…Watch your [expletive] back…watch your [expletive] back.”
Nickels is charged with one count of making a threatening interstate communication. If convicted, he faces a maximum penalty of five years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, and Acting Special Agent in Charge Devin Kowalski of the FBI Detroit Field Office made the announcement.
The FBI Detroit Field Office is investigating the case.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Frances Lee Carlson for the Eastern District of Michigan are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lincoln Man Found Guilty of Possession and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Richard E. Tripp, 71, of Lincoln, Nebraska, was found guilty today by a jury in federal court in Lincoln. Tripp was convicted of one count of possession of child pornography and one count of distribution of child pornography. Sentencing has been set for November 9, 2023, at 1 p.m. before Senior United States District Judge John M. Gerrard. Tripp faces a minimum of 15 years and up to 40 years in prison for the distribution count. For the possession count, Tripp faces a minimum of 10 year and up to 20 years in prison.
Imgur, LLC reported uploads of 38 suspected child pornography image files to the National Center for Missing and Exploited Children (NCMEC). In turn, NCMEC issued Cybertipline Reports to investigators with the Internet Crimes Against Children (ICAC) Task Force, an investigative unit of the Nebraska State Patrol. Based upon information provided in the Cybertipline Reports, investigators were able to determine that the images were uploaded to the Internet from Tripp’s residence in Lincoln, where he was living with two registered sex offenders. After examining his devices, investigators found more than 1,400 files containing child pornography involving prepubescent children, toddlers, and infants. Some of the children depicted in the image files were subjected to bondage, and some were subjected to bestiality.
Tripp is a registered sex offender, convicted of two counts of sexual assault of a child in the first degree in 2007. There were two victims involved in the 2007 case.
This case was investigated by the Nebraska State Patrol.
Lakeland Check Casher Sentenced for Role in Construction-Related Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Raju Gandhi (60, Lakeland) to 18 months in federal prison for conspiracy to defraud the U.S. Department of the Treasury, to commit wire fraud, and to submit false statements and reports to the U.S. Department of the Treasury. The court also entered an order of forfeiture for more than $3.6 million, the estimated proceeds of this multi-pronged fraud conspiracy. Gandhi had pleaded guilty on September 23, 2021.
According to court documents, Gandhi owned and operated a money service and check cashing business in Polk County. Gandhi cashed large numbers of checks made payable to a number of shell construction companies which purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, these shell construction companies were required to secure and maintain adequate worker’s compensation insurance coverage. These shell companies had agreements with contractors and subcontractors to use workers purported to be their employees at construction sites, but these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors themselves. These shell construction companies regularly received “payroll checks” from the contractors that were cashed at various financial institutions to pay the purported “employees” of these shell construction companies.
During the time period charged, the owners of these shell construction companies falsely and fraudulently represented in insurance applications that their companies had a very limited payroll and a limited number of employees who worked on construction jobsites. They also falsely and fraudulently sent wire communications to numerous contractors representing that their companies’ employees had full worker’s compensation coverage. In reality, these shell construction companies provided no real labor force at all but received and cashed more than $147 million at and through Gandhi’s check cashing business in Lakeland. Gandhi was aware of this scheme and hid his activity by falsely under-reporting to the Department of Treasury the fees that he had collected for cashing those contractor checks. These checks were made payable to the shell construction companies from various construction contractors who, in fact, actually supplied the labor force for the jobs. As a result, these employees, performed work on jobsites without adequate insurance coverage. In addition, the worker’s compensation insurance companies lost the higher premiums they could have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
Due to these misrepresentations, the shell construction company owners disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and for paying the required state and federal payroll taxes on these workers’ wages. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for paying those taxes as well.
“Money Service Businesses are a critical component to the nation’s financial system particularly amongst the unbanked and underbanked population, MSB owners and operators have a responsibility to the community to provide fair and transparent services to their customers” said Homeland Security Investigations (HSI) Assistant Special Agent in Charge John Dumas. “HSI, alongside our state, local, and federal law enforcement partners will aggressively investigate and support the successful prosecution of those who operate outside of, or turn a blind eye to the law for their own personal enrichment.”
This case was investigated by Homeland Security Investigations (HSI) and the State of Florida Department of Financial Services. It is part of a broader investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Kern County Man Indicted for Assaulting a Postal CarrierRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one count indictment Thursday against Marco Pergis, 41, of Wasco, charging him with assault on a federal employee inflicting bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2023, Pergis assaulted a postal carrier while the carrier was delivering mail in Wasco. Pergis approached the postal carrier, struck the carrier in the face, and caused injury requiring medical attention.
The case is the product of an investigation by the U.S. Postal Inspection Service and the Kern County Sheriff’s Department. Assistant U.S. Attorney Katrina Brownson is prosecuting the case.
If convicted, Pergis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines, which consider several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 11 was:
Erik Joseph Perlberg, 48, of Billings, on charges of prohibited person in possession of a firearm and illegal possession of a machine gun. If convicted of the most serious crime, Perlberg faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Perlberg was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-90.
Appearing on Aug. 10 was:
Caeland Delmon Ackerman, 22, of Billings, on charges of prohibited person in possession of ammunition. If convicted of the most serious crime, Ackerman faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Ackerman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-81.
Appearing on Aug. 8 was:
Joseph Simpson, 49, of Lame Deer, on charges of conspiracy to possess with intent to distribute and distribution of methamphetamine, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Simpson faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release, on the firearm charge. Simpson was detained pending further proceedings. The FBI, Drug Enforcement Administration and Bureau of Indian Affairs investigated the case. PACER case reference. 23-91.
Anatoliy Samoyednyy, 46, of Sparta, Missouri, on charges of involuntary manslaughter. If convicted of the most serious crime, Samoyednyy faces a maximum of eight years in prison, a $250,000 fine and three years of supervised release. Samoyednyy was released pending further proceedings. The FBI, Bureau of Indian Affairs and Montana Highway Patrol investigated the case. PACER case reference. 23-83.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnson and pleading not guilty on Aug. 8 was:
Jarek William Hahn, 30, of Helena, on charges of possession with intent to distribute fentanyl and drug user in possession of firearms. If convicted of the most serious crime, Hahn faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Hahn was detained pending further proceedings. The Missouri River Drug Task Force and FBI investigated the case. PACER case reference. 23-16.
Henry Gabryl Youpee, Jr., 20, of Poplar, on charges of burglary. If convicted of the most serious crime, Youpee faces a maximum of 20 years in prison, a $50,000 fine and three years of supervised release. Youpee was detained pending further proceedings. The FBI, Roosevelt County Sheriff’s Office and Fort Peck Tribes’ Department of Law and Justice investigated the case. PACER case reference. 23-68.
Patricia Wells, 58, of Heart Butte, on obstruction of justice by witness tampering, obstruction of justice by evidence tampering and obstruction of an official proceeding as charged in a superseding indictment. If convicted of the most serious crime, Wells faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Wells was released pending further proceedings. The FBI investigated the case. PACER case reference. 23-47.
Timothy Edward Gonser, 55, of Great Falls, on charges of prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, Gonser faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Gonser was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department and Lewis and Clark County Sheriff’s Office investigated the case. PACER case reference. 23-75.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 11 was:
Adrian Anthony Aragon, 52, of Butte, on charges of wire fraud, theft of government money and aggravated identity theft. If convicted of the most serious crime, Aragon faces a maximum of 20 years in prison, $250,000 fine and three years of supervised released on the wire fraud charge, and a mandatory minimum of two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release, on the aggravated identity theft charge. Aragon was detained pending further proceedings. The U.S. Department of Interior Office of Inspector General investigated the case. PACER case reference. 23-7.
Appearing on Aug. 7 was:
Jesse Trujillo, 27, of Bozeman, on charges of conspiracy to possess meth with intent to distribute and possession with intent to distribute meth. If convicted of the most serious crime, Trujillo faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Trujillo was detained pending further proceedings. The FBI and Montana Highway Patrol investigated the case. PACER case reference. 23-13.
Agatha Noriz Carranza, 33, of Whitehall, on charges conspiracy to distribute and possession with intent to distribute meth and fentanyl, and possession with intent to distribute meth and fentanyl. Appearing on July 27 on the same charges were co-defendants Juan Felipe Vidrio Fuentes, 25, of Anaheim, California; Martin Topete Garcia, 32, of Mira Loma, California; Johnathan Topete, 27, of Mira Loma, California; and Anthony Wayne Johnson II, 46, of Santa Ana, California. Martin Garcia, Johnathan Topete and Anthony Johnson II face an additional charge of possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge, all defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges. If convicted of the firearm charge, the defendants face a mandatory minimum of five years in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release. All defendants were detained pending further proceedings. The Missouri River Drug Task Force, U.S. Postal Inspection Service, Montana Division of Criminal Investigation, Montana Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-10.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hartford Gang Member Sentenced to 7 Years in Federal Prison for Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSE TIRADO, also known as “Joselito” and “Leet,” 42, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 84 months of imprisonment, followed by five years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, including Tirado, and also to individuals in New York and Maine. Tirado further distributed fentanyl to other distributors and his own customer. During the investigation, Tirado also brokered a gun transaction between a codefendant, Devin Texira, and another individual.
Tirado’s criminal history includes five felony drug convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 8, 2022, a grand jury returned an indictment charging Tirado, Feliciano, Texira, and 13 others with various narcotics distribution and firearm possession offenses.
Tirado was arrested on June 9, 2022. On February 23, 2023, he pleaded guilty to one count of conspiracy to possess with intent to distribute 40 grams or more of fentanyl, and one count of unlawful possession of a firearm by a felon. He has been detained since his arrest.
Feliciano and Texira pleaded guilty and await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Robert S. Ruff. through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Grand jury indicts 2 more Central Ohio men for 4 new armed robberies of Postal carriersRead the Press Release
COLUMBUS, Ohio – A grand jury has indicted two more Central Ohio men for crimes related to four new, separate armed robberies against U.S. Postal carriers.
Cameron D. Newton, 19, of Westerville, and Thierno S. Bah, 20, of Columbus, were each charged in a superseding indictment returned on Aug. 10.
Their case is the most recent of a handful of similar prosecutions in the U.S. Attorney’s Office in Columbus. In August 2022, Brandon J. Campbell was sentenced to 78 months in prison for two previous armed Postal carrier robberies. Mahad S. Jama, Da’Mon D. May and Cody N. Beasley have charges pending against them for an April 2023 armed Postal robbery in Dublin.
According to the superseding indictment in this case, Newton and Bah used firearms and robbed Postal carriers of their U.S. Postal Service keys on four occasions between December 2022 and May 2023.
The alleged thefts occurred in Central Ohio on:
- Dec. 29, 2022
- Jan. 3, 2023 (two separate robberies on this date)
- May 11, 2023
When federal agents executed a search warrant at Newton’s residence in May 2023, they discovered the USPS key that had been stolen on May 11. During that robbery, the Postal employee was pistol-whipped with a handgun.
Investigators also discovered more than 100 pieces of mail, several Visa money cards in different names, a scanner and small printer with printed checks next to it, a large box containing more than 100 checks, numerous checks stuffed inside bathroom toilet bowls, and a handgun.
Bah, who is also known as “Wopo” and “Wopoonese,” was arrested today.
Newton was originally charged by criminal complaint in May 2023. If convicted, Newton will forfeit approximately $22,000 in proceeds from the alleged miscreant conduct.
Robbery is punishable by up to 25 years in prison. Using a firearm during a crime of violence carries a penalty of at least five years and up to life in prison. Possessing a stolen Postal Service key is punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS); Columbus Police Chief Elaine Bryant; Westerville Police Chief Charles Chandler; and Whitehall Police Chief Mike Crispen announced the charges. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
Charging documents merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Rapids Man Accused of Human TraffickingRead the Press Release
Grand Jury Alleges Sex Trafficking of a Child and Child Exploitation
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a grand jury has charged a man from Grand Rapids with federal human trafficking and child exploitation crimes. Torey Franklin, 29, is accused of sex trafficking a minor in the spring and summer of 2022, and producing, receiving, and distributing child pornography during the same time period as part of his trafficking business.
“Trafficking in any form is inherently cruel, but the sex trafficking of minors is particularly troubling because of the unique vulnerability of the victims,” said U.S. Attorney Totten. “My office is committed to protecting our most vulnerable and holding traffickers legally accountable for their offenses.”
According to the indictment, Franklin provided a 17-year-old minor for commercial sex work in Kent County, even though he knew the minor was under the age of 18. The indictment also alleges that Franklin enticed the same minor to take sexually explicit pictures, which he then distributed. Sex trafficking of a minor is punishable by a mandatory minimum term of 10 years in prison. If Franklin is convicted of this offense, the sentencing judge will have discretion to impose up to a lifetime term of imprisonment. The penalty range for the sexual exploitation of a minor charge is 15 to 30 years, and the range for the child pornography charges is 5 to 20 years.
“Combating sex trafficking and violence in our communities is of the highest priority for the FBI and our law enforcement partners across the State of Michigan,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “These types of crimes have a lasting impact on the victim and those who harm the most vulnerable members of our society will be held accountable.”
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Torey Franklin Indictment###
Franklin County Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
FRANKFORT, Ky. — A Frankfort man, Charles Crawford, 53, was sentenced to 30 years in federal prison on Friday, by U.S. District Judge Gregory Van Tatenhove, for production of child pornography.
According to his plea agreement, Crawford admitted that, on March 19, 2022, he was pulled over in a traffic stop because he was observed to have a minor sitting on his lap. During the stop, it was discovered that Crawford had a sexual device strapped to his leg and that he was under the influence of methamphetamine. A search of the car was then performed, which revealed methamphetamine, drug paraphernalia, and a digital camera. A search of the camera revealed three videos of Crawford sexually assaulting a minor victim.
Crawford pleaded guilty in January 2023.
Under federal law, Crawford must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for life. He was also ordered to pay restitution to his victim.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigation; Daniel Cameron, Kentucky Attorney General; Chief Dustin Bowman, Frankfort Police Department; and Sheriff Chris Quire, Franklin County Sheriff's Office, jointly announced the sentence.
The investigation was conducted by the HSI, the Kentucky Attorney General’s Office, the Frankfort Police Department, and the Franklin County Sheriff's Office. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the 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 www.projectsafechildhood.gov
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Four South Louisiana Men Sentenced for Illegally Possessing FirearmsRead the Press Release
LAKE CHARLES, La. – United States Attorney Brandon B. Brown announced the resolution of several cases involving the illegal possession of firearms. United States District Judge James D. Cain, Jr. sentenced the following individuals:
Devin Blake Badon, 31, of Cameron, Louisiana, was sentenced to 60 months in prison, followed by 3 years of supervised release. Badon pleaded guilty on April 19, 2023 to being a convicted felon in possession of a firearm. A complaint was received by the Johnson Bayou Police Department about a female whose vehicle was being followed by Badon. Deputies arrived on the scene and contacted Badon, who was non-compliant with their commands and he was subsequently placed under arrest. Inside Badon’s vehicle, deputies located three firearms. At the time of his arrest, Badon had three felony convictions, including simple burglary of an inhabited dwelling, negligent homicide and criminal damage to property. As a convicted felon, Badon was prohibited from possessing any firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Johnson Bayou Police Department and prosecuted by Assistant U.S. Attorney Jamilla A. Bynog.
Demetrius Jerone Davis, 39, of Abbeville, was sentenced to 120 months in prison, followed by 3 years of supervised release. Davis pleaded guilty on October 17, 2022 to possession of a stolen firearm. On January 29, 2021, deputies with the Vermilion Parish Sheriff’s Office conducted a traffic stop a vehicle being driven by Davis. Davis advised deputies that he had a firearm under the driver’s seat. The firearm was seized and identified as a SCCY Model CPX-9 9mm pistol which contained 15 rounds of ammunition and had been reported stolen. Davis admitted to knowing the firearm was stolen and that he possessed the firearm in connection with a felony level controlled substance offense. Davis also admitted to committing the offense after having been previously convicted of felony offenses for distribution of cocaine and possession with intent to distribute cocaine, both in 2005, and distribution of cocaine in 2008.
The case was investigated by the ATF and the Vermilion Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Daniel J. McCoy.
Mark Edward Fee, 43, of Sulphur, was sentenced to 84 months in prison, followed by 3 years of supervised release. On October 8, 2021, investigators with the Calcasieu Parish Sheriff’s Office executed a search warrant at Fee’s residence where he was the sole occupant. Deputies found a Hi-Point Model C9 9mm semi-automatic pistol, along with several rounds of ammunition inside the residence. Law enforcement officers learned that the firearm had been reported stolen. Agents with the ATF analyzed the seized firearm and found it be a functioning firearm which had traveled in or affected interstate and foreign commerce. Fee was arrested and charged with being a convicted felon in possession of a firearm. He admitted to agents that he was aware that the firearm and ammunition were in his residence and knew he was prohibited from possessing them. Fee pleaded guilty to the chare on April 19, 2023.
The case was investigated by the ATF and the Calcasieu Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Danny Siefker.
Javeon Jaron Green, 22, of Lake Charles, was sentenced to 46 months in prison, followed by 3 years of supervised release. In November 2020, an arrest warrant was issued for Green based on information investigators with the Lake Charles Police Department and Calcasieu Parish Sheriff’s Office had learned through their investigative efforts. On November 28, 2020, officers located Green and other associates in a hotel in Lake Charles. A search warrant was obtained and executed on the hotel rooms rented by Green and his associates. Law enforcement agents found a loaded FNX .45 caliber pistol, a loaded 9mm Glock Model 19 with extended magazine, and a loaded .45 caliber Glock Model 23C pistol. Other evidence was obtained by agents revealing photos and videos of Green possessing the handguns recovered from the hotel room and the metadata indicated they were taken on a date after Green’s prior felony conviction. Green was previously convicted of possession with intent to distribute a controlled substance in 2019 in Calcasieu Parish.
The case was investigated by the ATF, Lake Charles Police Department, and the Calcasieu Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Daniel Vermaelen.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Four East Tennessee Doctors Convicted in Drug Trafficking and Fraud SchemeRead the Press Release
FRANKFORT, Ky. – A federal jury sitting in Frankfort convicted four Tennessee physicians on Friday of conspiracy to illicitly prescribe controlled substances and related fraud and money laundering offenses.
The defendants worked together in two east Tennessee clinics, called EHC Medical, that purported to offer treatment for opioid use disorder. The evidence presented established that the defendants agreed to unlawfully prescribe buprenorphine (the controlled substance in the drug known by its trade name, Suboxone) and benzodiazepine-class drugs, including clonazepam.
Evann Herrell, Mark Grenkoski, Keri McFarlane, and Stephen Cirelli were each physicians who worked for EHC Medical in Harriman and Jacksboro, Tenn. Robert Taylor, who opened EHC Medical in 2013 and operated it through late 2018, pleaded guilty to a drug trafficking conspiracy charge and was sentenced earlier this year to 30 months in prison. He forfeited $13.8 million and paid an additional fine of $200,000. Lori Barnett, a registered nurse who helped Taylor supervise day-to-day operations, and three other physicians – Matthew Rasberry, Helen Bidwaid, and Eva Misra – also pleaded guilty to related drug or money laundering charges and are awaiting sentencing.
At trial, the United States presented evidence of a wide-ranging conspiracy to provide prescriptions for high doses and dangerous combinations of Suboxone and benzodiazepines to cash-paying customers. These drugs were being sold, traded, and abused throughout southeastern Kentucky. The evidence further established that the Defendants engaged in a conspiracy to falsify medical records, while putatively treating patients, and that Herrell, Grenkoski, and McFarlane conspired to cause millions of dollars in fraudulent submissions to Medicare, Kentucky Medicaid, and other health benefit programs for prescription drugs and urine drug testing.
“These physicians focused on their own greed and self-interests, not the needs of their patients,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Their illegal scheme had a damaging impact on their patients, fraudulently preyed on health benefit programs, and undermined the public’s faith in legitimate medical practices in this field. We, and our law enforcement partners, remain committed to holding those who take advantage of the medical licenses entrusted to them, to profit through unlawful prescriptions, accountable. The opioid epidemic created an acute need for responsible substance abuse treatment. Drug trafficking, operating under the guise of addiction treatment, is another despicable consequence of this problem.”
United States Attorney Shier; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; and Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG), jointly announced the guilty verdict.
The Defendants are scheduled to appear for sentencing on December 4, 2023. The statutory maximum penalty for the drug trafficking conspiracy is 10 years, for the conspiracy to falsify documents in connection with delivery of health care services is 5 years, and for the fraud and money laundering counts is 20 years. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence. The defendants also face potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.
The investigation was conducted by the DEA, IRS, and HHS, with support from the Kentucky Office of the Attorney General.
The United States was represented in the case by Assistant U.S. Attorneys Greg Rosenberg, Amanda Huang, and Andrew Smith. The case was prosecuted as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force, an initiative focusing on significant drug trafficking and money laundering criminal organizations.
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Former U.S. Postal Service Mail Carrier Sentenced for Stealing Mail from Customers in SanteeRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO – Former U.S. Postal Service mail carrier Tracy Rumley of El Cajon was sentenced in federal court this morning to five years of probation and 200 hours of community service for stealing mail from customers on her postal route in the Santee area of San Diego.
When imposing sentence, U.S. District Judge Janis L. Sammartino said, “Stealing mail is not the way to go. You will be caught, and you will be prosecuted.”
During the evening of November 21, 2022, an off-duty San Diego Police detective saw a woman in a hooded sweatshirt open a communal mailbox at his apartment complex in Santee, California and remove multiple pieces of mail. As the detective approached, the female closed the mailbox and fled in a White Nissan. After getting the license plate of the vehicle, the detective determined that Rumley resided at the same address as listed for the vehicle registration and referred the matter to the U.S. Postal Service.
Rumley had been placed on administrative leave from her employment at the Santee Post Office earlier that month and was terminated by the Postal Service on December 12, 2022. After securing a search warrant for the residence, on December 21, 2022, United States Postal Service Inspectors found more than 1,500 pieces of mail in Rumley’s residence including, but not limited to, gift cards, credit cards and even several Christmas presents that had all been stolen from nearly 900 customers along her mail delivery route in Santee. Inspectors also found the keys she was given as a mail carrier to access mailboxes. The keys were hidden in a potted plant within her bedroom. In her plea agreement, Rumley admitted that, even after being placed on administrative leave, she kept those keys though she was not authorized to do so and used them to continue to steal mail even after she was terminated.
The government’s sentencing papers quoted several statements given by the victims of Rumley’s crimes. Those statements emphasized what Judge Sammartino observed was a “betrayal” of duty by the victims’ mail carrier. For example, a child who had been impacted by Rumley’s theft commented that, “I felt shocked because I got robbed by the mail lady.” An adult victim said, “She played us for idiots.”
“When customers entrust the U.S. Postal Service with their letters and packages, they expect each and every piece will be delivered to its final destination,” said Acting U.S. Attorney Andrew R. Haden. “The U.S. Attorney’s Office will zealously pursue those whose actions impact the integrity of our mail delivery system to achieve justice for the victims.” Haden thanked former Special Assistant U.S. Attorney Jennifer Luce and the U.S. Postal Service Office of Inspector General for their excellent work on this case.
“The sentencing in this case demonstrates the U.S. Postal Inspection Service’s commitment to protect the sanctity of the U.S. Mail and to ensure the public’s trust in the Postal Service by holding those that commit theft accountable for their actions,” said Carroll Harris, Inspector in Charge of the Los Angeles Division.
DEFENDANT Case Number 23cr0216-JLS
Tracy Rumley Age: 44 El Cajon, CA
SUMMARY OF CHARGES
Count 1: Keys or Locks Stolen – Title 18, U.S.C., Section 1704
Maximum penalty: Ten years in prison and $250,000 fine
Count 2: Theft of Stolen Mail Matter – Title 18, U.S.C., Section 1708
Count 3: Theft of Mail by Postal Employee – Title 18, U.S.C., Section 1709
Maximum penalty (Counts 2 & 3): Five years in prison and $250,000 fine
AGENCY
U.S. Postal Inspection Service
Former Tennessee State Senator and Co-Conspirator Sentenced for Campaign Finance SchemeRead the Press Release
Former Tennessee State Senator and practicing attorney Brian Kelsey was sentenced today to one year and nine months in prison for violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 45, of Alexandria, Virginia, secretly and unlawfully funneled money from multiple sources, including his own Tennessee State Senate campaign committee, to his federal campaign committee. To carry out the scheme, Kelsey conspired with others, including Joshua Smith, who owned a members-only social club in Nashville, of which Kelsey was a member, and controlled a Tennessee political action committee affiliated with the club. Kelsey, Smith, and others caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
“The defendants attempted to hide from voters how Kelsey raised and spent campaign money,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The integrity of our elections is essential to democracy, and voters should know how candidates raise and spend campaign dollars. The Department will continue to work alongside our law enforcement partners to uncover and prosecute campaign finance schemes designed to evade disclosure, and to ensure that violations of these laws carry a high cost.”
“Brian Kelsey intentionally violated federal campaign finance laws and his oath as a state senator in order to deny Tennessee voters their right to make informed decisions about his candidacy for Congress,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “The court’s sentence today reflects the seriousness of his crimes and is a strong reminder of our commitment to root out public corruption and ensure the integrity of federal elections.”
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
“The sentence handed down today makes it clear that no one is above the law,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI diligently investigates campaign finance fraud to ensure that U.S. elections are free from unfair influence, and anyone caught attempting to scheme their way into office will be held accountable.”
Joshua Smith was also sentenced today to five years of probation for aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election.
The FBI Memphis Field Office investigated the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee prosecuted the case.
Former St. Louis County Realty Company Employee Sentenced to Prison for $487,000 FraudRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced a former employee of a St. Louis County realty company to three years in prison for embezzling $487,000 from her employer.
Crystal Hendrix, 50, of Festus, was also fined $10,000 and ordered to repay the money she stole.
Hendrix handled payroll as part of her duties with the real estate company and had access to the company bank accounts. From about Jan. 8, 2018 to Dec. 9, 2020, Hendrix sent over 140 payments totaling approximately $483,037 to her own bank account. Hendrix used the money at restaurants and to buy a vehicle, her plea agreement says.
Hendrix pleaded guilty in March to three counts of wire fraud.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Gwendolyn Carroll and Edward Dowd III prosecuted the case.
Former Oklahoma Police Officer Indicted for Sexual Assault and ObstructionRead the Press Release
A federal grand jury in Muskogee, Oklahoma, returned a three-count indictment, unsealed today, charging former Savanna Police Department (SPD) police officer Jeffery Scott Smith Jr. with a federal civil rights violation for sexually assaulting a victim while acting under color of law and obstructing justice.
According to the indictment, on Nov. 2, 2022, in Pittsburg County, Oklahoma, Jeffery Scott Smith Jr., 35, while on duty as an SPD police officer, conducted a traffic stop on a car in which the victim was a passenger. Count one of the indictment charges Smith with depriving the victim of her right to bodily integrity when he sexually assaulted the victim during the traffic stop. That indictment alleges that Smith’s conduct resulted in bodily injury to the victim and included the commission of a nonconsensual sexual act with the victim. Counts two and three of the indictment charge Smith with knowingly altering, concealing, covering up and falsifying an SPD record by deactivating his SPD body worn camera and SPD dashboard camera during the traffic stop, with the intent to impede, obstruct, and influence an investigation into his sexual misconduct.
If convicted, Smith faces a maximum sentence of 40 years in prison on the civil rights count and 20 years in prison on each of the obstruction of justice counts.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office is investigating the case, with assistance from the Oklahoma State Bureau of Investigation and the Pittsburg County Sheriff’s Office.
Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Clay Compton for the Eastern District of Oklahoma are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentFormer Oklahoma Police Officer Indicted for Sexual Assault and ObstructionRead the Press Release
WASHINGTON – A federal grand jury in Muskogee, Oklahoma, returned a three-count indictment, unsealed today, charging former Savanna Police Department (SPD) police officer Jeffery Scott Smith Jr. with a federal civil rights violation for sexually assaulting a victim while acting under color of law and obstructing justice.
According to the indictment, on Nov. 2, 2022, in Pittsburg County, Oklahoma, Jeffery Scott Smith Jr., 35, while on duty as an SPD police officer, conducted a traffic stop on a car in which the victim was a passenger. Count one of the indictment charges Smith with depriving the victim of her right to bodily integrity when he sexually assaulted the victim during the traffic stop. That indictment alleges that Smith’s conduct resulted in bodily injury to the victim and included the commission of a nonconsensual sexual act with the victim. Counts two and three of the indictment charge Smith with knowingly altering, concealing, covering up and falsifying an SPD record by deactivating his SPD body worn camera and SPD dashboard camera during the traffic stop, with the intent to impede, obstruct, and influence an investigation into his sexual misconduct.
If convicted, Smith faces a maximum sentence of 40 years in prison on the civil rights count and 20 years in prison on each of the obstruction of justice counts.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office is investigating the case, with assistance from the Oklahoma State Bureau of Investigation and the Pittsburg County Sheriff’s Office.
Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Clay Compton for the Eastern District of Oklahoma are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Chief Financial Officer sentenced to prison for falsifying accounting entries for publicly traded Vancouver, Washington staffing firmRead the Press Release
Tacoma – The former Chief Financial Officer of Barrett Business Services, Inc. (BBSI) of Vancouver, Washington, was sentenced today in U.S. District Court in Tacoma to 15 days in federal prison for falsely certifying the company’s 2013 annual report, announced Acting U.S. Attorney Tessa M. Gorman. James Miller, 61, of Washougal, Washington, pleaded guilty on November 4, 2022, following years of shareholder litigation and a Security and Exchange Commission (SEC) fraud investigation. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “The entries were deliberate – you knew what you were doing…. We have to be able to rely on the fact that financial statements are accurate.”
“As a former auditor and CPA, Mr. Miller understood the importance of accurately disclosing financial information,” said Acting U.S. Attorney Gorman. “Nevertheless, he made fraudulent entries 29 times, totaling over $12 million. He ‘cooked the books’ and then certified the financial reports as accurate – keeping shareholders and company executives in the dark about the fraudulent entries for three years.”
According to records filed in the case, between 2008 and 2016, Miller served as CFO of Barrett Business Services Inc. The company provided human resources functions for other businesses. One of the services BBSI provided was calculating and paying workers compensation obligations for its customers. The amount of workers’ compensation paid out was a key indicator in assessing the company’s expenses.
Between 2012 and 2013, Miller made accounting entries that understated the amount by which the workers compensation expense had increased, and instead attributed $12 million of workers’ compensation expense to payroll taxes and other costs. Miller’s accounting entries violated Generally Accepted Accounting Principles and concealed potentially important trend from analysts evaluating the company.
After making each false entry, Miller directed a staff accountant to initial the entry. This created the appearance that the staff accountant had made the entries, when in fact Miller had done so.
Even as he was preparing the false entries, Miller exercised his options to sell tens of thousands of shares of BBSI stock, selling $2.4 million worth of shares in just two days in 2013.
In recommending that the court sentence Miller to ten months in prison, Assistant United States Attorney Seth Wilkinson noted, “When Miller executed those (stock) trades, he knew BBSI’s actuary had reported a substantial increase in workers’ compensation expense. And as Miller admitted in his SEC testimony, he also knew this was an important expense for the company. But, because Miller had secretly gamed BBSI’s accounting, the public—including those who purchased Miller’s stock—did not have this knowledge.”
The case was investigated by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Former Army Master Sergeant Sentenced for Child PornographyRead the Press Release
NEW BERN, N.C. – A former army Master Sergeant was sentenced today to 76 years’ imprisonment followed by lifetime supervised release for Distribution and Receipt of Child Pornography.
According to court documents and other information presented in court, Joshua Robert George Glardon, 41, was investigated by the Cumberland County Sheriff’s Office and the North Carolina State Bureau of Investigation in July 2021 for child exploitation offenses.
The investigation began when the National Center for Missing and Exploited Children received three CyberTips from Kik social media that one of its users had uploaded child sexual abuse material on multiple days. The IP address used to upload the images belonged to Joshua Glardon who lived in Fayetteville. Two of the images in the CyberTip appeared to be homemade images. Pursuant to a search warrant, Glardon’s digital devices were seized. After a forensic analysis was complete, law enforcement found thousands of images of child sexual abuse material on his phone. Included in those files were images of the child that appeared to be homemade images that were a part of the CyberTips.
Law enforcement officers were able to identify the child through chat messages Glardon had with Amy Huddleston. When law enforcement learned Huddleston had access to this child, a search warrant was executed on Huddleston’s residence. In an interview, Huddleston confessed to allowing Glardon to rape this child. She admitted she would take images and videos of the child, including videos of her performing sexual acts on the child, and send them to Glardon. A forensic analysis of Huddleston’s digital devices revealed chat conversations wherein Glardon and Huddleston discussed the sexual abuse of the child.
Glardon would then distribute the child’s images over the internet where he encouraged others to further share the images. Law enforcement located nearly 50 conversations wherein Glardon had shared the child’s image and encouraged others to fantasize about brutally raping the child.
His co-defendant, Amy Huddleston, was sentenced in June to 30 years’ imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. The Cumberland County Sheriff’s Office and the North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney Charity Wilson 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. 7:22-CR98-1FL.
Five Men Arrested in Sex Trafficking OperationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that the South Dakota Division of Criminal Investigation (DCI), the South Dakota Internet Crimes Against Children Task Force (ICAC), U.S. Homeland Security Investigations (HSI), Ellsworth AFB Office of Special Investigations, the Pennington County Sheriff’s Office, and the Rapid City Police Department conducted a joint sex-trafficking operation during the 2023 Sturgis Motorcycle Rally. The operation began on August 4, 2023, and continued through August 10, 2023.
As a result, the following five men were arrested and charged:
Burton Dave Chief, Jr., 35, Rapid City – Attempted Sexual Exploitation of a Minor
Vincent Alberto Barrios, 42, Box Elder - Attempted Enticement of a Minor Using the Internet
James Halen Dreamer, 41, Rapid City - Attempted Enticement of a Minor Using the Internet
James Peter Fast Horse, 45, Rapid City - Attempted Enticement of a Minor Using the Internet
Jacob Chinni Wilson, 38, Rapid City - Attempted Enticement of a Minor Using the Internet
“Working with our law enforcement partners, we were able to take more dangerous sexual predators off the streets of South Dakota this week,” said U.S. Attorney Alison J. Ramsdell. “We appreciate the exceptional collaboration between state, local, and federal agencies that made this operation a success.”
The mandatory minimum penalty upon conviction for Attempted Sexual Exploitation of a Minor is 15 years up to 30 years in federal prison; and any term of years, not less than five, up to lifetime supervised release.
The mandatory minimum penalty upon conviction for Attempted Enticement of a Minor Using the Internet is 10 years up to life in federal prison; and any term of years, not less than five, up to lifetime supervised release.
The charges are merely accusations, and all five defendants are presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The cases are being federally prosecuted by Assistant U.S. Attorneys Sarah B. Collins and Heather Knox.
Five Charged for Conspiring to Stage Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ANTOINE CLARK (“CLARK”), age 33, of New Orleans, Louisiana; DIMITRI FRAZIER (“FRAZIER”), age 31, of Westwego, Louisiana; SHIRLEY HARRIS (“HARRIS”), age 38, of New Orleans, Louisiana; ADONTE TURNER (“A. TURNER”), age 25, of New Orleans, Louisiana; and TIFFANY TURNER (“T. TURNER”), age 52, of New Orleans, Louisiana were indicted on August 10, 2023.
The indictment charges these defendants with intentionally staging automobile accidents with tractor-trailers in New Orleans to defraud trucking and insurance companies . According to the indictment, defendants CLARK and HARRIS intentionally collided with a tractor-trailer on April 24, 2017, in the area of Interstate 10 near the Crowder Boulevard exit in New Orleans. The indictment also alleges that, on November 13, 2017, FRAZIER, A. TURNER, and T. TURNER intentionally struck a tractor-trailer in the area of Interstate 10 near Paris Road in New Orleans. CLARK, HARRIS, FRAZIER, A. TURNER, and T. TURNER made false police reports, filed fraudulent lawsuits, lied during deposition testimony, and sought unnecessary medical treatment in furtherance of their fraudulent claims.
These defendants were all charged with one (1) count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371. CLARK and HARRIS were also charged with two (2) counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. If convicted, the defendants face a maximum penalty of five (5) years for the conspiracy count and twenty (20) years as to the Wire Fraud counts. Upon their release from prison, each defendant can be placed on a term of supervised release for up to five (5) years and fined up to $250,000.00 per count. A $100 mandatory special assessment fee per count is also applicable.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorneys’ Maria Carboni, Brandon Long, and Edward Rivera, all of the Financial Crimes Unit and, Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Felon Who Threatened Girlfriend with a Gun Sentenced to Eight Years in Federal PrisonRead the Press Release
A man who possessed a firearm as a felon was sentenced yesterday to 96 months in federal prison.
Nethaniah Gordon, age 28, received the prison term after a March 16, 2023, guilty plea to one count of possessing a firearm as a felon.
During a domestic dispute, Gordon, who was convicted on January 13, 2014, of a controlled substance violation, possession of marijuana with intent to deliver, and prohibited from possessing firearms, struck his girlfriend in the face and head multiple times, verbally threatened her, and pointed a gun at different parts of her body. Gordon has a history of domestic abuse.
Gordon was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gordon was sentenced to 96 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gordon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and Special Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Independence Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 23-CR-2006.
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Federal Jury Finds Bloods Gang Member Guilty of Drug Distribution and Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A federal jury found a Prior Lake man guilty of possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of drug trafficking, announced U.S. Attorney Andrew M. Luger.
Following a three-day trial before Senior Judge Susan Richard Nelson, Nathan John Walz, 35, a member of the Minneapolis Bloods street gang, was found guilty of possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of drug trafficking. A sentencing hearing will be scheduled at a later date.
According to evidence presented at trial, on November 1, 2022, at approximately 7:50 a.m., officers with the Minneapolis Police Department were dispatched to the Lowry Hill neighborhood after receiving a report of a “slumper” in a car. Officers approached the car and identified the individual slumped over in the driver’s seat as Walz. Officers observed a handgun in plain view on the center console of the car and took Walz into custody. The handgun was a stolen Kimber, model Super Custom Carry, .45 caliber semi-automatic pistol. Officers also recovered from the vehicle 28 grams of methamphetamine and a variety of other drugs, as well as a digital scale and plastic baggies.
Because Walz has prior felony convictions, he is prohibited from lawfully possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the FBI, the U.S. Postal Inspection Service, the Minnesota Department of Corrections, and the Minneapolis Police Department.
Assistant U.S. Attorneys Esther S. Mignanelli and Joseph S. Teirab tried the case.
Former Tennessee State Senator and Co-Conspirator Sentenced for Campaign Finance SchemeRead the Press Release
NASHVILLE – Former Tennessee State Senator and practicing attorney Brian Kelsey was sentenced today to one year and nine months in prison, followed by three years of supervised release, for violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 45, of Alexandria, Virginia, secretly and unlawfully funneled money from multiple sources, including his own Tennessee State Senate campaign committee, to his federal campaign committee. To carry out the scheme, Kelsey conspired with others, including Joshua Smith, who owned a members-only social club in Nashville, of which Kelsey was a member, and controlled a Tennessee political action committee affiliated with the club. Kelsey, Smith, and others caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
“Brian Kelsey intentionally violated federal campaign finance laws and his oath as a state senator in order to deny Tennessee voters their right to make informed decisions about his candidacy for Congress,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “The court’s sentence today reflects the seriousness of his crimes and is a strong reminder of our commitment to root out public corruption and ensure the integrity of federal elections.”
“The defendants attempted to hide from voters how Kelsey raised and spent campaign money,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The integrity of our elections is essential to democracy, and voters should know how candidates raise and spend campaign dollars. The Department will continue to work alongside our law enforcement partners to uncover and prosecute campaign finance schemes designed to evade disclosure, and to ensure that violations of these laws carry a high cost.”
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
“The sentence handed down today makes it clear that no one is above the law,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI diligently investigates campaign finance fraud to ensure that U.S. elections are free from unfair influence, and anyone caught attempting to scheme their way into office will be held accountable.”
Joshua Smith was also sentenced today to five years of probation, a $250 fine, and 720 hours of community service for aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee prosecuted the case.
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Essex County Mother and Son Admit Roles in Scheme to Harbor Non-U.S. Citizens Through Marriage FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman and her son admitted conspiring to commit marriage fraud, U.S. Attorney Philip R. Sellinger announced today.
Andrea Torres, 56, of Newark, pleaded guilty on Aug. 10, 2023, before U.S. District Judge Esther Salas in Newark federal court to a two-count superseding indictment charging her and others with conspiracy to harbor non-U.S. citizens by orchestrating fraudulent marriages between the non-citizens and U.S. citizens. Her son, Philip Torres, 27, also of Newark, pleaded guilty to Count Two of the superseding indictment.
According to documents filed in this case and statements made in court:
From September 2016 through March 2021, Andrea Torres and her sister, Regina Johnson, arranged and facilitated sham marriages for non-U.S. citizens who wished to remain in the United States despite the lack of legal status or proper documentation. Andrea Torres and Johnson recruited U.S. citizen potential spouses and paid them a fee in exchange for those U.S. citizens entering into sham marriages with Andrea Torres’ and Johnson’s non-citizen clients.
From March 2021 through June 2021, Andrea Torres’ son, Philip, also participated in the scheme by, among other things, officiating some of the sham marriages. Andrea Torres and Johnson arranged for the “couples” to obtain fraudulent marriage licenses and even arranged and charged their clients for wedding ceremonies and after parties that were staged to make the sham marriages appear legitimate. Andrea Torres and Johnson further advised their clients to open joint bank accounts and to meet frequently with their U.S. spouses. Clients were also advised to take photographs in a variety of locations and in different clothing to memorialize the relationship and to give the appearance of cohabitation, even though none of the clients ever resided or intended to reside with their U.S. spouses. Andrea Torres and Johnson then helped their clients complete immigration forms to obtain permanent residency on the basis of the materially false misrepresentations. Johnson previously pleaded guilty to the charge in Count One of the superseding indictment.
Each count of conspiracy to which Andrea Torres and Philip Torres pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss resulting from the offense, whichever is greatest. Sentencing for both is scheduled for Dec. 14, 2023.
U.S. Attorney Sellinger credited special agents and members of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the guilty pleas. He also thanked U.S. Citizenship and Immigrations Services for its assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit and Assistant U.S. Attorney Blake A. Coppotelli of the Economic Crimes Unit in Newark.
torres.sindictment.pdfDrug Trafficker Sentenced to 15 Years in Prison for Distributing Methamphetamine and FentanylRead the Press Release
NEWS RELEASE SUMMARY – August 11, 2023
SAN DIEGO –Danny Lamar Miller-Kidd was sentenced in federal court to 15 years in prison for his leadership role in a Baja California-based drug trafficking organization that imported and distributed hundreds of pounds of methamphetamine, cocaine, fentanyl, and heroin to various sub-distributors throughout the United States, including California, Arizona, Oregon, Nevada, Wyoming, Colorado, Utah, Illinois, and Tennessee.
Miller pleaded guilty in December 2022 to conspiracy to distribute controlled substances and possession of methamphetamine with intent to distribute. As part of his plea agreement, Miller admitted that he worked as a multi-kilogram distributor of controlled substances for a Baja California-based drug trafficking organization. Specifically, he worked with his co-conspirators to import multi-kilogram quantities of methamphetamine, cocaine, fentanyl and heroin from Mexico intended for distribution throughout the United States.
During the wiretap investigation, agents identified Miller as a leader of a drug distribution cell who was responsible for distributing controlled substances to various sub-distributors in Arizona, Utah, Illinois, Colorado and other states. Miller was acting in furtherance of the conspiracy when he was stopped by law enforcement in the Southern District of California as he was transporting more than 30 pounds of pure methamphetamine, 5,000 fentanyl pills, and multiple firearms inside his vehicle in September 2021. Wire intercepts revealed that Miller obtained his drugs from Mexico that were secreted in buckets of construction material. Miller was also known to possess assault rifles, including an AR-15 with a silencer, “ghost guns,” and other weapons throughout the investigation.
“Every defendant we convict of drug-related crimes is one less cog in the massive machine that delivers poison to our streets,” said Acting U.S. Attorney Andrew Haden. “We will continue to fight relentlessly to protect our communities from deadly drugs like fentanyl.”
“Here’s another example of how DEA and our partners continue to aggressively target drug trafficking organizations that are importing and distributing drugs into our country,” said DEA Special Agent in Charge Shelly Howe.
“IRS special agents will work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to dismantle drug trafficking organizations by bringing their leaders to justice,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “By following and eliminating the trail of illicit proceeds fueling the drug trade, IRS Criminal Investigation combats the flow of illegal guns and drugs that are killing Americans and destroying our communities. Mr. Miller’s sentencing should send a clear message of our resolve.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANTS Case Number 22cr1143-GPC
- REDACTED Age: 42 Fugitive
- REDACTED Age: 34 Fugitive
- Danny Lamar Miller-Kidd Age: 51 180 months’ custody
- Angela Diane Guerrero Age: 39 70 months’ custody
- Elizabeth Allison Edelman Age: 41 156 months’ custody
- Erik Valenzuela Age: 44 57 months’ custody
- Ramiro Aguilar Age: 41 108 months’ custody
- Amber Mae Yaeger Age: 40 Pending sentencing
- Andrew Mauricio Martinez Age: 21 Pending sentencing
- REDACTED Age: 46 Fugitive
- Nilesh Prasad Maharaj Age: 44 Fugitive
- Nofoaiga Mauu Age: 42 Pending trial
- Yendi Cecilia Rosas Age: 22 18 months’ custody
- Arturo Valenzuela-Preciado Age: 60 37 months’ custody
- Montserrat Lopez-Barron Age: 23 Pending trial
- Maria Conchita Alonso-Lopez Age: 27 Awaiting sentencing
- Juan Manuel Godinez-Gutierrez Age: 42 Fugitive
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a)(1) and 846
Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Importation of Controlled Substances – Title 21, U.S.C., Sections 952 and 960
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Sections 1956(a)(1) and (h)
Criminal Forfeiture – Title 18, U.S.C., Section 982
Maximum penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 3 years of supervised release.
AGENCY
Drug Enforcement Administration
Bureau of Land Management
Internal Revenue Service
Customs and Border Protection
Homeland Security Investigations
United States Border Patrol
United States Postal Inspection Service
San Diego Sheriff’s Department
Chula Vista Police Department
Oceanside Police Department
California Highway Patrol
Las Vegas Metropolitan Police Department
San Diego County District Attorney’s Office
*Allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Driver in Large South Texas Human Smuggling Case Sentenced in Del Rio to 35 Years in Federal PrisonRead the Press Release
DEL RIO, Texas – An Ohio man was sentenced in a federal court in Del Rio Thursday to 420 months in prison for illegal alien transportation resulting in death.
According to court documents, Sebastian Tovar, 27, of Toledo, was driving a Dodge Ram near Del Rio on March 15, 2021, when a Texas Department of Public Safety (DPS) trooper attempted to stop the vehicle. Tovar tried to evade law enforcement but crashed into oncoming traffic. Eight undocumented noncitizen passengers in Tovar’s truck died in the crash, while one more was seriously injured. Additionally, two U.S. citizens were seriously injured in the head-on collision when Tovar struck their vehicle.
Following the crash, U.S. Border Patrol (USBP) agents encountered a Ford F-150 stopped in traffic near the crash site. The agents directed the driver of the Ford, to turn around and subsequently all its occupants fled on foot into nearby brush. USBP agents were able to locate 12 undocumented noncitizens who bolted from the Ford. After interviewing two of the undocumented noncitizens, USBP agents determined that the occupants of the Dodge and Ford were part of a human smuggling operation that was illegally transporting 20 undocumented noncitizens in the U.S.
Codefendant Ruben Junior Rodriguez-Jaimes, 20, of Bastrop was sentenced last week to 180 months in prison. Rodriguez-Jaimes was arrested on April 7, 2021, in the brush near Eagle Pass, when he was acting as the foot guide for four undocumented noncitizens. Since December 2020, Rodriguez-Jaimes had successfully smuggled 38 migrants into the U.S.
In addition to their imprisonment, Tovar and Rodriguez-Jaimes were each ordered to pay a portion of restitution totaling the amount of $164,701.80.
“The defendants in this case displayed a complete disregard for human life, not only of the migrants they were smuggling, but also of the innocent civilians on the road the day of this incident,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This is but one example of the danger these human smuggling organizations pose to our communities and especially to the migrants they smuggle. We are grateful for the tremendous effort and cooperation of our law enforcement partners at the federal, state and local levels and for their diligence in working to identify all of those whose conduct led to this tragedy.”
“These sentences underscore Homeland Security Investigations’ relentless efforts to identify transnational criminal organizations, which make a profit from smuggling migrants into the United States with total disregard for people who may end up paying the ultimate price,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “HSI is committed to ensuring that those who prey on the innocent face justice.”
Five additional defendants pleaded guilty earlier this year to one count of illegal alien transportation resulting in death: Lauren Michelle Malmquist, aka “Mama” and “Lala,” 34, of Cedar Park; Nicolas Mondragon-Gonzalez, aka “Chayo” and “Flaco,” 35, of Luvianos, Mexico; Veronica Torres-Mendez, 36, of San Antonio; Jennifer Oralia Davis, aka “Paypa,” 41, of San Antonio; and Eduardo Rivera Benitez, aka “Lalo” and “Casper,” 25, of Bastrop. They each face a maximum penalty of life in prison.
The remaining three defendants pleaded guilty to one count of conspiracy to transport aliens: Marco Antonio Hernandez, aka “Temo,” 21, of Paige; Jose Eli Rodriguez, 22, of Austin; and Rogelio Manuel Luna, 34, of Austin. They each face a maximum penalty of 10 years in prison.
HSI, USBP and DPS investigated the case with valuable assistance from the Travis County Sheriff’s Office.
Assistant U.S. Attorney Joshua Banister prosecuted the case.
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District Man Pleads Guilty to Assault with Intent to KillRead the Press Release
WASHINGTON – Jose Avelino Felipe, 45, pleaded guilty to stabbing his female roommate in 2021, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Avelino Felipe pleaded guilty in the Superior Court of the District of Columbia to one count of assault with intent to kill. Superior Court Judge Michael O’Keefe scheduled sentencing for October 22, 2023.
According to the government’s evidence, on December 4, 2021, the defendant and his wife were living in the same apartment as the victim and her husband. That evening, the defendant and the victim’s husband got into a physical altercation in the home. Both men left the home after the altercation. Shortly thereafter, the defendant returned to the home, where the victim remained. The defendant came to her bedroom and asked whether she would call the police. She stated she would not. Nevertheless, the defendant then stabbed the victim twice with a knife, once in the chest, and once in her left shoulder. The defendant fled the apartment before police arrived.
Both the victim and her husband required emergency surgery for their injuries. The victim continues to recover from her injuries.
The Metropolitan Police Department Capitol Area Regional Fugitive Task Force apprehended the defendant on May 23, 2023.
In announcing the plea, U.S. Attorney Graves and Chief Smith commended the work of the Metropolitan Police Department, which investigated the case. He also expressed appreciation for the work of Assistant U.S. Attorney Matthew Covert who investigated and prosecuted the case.
Columbus Resident Charged with Forcibly Assaulting Two Federal OfficersRead the Press Release
COLUMBUS, Ga. – A federal criminal complaint charging a Columbus resident with forcibly assaulting two federal officers as they attempted to take him into custody last week was unsealed today.
Christopher Upshaw, 24, had his initial appearance before U.S. Magistrate Court Judge Stephen Hyles on Aug. 10, and was ordered detained by the Court. Upshaw is charged by criminal complaint with forcibly assaulting, resisting or opposing a federal officer. If convicted, Upshaw faces a maximum 20 years in prison.
According to court proceedings and the criminal complaint, Upshaw was under investigation for alleged drug distribution. On July 5, a federal search warrant was executed on a suspicious package destined for an address in Columbus; agents found 12 vacuum sealed bags of marijuana from Northern California. On July 31, a suspicious package originating from Northern California and addressed to the same location was identified. As part of the investigation, agents observed the suspicious package received and then placed in a Dodge Challenger registered to Upshaw. When deputies attempted to pull the vehicle over, allegedly driven by Upshaw, a high-speed chase ensued, with the driver of the Challenger traveling recklessly through residential neighborhoods and performing illegal and evasive lane changes in heavy traffic. The vehicle also traveled northbound in a southbound lane. The pursuit was terminated by law enforcement due to concerns about public safety, and the driver of the vehicle got away.
On Aug. 4, another suspicious package from Northern California addressed for a residence allegedly associated with Upshaw was identified. Law enforcement, attempting to arrest Upshaw on outstanding arrest warrants for assault and battery, felony malicious wounding and resisting arrest, conducted surveillance on the location that day. At 3:30 p.m., the suspicious parcel was delivered. Approximately 30 minutes later, Upshaw allegedly arrived in his Dodge Challenger, picked up the package, placed it inside his car and got back in the driver’s seat. At this time, 15 law enforcement officers wearing agency-issued body armor with visible insignia approached Upshaw to arrest him on outstanding warrants. Upshaw allegedly began forcibly operating his vehicle to resist the arrest, despite officers’ demands to stop and exit the car. One FBI Task Force Officer attempted to open the driver’s side door and one FBI Agent tried to open the passenger’s side door. Upshaw allegedly accelerated causing his car to strike the FBI Task Force Officer. Simultaneously, because of the vehicle’s acceleration, the FBI Agent on the passenger side was unable to disengage from the door handle and was pushed into a nearby vehicle causing bodily harm. Law enforcement continued chasing Upshaw, who eventually abandoned the car and fled on foot. Upshaw escaped and was captured on Aug. 9.
The case was investigated by FBI, DEA, the U.S. Postal Inspection Service, the Muscogee County Sheriff’s Office and the Coweta County Sheriff’s Office.
Assistant U.S. Attorney Christopher Williams is prosecuting the case.
A complaint is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
City of Gary Receives $1 Million in DOJ FundingRead the Press Release
HAMMOND – United States Attorney Clifford D. Johnson and Gary Police Chief Anthony Titus announce that the City of Gary have been awarded $1 Million Dollars in Byrne Discretionary Community Project Funding.
The City of Gary received notice of this funding late August 10, 2023, from the Department of Justice, Office of Justice Programs.
The funding will be utilized for permanent mounted LPR cameras, stationery video surveillance cameras & associated reoccurring costs. This technology and equipment will continue to be a driving force and deterrent within the city community. The benefits of having this technology and equipment will build on officer safety, engaging the officers to be proactive, developing the situation before occurrence, focusing on high crime targeted areas and connecting with the residents will make them feel safer knowing the technology is there and with assistance from more police engagement.
United States Attorney Clifford D. Johnson said, “A key component to increasing public safety in local communities is having the funding to acquire and deploy available technology. The Department of Justice, through its grant programs, is committed to assisting local governments, as shown by this 1 million dollar grant to the City Of Gary, in funding these modernization efforts. My office will continue to work with the Gary Police Department to increase safety for City residents and visitors.”
“It’s not the dollar amount of the grant as much as it is the relationship with our Federal partners that I’m pleased about today. The citizens of Gary are better served when all law enforcement entities come together with a common goal,” said Gary Police Chief Anthony Titus. “This $1 million dollar grant will help the Gary Police Department acquire technology that will be used to serve the citizens of Gary. It will enhance our already robust LPR and mobile video camera systems. A heartfelt thanks to the Department of Justice, and everyone involved in helping the City of Gary secure this funding.”
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Canadian Truck Driver Arrested with Almost 400 Kilograms of Cocaine, Charged with Drug ConspiracyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Ahmed El Kady, 37, of Hamilton, Ontario, Canada, was arrested and charged by criminal complaint with possession with intent to distribute five kilograms or more of cocaine, and conspiracy to possess with the intent to distribute, and to distribute, five kilograms or more of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the complaint, on August 7, 2023, El Kady made entry into the United States at the Ambassador Bridge Port of Entry in Detroit, Michigan, driving a commercial truck (Subject Vehicle) without a commercial trailer attached. El Kady advised CBP Officers that he was picking up a trailer locally in Detroit. Investigators surveilled El Kady and the Subject Vehicle to the TA Travel Center in Dexter, Michigan, where, over the next two days, he appeared to make some sort of exchange with the drivers of two other commercial trucks. Investigators continued to surveil El Kady as he traveled to Ohio before returning to Dexter, Michigan and making another exchange with the driver of a third commercial truck. El Kady then traveled to Buffalo, NY, arriving on evening of August 9, 2023, and spending the night at local truck stop.
On August 10, 2023, in the early afternoon, El Kady’s wife Maja Tambur arrived at the truck stop. El Kady and Tambur got into Tambur’s vehicle, traveling to Niagara Falls, where they made frequent stops throughout the area and were observed driving evasively in a manner consistent with individuals conducting counter surveillance. After their attempts to lose investigators from their surveillance, El Kady and Tambur attempted to return to the truck stop to the Subject Vehicle. A federal search warrant was executed on the Subject Vehicle, during which approximately 386 kilograms of suspected cocaine were seized, and El Kady was taken into custody.
El Kady made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on August 14, 2023, at 11 a.m.
The complaint is the result of a joint investigation by Homeland Security Investigations, under the direction of Special Agent-in Charge Matthew Scarpino, the Royal Canadian Mounted Police, and Canada Border Services Agency. Additional assistance was provided by Customs and Border Protection, CBP Air and Marine Unit, U.S. Border Patrol, the Erie County Sheriff’s Office, the Buffalo Police Department, the North Tonawanda Police Department, the Cheektowaga Police Department, the Ontario Provincial Police, Peel Police, and Toronto Police Services.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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California man pleads guilty to sexually exploiting minor, possessing child pornography after traveling to Ohio to engage in sex acts with a 14-year-oldRead the Press Release
COLUMBUS, Ohio – A California man pleaded guilty in U.S. District Court in Columbus today to sexually exploiting a minor and possessing child pornography.
Kameron E. Tolbert, 28, of Suisin City, California, admitted to traveling from California to Ohio to engage in sex acts with a 14-year-old female he met online.
According to court documents, on Aug. 22, 2022, law enforcement was dispatched to a home in Jackson, Ohio. Tolbert had jumped through the minor victim’s bedroom window when he was discovered in the bedroom with the victim. He fled on foot and then by vehicle.
The next day, the principal at the victim’s local high school identified Tolbert’s vehicle in the school parking lot and notified a school resource officer who detained Tolbert at the school.
Tolbert had first met the victim online six months prior and began chatting with her via different social media applications, including Discord. He admitted to flying from Sacramento, California, to Columbus, Ohio, on Aug. 20, 2022, to meet the victim at her home in Jackson. Tolbert parked nearby and snuck into the victim’s home through her bedroom window on August 21 and August 22 to engage in sexual intercourse with her.
A forensic examination of Tolbert’s digital devices revealed more than 500 images and 1,100 videos depicting child sexual abuse of both prepubescent and pubescent minors. Images and videos of the 14-year-old minor victim engaged in sex acts with Tolbert were also recovered.
As part of the plea, the parties involved have recommended a sentence of 15 to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati division; and Jackson County Sheriff Tedd Frazier announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.
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Bloomington Woman Sentenced to Nearly 5.5 Years in Federal Prison for $5.5 Million International COVID Fraud SchemeRead the Press Release
INDIANAPOLIS- Oluwatobi Seton, 28, of Bloomington, Indiana, has been sentenced to nearly 5.5 years in federal prison after pleading guilty to wire fraud, aggravated identity theft, and conspiracy to commit money laundering.
According to court documents, Seton conspired with partners in Nigeria to obtain unemployment and other benefits during the COVID-19 pandemic from state and federal governments by falsely applying for such benefits using the stolen identities of others. Seton and her co-conspirators obtained personal identifiable information of their victims, which they used to open GoBank accounts and obtain debit cards. The conspirators then submitted false and fraudulent employment applications to unemployment agencies throughout the United States in the victims’ names and had the stolen benefits monies deposited into their fraudulent GoBank accounts and onto debit cards. Seton then used fake driver’s licenses in the victims’ names to access the proceeds of the fraud scheme. At the time of her arrest, Seton had over 1,400 GoBank cards and ten driver’s licenses with different names in her possession.
In total, the conspiracy resulted in at least $5,475,459.00 in actual and attempted losses to state unemployment offices and other state and federal agencies: Seton kept a portion of the proceeds for herself and sent the remainder to her conspirators, including her business partners in Nigeria. Investigators seized over $550,000 in cash and GoBank accounts linked to the scheme during the investigation.
“This international criminal enterprise conspired to steal millions of dollars meant to help our citizens as we fought through the unprecedented pandemic,” said United States Attorney for the Southern District of Indiana, Zachary A. Myers. “Fraudsters like this defendant who sought to exploit the urgent need to provide pandemic relief must be held accountable. I commend the work of our partners at the FBI, Bloomington Police Department, and Monroe County Sheriff’s Office, along with our federal prosecutors, to identify criminals like this defendant and ensure that they pay the price for their crimes.”
“Profiting from programs meant to help those in need is a despicable and unacceptable crime in and of itself. But this defendant took it a step further and stole identities to perpetrate this fraud and caused those victims immeasurable time in an effort to clear their names,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our local law enforcement partners will continue to identify and aggressively pursue those who commit fraud and ensure they are held accountable for their actions.”
The Federal Bureau of Investigation, Bloomington Police Department, and Monroe County Sheriff’s Office investigated this case. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Seton be supervised by the U.S. Probation Office for 1 year following her release from federal prison and pay restitution in the amount of $4,309,027.00.
U.S. Attorney Myers thanked Assistant United States Attorney MaryAnn T. Mindrum, who prosecuted this case.
On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID‑19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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Arvin, California, Man Sentenced for Facilitating a Drug CrimeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that United States District Judge Karen E. Schreier has sentenced a Arvin, California, man convicted of Use of a Communication Facility in the Commission of a Drug Trafficking Crime. The sentencing took place on August 11, 2023.
Eduardo Acosta, 24, was sentenced to 37 months custody in federal prison, followed by one year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Acosta was indicted for Use of a Communication Facility in the Commission of a Drug Trafficking Crime by a federal grand jury in June 2022. He pleaded guilty on May 26, 2023.
Acosta resides in California. His acquaintance, Victor Alfonso Leon-Pacheco, was in custody in Oklahoma. Acosta accepted payments for drug proceeds that were wired through money exchange services. This occurred multiple times between September 2021 and January 2022. Acosta also sent packages containing controlled substances to South Dakota at the direction of Leon-Pacheco. Acosta and Leon Pacheco utilized cell phones to communicate, which are also considered to be communication facilities.
This case was investigated by the United States Postal Inspection Service, the Unified Narcotics Enforcement Team, which is local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Acosta will report to the Bureau of Prisons in September.
Appointment of a Special CounselRead the Press Release
Attorney General Merrick B. Garland announced today the appointment of U.S. Attorney David Weiss to serve as Special Counsel for the ongoing investigation and prosecutions referenced and described in United States v. Robert Hunter Biden, as well as for any other matters that arose or may arise from that investigation. Mr. Weiss was nominated by the former president in 2017 and confirmed by the U.S. Senate in 2018. In 2021, he was asked to remain as U.S. Attorney for the District of Delaware, where he led this ongoing investigation. On Tuesday, Aug. 8, Mr. Weiss requested to be appointed as Special Counsel, and today the Attorney General made that appointment.
“On Tuesday of this week, Mr. Weiss advised me that in his judgment, his investigation has reached a stage at which he should continue his work as a Special Counsel, and he asked to be so appointed,” said Attorney General Garland. “Upon considering his request, as well as the extraordinary circumstances relating to this matter, I have concluded it is in the public interest to appoint him as Special Counsel. This appointment confirms my commitment to provide Mr. Weiss all the resources he requests. It also reaffirms that Mr. Weiss has the authority he needs to conduct a thorough investigation and to continue to take the steps he deems appropriate independently, based only on the facts and the law.”
The Attorney General also said, “As Special Counsel, he will continue to have the authority and responsibility that he has exercised previously to oversee the investigation and decide where, when, and whether to file charges. The Special Counsel will not be subject to the day-to-day supervision of any official of the Department, but he must comply with the regulations, procedures, and policies of the Department … Today’s announcement affords the prosecutors, agents, and analysts working on this matter the ability to proceed with their work expeditiously, and to make decisions indisputably guided only by the facts and the law … I am confident that Mr. Weiss will carry out his responsibility in an even-handed and urgent matter, and in accordance with the highest traditions of this Department.”
Appointment Order of David WeissAlbert Lea Woman Sentenced to Prison for Embezzling over $200,000 in Public Housing Rent PaymentsRead the Press Release
MINNEAPOLIS – An Albert Lea woman has been sentenced to a year and one day in prison, three years of supervised release, and is required to pay $213,217 in restitution for stealing public housing rent payments, announced U.S. Attorney Andrew M. Luger.
According to court documents, between January 2010 and July 18, 2018, Marcie Marie Thumann, 45, worked as a bookkeeper for the Albert Lea Housing and Redevelopment Authority (HRA), a government program that received both federal and state funding to remedy the shortage of available low-incoming housing units. Thumann, who was responsible for recording and reconciling payments to the HRA, received tenants’ rent payments via cash, check, or money order. During her tenure as the HRA’s bookkeeper, Thumann routinely embezzled HRA rent payments for her own personal use and benefit. She did so by pocketing cash payments and altering the payee information on payments made by check and money order. Thumann then manipulated the HRA’s computer system to conceal the money she stole, avoid detection, and prolong her fraud scheme. In total, Thumann stole at least $213,217 from the Albert Lea HRA.
Thumann pleaded guilty on October 12, 2022, to one count of theft from a program receiving federal funds. She was sentenced on August 9, 2023, before Senior Judge David S. Doty in U.S. District Court.
This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development – Office of the Inspector General and the Albert Lea Police Department.
Assistant U.S. Attorney Jordan L. Sing prosecuted the case. Assistant U.S. Attorney Erin Secord and Paralegal Specialist Jessica Scott handled the seizure and forfeiture of assets.
Administrator of ‘Bulletproof’ Webhosting Domain Charged in Connection with Facilitation of NetWalker RansomwareRead the Press Release
An indictment was unsealed yesterday in Tampa, Florida, charging a Polish national with computer fraud conspiracy, wire fraud conspiracy, and international money laundering in connection with the provision of “bulletproof” webhosting services that facilitated the operation of ransomware attacks and the subsequent laundering of the illicit proceeds.
According to court documents, Artur Karol Grabowski, 36, operated a webhosting company named LolekHosted. Through LolekHosted, Grabowski provided “bulletproof” webhosting services, which is secure webhosting designed to facilitate malicious and criminal activities, including ransomware, brute-force attacks, and phishing. Grabowski allegedly facilitated the criminal activities of LolekHosted clients by allowing clients to register accounts using false information, not maintaining Internet Protocol (IP) address logs of client servers, frequently changing the IP addresses of client servers, ignoring abuse complaints made by third parties against clients, and notifying clients of legal inquiries received from law enforcement. Grabowski registered the domain “LolekHosted.net” in 2014, and advertised that its services were “bulletproof,” provided “100% privacy hosting,” and allowed clients to host “everything except child porn.”
The NetWalker ransomware was one of the ransomware variants facilitated by LolekHosted. The NetWalker ransomware was deployed on approximately 400 victim company networks, including municipalities, hospitals, law enforcement and emergency services, school districts, colleges, and universities, which resulted in the payment of more than 5,000 bitcoin in ransoms (currently valued at approximately $146 million). LolekHosted clients used its services to execute approximately 50 NetWalker ransomware attacks on victims located all over the world, including in the Middle District of Florida. Specifically, clients used the servers of LolekHosted as intermediaries when gaining unauthorized access to victim networks, and to store hacking tools and data stolen from victims.
On Aug. 8, U.S. authorities seized LolekHosted.net, the domain name LolekHosted used for nearly a decade. Visitors to LolekHosted.net will now find a seizure banner that notifies them that the domain name has been seized by federal authorities. The U.S. District Court for the Middle District of Florida issued the seizure warrant.
If convicted on all counts, Grabowski faces a maximum penalty of 45 years in prison. The indictment also notifies Grabowski that the United States is seeking an order of forfeiture in the amount of $21.5 million, the proceeds of the charged criminal conduct. Grabowski remains a fugitive.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI Tampa Field Office is investigating the case, with assistance from the IRS Criminal Investigation Cyber Crimes Unit.
Trial Attorney Sonia V. Jimenez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky for the Middle District of Florida are prosecuting the case.
Substantial assistance was provided by the Justice Department’s Office of International Affairs and the FBI’s Legal Attaché Office in Warsaw, Poland. Polish authorities also provided substantial assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
10 August 2023
Wood County Man Sentenced for Unlawfully Obtaining Unemployment and COVID-19 BenefitsRead the Press Release
CHARLESTON, W.Va. – Daniel Satow, 33, of Davisville, was sentenced today to five years of federal probation and ordered to pay $21,238 in restitution for unlawfully obtaining unemployment benefits, including supplementary funds provided by the Federal Pandemic Unemployment Compensation Program (FPUC) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and statements made in court, on December 20, 2020, Satow logged on to the WorkForce West Virginia website and applied for unemployment compensation. Satow admitted he was employed at the time and that he falsely claimed when he applied that he had not been gainfully employed since September 9, 2020, and that the coronavirus pandemic prevented him from working.
Satow’s fraudulent application was approved and he received a debit card loaded with unemployment compensation benefits through the mail at his Davisville residence on January 5, 2021. Satow admitted that he used the debit card to make purchases for himself while knowing he had obtained the benefits fraudulently.
Satow further admitted that he continued to access the WorkForce West Virginia website for 26 consecutive weeks and each time falsely certified that he remained entitled to unemployment compensation benefits. WorkForce West Virginia relied on Satow’s false answers and loaded additional benefits onto the debit card weekly. These benefits included supplementary funds provided by the FPUC program. Satow admitted that he continued to use the debit card to make personal purchases.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided for a temporary emergency increase in unemployment compensation benefits, referred to as the Federal Pandemic Unemployment Compensation Program (FPUC). Although these benefits are administered by the states, they are funded in part by the federal government.
United States Attorney Will Thompson made the announcement and commended the investigative work of the WorkForce West Virginia Integrity Section and the Litigation Financial Analyst with the U.S. Attorney’s Office.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-56.
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West Virginia man arrested for threatening Pittsburgh federal juryRead the Press Release
WHEELING, WEST VIRGINIA – A Follansbee, West Virginia, man was arrested today on criminal charges related to his alleged obstruction and witness tampering in a federal trial.
Hardy Carroll Lloyd, age 45, was taken into custody early this morning without incident. According to the criminal complaint, Lloyd began commenting online about the federal hate crimes trial in Pittsburgh, Pennsylvania, of Robert Bowers, the Tree of Life Synagogue mass shooter. Lloyd, a self-proclaimed “reverend” of a white supremacy movement, made threatening social media posts, website comments, and emails towards the jury and witnesses during the trial. Lloyd also placed or had others place stickers in predominantly Jewish areas of Pittsburgh, directing people to the website containing his threats and antisemitic messages.
“Jury trials are a hallmark of the American justice system and attempts to intimidate witnesses or jurors will be met with a strong response,” said United States Attorney William Ihlenfeld. “The use of hateful threats in an effort to undermine a trial is especially troubling.”
"The safety and security of all citizens in our communities is a priority for the FBI," said FBI Pittsburgh Special Agent in Charge Mike Nordwall. "Threats of violence used to intimidate or influence a community or jury cannot and will not be tolerated. The FBI makes it a priority to investigate crimes based on religious bias. In this case, the Jewish community was specifically targeted by these threats. I want to thank the community for sharing information that helped lead to today's arrest."
Lloyd is charged with obstruction of the due administration of justice, transmitting threats in interstate and foreign commerce, and witness tampering. He faces up to 10 years in prison for the obstruction charge, up to five years for the threats charge, and up to 20 in prison for the tampering charge. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The Federal Bureau of Investigation is investigating.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Hartford Man Sentenced to 30 Months in Federal Prison for Gang-Related Fentanyl DistributionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERTO DIAZ, also known as “Dragon Eyes,” 53, of West Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by five years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, including Diaz. Diaz sold the drug to his own customer base.
On June 8, 2022, a grand jury returned an indictment charging Diaz, Feliciano, and 14 others with various narcotics distribution and firearm possession offenses.
Diaz was arrested on June 9, 2022. At the time of his arrest, he possessed 63 wax sleeves of fentanyl.
On February 22, 2023, Diaz pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl. He is currently detained.
Feliciano pleaded guilty and awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Robert S. Ruff. through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Waterloo Man Sent to Federal Prison for Shooting at an Occupied HomeRead the Press Release
A man who discharged a gun at an occupied house was sentenced today to 46 months in federal prison.
Montrell Anderson, age 20, from Waterloo, Iowa, received the prison term after an April 3, 2023 guilty plea to possession of a firearm by a drug user and possession of a stolen firearm.
Information at the sentencing hearing showed that on April 24, 2022, Anderson twice shot a stolen gun into a neighboring occupied house, nearly hitting one of the residents. At the time, he was under the influence of marijuana. Five months later, in September 2022, officers found three more guns belonging to Anderson. Two of the firearms were stolen. Anderson’s urine tested positive for marijuana metabolites, opiates, and benzodiazepines.
Anderson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Anderson was sentenced to 46 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Anderson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and Special Assistant United States Attorney Devra Hake, and it was investigated by the Waterloo Police Department and Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2012.
Follow us on Twitter @USAO_NDIA.
Warwick, ND, Man Charged with Sexual Abuse and Materials Involving Sexual ExploitationRead the Press Release
FARGO - United States Attorney Mac Schneider announced that a federal grand jury has indicted Jordain Jaden Smith, aka Jordain Thompson, age 23 of Warwick, ND, for Aggravated Sexual Abuse by Force, Sexual Abuse of an Incapacitated Victim, Possession of Materials Involving the Sexual Exploitation of Minors, and Sexual Abuse of a Minor.
Smith appeared for an initial appearance and arraignment today. Smith is charged with five counts alleging Smith sexually abused two minor females and possessed materials involving the sexual exploitation of one of the minors. The sexual abuse alleged in the Indictment occurred within the boundaries of the Spirit Lake Reservation. If convicted, the two highest charges carry a maximum sentence of life in prison.
Smith has entered not guilty plea to matters alleged in the Indictment and an initial trial date has been scheduled for October 3, 2023.
Grand jury indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), helps federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Federal Bureau of Investigation with assistance from: Bureau of Indian Affairs North Dakota Bureau of Criminal Investigation, Grand Forks Police Department, Internet Crimes Against Children Task Force and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Lori H. Conroy assigned to the case.
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Venezuelan Men Plead Guilty to High Seas 1400kg Cocaine ConspiracyRead the Press Release
NORFOLK, Va. – Two Venezuelan citizens pleaded guilty today and yesterday to conspiracy to distribute cocaine on board a vessel in international waters.
According to court documents, on May 16, 2023, Juan Milano, 50, and Carlos Marcano, 31, were found with two others by a U.S. Navy ship and its Naval and Coast Guard personnel on board a go-fast boat in international waters while in possession of over 1400 kilograms of cocaine. The go-fast vessel was without nationality, and none of its crew declared their nationality, the flag nationality of the vessel, or claimed to be its master.
Milano is schedule to be sentenced on December 14 and Marcano, who pleaded yesterday, is scheduled to be sentenced on December 13. They each face a mandatory minimum of 10 years in prison and a maximum of life imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Milano and Marcano were prosecuted as part of a joint interagency partnership between the U.S Coast Guard, U.S. Navy, the Department of Justice including the Drug Enforcement Administration, the Department of Homeland Security, and select U.S. Attorney offices in the United States and its territories.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; William P. Hicks II, Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, made the announcement after U.S. District Senior Judge Raymond A. Jackson.
The Narcotics and Dangerous Drug Section of the Department of Justice assisted in this investigation. The Joint Interagency Task Force South (JIATF-S), a United States multiservice, multiagency task force, also assisted in this investigation.
Assistant U.S. Attorney Kevin M. Comstock is prosecuting the case.
Congress has declared drug trafficking on vessels in international waters a serious international problem universally condemned and one that presents a specific threat to the security and societal well-being of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-85.
U.S. Forest Service Wins Civil Case Supporting Forest Restoration Projects in the Fremont-Winema National ForestRead the Press Release
MEDFORD, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that an order granting summary judgment in favor of the U.S. Forest Service was entered in a civil case challenging the agency’s commercial thinning of timber conducted as part of forest restoration efforts in the Fremont-Winema National Forest.
In December 2021 and May 2022, after an environmental effects review and public outreach, the Forest Service approved three restoration projects covering more than 91,000 acres in the Fremont-Winema National Forest designed to reduce the risk of severe wildfire in dry forestlands and improve degraded forest health and habitats. To achieve the agency’s restoration goals, it proposed various activities in the three projects including, but not limited to, small tree thinning, prescribed burning, juniper cutting, meadow enhancement, stream restoration, and the commercial sale of select forest products.
As part of each of the three restoration projects, the Forest Service approved between 3,000 and 16,000 acres of commercial thinning. Commercial and non-commercial thinning are longstanding timber management tools the Forest Service uses to improve timber stand growth and reduce fire hazard through the removal of select trees in overly dense and deteriorated stands. The Fremont-Winema National Forest has recently suffered from major wildfires including the 400,000-acre Bootleg Fire in 2021.
On July 12, 2022, Oregon Wild and WildEarth Guardians, two non-profit corporations, brought suit challenging the Forest Service’s use of commercial thinning as part of the restoration projects, alleging violations of the Administrative Procedure Act (APA) and the National Environmental Policy Act (NEPA).
On August 4, 2023, U.S. District Court Judge Michael J. McShane issued a summary judgment order concluding that the Forest Service had not in fact violated APA or NEPA. The court found the Forest Service’s use of NEPA procedures to approve the projects was lawful and reasonably determined.
The U.S. Forest Service was represented in this matter by Sean E. Martin, Assistant United States Attorney for the District of Oregon.
Two Men Arrested After Another Pleads Guilty in $470,000 Kickback Scheme Involvintg Jersey City Condo ComplexRead the Press Release
NEWARK, N.J. – Two New Jersey men were charged, and another previously pleaded guilty, for participating in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced today.
Ranaldo Bennett, 40, of Jersey City, and Jonathan Smith, 56, of Montclair, New Jersey, were each charged in a three-count complaint with conspiracy to commit wire fraud and money laundering. Smith was arrested earlier today and will have his initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court. Bennett was arrested earlier in the week and had his initial appearance before Judge Kiel on Aug. 7, 2023.
Nathaniel Obedos, 56, of Jersey City, pleaded guilty on July 6, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with conspiracy to commit wire fraud.
According to the publicly filed documents and statements made in Court:
From November 2018 through October 2020, Obedos conspired with Bennett and Smith to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company in exchange for kickbacks from Obedos. Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. In total, the complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and over $10,700 in kickbacks to Smith.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years, and the money laundering charges each carry a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Obedos’ sentencing is scheduled for Nov. 9, 2023.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the plea and arrests.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations against Bennett and Smith are merely accusations, and they are presumed innocent unless and until proven guilty.
obedos.information.pdf
bennetsmith.complaint.pdfTwo Florida Men Charged with Orchestrating $12 Million Advance-Fee SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOSEPH MALVASIO and GREGG MARCUS, a/k/a “Gregg Pierce,” with running a years-long advance-fee scheme through which they defrauded hundreds of victims of at least approximately $12 million. MALVASIO and MARCUS were arrested this morning will be presented later today in the Southern District of New York.
U.S. Attorney Damian Williams said: “As alleged, Joseph Malvasio and Gregg Marcus perpetrated an advance-fee scheme whose victims were defrauded into paying millions of dollars for loans they needed but never received. Instead of keeping their promises to the victims, Malvasio and Marcus allegedly used the victims’ money to fund their lavish lifestyles.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: "The defendants are alleged to have operated a fraudulent loan scheme where they collected fees from victims, however, had no intention of providing such loans. The fees were then used to fund luxury personal expenses. Ensuring that financial fraudsters are held accountable in the criminal justice system remains a top priority of the FBI."
According to the allegations contained in the Indictment:[1]
From at least in or about March 2017 through at least in or about August 2023, JOSEPH MALVASIO and GREGG MARCUS operated an advance-fee scheme that defrauded hundreds of victims of at least approximately $12 million. MALVASIO and MARCUS operated this fraudulent scheme through their ownership and operation of a business called Global Capital Partners Fund LLC (“GCPF”). MALVASIO and MARCUS falsely represented that GCPF was a legitimate business that would provide loans to individuals who were interested in funding for private commercial projects. Instead, MALVASIO and MARCUS defrauded victims, collecting thousands of dollars in fees from each victim without intending to issue a loan.
MALVASIO and MARCUS typically collected several fees from each victim, including a “letter of intent” fee, a “commitment” fee, and an “appraisal” fee. Each fee ranged from a few thousand dollars to tens of thousands of dollars. Once MALVASIO and MARCUS collected these fees, they informed each victim that he or she would not receive a loan and then refused to refund any of the fees each victim had paid.
Once MALVASIO and MARCUS received money from victims, they transferred the funds to their personal accounts and used them to make payments in the tens of thousands of dollars to Porsche, BMW, and Modern Yachts LLC, among other dealers of luxury goods. MALVASIO and MARCUS also used victim funds to make payments in the hundreds of thousands of dollars for personal credit card expenses.
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MALVASIO, 65, of Fort Lauderdale, Florida, and Bridgehampton, New York, and MARCUS, 57, of Bay Harbor Islands, Florida, are each charged with one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution.
The charges contained 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. Malvasio and Marcus Indictment