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10 August 2023
Two California Residents Found Guilty of Conspiring to Launder Drug Kingpin’s CashRead the Press Release
DETROIT – A federal jury in Detroit found two California residents guilty yesterday of conspiring to launder money, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge of Drug Enforcement Administration, and Charles E. Miller, Special Agent in Charge of the Internal Revenue Service, Detroit Field Divisions.
Convicted were Teeauna White, 37, and Robin Herndon, 43. The four-week trial was conducted before United States District Judge Terrence Berg.
White and Herndon, both of California, participated in a money laundering conspiracy that was led by convicted drug trafficker Maurice McCoy. McCoy was sentenced in March 2023 to 22 years after pleading guilty to drug and money laundering conspiracies.
Evidence presented during the trial established that McCoy kept distribution hubs in multiple cities across the U.S., including Novi, Michigan where the organization stored more than 30 kilograms of fentanyl and over half a million dollars that the DEA seized. At the time it was the largest fentanyl seizure in Michigan and one of the largest in the U.S. The seizure was the result of agents’ creative investigative work after they traced a UPC code off a Sony PlayStation box that was used to deliver heroin to a drug customer. That UPC code led to the Novi condominium where the PlayStation was active. Agents identified couriers who crisscrossed the U.S. delivering kilograms, transporting bulk currency, or laundering money, leading to multiple arrests and additional seizures in Indianapolis, Indiana, and Baltimore, Maryland where the organization also operated. All identified couriers and large-scale drug customers who were indicted pleaded guilty.
The evidence further established that White, who lived with McCoy, lived lavishly off the drug conspiracy’s proceeds, purchasing a Bentley and Mercedes, expensive jewelry, and a half a million-dollar home in the greater Los Angeles area. Herndon assisted McCoy and White by opening multiple bank accounts through which money from the drug conspiracy was used to purchase McCoy and White’s home.
“I salute the innovative investigative work of our federal law enforcement partners at the DEA and IRS that unraveled this drug conspiracy and helped tracked down all of the individuals who profited from the conspiracy,” stated U.S. Attorney Dawn Ison. “We will not only seek to hold those accountable who traffic in drugs, but also those who help them hide or launder the illicit proceeds of their crimes.”
Today’s announcement should serve as a clear warning to anyone who would use the cover of legitimate business to conceal proceeds derived from narcotics trafficking. Money launderers will be held to the same level of accountability as the drug traffickers they’re partnering with,” said Special Agent in Charge Orville.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Charles Miller, Special Agent in Charge, IRS Criminal Investigation, Detroit Field Office. “Without these ill-gotten gains, the traffickers cannot finance their organizations. IRS-CI will continue to provide our financial expertise in narcotics investigations, as we work alongside the US Attorney’s Office and our law enforcement partners to bring criminals to justice.”
Sentencing is pending for both defendants.
The investigation of the case was conducted by the Organized Crime Drug Enforcement (OCDETF) Southeast Regional Strike Force. Assistant United States Attorneys Andrea Hutting, Craig Wininger, and Gjon Juncaj prosecuted the case for the United States.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Tsayatoh Man Pleads Guilty to Federal Firearms ViolationRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Rumaldo Peshlakai pled guilty to being a felon in possession of firearms and ammunition. Peshlakai, 43, of Tsayatoh, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to court documents, on Sept. 23, 2021, Peshlakai and Jane Doe were involved in a domestic dispute at a residence in Tsayatoh. Afterward, Peshlakai left the residence in Doe’s vehicle with their four children and multiple firearms and ammunition, driving into a wooded area near the residence. Peshlakai stated if any officers tried to stop him, he would shoot. An Amber Alert was issued for the four children in New Mexico and Arizona.
Officers from the Navajo Police Department and the Federal Bureau of Investigation located the vehicle in the wooded area and identified footprints leading away from the vehicle. Inside the vehicle was an empty box of ammunition and a single round. Officers tracked the footprints for six miles to an abandoned housing area where it appeared another vehicle arrived and picked up Peshlakai and the four children. That evening, Peshlakai contacted NPD Dispatch and informed them the children were at a relative’s house. Peshlakai was not at the relative’s house and would not give his location but agreed to turn himself in to the FBI the next morning.
The children, who were unharmed, were recovered by law enforcement, and Peshlakai was arrested on Sept. 24. Law enforcement later traced Peshlakai’s steps over the six-mile walk and unearthed a gun case that Peshlakai had buried while evading police. It contained a rifle, two pistols, and ammunition. Additional investigation revealed that Peshlakai abandoned the vehicle and took the case, then buried and concealed the case while being pursued by law enforcement. In a later interview, he claimed not to know the location of any firearms and denied possessing them at all.
Peshlakai was previously convicted in 2001 of assault by striking, beating or wounding and assault resulting in serious bodily injury, and in 2006 for being a felon in possession of ammunition. As a previously convicted felon, Peshlakai cannot legally possess firearms or ammunition.
At sentencing, Peshlakai faces up to 10 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office and the Navajo Police Department investigated this case with assistance from the FBI Phoenix Field Office, United States Marshals Service, New Mexico State Police, Navajo Police Department, McKinley County Sheriff's Office and Bernalillo County Sheriff's Office. Assistant U.S. Attorneys Alexander F. Flores and Kimberly Bell are prosecuting the case.
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23-178
Thomson, Illinois Man Sentenced to 270 Months in Prison Related to Conspiracy to Distribute MethRead the Press Release
DAVENPORT, Iowa – A Thomson, Illinois man was sentenced on August 8, 2023 to more than 22 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine or 500 grams and more of a mixture and substance containing methamphetamine.
According to public court documents, Clifford Don Smith, 56, was identified by law enforcement as a distributor for large quantities of methamphetamine in and around the Clinton, Iowa area since 2021. In total, Smith was held responsible for 8.99 kilograms of ice methamphetamine.
After completing his term of imprisonment, Smith will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the U.S. Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, and the Clinton Police Department.
Texas Men Sentenced to Federal Prison for Paducah ATM TheftRead the Press Release
Paducah, KY – Two Houston, Texas men were sentenced yesterday to federal prison for their roles in a theft from a Paducah ATM.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the Federal Bureau of Investigation, and Chief Brian Laird of the Paducah Police Department made the announcement.
According to court documents, Otis J. Gibson, 24, was sentenced to 38 months in prison, followed by 3 years of supervised release, for bank larceny and interstate transportation of stolen funds. Eric J. Rhodes, 25, was sentenced to 12 months and one day in prison, followed by 2 years of supervised release, for bank larceny and interstate transportation of stolen funds. On June 10, 2020, Gibson, Rhodes, and unnamed co-conspirators stole cash from a stand-alone ATM located on Highway 60 near the Kentucky Oaks Mall in Paducah. The group used a stolen truck, chain, and pry bars to break open the ATM. Over $150,000 was stolen from the machine. They then traveled across state lines with the stolen cash. There is no parole in the federal system.
Gibson was also indicted by a federal grand jury in Missouri for his role in a January 9, 2020, ATM theft in Saint Louis. That indictment was transferred to the Western District of Kentucky. He was also sentenced today to a concurrent prison sentence for bank larceny charged in the Missouri indictment.
Gibson and Rhodes were ordered to pay $158,127 in restitution for bank larceny in Paducah. Gibson was ordered to pay an additional $98,748 for bank larceny in Saint Louis.
The FBI and the Paducah Police Department investigated the case.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Texas Man Who Supplied Virginia Drug Network Sentenced to 25 YearsRead the Press Release
ABINGDON, Va. – A Texas man, who a jury convicted in April of trafficking large quantities of high-purity methamphetamine from Mexico into Southwest Virginia, was sentenced today to 25 years in federal prison.
Alonso Cantu-Cantu, 46, of Houston, was the major source of supply for a drug conspiracy that distributed more than 33 kilograms of crystal methamphetamine and 6 kilograms of cocaine into Southwest and Central Virginia through a multi-jurisdictional drug trafficking organization.
In April, a jury convicted Cantu-Cantu of conspiracy to distribute and possession with the intent to distribute methamphetamine.
Evidence presented at trial showed that Cantu-Cantu received methamphetamine in 55-gallon drums that had been transported into the United States in water tankers directly from sources in Mexico. Cantu-Cantu then directed the drugs through distributors from Indiana, who ultimately distributed down the supply chain throughout the Western District of Virginia, from Harrisonburg to Bristol, Virginia. Many of these transactions were orchestrated through another major drug trafficker who was incarcerated in multiple Virginia prisons throughout the conspiracy.
In all, the estimated street value of the methamphetamine and cocaine distributed during the course of the conspiracy was more than $1.4 million. Over 33 kilograms of methamphetamine, 125.4 grams of heroin, 94 grams of cocaine, and 7 firearms were seized, and 26 defendants have now been convicted over the course of the six-year investigation, which started with the investigation of street level dealers in the Smyth County, Virginia, area.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Special Agent in Charge Jared Forget of the DEA’s Washington Division made the announcement today.
This investigation was led by the Drug Enforcement Administration-Washington Field Division’s Bristol Post of Duty with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County, Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Lena L. Busscher prosecuted the case for the United States.
Tech Executive Admits Participating in $150 Million Fraud on QualcommRead the Press Release
NEWS RELEASE SUMMARY – August 10, 2023
SAN DIEGO – Sanjiv Taneja, the former CEO of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today for his role in a massive fraud.
Taneja of Cupertino, California, pleaded guilty to one count of money laundering related to a $1.5 million transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Taneja admitted that he and co-defendants Karim Arabi, Ali Akbar Shokouhi, and others schemed to hide Arabi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm. In that regard, Taneja admitted that he asked Arabi for performance numbers for Qualcomm’s existing technology to try to improve Abreezio’s marketing pitch, and that he even called Arabi by a different name in text messages to obscure Arabi’s involvement in Abreezio. According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in cash in October 2015.
Taneja acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Taneja knew.
In his plea agreement, Taneja also admitted that Karim Arabi directed him to delete emails concerning the scheme once Qualcomm started investigating the Abreezio transaction, although Taneja was later able to recover the emails.
“Fraud and deceit undermine legitimate businesses and the marketplace, whether they victimize small businesses or multinational corporations and their shareholders,” said Acting U.S. Attorney Andrew R. Haden. “This office will seek justice against wrongdoers, big and small alike.”
“Crimes like the one supported by Mr. Taneja and his co-conspirators threaten the economy at every level,” said FBI San Diego Field Office Acting Special Agent in Charge Jamie Arnold. “The FBI is committed to working with its law enforcement partners to ensure that every criminal taking part in corporate fraud is investigated and arrested.”
“Mr. Taneja was part of an elaborate conspiracy to steal tens of millions of dollars from a major technology company and a complex scheme to launder the proceeds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation Los Angeles field office. “IRS Criminal Investigation special agents are experts at following the money through complex transactions and international movements, and we are committed to continued collaboration with our law enforcement partners to identify and bring to justice those who attempt to defraud people, businesses or both.”
DEFENDANTS Case Number 22-CR-1152-BAS
Karim Arabi Age: 57 San Diego, CA
Sanjiv Taneja Age: 60 Cupertino, CA
Ali Akbar Shokouhi Age: 64 San Diego, CA
AGENCIES
Federal Bureau of Investigation
Internal Revenue Services, Criminal Investigation
United States Marshals Service
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Smith Lake Man Pleads Guilty to Second Degree MurderRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Josiah Alan Smith, 29, of Smith Lake and an enrolled member of the Navajo Nation, pled guilty in federal court to second degree murder. Smith will remain in custody pending sentencing which has not been scheduled.
According to court documents on May 17, 2021, Smith shot and killed the victim, identified as John Doe, at a residence near Church Rock, New Mexico, on the Navajo Nation. Smith, who had arrived at the residence earlier in the day, allegedly fired into a window from outside the home, striking the victim in the back and killing him.
The FBI, with the assistance of the McKinley County Sheriff's Office and Gallup Police Department, arrested Smith in Gamerco, New Mexico, on Aug. 21, 2021.
At sentencing, Smith faces up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations and the McKinley County Sheriff's Office. Assistant United States Attorneys Matthew T. Nelson and Blake Nichols are prosecuting the case.
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Six Indicted for Multi-State Oxycodone ConspiracyRead the Press Release
BOSTON – Six individuals were indicted today by a federal grand jury in Boston for their alleged involvement in a drug trafficking organization that distributed oxycodone pills, obtained from a source in the Houston area, across Southeastern Massachusetts and beyond.
The following defendants were indicted on one count each of conspiracy to distribute controlled substances and to possess with intent to distribute oxycodone pills. They were previously arrested on July 12, 2023:
- John Campbell, a/k/a Jizz, 40, of Taunton;
- Kenneth Veiga, 33, of Abington;
- Michael Atwood, 36, of Carver;
- Austin Gonsalves, 36, of Fall River;
- Scott Lambert, 55, of Falmouth; and
- Christan Russell, a/k/a Christian Russell, a/k/a Bear, 32, of Tomball, Texas.
According to the charging documents, an investigation into Campbell began in April 2022 after law enforcement received information that he was allegedly distributing oxycodone pills. Intercepted communications allegedly revealed that Campbell distributed oxycodone pills to Atwood and Lambert, who then re-distributed the pills to others. On Feb. 24, 2023, law enforcement stopped Lambert in Bourne after he allegedly met with Campbell, and 73 oxycodone pills were found hidden in a Krazy Glue container inside the vehicle.
It is further alleged that, on multiple occasions, Russell obtained oxycodone pills from pharmacies in the Houston area before travelling to the Boston area and distributing the pills to Veiga, who then re-distributed them to Gonsalves. Specifically, flight records allegedly show that Russell travelled to Boston and met with Veiga in February, March and May 2023 to distribute the pills in various locations, including the Twin River Casino, in Lincoln, R.I. and a Brookline hotel.
The charge of conspiracy to distribute controlled substances and to possess with intent to distribute oxycodone pills provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon on the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The indictment also includes a drug forfeiture allegation, aiming to seize the following items: a 2014 Mercedes-Benz CLS550; a 2017 BMW X6; over $998,000 in U.S. Currency; an Aero Precision Model X15 Pistol; a Kongsberg Norwegian M1914 Pistol; a Glock 22 .40 Caliber Pistol; and a Taurus .44 Caliber Revolver.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Falmouth Police Chief Jeffrey A. Lourie; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance in the investigation was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the United States Coast Guard Investigative Service; the Cape & Islands District Attorney’s Office; the Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Mashpee, Yarmouth and Sandwich Police Departments. Assistant U.S. Attorneys John T. Mulcahy of the Narcotics & Money Laundering Unit and Alexandra Amrhein of the Asset Recovery Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Savage Life Gang Members Sentenced to Federal Prison on Racketeering ChargesRead the Press Release
DAVENPORT, Iowa – Two Davenport men were sentenced on Tuesday, August 8, 2023, in relation to a racketeering prosecution. Najawaun Marcus Quinn, 26, was sentenced to 408 months in federal prison for assault with a dangerous weapon in aid of racketeering, use and carry a firearm during and in relation to a crime of violence, and felon in possession of a firearm and ammunition. Dimetri Alexander Smith, 30, was sentenced to 400 months in federal prison for two counts of assault with a dangerous weapon in aid of racketeering and two counts of use and carry a firearm during and in relation to a crime of violence. In February 2023, both were found guilty of the charges following a 7-day jury trial.
According to public court documents and evidence presented at trial, in 2016 and 2017, as members of Savage Life Boys (SLB), a Davenport-based street gang, Quinn and Smith were involved in multiple shootings.
In October 2016, Quinn and other SLB members encountered a man with whom he had been feuding sitting in a parked car at his residence on North Division Street in Davenport. They parked a short distance away and Quinn approached the man on foot. Quinn then fired numerous rounds at the man while he sat in his car. The man sustained a gunshot wound.
In January 2017, Smith, and co-defendants Austin Ruiz and Olajuwan Culbreath were at the NorthPark Mall when they saw a rival gang member. Smith, Ruiz, and Culbreath went to their car, where they had firearms. Culbreath drove to the mall entrance where they expected the rival gang member to exit. When they saw the rival gang member, Smith and Ruiz chased him through the mall parking lot, shooting at him.
In February 2017, Quinn, Smith, and co-defendants Culbreath, and Darion Gardner, and other SLB members started an altercation at a concert at the Hotel Davenport due to perceived disrespect for their gang. During the altercation, Gardner shot and killed one male and injured another.
In April 2017, Smith and Ruiz were at Centennial Park in Davenport when they saw a male who recently robbed another SLB member’s dice game. Ruiz, armed with a firearm, got out of their vehicle to confront the male. The men struggled over the firearm, which discharged, striking the male in the foot. Smith then joined the altercation, choking the male to unconsciousness to assist them in their flight.
Quinn and Smith committed these acts with the intent to maintain or increase position in the gang.
Following their prison terms, both Quinn and Smith must each serve five years of supervised release. There is no parole in the federal system.
In April 2023, Ruiz was sentenced to 202 months in prison and Culbreath was sentenced to 152 months in prison. In December 2022, Gardner was sentenced to 450 months in prison.
United States Attorney Richard D. Westphal stated “We will continue to pursue and aggressively prosecute those individuals and groups of individuals that choose to commit violent crimes. This investigation, trial and hard work of our partners at the Davenport Police Department exemplifies our joint commitment to using every tool available to combat gun violence and protect the communities we serve.”
“We are proud of the hard work and dedication of our investigators and continued partnership with federal prosecutors to bring violent offenders to justice. Partnerships such as these are vital to keeping our community safe,” said Davenport Police Chief Jeffery E. Bladel.
The Davenport Police Department led this investigation, with assistance from the Peoria, Illinois Police Department.
Santo Domingo Woman Pleads Guilty to Assault on a Federal OfficerRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Henryetta John pled guilty to assault on a federal officer. John, 30, of Santo Domingo, New Mexico, and a member of the Pueblo of Santo Domingo, will remain in custody until she can be released for substance-abuse treatment.
According to court documents, on Oct. 20, 2021, John was stopped on suspicion of DWI by a federal officer from the Bureau of Indian Affairs. When the officer tried to place John under arrest, she slipped the handcuffs and physically assaulted the officer, causing them to roll down a hillside. The officer sustained injuries as a result of the altercation.
At sentencing, John faces up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs and the Sandoval County Sheriff’s Office. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Ringleader sent to prison in nationwide fraud scheme targeting elderly victimsRead the Press Release
HOUSTON – The leader in a conspiracy to commit mail fraud has been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.
MD Azad, 26, an Indian national who illegally resided in Houston, pleaded guilty Aug. 15, 2022, admitting he participated in a fraud ring from 2019-2020 which operated out of various cities including Houston.
U.S. District Judge Kenneth Hoyt has now ordered Azad to serve 188 months in federal prison. Azad, a citizen of India, is expected to face removal proceedings following the prison term. At the hearing, the court heard additional evidence that described Azad as the U.S.-based ringleader working with a call center in India. In handing down the sentence, the court noted the many letters and victim impact statements it had read showing the financial devastation to elderly and vulnerable victims throughout the United States because of this fraud scheme.
“The victims in this case were devastated, financially and otherwise,” said Hamdani. “This fraud ring repeatedly preyed on elderly and vulnerable people in the United States who spoke of threats of bodily harm if they did not comply with demands for more money. Our hope, and that of many of the victims, is deterrence so as to stop others who would think of doing similar harm in our community and beyond.”
The scheme targeted elderly victims throughout the United States and elsewhere.
The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.
Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
Indian citizen Anirudha Kalkote, 26, also pleaded guilty in relation to the conspiracy as did Sumit Kumar Singh, 26, Himanshu Kumar, 26, and MD Hasib, 27, all also Indian nationals who illegally resided in Houston. They are pending sentencing.
All five individuals will remain in custody.
The FBI, U.S. Postal Inspection Service and IRS Criminal Investigation conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison prosecuted the case.
The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.
Rhode Island Man Sentenced to Three Years in Prison for Theft and Misuse of COVID-19 Pandemic AssistanceRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for his involvement in a fraudulent scheme to obtain and misuse COVID-19-related unemployment assistance.
Dquintz Alexander, 36, was sentenced by U.S. District Court Judge Angel Kelley to three years in prison and three years of supervised release. Alexander was also ordered to pay forfeiture of $318,281. In April 2023, Alexander pleaded guilty to one count of wire fraud conspiracy, five counts of wire fraud, and one count of aggravated identity theft.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers).
From April to June 2020, Alexander conspired with his co-worker, Norman Higgs, to submit fraudulent PUA claims using stolen identifying information of other individuals. The PUA payments were directed into bank accounts controlled by Alexander and Higgs. In total, accounts controlled by Alexander and Higgs received over half a million dollars in fraudulent PUA payments. While the majority of the funds were frozen by banks or recovered through the efforts of law enforcement, Alexander and Higgs were able to use over $200,000 of the funds for their personal benefit, including to pay off credit card debt and to fund digital currency and online retail brokerage accounts. On August 2, 2023, Higgs was sentenced for his role in the scheme.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit 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.
Rapid City Man Found Guilty of Failure to Register as a Sex OffenderRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Karen E. Schreier has convicted Ryder White Hawk Sierra, age 33, of Rapid City, South Dakota, of one count of Failure to Register as a Sex Offender following a court trial in federal district court in Rapid City, South Dakota. The verdict was returned on August 9, 2023.
The charge carries a maximum penalty of 10 years in custody and/or a $250,000 fine, a minimum of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Sierra was indicted by a federal grand jury in March of 2023.
The charge related to Sierra failing to register and update his sex offender registration under the Sex Offender Registration and Notification Act between January and March of 2023.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for October 25, 2023. The defendant was remanded to the custody of the U.S. Marshals Service.
Princeton Man Sentenced to 10 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Princeton, Kentucky man was sentenced yesterday to 10 years in prison for methamphetamine distribution offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to court documents, on separate dates in March, June, and August of 2021, in Caldwell County, Kentucky, Donald Ray Adams, 49, distributed 50 grams or more of methamphetamine. Further, on September 23, 2021, Adams possessed with the intent to distribute over 400 grams of methamphetamine. Adams was sentenced yesterday to 10 years in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
This case was investigated by the DEA Paducah post of duty and the Kentucky State Police, with assistance from the Caldwell County Sheriff’s Office and the Pennyrile Narcotics Task Force.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Plainfield Man Sentenced to over 3 Years in Federal Prison for $1.5 Million Identity Theft SchemeRead the Press Release
INDIANAPOLIS- Vimalkumar Trivedi, 41, of Plainfield, Indiana, has been sentenced to 46 months in federal prison after pleading guilty to the possession of false identity documents and operating an unlicensed money transfer business.
According to court documents, from April 2017 through April 1, 2021, Trivedi defrauded multiple victims, including some elderly individuals, into sending cash to various locations, including Indianapolis via FedEx. Trivedi and his co-conspirators in the U.S. and India masqueraded as federal law enforcement agents and told the victims that their Social Security numbers had been found in connection with criminal activity, often narcotics trafficking. The criminals stated that the victims would be arrested if they did not immediately withdraw large sums of cash and mail it to fictitious individuals.
Trivedi tracked the packages of money sent by fraud victims to the fictitious recipients and picked them up at multiple FedEx locations. In each instance, Trivedi used a false identification document in the name of the listed package recipient. In total, Trivedi possessed at least 53 false identification documents, each with his picture but containing different identifying information. He used these false identification documents to pick up at least 122 packages containing $901,124 in cash proceeds of the fraud. Trivedi kept $60,000 stolen from victims for his own use and forwarded the remainder to his associates.
Through the investigation, law enforcement agents have identified and confirmed approximately 17 victims, identified approximately 50 other suspected victims, and identified approximately $1.5 million in losses to the victims.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office; Welber Hickman, Special Agent in Charge of the Naval Criminal Investigative Service Norfolk Field Office, Rodney Hopkins, Postal Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division; and Gail S. Ennis, Inspector General of the Social Security Administration, OIG made the announcement.
“International fraud conspiracies steal from hard-working people using lies, manipulation, and fear,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “These vicious crimes often devastate families and individuals victimized by these heartless thieves. The sentence in this case demonstrates that fraudsters seeking a quick buck will pay a heavy price for their crimes. I commend the dedication of the FBI, NCIS, Postal Inspection Service, and Social Security Administration OIG, to hold these criminals accountable and seek justice for victims.”
“The sentence imposed on the defendant sends a very clear message to those who attempt to profit from fraud. You will be caught, and you will face time behind bars,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Protecting the community from becoming victims of these types of schemes will always be a priority for the FBI and our partners.”
“Mr. Trivedi’s conspirators threatened and scared innocent victims into sending him large sums of money in a vile scheme for which he deserves to be held fully accountable,” said Special Agent in Charge Welber Hickman of the NCIS Norfolk Field Office. “This sentencing should serve as a warning that NCIS and our partners will expose and bring to justice those who seek to defraud our nation’s warfighters and their families.”
“Trivedi was part of an imposter scam that used scare tactics and identity theft to scam innocent victims out of hard-earned money. Today’s sentence shows that such behavior will not be tolerated,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the United States Attorney’s Office and our law enforcement partners for their dedication and work on this case.”
The Federal Bureau of Investigation, Naval Criminal Investigative Service, United States Postal Inspection Service, and the Social Security Administration Office of Inspector General investigated this case. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Trivedi be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorneys Bradley P. Shepard and Patrick A. Gibson, who prosecuted this case.
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Philadelphia Man Sentenced to 35 Years in Prison for Conspiring to Distribute Methamphetamine and Cocaine and Unlawfully Possessing a FirearmRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philadelphia, PA, has been sentenced in federal court to a total of 420 months in prison followed by 5 years of supervised release on his convictions of conspiracy to distribute methamphetamine and cocaine, and unlawful possession of a firearm by a convicted felon, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on John T. Terry, age 48, of Philadelphia, Pennsylvania.
On August 25, 2022, a jury found John Terry guilty of conspiracy to distribute and possess with intent to distribute more than 500 grams of a mixture and substance containing a detectable amount of methamphetamine and cocaine, between March 30, 2018, and April 4, 2018.
Further, on August 26, 2022, District Judge Kim R. Gibson found Terry guilty of unlawfully possessing a loaded, stolen Smith & Wesson M&P Shield .40 caliber semi-automatic pistol in furtherance of a drug trafficking crime. On June 2, 1998, Terry was convicted in United States District Court for the Eastern District of PA, of interference with interstate commerce by robber for possessing a firearm in furtherance of a crime of violence, both of which are crimes punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Mr. Olshan commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police SHIELD Unit, and the Somerset Turnpike Barracks, for the investigation that led to the successful prosecution of Terry.
Pharmacy Owner and Technician Both Sentenced to Prison for Health Care FraudRead the Press Release
RALEIGH, N.C. – James Craig Bell, 63, was sentenced today to 24 months for conspiracy to commit health care fraud in connection with a scheme through his pharmacy in Robeson County that had operated under the name Townsend’s Pharmacy. Mr. Bell previously pled guilty to the charge in October 2022. Mr. Bell’s codefendant and former employee, Melisha Oxendine West, 51, was sentenced last month following her guilty plea to 24 months imprisonment followed by 3 years of supervised release in connection with the same scheme.
“People who steal taxpayer-funded programs intended to provide healthcare to the needy will be investigated and prosecuted,” said U.S. Attorney Michael Easley. “For over a decade, Bell and his pharmacy fraudulently billed Medicare and Medicaid over $4 million for medicine he never actually gave to patients. That money should have gone to getting vital medications to those in need.”
Beginning as early as 2006 through July 2017, Bell, acting through Townsend’s Pharmacy, billed Medicare, Medicaid, and various private health plans for prescription drugs that were never actually dispensed by the pharmacy. Bell had trained West and other employees on how to bill health care benefit plans for drugs that were not authorized or dispensed. Bell also trained employees to falsely reauthorize a previously existing prescription from a licensed medical professional, and, how to falsely bill health care benefit programs as though a drug had been dispensed. West began independently running the pharmacy’s operations while Bell continued to knowingly profit from the fraudulent billing practices. This fraud scheme in total cost Medicare and North Carolina Medicaid over $4M in fraudulent billings by conservative estimates.
"When providers submit false claims to Medicare and Medicaid, they take valuable, taxpayer-funded resources away from patients," said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is proud to work with our partners to hold accountable those who attempt to illegitimately profit off of federal health care programs."
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Louise W. Flanagan announced the sentence. The United States Department of Health and Human Services Office of the Inspector General is investigating the case and Assistant U.S. Attorney David G. Beraka is prosecuting the cases.
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 Cases No. 7:22-cr-00107-FL and 7:21-cr-00129-FL.
Putnam County Man Charged with Possession of Destructive Devices and a Firearm with an Obliterated Serial NumberRead the Press Release
NASHVILLE, Tenn. – August 10, 2023 – Levi Austin Flatt, 31, of Baxter, Tennessee, was charged yesterday by federal criminal complaint with three counts related to possession of a destructive device and one count related to possession of a firearm with an obliterated serial number announced United States Attorney Henry C. Leventis.
The criminal complaint alleges that on August 7, 2023, officers with the Putnam County Sheriff’s Office (“PCSO”) observed a video on the Flatt’s Facebook account that depicted him holding a plastic bottle, a wine bottle, and a galvanized pipe with an endcap affixed to the end. The three items were taped together with what appears to be yellow tape. Black and white braided electrical wires hung from the device. In the video, Flatt stated: “Hey ATF, let me know if this is legal, a pound of Tannerite, a pipe bomb, and a wine bottle full of diesel…oh is that legal ATF… just let me know about this…somebody let me know.”
Later that same day, PCSO officers pulled over Flatt while he was driving less than a mile from the Putnam County Fair. Flatt exited his van with an empty holster on his right side and a fixed blade knife on his lower back. Officers searched the van and found, among other things, a fully loaded 9 mm pistol with an obliterated serial number; seven extended magazines containing 145 rounds of 9 mm ammunition; three additional suspected bombs, one of which contained metal shrapnel inside; several additional metal pipes with one end of each pipe welded closed; two Molotov cocktails; and, a receipt for a propane tank.
This case is being investigated by the ATF, FBI, Tennessee Highway Patrol – Special Operations Unit, and the Putnam County Sheriff’s Office. Assistant U.S. Attorney Kathryn Risinger is prosecuting the case.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Owner of Maryland Construction Company Pleads Guilty to Tax EvasionRead the Press Release
A Maryland man pleaded guilty today to evading his federal income taxes.
According to court documents, Jerry Lee Redman of Severn, Maryland, owned Redman Services Inc. (RSI), a paving and construction company. For at least 2015 through 2018, Redman filed corporate income tax returns for RSI that underreported the business’s gross receipts. Redman caused customers to write checks to him personally, instead of to RSI, and then deposited those checks into his personal bank account. Those payments were not reported as gross receipts on RSI’s corporate returns. During the same years, Redman also did not report other income that he received from RSI. Redman withdrew and caused others to withdraw funds from RSI’s business bank account to pay for his personal expenses, but Redman did not report those funds as income on his own tax returns. Some of the withdrawals for personal expenses were also falsely deducted as business expenses on RSI’s corporate returns. Redman’s conduct caused a loss to the IRS of approximately $666,113.
If convicted, Redman faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Christina M. Grimes of the Tax Division are prosecuting the case.
Otay Mesa Detention Facility Case Manager Accused of Having Sex with DetaineeRead the Press Release
NEWS RELEASE SUMMARY – August 10, 2023
SAN DIEGO – Shantal Hernandez is charged in a complaint unsealed today with having sexual relations with a detainee at the Otay Mesa Detention Facility while she was a case manager at the Office of the Immigration Detention Ombudsman (OIDO), which provides oversight of immigration detention facilities.
OIDO is an independent office within the Department of Homeland Security. OIDO was established by Congress to assist individuals with complaints about the potential violation of immigration detention standards or other misconduct by Department of Homeland Security or contract personnel and provides oversight of immigration detention facilities. It is not a part of Immigration and Customs Enforcement or U.S. Customs and Border Protection. As part of her duties, Hernandez managed the complaints of ICE detainees in various detention facilities in the San Diego area.
According to the complaint, agents with the Department of Homeland Security’s Immigration and Customs Enforcement, Office of Professional Responsibility (ICE OPR), received information that Hernandez had been spending an unusual amount of time with a detainee - identified in court documents by the initials I.K.N. - at the Otay Mesa facility.
The complaint alleges that agents from ICE OPR obtained phone records from OMDC and determined that I.K.N. and Hernandez engaged in a significant number of sexually explicit phone calls and electronic communications. These calls discussed an ongoing relationship and sex acts between Hernandez and I.K.N. For example, in one call, Hernandez told I.K.N. that she had a video of one of their sex acts. Agents executed a search warrant that yielded a copy of one such video.
“The alleged conduct cannot and will not be tolerated,” said Acting U.S. Attorney Andrew Haden. “Those in a position of authority over immigration detainees must be held to the highest standard.”
“Hernandez’ main purpose as a DHS OIDO case manager was to promote safe and humane conditions within immigration detention,” said Jeffrey Gilgallon, special agent in charge for the Office of Professional Responsibility (OPR). “However, she allegedly abandoned that oversight role, instead using her position to engage in prohibited sexual activity with an ICE detainee in one of our detention facilities. OPR is fully committed to enforcing ICE’s zero tolerance policy against sexual abuse in our detention facilities and aggressively pursuing those DHS employees who violate the law, no matter their role or title.”
Hernandez made her initial appearance in federal court this afternoon. She is scheduled to appear in court on August 15, 2023, at 10 a.m. for a detention hearing before U.S. Magistrate Judge Jill L. Burkhardt.
DEFENDANTS Case Number 23mj2882
Shantal Hernandez Age: 36 San Diego, CA
SUMMARY OF CHARGES
Sexual Abuse of a Ward – Title 18, U.S.C., Section 2243(b)
Maximum penalty: Fifteen years in prison and $250,000 fine
AGENCY
U.S. Immigration and Customs Enforcement, Office of Professional Responsibility
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Ontario County Man Pleads Guilty to Bilking Investors Out of Hundreds of Thousands of DollarsRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Thomas Corsaro, 59, of Bloomfield, NY, pleaded guilty to wire fraud before Chief U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that between November 2020, and November 2022, Corsaro, acting as an investment adviser, executed a scheme to defraud eight individual investors who invested funds with him. Rather than invest the funds, as he represented he would do, Corsaro used the funds for his own personal use, depositing the funds into personal and business bank accounts. In total, Corsaro received $1,712,469.32 from the eight investors. He repaid $265,642.83 prior to the criminal investigation.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for December 6, 2023, at 2:00 p.m. before Judge Wolford.
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Ohkay Owingeh Man Charged with Sexual AbuseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Dwayne Calvert made an initial appearance in federal court on an indictment charging him with sexual abuse. Calvert, 34, of Ohkay Owingeh, and an enrolled member of Pueblo of Ohkay Owingeh, will remain in custody pending a detention hearing scheduled for Friday, August 11, 2023.
According to the indictment, on July 2, 2022, Calvert attempted to engage in sexual intercourse with the victim, Jane Doe, while Doe was incapable of consenting to the sexual act.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Calvert faces up to life in prison and a term of supervised release between five years and the remainder of his life.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Odessa Man Indicted in Pecos for Allegedly Attempting to Smuggle Methamphetamine from Mexico to DallasRead the Press Release
PECOS, Texas – A federal grand jury in Pecos returned an indictment today charging an Odessa man with importation and possession with intent to deliver methamphetamine.
According to the affidavit attached to a complaint, Angel Vargas-Valdivia, 23, attempted to enter the United States from Mexico through the Presidio Port of Entry on Aug. 8. During a Customs and Border Protection inspection, officers noticed evidence of tampering on the rear quarter panels of Vargas’s vehicle, as well as abnormally heavy vehicle doors. X-ray imaging revealed anomalies within the vehicle’s quarter panels, side doors, rear cargo door, trunk and roof. Further inspection revealed 154 bundles weighing approximately 72.2 kilograms. A crystal-like substance extracted from the bundles tested positive for properties of methamphetamine.
Vargas-Valdivia made his initial court appearance today before U.S. Magistrate Judge David Fannin of the U.S. District Court for the Western District of Texas. If convicted, he faces a penalty of 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Francisco B. Burrola for the Homeland Security Investigations El Paso Division made the announcement.
HSI is investigating the case.
Assistant U.S. Attorney Scott Greenbaum is prosecuting the case.
An indictment/complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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New Yorker Guilty of Possessing Automatic Rifle in Basilica School ZoneRead the Press Release
BEAUMONT, Texas – A Brooklyn, NY man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Ahmed Abdalla Allam, 26, pleaded guilty to possession of a firearm in a school zone before U.S. District Judge Marcia A. Crone today.
According to information presented in court, on Jan. 29, 2023, Allam was found in possession of a multi-caliber rifle within 1,000 feet of St. Anthony Cathedral Basilica School in Beaumont. Allam also possessed a 30-round magazine and 150 rounds of ammunition. It is a federal violation to possess firearms within 1,000 feet of a school zone.
“We are grateful to our Beaumont citizens who were vigilant and looked out for their community by reporting this defendant’s suspicious activity,” said U.S. Attorney Damien M. Diggs. “We are also grateful to the Beaumont Police Department and its officers who ensured that this defendant was unable to act on whatever it was he had planned.”
Allam was indicted by a federal grand jury on Feb. 1, 2023. He faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being investigated by the Beaumont Police Department, Jefferson County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Port Arthur Fire Department, and Montgomery County Fire Marshall. This case is being prosecuted by Assistant U.S. Attorney John B. Ross.
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New York Man Charged with Fraudulently Obtaining More Than $1 MillionRead the Press Release
NEWARK, N.J. B A New York man was arrested this morning on charges he fraudulently obtained more than $1 million in a COVID-19 scheme, U.S. Attorney Philip R. Sellinger announced.
Terrell Fuller, 33, of Brooklyn, New York, is charged by complaint with one count of wire fraud. Fuller is scheduled to appear this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal law enacted in or around March 2020 that was designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enabled the Small Business Association (SBA) to offer funding through the Economic Injury Disaster Loan (EIDL) program to business owners negatively affected by the COVID-19 pandemic.
In September 2021, a fraudulent EIDL application was made to the SBA on behalf of a business. The SBA provided $1.2 million in response to the application. According to a representative of the business, the business did not make the application. Approximately $400,000 of the funds paid out by the SBA in response to the application were eventually deposited into bank accounts to which Fuller was the sole signatory.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s arrest. He also thanked the U.S. Postal Inspection Service in Newark, the New York Police Department and FBI – New York for their assistance.
The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
fuller.complaint.pdfNew Orleans Man Pleads Guilty to Violations of the Federal Controlled Substances Act and Interstate Travel in Aid of RacketeeringRead the Press Release
NEW ORLEANS, LOUISIANA – CHARLES WADE, age 42, a resident from New Orleans, pled guilty on August 9, 2023 before United States District Court Judge Jane Triche Milazzo to a two-count superseding bill of information charging him in count one with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride, one kilogram or more of heroin, and 400 grams or more of fentanyl and in count two with interstate travel in aid of racketeering, announced U.S. Attorney Duane A. Evans.
During the investigation, law enforcement, led by the Drug Enforcement Administration, seized over forty (40) kilograms of cocaine hydrochloride, six (6) kilograms of fentanyl, four and a half (4.5) kilograms of heroin, and over four hundred thousand ($400,000.00) in bulk cash.
According to court documents, WADE and other co-conspirators are responsible for the distribution of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.
For count one, WADE faces a mandatory minimum term of imprisonment of 10 years up to a maximum term of life, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment, and a mandatory special assessment fee of $100. For count two, WADE faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, up to three years of supervised release following any term of imprisonment, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and assisted by the Federal Bureau of Investigation, United States Border Patrol, Gretna Major Crimes Task Force, Kenner Police Department, Jefferson Parish Sheriff’s Office, St. John’s Parish Sheriff’s Office, New Orleans Sheriff’s Office, and New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
New Orleans Man Pleads Guilty to Firearms OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on August 8, 2023, DAVID COULTER, age 34, of New Orleans, pleaded guilty as charged on August 8, 2023 to Count 2 of his indictment for being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, COULTER has a prior conviction for possessing cocaine and multiple convictions for being a felon in possession of a firearm or weapon in Orleans Parish. Due to this criminal history, he is prohibited from having a firearm. He is now charged with possessing a Glock Model 34, nine-millimeter semi-automatic handgun on January 16 and January 18, 2022.
As it relates to Count 2, the maximum penalty includes a term of imprisonment of up to 10 years, a fine of up to $250,000, up to three years of supervised release, as well as a mandatory special assessment fee of $100.00. He will be sentenced on November 28, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This matter is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
Mitchell Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Mitchell, South Dakota, man/woman convicted of Receipt and Distribution of Child Pornography. The sentencing took place on August 7, 2023.
Justin Douglas Brende, age 43, was sentenced to 15 years in federal prison, 15 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brende was indicted by a federal grand jury in June of 2022. He pleaded guilty on May 16, 2023.
The conviction stemmed from incidents between November 1, 2020 and October 3, 2021, when Brende knowingly received and distributed material which contained child pornography. Brende used his cellular phone to access the internet and subsequently searched for, received, and distributed child pornography. On some occasions, he used his PayPal account as a means to pay money to access digital files that contained images and videos of prepubescent children engaged in sexually explicit conduct. Some of the prepubescent minors had not attained the age of 12.
This case was investigated by the DCI, the SD Internet Crimes Against Children, the National Center for Missing and Exploited Children, and the Mitchell Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
Brende was immediately remanded to the custody of the U.S. Marshals Service.
Minneapolis Man Sentenced to 17 Years in Federal Prison for Directing Drug Conspiracy from inside the Grand Forks County JailRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on August 10, 2023, Timothy Edward Eason, age 57, Minneapolis, MN, was sentenced to 204 months imprisonment, 5 years supervised release and $200 Special Assessment for Conspiracy to Distribute Controlled Substances and Money Laundering Conspiracy.
On October 18, 2021, Eason was arrested on state drug charges and was held in the Grand Forks County Jail. The investigation revealed that from October 2021 to February 2022, Eason used communication facilities in the jail to arrange shipments of methamphetamine and fentanyl from Arizona to distributors in Fargo, North Dakota, Moorhead, Minnesota and elsewhere. Eason and other co-conspirators arranged payment for these controlled substances through cash applications such as Cash App and Chime.
Eason and Tiffany Marie Johnson were indicted by a Grand Jury in North Dakota on February 16, 2022. A Superseding Indictment was returned on March 16, 2022, adding additional defendants, Alfonso Demond Patrick and Ashtyn Lenea Gladue.
The investigation resulted in the identification and prosecution of the source of supply in Arizona. The other sentences handed down in this case include:
Alfonso Demond Patrick, 47, Phoenix, Arizona - 96 months imprisonment and 3 years supervised release.
Tiffany Marie Johnson, age 43, Moorhead, Minnesota - 54 months imprisonment and 3 years supervised release.
Ashtyn Lenea Gladue, age 26, Rolla, North Dakota - 42 months imprisonment and 3 years supervised release.
“Distributing dangerous drugs like fentanyl and meth puts lives at risk in our communities,” Schneider said. “Arranging shipments of these drugs from a county jail, as today’s sentence shows, is a surefire way to land an even longer stay in a federal prison. This result is a real credit to the teamwork of our local, state, and federal partners.”
This case was investigated by the Grand Forks Narcotics Task Force, the Grand Forks Police Department, Grand Forks Sheriff’s Department, Homeland Security Investigations, United States Postal Inspection Service, Cass County Drug Task Force and Moorhead Police Department.
The cases were prosecuted by Assistant U.S. Attorneys Christopher C. Myers
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Minneapolis Felon Sentenced to 15.5 Years in Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 186 months in prison followed by three years of supervised release for illegal possession of a firearm after engaging in a shootout in north Minneapolis, announced United States Attorney Andrew M. Luger.
According to court documents, on December 20, 2021, Dominique Marquise McCaskel, 26, was in possession of a loaded Sig Sauer, model P365, 9mm semiautomatic pistol. According to the defendant’s plea agreement and other court documents, surveillance footage from a nearby business showed a vehicle drive slowly past McCaskel, stopping momentarily in an alleyway several feet ahead of McCaskel. Upon seeing the vehicle, McCaskel pulled his Sig Sauer firearm from his pocket, ran towards the vehicle as it was pulling away, and exchanged gunfire with individuals in the vehicle. McCaskel was shot, suffering two non-life-threatening gunshot wounds, and fell to the sidewalk, while the vehicle fled the area. Officers with the Minneapolis Police Department responded to the scene and recovered two 9mm discharged cartridge casings near McCaskel on the ground, and later recovered McCaskel’s firearm. Police also found that McCaskel had several suspected fentanyl pills and cash on his person. The Minneapolis Police Forensics Division determined that the two recovered discharged cartridge casings were shot from McCaskel’s Sig Sauer firearm. The Forensics Division also found McCaskel’s thumbprint on the loaded magazine that was inserted into the firearm.
Because McCaskel has several prior felony convictions, including crimes of violence, he is prohibited from lawfully possessing any firearms or ammunition.
McCaskel pleaded guilty on March 14, 2023, to one count of possession of a firearm as an armed career criminal felon. McCaskel was sentenced yesterday in U.S. District Court before Senior Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys Benjamin Bejar and Hillary A. Taylor prosecuted the case.
Luzerne County Woman Pleads Guilty to Preparing and Submitting Numerous False Economic Injury Disaster Loan (Eidl) Applications in Covid-19 Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Angela Castillo, age 39, of Freeland, PA, pleaded guilty on August 9, 2023, before United States District Judge Robert D. Mariani, to a wire fraud scheme involving the preparation and submission of numerous false Economic Injury Disaster Loan (EIDL) applications.
According to United States Attorney Gerard M. Karam, the criminal Information to which Castillo pleaded guilty alleges that between June 2020 and September 2020, on behalf of other individuals and in exchange for payment, Castillo prepared and submitted to the United States Small Business Association (SBA) at least 40 false EIDL applications containing material misrepresentations. Castillo’s conduct resulted in the SBA paying out approximately $163,000.00 in COVID-19 relief funds to individuals, none of whom actually owned a qualifying small business, and who therefore were not entitled to receive such funds under the program. Pursuant to the terms of her plea agreement, Castillo acknowledged that the monetary loss attributable to her conduct was between $150,000.00 and $250,000.00, and she agreed to make restitution to the SBA.
The case was investigated by the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney Jeffery St John is prosecuting 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.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Lowell, Maine Man Sentenced to 3 Years for CyberstalkingRead the Press Release
PORTLAND, Maine: A Lowell, Maine man was sentenced in U.S. District Court in Portland for cyberstalking.
U.S. District Judge Nancy Torresen sentenced Jonathan Trayes, 34, to 36 months in prison followed by three years of supervised release. Trayes pleaded guilty on September 26, 2022.
According to court records, Trayes was involved in a brief relationship with the victim which ended when Trayes was arrested for violating conditions of release after the victim accused him of physical assault. Trayes eventually pleaded guilty in state court to domestic assault with priors, violating conditions of release and aggravated assault and was sentenced to five years of incarceration with all but two years suspended followed by four years of probation.
Beginning shortly after his release, Trayes began posting embarrassing, sexually graphic images and videos of the victim online, including identifying information including the victim’s name and what he believed was the victim’s address. The harassment continued for more than a year, leading the victim to reach out to the FBI.
The FBI conducted the investigation.
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Louisville Felon Sentenced to Nearly 4 Years in Federal Prison for Illegally Possessing a Machine GunRead the Press Release
Louisville, KY – A Louisville man was sentenced to nearly 4 years in prison yesterday for possession of a firearm by a convicted felon and illegal possession of a machine gun.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents, on February 13, 2023, Charles Divine, 27, possessed two Glock 9-millimeter pistols and a Glock switch, which is a device that allows a semi-automatic handgun to function as an automatic. A Glock switch is defined as a machine gun under federal law. Divine was prohibited from possessing a firearm because he had previously been convicted of the following felony offense. On June 30, 2020, in Oldham Circuit Court, Divine was convicted of wanton endangerment in the first degree.
Yesterday, Divine was sentenced to 3 years and 10 months in prison followed by 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the ATF and LMPD.
Assistant U.S. Attorney Frank Dahl prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Local man imprisoned for distributing meth out of car shopRead the Press Release
HOUSTON – A 42-year old Houston man has been handed a significant sentence for his role in a counterfeit opiate conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Jason Curtis Caldwell pleaded guilty Jan. 6 to conspiring to possess with intent to distribute fentanyl.
Senior U.S. District Judge David Hittner has now sentenced him to a 210-month-term of imprisonment to be immediately followed by five-years of supervised release. Prior to handing down the sentence, Judge Hittner emphasized several times to Caldwell and his attorney that it only takes one fentanyl pill to kill.
Caldwell was running a multi-drug distribution operation out of Caldwell’s car shop, North West Customz. He was known to carry a firearm during his operations and distributed kilogram amounts of meth as well as counterfeit opiate pills that contained fentanyl.
“With approximately 500 fatal overdoses each year in Houston alone linked to fentanyl, we cannot overstate the danger it presents to our communities,” said Hamdani. “We will not stop fighting to protect the citizens of the Southern District of Texas. This case was a great example of that effort and demonstration of the collaboration between federal and local agencies in bringing a meth and fentanyl distributor to justice.”
The investigation began after agents discovered Caldwell was supplying meth to another individual who was distributing counterfeit opiate pills. Those pills contained meth.
Further law enforcement efforts revealed Caldwell sold counterfeit opiate pills on two difference occasions to two others. Those individuals have also been convicted.
Previously released on bond, Caldwell was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Texas Department of Public Safety and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Drug Enforcement Administration, FBI, Houston Police Department and Harris County Constable’s Office Precinct 4.
Assistant U.S. Attorney Jimmy Leo prosecuted the case.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Lame Deer woman admits trafficking methamphetamineRead the Press Release
BILLINGS — A Lame Deer woman accused of selling methamphetamine on the Northern Cheyenne Indian Reservation admitted to a trafficking crime today, U.S. Attorney Jesse Laslovich said.
Adrienne Dawn Laforge, 34, pleaded guilty to possession with intent to distribute meth. Laforge faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 8. Laforge was detained pending further proceedings.
In court documents, the government alleged that in August 2022, law enforcement purchased meth from Laforge at a house in Lame Deer. An indictment accused Laforge with trafficking meth from about January through October 2022 on the Northern Cheyenne and Crow Indian reservations. Laforge and others were charged as a result of an investigation into a large drug trafficking conspiracy.
Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Kalamazoo Man Indicted for Sexual Exploitation of A ChildRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the indictment of Jordan Isaiah Maurice Watts, 31, for three counts of sexual exploitation of a child. While Watts was charged by criminal complaint on July 25, 2023, to secure his immediate detention, today’s action satisfies the defendant’s constitutional right to federal indictment by a grand jury.
“As part of our mission to protect the public, my office is committed to holding accountable persons who produce child pornography,” said U.S. Attorney Mark Totten. “My office is fully prepared to prove these allegations at trial.”
Watts is charged with three counts of sexual exploitation of a child, in violation of 18 U.S.C. § 2251(a) and (e). If convicted, the statutory mandatory minimum sentence for each count is 15 years in prison with a maximum possible sentence of 30 years in prison.
“The sexual exploitation of children is among the most disturbing crimes the FBI investigates,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “I would like to thank the Kalamazoo County Sheriff’s Office and the Portage Department of Public Safety whose partnership with our office helps ensure anyone who exploits vulnerable children will be brought to justice.”
Arraignment and an initial pretrial conference on these charges is scheduled for August 29, 2023, at 11:30 a.m. before Magistrate Judge Ray Kent.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Jordan Watts Indictment###
Jury Convicts Ex-FBI Agent of Secret Probation SchemeRead the Press Release
A retired FBI agent who convinced a Granbury woman she was on “secret probation” and conned her out of more than $700,000 was convicted at trial of eight federal crimes, U.S. Attorney for the Northern District of Texas Leigha Simonton announced today. His coconspirator who also carried out the “secret probation” scheme was convicted as well.
William Roy Stone, Jr., 64, was indicted in May 2021. After 12 days of trial and just 4 hours of deliberation, a jury convicted him of one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer. Coconspirator Joseph Eventino DeLeon, 64, was indicted in December 2021. The jury convicted him of conspiracy to commit wire fraud.
“Mr. Stone used his imposing status as a former FBI special agent to manipulate, intimidate, and steal from his victim,” said U.S. Attorney Leigha Simonton. “Federal agents should be pillars of integrity. When they fail to meet that standard, we will not hesitate to hold them accountable to the fullest extent of the law.”
According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.”
He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation”. They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the multiple six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.
Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.
In recorded phone calls introduced into evidence at trial, when C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”
C.T.: What I’m saying is, all of that stuff was to compensate you for all the stuff that you did for me, you know.
STONE: Okay, then. Okay. We don’t need to discuss that anymore. It’s over. It’s done.
C.T.: Well, I’m just trying to let you know that I feel like that’s a huge order. I mean, I feel like I could have got, like, the best attorney in, like, the world for $100,000.
STONE: Well, you know what, we can’t change the past, now can we?
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C.T.: I’m not stupid, Bill. I may have been, you know, blinded because I thought that somebody in your position wouldn’t ever do what you did to me.
STONE: I never did anything.
C.T.: You took advantage of me based upon who you were in society.
C.T.: I even looked up Judge Anderson in Austin and the Anderson that pulls up... There’s not one, Bill. There is not one. There is not a Judge Anderson in Austin.
STONE: Bye.In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.
They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they allegedly claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her.
Mr. Stone now faces up to 158 total years in federal prison. Mr. DeLeon faces up to 20 years in prison.
The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015. The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch are prosecuting the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture. U.S. District Judge Ada Brown presided over trial.
Jamestown Man Pleads Guilty to Selling Heroin and Fentanyl Which Resulted in Two DeathsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Steven Mojica Medina, 35, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, heroin, fentanyl, and acetyl fentanyl, and being a felon in possession of a firearm and ammunition. The charges carry a maximum penalty of 50 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on August 30, 2018, an individual identified as J.H., fatally overdosed after ingesting a substance containing fentanyl, and acetyl fentanyl. Medina provided J.H. with the fentanyl and fentanyl analogue mixture shortly before J.H. died. Approximately a week later, on September 9, 2018, an individual identified as J.T. fatally overdosed after ingesting a substance containing heroin, fentanyl, and acetyl fentanyl. Medina provided the substance to a third party who then provided it to J.T.
On December 1 and 2, 2020, the Jamestown Police Department conducted controlled purchases of heroin and fentanyl from Medina. Subsequently, a search warrant was executed at Medina’s Euclid Avenue residence during which investigators recovered two loaded firearms, a drug ledger, 48 bags of fentanyl weighing 1.76 grams, and cocaine. On November 1, 2021, Medina was pulled over in his vehicle by the Jamestown Police Department. Officers recovered a 9mm semi-automatic pistol, six magazines and approximately 167 rounds of 9mm ammunition. Medina also had 24 wrapped baggies of crack cocaine weighing 3.8 grams. In July 2015, Medina was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for December 11, 2023, before Judge Arcara.
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Inmate at FCI Schuylkill Pleads Guilty to Possession of Contraband in PrisonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daquon Brooks, age 28, an inmate at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania, pleaded guilty on August 8, 2023, before U.S. District Court Judge Jennifer P. Wilson, to the charge of possession of contraband in prison.
According to United States Attorney Gerard M. Karam, Brooks was found by staff on April 20, 2023, in possession of a dangerous prison-made weapon, commonly known as a “shank.”
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Huntington Man Sentenced to 230 Months in PrisonRead the Press Release
FORT WAYNE –Stephen Pax, 54 years old, of Huntington, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distribution of material involving the sexual exploitation of minors, announced United States Attorney Clifford D. Johnson.
Pax was sentenced to 212 months in prison followed by 10 years of supervised release. The Court also revoked Pax’s supervised release on his prior conviction for distribution of child sexual abuse material and sentenced him to an additional 18 months in prison. The Court ordered these sentences to be served consecutively for a total term of 230 months in prison.
According to documents in the case, from about February 2020, through February 2021, Pax knowingly distributed child sexual abuse materials using a means of interstate commerce.
This case was investigated by the United States Secret Service with the assistance of the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 www.projectsafechildhood.gov.
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Government Contractor Supplying Explosive Detection Canines at U.S. Embassy Settles FCA Allegations Regarding Deficient TrainingRead the Press Release
ALEXANDRIA, Va. – SOC LLC, located in Chantilly, has agreed to pay $259,353.60 to settle False Claims Act (FCA) allegations that canine handlers, employed by SOC under a State Department contract, reported time training canines when, in actuality, training had not taken place or the training did not occur for the time reported to the government.
The settlement arises in connection with a lawsuit filed under the whistleblower provision of the FCA by a former SOC canine handler, United States ex rel. Morris v. SOC LLC, et al. Under the Worldwide Protective Service (WPS) II contract awarded to SOC by the U.S. Department of State, SOC supplied explosive sniffing canines and canine handlers at the U.S. Embassy in Baghdad, Iraq. The WPS II contract required the canines to receive four hours of explosive proficiency training weekly with their handlers. The settlement resolves allegations that SOC handlers and trainers violated the FCA by falsely reporting the requisite four hours of weekly proficiency training regardless of whether training happened that week or fell short of the four-hour requirement.
A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery. The relator here will receive a share of this settlement.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Department of State Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Kristin Starr. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 1:21-cv-327.
Former West Michigan Doctor to Be Sentenced in OctoberRead the Press Release
U.S. Attorney’s Office Seeks to Identify Any Additional Victims of Dr. Daniel Castro
GRAND RAPIDS – On April 3, 2023, Daniel J. Castro, M.D., pled guilty to making a false statement related to health care matters in violation of Title 18, United States Code, Section 1035. The sentencing hearing for Dr. Castro is scheduled for October 5, 2023, at 9:00 a.m. at the United States District Court, 315 W. Allegan Street, Lansing, Michigan.
As part of the plea agreement, Dr. Castro agreed that conduct related to certain health care fraud schemes set forth in the Indictment against him would constitute relevant conduct for purposes of his sentencing. As alleged in the Indictment, Dr. Castro engaged in a scheme to defraud health care benefit programs by performing medically unnecessary sinus surgeries. Additionally, he engaged in a scheme to defraud by billing excisions of single lymph nodes, submandibular glands, and other glands of the neck as if he performed modified radical or selective neck dissections, which are complex and higher-paying procedures for cancer of the head and neck. These schemes to defraud are alleged to have occurred from February 2015 until May 2017 at Bronson Battle Creek Hospital.
Patients who underwent sinus or neck surgery between February 2015 and May 2017 performed by Dr. Castro may qualify as victims of his offense under federal law and may be entitled to certain rights and, potentially, to restitution. To receive victim services and be considered for restitution, those patients must identify themselves to the U.S. Attorney’s office in Grand Rapids, Michigan prior to the sentencing hearing on October 5.
Patients seeking more information or who believe they are victims of the conduct described above may access additional case information at https://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases/Castro. Alternatively, potential victims may call Kathy Schuette, Victim Witness Coordinator, at (616) 808-2034 or Breane Warner, Victim Assistance Specialist, at (616) 808-2064.
Any patient that already is receiving victim services from the U.S. Attorney’s Office need not contact the office unless they have questions or concerns that have not already been addressed.
Daniel Castro Indictment###
Former U.S. Postal Service Employee Convicted of Mail Theft & Sentenced to Four Years of ProbationRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua P. Copas, 38, Cumberland, Wisconsin, pleaded guilty today to one count of theft of mail while a U.S. Postal Service employee and was sentenced to four years of probation by Chief U.S. District Judge James D. Peterson on that count.
In early June 2022, a woman living in Cumberland contacted her local police department to report a stolen Menards rebate check. When she did not receive the check in the mail as expected, she called Menards and learned that the check had been spent without her knowledge. Footage of the transaction showed the check was used by Copas, who was working as a U.S. Postal Service mail carrier at the time. Further investigation linked Copas to thefts of 30 other Menards rebate checks, all but two of which were to be delivered on his mail route from late March to late May 2022. The collective dollar amount associated with the 31 stolen rebate checks was $4,547.84.
During the sentencing hearing, Judge Peterson noted that the harm caused by Copas’ crime is two-fold. He first acknowledged the financial harm caused to the victims in this case, particularly those who lost hundreds of dollars in rebates. He then emphasized the general harm caused to the Postal Service itself. Copas was given a position of trust with the Postal Service and violated that trust. His theft degraded the confidence that the public places in the Postal Service to steadfastly deliver the mail. Given the severity of the crime, Judge Peterson imposed four years of probation and ordered Copas to pay the full $4,547.84 in restitution to the victims.
The charge against Copas was the result of an investigation conducted by the U.S. Postal Service Office of Inspector General, Cumberland Police Department, and Rice Lake Police Department. Assistant U.S. Attorney Anita Marie Boor prosecuted this case.
Former South Carolina Priest Pleads Guilty in Federal Court to Child Sexual Exploitation OffenseRead the Press Release
COLUMBIA, SOUTH CAROLINA — Jamie Adolfo Gonzalez-Farias, a/k/a “Father Gonzalez,” 68, of Laurens, a former Catholic priest, has pleaded guilty in federal court to Transportation of a Minor with Intent to Engage in Criminal Sexual Activity. Specifically, Gonzalez-Farias admitted that he transported a minor victim from South Carolina to Florida with the intent to commit lewd and lascivious exhibition and lewd and lascivious molestation in violation of Florida state law.
According to evidence presented in court:
Gonzalez-Farias served as a Catholic priest in Newberry and Laurens Counties. In May 2020, Gonzalez-Farias met the minor victim and his family by virtue of his service as a priest. He began giving gifts and increasing amounts of attention towards the minor victim. In November 2020, the minor victim’s family reported to Catholic authorities their concern that the priest’s relationship with the minor victim was inappropriate. Church authorities suspended Gonzalez-Farias and made a report to the Laurens County Sheriff’s Office, and an investigation ensued.
The FBI conducted a forensic interview in which the minor victim disclosed that in November 2020, when the minor victim was 11 years-old, the priest took him to Florida under the pretense of a beach vacation. During that trip, Gonzales-Farias masturbated in front of the minor victim, attempted to sexually assault the minor victim, and showed the minor victim pornography. The FBI corroborated the victim’s disclosures by recovering text messages and WhatsApp messages sent by the priest to the minor, which were consistent with the victim’s disclosures.
When the FBI and the United States Marshals Service arrested Gonzales-Farias at the Miami International Airport, he admitted that he showered with the victim, that he touched the minor victim’s genitals, and that he showed the minor victim pornography.
United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Gonzalez-Farias after receiving and reviewing a sentencing report prepared by the U.S. Probation Office. Transportation of a Minor with Intent to Engage in Criminal Sexual Activity carries a mandatory minimum sentence of 10 years and a maximum penalty of life in prison, plus fines and restitution. The statute also requires the defendant to register as a sex offender.
The FBI is seeking the public’s help in identifying potential victims. If you believe you or your minor dependent(s) were victimized by Gonzalez-Farias, or if you have relevant information about Gonzalez-Farias the FBI should know, you are encouraged to contact the FBI at 803-551-4200.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Laurens County Sheriff’s Office. Assistant U.S. Attorneys Elliott B. Daniels and E. Elizabeth Major are prosecuting the case.
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Former Miami-Dade Corrections Sergeant Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Arashio Harris, 48, who was a Corrections Sergeant with the Miami-Dade Corrections and Rehabilitation Department (“MDCRD”), has pleaded guilty to wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans, two Economic Injury Disaster Loans (“EIDL”), and an EIDL advance. Harris entered his guilty plea in Miami, Florida, yesterday before Chief U.S. District Judge Cecilia M. Altonaga.
According to the facts admitted at the change of plea, Harris, along with being a MDCRD Sergeant, also was the owner and President of The Good Family Property Solutions Inc. (“Good Family”) and Flying Lions LLC (“Flying Lions”). Working with an associate, on April 3, 2020, Harris submitted and caused to be submitted to the U.S. Small Business Administration (“SBA”) a false and fraudulent EIDL application in the name of Good Family, seeking both an EIDL and an EIDL advance. In this fraudulent application, Harris falsely claimed that for the 12-month period prior to January 31, 2020, Good Family had gross revenues of approximately $130,000 and nine employees. As a result of this fraudulent application, Good Family obtained from the SBA a $9,000 EIDL advance that did not need to be repaid and $14,500 in EIDL loan proceeds. Harris also admitted that on June 30, 2020, he submitted and caused to be submitted a false and fraudulent EIDL application to the SBA for Flying Lions, claiming that Flying Lions had gross revenues of over $480,000 and 10 employees during that same period of time. As a result of this fraudulent application, Flying Lions obtained approximately $150,000 in EIDL proceeds from the SBA.
Harris additionally admitted at the change of plea that with the assistance of the same individual, he fraudulently obtained two PPP loans in the name of Good Family. First, on July 9, 2020, Harris submitted and caused to be submitted a false and fraudulent PPP loan application falsely claiming that Good Family had 10 employees and a payroll of approximately $51,710 per month. In support of this application, Harris submitted a fraudulent 2019 IRS Form 1120 falsely claiming that Good Family had a total income of over $1,050,000 and had paid wages and salaries that year of over $768,000 and a fraudulent IRS Form 944 for 2019 showing over $620,500 in wage and salary payments. The application also included false IRS Form W-2’s and Good Family payroll records for these supposed employees, and as a result of this false and fraudulent application, Harris obtained a $129,275 PPP loan from an SBA-approved PPP lender.
On February 26, 2021, Harris began the process of seeking a second-draw PPP loan for Good Family to fraudulently take advantage of the additional PPP relief being offered to businesses that suffered revenue losses in 2020 as a result of the COVID-19 pandemic. The second-draw application once again relied on the false income and payroll numbers used to obtain the first PPP loan, and the application package included the same fraudulent 2019 IRS Form 1120, as well as a fraudulent 2019 IRS Form 940 claiming that Good Family paid its employees over $620,000 in 2019 and fabricated Good Family payroll records for those supposed employees. As a result of this second-draw application, Good Family obtained a second-draw PPP loan of $129,276 from a different SBA-approved PPP lender.
Harris is scheduled for sentencing on October 27, at 12:30 p.m. before Chief U.S. District Judge Altonaga in Miami, Fla., where he faces a sentence of up to 20 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC-OIG), and SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the guilty plea.
The FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDC-OIG, working in conjunction with IRS-CI Miami and SBA-OIG Investigations Division’s Eastern Region, investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20295.
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Former Islamic center director sentenced to prison for embezzling funds, committing fraudRead the Press Release
COLUMBUS, Ohio – The former director of a local Islamic center was sentenced in U.S. District Court today to four months in prison then four months in a halfway house followed by 12 months of home confinement for embezzling funds from the mosque, defrauding public housing, and filing for fraudulent COVID assistance funds.
Ahmed A. Sh. Ahmed, 44, of Gahanna, pleaded guilty in October 2022 to committing wire fraud, submitting a false statement and making a false statement as part of his three separate schemes to defraud. As part of his sentence, Ahmed will pay more than $82,000 in total restitution.
According to court documents, from at least 2009 until March 2019, Ahmed was employed as the Director of the Ibn Taymiyah Masjid and Islamic Center (ITMIC) on Mock Road in Columbus.
During his tenure as director, Ahmed used his position of trust to embezzle funds from the religious organization. Specifically, Ahmed wrote unauthorized checks from ITMIC’s accounts to himself. Each year from 2015 through 2018, Ahmed increased the amount he embezzled, writing himself $4,500 in checks in 2015; approximately $11,000 in checks in 2016; $12,900 in checks in 2017; and approximately $21,000 in checks in 2018.
Ahmed spent thousands of dollars of ITMIC funds to pay his own personal credit card bill and towards the purchase of his own personal vehicle.
Ahmed also defrauded the Columbus Metropolitan Housing Authority’s housing choice voucher program. From 2014 until at least 2020, Ahmed submitted false claims to obtain housing subsidies he would not otherwise qualify for given his true income and assets.
“Safeguarding taxpayer-funded programs and resources that are intended to benefit vulnerable families in our communities is vital to HUD’s success,” said HUD OIG Special Agent in Charge, Shawn Rice. “HUD OIG remains steadfast in its commitment to work closely with Federal prosecutors and law enforcement partners to aggressively investigate those who like Mr. Ahmed defraud HUD programs.”
The defendant falsely claimed his personal income was $18,000 annually and did not report any household assets. In reality, Ahmed and his wife deposited more than $235,000 into their bank accounts from 2014 through 2018.
Finally, Ahmed fraudulently applied for Pandemic Unemployment Assistance nine times from August until October 2020. During that same time frame, Ahmed generated at least $4,000 in revenue by producing and posting approximately 126 YouTube videos to his YouTube channel.
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 Shawn Rice, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, Mid-Atlantic Region; announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Jessica W. Knight is representing the United States in this case.
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Former Greenfield Township Supervisor and Sewer Authority Manager Sentenced to Prison for Clean Water Act Violations and Fraud Related CrimesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Evans, Sr., age 70, of Greenfield Township, Pennsylvania was sentenced on August 8, 2023, to two years in prison by United States District Court Judge Malachy E. Mannion for violating the Clean Water Act, wire fraud, and obstructing the delivery of correspondence. Evans, Sr. was convicted after trial in December of 2021.
Evans, Sr. knowingly failed to operate and maintain the municipality’s wastewater treatment plant in accordance with regulations and limitations specified in a permit issued by the Pennsylvania Department of Environmental Protection (PADEP) and the United States Environmental Protections Agency (EPA). The permit requires that the permittee at all times maintain in good working order, and properly operate and maintain all facilities and systems, which were installed and used by the permittee to achieve compliance with the terms and conditions of the permits. As a result of the defendant’s failures, pollutants were discharged in violation of the permit on multiple occasions.
Prosecutors from the U.S. Attorney’s Office and the EPA presented testimony from 34 witnesses over the course of a trial that began on November 15, 2021 and ended on December 17, 2021. Evans, Sr. and co-defendant Bruce Evans, Jr. were tried together. Witnesses included Greenfield Township Sewer Authority (GTSA) board members, Greenfield Township Supervisors, FBI and EPA Special Agents, and multiple PADEP inspectors and supervisors.
Throughout the time covered by the charges, Bruce Evans, Sr. was a Greenfield Township Supervisor, a Greenfield Township employee, a GTSA Board Member, and Manager of the GTSA. Evans, Jr. was an employee of Greenfield Township and the GTSA. Evans, Sr. was convicted of twenty (20) counts of Clean Water Act violations; four (4) counts of wire fraud involving the misappropriation of GTSA funds for his personal benefit and the benefit of his family; and four (4) counts of obstruction of PADEP certified mail addressed to his fellow GTSA board members but intercepted by Evans, Sr. Evans, Jr. was convicted of four (4) counts of Clean Water Act violations, and one (1) count of submitting a false statement to the PADEP related to representations and certifications made by Evans, Jr. regarding his professional work experience.
Evans, Jr. was previously sentenced to serve 12 months plus one day in prison, a one-year term of supervised release upon release from federal custody, and restitution in the amount of $678.
In addition to the sentence of imprisonment, Evans, Sr. was ordered to serve a three-year term of supervised release upon release from federal custody. Judge Mannion reserved ruling on a restitution amount involving Evans, Sr.
“The defendant demonstrated disregard for the environment and continuously falsified data required under the Clean Water Act, said Acting Special Agent in Charge Lisa Matovic of the U.S. Environmental Protection Agency. This sentencing demonstrates that deliberate violations of the Clean Water Act will be held accountable.”
The investigation was jointly conducted by the U.S. Environmental Protection Agency - Criminal Investigations Division, the Federal Bureau of Investigation – Scranton Field Office, and the Pennsylvania Department of Environmental Protection - Northeast Region. Assistant U.S. Attorney Michelle Olshefski and EPA Attorneys W. Martin Harrell and Patricia C. Miller prosecuted the case.
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Former Contract Employee Pleads Guilty in Amtrak Timecard, Kickback SchemeRead the Press Release
MIAMI – Edel Perez Acanda, 40, of Miami, Florida, has pleaded guilty to one count of theft of government funds for his role in a kickback scheme involving contractor employees providing services for Amtrak.
Earlier this year, two other defendants pleaded guilty to conspiracy to commit wire fraud for their roles in the kickback scheme in case no. 22-cr-20559: Bryan De Castro Palomino, 34, of Plantation, Florida, and Jean Barbier, 35, of Hialeah, Florida.
De Castro Palomino, Barbier, and Perez Acanda were employees at a company that had a federal government contract with Amtrak. From 2018 to 2020, De Castro Palomino, who was the warehouse manager, inflated Perez Acanda and Barbier’s timecards to falsely reflect that Perez Acanda and Barbier worked hours that they did not work. In exchange, Perez Acanda and Barbier sent De Castro Palomino part of their paychecks. De Castro Palomino received $77,966 in exchange for his services to fraudulently edit Perez Acanda and Barbier’s timecards. De Castro Palomino admitted that he is responsible for $155,929 in restitution to Amtrak. Perez Acanda admitted that he is responsible for $81,114 in restitution to Amtrak. Barbier admitted that he is responsible for $74,414 in restitution to Amtrak.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Basil Demczak of the Amtrak Office of Inspector General Central Field Office made the announcement.
Amtrak OIG’s Miami Field Office investigated the case. Assistant U.S. Attorney Jeremy Thompson prosecuted it. Assistant U.S. Attorney Marx Calderon is handling forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20073.
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Five Defendants Sentenced to Federal Prison for Their Involvement in Drug Trafficking and Firearms CasesRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced the sentencing of five men yesterday in the Western District of Louisiana for drug trafficking and illegal possession of firearms. United States District Judge Terry A. Doughty sentenced the following defendants:
Monta L. Allen, 37, of Monroe, was sentenced to 216 months (18 years) in prison, followed by 3 years of supervised release, for possession with intent to distribute methamphetamine. On January 23, 2021, officers with the Ouachita Parish Sheriff’s Office attempted to stop the vehicle Allen was driving for a traffic violation. Allen fled from deputies and led them on a high-speed chase and was ultimately stopped. Deputies arrested Allen and seized a white plastic bag from the vehicle which contained more than 50 grams of methamphetamine. A search warrant was obtained for Allen’s residence in Monroe and law enforcement agents found a firearm, ammunition, more narcotics, drug paraphernalia, and cash. Allen later admitted to agents that he used methamphetamine and that the package found in his vehicle was his and he intended to sell it.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Ouachita Parish Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Andrew C. Weber.
John S. Lee, 41, of Tallulah, was sentenced to 120 months (10 years), followed by 3 years of supervised release. Lee pleaded guilty April 26, 2023, to conspiracy to possess with intent to distribute cocaine and possession of a firearm by a convicted felon. These charges stem from an investigation into the drug trafficking activities of Lee. During the investigation by law enforcement agents, they were able to obtain a state search warrant for Lee’s residence and on March 17, 2022, executed that warrant. Prior to execution of the warrant, agents conducted surveillance of Lee’s residence and observed him and a female leave in separate vehicles. Both vehicles were stopped by law enforcement agents and a search of the female’s vehicle revealed a backpack containing over $10,000 in cash, two firearms, and approximately four kilograms of powder cocaine. A search of the residence resulted in the discovery of approximately 38 grams of cocaine. Lee admitted to agents that the backpack in the female’s trunk belonged to him and that he had asked her to put the items in her car. He also admitted to knowing that as a convicted felon, he was prohibited from possessing any firearms.
The case was investigated by the DEA, ATF, Louisiana State Police and Madison Parish Sheriff’s Office and prosecuted by Alexander C. Van Hook, Special Counsel to the U.S. Attorney, and Assistant U.S. Attorney Mike Shannon.
Rawtavious Demon Moore, 36, of Monroe, was sentenced to 132 months (11 years) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On September 4, 2022, an officer with the Monroe Police Department approached Moore while he was sitting in his vehicle. The officer asked Moore to step out of the vehicle and the officer found a loaded Smith and Wesson Model 637 .38 caliber firearm inside. Agents with the ATF examined the firearm and found it be a functioning firearm and determined it had traveled in interstate commerce. Moore was a convicted felon, having previously been convicted of possession with intent to distribute MDMA in 2021, and knew he was prohibited from possessing a firearm or ammunition.
The case was investigated by the ATF and Monroe Police Department and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy.
Darrick Laron Hamilton, 33, of Monroe, was sentenced to 96 months (8 years) in prison, followed by 3 years of supervised release, for distribution of fentanyl. In April of 2022, law enforcement agents with the Metro Narcotics Unit in Monroe began an investigation into the drug trafficking activities of Hamilton. Agents obtained evidence that Hamilton met an individual and sold and distributed approximately 5.5 grams of a substance that contained fentanyl to that party. The substance was sent to the North Louisiana Crime Lab for testing and confirmed the seized substance to contain fentanyl.
The case was investigated by the DEA, ATF, Ouachita Parish Sheriff’s Office and Monroe Police Department and prosecuted by Assistant U.S. Attorney Leon H. Whitten.
Derrick Logwood, 23, of Monroe, was sentenced to 62 months (5 years, 2 months) in prison, followed by 3 years of supervised release. Logwood pleaded guilty on April 26, 2023, to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. On December 21, 2022, an officer with the West Monroe Police Department conducted a traffic stop of a vehicle which was being driven without working brake lights and other violations. The driver and sole occupant was identified as Logwood. The officer observed the grip of a pistol sticking out of Logwood’s pants pocket and he was ordered out of the vehicle. Officers seized a loaded Glock 23Gen5 .40 caliber pistol from Logwood’s pocket. In addition, officers detected the smell of marijuana coming from inside the vehicle and Logwood admitted to having marijuana in a backpack on the back seat. Inside the backpack officers found three large plastic bags of suspected marijuana and a digital scale. The substance was sent to the crime lab for testing and confirmed to be marijuana with an aggregate weight of 2.00 pounds. Logwood had a previous felony conviction of unauthorized entry of an inhabited dwelling in 2019 and knew that he was prohibited from having any firearm or ammunition.
The case was investigated by the ATF and West Monroe Police Department and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
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FFL Owner Sentenced to Prison for Illegally Providing a Firearm to Essa Williams, Alleged Shooter of Phoenix Police Department Officer Tyler MoldovanRead the Press Release
PHOENIX, Ariz. – Dwayne Keith Anderson, 51, of Phoenix, Arizona, was sentenced by United States District Judge Steven P. Logan on Monday to six months in prison, followed by three years of supervised release. Anderson pleaded guilty on May 24, 2023, to False Statement During the Purchase of a Firearm, Aid and Abet.
Anderson was a Federal Firearms Licensee (FFL), doing business as 602 Firearms Instruction L.L.C. in Phoenix, Arizona. Anderson met Essa Williams at a gun show, where he told Williams he could assist him with firearm sales by helping him avoid a background check. Williams had several felony convictions, had previously been sentenced to the Arizona Department of Corrections, and therefore could not legally possess a firearm.
On December 13, 2021, Williams texted Anderson about purchasing a firearm and sent false information for a female, including a photo of her driver’s license. Anderson filled out the Firearms Transaction Record with the false information and signature of the female. Although Anderson knew that the purchaser of the firearm must fill out the Firearms Transaction Record, Anderson completed the form with the false information. Anderson sold Williams a Masterpiece Arms Defender 9mm pistol, using the false information provided by Williams. Anderson had never met the female, and only saw Williams again when he arrived at Anderson’s house that night to pick up the firearm.
Williams is pending trial in Maricopa County Superior Court for allegedly shooting Phoenix Police Department (PPD) Officer Tyler Moldovan on December 14, 2021. The Masterpiece Arms Defender 9mm pistol was not the firearm that was used to shoot Officer Moldovan. Pursuant to a search warrant, PPD detectives searched Williams’ black Dodge Charger after the shooting of Officer Moldovan, locating the Masterpiece Arms Defender 9mm pistol on the back seat floorboard.
“Federal firearms laws and regulations make America safer,” said United States Attorney Gary Restaino. “These laws are designed to make it harder for the drivers of violence in our communities to obtain guns. An FFL like Mr. Anderson who sells a firearm to a felon betrays the public trust and places his fellow citizens at risk.”
“Federal Firearms Licensees are held to a high standard and when they do not abide by these laws, it does a disservice to the community and to other law-abiding Federal Firearms Licensees,” said Brendan Iber, ATF Special Agent in Charge. “ATF will aggressively pursue anyone that thwarts these federal firearms laws and regulations. It is unacceptable for FFLs, or anyone, to provide firearms to felons.”
This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-22-00277-PHX-SPL
RELEASE NUMBER: 2023-123_Anderson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.