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12 July 2023
Long Island Bloods Gang Member Sentenced to Life Plus Twenty Two Years in Prison for Racketeering, Murder, Sex Trafficking, and Other CrimesRead the Press Release
Earlier today, in federal court in Central Islip, United States District Judge Joanna Seybert sentenced Bloods gang member Lawrence Lewis, also known as “L Boogs,” to life plus 22 years imprisonment following his conviction for the July 29, 2017 murder of John Birt, the 2014 forcible rape and sex trafficking of a Suffolk County woman, narcotics possession and distribution and witness tampering, as well as various firearms charges. Lewis was convicted by a federal jury in November 2021 following a four-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Raymond A. Tierney, Suffolk County District Attorney, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“A mandatory life sentence is a fitting punishment for Lewis, a gang member who committed murder, rape, sex trafficking, and pushed drugs in our community,” stated Unites States Attorney Peace. “Through his allegiance to the Bloods, the defendant caused considerable harm to others, and that decision has now permanently cost him his freedom. I commend our prosecutors, and federal and local law enforcement partners for their collaborative work that has made Suffolk County safer as a result of the arrest and prosecution of this violent criminal.”
"The terror and violence this defendant unleashed on to Suffolk County is deplorable. Defendant Lewis's greed and thirst for power prompted him to commit murder, spread dangerous drugs throughout our communities and exploit those who owed him money by sex trafficking," stated Suffolk County District Attorney Tierney. "Thanks to our strong partnership with U.S. Attorney Breon Peace and our local and federal law enforcement partners, the public will be protected from this defendant for life."
“Today’s life sentence assures that Lawrence Lewis’ violent criminal behavior that plagued Long Island communities has been brought to a definitive conclusion,” said HSI Special Agent in Charge Ivan J. Arvelo. “While nothing can erase the pain and suffering endured by his victims, no one else will be harmed by this unrepentant individual who has shown a wanton disregard for human life. I am especially grateful to the HSI special agents and task force officers, the FBI, SCPD, and the prosecutorial team whose dedication and professionalism ensured that justice prevailed in this case.
“Lewis is a career criminal, who committed heinous acts without remorse, and caused irreparable damage to victims and their families," Suffolk County Police Commissioner Rodney K. Harrison said. "The Suffolk County Police Department will continue to work with our law enforcement partners to ensure perpetrators like Lewis never see freedom again and I commend Eastern District of New York for this result.”
Between January April 2004 and June 2019, Lewis utilized his membership in the Bloods street gang to distribute large quantities of cocaine base and heroin in Suffolk County. In order to protect his supply of narcotics, and secure his ability to distribute his narcotics, Lewis possessed a number of firearms, including an AR-15 assault rifle, a pistol-grip 12-gauge shotgun, a Mossberg .22 caliber rifle and a Ruger .45 caliber semi-automatic pistol.
Lewis also engaged in acts of extreme violence on the gang’s behalf. In 2021, Lewis forced a Suffolk County woman into prostitution, forcing her to engage in commercial sex acts until she repaid a debt to him. During the same period of time, Lewis forcibly raped the same woman. In addition, on July 29, 2017, Lewis shot and killed John Birt, a member of the Crips gang, at the Illusions Gentlemen’s Club in Deer Park, New York. While Birt and several friends posed for pictures inside the club. Lewis and a fellow Bloods gang member approached, and Lewis’ associate attempted to display a Bloods hand signal. An argument ensued. Lewis produced a .25 caliber firearm and fatally shot Birt in the abdomen. Following the shooting, Lewis confessed to the murder to a number of close acquaintances, even sending text messages stating that he was “sleeping good” and would “do it again.” In the lead-up to his federal trial, Lewis and others acting on his behalf, made efforts to prevent several witnesses from testifying against him through the use of veiled and implicit threats of violence.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone, Mark E. Misorek, Anthony Bagnuola and Special Assistant United States Attorney Kathleen A. Kearon are in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Schroder.
The Defendant
LAWRENCE LEWIS (also known as “L Boogs”)
Age: 41
Residence: Calverton, New YorkE.D.N.Y. Docket No. 18-CR-187 (S-1) (JS)
Local man sent to prison after helping traffic over 250 kilograms of meth in gas tankRead the Press Release
BROWNSVILLE, Texas - A 42-year-old Brownsville resident has been ordered to federal prison following his conviction for conspiring to possess with intent to distribute liquid meth, announced U.S. Attorney Alamdar S. Hamdani.
Ernesto Vargas pleaded guilty March 7 to conspiracy to possess with intent to distribute approximately 253.2 kilograms of liquid meth.
U.S. District Judge Rolando Olvera has now ordered Vargas to serve 240 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted his extensive criminal history and the seriousness of his conduct.
Vargas was responsible for helping Pedro Rodriguez III, 45, San Benito, transport the narcotics.
On Jan. 11, law enforcement conducted a traffic stop on a vehicle Rodriguez was driving after he switched lanes without signaling. They soon discovered Rodriguez had several pending state arrest warrants and took him into custody.
As they conducted a search of his vehicle, they found approximately 253.2 kilograms of liquid meth hidden inside an auxiliary gas tank. Rodriguez admitted he knew the meth was inside the gas tank and had agreed to transport the narcotics from South Texas to Dallas.
The meth had an estimated street value of over $650,000.
The investigation revealed Vargas and Rodriguez received the liquid meth from co-conspirators in Mexico and planned to transport the meth northwards so it could be divided for distribution. Law enforcement took Vargas into custody June 12, 2022.
Rodriguez was previously ordered to serve 120 months in federal prison to be immediately followed by five years of supervised release.
Vargas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the San Benito Police Department. 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.
Lawrence Man Pleads Guilty to Disaster Fund Fraud SchemeRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to using stolen identities to fraudulently obtain over $450,000 in Economic Injury Disaster Loan funds from the Small Business Administration (SBA) and to launder the funds.
Darwyn Joseph, 26, pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and aiding and abetting. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 19, 2023. Joseph was arrested and charged by criminal complaint in December 2020 along with co-conspirator Ramon Joseph Cruz, Jr. The defendants were subsequently indicted by a federal grand jury in January 2021.Between approximately April and December 2020, Joseph and Cruz were involved in a conspiracy to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Specifically, Joseph and Cruz used stolen identity information of U.S. citizens to open fraudulent bank accounts which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Joseph and Cruz also received some of the debit cards associated with fraudulent bank accounts into which SBA funds were deposited, and then laundered those funds by using them to purchase large numbers of iPhones for re-sale. Joseph and Cruz also wired a portion of the funds to the Dominican Republic in furtherance of the scheme.
Over $452,000 in SBA funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.Cruz pleaded guilty to his role in the conspiracy on May 18, 2023. He is scheduled to be sentenced on Aug. 30, 2023.
The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of the Criminal Division are 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.Lame Deer man sentenced to prison for sexually abusing minorRead the Press Release
BILLINGS — A Lame Deer man who admitted to sexually abusing a minor boy on the Northern Cheyenne Indian Reservation was sentenced today to 22 months in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
Loy Matthew Bryant, 51, pleaded guilty in March to sexual abuse of a minor.
U.S. District Judge Susan P. Watters.
In court documents, the government alleged that Bryant sexually abused the victim, identified as John Doe, who was between the ages of 12 years and 16 years, for several years. In September 2022, John Doe, age 17, disclosed that Bryant started sexually abusing him when he was in about the sixth grade. When interviewed by law enforcement, Bryant admitted to having sexually abused the victim.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Kearney Man Sentenced to Five Years for Stealing FirearmsRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Joshua Thomas Alan Casiano, 36, of Kearney, Nebraska, was sentenced on July 10, 2023, by Senior United States District Judge John M. Gerrard to five years’ imprisonment for possession of stolen firearms. He was also sentenced to a three-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Casiano pleaded guilty to the offense on March 21, 2023.
Police discovered that a residence in Phelps County, Nebraska was burglarized on April 13, 2021. Fourteen firearms were stolen from the home during the burglary. Following this event, a witness came forward and told police that Casiano said he wanted to acquire firearms by committing a burglary. Casiano learned that the residence in Phelps County contained several firearms. Casiano left the night of the burglary and then returned later with what the witness estimated to be around a dozen firearms. Most of those firearms were later sold to two other persons. Once police learned of the sale, they obtained a search warrant to search the home of the buyers. Most of the stolen firearms were recovered during that search with the remainder recovered several days later. To date, all the stolen firearms were recovered by law enforcement.
Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kearney Police Department, and the Phelps County Sheriff’s Office all contributed to this 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.
Kansas Man Charged with National Firearms Act ViolationsRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with one count of making a firearm in violation of the National Firearms Act and one count of possession of an unregistered firearm in violation of the National Firearms Act.
According to court documents, Trenton Espinoza, 19, of Wichita is accused of modifying an Anderson Manufacturing rifle to an overall length of less than 26 inches and to a barrel length of less than 16 inches.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is investigating the case.
Assistant U.S. Attorney Katie Andrusak is prosecuting the case
OTHER INDICTMENTS
Adonis Wade Freeman, 36, and Kristie Griffin, 58, both of Kechi were indicted on one count of money laundering conspiracy and one count of using or maintaining a drug premises. Freeman was also indicted on two counts possession with intent to distribute a controlled substance, one count of possession of a firearm by a prohibited person, one count of possession of a firearm in furtherance of a drug trafficking crime, and 10 counts of money laundering. IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI), U.S. Postal Inspection Service, Wichita Police Department, Sedgwick County Sheriff’s Office, and Homeland Security Investigations (HSI) are investigating the case. Assistant U.S. Attorney Deb Barnett is prosecuting the case.
An indictment 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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Justice Department Challenges Racially Discriminatory Provisions of New Mississippi Law Targeting Hinds CountyRead the Press Release
The Justice Department filed a complaint today challenging portions of Mississippi House Bill 1020 (H.B. 1020), which mandates the appointment of special judges and prosecutors by Mississippi state officials in majority-Black Hinds County, which includes the City of Jackson. The complaint alleges that these provisions discriminate on the basis of race in violation of the U.S. Constitution by shifting authority over the county’s criminal justice system away from democratically-elected judges and prosecutors elected by Black voters.
“Mississippi state lawmakers have adopted a crude scheme that singles out and discriminates against Black residents in the City of Jackson and Hinds County,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our complaint alleges that Mississippi has violated the U.S. Constitution by creating a new, two-tiered system of justice – which erodes the authority of Black elected local officials and creates a new system to be led by judges and prosecutors hand-picked and appointed by state officials. This thinly-veiled state takeover is intended to strip power, voice and resources away from Hinds County’s predominantly-Black electorate, singling out the majority Black Hinds County for adverse treatment imposed on no other voters in the State of Mississippi. The Civil Rights Division of the Department of Justice remains committed to identifying and challenging all acts of discrimination targeting Black communities.”
“One of the hallmarks of justice and the United States Constitution is equal protection under the law,” said U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi. “We want to ensure that the citizens of Hinds County and Jackson, Mississippi, are treated equally in the support and operation of their criminal justice system.”
Hinds County, which has a total Black population of 70%, includes the City of Jackson, which has a total Black population of over 79.5%. Voters elect Black officials to most positions in the city and county, including those affecting the criminal justice system. Hinds County voters elected four Black circuit court judges to its four elected circuit judge positions in 2018.
With H.B. 1020, the state legislature singles out and radically changes Hinds County’s democratic approach to governance over its criminal justice system. The bill calls for the creation of a new court system for part of Jackson, called the Capitol Complex Improvement District Court, which will be served by a new state-appointed judge and new state-appointed prosecutors. H.B. 1020 also mandates appointment of four new special circuit judges by the Chief Justice of the Mississippi Supreme Court to serve alongside those judges elected to the Hinds County Circuit Court. The United States’ complaint contends that these provisions were adopted with a discriminatory purpose in violation of the Fourteenth Amendment’s Equal Protection Clause.
The complaint alleges that the state law discriminates against Hinds County’s Black residents by adding new officials who are not democratically accountable to local voters, including new state-appointed special circuit judges and a new justice system led by a judge and prosecutors who are appointed by state officials. These new appointments, which significantly change the form of government in Hinds County and the dynamic of power over the local criminal justice system, are intended to primarily benefit white residents in Jackson and to treat Black voters in Hinds County differently than white voters everywhere else in the state. The complaint alleges that H.B. 1020 was enacted on the heels of decades of failure by the Mississippi Legislature to provide Hinds County’s criminal justice system with the resources, funding, and personnel that it needs, making it harder for local police, prosecutors, judges, and other officials to do their work effectively and efficiently. The complaint asks the court to prohibit the appointment of the new judges and prosecutors by states officials and provide other necessary relief.
Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at www.civilrights.justice.gov or by calling (800) 253-3931.
Additional information about the Civil Rights Division’s work to uphold and protect the voting rights of all Americans is available on the Justice Department’s website at www.justice.gov/crt/voting-section.
Jamaican National Pleads Guilty to Mail and Wire Fraud Charges in Connection with Fraudulent Sweepstakes Scheme that Targeted Elderly VictimsRead the Press Release
A Jamaican national, who was extradited to the United States, pleaded guilty in the U.S. District Court for the Middle District of Pennsylvania on charges relating to his participation in a phony sweepstakes scheme that targeted elderly victims in the United States.
According to court documents, Damone D. Oakley, 41, of the Point District, St. James Parish, Jamaica, pleaded guilty to two counts of mail fraud and two counts of wire fraud.
As part of his plea agreement, Oakley admitted that he sought to unlawfully enrich himself through a fraudulent sweepstakes scheme that targeted elderly and vulnerable victims. Oakley’s victims received mailings, text messages, or phone calls in which they were falsely told that they had won millions of dollars and luxury vehicles in a sweepstakes, but first needed to pay taxes and fees in order to claim their winnings. Oakley used a variety of names during the scheme, including “Officer Alex Logan” and “Officer Stan Valentine,” and instructed his victims on how to send their money. His victims used wire transfers, direct bank deposits, the U.S. Postal Service, and private commercial mail carriers to send money directly to Oakley, as well as to individuals in the United States and elsewhere who served as intermediaries and transmitted the money to Oakley. In addition to sending cash or wire transfers, Oakley’s victims were directed to purchase electronics, jewelry, and clothing, which were sent to mail forwarding services in Florida, and then on to Oakley in Jamaica. Victims never received any “winnings.” Oakley defrauded his victims out of hundreds of thousands of dollars during the course of the scheme.
“The Department of Justice’s Consumer Protection Branch remains committed to pursuing criminals who defraud elderly and vulnerable U.S. consumers and to prosecuting them to the full extent of the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Oakley was the first individual whose extradition was requested by the United States under Jamaica’s revised Extradition Act, and we are confident that we will continue our efforts to root out fraud that targets vulnerable consumers, wherever the fraudsters are located.”
“Oakley targeted the most vulnerable people in our society and defrauded them out of hundreds of thousands of dollars," said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Today’s guilty plea reflects our office’s commitment to protecting elderly victims and punishing individuals who engage in this type of behavior.”
“The U.S. Postal Inspection Service is committed to investigating scammers, domestically and internationally, who use the U.S. mail to enrich themselves by targeting and financially exploiting vulnerable American consumers, including the elderly,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Today’s plea exemplifies the Postal Inspection Service’s efforts to collaborate with foreign and domestic law enforcement partners to bring these criminals to justice.”
The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Oakley. The U.S. Marshals Service also provided significant assistance.
The case is being prosecuted by Senior Litigation Counsel Linda I. Marks of the Department of Justice’s Civil Division, Consumer Protection Branch, along with Assistant U.S. Attorney Christian Haugsby for the Middle District of Pennsylvania.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Pennsylvania visit their website at www.justice.gov/usao-mdpa. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Indiana Man Sentenced to 66 Months in PrisonRead the Press Release
FORT WAYNE –Bryshawn Terry, 31 years old, of Fort Wayne, IN, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Terry was sentenced to 66 months in prison to be followed by 2 years of supervised release.
According to documents in this case, in December 2022, law enforcement responded to a 911 call about a man with a handgun. When officers arrived, they located Terry who started walking away while tossing a 9mm handgun. In Terry’s vehicle, officers located a rifle with a bump stock and a 50-round drum. Terry had prior felony convictions for dealing cocaine and resisting law enforcement, and as such, is prohibited from possessing the firearms in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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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Heart Butte man sentenced to more than 15 years in prison for murdering woman on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A federal district judge today sentenced a Heart Butte man to 15 years and 10 months in prison, to be followed by five years of supervised released, for murdering a woman during an argument on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
Terrance Travis Aimsback, 35, pleaded guilty in March to second degree murder as charged in an indictment.
Chief U.S. District Judge Brian M. Morris presided.
“Aimsback earned this significant sentence based on his violent conduct that led to murdering his romantic partner. We will, and we must, hold perpetrators of violence against Native American women accountable. The Missing and Murdered Indigenous Women’s movement is one of the most important causes of our time, which is why our office will continue to seek justice for victims to ensure Native women and girls are protected,” U.S. Attorney Laslovich said.
The government alleged in court documents and in court that Aimsback murdered the victim, identified as Jane Doe, by beating her to death with a stick and then initially lying to law enforcement to try to cover up the death. On Nov. 24, 2022, Aimsback called 911, claiming Jane Doe would not wake up, although she was still breathing. Law enforcement officers arrived and found that Jane Doe had died hours earlier. When interviewed, Aimsback admitted he killed Jane Doe during an argument and that he beat her with a stick. Aimsback and Jane Doe were in a romantic relationship at the time.
Assistant U.S. Attorneys Timothy J. Racicot and Ryan G. Weldon prosecuted the case. The FBI, Blackfeet Law Enforcement Services and Pondera County Sheriff's Office conducted the investigation.
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Harrisburg Woman Sentenced to Six Months for Failing to Collect and Pay Employment TaxesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dary T. Son, age 37, of Harrisburg, Pennsylvania, was sentenced to six months in prison for failing to collect and pay over employment taxes to the Internal Revenue Service.
According to United States Attorney Gerard M. Karam, from June 2015 through August 2019, Son, the owner of Pennsylvania-based temporary staffing company DS Agency, failed to collect and pay on behalf of her employees approximately $591,822.99 in taxes owed to the IRS. She also failed to pay to the IRS an equivalent amount that she owed as their employer.
Dary Son is the younger sister of Vanny Son. Vanny Son was previously prosecuted by this Office for conspiracy to defraud the United States through the evasion of employment taxes for his temporary employment agencies for tax years 2007 through 2012. Before Vanny Son reported to prison in 2015, his wife took over the operation of his employment agency, Son Associates. They later divorced in 2017.
Beginning in 2015, Son Associates began, on paper, subcontracting its labor leasing business to other companies controlled by family members of Vanny Son and his then wife, including DS Agency, LLC, of which Dary Son was the sole member and responsible person for purposes of the IRS.
From 2015 to 2019, DS Agency received and cashed checks from Son Associates for providing workers in the total amount of over $7.7 million. Rather than depositing these payments in a bank account, Dary Son cashed these checks at a check cashing business in Harrisburg, PA from 2015 to mid-2017. Starting in 2018, Vanny Son’s now ex-wife and Dary Son regularly made trips to a check cashing business in Philadelphia, PA, where Dary Son cashed about $3 million in checks in less than a year.
The workers employed by Dary Son and her family member’s companies worked regularly at several food manufacturing facilities in and around the Middle District of Pennsylvania. A number of them were transported to their work sites by Dary Son, and they were generally paid in cash by Vanny Son’s ex-wife. The ex-wife passed away in 2021 when the investigation remained ongoing and before any charges were filed in this case.
Dary Son never withheld any federal, Social Security, Medicare, or state taxes from her employees’ income. She likewise did not pay her employer portion of these taxes. As a result, she was responsible for $1,183,646.25 in unpaid federal taxes. Son was ordered to pay this amount in restitution to the IRS.
The case was investigated by the IRS Criminal Investigations Division. Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case.
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Hampton, Iowa, Man Sentenced to Federal Prison for Distributing MethamphetamineRead the Press Release
A man who distributed methamphetamine was sentenced June 28, 2023, to 8 years in federal prison.
Santiago Ramirez, age 38, from Hampton, Iowa, received the prison term after a February 9, 2023, guilty plea to one count of distribution of a controlled substance.
In a plea agreement, Ramirez admitted he distributed methamphetamine in Hampton, Iowa. Ramirez sole ounce level quantities on four separate occasions in the spring and summer of 2022.
Ramirez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ramirez was sentenced to 96 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Clear Lake Police Department, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-3031.
Follow us on Twitter @USAO_NDIA.
Gresham Man Caught Transporting Methamphetamine to Central Oregon Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore.—A Gresham, Oregon man with a lengthy criminal history was sentenced to 10 years in federal prison Wednesday after he was arrested transporting methamphetamine in Deschutes County.
Dennis Richard DeChenne Jr., 39, was sentenced to 130 months in federal prison and five years’ supervised release.
According to court documents, in April 2020, the Central Oregon Drug Enforcement (CODE) team began investigating DeChenne after learning he was involved in transporting large quantities of methamphetamine and heroin from the Portland area to Central Oregon for resale. Investigators determined that DeChenne, after transporting the drugs, would stay in a Bend, Oregon hotel for several days at a time and use local runners to sell the drugs.
Near midnight on August 19, 2020, CODE team members located DeChenne at a casino in southern Oregon. He was arrested the next day by Deschutes County Sheriff’s Office deputies. The deputies located two pounds of methamphetamine and a loaded pistol in DeChenne’s vehicle.
On July 28, 2021, DeChenne was charged by criminal information with possessing with intent to distribute methamphetamine. On April 7, 2023, he pleaded guilty to the single charge.
This case was investigated by CODE and the U.S. Drug Enforcement Administration (DEA). It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
The CODE team is a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) program. CODE includes members of the Bend, Redmond, Prineville, Madras, Sunriver, and Black Butte Police Departments; the Warm Springs Tribal Police Department; the Deschutes, Crook, and Jefferson County Sheriff and District Attorney’s Offices; the Oregon State Police; the Oregon National Guard; DEA; and the FBI.
Former Yonkers Teacher Charged in Connection with Sexual Exploitation of Minor StudentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a two-count Indictment charging SANDY CARAZAS-PINEZ with enticing a minor victim to engage in illegal sexual activity and production of child pornography. As alleged in the Indictment, CARAZAS-PINEZ, a former high school teacher in Yonkers, New York, enticed one of her students, who was only 16 years old at the time, to engage in sexual activity with CARAZAS-PINEZ and further induced the same student to participate in live-streamed sexually explicit conduct while on video calls with CARAZAS-PINEZ. CARAZAS-PINEZ was arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Robert W. Lehrburger. The case has been assigned to U.S. District Judge John P. Cronan.
U.S. Attorney Damian Williams said: “As alleged, Sandy Carazas-Pinez exploited the trust placed in her as a teacher to sexually abuse a teenage student in her care. Today’s indictment makes clear that my Office will continue to tirelessly pursue sexual predators of all forms – especially those who are entrusted to care for children – and hold them accountable to the fullest extent under the law.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged, Ms. Carazas-Pinez, a former high school teacher, enticed one of her students to engage in sexual activity and live-stream sexually explicit conduct. Teachers are entrusted to protect children under their supervision, not bring them harm. As today’s action demonstrates, the FBI remains steadfast in our commitment to bring justice to those who prey upon our youth.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
CARAZAS-PINEZ was a high school teacher at a school for kindergarten through 12th grade students located in Yonkers, New York (“School-1”). From in or about November 2022 through in or about February 2023, CARAZAS-PINEZ abused her position as a teacher at School-1 by inducing and attempting to induce a student (“Minor Victim-1”) at School-1 into a sexual relationship with CARAZAS-PINEZ. Minor Victm-1 was 16 years old at the time of the abuse.
CARAZAS-PINEZ singled out Minor Victim-1 for personal attention at School-1. In addition, CARAZAS-PINEZ induced Minor Victim-1 to engage in sexual activity with her by leading Minor Victim-1 to believe that they were in a romantic relationship.
CARAZAS-PINEZ used her personal cellphone to call, text, and video call Minor Victim-1 to arrange sexual encounters and to repeatedly induce Minor Victim-1 to engage in live-streamed sexually explicit conduct while on video calls with CARAZAS-PINEZ. In text messages with Minor Victim-1, CARAZAS-PINEZ referred to her sexual encounters with Minor Victim-1 and the live depictions of sexually explicit conduct she induced Minor Victim-1 to create as “gifts.”
CARAZAS-PINEZ also used her personal cellphone to send Minor Victim-1 sexually suggestive photographs of herself along with sexually explicit text messages. After sending the photographs and messages, CARAZAS-PINEZ instructed Minor Victim-1 to delete them and inquired repeatedly as to whether Minor Victim-1 had done so.
To facilitate their sexual encounters outside the premises of School-1, CARAZAS-PINEZ directed Minor Vicitim-1 in text messages to obtain day passes from School-1 to be permitted to leave campus. CARAZAS-PINEZ then met Minor Victim-1 at a location near School-1’s campus and drove Minor Victim-1 to another location. On multiple occasions, while parked in CARAZAS-PINEZ’s car at various locations, including in or around the Bronx, Yonkers, and Staten Island, New York, CARAZAS-PINEZ engaged in sexual intercourse and other sexual acts, and attempted to do so, with Minor Victim-1.
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CARAZAS-PINEZ, 34, of Bethel, Connecticut, is charged with one count of enticing a minor victim to engage in illegal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and one count of production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the efforts of the FBI and the New York City Police Department (“NYPD”) for their outstanding work on this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force. Mr. Williams also thanked the Richmond County District Attorney’s Office for their significant assistance and the Westchester County District Attorney’s Office, the Bronx County District Attorney’s Office, and the Yonkers Police Department for their assistance. He added that the investigation is ongoing.
Any individuals who believe they have information that may be relevant to this investigation should contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Mitzi S. Steiner is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Carazas-Pinez IndictmentFormer Securities Attorney Sentenced for $1.3M Penny-Stock SchemeRead the Press Release
A former securities attorney was sentenced today to six years in prison and ordered to pay $1.385 million in restitution to victims for his role in a conspiracy to defraud over 1,000 investors in a penny-stock scheme.
According to court documents, from at least November 2016 through October 2018, Phillip W. Offill, 64, of Dallas, and others conspired to misappropriate millions of shares of a publicly traded company, MCPI, using aliases and fake paperwork. The co-conspirators then fraudulently marketed MCPI shares to the public through call centers that made materially false statements to potential investors, including false claims that efforts were underway to list the stock on a national exchange. Employees at call centers also omitted material information, including the fact that the co-conspirators were paying large commissions to the callers to peddle the stock to victim investors. Offill and his co-conspirators also pumped up demand by manipulating the market so that MCPI stock appeared to be trading more actively than it actually was, and by causing the publication of false press releases regarding millions of dollars in funding that the co-conspirators knew would never come. As a result of the scheme, victim investors lost over $1.3 million.
“This serial offender defrauded over 1,000 investors, including many who entrusted him with their retirement funds and life savings,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence and restitution demonstrate the Justice Department’s commitment to protecting victims from financial predators, securing the integrity of our public markets, and obtaining restitution for victims of fraud.”
Offill was previously employed as an attorney for the U.S. Securities and Exchange Commission (SEC) for over 14 years. After leaving the SEC, in 2010, he was convicted in the Eastern District of Virginia for participating in multimillion-dollar pump-and-dump stock manipulation schemes. In April 2010, Offill was sentenced to eight years in prison and three years of supervised release. While on supervised release for his 2010 conviction, Offill committed the current offense involving MCPI stock.
“This case is unique because of the defendant’s greed and disregard for the rule of law, even after serving a federal prison sentence for fraud,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “While still on supervised release from his last offense, Mr. Offill and his co-conspirators used their stock market expertise to swindle unsuspecting average investors in order to enrich themselves. I’m grateful to our attorneys and investigative agents who identified and put an end to this flagrantly exploitative scheme.”
As part of a civil case that the SEC brought in 2011, the U.S. District Court for the Eastern District of Michigan entered a final judgment against Offill that permanently barred him from participating in penny stock offerings. As part of another SEC case, in 2012, the U.S. District Court for the Northern District of Texas entered another permanent bar against him. Notwithstanding these bans, Offill committed the current offense.
“The FBI and its partners work relentlessly to ensure that those who violate fair market practices face justice,” said Assistant Director Luis Quesada of the FBI's Criminal Investigative Division. “The manipulation of investors seen in this case will not be tolerated, and we will continue to collaborate to put conspiracies like this one to an end.”
The FBI Washington Field Office investigated the case.
Trial Attorneys Andrew Tyler and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kimberly Pedersen for the Eastern District of Virginia prosecuted the case. Former Trial Attorney Blake C. Goebel provided significant contributions to this prosecution.
Former Securities Attorney Sentenced for $1.3 Million Penny-Stock SchemeRead the Press Release
ALEXANDRIA, Va. – A former securities attorney was sentenced today to 72 months in prison for his role in a conspiracy to defraud over 1,000 investors in a penny-stock scheme.
“This case is unique because of the defendant’s greed and disregard for the rule of law, even after serving a federal prison sentence for fraud,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “While still on supervised release from his last offense, Mr. Offill and his co-conspirators used their stock market expertise to swindle unsuspecting average investors in order to enrich themselves. I’m grateful to our attorneys and investigative agents who identified and put an end to this flagrantly exploitative scheme.”
“This serial offender defrauded over 1,000 investors, including many who entrusted him with their retirement funds and life savings,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence and restitution demonstrate the Justice Department’s commitment to protecting victims from financial predators, securing the integrity of our public markets, and obtaining restitution for victims of fraud.”
“Phillip Offill engaged in a fraudulent criminal scheme to inflate stock prices through false information, causing victims to lose over $1.3 million of their hard-earned money,” said David Sundberg, Assistant Director in Charge of the FBI Washington Field Office. “Pump-and-dump schemes, such as this one, deteriorate the integrity of the market. The FBI will work to hold accountable those who choose to break the law and swindle unsuspecting victims.”
According to court documents, from at least November 2016 through October 2018, Phillip W. Offill, Jr., 64, of Dallas, Texas; Justin Wallace Herman, 52, of Canonsburg, Pennsylvania; and others conspired to misappropriate millions of shares of a publicly traded company, MCPI, that held mining claims in Arizona and Idaho. The defendants then fraudulently marketed the shares for sale through third parties, including call centers, who made materially false statements to potential investors, while manipulating the market so that the stock falsely appeared to be trading more actively than it actually was. Offill coordinated the co-conspirators, created and submitted fraudulent documents to gatekeepers such as the Financial Industry Regulatory Authority (FINRA), and knowingly caused two materially false press releases to be issued to pump up demand for MCPI stock. As a result of the scheme, victim investors lost approximately $1.3 million.
Offill was previously employed as an attorney for the U.S. Securities and Exchange Commission (SEC) for over 14 years. After leaving the SEC, in 2010, he was convicted in the Eastern District of Virginia for participating in multimillion-dollar pump-and-dump stock manipulation schemes. In April 2010, Offill was sentenced to eight years in prison and three years of supervised release. While on supervised release for his 2010 conviction, Offill committed the current offense involving MCPI stock.
As part of a prior civil case brought by the SEC, in 2011, the U.S. District Court for the Eastern District of Michigan entered a final judgment against Offill that permanently barred him from participating in an offering of penny stock. As part of another SEC case, in 2012, the U.S. District Court for the Northern District of Texas entered a final judgment against Offill that permanently barred him from participating in an offering of penny stock. Notwithstanding these bans, Offill committed the current offense.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Emily Odom, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Assistant U.S. Attorney Kimberly R. Pedersen of the Eastern District of Virginia, and Trial Attorneys Andrew Tyler and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section at the Justice Department, are prosecuting the case. Former Trial Attorney Blake C. Goebel provided significant contributions to this prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-152.
Former Officer at South Florida Immigrant Detention Facility Charged with COVID-19 Relief FraudRead the Press Release
MIAMI – A Miami federal grand jury has charged Anthony Faustin, 28, of Homestead, Florida, with conspiracy, wire and bank fraud, and access device and aggravated identity theft crimes, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP).
According to the allegations in the indictment, Faustin submitted fraudulent PPP loan applications on behalf of six individuals in 2021. In the loan paperwork, Faustin made the applicants appear eligible for pandemic relief by misrepresenting them as sole proprietors or lying about their prior years’ income (or both). Lenders disbursed over $100,000 to bank accounts controlled by the individuals, who would then withdraw the money and gave Faustin his cut.
At the time of the alleged crimes, Faustin was a contractor with Immigration and Customs Enforcement working as a detention officer at Krome North Service Processing Center in Miami.
Faustin made his initial appearance yesterday in federal magistrate court in Miami. If convicted, he faces up to 20 years in prison on the conspiracy and fraud counts and two years on the aggravated identity theft counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jimmy Valenzuela for U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR), 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 charges.
ICE OPR and SBA OIG investigated this matter. Assistant U.S. Attorney Daniel Bernstein is prosecuting the case.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
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-20275.
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Former Georgia Used Motor Vehicle Dealer Pleads Guilty to Conspiracy to Commit Securities Fraud in Connection with Odometer Tampering SchemeRead the Press Release
A Georgia man pleaded guilty today in the U.S. District Court for the Northern District of Georgia for his role in falsifying vehicle titles as part of a scheme to roll back odometers on used motor vehicles.
According to court documents between 2011 and 2013, Andrew O. Elphic, 52, of Monroe, engaged in a scheme to sell high-mileage and used vehicles with false and low-mileage readings entered on the vehicles’ odometers and titles. Elphic purchased high-mileage vehicles from auctions outside the State of Georgia, altered or arranged to alter the vehicles’ odometers to reflect false and lower mileage readings, and then altered the vehicles’ titles to reflect false lower mileages for the vehicles. He then submitted the altered titles to co-conspirators employed at a Georgia Motor Vehicle Division office and made cash payments to the employees in order to obtain new motor vehicle titles reflecting the false and lower mileages. Elphic then used the fraudulent titles with the lower odometer readings to sell the vehicles at an automobile auction in Atlanta. By deceiving purchasers into believing the vehicles had fewer miles, Elphic was able to sell the vehicles at inflated prices — thereby causing unsuspecting buyers to pay more for vehicles than they would have paid had the buyers known the true mileages.
Elphic’s scheme misrepresented the mileage to the Georgia Motor Vehicle Division on at least 305 vehicles, resulting in consumer losses of more than $550,000. Consumers who ultimately purchased the vehicles at dealerships did not know of the mileage discrepancies and, as a result, paid inflated sales prices.
“The Department of Justice will continue to work with law enforcement partners to prosecute unscrupulous individuals who deceive consumers purchasing used motor vehicles,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Misrepresenting used car mileages defrauds buyers and conceals significant information about the safety and reliability of these vehicles.”
“Our top priority is safety, and odometer fraud schemes not only scam consumers, but keep unsafe vehicles on our roads,” said Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA). “By actively prosecuting these crimes, we send a strong message that odometer scams, which affect the livelihood of Americans across this country, will not go unpunished. I thank our partners at the Department of Justice for working with us to deter odometer fraud.”
Elphic pleaded guilty to one count of conspiracy to commit securities fraud. He is scheduled to be sentenced on Oct. 24, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The NHTSA Office of Odometer Fraud Investigation investigated the case, with assistance from the Georgia Department of Revenue.
Senior Litigation Counsel Linda I. Marks and Trial Attorney Kathryn Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Thomas J. Krepp for the Northern District of Georgia prosecuted the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website at www.nhtsa.gov/odometer-fraud, and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/sites/nhtsa.gov/files/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Georgia, visit www.justice.gov/usao-ndga.
Former Georgia Teacher Charged with Producing, Distributing, Receiving Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A federal grand jury returned a 21-count indictment this week charging a former Sandersville, Georgia, high school teacher with producing, distributing, receiving and possessing child sexual abuse material (CSAM).
Michael Allen Dendy, 32, of Milledgeville, Georgia, is charged with five counts of production of child pornography, seven counts of distribution of child pornography, eight counts of receipt of child pornography and one count of possession of child pornography. If convicted, Dendy faces a mandatory minimum of 15 years in prison up to a maximum sentence of thirty years in prison for each count of production of child pornography; Dendy faces a mandatory minimum of five years in prison up to a maximum sentence of twenty years in prison for each count of distribution and receipt of child pornography; and Dendy faces a maximum sentence of ten years in prison for possession of child pornography. The indictment was returned by a federal grand jury on July 11.
The indictment alleges that Dendy enticed minor children to engage in sexually explicit acts which were filmed or photographed. In addition, Dendy allegedly distributed, received and possessed child sexual abuse material (CSAM) of minors.
Dendy was a teacher at Washington County High School in Sandersville, Georgia, from Aug. 2020 until his arrest on Jan. 20, 2023. Dendy taught at three schools previously: Griffin High School in Griffin, Georgia, from 2018-2020; St. Charles High School in Waldorf, Maryland, from 2017-2018; and Starkville High School in Starkville, Mississippi, from 2014-2016. Parents and guardians of children who may have encountered Dendy and have concerns related to this investigation can contact the Homeland Security Investigations (HSI) tip line at 1-866-347-2423.
The case is being investigated by Homeland Security Investigations (HSI) and the Washington County Sheriff’s Office with significant assistance from the Leesburg, Virginia, Police Department, the Charles County, Maryland, Sheriff’s Office and the Middle Judicial Circuit, Georgia, District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Daniel Peach.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Florida Man Sentenced to 10 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Jacksonville, Florida, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on July 7, 2023.
James Dean Hanapel, 22, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Hanapel will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Hanapel was indicted by a federal grand jury in August of 2021. He was found guilty by a jury on April 13, 2023.
Evidence at trial established that Hanapel was arrested as a result of an undercover sex trafficking operation conducted during the 2021 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and sexually explicit text messages with a person Hanapel believed to be a 14-year-old girl, but who was in fact an undercover agent, Hanapel proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Hanapel went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
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.
This case was investigated by the South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Taskforce, Homeland Security Investigations, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Hanapel was immediately remanded to the custody of the U.S. Marshals Service.
Federal jury convicts Billings man of trafficking methRead the Press Release
MISSOULA — A federal jury on Tuesday convicted a Billings man accused of possessing over 50 grams of pure methamphetamine for resale hidden in false bottom cans and illegally possessing ammunition, U.S. Attorney Jesse Laslovich said today.
After a two-day trial that began on July 10, the jury found Shane Edward Johnson, 54, guilty of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and prohibited person in possession of ammunition. Johnson faces a mandatory minimum of 15 years to life in prison, a $20 million fine and at least 10 years of supervised release on the conspiracy conviction.
U.S. District Judge Dana L. Christensen presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factor. Sentencing was set for Dec. 6. Johnson was detained pending further proceedings.
“The jury’s verdict is yet another example of our office’s efforts to hold accountable those who seek to poison our communities with drugs, in this instance, methamphetamine. These convictions make Laurel and Billings safer, as another dangerous drug dealer like Johnson won’t be on our streets for a long period of time. I am grateful to Assistant U.S. Attorneys Julie R. Patten and Zeno B. Baucus, along with the U.S. Postal Service, FBI, Billings Police Department and Yellowstone County Sheriff’s Office for investigating and prosecuting this case,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that from about April 2020 until October 2021, Johnson, who has a prior federal drug conviction, conspired to distribute meth in the Laurel and Billings communities. In October 2021, law enforcement intercepted a package shipped through the U.S. Postal Service from California to Laurel. Officers executed a search warrant on the package and found two pounds of meth inside four plastic candles. Law enforcement made a controlled delivery of the package to a Laurel residence, and a co-defendant took possession of the package. Law enforcement converged on the residence to execute a search warrant and encountered Johnson and the co-defendant. Agents located a backpack, belonging to Johnson, that contained baggies of meth, a digital scale, approximately $1,000 and two loaded handgun magazines. Johnson was prohibited from possessing ammunition because of his prior felony conviction.
Assistant U.S. Attorneys Julie R. Patten and Zeno B. Baucus are prosecuting the case. The U.S. Postal Service, FBI West, Billings Police Department and Yellowstone County Sheriff’s Office 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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Federal Jury Convicts Santa Clara Man on Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, announced today that a federal jury returned a guilty verdict against Michael Rivera after less than 2 hours of deliberation. The jury convicted Rivera, 31, of Santa Clara, New Mexico, on one count of coercion and enticement of a minor and two counts of production of a visual depiction of a minor engaging in sexually explicit conduct. United States District Judge Margaret I. Strickland presided.
A federal grand jury indicted Rivera on Sept. 21, 2022. According to the evidence at trial and other publicly available court records, in 2020, Rivera befriended a minor identified as Jane Doe. Doe and Rivera became close. One day in March of 2021, when Doe was 12 years old, Rivera stopped at a convenience store and bought alcohol for both of them. He then drove to a secluded area of town and parked the car. Rivera then initiated sexual intercourse with Doe in the car. Afterward, Rivera told Doe that she could not tell anyone because he could get in trouble.
Following the incident, Rivera maintained contact with Doe by phone. Later that same year, Rivera began requesting that Doe send him naked photos and videos of herself via text message. Rivera received a number of items of child sexual abuse material from Doe.
“HSI is committed to combatting the global fight against child exploitation. HSI El Paso’s efforts are focused on protecting our children and holding the offenders of such heinous acts accountable,” said Francisco B. Burrola, special agent in charge of HSI El Paso. “Innocent children are irreparably harmed in the production of child pornography, and individuals who distribute such revolting material continue to victimize them. HSI works to identify, rescue, and provide services to children who have been subjected to sexual abuse and online exploitation and ultimately ensure those responsible are placed behind bars where they should remain.”
“Rivera exploited the vulnerability of a child less than half his age,” said U.S. Attorney Alexander M.M. Uballez. “Alongside our local partners, the United States will vigorously protect our community from such predators.”
Rivera faces a mandatory minimum of 10 years and up to life in prison for one count of coercion and enticement and a mandatory minimum of 15 years and up to 30 years in prison for each count of production of child pornography. Upon his release from prison, Rivera would be subject to registration as a sex offender.
Homeland Security Investigations investigated this case with the assistance of the Grant County Sheriff’s Office and the Las Cruces Police Department. Assistant United States Attorneys Marisa A. Ong and Eliot Neal are prosecuting the case.
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Federal Court finds Miami-Based Tax Return Preparer in Contempt and Orders Disgorgement of Ill-gotten Fees as a SanctionRead the Press Release
On July 11, 2023, a federal court in the Southern District of Florida found Rose M. Chazulle in contempt of court for violating a permanent injunction prohibiting her from preparing or filing federal tax returns or other tax-related documents and forms for any person or entity. The court ordered that she disgorge to the United States more than $48,000 in ill-gotten fees, which the parties agreed was a reasonable approximation of the fees that she earned for tax returns prepared in violation of the injunction.
In 2016, the court permanently enjoined Ms. Chazulle from preparing tax returns for others. Despite the court’s orders prohibiting her from preparing or assisting in the preparation of tax returns for others, Ms. Chazulle stipulated that she continued her return preparation activities preparing returns using the preparer tax identification numbers assigned to her daughter and brother-in-law and using the electronic filing identification numbers associated with their businesses. Ms. Chazulle further stipulated that she received at least $48,100 in fees for preparing returns in violation of the court’s injunction. Based on Ms. Chazulle’s stipulations, the court found her in contempt for violating the permanent injunction and ordered as a civil contempt sanction that she disgorge the fees she earned in violation of the injunction.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers as return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS has launched a free directory of federal tax preparers and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here.
Federal Bureau of Prisons Lieutenant Pleads Guilty to Violating the Civil Rights of an Inmate Resulting in His DeathRead the Press Release
A federal Bureau of Prisons (BOP) lieutenant pleaded guilty today to violating the civil rights of an inmate by showing deliberate indifference to the inmate’s serious medical needs, resulting in his death.
According to court documents, on Jan. 9 and 10, 2021, Michael Anderson, 52, was working in his official capacity as a BOP correctional officer, with a rank of lieutenant, at the Federal Correctional Institution at Petersburg, Virginia. In that capacity, Anderson was responsible for the care of federal inmates. On Jan. 9, 2021, a correctional officer notified Anderson that a 47-year-old inmate, W.W., was experiencing symptoms of an apparent medical emergency and asked the defendant to help W.W. obtain medical care. Anderson personally observed W.W.’s symptoms and stated that he would get medical help for W.W. Anderson nevertheless failed to notify medical staff, obtain a medical assessment, contact the facility’s on-call physician or notify any other staff members of W.W.’s condition. The next day, a correctional officer notified Anderson that W.W. had fallen to the ground in his cell. Even with this information, Anderson failed to obtain any assistance for W.W. whatsoever. W.W. then laid on the ground, dead or dying, for over an hour and a half before any correctional or medical staff entered his cell. By the time correctional and medical staff entered the cell, life-saving efforts failed, and W.W. was later pronounced dead.
“Correctional supervisors are responsible for the care and custody of inmates entrusted to their care, particularly those with serious medical needs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those correctional officers who deliberately disregard inmates’ serious medical needs.”
“Despite Anderson’s knowledge of the victim’s medical condition and his knowledge of BOP policies, he failed to provide potentially life-saving medical care to an inmate in need,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “People have a constitutional right to basic care while incarcerated.”
“Anderson’s appalling indifference and disregard for his responsibility to provide a humane environment for inmates resulted in the needless loss of life,” said Special Agent in Charge Russell W. Cunningham of the Justice Department’s Office of the Inspector General Washington Field Office. “Incarcerated individuals should never be denied medical care, and the Department of Justice Office of the Inspector General will continue to aggressively investigate anyone who does so.”
Sentencing is scheduled for Nov. 28. Anderson faces a maximum penalty of life in prison. Any sentence will be determined by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Clarke, U.S. Attorney Aber and Special Agent in Charge Cunningham made the announcement.
The Justice Department’s Office of the Inspector General investigated the case.
Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Thomas Garnett for the Eastern District of Virginia are prosecuting the case.
Father and Son Charged in Manhattan Federal Court with Multimillion-Dollar Cryptocurrency-Related CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the arrest of EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin,” for charges in connection with a scheme to steal money from investors and other victims by offering a variety of fraudulent cryptocurrency-related investment services, including sales of multimillion-dollar batches of cryptocurrency, marketing and advertising services, and short-term investments and loans. EUGENE AUSTIN was arrested on July 5, 2023, and was presented that same day before U.S. Magistrate Judge Jennifer E. Willis. Mr. Williams also announced the guilty plea of EUGENE AUSTIN’s son, BRANDON P. AUSTIN, who pled guilty on April 13, 2023, before U.S. District Judge P. Kevin Castel to participating in a money laundering conspiracy with his father, EUGENE AUSTIN, relating to his involvement in conducting financial transactions with the intent to conceal proceeds of fraud.
U.S. Attorney Damian Williams said: “This is the third case we are announcing this week to shed light on fraud in the cryptocurrency and digital asset ecosystem. As alleged, the father-son duo of Hugh and Brandon Austin engaged in a cryptocurrency fraud and money laundering scheme that victimized both sophisticated and novice cryptocurrency investors alike out of millions of dollars. They used the money from victims to fund a lavish lifestyle of travel, luxury hotels, and fancy restaurants. Thanks to the tenacity of HSI and the career prosecutors of this Office, Hugh Austin is now facing serious criminal charges for his alleged crimes, and Brandon Austin has already pled guilty.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The charging of Hugh and Brandon Austin reflects our ongoing commitment to thwarting individuals involved in all types of financial crimes, especially those that affect the digital environment and subsequently impact the security of our economy. As alleged, these sophisticated scammers exploited the novelty of digital currency to defraud unsuspecting investors out of millions of dollars, while utilizing it as a cover to engage in illicit activity. HSI commends the prosecutorial team at the Southern District of New York’s Complex Frauds and Cybercrime Unit for their unwavering support.”
According to the allegations in the Complaint, which was unsealed today in Manhattan federal court, as well as publicly filed court documents and statements made at public court proceedings:[1]
EUGENE WILLIAM AUSTIN, JR. participated in a scheme with his son BRANDON P. AUSTIN and others to steal money from investors and other victims by fraudulently offering to, among other things: (i) serve as a broker for sales of large quantities of cryptocurrency at below-market exchange rates; (ii) provide short-term investments in cryptocurrency for purportedly high returns; and (iii) provide marketing and advertising services to small businesses, while knowing that, in fact, EUGENE AUSTIN and BRANDON AUSTIN would not provide the promised cryptocurrency, returns, or services. EUGENE AUSTIN also frequently sought personal loans from friends and acquaintances in connection with his purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest. In each instance, investors and lenders lost their money, and EUGENE AUSTIN and BRANDON AUSTIN frequently spent investors’ funds on personal expenses, including airline travel, luxury hotels, restaurants, and shopping, as well as nominal payments to victims to prolong the scheme. In total, EUGENE AUSTIN and BRANDON AUSTIN have caused more than $10 million in losses to over 20 victims. Below are several examples of victims defrauded by AUSTIN and BRANDON:
- In or about February 2018, EUGENE AUSTIN and BRANDON AUSTIN fraudulently induced a Japanese cryptocurrency company to conduct an interstate cryptocurrency transaction for approximately $600,000 worth of cryptocurrency, for the purported purchase of fundraising and marketing services, which were never provided to the victim.
- In or about August 2018, EUGENE AUSTIN and BRANDON AUSTIN fraudulently induced a partner at a California-based investment firm to send an interstate wire transfer of approximately $5 million to a Manhattan-based attorney, for the purported purchase of cryptocurrency, which was never provided to the victim.
- In or about September 2018, EUGENE AUSTIN and BRANDON AUSTIN fraudulently induced a cryptocurrency start-up company to send an interstate wire transfer of approximately $100,000 for a purported cryptocurrency investment opportunity with high returns; instead of using the funds as promised, EUGENE AUSTIN and BRANDON AUSTIN spent the money on gas, restaurants, hotels, flights, and cash withdrawals.
- In or about January 2019, EUGENE AUSTIN and BRANDON AUSTIN fraudulently induced the founder and chairman of a New Jersey- and Hong Kong-based cryptocurrency investment firm to send an interstate wire transfer of approximately $4 million to a Georgia-based attorney for the purported purchase of cryptocurrency, which was never provided to the victim.
- In or about June 2020, EUGENE AUSTIN and BRANDON AUSTIN embezzled approximately $776,000 that had been sent via an interstate wire transfer to the trust account of a New York-based real estate attorney for the purported purchase of cryptocurrency.
- In or about October 2021, EUGENE AUSTIN and BRANDON AUSTIN embezzled approximately $574,000 that had been sent via an interstate wire transfer to the bank account of a Manhattan-based investment firm for the purported purchase of cryptocurrency.
In connection with BRANDON AUSTIN’s guilty plea, he forfeited his rights and interest in a 2022 E-Pace P250 Jaguar, depicted below:
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EUGENE WILLIAM AUSTIN, JR., 60, of Port Jefferson, New York, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit interstate transportation of stolen property, which carries a maximum sentence of five years in prison.
BRANDON P. AUSTIN, 27, of Coram, New York, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. In connection with the guilty plea, BRANDON AUSTIN also agreed to forfeit $3,406,450 and to make restitution to victims in the amount of $3,406,450. BRANDON AUSTIN is scheduled to be sentenced on September 6, 2023, at 12:00 p.m., by Judge Castel.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of each defendant will be determined by the judge.
Mr. Williams praised the investigative work of HSI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew K. Chan, Sarah Lai, and Olga I. Zverovich are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant, EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin,” is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
U.S. v. Eugene Austin Complaint U.S. v. Brandon Austin InformationDiversicare and Two Occupational Therapy Assistants to Pay over $1.3 Million to Resolve False Claims Act AllegationsRead the Press Release
MONTGOMERY, ALABAMA – Diversicare Healthcare Services, LLC, with related subsidiary Diversicare entities (Diversicare), along with Certified Occupational Therapy Assistants Kellie S. Lemons and Charles M. James, have agreed to pay the United States $1,377,696.00 to resolve allegations that they violated the False Claims Act (FCA) by submitting claims to Medicare for occupational therapy services that they did not provide, announced United States Attorney Sandra J. Stewart.
The FCA is a federal law that imposes civil liability on any persons or entities who submit false claims for payment to the federal government or its contractors. It imposes damages three times the loss caused by the false claims and a civil penalty between $13,508.00 to $27,018.00 per false claim. The FCA is the primary authority used by the Civil Division of the United States Attorney’s Office to redress fraud, waste, and abuse within federal programs, including Medicare.
Diversicare is a group of private companies providing long-term care and rehabilitation services in approximately 43 locations across five states — Alabama, Mississippi, Tennessee, Texas, and Kansas. Prior to March 1, 2023, Diversicare operated the Canterbury Health Care Facility in Phenix City, Alabama.
The civil settlement resolves a lawsuit that a former Diversicare employee brought under the qui tam, or whistleblower, provisions of the FCA. The complaint alleged that Lemons and James falsified occupational therapy records when they clocked into work at Diversicare’s Canterbury facility, left the premises, and “moonlighted” for other home health care companies in the area, meanwhile billing for services at Diversicare that they did not perform. The complaint also alleged that Diversicare permitted and even condoned these practices and knowingly submitted false claims to Medicare for reimbursement for these services.
The United States has intervened in the lawsuit for purposes of settlement. The settlement resolves the allegations that from March 1, 2018, through September 25, 2020, Diversicare, Lemons, and James submitted, or caused to be submitted, false claims to Medicare Part A for occupational therapy services that were not rendered to patients at Canterbury Health Care Facility.
The FCA permits private citizens to initiate a suit on behalf of the United States and share in any recovery. The whistleblower who brought the lawsuit will receive in excess of $200,000.00 of the settlement as his share of the government’s recovery in the matter.
The case was investigated by the United States Attorney’s Office for the Middle District of Alabama in cooperation with the Office of Inspector General for the United States Department of Health and Human Services. Assistant U.S. Attorneys MaryLou E. Bowdre and Samantha R. Miller represented the United States in the matter, assisted by Investigative Analyst Rita E. Richard, Paralegal Specialist Stacey H. VanAlst, and Investigator (Contractor) Gregory T. Holston.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
District Man Sentenced to Seven Years in Prison for Distributing Child PornographyRead the Press Release
WASHINGTON – Alexus Camero, 27, of Washington, D.C., was sentenced yesterday to 84 months in prison for distribution of child pornography, announced U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Emily Odom, and Interim Chief Ashan Benedict, of the Metropolitan Police Department (MPD). Cameron pleaded guilty on February 14, 2023.
According to court documents, in August of 2021, Camero met an individual online whom he believed was the father of a nine-year-old boy. In reality, this individual was a law enforcement officer, acting in an undercover capacity. Camero exchanged several messages with the undercover officer, and he expressed an interest in sexually abusing the child. At one point during this online chat, Camero asked the undercover officer if he and a friend could borrow the child for a night.
Throughout the course of this exchange, Camero sent the undercover two videos depicting the sexual abuse of very young children. On November 30, 2021, law enforcement executed a search warrant at Camero’s residence. When interviewed by law enforcement, the defendant admitted to chatting with the undercover and to distributing videos that depicted the sexual abuse of young boys. The defendant also admitted that he had additional videos depicting child pornography saved on his cell phone. Law enforcement recovered Camero’s cellular telephone and found at several images and videos depicting the sexual abuse of children. The National Center for Missing and Exploited Children confirmed that some of the children depicted in these images have been identified and rescued by law enforcement.
Following his prison term, Camero will be place on supervised release for 15 years and must register as a sex offender for a period of 25 years. He will be ordered to pay restitution to the minor victims who are depicted in the child sex abuse images and videos that he distributed and possessed.
In announcing the sentence, U.S. Attorney Graves, Acting SAC Odom, and Interim Chief Benedict commended the work of the agents and detectives who investigated the case. They also acknowledged the work of Assistant U.S, Attorneys Amy Larson and Rachel Forman who investigated and prosecuted the case.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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 about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Distribution and Possession of Controlled Substances and Illegal Possession of Firearm Leads to Federal Prison Time for Two MenRead the Press Release
SHREVEPORT/LAKE CHARLES, La. – United States Attorney Brandon B. Brown announced the sentencing of two men in Shreveport and Lake Charles for their role in the trafficking of drugs in those cities.
United States District Judge S. Maurice Hicks, Jr. sentenced Paul Vincent Williams, 38, of Bossier City, Louisiana, to 216 months (18 years) in prison, followed by 5 years of supervised release. According to evidence introduced in court, law enforcement agents working with the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were involved in an ongoing investigation of drug trafficking activities in the Shreveport/Bossier City area. Through their investigation, agents had specific information that Williams had sold and distributed various amounts of methamphetamine in February and March 2021. These amounts of methamphetamine were confirmed through testing by the DEA laboratory to be a total of 1,250 grams of pure methamphetamine. Agents conducted surveillance of Williams in February 2022 and subsequently conducted a traffic stop of Williams. A federal search warrant was obtained for Williams’ vehicle and inside agents recovered approximately 232.2 grams of suspected methamphetamine, 4.4 grams of suspected heroin, 37.4 grams of suspected marijuana, 56.3 grams of assorted pills, as well as five firearms, ammunition and over $8,500 in cash. The seized narcotics were sent to the DEA laboratory for testing and the methamphetamine was confirmed to be 216.9 grams of pure substance, while the suspected heroin was found to be fentanyl, containing 0.5 grams of the purse substance. Williams pleaded guilty on March 13, 2023, to possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
The case was investigated by the FBI and ATF and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
Trevor Selwyn Daniel, Jr., 50, of Decatur, Georgia, was sentenced by United States District Judge James D. Cain, Jr. to 120 months in prison, followed by 5 years of supervised release, for possession with intent to distribute cocaine. On February 12, 2020, Daniel was stopped by a Louisiana State Police trooper while traveling along Interstate 10. A K-9 officer arrived on the scene to assist and alerted to the presence of narcotics in the vehicle. A search of the vehicle was then conducted by law enforcement officers, and they found over five kilograms of cocaine wrapped in bricks and stored in duffel bags in the cargo area. Daniel admitted that the cocaine belonged to him and pleaded guilty to the charge on April 12, 2023.
This case was investigated by the Homeland Security Investigations-U.S. Immigration and Customs Enforcement and Louisiana State Police and was prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen.
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Cuban nationals sentenced in relation to sex trafficking in area strip clubsRead the Press Release
HOUSTON – Three Cuban nationals have been ordered to prison for sex trafficking and related crimes.
Rasiel Gutierrez Moreno, 38, Hendry Jimenez Milanes, 39, and Rafael Mendoza Labrada, 29, were sentenced to 210, 120 and 34 months in federal prison, respectively. Moreno was ordered to pay $451,298 in restitution, while Milanes was ordered to pay $359,108.
Gutierrez Moreno pleaded guilty to sex trafficking and interstate travel in aid of racketeering Oct. 28, 2021. As part of his plea agreement, he admitted to bringing women from Cuba to the United States and charging them inflated smuggling debts as high as $30,000. Gutierrez Moreno forced the women to work in Houston-area strip clubs, such as Michaels’ International, where they danced and engaged in commercial sex acts with club patrons. They then had to provide all the proceeds to Gutierrez Moreno to pay down their debt.
Gutierrez Moreno further acknowledged smuggling and extracting a debt from approximately 20 other women in this manner.
Gutierrez Moreno admitted that to keep a specific victim under his control while she worked for him, he bragged about his acts of violence against other women and their families. On one occasion, Gutierrez Moreno beat another woman shortly before the other victim arrived at his home and ensured she observed that woman’s injuries. When the first victim escaped Gutierrez Moreno, he contacted her family in both Miami and Cuba to demand she return to work and finish paying her debt to him.
Jimenez Milanes pleaded guilty Jan. 10, 2022, to coercion and enticement, while Mendoza Labrada pleaded guilty April 30, 2021, to interstate travel in aid of racketeering.
“These defendants cruelly used violence, threats of violence, and false debts to force vulnerable victims to engage in commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This kind of sex trafficking scheme is unlawful, dehumanizing and terrorizing to the women unable to break free. The Justice Department is committed to the vigorous prosecution of those who prey upon, abuse, and exploit others for their own financial benefit.”
“These human smugglers terrorized female migrants, using Houston’s strip clubs combined with psychological threats and sexual violence for their personal financial gain,” said U.S. Attorney Alamdar S. Hamdani. “The victims came to the United States in search of a new life, were especially vulnerable, and the defendants took advantage of that. The sentences imposed today send a strong message that the Southern District of Texas will not tolerate those who smuggle, threaten and abuse the vulnerable.”
“The court’s sentence today sends a strong message: The Diplomatic Security Service (DSS) is committed to making sure that those who commit sex trafficking face consequences for their criminal actions,” said Special Agent in Charge John Keith of the Department of State's DSS - Houston Field Office. “DSS’ strong relationship with the Department of Justice and other law enforcement agencies around the world continues to be essential in the pursuit of justice.”
DSS conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA), with the assistance of the Homeland Security Investigations of Miami, Florida, and the Department of Labor Wage and Hour Division.
Established in 2004, the U.S. Attorney’s Office in Houston formed HTRA to combine resources with federal, state, and local law enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those survivors who the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri Zack for the Southern District of Texas and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Crystal Lake Woman Sentenced to Federal Prison for Conspiring to Distribute MethamphetamineRead the Press Release
A woman who conspired to distribute methamphetamine in the Crystal Lake area was sentenced June 29, 2023, to more than 5 years in federal prison.
Ashley Dawn Henken, age 39, from Crystal Lake, Iowa, received the prison term after a January 5, 2023, guilty plea to one count of conspiracy to distribute a controlled substance.
At the plea hearing, Henken admitted that between 2020, and continuing to May 2021, she did knowingly and intentionally conspire with others to distribute 500 grams or more of a methamphetamine mixture, and/or 50 grams of actual (pure) methamphetamine, commonly called “ice” methamphetamine. Henken was stopped by law enforcement on May 10, 20221, with a pound of methamphetamine.
Henken was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Henken was sentenced to 60 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Henken is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Clear Lake Police Department, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-3032.
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Covington Man to Serve Nine Years for Possession of Child Sex Abuse MaterialRead the Press Release
ROANOKE, Va. – A Covington, Virginia, man was sentenced yesterday to nine years in federal prison for using the peer-to-peer filesharing software Freenet to download images and videos of child sex abuse.
Jerald Gray, 51, pleaded guilty in December 2022 to one count of knowingly possessing one or more matters containing visual depictions of minors engaging in sexually explicit conduct, including prepubescent minors and minors who had not attained 12 years of age.
According to court documents, in July 2021, Gray began downloading child sex abuse videos depicting prepubescent girls, some under the age of 12, engaged in sexually explicit conduct.
Based on information obtained through the course of their investigation, agents with the Federal Bureau of Investigation obtained and executed a search warrant at Gray’s residence on December 8, 2021, and seized his computer and cell phone, among other items. Analysis of his computer revealed at least 65 movie or image files that contained child sex abuse material. In addition, Gray’s cellphone contained at least 11 images that depicted child sexual abuse material.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The FBI investigated the case and Assistant U.S. Attorneys Matthew Miller, Rachel Barish Swartz, and Jason Scheff prosecuted the case.
Connecticut Sex Offender Indicted in Jacksonville for Committing Multiple Child Sexual Exploitation OffensesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Andrew Thomas Bull (35, Tolland, Connecticut), formerly known as Andrew Thomas Picard, with the attempted production and distribution of child sex abuse materials. If convicted, Bull faces a minimum mandatory sentence of 25 years, up to 170 years, in federal prison and a lifetime term of supervised release. On July 7, 2023, Bull was arraigned in Jacksonville and ordered detained pending his trial.
Bull is a registered sex offender, having been convicted in Connecticut in 2013 of importation and illegal possession of child pornography. On May 25, 2023, FBI agents executed a search warrant at Bull’s home in Connecticut and Bull was arrested and later transported to Jacksonville for prosecution.
An indictment is only an allegation, and every defendant is presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and New Haven, Connecticut. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clinton Man Pleads Guilty to Employment Tax Fraud, Mail Fraud and False Statements; Leominster Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
BOSTON – A Clinton man and Leominster man pleaded guilty today in federal court in Worcester in connection with their involvement in tax and mail fraud, and other offenses.
Juliano Fernandes, 42, of Clinton, pleaded guilty to 11 counts of employment tax fraud, two counts of mail fraud, and two counts of making false statements to a federal agency. Anderson Dos Santos, 39, of Leominster, pleaded guilty to four counts of filing a false tax return. U.S. District Court Judge Margaret R. Guzman scheduled sentencings for October 2023.
Fernandes exercised financial control over Force Corporation and AB Construction, both Massachusetts-based construction companies. Between 2015 and 2017, Fernandes willfully failed to account for and pay over employment taxes for these companies to the United States Internal Revenue Service. In addition, from approximately April 2013 through January 2017, Fernandes defrauded worker’s compensation insurance companies by misrepresenting the number of employees at Force Corporation and AB Construction, and the amount of wages paid to the employees. Fernandes also, in August 2017, made materially false statements to the U.S. Department of Labor regarding the value of property he owned in Lunenburg, Mass., and that he never had responsibility or control over the payroll of Force Corporation. These statements related to the Department of Labor’s efforts to collect funds from Fernandes and his businesses in connection with alleged civil wage violations.
Dos Santos, who worked for AB Construction, signed and filed individual tax returns for tax years 2013, 2014, 2016 and 2017, in which he materially under-reported his income.
The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of failure to pay over employment taxes and making a false statement each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of filing a false tax return provides for a sentence of up to three years in prison, three years of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, Boston Field Office; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud, Northeast Region; and Anthony DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement. Assistant U.S. Attorneys Brendan D. O’Shea and Danial Bennett of the Worcester Branch Office, and John T. Mulcahy of the Narcotics & Money Laundering Unit, are prosecuting the case.
Bedford County Man Pleads Guilty to Wire FraudRead the Press Release
LYNCHBURG, Va. – A Forest, Virginia man, who falsely obtained a $25,000 Paycheck Protection Program (PPP) loan in 2021, pleaded guilty last week in federal court to wire fraud.
Emmett Rudell Staton waived his right to be indicted and pleaded guilty to a one-count Information charging him with wire fraud. At sentencing, Staton faces up to twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Paycheck Protection Program (PPP) was a COVID-19 pandemic relief program administered by the Small Business Administration (SBA) that provided forgivable loans to small businesses for job retention and certain other expenses.
According to court documents, on January 21, 2021, Staton submitted an application for a $25,000 loan through the PPP for a lawncare business he purported to own. On the application, Staton falsely certified that the business had not permanently closed when in actuality he had never operated such a business. In his application, Staton also falsely claimed the business had four employees and an average monthly payroll of $10,000. Although he stated that the loan would be used only for authorized purposes, Staton instead used the loan proceeds for personal expenses, including significant online gambling expenditures.
In addition, Staton caused a second PPP loan application to be submitted in January 2021 using the name of another individual who was purported to be the owner of a daycare business. The application sought $14,000 in PPP funds to cover its three employees and average monthly payroll of $5,600 when, in fact, no such daycare business existed.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The FBI investigated the case, and the Office of the United States Bankruptcy Trustee referred the case to the United States Attorney’s Office for prosecution.
Assistant U.S. Attorney Michael Baudinet is prosecuting the case
Baton Rouge Man Sentenced for Being a Felon in Possession of a Firearm While Under IndictmentRead the Press Release
NEW ORLEANS, LOUISIANA – TEREROI THORNTON, a resident of Baton Rouge, was sentenced on Julu 11, 2023 by U.S. District Judge Wendy B. Vitter to twenty-four (24) months incarceration, three (3) years of supervised release and a mandatory $100 special assessment fee, announced U.S. Attorney Duane A. Evans. THORNTON had previously pled guilty to being a felon in possession of a firearm while under indictment, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D).
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of Federal Bureau of Investigation and the Louisiana State Police in this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit.
Barrio Azteca Gang Member Sentenced to 10 Years in Prison for Holding Migrants HostageRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, announced today that Alfredo Ochoa-Munoz was sentenced to 120 months years in prison. Ochoa-Munoz, 37, of Cuidad Juarez, Chihuahua, Mexico, pled guilty to conspiracy to take a hostage and three counts of hostage taking on Jan. 10, 2023.
According to court records, between Feb. 5 and Feb. 17 of 2022, three migrants were picked up after crossing illegally into the United States and dropped off at two trailers in Vado, New Mexico that were rented by Ricardo Barrientos-Noriega. En route, the driver took the migrants’ phones and transferred them to Ochoa-Munoz when they arrived at the trailers. Ochoa-Munoz, Barrientos-Noriega, and a third co-defendant, Luis Roberto Arturo Meza-Marin, informed the migrants that they were not allowed to leave the trailers until their families paid more money for their release. Ochoa-Munoz, at the order and direction of Barrio Azteca gang member, Eduardo Sarellano-Garcia, a.k.a. “Padrino,” contacted the migrants’ families and demanded payment for their release. The migrants were threatened with death, injury and continued detainment until such payments were received.
On Feb. 17, after Ochoa-Munoz and his co-defendants received full payments from the migrants’ families, the migrants were picked up by Michael Ryan Ratliff and told that they would be driven to their next destination. En route, the group encountered Border Patrol agents at the I-10 checkpoint located between Las Cruces and Deming, New Mexico. Based on their knowledge and experience, agents detained the group for questioning at which time the migrants admitted to being in the United States illegally and had been held against their will at the location at which they were harbored. Ratliff was arrested at the checkpoint. During subsequent interviews, the three migrants were able to provide agents with the location of the trailers they had been held in. Agents went to the trailers where they encountered and arrested Ochoa-Munoz, Meza-Marin and Barrientos-Noriega.
Ochoa-Munoz, Sarellano-Garcia, Meza-Marin, Barrientos-Noriega and Ratliff, were indicted by a federal grand jury on May 19, 2022. Meza-Marin, 33, of Chihuahua, Mexico, pled guilty to conspiracy to take a hostage and three counts of hostage taking on June 16, 2022, and will remain in custody pending sentencing, which has not been scheduled. Barrientos-Noriega, 24, of Torreon, Mexico, pled guilty to conspiracy to take a hostage and three counts of hostage taking on Sept. 29, 2022, and will remain in custody pending sentencing, which has not been scheduled. Ratliff, 33, of Corinth, Texas, pled guilty to conspiracy to transport illegal aliens and three counts of transporting illegal aliens on June 9, 2022, and was sentenced to 12 months in prison or time served, whichever was longer, and three years of supervised probation.
Homeland Security Investigations investigated this case with assistance from U.S. Border Patrol. Assistant United States Attorneys Matthew Ramirez is prosecuting the case.
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Attorney and Former Bank Director Convicted at Trial of Bank FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that yesterday a federal jury found MENDEL ZILBERBERG guilty of five counts — conspiracy to commit bank fraud, bank fraud, conspiracy to make false statements to a bank, making false statements to a bank, and misapplication of bank funds — in connection with a scheme to obtain a fraudulent loan from Park Avenue Bank. The defendant was found guilty following a one-week trial before U.S. District Judge George B. Daniels. Sentencing is scheduled for November 29, 2023, before Judge Daniels.
U.S. Attorney Damian Williams said: “Mendel Zilberberg, while working as a practicing lawyer and serving as a director of Park Avenue Bank, ignored his duties and took advantage of the bank, viewing it as the object of his fraud scheme. Far from helping the bank through a tenuous moment in its existence, Zilberberg was focused on squeezing money out of it for himself, on the basis of lies. The bank collapsed just months after Zilberberg defrauded it.”
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
In or about 2009, ZILBERBERG conspired with Aron Fried and others to obtain a fraudulent loan from Park Avenue Bank (the “Bank”). Knowing that the conspirators would not be able to obtain the loan directly, the conspirators recruited a straw borrower (the “Straw Borrower”) to make the loan application. The Straw Borrower applied for a $1.4 million loan from the Bank on the basis of numerous lies directed by ZILBERBERG and his coconspirators.
ZILBERBERG used his privileged position at the bank to ensure that the loan was processed promptly. Based on the false representations made to the Bank and ZILBERBERG’s involvement in the loan approval process, the Bank issued a $1.4 million loan to the Straw Borrower, which was quickly disbursed to the defendants through multiple bank accounts and transfers. In total, ZILBERBERG received more than approximately $500,000 of the loan proceeds. The remainder of the loan was split between Fried and another conspirator. The Straw Borrower received nothing from the loan. The loan ultimately defaulted, resulting in a loss of over $1 million.
On November 15, 2022, Fried pled guilty to conspiracy to commit bank fraud. On April 10, 2023, Judge Daniels sentenced Fried to one year and one day in prison.
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ZILBERBERG, 65 of Monsey, New York, was convicted of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to make false statements to a bank, which carries a maximum sentence of five years in prison; making false statement to a bank, which carries a maximum sentence of 30 years in prison; and misapplying bank funds, which carries a maximum sentence of 30 years in prison. The maximum sentence ZILBERBERG faces on all of these charges is 125 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of the Inspector General.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Dina McLeod, Daniel G. Nessim, and Kimberly Ravener, with the assistance of Paralegal Specialist Joseph Carbone, are in charge of the prosecution.
Arkansas Resident Pleads Guilty to Shooting at Police Officers While Holding InfantRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Elbert Andrew Fuller, Jr., age 24, of Fort Smith, Arkansas entered a guilty plea to a seven-count indictment which includes: one count of Assault with Intent to Commit Murder in Indian Country; one count of Child Abuse in Indian Country; one count of Child Neglect in Indian Country; three counts of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; and one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence.
The charges arose from an investigation by the Roland Police Department, the Sequoyah County Sheriff’s Department, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation.
According to investigators, on October 8, 2022, Fuller fired a pistol at a family member. When Roland Police Department officers responded to the scene, Fuller – while holding an infant child – opened fire on them as well. The crimes occurred in Sequoyah County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Fuller will remain in custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Zachary W. Parsons represented the United States.
Andover Man Pleads Guilty to Role in Northern New England Fentanyl Trafficking OperationRead the Press Release
BOSTON – An Andover man pleaded guilty yesterday in federal court in connection with a fentanyl trafficking operation that spanned across northern New England.
Randell Starlin Medina Rodriguez, 27, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl and p-Fluorofentanyl, a fentanyl analogue. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 5, 2023.
Medina Rodriguez was arrested and charged in February 2022 along with five other co-defendants. All six defendants were subsequently indicted by a federal grand jury in March 2022.
Beginning in mid-2021, Medina Rodriguez conspired with others to deliver hundreds of grams of fentanyl throughout Massachusetts, New Hampshire and Maine. Specifically, Medina Rodriguez and others served as Massachusetts-based dealers who delivered large quantities of fentanyl to wholesale customers who in turn would distribute those substances in Maine and/or New Hampshire.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl and p-Fluorofentanyl, a fentanyl analogue, provides for a maximum sentence of 20 years’ imprisonment, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistant U.S. Attorneys Stephen Hassink and Lauren Graber of the Narcotics & Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Allianz Global Investors U.S. Sentenced in Connection with Multibillion-Dollar Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that Allianz Global Investors U.S. LLC (“AGI”) was sentenced today by U.S. District Judge Colleen McMahon for a multi-year securities fraud involving a series of private investment funds managed by AGI. Those funds ultimately collapsed, leading to billions of dollars of investor losses. AGI previously pled guilty to one count of securities fraud.
U.S. Attorney Damian Williams said: “Telling the truth to investors is the core duty of an investment adviser. AGI violated that central tenet and deceived investors by materially understating the risk to which their assets were exposed. This Office and our law enforcement partners will be relentless in protecting investors, and this sentence should send a message to the industry: companies will be held responsible when they fail to implement safeguards and ensure that they uphold their duties to investors.”
According to court filings and statements made in court proceedings:
From at least in or about 2014 up through and including at least in or about March 2020, AGI, an investment adviser registered with the Securities and Exchange Commission (“SEC”), headquartered in New York City, and an indirect, wholly owned subsidiary of Allianz SE – one of the world’s largest financial services companies and one of the world’s largest insurance companies – engaged in a scheme to defraud investors in multiple private funds within AGI’s “Structured Alpha Funds.” The Structured Alpha Funds (the “Funds”) were among the most profitable groups of funds AGI managed and, at their height, held over $11 billion in assets under management. The Funds employed a complex options trading strategy that sought to provide investors with guaranteed returns, while managing risk. AGI deceived the Funds and their investors by understating the risk to which investors’ assets were exposed, and therefore how the returns they touted were actually generated.
In particular, in order to generate the Funds’ positive returns and attract and retain capital, AGI fraudulently misled investors regarding the risk taken on by the funds. Among other things, AGI misrepresented the hedging and other risk-mitigation strategies that were undertaken to protect investor funds. Investors also received documents altered to hide the riskiness of the Funds’ investments. Instead of managing the Funds as promised to investors, AGI deployed an investment strategy that prioritized returns over risk management in ways that were fundamentally inconsistent with representations made to investors. As a result of this scheme to defraud, investors’ funds were exposed to higher risk than promised, and investors were deprived of information about the true risks to which their investments were exposed.
After the market dislocations following the onset of the COVID-19 pandemic (the “COVID Crash”) in March 2020, the Funds lost in excess of $8 billion in market value and $3 billion in principal, faced margin calls and redemption requests, and ultimately were shut down. More than 100 investors were victims of this scheme, including, among others, pension funds for teachers, religious organizations, bus drivers, engineers, and other individuals, universities, and charitable organizations.
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AGI was sentenced to financial penalties comprised of over $463 million in forfeiture, over $3.23 billion in restitution, and over $2.33 billion in fines. These amounts include restitution to the victims, the forfeiture of proceeds traceable to the fraud, and the forfeiture by AGI’s corporate parent of the dividends that were paid from AGI to its corporate parent that are traceable to the fraud. AGI has paid these financial penalties in full and has compensated victims of the conduct through settlements in civil litigation filed against AGI in an aggregate amount of over $5 billion.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service. Mr. Williams further thanked the SEC, which is pursuing parallel civil actions.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Nicholas Folly, Margaret Graham, and Allison Nichols are in charge of the prosecution.
Aliquippa Resident Sentenced to One Day of Imprisonment for Bank Fraud and ConspiracyRead the Press Release
PITTSBURGH, PA - A resident of Aliquippa, Pennsylvania, has been sentenced in federal court to one (1) day of imprisonment and three (3) years of supervised release on her conviction of bank fraud and conspiracy, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Lee Ann Benninghoff, age 45, Aliquippa.
According to information presented to the court, Benninghoff owned and operated Complete Escrow and Bella Casa Realty. From February 2014 through March 2017, Benninghoff used her position and connections in real estate financing, and conspired with others in the industry, to submit fraudulent gift letters in support of mortgage loan applications. The gift letters misrepresented the source of the funds and their purported purpose.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Secret Service for the investigation leading to the successful prosecution of Benninghoff.
Alaska Military Servicemember indicted for allegedly molesting teens on flights through SeattleRead the Press Release
Seattle – A 41-year-old Chief Warrant Officer in the Army, currently stationed in Alaska, was indicted last week for two counts of abusive sexual contact while on board an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. James Benecke was taken into custody at Joint Base Elmendorf-Richardson outside of Anchorage, Alaska and will make his initial appearance in U.S. District Court in Alaska today at 2:00 PM (Alaska Time – 3:00 Pacific Time). He will be scheduled to appear in U.S. District Court in Seattle later this month.
According to the indictment, on April 12, 2023, on an Alaska Airlines flight from Anchorage to Seattle, Benecke allegedly intentionally touched the buttocks of a 16-year-old teen who was seated next to him. The indictment charges that the contact was intentional for his sexual arousal.
Two months later, on June 12, 2023, on an Alaska Airlines flight from Dallas to Seattle, Benecke allegedly touched the buttocks and inner thigh of the 18-year-old woman who was seated next to him. In this instance, the contact was reported to the flight crew by the teen and her boyfriend and Benecke was moved to a seat at the rear of the plane. He was interviewed by law enforcement upon arrival in Seattle.
Due to the heavy travel schedule of the defendant, the investigation is ongoing and law enforcement is interested in speaking with anyone who may have been seated near to Benecke on an aircraft. Those with information should call: 1-800-CALL-FBI (225-5324)
Abusive Sexual Contact is punishable by up to two years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Jocelyn Cooney.
11 July 2023
“Wrecking Ball” lands LPR in federal prisonRead the Press Release
GALVESTON, Texas - A 56-year-old legal permanent resident from Mexico has been sentenced in a cocaine and heroin conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Juan Gonzalez-Cardebas following an 11-day trial in August 2022. He was convicted of conspiracy to possess with intent to distribute five or more kilograms of cocaine and one or more kilograms of heroin as well as possession with intent to distribute 18 kilograms of cocaine.
U.S. District Judge Jeffrey Brown has now ordered him to serve a total of 120 months in federal prison. He could also lose his status to reside in the United States.
The investigation focused upon a group of distributors and their associates, primarily citizens of the Dominican Republic, who used common sources of drugs in Mexico to supply their customers in numerous states other than Texas. This group of distributors sold cocaine and heroin throughout the United States but operated out of the Houston area.
Gonzalez worked within the drug trafficking organization by transporting cocaine from the Dallas and Houston areas to other states such as Virginia. He received shipments of cocaine and used his son-in-law’s moving company to deliver the cocaine to drug customers.
The defense attempted to convince the jury that he was an honest hard-working man trying to provide for his family and that his son-in-law set him up. They did not believe those claims and found Gonzalez guilty as charged.
Gonzalez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation dubbed “Wrecking Ball” with the assistance of the Houston Police Department. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
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 on the Department of Justice’s OCDETF webpage.
Yakima Man Sentenced to 300 Months Imprisonment and Lifetime Supervised Release for Production and Attempted Production of Child Pornography and Possession of Child PornographyRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Miguel Urbina, age 38 of Yakima, Washington was sentenced after pleading guilty to two counts of Production and Attempted Production of Child Pornography and one count of Possession of Child Pornography. United States District Judge Mary K. Dimke imposed a sentence of 300 months imprisonment to be followed by a life term of supervised release. Urbina will also be required to register as a sex offender.
According to Court documents, Urbina and another person produced child pornography in February 2007, by surreptitiously making an audio/video recording with a digital video camera concealed in a woman’s purse that was placed inside a bathroom in the Union Gap Mall. This camera captured explicit images and video of minor children using the bathroom. These images and videos were saved to Urbina’s computer hard drive. Then, between November 2008 and November 2009, Urbina, produced and attempted to produce child pornography with an individual who was under the age of eighteen.
On April 23, 2020, FBI agents executed a federal search warrant on Urbina’s residence in Yakima, Washington and seized a hard drive containing thousands of images of child pornography. The search warrant also recovered the audio/video recording from the device that was placed inside the bathroom at the Union Gap Mall as well as the explicit recordings Urbina made in 2008 and 2009.
“Mr. Urbina’s exploitation of minor children spanned two decades, warranting the strict sentence the Court imposed today,” stated U.S. Attorney Vanessa R. Waldref. “Mr. Urbina surreptitiously recorded unsuspecting children and preserved those materials for his own gratification. Later, he exploited another child, making sexually explicit recordings of that child. I am grateful for the FBI’s intervention and for the incredible efforts of investigators and prosecutors, who devote their careers to keeping children in Eastern Washington safe from those who would prey on the most vulnerable members of our community.”
“As a parent and as a law enforcement officer, I am horrified at Mr. Urbina’s blatant pattern of exploiting and victimizing children,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “His crimes, which dated back for years, included the use of a concealed camera to produce and store thousands of child sexual abuse images. The digital images child predators create are as lasting as the harm they cause, and we continue to fight with the hope that the consequences will deter a future offender.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Michael Murphy, Assistant U.S. Attorney for the Eastern District of Washington.
1:20-CR-2049-MKD
Winamac Woman Sentenced to 80 Months in PrisonRead the Press Release
SOUTH BEND – Laci Lindsey, 49 years old, of Winamac, Indiana, was sentenced yesterday by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to distributing over 50 grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Lindsey was sentenced to 80 months in prison followed by 5 years of supervised release.
According to documents in the case, between May 2021 and April 2022, Lindsey sold methamphetamine multiple times in an amount totaling approximately 295 grams. A search of her residence resulted in the recovery of more methamphetamine, a scale, drug ledger, packaging material and other drug paraphernalia.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Porter County Multi-Enforcement Group and the DEA North Central Laboratory. This case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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Wewoka Resident Sentenced for Sexually Abusing A Child in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Eduardo Chapa, age 35, of Wewoka, Oklahoma, was sentenced to 75 months imprisonment for one count of Abusive Sexual Contact in Indian Country.
The charges arose from investigations by the Seminole County Sheriff’s Department and the Federal Bureau of Investigation.
On April 4, 2022, Chapa pleaded guilty to one count of Abusive Sexual Contact in Indian Country. At the plea hearing, Chapa admitted to sexually abusing a minor under the age of 16 between 2018 and 2019. The crime occurred in Seminole County, within the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, U.S. District Judge for the Western District of Oklahoma, sitting by assignment, presided over the hearing in Muskogee. Chapa will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jarrod Leaman represented the United States.
West L.A. Man Charged with Running Decade-Long $4.5 Million Timeshare Telemarketing Scheme that Scammed Elderly VictimsRead the Press Release
LOS ANGELES – A federal grand jury today returned an indictment against a West Los Angeles man who allegedly ran a decade-long telemarketing scam primarily targeting elderly victims that fraudulently obtained more than $4.5 million via false promises to help victims sell or rent their timeshare properties.
Michael Alexai Dragunov, 44, whose aliases include “Michael Anthony Farole,” “Michael LeFleur,” “Victor Romano,” and “James Logan,” is charged in the 10-count indictment along with Christopher Michael Lang, 42, of Hays, Kansas, whose aliases include “Scott Graham,” “Don Lewis,” and “Jack Morgan.”
Both defendants are charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud in connection with telemarketing and email marketing targeting the elderly.
Dragunov was arrested on a federal criminal complaint in this matter on June 28 and was ordered jailed without bond. His arraignment is scheduled for July 18 in United States District Court in downtown Los Angeles. Lang was arrested in Kansas on June 28 and is expected to be arraigned in Los Angeles in the coming weeks.
According to the indictment, from August 2013 to June 2023, Dragunov and Lang purported to represent companies that provided advertising and other services to current or former timeshare owners. The companies included Premier Marketing LLC, CML Marketing Specialists Inc., Condo Rental Associates LLC, and Paramount Media LLC.
Dragunov and Lang allegedly contacted victims, many of whom were elderly, and, to conceal the fraudulent scheme and their true identities, the defendants also used Skype messaging service phone numbers and used aliases instead of their true names.
Victims allegedly were induced to enter into agreements with the defendants’ telemarketing companies – agreements that were formalized in documents that were faxed or sent electronically – by falsely representing that the telemarketing companies would assist the victims with selling or renting their timeshare properties for a “one time” advertising fee.
Despite the recurring fees that each victim paid, often reaching the hundreds of thousands over several years, no victim received the timeshare-related services or proceeds promised, the indictment alleges.
To dupe victims into sending them more money, Dragunov and Lang allegedly told their victims a series of lies, including that the fees being requested would be refunded or reimbursed to the victims upon completion of the sale or rental of the victims’ timeshare, that the victims still owed taxes on the timeshare properties, and if the victims tried to dispute their payments to the telemarketing companies, the victims would automatically lose their disputes and lose all funds paid and any proceeds from a sale or rental of their timeshares.
To create the false impression that the telemarketing companies were legitimate, Dragunov and Lang pretended to be the companies’ customers and engaged in hundreds of phony small transactions with the companies’ payment processing accounts, according to the indictment.
Dragunov and Lang also allegedly concealed material facts from the victims, including the fact that their money was being used to personally enrich themselves.
If convicted of all charges, Dragunov and Lang would face a statutory maximum sentence of 30 years in federal prison for each count.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS Criminal Investigation are investigating this matter. The Los Angeles County Sheriff’s Department; the Henry County (Ohio) Sheriff’s Department; Hays (Kansas) Police Department; and United States Marshals Service provided substantial assistance.
Assistant United States Attorney Julia Hu of the Major Frauds Section is prosecuting this case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 3 a.m. to 8 p.m. Pacific Time. English, Spanish, and other languages are available.
Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Watertown Man Sentenced to 14 Months for Unlawfully Possessing Sawed-Off ShotgunRead the Press Release
SYRACUSE, NEW YORK – Rafael Rondon, age 25, of Watertown, New York, was sentenced today to 14 months in prison for possessing an unregistered sawed-off shotgun.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Rondon admitted to possessing an unregistered Iver Johnson’s Arms & Cycle Works 12-gauge sawed-off shotgun. The shotgun, which had a barrel length of less than 18 inches and an overall length of less than 26 inches, was not registered to the defendant in the National Firearms Registration and Transfer Record, as required by law.
Senior United States District Judge Frederick J. Scullin, Jr. also sentenced Rondon to a 3-year term of supervised release, to begin after his imprisonment, and ordered forfeiture of the sawed-off shotgun.
Rondon also pled guilty on December 5, 2022, in the United States District Court for the District of Columbia, to obstruction of an official proceeding, a felony, for his activities inside the U.S. Capitol Building on January 6, 2021. Sentencing in that case is scheduled for September 12, 2023 in Washington, D.C., at which time he faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.
The Northern District of New York case was investigated by the FBI Albany Joint Terrorism Task Force, with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New York State Police. Assistant U.S. Attorneys Stephen Green and Richard Southwick prosecuted the case.
Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corporation Sentenced for Federal Program Theft in Excess of $3.7 MillionRead the Press Release
SAN JUAN, Puerto Rico –Today, United States District Court Judge Camille Vélez Rivé sentenced Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corporation (AMAC). The defendants pleaded guilty in April to one count of Theft of Federal Program Funds in relation to the misappropriation of operational funds provided by the United States Department of Housing and Urban Development (HUD) for the administration of public housing projects (PHPs) in Puerto Rico.
Defendant Walter Pierluisi Isern was sentenced to serve 43 months of imprisonment, two years of supervised release, and to pay the restitution amount of $2,035,498.86, jointly and severally with AMAC. Defendant Eduardo Pierluisi Isern was sentenced to serve 24 months of imprisonment, two years of supervised release, and to pay the restitution amount of $363,202.28, jointly and severally with AMAC. Defendant AMAC was sentenced to 3 years on probation and to pay the restitution amount of $3,712,000.00, jointly and severally with the co-defendants. All restitution amounts are to be paid to the United States.
According to court documents, the defendants were convicted of knowingly and intentionally stealing money from HUD federal assistance programs from 2014 to August 2022 for their own use and the use of others. The total amount of theft was approximately $3,712,000.00.
The defendants admitted in their plea agreements that despite AMAC’s fiduciary obligations, Walter Pierluisi Isern and Eduardo Pierluisi Isern used their executive positions within AMAC to operate a fraudulent scheme designed to circumvent that prohibition. In furtherance of that scheme, they illegally caused operational funds from the federal assistance programs to be routed via corporations and individuals they controlled, all to personally enrich themselves.
As detailed in the proceedings, Walter Pierluisi Isern created contracts for FiveStar Pest Control, Inc. (FiveStar) and CoolBreeze Air Conditioning, Inc. (CoolBreeze) to provide services to PHPs under AMAC’s management. He then caused multiple payments to be made by FiveStar and CoolBreeze to funnel money to Docu Warehouse, Pier Property, and XY Enterprises, companies controlled and owned by Walter Pierluisi Isern. Through this scheme, Walter Pierluisi Isern illegally obtained approximately $2,035,498.86 in HUD funding that was earmarked for PHP operational expenses.
The admissions included the recognition that Eduardo Pierluisi Isern caused checks from FiveStar and CoolBreez to be issued to the names of others, which he then cashed and deposited into his personal bank account for his personal use and benefit. Through this scheme, Eduardo Pierluisi Isern illegally obtained approximately $363,202.28 in HUD funding that was earmarked for PHP operational expenses.
AMAC, through its executives and officials, was convicted of illegally diverting a total of $3,712,000 in HUD funding that was earmarked for PHP operational expenses.
“As today’s sentences demonstrate, those who attempt to defraud federal programs will be held accountable,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The defendants and their company harmed the integrity of a program designed to help underprivileged homeowners. Today’s sentences send a clear message that any time federal dollars are misused and regardless of who steals taxpayer monies, we will work tirelessly to pursue justice.”
“Safeguarding taxpayer funded programs and resources that benefit low-income families in our communities is vital to the success of HUD’s programs,” said HUD OIG Special Agent in Charge, Jerome Winkle. “HUD OIG remains steadfast in its commitment to work closely with Federal prosecutors and law enforcement agencies and state and local partners to aggressively investigate those who threaten HUD programs.”
“When unscrupulous individuals scheme to create a contract monopoly, everyone loses,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The federal government loses because the money, destined to better communities in need, ends up in the pockets of criminals with inflated contract rates. The local government loses because every time federal funds are stolen in this manner; more stringent measures must be implemented to avoid future fraud. But the saddest of losses is the one suffered by the honest entrepreneur. The hard worker with a small maintenance company who puts his savings and the sweat of his brow into his business and doesn’t even get a chance to compete against these criminals for a government contract. The FBI will not allow this to happen without consequence. No one is above the law.”
Their co-defendant, David Vélez Hernández, former Director of Finance for AMAC, is scheduled to be sentenced on August 28, 2023.
The United States Department of Housing and Urban Development Office of Inspector General investigated this case with the assistance of the Federal Bureau of Investigation.
Assistant U.S. Attorney Marie Christine Amy is prosecuting the case.
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Violent York Home Invasion Lands Hooksett, NH Man in Federal Prison for 12 YearsRead the Press Release
PORTLAND, Maine: A Hooksett, New Hampshire man was sentenced in U.S. District Court in Portland today for conspiracy to commit Hobbs Act robbery and interference with commerce by violence. The charges stemmed from a violent home invasion in York, Maine.
Chief U.S. District Judge Jon D. Levy sentenced Derek DaPrato, 35, to 144 months in prison followed by three years of supervised release. DaPrato pleaded guilty on December 28, 2022.
According to court records, in August 2019, DaPrato and three other co-conspirators met in Hooksett and planned a home invasion of a York residence to rob marijuana and marijuana sale proceeds from the home’s resident. The group traveled to the York residence where two co-conspirators, armed with handguns and wearing masks, waited in the woods for the victim to return home. When the victim arrived, accompanied by two others, a violent physical altercation ensued. During the fight, a firearm was discharged, and a bullet struck the victim in the lower abdomen. The two co-conspirators fled. Police arrived approximately 15 minutes later, and the victim was rushed to the hospital where he underwent surgery to remove a .45 caliber bullet from his lower abdomen.
FOUR CONSPIRATORS SENTENCED TO A TOTAL OF 44+ YEARS: On March 27, 2023, Jason Candelario, 34, was sentenced to 175 months in prison and Luis Carpio, 33, was sentenced to 120 months for their roles in the home invasion. On March 17, 2023, the fourth co-conspirator, Andrew Soboleski, 30, was sentenced to 96 months for his role in the crime. All four men resided in New Hampshire.
The FBI, in conjunction with the York Police Department and the York County Sheriff’s Office, investigated the case.
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