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16 June 2023
Armed Career Criminal Sentenced to 19 Years in Prison for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an armed career criminal for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Corey L. Maze sentenced William Wayne Osbourn, 38 of Sylacauga, to 228 months in prison. Osbourn pleaded guilty on March 17, 2023, to unlawfully possessing a Smith & Wesson magnum revolver in October 2021 in Talladega County. Osbourn is prohibited from having a firearm because of multiple prior felony convictions and the sentence pronounced yesterday reflected his status as an Armed Career Criminal. Osbourn was previously convicted on January 25, 2011, in the Circuit Court of Talladega County, Alabama, of the offense of Receiving Stolen Property, First Degree; convicted on March 6, 2012, in the Circuit Court of Talladega County, Alabama, of the offense of Attempted Unlawful Manufacturing of a Controlled Substance, Second Degree; convicted on February 11, 2014, in the Circuit Court of Talladega County, Alabama, of the offense of Unlawful Manufacturing of a Controlled Substance, First Degree; and convicted on September 21, 2015, in the Circuit Court of Calhoun County, Alabama, of the offense of Robbery, First Degree.
“Prosecuting career criminals who possess firearms is an important part of reducing violent crime in this district,” said U.S. Attorney Escalona. “We are grateful for the investigation by the Sylacauga Police Department, Alabama Law Enforcement Agency, and the ATF in bringing this defendant to justice.”
“Today’s announcement is a perfect answer to why we chose to protect and serve the public. Illegal firearm possession and narcotic distribution in our communities is dangerous and damaging to everyone involved in the criminal activity,” said SAC Watson. “ATF will remain in lockstep with our local, state and federal partners in our continuing effort to combat violent crime and maintain public safety.”
The ATF investigated the case along with the Alabama Law Enforcement Agency and the Sylacauga Police Department. Assistant U.S. Attorneys Daniel McBrayer and Brittney Plyler prosecuted the case.
This case is a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Arizona Couple Sentenced to Three Years Each in Federal Prison for Selling Dried Opium Poppy to Indianapolis ResidentsRead the Press Release
INDIANAPOLIS- Todd Anderson, age 60, and Carolyn Anderson, age 58, of Flagstaff, Arizona, have each been sentenced to three years in federal prison after pleading guilty to distribution of opium poppy and morphine.
According to court documents, from June 2019, through August 2020, the Andersons packaged and shipped hundreds of pounds of poppy straw (dried opium poppy) to Indiana and California for re-distribution by others. The pair used their four businesses, registered in Arizona, to illegally import the poppy from the United Kingdom. Poppy Straw is a Schedule II Controlled Substance that can result in death if improperly ingested. It is highly addictive and can be abused for its opioid effects. An active ingredient in poppy straw is morphine, a powerful opioid that is also a Schedule II controlled substance.
The Anderson’s operated a website that offered “dried poppy pods” for sale in various quantities. Neither Todd or Carolyn, nor their businesses, were registered importers with the DEA to sell any controlled substances, as required by law. There are over a hundred types of poppy plants, but the variety unlawfully imported and sold by Todd and Carolyn Anderson is the only variety designated as a controlled substance. The dried poppy pods and other parts of the plant are often ground up and steeped in hot water to make “poppy tea” containing high amounts of morphine.
On multiple occasions, Carolyn Anderson arranged, via text message, for individuals in Indianapolis and Noblesville to purchase anywhere from 10 to 50 pounds of poppy straw for $125 per pound. The pair instructed buyers to describe their business to authorities as “an Online dried floral business” and labeled packages as containing “dried decorations.”
On August 13, 2020, Todd and Carolyn were arrested at their property in Arizona, where local law enforcement officers recovered 499 kilograms of poppy straw—approximately one half a metric ton. In addition to the poppy straw at their property, agents seized approximately 40 additional kilograms of poppy straw that the Andersons shipped to customers in Indiana and elsewhere.
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Rodney Hopkins, Postal Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division made the announcement.
“Illegal opioid abuse and substance use disorders have driven epidemic levels of overdoses and other traumas suffered by our families, friends, and neighbors,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The federal prison sentences imposed against these defendants demonstrate that interstate and international drug trafficking schemes carry serious criminal consequences. Our federal prosecutors, along with our outstanding partners in the DEA and USPIS, are committed to making the public safer through investigation and prosecution of those who push dangerous drugs into our communities in search of illicit profits.”
The Drug Enforcement Administration (DEA) and the U.S. Postal Inspection Service (USPIS) investigated this case. The sentences were imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that the two defendants be supervised by the U.S. Probation Office for three years following their release from federal prison and ordered each defendant to pay a $15,000 fine.
U.S. Attorney Myers thanked Assistant United States Attorneys Bradley P. Shepard and William L. McCoskey, who prosecuted this case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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15 June 2023
“Lottery Lawyer” Sentenced to 13 Years in Prison for His Role in Schemes to Defraud Lottery Winner Clients of More Than $100 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JASON KURLAND, a New York lawyer, and CHRISTOPHER CHIERCHIO were sentenced today and yesterday for their participation in schemes to defraud KURLAND’s prominent lottery-winning clients of more than $100 million. KURLAND, who was convicted at trial in July 2022 of wire fraud, honest services wire fraud, money laundering, and conspiracy to commit wire fraud and money laundering, was sentenced to 13 years in prison. CHIERCHIO, who pled guilty to one count of conspiracy to commit wire fraud and money laundering, was sentenced to five years in prison. U.S. District Judge Nicholas G. Garaufis imposed both sentences.
U.S. Attorney Damian Williams said: “The trial of Jason Kurland proved that Kurland violated his solemn duties as a lawyer and as an officer of the Court by stealing and misappropriating more than $100 million from his clients, who were some of the largest lottery winners in U.S. history. Just before trial, Christopher Chierchio pled guilty to assisting Kurland in this fraud, while personally pocketing more than $25 million of the lottery winners’ money. Now, the sentences imposed by Judge Garaufis show that for these defendants who made the lottery winners their victims, their luck has run out, and this Office will prosecute anyone who chooses to engage in fraud – no matter their title or degree.”
According to the Indictment, the evidence presented in court during trial, and other statements made during court proceedings:
Between mid-2018 and mid-2020, KURLAND was a successful partner at a Long Island law firm, earning approximately $500,000 in annual compensation. Through public advertisements and self-promotion, KURLAND built a niche practice representing lottery jackpot winners across the country. KURLAND marketed himself widely in the national media as the “Lottery Lawyer,” touting expertise in counseling individuals and families who had won lotteries and consequently achieved sudden wealth. KURLAND purported to represent dozens of lottery winners throughout the country with total winnings of approximately $3 billion.
Beginning in mid-2018, KURLAND retained three major lottery winners — one won the $1.5 billion Mega Millions lottery, another won the $245 million Powerball jackpot, and the third won the $150 million jackpot (together, the “Lottery Victims”). The Lottery Victims each paid KURLAND and his law firm hundreds of thousands of dollars so that he could advise them on how to safely invest their money. Instead, after gaining their trust, KURLAND steered his clients to invest in various risky businesses that he secretly co-owned and controlled with co-defendants Francis Smookler and Frangesco Russo, among others. In addition to ownership profits from these businesses, KURLAND received undisclosed kickbacks based on a percentage of the Lottery Victims’ investments. The defendants then used the money from the Lottery Victims’ investments to keep their scheme going and to support their lavish lifestyles, purchasing, among other things, expensive vacations and luxury vehicles, including two yachts and a Porsche.
In text messages and intercepted phone calls, KURLAND and his co-defendants brazenly gloated about defrauding the Lottery Victims. For example, when KURLAND learned that he had retained the first Lottery Victim, he texted Russo, “Have to figure out how to have this get to us,” referring to KURLAND’s desire to direct the Lottery Victim’s money to their businesses. KURLAND used the unique attorney-client relationship, which is founded on principles of honesty and loyalty, to his advantage, ensuring that he and his co-defendants secured multimillion-dollar investments. Following a pre-investment client meeting with one Lottery Victim, KURLAND texted Smookler and Russo, “haven’t talked about the investment yet, but I could not have teed it up better[.]” Shortly thereafter, that Lottery Victim invested $5 million in one of the defendants’ businesses without knowledge of KURLAND’s ownership in the business. On a separate occasion, after KURLAND convinced one of the Lottery Victims to unknowingly purchase his and his co-defendants’ entire business for $2 million — a transaction that resulted in a large payout to KURLAND and his co-defendants — KURLAND bragged to Smookler in a text: “Like looking at my bank statement today. Not gonna lie.” Motivated by greed, KURLAND and the co-defendants haphazardly invested the Lottery Victims’ money in high-risk deals, which turned out to be a Ponzi scheme. As it became apparent that their high-risk investments were in peril, KURLAND texted Smookler, “let me know if I’m keeping the Panamera [a Porsche model], or have to go back to my Lexus.” Within a little more than a year, a large portion of the Lottery Victims’ investment capital, totaling more than $40 million, was lost.
In April 2020, in an effort to try to recoup their losses and conceal their fraud from the Lottery Victims, KURLAND, Russo, and Smookler resorted to investing in Personal Protective Equipment (“PPE”) deals. CHIERCHIO was the middleman for the PPE deals. CHIERCHIO quickly capitalized on KURLAND’s precarious situation and need for quick returns, egging him on to “go deep with me here” and promising that KURLAND could “make all [his] losses back.” In turn, KURLAND stole $19.5 million from one of the Lottery Victims’ accounts. Only a portion of this money was ever used for the purported PPE deals while millions of dollars were skimmed off the top by CHIERCHIO and the other co-defendants. In total, KURLAND’s misrepresentations, along with the actions of his co-defendants, caused the Lottery Victims losses in excess of $80 million, as well as an additional $19.5 million that was stolen by KURLAND directly from one of the Lottery Victims.
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In addition to their prison terms, KURLAND, 49, of Dix Hills, New York, and CHIERCHIO, 54, of Queens, New York, were sentenced to three years of supervised release. KURLAND was ordered to pay $64,600,000 in forfeiture, and his restitution will be determined by the Court within 90 days of today’s sentencing. CHIERCHIO was further ordered to pay $26,550,000 in forfeiture and $30,550,000 in restitution.
Mr. Williams praised the work of the Federal Bureau of Investigation on this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla, Louis A. Pellegrino, and Olga Zverovich from the Southern District of New York, and Assistant U.S. Attorney Brian Morris from the Eastern District of New York are in charge of the prosecution.
Youngstown Area Attorney Sentenced to Prison for Participating in Scheme to Steal More Than $1.3 Million from the IRSRead the Press Release
YOUNGSTOWN – Robert J. Rohrbaugh, 49, of Canfield, Ohio, was sentenced today to 52 months in prison by U.S. District Judge Bonita Pearson for engaging in a conspiracy to help two men illegally obtain more than $1.3 million from the IRS. Rohrbaugh was also ordered to serve 3 years of community control, pay a $400 special assessment, and pay restitution in the amount of $1,352,779 to the IRS.
“Today’s sentence sends a clear message that if you steal from the public by cheating the IRS, you will be investigated and prosecuted,” said U.S. Attorney Rebecca C. Lutzko, “the United States Attorney’s Office remains committed to ensuring the integrity of our revenue stream funded by good, honest, tax paying citizens.”
“The defendants in this case went to great lengths to steal in excess of $1.3 million from the government,” said Carilyn Peters, Acting Assistant Special Agent in Charge, IRS, Criminal Investigation. “The sentencings in this case reaffirm that if you participate in these types of tax refund fraud schemes, you will likely go to jail.”
Rohrbaugh was convicted of conspiracy to commit offenses against the United States, aiding and abetting theft of government property, aiding and abetting false claims against the United States, and conspiracy to commit money laundering.
According to court documents and evidence presented at trial, Rohrbaugh, a Youngstown-area attorney, assisted co-conspirators Brandon Mace and Terris Chanley Baker with obtaining a tax refund check for a fictitious business in the amount of $1,352,779.
Court documents state that in early 2015, Mace and Baker obtained a bogus tax refund check for a fictitious business by using fabricated tax forms and listing false taxes and expenditures that showed significant tax overpayments. After obtaining the refund check, Mace and Baker then contacted and worked with Rohrbaugh to deposit the check in accounts owned by the defendants.
During the trial, prosecutors presented evidence that Rohrbaugh assisted Mace and Baker with the scheme even though he was aware that the two had obtained the refund from an illegitimate business based on false tax returns.
According to court documents, after cashing the refund check, Mace and Baker attempted to launder the money by purchasing several high-end and luxury vehicles. In addition, evidence showed that Mace and Baker used $150,000 of the refund check to pay Rohrbaugh for his services.
Co-defendant Brandon Mace pleaded guilty in September 2020 to his role in the scheme and was sentenced to 60 months in prison in February 2023. Co-defendant Terris Chanley Baker was convicted by a jury for his role in April 2022 and was sentenced to 98 months in prison in April 2023.
This case was investigated by IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Erica D. Barnhill.
Waynesville, N.C. Man Is Sentenced for Possession of Illegal MachinegunsRead the Press Release
ASHEVILLE, N.C. – Jacob Ryan McClure, 25, of Waynesville, N.C. was sentenced to 33 months in prison today followed by three years of supervised released for possession of machineguns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff William Wilke of the Haywood County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to documents filed with the court and today’s sentencing proceedings, on July 6, 2022, deputies with the Haywood County Sheriff’s Office stopped McClure’s vehicle for a traffic violation. Over the course of the traffic stop, law enforcement found in McClure’s vehicle 97 illegal conversion devices, commonly known as “Glock switches,” which are used to convert firearms into machineguns. Law enforcement also seized four P80 pistols, which are privately manufactured firearms referred to as “Ghost guns,” that had been converted into machineguns with illegal Glock switches. Law enforcement also recovered a conventional Glock firearm that also had a Glock switch installed, an unregistered short-barreled 9mm rifle, 10 unregistered firearm silencers, and $3,000 in cash.
According to court records, prior to the incident in Haywood County, in August 2021, McClure was arrested in Tennessee after law enforcement seized from McClure’s vehicle and rental cabin several firearms, including converted machineguns, an unregistered silencer, narcotics, and over $10,000 in cash. The U.S. Attorney’s Office in the Middle District of Tennessee brought federal charges against McClure in connection with this offense. Those charges were later transferred to the U.S. District Court in the Western District of North Carolina.
On March 3, 2023, McClure pleaded guilty to two counts of possession of machineguns in connection with both federal cases. McClure remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the ATF, the Haywood County Sheriff’s Office, and the Dover, Tennessee, Police Department for conducting investigations which led to today’s sentence.
The U.S. Attorney’s Office in Asheville handled the prosecution. U.S. Attorney King also thanked the U.S. Attorney’s Office for the Middle District of Tennessee for their coordination and assistance.
Utica Man Indicted for Federal Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – Carlos Pena Uceta, age 33, of Utica, New York, was indicted today for possession of a controlled substance with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the United States Drug Enforcement Administration (DEA), New York Division, made the announcement.
Pena Uceta was previously charged by a federal complaint on June 5, 2023. He has been detained without bail since he made his initial appearance on June 5 before United States Magistrate Judge Miroslav Lovric.
The indictment and complaint allege that, on June 4, 2023, Pena Uceta possessed over 9 kilograms of cocaine with the intent to distribute. The indictment also alleges that Pena Uceta possessed a 9mm handgun with no serial number (a “ghost gun”) with ammunition in furtherance of his drug trafficking crime.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Pena Uceta carry a mandatory minimum sentence of 15 years in prison and a maximum sentence of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The United States Drug Enforcement Administration (DEA) is investigating the case with assistance from the New York State Police, the City of Utica Police Department, and the Oneida County Sheriff’s Office. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
U.S. Attorney’s Office for the District of Kansas Recognizes World Elder Abuse Awareness DayRead the Press Release
KANSAS CITY, KAN. – United States Attorney Kate E. Brubacher encourages the citizens of Kansas to recognize World Elder Abuse Awareness Day on June 15, 2023, and to remain vigilant on behalf of our older family, friends, and loved ones who are at increased risk of abuse and fraud.
Older persons are at higher risk of exploitation, emotional and physical abuse, neglect, financial frauds, and scams, which can be perpetrated against them by strangers, trusted friends, and family alike. In addition to exploiting close relationships, abusers can contact older adults by phone, email, mail, social media, and the internet. Staying connected with older adults, encouraging trust and transparency regarding their relationships and contacts, and reducing social isolation are some of the most powerful tools in our community arsenal for combatting abuse, neglect, and financial exploitation.
These intentional and negligent acts affect millions of older adults every year, with wide-reaching implications on victims’ physical and emotional health, their finances, and their dignity and sense of trust. Unfortunately, the unprecedented challenges of the opioid epidemic and the COVID-19 pandemic have only exacerbated vulnerabilities that tend to disproportionally impact older adults.
The U.S. Attorney’s Office for the District of Kansas remains steadfastly committed to supporting and coordinating with federal, state, and local law enforcement partners to combat abuse of our elder citizens. Schemes to defraud these citizens with tactics such as social security and tax imposter scams, tech support scams, lottery scams, and romance scams are priorities the Office continues to investigate and prosecute on an ongoing basis.
Last year, in the District of Kansas, Oyindamola Akinrinola was sentenced on November 15, 2022, to six months of imprisonment and two years of supervised release for conspiracy to commit wire fraud.
According to her plea agreement, Arkinrinola participated in a scheme involving Facebook messages from an individual who purported to be with FedEx. Victims were led to believe they won a $130,000 grant and that FedEx would deliver the cash if the victims paid a “case file fee”. When victims said they did not have money to pay the “fee”, they allowed the purported Facebook account holder to purchase iPhones through their Verizon account and mail them to Arkinrinola. Victims also received an image from the Facebook account claiming to be from the IRS and requesting $15,000 before the grant funds were released. The victims never received any of the grant money they supposedly won from FedEx.
Akinrinola also admitted receiving more than $160,000 in deposits related to scams and remitting the majority of money to Nigeria after keeping a portion of the scammed proceeds for herself.
Also, last year a federal grand jury in Topeka indicted a U.S. Army service member for allegedly participating in a scheme to fraudulently obtain approximately $149,476 from at least 25 individuals.
On March 3, 2023, Innocent Ugwu, a U.S Army service member plead guilty to wire fraud to fraudulently obtain approximately $149,476 from victims. According to the plea agreement, Ugwu engaged in a scheme to defraud and to obtain money from victims across the United States. Specifically, Ugwu engaged in a romance and/or advanced fee scheme by falsely claiming there was money internationally that could not be accessed until the victim paid a small amount of taxes; claiming ailments or hardships to entice the victim to transfer money for life saving medical procedures; and also contacted victims pretending to be an attorney and requesting money as a retainer to pursue the fraudsters to recoup the victim's original loss. He then transferred the money to and through multiple bank accounts opened and controlled by him.
Ugwu is scheduled to be sentenced June 20, 2023.
The Department of Justice maintains a robust set of resources to educate yourself and your loved ones about these issues at https://www.justice.gov/elderjustice. If you or someone you know is a victim of elder fraud, please call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311). The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. eastern time. Services are available for speakers of English, Spanish, and other languages. You may also report suspected elder fraud by calling the Denver FBI field office at (303) 629-7171.
World Elder Abuse Awareness Day (WEAAD) was launched by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations in order to raise the public consciousness to these too often underrecognized and underreported violations of human rights.
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U.S. Attorney's Office Observes World Elder Abuse Awareness DayRead the Press Release
CHARLOTTE, N.C. – In observance of World Elder Abuse Awareness Day (WEAAD), U.S. Attorney Dena J. King joined the Justice Department and communities around the world today to condemn elder abuse, neglect, and financial exploitation, and vowed to continue to investigate and prosecute bad actors who seek to exploit and harm older adults.
First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, WEAAD aims to promote a better understanding of the abuse and neglect experienced by millions of older adults – crimes that are too often overlooked or unreported. Through this observance, WEAAD brings focus to the cultural, social, economic, and demographic circumstances affecting elder abuse and neglect.
Dena J. King, United States Attorney“Today, we reaffirm our commitment to end elder abuse and to continue to work tirelessly to advocate for older adults and advance the cause of elder justice. On this day and every day, it is important to shine a light on elder abuse, neglect, and exploitation and bring to justice individuals who victimize older adults and rob them of the safety, dignity, and respect they deserve.”
The U.S. Attorney’s Office for the Western District of North Carolina seeks to actively prevent elder abuse and financial exploitation from occurring in the first place. As part of its efforts to prevent elder financial fraud, the Office continues to engage in outreach with the community to educate older adults, their families, and caretakers about scams targeting the elderly, and provide educational material and resources on how to recognize and report elder abuse and financial exploitation and prevent victimization from happening.
Today, the U.S. Attorney’s Office organized a “Walk for Awareness” at Freedom Park in Charlotte, to promote WEAAD and raise public awareness of the fight against elder abuse, neglect, and financial exploitation. U.S. Attorney’s Office personnel, law enforcement partners, AARP volunteers, and members of the community participated in the walk in support of efforts to advance elder justice.
“As prosecutors our job is to bring to justice those who inflict harm on our older population. Equally important is our work in the community and our efforts to actively organize and promote public awareness events centered on the prevention of elder abuse and exploitation, so we can stop older adults from being victimized in the first place,” said U.S. Attorney King.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. To learn more about the Office’s elder justice efforts please visit our website.
Two Jacksonville Compounding Pharmacies and Their Owner Agree to Pay at Least $7.4 Million to Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations. The settlement amount is based on the defendants’ ability to pay.
“When pharmacies inflate their revenue with medically unsupported prescription ingredients, they compromise the quality of patient care and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of federal healthcare programs for personal profit.”
“A primary mission of the U.S. Attorney’s Office is protecting the Medicare and TRICARE programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This case exemplifies our commitment to pursue pharmacies and pharmacists who abuse federal healthcare programs at the expense of the taxpayers.”
Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia and Tourette’s disorder. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so. The defendants allegedly included the drug in the pain creams to increase their profits on prescriptions paid for by Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families. Both Medicare Part D and TRICARE reimburse pharmacies for the individual ingredients included in compounded drugs, thus defendants increased their reimbursement by adding aripiprazole to the combination of drugs used in their pain creams.
The government also alleged that the defendants improperly waived patient copayments to induce patients to accept the pain cream prescriptions. Although copayments may be waived in certain unique circumstances, such as on the basis of an individualized assessment of a patient’s financial hardship, the defendants allegedly routinely waived copayments without regard to patient need.
In connection with the settlement, Gregory Balotin has agreed to enter into a three-year integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.
“Pharmacies participating in Medicare are obligated to obey laws designed to protect both the integrity of this program and the quality of care provided to patients,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “With our law enforcement partners, our agency is committed to investigating alleged health care fraud to protect both federal health care programs as well as the individuals served by those programs.”
“We are grateful to the U.S. Department of Justice, the U.S. Attorney’s Office, and other state and federal officials for their unwavering commitment to protect taxpayer dollars and safeguard the TRICARE pharmacy benefit,” said Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division. “Their efforts ensure our service members, veterans, and their families continue to receive the highest-quality pharmacy benefit commensurate with the service and sacrifice they make for our nation.”
“Health care providers and suppliers that serve our nation’s active duty service members, military retirees, and their families are expected to meet the highest standards of ethical and professional behavior,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and its law enforcement partners will continue to investigate unprincipled health care providers that undermine the integrity of the DoD’s TRICARE program.”
The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG, DCIS, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.
This matter was handled by Assistant U.S. Attorney Collette Cunningham for the Middle District of Florida, Trial Attorneys Nicholas Perros and Jessica Sievert of the Justice Department’s Civil Division, former Civil Division Trial Attorney Holly Snow (now an Assistant U.S. Attorney for the Western District of North Carolina), and former Civil Division Trial Attorney Andrew Jaco (now with the Justice Department’s Criminal Division).
The claims asserted against the defendants are allegations only and there has been no determination of liability.
Two Convicted of Romance and Pandemic Fraud SchemesRead the Press Release
BOSTON – Two Nigerian men were found guilty yesterday by a federal jury in Boston for their roles in expansive online fraud schemes targeting individuals in the United States, including pandemic unemployment assistance fraud, romance scams and other online scams.
Osakpamwan Henry Omoruyi, 37, and Osaretin Godspower Omoruyi, 36, both previously of Canton, were each convicted following an eight-day jury trial of one count of bank fraud, one count of bank fraud conspiracy, and one count of money laundering conspiracy. U.S. District Court Judge Patti B. Saris ordered that the defendants be taken into federal custody pending sentencing, which is scheduled for Sept. 22, 2023. The defendants were charged by criminal complaint in March 2021.
The defendants opened multiple bank accounts in the names of fake people using fraudulent foreign passports. The defendants then used those accounts to receive the proceeds from various frauds perpetrated by their co-conspirators, including pandemic unemployment assistance fraud, romance scams, and other online scams. The majority of the fraud proceeds came from romance scams, which occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and steal from the victim. In total, between 2019 and 2021, the defendants received more than $1.7 million in fraud proceeds and transferred most of the money overseas.The charges of bank fraud and conspiracy to commit bank provide for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. 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; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Supervisory Special Agent Gregory Batman, Chief of the U.S. Department of State’s Diplomatic Security Service, Criminal Investigations Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Benjamin A. Saltzman of Levy’s Securities, Financial & Cyber Fraud Unit 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.
Two Chester County Men Indicted for Possession of a Machine GunRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a single count indictment against Zyquon DeAngelo Hudson, 23, and Ja’Vaughn Lonzell Brown, 22, both of Chester, South Carolina, for possession of a machine gun.
The indictment alleges that on June 24, 2022, Hudson and Brown were in possession of a Glock 9mm pistol that was modified with a “Glock Switch” or “Glock Auto Sear” which allowed the pistol to be fired as a machinegun.
Brown and Hudson face a maximum penalty of 10 years imprisonment.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Chester County Sheriff's Office. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Three Lexington County Defendants Sentenced in Federal Court for Labor Trafficking and Fraud in Foreign Labor ContractingRead the Press Release
COLUMBIA, SOUTH CAROLINA — Enrique Balcazar, 37, and Elizabeth Balcazar, 21,– both of Batesburg – and Balcazar Nature Harvesting, LLC (BNH) have been sentenced in federal court for labor trafficking, confiscating passports in connection with labor trafficking, and fraud in foreign labor contracting.
Evidence presented in Court indicated that Enrique Balcazar and his daughter Elizabeth Balcazar operated BNH, which provided seasonal agricultural labor to farms in the Lexington County area. In early 2021, the defendants incorporated the business and obtained permission from the U.S. Department of Labor (DOL) to recruit foreign national agricultural workers by promising it would provide particular work conditions for its workers.
Elizabeth then travelled to Mexico and recruited 55 Mexican nationals to work for BNH in Lexington County in exchange for those same promises. Each worker obtained an H-2A temporary agricultural worker visa that authorized them to lawfully work in the United States. Elizabeth travelled by bus with the workers back to Lexington County, where she and her father brought the workers to a camp facility in Batesburg where they would live and work for BNH. Enrique and Elizabeth confiscated the workers’ passports and visas the same day they arrived.
From April 2021 to December 2021, BNH subjected the workers to forced and exploitative labor. Rather than the 40 hours of work per week promised, victims were made to work nearly twice that, and some weeks as many as 90 hours. Because BNH only paid victim workers for 40 hours, the workers received no pay at all for a portion of their work. BNH further failed to pay promised wages for the hours they did pay, and they engaged in illegal cost-shifting by requiring workers’ pay for transportation, visas, food, and work equipment.
Workers were also made to work outside of the location BNH promised, and some mornings workers were woken at 3:00 A.M. or 4:00 A.M. to travel to a work site. Workers were returned at 10:00 P.M. or 11:00 P.M., which is when they were provided dinner. The defendants promised to provide three meals a day, but instead they provided two meals a day, for which BNH improperly deducted from worker paychecks.
Enrique used force and coercion to keep workers with BNH, including by threatening deportation, confiscating passports and visas, brandishing and discharging firearms, failing to provide medical care, placing locks on the outside of the facility where workers slept, and by posting armed guards at the camp facility. Workers eventually began to escape and speak with victim service providers, the South Carolina Law Enforcement Division (SLED), and the U.S. Department of Homeland Security (HSI).
In December 2021, a federal search warrant was executed at BNH, where agents seized 23 firearms, ammunition, body armor, at least 9 victim passports from BNH. Following that search, service providers provided victim assistance and DOL investigated workplace conditions.
Federal charges were brought, and Enrique Balcazar pled guilty to Labor Trafficking in violation 18 U.S.C. § 1589 and Passport Confiscation in Furtherance of Labor Trafficking in violation of 18 U.S.C. § 1592. Elizabeth Balcazar and BNH pled guilty to Fraud in Foreign Labor Contracting in violation of 18 U.S.C. § 1351.
United States District Judge Sherri A. Lydon sentenced the defendants, and at sentencing the Court heard from nineteen victims through written victim impact statements.
Enrique Balcazar was sentenced to 40 months in federal prison, $11,332.90 in restitution, 3 years of Court-ordered supervision to follow his term of imprisonment, he will be placed in immigration removal proceedings following imprisonment, and 23 firearms, ammunition, body armor, and more than $32,000 in funds were ordered to be forfeited. There is no parole in the federal system.
Elizabeth Balcazar was sentenced to time served (two months), she was ordered to pay a total of $508,125.89 in restitution to 55 victim workers largely related to unpaid wages, plus 3 years of Court-ordered supervision, 1 year of a curfew, and 100 hours of community service at an organization that serves the immigrant community.
BNH was ordered to pay $508,125.89 in restitution to 55 victim workers, more than $32,000 in business funds were forfeited, and the business was sentenced to 3 years of probation.
“Our office will not tolerate forced labor or the exploitation of foreign national workers in South Carolina,” said U.S. Attorney Adair F. Boroughs. “Human trafficking violates people’s most basic human rights, and the Department will continue to bring every resource we have to combat it. We thank our law enforcement and service provider partners for their critical work in this case.”
“Identifying and stopping those who are involved in labor exploitation not only protects workers from unjust and inhumane treatment, but also prevents unfair competitive advantages that harm the labor market,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte, which covers North and South Carolina. “Hopefully, the results of this case will encourage others being exploited to come forward and seek help.”
“Victims of labor trafficking deserve justice. Our communities are safe when we show that labor trafficking will not be tolerated in South Carolina,” said SLED Chief Mark Keel. “SLED will continue to work together with local, state and federal law enforcement, as well as prosecutors and other community partners, so the people and businesses that look to harm and exploit these individuals will face consequences.”
“Human trafficking is among the most heinous crimes against workers, especially when employers prey on our society’s most vulnerable members,” said U.S. Department of Labor Wage and Hour Division District Director Jamie Benefiel. “These victim workers traveled far from home to provide for their families and found themselves stripped of their dignity, freedom, and basic human rights. The U.S. Department of Labor and its Wage and Hour Division are engaged in a battle to identify human trafficking, to end the misery it brings, and to hold those who callously engage in it accountable.”
The case was investigated by HSI, SLED, and DOL. Assistant U.S. Attorneys Elliott B. Daniels and Carrie Fisher Sherard prosecuted the case.
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Ten Indicted and Six Arrested in Joint Task Force Alpha Investigation of the Lopez Crime Family Human Smuggling Organization Operating in Guatemala, Mexico, and the United StatesRead the Press Release
ALBUQUERQUE, N.M. – On Thursday, 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 the unsealing of an indictment returned by a federal grand jury on May 24, 2023, and the arrest of, six alleged human smugglers in a coordinated, multistate enforcement operation that included arrests in Arizona and California.
According to the indictment and other court records, Ronaldo Galindo Lopez-Escobar, aka “Tio Roni,” 45, of Guatemala City, Guatemala, and his sister, Rosa Adriana Lopez-Escobar, aka “Tia Rosa,” 38, of Phoenix, and citizens of Guatemala, allegedly led the Lopez Crime Family, a transnational criminal organization principally involved in human smuggling with operations in Guatemala, Mexico, and the United States. The organization smuggled undocumented noncitizens into the United States utilizing a series of coordinated transports, stash houses, and directed electronic money transfers to avoid detection. Rosa Adriana Lopez-Escobar was arrested in Phoenix on June 14, 2023, and is detained pending further proceedings, which have not been scheduled.
Ronaldo Galindo Lopez-Escobar’s family associates, who are alleged to have been involved in moving money through funnel bank accounts and through electronic money transfers on behalf of the organization were also arrested. Deysi Marisela Lopez-Ambrosio, 25, was arrested in Long Beach, California. Both are citizens of Guatemala.
Arrests in Arizona on June 14 also were made of Rosa Adriana Lopez-Escobar’s family and their close associates, who allegedly coordinated the transportation and harboring of the smuggled undocumented noncitizens: Jose Denilson Lopez-Chilel, aka “Andres,” 24, Franklin Leonardo Chilel-Ramirez, aka “Arisona,” 37, and Junior Vanegas-Portillo, 20, citizens of Guatemala.
If convicted, they each face up to ten years in prison and some will be subject to deportation.
Suny Diaz-Salguero, an associate of the Lopez family associate, was also arrested in a related in case in Los Angeles, California.
“Today’s human smuggling organizations prey on the hope of Latin American migrants, targeting those who are most vulnerable for exploitation,” said U.S. Attorney Uballez. “To combat human smuggling we will dismantle networks, arrest leaders, and seize bank accounts. And that is our promise, and our solemn duty to each other and to our neighbors south of the border seeking a better life—this team will tirelessly target those who profit from the misery of others.
“We are grateful to our law enforcement partners for their invaluable contribution to the success of this tri-state enforcement action - a significant joint effort and victory against unscrupulous human smugglers,” said Special Agent in Charge Burrola. “Criminal organizations, such as the Lopez Crime Family, not only jeopardize the safety and lives of the people on whom they prey for profit and greed, they also threaten the security of the United States. HSI remains steadfast in vigorously investigating and dismantling transnational criminal networks that pose a threat to our nation.”
“El Paso Sector Border Patrol Agents continue to successfully disrupt smuggling schemes and the illegal operations of Transnational Criminal Organizations through our law enforcement partnerships,” said El Paso Sector Chief Patrol Agent Anthony Scott Good. “I am grateful for these partnerships at the state, local and federal level and are vital to our National Security Mission. This alliance is successfully disrupting dangerous criminal organizations, their leadership, and their human smuggling schemes.”
JTFA was created by Attorney General Merrick Garland in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States, and coordinated significant smuggling indictments and extradition efforts in U.S. Attorney’s Offices across the country. To date, JTFA’s work with its partners has resulted in criminal charges and over a hundred domestic and international arrests, including against leaders, organizers and significant facilitators of human smuggling activities; several dozen convictions; significant jail sentences imposed; and substantial asset forfeiture. JTFA is comprised of detailees from southwest border U.S. Attorney’s Offices, including the New Mexico, the Southern District of Texas, the Western District of Texas, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from HSI, FBI, Drug Enforcement Administration (DEA), and other partners.
HSI New Mexico led U.S. investigative efforts, with enforcement assistance from HSI in Arizona and the Central District of California.HSI received investigative assistance from U.S. Border Patrol Deming, Lordsburg, Blythe, El Centro, Yuma, and Tucson, as well as U.S. Customs and Border Protection’s National Targeting Center/Operation Sentinel, and the Montgomery County Sheriff’s Department. HRSP and MLARS also provided support in this matter.
The case is being handled by Assistant U.S. Attorney Matthew Ramirez for the District of New Mexico. Assistant U.S. Attorney Shawn Nelson for the Central District of California and Stuart Zander for the District of Arizona provided critical support fugitive location and search warrants.
The charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Tax preparers sentenced in tax fraud schemeRead the Press Release
HOUSTON – Three women have received their sentences following their convictions of conspiracy to aid and assist in the preparation of false tax returns, announced U.S. Attorney Alamdar S. Hamdani.
Tamara Turner aka Tamara Owens, Brittany Richardson and Terra White pleaded guilty March 22, Feb. 1 and Feb. 25, respectively. All admitted to their roles in the tax fraud scheme.
Today, U.S. District Judge Sim Lake imposed a 41-month term of imprisonment for Turner to be immediately followed by three years of supervised release. Owens and White must serve two years on probation. All three were also ordered to pay $308,537 in restitution for the losses they colectiovely caused to the tax-paying public.
At the hearing, the court heard additional evidence that scheme ran for roughly four years. In handing down the sentences, Judge Lake commented on the magnitude of the charges, the difficulty in detecting such schemes and importance of protecting the public from these schemes.
“Fraudsters like Turner learn that the real cost of stealing from taxpayers is paid by losing freedom. Return preparers that promise higher returns by committing fraud also shirk their responsibilities by placing the burden on all the other taxpayers,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s (CI) Houston Field Office. “Our special agents and investigators are experts at following the money back to the criminals that took it.”
From 2014 to 2018, Turner admitted she owned and operated AJW Taxes and More Tax Preparation Service, located on Westpark Drive in Houston. White and Richardson were employed as tax preparers at various times during the tax season. Turner admitted to submitting fraudulent Schedule C forms and W-2 tax records to the IRS. She inflated her clients personal and business losses to generate larger tax refunds.
Additionally, Turner admitted she routinely submitted altered or fake W-2 forms certifying employment for her clients and qualifying them for Earned Income Tax Credit. She also charged tax preparer fees well in excess of other tax offices that provide the same services.
White and Richardson claimed Turner trained them to submit fraudulent forms to create larger tax refunds for clients. They also admitted to utilizing a unique IRS filing number assigned to other individuals.
Turner was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.
Tahlequah Resident Sentenced for Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jordan Allen Houston, age 25, of Tahlequah, Oklahoma, was sentenced to 39 months in prison for Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
The charges arose from investigations by the Tahlequah Police Department and the Federal Bureau of Investigation.
On July 26, 2022, Houston pleaded guilty to one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
On July 1, 2022, while at a friend’s home in Tahlequah, Houston got into an argument. Houston struck the first victim in the side of the head with a pistol, causing an accidental discharge and sending a bullet into the ceiling. When the residents ejected Houston from the house, he fired multiple rounds through the front window and door. Two of those rounds struck a second victim in the chest but were not fatal. Houston committed these crimes in Cherokee County, within the boundaries of the Cherokee Nation Reservation and the Eastern District of Oklahoma.
“Whether violence comes from a stranger or a friend, the harm to individuals and communities is incalculable,” said United States Attorney Christopher J. Wilson. “Together with law enforcement and first responders, we are committed to promoting justice and protecting the peace of our communities against dangerous offenders.”
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 based on fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Houston 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 Zachary W. Parsons represented the United States.
St. Francis to Pay the United States $36.5 Million to Settle Allegations Under the False Claims ActRead the Press Release
Columbia, South Carolina --- St. Francis Physician Services, Inc., St. Francis Hospital, and Bon Secours St. Francis Health System, Inc., (collectively, “St. Francis”), owner and operator of the St. Francis healthcare system, a Section 501(c)(3) charitable organization in Greenville, South Carolina, has agreed to pay $36.5 million to resolve allegations that it violated the False Claims Act, the Federal Stark Law, and the Federal Anti-Kickback Statute (“AKS”) by making payments to orthopedic surgeons that were tied to the volume or value of referrals.
The settlement resolves allegations that St. Francis caused the submission of false claims to Medicare and to TRICARE as a result of an unlawful contractual payment structure between St. Francis and Piedmont Orthopedic Associates (“POA”), whereby POA’s compensation was tied to the volume or value of the practice’s referrals to St. Francis. Specifically, it is alleged that St. Francis’s bonus payments to POA physicians violated both the Stark Law and the AKS.
“Medical providers should base health care decisions on what is best for the patient, and not on financial incentives and related schemes,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “We are grateful the relator brought these allegations forward. Relators are critical to identifying fraud and protecting the integrity of our Medicare system.”
The settlement resolves a lawsuit originally brought by a relator under the qui tam, or whistleblower, provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, the relator will receive approximately $10.2 million of the settlement amount. The whistleblower in this case was represented by Bill Nettles and Fran Trapp of the Law Offices of Bill Nettles, and Bryan Vroon of the Law Offices of Bryan A. Vroon, LLC.
The lawsuit resolved by this settlement is captioned United States of America, et al., ex rel. Lee v. Bon Secours St. Francis Health System, Inc., Case No. 6:18-cv-01932-DCC (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Springfield Man Sentenced for Heroin, Fentanyl ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin and fentanyl.
Roderick L. Stewart, also known as “Memphis,” 38, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, June 14, to 12 years and 11 months in federal prison without parole.
On Nov. 8, 2022, Stewart pleaded guilty to one count of conspiracy to distribute heroin and/or fentanyl. Stewart admitted that he participated in the conspiracy that distributed more than a kilogram of heroin and 400 grams or more of fentanyl from March 27, 2018, to Nov. 14, 2019, although he was incarcerated on unrelated cases for several months during that time.
Co-defendant Derrick E. Dailey, 37, of Springfield, supplied Stewart and others with heroin and fentanyl for distribution. Court documents refer to a $10,000 drug debt that Stewart owed to Daily, which would represent approximately 100 grams of heroin or fentanyl.
Stewart admitted that he sold $100 worth of fentanyl to a law enforcement confidential source on Nov. 5, 2019. According to court documents, there is evidence Dailey sold much larger quantities of fentanyl, sometimes by falsely claiming it was heroin, to others.
When law enforcement officers attempted to arrest Stewart during a traffic stop, he fled from law enforcement. During the pursuit, which reached speeds over 90 miles per hour, Stewart drove on the wrong side of the road and turned off his headlights. He eventually crashed into two parked cars. He ran from officers but was apprehended.
Stewart has prior felony convictions for possession of a controlled substance and forgery. Stewart also was arrested in Cuyahoga County, Ohio, in October 2013 for murder with a firearm, felonious assault with a firearm, and kidnapping with a firearm. Stewart and an accomplice shot a victim 14 times in an alleyway in Cleveland, Ohio, killing him. His accomplice bragged to friends that he and Stewart lured the victim to an alleyway, where Stewart shot the victim in the back and the accomplice shot him in the head. Stewart pleaded guilty to an amended charge of involuntary manslaughter during the middle of a court trial and was sentenced to 30 months’ imprisonment. He was on parole supervision for that offense when he committed the offense in this federal case.
Dailey was sentenced on Dec. 2, 2022, to 34 years in federal prison without parole. Co-defendant Antwanae L. Morgan,32, of Springfield, was sentenced on May 10, 2023, to 20 years in federal prison without parole. Three additional defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Missouri State Highway Patrol.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Springfield Man Sentenced for Heroin, Fentanyl ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute more than four kilograms of heroin and/or fentanyl.
Marquise D. Martin, 33, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, June 14, to 12 years in federal prison without parole.
On Nov. 3, 2022, Martin pleaded guilty to one count of conspiracy to distribute heroin and/or fentanyl. Martin admitted that he participated in the conspiracy that distributed more than four kilograms of fentanyl from Sept. 23, 2018, to Nov. 14, 2019.
On Aug. 29, 2019, Martin sold .693 grams of fentanyl to a law enforcement confidential informant during a controlled transaction. Although Martin routinely claimed to be selling heroin, the drug in this case actually was fentanyl. Following a traffic stop in Springfield on May 11, 2019, Martin fled from officers on foot and discarded 7.1 grams of fentanyl in a convenience store bathroom.
According to court documents, Martin received approximately one ounce (28.5 grams) of fentanyl from co-defendant Jerry D. Bedell, 32, of Springfield, every other day for two to three months. Bedell is responsible for distributing at least 10 kilograms of fentanyl.
Martin has an apparent gang affiliation, according to court documents. Martin grew up in a neighborhood where the “Rollin’ 60s Crips” were present but denied association with them. However, a sentencing memorandum filed by the government refers to a review of his public Facebook page that revealed numerous posts indicative of Crips gang membership or affiliation.
Martin is among 10 defendants who have pleaded guilty in this case and the first defendant to be sentenced. Bedell pleaded guilty on Dec. 14, 2022, to his role in the drug-trafficking conspiracy, as well as to illegally possessing a firearm, and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Bourbon, Mo., Police Department, and the Phelps County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Southfield, MI Resident Pleads Guilty to Possessing with the Intent to Distribute Fentanyl, Heroin and CocaineRead the Press Release
PITTSBURGH, PA – Deyon Robinson pled guilty to possessing with intent to distribute 100 grams or more of a mixture containing fentanyl and heroin and 28 grams or more of cocaine base, United States Attorney Eric G. Olshan announced today.
Robinson, age 22 of Southfield, Michigan, pled guilty before United States District Judge William S. Stickman. Stickman ordered sentencing to occur on October 4, 2023, at 1:30 p.m.
In support of the guilty plea, the Court was informed that, on April 26, 2021, Robinson got caught possessing with intent to distribute 150 grams of a mixture containing fentanyl and heroin and 70 grams of crack. He got caught as a result of a Pennsylvania State Police investigation and traffic stop in New Castle, Pennsylvania. Robinson also possessed a loaded Glock pistol and over $2,400 in cash at that time.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pennsylvania State Police and the Drug Enforcement Administration conducted the investigation leading to the conviction in this case.
Sioux Falls Man Charged with Child Pornography ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for two counts of Possession of Child Pornography and Transportation of Child Pornography.
Jeffrey Michael Dicus, age 38, was indicted in June of 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 9, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between April 12, 2013, and February 8, 2023, and also between February 16, 2018, and February 8, 2023, Dicus knowingly possessed and attempted to possess material which contained images of child pornography that had been shipped and transported using an electronic device, and had been shipped and transported in and affecting interstate and foreign commerce.
The Indictment also alleges that on or about between January 5, 2017, and February 8, 2023, Dicus knowingly transported child pornography into his Dropbox account.
The charges are merely accusations and Dicus is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigation and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.
Dicus was remanded back to the custody of the State pending trial. A trial date has not been set.
Second Man Sentenced in Series of Armed Robberies and Conspiracy to Commit Additional Robberies of Mid-South Retail StoresRead the Press Release
Memphis, TN – On Tuesday, June 13, 2023, a federal judge sentenced the second of two men involved in a series of robberies of mid-South Walmart and Kroger stores beginning Christmas Eve 2021. Randy Readus, 36, of Memphis was sentenced to 180 months in federal prison for his role in multiple business robberies and conspiracy to commit robberies in the Memphis and surrounding areas, said Kevin G. Ritz, United States Attorney for the Western District of Tennessee. U.S. District Court Judge John T. Fowlkes, Jr. also ordered Readus to serve two years of supervised release and pay restitution of more than $34,000 upon completion of his prison term.
There is no parole in the federal system.
Readus’s co-defendant, Memphis resident Julius Black, 32, was sentenced on May 18, 2023, to 240 months in prison after previously pleading guilty to these and other robbery charges. Judge Fowlkes also ordered that Black serve three years of supervised release and pay restitution.
This case was investigated by the FBI’s Safe Streets Task Force.
According to United States Attorney Ritz and the information presented in court, between December 2020 and January 2021, Readus and Black committed multiple business robberies in Arkansas, Mississippi, and Tennessee. On the morning of December 24, 2020, Readus drove Black from Memphis to Marion, Arkansas. Black entered Walmart, robbed the Money Center at gunpoint, then fled with a large amount of cash in a vehicle driven by Readus, who was waiting outside.
Readus and Black went on to conduct similar robberies of the following businesses:
- December 26, 2020: Walmart, 512 Industrial Park Drive, Trumann, Arkansas.
- December 31, 2020: Kroger, at 6660 Poplar Avenue. Readus drove Black to the Kroger, and Black jumped the customer service desk, forced his way into the finance room, and forcibly stole money.
- January 6, 2021: Walmart, 950 Mackie Drive, Holly Springs, Mississippi.
- January 8, 2021: Kroger, 9025 Highway 64, Memphis, Tennessee.
- January 8, 2021: Kroger, Highway 70, Arlington, Tennessee. The pair attempted to rob the store but got away without any money.
- January 12, 2021: Walmart, New Albany, Mississippi. The FBI Safe Streets Task Force apprehended Readus and Black after the robbery, disabling the vehicle before the two could flee the scene.
After a six-day jury trial in February 2023, Readus was convicted of conspiracy to commit armed robbery, two counts of robbery, one count of attempted robbery and one count of use of a firearm during and in relation to a crime of violence.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Greg Wagner, who prosecuted this case, as well as law enforcement partners who investigated the case.
Seattle Man Admits Buying 630,000 Counterfeit Pills on the Dark WebRead the Press Release
ST. LOUIS – A man from Seattle, Washington on Thursday admitted buying 630,000 counterfeit Xanax and other pills on the dark web.
Maximillian Gregory Verbowski, 28, pleaded guilty in front of U.S. District Court Judge Stephen R. Clark to one count each of conspiracy to sell counterfeit drugs, selling counterfeit drugs and using a fictitious name on mail to commit a crime.
Verbowski admitted using cryptocurrency and cash from October 2019 to August 30, 2021 to buy bulk quantities of counterfeit generic alprazolam, an anti-anxiety drug, and other prescription pills and resell them. Verbowski’s source bought drug ingredients from China and used a pill press and stamps to mimic the pill markings used by manufacturers licensed and approved by the U.S. Food and Drug Administration. The supplier then shipped the pills to post office boxes Verbowski opened using aliases.
The transactions were conducted using the dark web.
The conspiracy charge is punishable by up to five years in prison, the counterfeit drugs charge is punishable by up to 10 years in prison and the mail charge carries a maximum 20-year term. All are also subject to a fine of up to $250,000, or both prison and a fine.
The case was investigated by the FBI, the Drug Enforcement Administration, the U.S. Postal Inspection Service and Homeland Security Investigations. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Salt River Woman Sentenced to 15 Years for Fentanyl Overdose Death of Her BabyRead the Press Release
PHOENIX, Ariz.– Sarah Caitlin Burnette, 23, of the Salt River-Pima Maricopa Indian Community, was sentenced on June 12, 2023, by United States District Judge Steven P. Logan to 180 months in prison. Burnette previously pleaded guilty to Voluntary Manslaughter.
On February 27, 2021, Burnette’s 18-month-old baby boy died of acute fentanyl toxicity after ingesting the drug. On October 19, 2021, Burnette was charged with murder and child abuse for the fentanyl overdose death of her son, and exposing another child to the same risk of death by fentanyl overdose.
The Salt River Police Department and FBI jointly conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange and Special Assistant U.S. Attorney Alane Breland, District of Arizona, Phoenix, handled the prosecution. SAUSA Breland is also the Chief Prosecutor for the Salt River Pima-Maricopa Indian Community.
CASE NUMBER: CR-21-00867-PHX-SPL
RELEASE NUMBER: 2023-093_Burnette# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Russian National Charged with Conspiring to Commit Lockbit Ransomware Attacks Against U.S. and Foreign BusinessesRead the Press Release
NEWARK, N.J. – The Justice Department today announced charges against a Russian national for his involvement in deploying numerous LockBit ransomware and other cyberattacks against victim computer systems in the United States, Asia, Europe, and Africa.
Ruslan Magomedovich Astamirov, 20, (АСТАМИРОВ, Руслан Магомедовичь), of Chechen Republic, Russia, is charged by complaint unsealed today in Newark federal court with conspiring to commit wire fraud and conspiring to intentionally damage protected computers and to transmit ransom demands. Astamirov was arrested on the complaint in Arizona and is scheduled to make his initial appearance in the District of Arizona.
“Astamirov is the third defendant charged by this office in the LockBit global ransomware campaign, and the second defendant to be apprehended,” U.S. Attorney Sellinger said. “The LockBit conspirators and any other ransomware perpetrators cannot hide behind imagined online anonymity. We will continue to work tirelessly with all our law enforcement partners to identify ransomware perpetrators and bring them to justice.”
“This Lockbit-related arrest, the second in six months, underscores the Justice Department’s unwavering commitment to hold ransomware actors accountable,” Deputy Attorney General Lisa O. Monaco said. “In securing the arrest of a second Russian national affiliated with the LockBit ransomware, the department has once again demonstrated the long arm of the law. We will continue to use every tool at our disposal to disrupt cybercrime, and while cybercriminals may continue to run, they ultimately cannot hide.”
“These cyber criminals hide in a virtual world but cause very real harm when they seize control of computer systems, putting companies and customers in an unimaginable bind,” FBI Newark Special Agent in Charge James E. Dennehy said. “Either pay the ransoms or lose control of your entire information technology infrastructure. It is too high a price for anyone to be forced to pay. Astamirov's arrest, along with the others charged in this case, is a simple but devastating illustration of how we are following through on our promise - we are bringing these hackers to justice."
According to documents filed in this case:
The LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving at least as much as tens of millions of dollars in actual ransom payments made in the form of bitcoin.
In furtherance of his LockBit-related activities, Astamirov owned, controlled, and used a variety of email addresses, Internet Protocol (IP) addresses, and other online provider accounts that allowed him and his co-conspirators to deploy LockBit ransomware and to communicate with their victims. Additionally, in at least one circumstance, law enforcement was able to trace a portion of a victim’s ransom payment to a virtual currency address in Astamirov’s control.
This announcement follows LockBit-related charges in two other cases from the District of New Jersey. In November 2022, the department announced criminal charges against Mikhail Vasiliev, and Canadian national, who is currently in custody in Canada awaiting extradition to the United States. In May 2023, the department announced the indictment of Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, for his alleged participation in separate conspiracies to deploy LockBit, Babuk, and Hive ransomware variants against victims in the United States and abroad.
The charge of conspiring to intentionally damage protected computers and to transmit ransom demands is punishable by a maximum of five years in prison. The charge of conspiring to commit wire fraud is punishable by a maximum of 20 years in prison. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case. The FBI Phoenix Division, the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and the international partners from Europol’s European Cybercrime Centre, Eurojust, National Police Agency of Japan, France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N), National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt of Germany, and Swedish Police Authority of Sweden also provided valuable assistance.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, Vinay S. Limbachia, and David E. Malagold of the Cybercrime Unit in Newark and DOJ Trial Attorneys Jessica C. Peck and Jorge Gonzalez of the Computer Crime and Intellectual Property Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
astamirov.complaint.pdfRussian National Arrested and Charged with Conspiring to Commit LockBit Ransomware Attacks Against U.S. and Foreign BusinessesRead the Press Release
The Justice Department today announced charges against a Russian national for his involvement in deploying numerous LockBit ransomware and other cyberattacks against victim computer systems in the United States, Asia, Europe, and Africa.
Ruslan Magomedovich Astamirov (АСТАМИРОВ, Руслан Магомедовичь), 20, of Chechen Republic, will make his initial appearance later today.
“This LockBit-related arrest, the second in six months, underscores the Justice Department’s unwavering commitment to hold ransomware actors accountable,” said Deputy Attorney General Lisa O. Monaco. “In securing the arrest of a second Russian national affiliated with the LockBit ransomware, the Department has once again demonstrated the long arm of the law. We will continue to use every tool at our disposal to disrupt cybercrime, and while cybercriminals may continue to run, they ultimately cannot hide.”
According to a criminal complaint obtained in the District of New Jersey, from at least as early as August 2020 to March 2023, Astamirov allegedly participated in a conspiracy with other members of the LockBit ransomware campaign to commit wire fraud and to intentionally damage protected computers and make ransom demands through the use and deployment of ransomware. Specifically, Astamirov directly executed at least five attacks against victim computer systems in the United States and abroad.
“Astamirov is the third defendant charged by this office in the LockBit global ransomware campaign, and the second defendant to be apprehended,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The LockBit conspirators and any other ransomware perpetrators cannot hide behind imagined online anonymity. We will continue to work tirelessly with all our law enforcement partners to identify ransomware perpetrators and bring them to justice.”
According to the criminal complaint, the LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving at least as much as tens of millions of dollars in actual ransom payments made in the form of bitcoin.
In furtherance of his LockBit-related activities, Astamirov owned, controlled, and used a variety of email addresses, Internet Protocol (IP) addresses, and other online provider accounts that allowed him and his co-conspirators to deploy LockBit ransomware and to communicate with their victims. Additionally, in at least one circumstance, law enforcement was able to trace a portion of a victim’s ransom payment to a virtual currency address in Astamirov’s control.
“The FBI is committed to pursuing ransomware actors like Astamirov, who have exploited vulnerable cyber ecosystems and harmed victims,” said FBI Deputy Director Paul Abbate. “We, in collaboration with our federal and international partners, are fully committed to the permanent dismantlement of these types of ransomware campaigns that intentionally target people and our private sector partners. We will continue to leverage every resource to prevent this type of malicious, criminal activity.”
Astamirov is charged with conspiring to commit wire fraud and conspiring to intentionally damage protected computers and to transmit ransom demands. If convicted, he faces a maximum penalty of 20 years in prison on the first charge and a maximum penalty of five years in prison on the second charge. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
This announcement follows LockBit-related charges in two other cases from the District of New Jersey. In November 2022, the department announced criminal charges against Mikhail Vasiliev, a dual Russian and Canadian national, who is currently in custody in Canada awaiting extradition to the United States. In May 2023, the department announced the indictment of Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, for his alleged participation in separate conspiracies to deploy LockBit, Babuk, and Hive ransomware variants against victims in the United States and abroad.
The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case. The Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and the international partners from Europol’s European Cybercrime Centre, Eurojust, National Police Agency of Japan, France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N), National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt of Germany, and Swedish Police Authority of Sweden also provided valuable assistance.
Trial Attorney Jessica C. Peck and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Andrew M. Trombly, Vinay Limbachia, and David E. Malagold for the District of New Jersey’s Cybercrime Unit in Newark are prosecuting the case.
The U.S. Attorney’s Office for the District of Arizona and the Justice Department’s Office of International Affairs also provided significant assistance.
Victims of LockBit ransomware should contact their local FBI field office and visit StopRansomware.gov for further information.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Richland County Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA — Shondel Antwan Crim, 48, of Columbia, was sentenced to 8 years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the Court showed that Richland County Sheriff’s deputies were dispatched to the home of a shooting victim. The victim stated that she and Crim had stopped dating. She saw him at a gas station, and they talked, and he tried to rekindle the relationship. She declined and left the gas station. Crim followed her and fired into her car at least 2 times striking her car. An arrest warrant was issued for Crim.
A week later, the police see Crim at another gas station and arrest him. They found a 9mm Glock pistol in a holster inside his waistband. A search warrant was issued for his house where they found 9mm ammunition along with a small amount of crack cocaine.
Crim was taken to police headquarters where he admitted that the gun found on him was the one, he had during the shooting. Crim was prohibited from possessing a firearm based upon convictions for possession of crack, possession of a stolen car, possession of crack cocaine with intent to distribute in proximity of a school, possession with the intent to distribute crack cocaine 2nd offense, and burglary 2nd offense.
United States District Judge Mary Geiger Lewis sentenced Crim to 96 months (8 years) imprisonment, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon prosecuted the case.
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Readout from Associate Attorney General Vanita Gupta’s Meeting with Mille Lacs Band of OjibweRead the Press Release
Associate Attorney General Vanita Gupta traveled to Minnesota today and met with Tribal leaders and members of the Mille Lacs Band of Ojibwe. The trip focused on areas – public safety, justice administration, reentry and victims’ services – where the Justice Department provides substantial grant funding to support Tribal self-governance. Associate Attorney General Gupta held government-to-government meetings with the Tribe’s leadership, heard about the Tribe’s work to respond to challenges and reinforced the Justice Department’s commitment to supporting Indian Country. She was joined throughout the trip by Director Tracy Toulou of the Justice Department’s Office of Tribal Justice (OTJ).
The Associate Attorney General’s trip to the Mille Lacs Band is the first in a series of meetings with Tribal governments on Tribal land in the coming months and is part of the Justice Department’s continued efforts to strengthen ties to Indian Country and elevate the voices and concerns of American Indians and Alaska Natives.
Associate Attorney General Gupta opened the visit by remarking on the Supreme Court’s decision to reject constitutional challenges to the Indian Child Welfare Act, a landmark statute that protects Indian children and families and safeguards Tribal self-governance. As Attorney General Merrick B. Garland said in a statement following the decision, the Justice Department vigorously defended the Act before the Court and will continue to do everything in its power to protect Tribal communities and affirm Tribal sovereignty.
Meetings with Mille Lacs Band of Ojibwe Chief Executive and Tribal Leadership
Chief Executive Melanie Benjamin of the Mille Lacs Band welcomed the Associate Attorney General and convened a meeting with a number of the Band’s executive, legislative and judicial leaders. During the meeting, the Associate Attorney General learned more about the operations of the Band’s government, day-to-day challenges and exercise of sovereignty over their Homelands. Chief Executive Benjamin is the Midwest representative on the Attorney General’s Tribal Nations Leadership Council.
Associate Attorney General Vanita Gupta (center) and Chief Executive Melanie Benjamin (center right) with members of Tribal Leadership. Associate Attorney General Gupta (right) and Chief Executive Benjamin (left)Tour of Reservation and Government Programming
Later in the afternoon, Associate Attorney General Gupta joined a tour of the reservation, which included visits to Tribal Courts and the Band’s Police Department and Government Center. She also visited the Band’s aanjibimaadizing, a center dedicated to “changing lives” by providing social services to youth and adults. She ended her visit at the Band’s Health and Human Services Department.
Associate Attorney General Gupta (right) speaking with Associate Justice Brenda Moose, of the Mille Lacs Band Central Court of Jurisdiction (left). Associate Attorney General Gupta (left) touring the Mille Lacs Band Tribal Police Department with Chief of Police James West (right). Assembly Speaker and Secretary-Treasurer Sheldon Boyd (left) briefing Associate Attorney General Gupta (right) on the Band’s implementation of Justice Department-supported grant programming.Justice Department Resources to Address the Unique Needs of Indian Country
Throughout the visit, the Associate Attorney General and Tribal leadership discussed the Justice Department’s grant programs and how they assist the Band’s self-government initiatives. Through the Office of Justice Programs (OJP), Office on Violence Against Women (OVW) and Office of Community Oriented Policing Services (COPS Office), the Justice Department has provided the Band resources to construct new courtrooms, recruit and retain police officers, revise the Band’s statutes and provide shelter and services for victims of domestic violence. The Justice Department has also designated a Band attorney as a Special Assistant U.S. Attorney to enable the Band to more effectively prosecute serious crimes.
OTJ, among other duties, serves as a primary point of contact for Tribal governments and organizations regarding policies and programs and issues relating to public safety and justice in Indian country. In line with a whole-of-department approach, the department recently announced the hiring of 44 additional Assistant U.S. Attorneys and support staff to serve Native communities nationwide. In Minnesota alone, five new department personnel will be added to address issues arising within Indian Country.
Rapid City Man Sentenced for Receipt of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Receipt of Child Pornography. The sentencing took place on June 9, 2023.
Harland Bernard Johnson, 74, was sentenced to six 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, and a $5,000 special assessment to the Victims of Trafficking Fund. Johnson was also ordered to pay $5,000 in restitution and will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Johnson was indicted for Sexual Exploitation of a Minor, Receipt of Child Pornography, and Possession of Child Pornography by a federal grand jury in November of 2021. He pleaded guilty on September 23, 2022.
The conviction stems from Johnson receiving child pornography between January of 2018 and February of 2021, at Rapid City.
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 Internet Crimes Against Children Taskforce, Homeland Security Investigations, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Johnson was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Illegal Possession of a FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Rapid City, South Dakota, man for Possession of a Firearm by a Prohibited Person.
Christian Lorenzo Witt, age 30, was indicted in May of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on June 9, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Witt, a previously convicted felon who is prohibited from possessing firearms, knowingly being in possession of a Glock GmbH pistol in Rapid City in March of 2023.
The charge is merely an accusation and Witt is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by Bureau of Alcohol, Tobacco and Firearms, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Witt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Indicted for Illegal Possession of a FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Rapid City, South Dakota, man for Possession of a Firearm by a Prohibited Person.
Raymond Contreras, age 28, was indicted in May of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on June 9, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Contreras, a previously convicted felon who is prohibited from possessing firearms, knowingly being in possession of a Sporting Arms Manufacturing shotgun in Rapid City in March of 2023.
The charge is merely an accusation and Contreras is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Contreras was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Providence Resident Admits to Trafficking Fentanyl and MethamphetamineRead the Press Release
PROVIDENCE – A Providence man admitted to a federal judge on Tuesday that he possessed nearly 449 grams of methamphetamine and 64 grams of fentanyl that was intended for distribution, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, John Walker, 51, was detained by a member of the DEA Drug Task Force on March 3, 2022, moments after he left his Providence residence- a location where, as he acknowledged to a federal judge, he had just sold an individual a small amount of methamphetamine.
According to information presented to the court, at the time of his arrest, Walker was found to be in possession of approximately 59 grams of methamphetamine and $5,902 in cash. Walker told agents that he had additional narcotics inside an apartment that he described as a “drug den,” and provided them with a door code to enter the residence and directions as to where the drugs would be found.
Inside the apartment, DEA personnel located and seized approximately 449 grams of methamphetamine and approximately 64 grams of fentanyl.
Walker pleaded guilty on Tuesday to a charge of possession with intent to distribute more than 50 grams of methamphetamine and to a charge of possession with intent to distribute 40 grams or more of fentanyl. He is scheduled to be sentenced on September 19, 2023. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr., and G. Michael Seaman.
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Previously Convicted Felon Arrested for Distributing Fentanyl Pills and Unlawful Possession of AmmunitionRead the Press Release
BOSTON – A Methuen man was arrested today for allegedly trafficking counterfeit prescription pills containing fentanyl and unlawfully possessing ammunition.
Shawn Hart, 45, was charged with one count distribution of and possession with intent to distribute fentanyl and one count of being a felon in possession of ammunition. He will appear in federal court in Worcester this afternoon.
According to the charging documents, in August 2022, Hart was identified as a manufacturer and distributor of counterfeit pills containing controlled substances on the North Shore. On Sept. 15, 2022, Hart allegedly distributed approximately 500 counterfeit Adderall pills, containing 68 grams of fentanyl, during a controlled purchase in North Billerica. Additionally, on June 1, 2023, Hart allegedly distributed approximately 100 counterfeit oxycodone pills containing suspected fentanyl and well as a 9mm privately manufactured firearm (commonly known as a “ghost gun”) containing 19 rounds of ammunition during a controlled purchase at his home in Methuen.
It is further alleged that three additional firearms, a pill press used for manufacturing counterfeit pills and suspected narcotics in various forms and quantities were seized from Hart’s residence this morning following his arrest.
Hart is prohibited from possession firearms and ammunition due to multiple previous state felony convictions, including: possession with intent to distribute a class a controlled substance in December 2003; armed robbery in June 2004, for which he was sentenced to two years in prison; masked armed robbery, breaking and entering a vehicle at night and larceny in August 2004, for which he was sentenced to two years in prison; and assault and battery on a correctional institution guard in September 2004, for which he was sentenced to six months in prison.
The charge of distribution of and possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charge of unlawful possession of ammunition provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Methuen Police Department. Assistant U.S. Attorney Evan Panich of Levy’s Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburgh Resident Sentenced to 63 Months for Attempting to Provide a Prohibited Object to a Federal Inmate and Attempting to Obtain a Prohibited Object by a Federal InmateRead the Press Release
PITTSBURGH, PA – Omari Patton was sentenced to 63 months in federal prison for attempting to provide a prohibited object to a federal inmate and attempting to obtain a prohibited object by a federal inmate, United States Attorney Eric G. Olshan announced today.
Patton, age 44 of Pittsburgh, was sentenced by United States District Judge William S. Stickman. Patton was also ordered to serve three years of supervised release following his prison sentence.
Patton was convicted at the conclusion of a jury trial in February 2023. As established at trial, Patton operated a scheme to distribute K2 paper into and inside federal prisons. The K2 paper was saturated with powerful Schedule I synthetic cannabinoid controlled substances. He was serving a federal prison sentence at the time for prior large-scale heroin and cocaine trafficking convictions. He recruited his son into the scheme, resulting in his son’s conviction as well.
Assistant United States Attorneys Rebecca L. Silinski and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pigeon Forge Man Sentenced to 50 Years Imprisonment for Child Production and Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On June 15, 2023, Roger Glenn Boland, 68, currently of Pigeon Forge, Tennessee, was sentenced to 600 months imprisonment by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Boland agreed to plead guilty to an indictment charging him with, one count of production of Child Sexual Abuse Material (CSAM) in violation of 18 U.S.C. § 2251(a) and (e); and one count of distribution of CSAM in violation of 18 U.S.C. 2252A(a)(2). Following his incarceration, Boland will be on a lifetime of supervised release, he also will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to the plea agreement filed with the court, after receiving a tip that a 13-year-old child was in imminent danger of sexual abuse, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the Knoxville Police Department Internet Crimes against Children Unit (KPD-ICAC) executed a search warrant at the home where the child victim was residing. The child victim, Boland’s granddaughter, has cerebral palsy, is non-verbal, and is wheelchair bound. Boland admitted the victim was the result of an incestual relationship between Boland and his daughter, co-defendant Felina Shockley. Authorities searched Boland’s cellphone and located CSAM of the victim produced by Boland and Shockley. Boland admitted to distributing the CSAM images to other men with whom he was in ongoing communications. Shockley has pled guilty and will be sentenced at a later date.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and HSI Special Agent in Charge Rana Saoud made the announcement. Both express gratitude to the Knoxville Police Department’s Internet Crimes Against Children (KPD-ICAC) Unit for their collaboration in this investigation.
The criminal indictment was the result of an investigation by KPD-ICAC and HSI.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 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, PSC 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 PSC, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Pierre Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Pierre, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on June 12, 2023.
Sylvan Larrabee, age 31, was sentenced to 17 months in federal prison, followed by five years of supervised release, and ordered to pay a $100.00 special assessment to the Federal Crime Victims Fund.
Larrabee was indicted by a federal grand jury in February of 2023. He pleaded guilty on March 16, 2023.
The conviction stems from conduct that occurred between December 9, 2022, and January 3, 2023, wherein Larrabee, who is required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a federal conviction for Sexual Contact with a Minor, did knowingly fail to register and update his registration.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Larrabee was immediately remanded to the custody of the U.S. Marshals Service.
Organized Crime Drug Enforcement Task Force Case Results in Sentence of More than 8 Years for North Louisiana ManRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that an Organized Crime Drug Enforcement Task Force (OCDETF) case dubbed “Operation Pick Your Battles” has resulted in a conviction and sentence for Clifton Williams, 48, of Many, Louisiana. Williams was sentenced today by United States District Judge Elizabeth E. Foote to a total of 100 months (8 years, 4 months) in prison, followed by 5 years of supervised release. Williams pleaded guilty November 2, 2022, to possession of a firearm during a drug trafficking crime and possession of a firearm by a convicted felon.
According to evidence presented to the court, on or about February 10, 2022, law enforcement officers executed a search warrant at Williams’ home in Many, Louisiana. Williams was present at the residence at the time of the search when officers found methamphetamine, a scale, a box of sandwich bags, and a loaded Glock Model 23 .40 caliber pistol with an extended magazine. Williams was subsequently arrested. At the time of his arrest, Williams was serving time on federal supervised release for his conviction from 2011 of conspiracy to possess with intent to distribute methamphetamine in United States District Court in the Western District of Louisiana. As a convicted felon, Williams knew that he was prohibited from possessing any firearm or ammunition.
The narcotics seized were sent to the crime lab for testing and confirmed to be methamphetamine. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the firearm and determined it to be operable.
The case was investigated by the Federal Bureau of Investigation, ATF, and Sabine Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy.
This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Oregon Man Pleads Guilty to Hate Crime Charges for Bias-Motivated Attacks in BoiseRead the Press Release
An Oregon man pleaded guilty in the U.S. District Court in Boise, Idaho, today to two federal hate crimes.
According to court records, on Oct. 8, 2022, while at the Boise Public Library Main Branch in downtown Boise, Matthew Alan Lehigh, 31, approached a transgender library employee, called her a slur, punched her and threatened to stab her. A member of the library’s security staff intervened, and Lehigh fled into the parking lot. When the security guard attempted to speak to Lehigh in the parking lot, Lehigh got into a car and suddenly accelerated it toward the guard, intending to collide with him. The guard narrowly escaped being struck by jumping behind a concrete barricade at the last moment, and Lehigh fled the scene.
Four days later, while sitting in his car in a public parking lot elsewhere in Boise, Lehigh saw two women walking together towards another vehicle. Assuming that the women identified as lesbian, Lehigh began shouting threats and slurs at them, then suddenly accelerated his car toward the women, intending to collide with them. The women jumped out of the path of Lehigh’s oncoming car, which struck the other vehicle at significant speed.
The superseding information to which Lehigh pled guilty charges him with one felony violation of the Hate Crimes Prevention Act for the vehicular assault on the library security guard, and a second felony violation of Act for the vehicular assault on the two women.
As part of his plea agreement, Lehigh also admitted that he was responsible for three other instances of anti-LGBTQI+ vandalism and violence that occurred in Boise during early October 2022. Specifically, he admitted to setting fire to a rainbow-striped “pride” flag attached to a residential property in North Boise, breaking several windows at a commercial building jointly occupied by an LGBTQI+ community organization and an LGBTQI+-affirming religious congregation, and punching a grocery store customer after calling him an anti-LGBTQI+ slur.
“This defendant targeted strangers for terrifying attacks for no reason other than his perceptions of their sexual orientation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should live in fear of hate-fueled violence because of who they are. The Justice Department will continue to vigorously prosecute those who commit heinous acts of hate, and we are committed to protecting the rights of all Americans, including those in the LGBTQI+ community.”
“Everyone, no matter who they are, should be free from senseless violence,” said U.S. Attorney Josh Hurwit for the District of Idaho. “I am grateful to the Boise Police Department and the FBI for thoroughly and efficiently investigating this case. And I hope the victims are able to take solace in the fact that the defendant is being held accountable for his hateful and violent acts.”
“Hate crimes such as this are an attack on a deeply personal part of someone’s identity, and they have a devastating impact on families and communities,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI will not tolerate violence against the LGBTQI+ community. We will continue to investigate civil rights violations and do everything we can to keep our communities safe and free from fear.”
Lehigh faces between 37 and 45 months in prison, followed by three years of supervised release. The agreement also requires that Lehigh pay restitution to all victims and that he remains continuously under the care of a clinical psychiatrist upon his release from prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The Boise Police Department and the Boise Resident Agency of the FBI Salt Lake City Field Office investigated the case.
Assistant Attorney General Clarke, U.S. Attorney Hurwit and Acting Special Agent in Charge Gibson made the announcement.
Assistant U.S. Attorney Katherine Horwitz for the District of Idaho and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
If members of the public have information concerning hate crimes or wish to report a similar crime, they should contact the Federal Bureau of Investigation at (208) 344-7843 or the U.S. Attorney’s Office at (208) 334-1211.
Oregon Man Pleads Guilty to Hate Crime Charges for Bias-Motivated Attacks in BoiseRead the Press Release
BOISE – An Oregon man pleaded guilty in the U.S. District Court in Boise, Idaho, today to two federal hate crimes.
According to court records, on Oct. 8, 2022, while at the Boise Public Library Main Branch in downtown Boise, Matthew Alan Lehigh, 31, approached a transgender library employee, called her a slur, punched her, and threatened to stab her. A member of the library’s security staff intervened, and Lehigh fled into the parking lot. When the security guard attempted to speak to Lehigh in the parking lot, Lehigh got into a car and suddenly accelerated it toward the guard, intending to collide with him. The guard narrowly escaped being struck by jumping behind a concrete barricade at the last moment, and Lehigh fled the scene.
Four days later, while sitting in his car in a public parking lot elsewhere in Boise, Lehigh saw two women walking together towards another vehicle. Assuming that the women identified as lesbian, Lehigh began shouting threats and slurs at them, then suddenly accelerated his car toward the women, intending to collide with them. The women jumped out of the path of Lehigh’s oncoming car, which struck the other vehicle at significant speed.
The superseding information to which Lehigh pled guilty charges him with one felony violation of the Hate Crimes Prevention Act for the vehicular assault on the library security guard, and a second felony violation of Act for the vehicular assault on the two women.
As part of his plea agreement, Lehigh also admitted that he was responsible for three other instances of anti-LGBT vandalism and violence that occurred in Boise during early October 2022. Specifically, he admitted to setting fire to a rainbow-striped “pride” flag attached to a residential property in North Boise, breaking several windows at a commercial building jointly occupied by an LGBTQI+ community organization and an LGBTQI+-affirming religious congregation, and punching a grocery store customer after calling him an anti-LGBTQI+ slur.
“This defendant targeted strangers for terrifying attacks for no reason other than his perceptions of their sexual orientation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should live in fear of hate-fueled violence because of who they are. The Justice Department will continue to vigorously prosecute those who commit heinous acts of hate, and we are committed to protecting the rights of all Americans, including those in the LGBTQI+ community.”
“Everyone, no matter who they are, should be free from senseless violence,” said U.S. Attorney Josh Hurwit for the District of Idaho. “I am grateful to the Boise Police Department and the FBI for thoroughly and efficiently investigating this case. And I hope the victims are able to take solace in the fact that the defendant is being held accountable for his hateful and violent acts.”
“We will not tolerate violence fueled by hatred,” said Acting Special Agent in Charge Cheyvoryea Gibson of the FBI’s Salt Lake City Field Office. “The FBI is committed to working tirelessly with our law enforcement partners to guarantee that everyone, regardless of identity, sexual orientation, faith or disability, feels secure and protected in our communities.” Lehigh to faces between 37 and 45 months in prison, followed by three years of supervised release. The agreement also requires that Lehigh pay restitution to all victims and that he remains continuously under the care of a clinical psychiatrist upon his release from prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The Boise Police Department and the Boise Resident Agency of the FBI Salt Lake City Field Office investigated the case.
Assistant Attorney General Clarke, U.S. Attorney Hurwit and Acting Special Agent in Charge Gibson made the announcement.
Assistant U.S. Attorney Katherine Horwitz for the District of Idaho and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
If members of the public have information concerning hate crimes or wish to report a similar crime, they should contact the Federal Bureau of Investigation at (208) 344-7843 or the U.S. Attorney’s Office at (208) 334-1211.
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Oregon Man Indicted for Role in the Torture, Mutilation, and Murder of MonkeysRead the Press Release
EUGENE, Ore.—On June 14, 2023, a federal indictment was unsealed charging a Prineville, Oregon man with administering an online animal abuse group and illegally possessing firearms as a dismissed military officer.
David Christopher Noble, 48, has been charged with conspiring to engage in animal crushing and creating and distributing animal crush videos, creating animal crush videos, and illegally possessing a firearm as a dishonorably discharged person.
According to court documents, from an unknown date but no later than January 19, 2022, and continuing until February 2, 2023, Noble is alleged to have knowingly conspired with others to view, encourage, and fund animal crush videos as part of an online group using an encrypted chat application. As a group administrator, Noble paid for the creation of and celebrated videos depicting the torture, sexually-sadistic mutilation, and murder of adult and juvenile monkeys. Noble further managed the group’s membership and repeatedly changed the group’s name to evade detection by law enforcement.
In 2006, Noble, a former United States Air Force Officer, was dismissed from the Air Force and ordered to serve six months in military custody following a court martial for fraud and an unprofessional relationship. Despite these offenses, Noble is alleged to have illegally possessed multiple firearms, including a Colt M4 carbine assault rifle.
In January 2023, Noble relocated from Prineville to Henderson, Nevada after a federal search warrant was executed on his Prineville residence. On June 13, 2023, he was arrested in Henderson. On June 14, 2023, Noble made his first appearance in federal court in Las Vegas and was ordered detained pending his transfer to the District of Oregon.
Creating animal crush videos is punishable by up to seven years in federal prison and three years’ supervised released. Illegally possessing a firearm as a dishonorably discharged person is punishable by up to 15 years in federal prison and three years’ supervised release.
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by William M. McLaren and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Nine Charged with Conspiracy to Steal Major Artworks and Sports MemorabiliaRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nicholas Dombek, age 53, of Thornhurst, Pennsylvania, Damien Boland, age 47, of Moscow, Pennsylvania, Alfred Atsus, age 47, of Covington Township, Pennsylvania, and Joseph Atsus, age 48, of Roaring Brook, Pennsylvania were indicted by a federal grand jury for conspiracy to commit theft of major artwork, concealment or disposal of objects of cultural heritage, and interstate transportation of stolen property. All four men were also charged with substantive counts of theft of major artwork and the concealment or disposal of objects of cultural heritage. Dombek was further charged with a substantive count of interstate transportation of stolen property.
Five other individuals were charged by felony informations for the same conspiracy. They are Thomas Trotta, age 48, of Moscow, Pennsylvania, Frank Tassiello, age 50, of Scranton, Pennsylvania, Daryl Rinker, age 50, of Thornhurst, Pennsylvania, Dawn Trotta, age 51, of Covington Township, Pennsylvania, and Ralph Parry, age 45, of Covington Township, Pennsylvania.
According to United States Attorney Gerard M. Karam, the indictment and informations charge the nine with conspiring over a period of 20 years to break into multiple museums and other institutions to steal priceless works of art, sports memorabilia, and other objects. Those objects include the following:
- A Christy Mathewson jersey and two contracts signed by Mathewson stolen in 1999 from Keystone College in Factoryville, Pennsylvania;
- “Le Grande Passion” by Andy Warhol and “Springs Winter” by Jackson Pollock stolen in 2005 from the Everhart Museum, Scranton, Pennsylvania;
- Nine (9) World Series rings, seven (7) other championship rings, and two (2) MVP plaques awarded to Yogi Berra, worth over $1,000,000 stolen in 2014 from the Yogi Berra Museum & Learning Center, Little Falls, New Jersey;
- Six (6) championship belts, including four awarded to Carmen Basilio and two awarded to Tony Zale stolen in 2015 from the International Boxing Hall of Fame, Canastota, New York;
- The Hickok Belt and MVP Trophy awarded to Roger Maris, stolen in 2016 from the Roger Maris Museum, Fargo, North Dakota;
- The U.S. Amateur Trophy and a Hickok Belt awarded to Ben Hogan, stolen in 2012 from the USGA Golf Museum & Library, Liberty Corner, New Jersey;
- Fourteen (14) trophies and other awards worth over $300,000 stolen in 2012 from the Harness Racing Museum & Hall of Fame, Goshen, New York;
- Five (5) trophies worth over $400,000, including the 1903 Belmont Stakes Trophy, stolen in 2013 from the National Racing Museum & Hall of Fame, Saratoga Springs, New York;
- Eleven (11) trophies, including 4 awarded to Art Wall, Jr. stolen in 2011 from the Scranton Country Club, Clarks Summit, Pennsylvania;
- Three antique firearms worth a combined $1,000,000 stolen in 2006 from Space Farms: Zoo & Museum, Wantage, New Jersey;
- An 1903/1904 Tiffany Lamp stolen in 2010 from the Lackawanna Historical Society, Scranton, Pennsylvania,
- “Upper Hudson” by Jasper Cropsey, worth approximately $500,000, and two antique firearms worth over $300,000, stolen in 2011 from Ringwood Manor, Ringwood, New Jersey;
- $400,000 worth of gold nuggets stolen in 2011 from the Sterling Hill Mining Museum, Ogdensburg, New Jersey;
- Various gems, minerals, and other items stolen in 2017 from the Franklin Mineral Museum, Franklin, New Jersey;
- An antique shotgun worth over $30,000 stolen in 2018 from Space Farms: Zoo & Museum, Wantage, New Jersey;
- Various jewelry, and other items from multiple antique and jewelry stores in New York, Rhode Island, and Pennsylvania.
The indictment and informations further allege that after stealing the above-described items, the conspirators transported the stolen goods back to Northeastern Pennsylvania, often to the residence of Dombek, and melted the memorabilia down into easily transportable metal discs or bars. The conspirators sold the raw metal to other individuals in the New York City area for hundreds or thousands of dollars, but significantly less than the stolen items would be worth at fair market value.
The indictment and informations further allege that Dombek burnt the painting “Upper Hudson” by Jasper Cropsey, valued at approximately $500,000, to avoid the recovery of the painting by investigators for use as evidence against the members of the conspiracy. The whereabouts of many of the other paintings and stolen objects are currently unknown.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, the New Jersey State Police, the New York State Police, the New Jersey State Park Police, the Newport Police Department (Rhode Island), the Fargo Police Department (North Dakota), the Chester Police Department (New York), the Wyoming Regional Police Department (Pennsylvania), the Scranton Police Department, the Franklin Police Department (New Jersey), the Village of Goshen Police Department (New York), the Metropolitan Police Department (Washington, D.C.), the West Milford Township Police Department (New Jersey), the Montclair Police Department (New Jersey), the Saratoga Springs Police Department (New York), the Canastota Police Department (New York), the South Abington Police Department (Pennsylvania), the Bernards Township Police Department (New Jersey), the Salisbury Township Police Department (Pennsylvania), the Montclair State University Police Department (New Jersey), the Lackawanna County District Attorney’s Office (Pennsylvania), the Sussex County Prosecutor’s Office (New Jersey), the Essex County Prosecutor’s Office (New Jersey), the Orange County District Attorney’s Office (New York), and the Madison County District Attorney’s Office (New York). Assistant United States Attorney James M. Buchanan is prosecuting the case.
The maximum penalty under federal law for the conspiracy count is five years imprisonment, and for each of the other offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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New Orleans Resident Sentenced to 21 Months Imprisonment After Pleading Guilty to International Parental KidnappingRead the Press Release
NEW ORLEANS – KIDUS AWLACHEW, age 33, a resident of New Orleans, Louisiana, was sentenced on June 13, 2023 by United States District Judge Jay Zainey to 21 months in prison, one (1) year of supervised release, including an order to stay away from the minor victim, the minor victim’s mother, and members of their family and payment of a mandatory $100 special assessment fee, after previously pleading guilty to international parental kidnapping, in violation of Title 18, United States Code, Section 1204, announced U.S. Attorney Duane A. Evans. A restitution hearing has been scheduled for August 15, 2023, at 10:00 am.
According to court documents, AWLACHEW and Person 1, an adult female, began dating in about 2018. Soon thereafter, Person 1 and her daughter, Minor Victim, moved into AWLACHEW’S residence. Between 2018 and January 2022, AWLACHEW often voluntarily acted in a parental capacity toward Minor Victim .
In about December 2021, AWLACHEW told Person 1 that he wanted to take Minor Victim to Ethiopia to experience a different culture for about one month. Based on those representations, Person 1 agreed. In fact, AWLACHEW intended to keep Minor Victim in Ethiopia for more than one month.
Thereafter, AWLACHEW purchased tickets for he and Minor Victim to travel to Ethiopia on January 14, 2022, and to return on February 21, 2022. AWLACHEW and Minor Victim did not return on February 21. On numerous occasions, Person 1 inquired why AWLACHEW had not returned with Minor Victim and demanded that he do so. AWLACHEW either ignored the inquiries or provided a false justification for not returning. Moreover, AWLACHEW usually did not allow Person 1 to correspond directly with Minor Victim.
Law enforcement authorities recovered Minor Victim from AWLACHEW’S custody in Addis Ababa, Ethiopia, and took AWLACHEW into custody, on July 20, 2022. United States law enforcement authorities arranged for Minor Victim to be returned to New Orleans and reunited with her mother. AWLACHEW was returned to the United States on August 24, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the 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. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, United States Department of State, and Louisiana State Police in investigating this matter. U.S. Attorney Evans also expressed appreciation for the cooperation provided by the Government of the Federal Democratic Republic of Ethiopia. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit ,was in charge of the prosecution.
New Orleans Man Pleads Guilty to Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – DEVON CLAIBORNE, age 24, pleaded guilty on June 13, 2023 before United States District Judge Wendy B. Vitter to a one count indictment charging him with being a felon in possession of a firearm, announced United States Attorney Duane A. Evans.
CLAIBORNE faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a mandatory $100 special assessment fee.
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 the Federal Bureau of Investigation and the Louisiana State Police in investigating this matter. The case is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
Northport, New York Man Indicted for Wire Fraud and Money LaunderingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced today that on June 12, 2023, a federal indictment was unsealed charging Charles T. Lawrence (49), a Northpoint, New York resident with wire fraud, in violation of Title 18, United States Code, Section 1343, and money laundering, in violation of Title 18, United States Code, Sections 1956 and 1957.
According to filed court documents, between January 2022 and March 2023, Lawrence engaged in a scheme to defraud individuals with false and fraudulent promises and representations regarding their investment of funds. Instead of using these individuals’ funds as represented, Lawrence is alleged to have used the money to pay personal expenses and repay prior victims. If convicted of these offenses, Lawrence faces a maximum penalty of twenty years in prison, fines up to $500,000 or twice the value of the laundered funds, and up to three years of supervised release.
The Federal Deposit Insurance Corporation, Office of the Inspector General investigated the case. Assistant United States Attorney Julie F. Stewart will prosecute this case.
Separately, the United States Securities and Exchange Commission (SEC) announced, on May 11, 2023, that it filed a civil lawsuit against Lawrence, in the United States District Court for the Eastern District of Wisconsin. The SEC alleges that Lawrence violated securities laws by defrauding investors. The case is United States Securities and Exchange Commission v. Lawrence, et al., Case No. 23-CV-550.
The public is cautioned that an indictment or criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer
Kenneth.Gales@usdoj.gov
414-297-1700
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Mission Man Sentenced for Assaulting a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer. The sentencing took place on June 13, 2023.
Dylan Blue Bird, age 30, was sentenced to three years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Blue Bird was indicted for Assaulting, Resisting, and Impeding a Federal Officer by a federal grand jury in November of 2022. He was found guilty after a jury trial on March 16, 2023.
On September 30, 2022, at approximately 11:30 pm, officers with the Rosebud Sioux Tribe Law Enforcement Services attempted a traffic stop on Blue Bird after observing traffic violations in Todd County. Blue Bird did not stop and led officers on a high-speed pursuit on Highway 18, reaching speeds in excess of 110 miles per hour. During the pursuit, Blue Bird drove in the opposing lane of travel towards an officer engaged in the pursuit, forcing the officer off the roadway. The pursuit came to an end after officers deployed spike strips, disabling Blue Bird’s vehicle.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Blue Bird was immediately remanded to the custody of the U.S. Marshals Service.
Michigan Man Sentenced to Prison for Providing Material Support to A Terrorist OrganizationRead the Press Release
DETROIT – A Dearborn resident was sentenced today to 14 years in federal prison after having been convicted at trial earlier this year on charges of providing and conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and attending an ISIS training camp.
The sentence was announced by Assistant Attorney General for National Security Matthew G. Olsen, U.S. Attorney Dawn N. Ison of the Eastern District of Michigan, and James A. Tarasca, Special Agent in Charge of the Detroit, Michigan, office of the Federal Bureau of Investigation.
Ibraheem Izzy Musaibli, 32, of Dearborn, Michigan, was sentenced by United States District Judge David M. Lawson. Musaibli was convicted after a 9-day trial conducted in Detroit in January 2023.
Musaibli, a natural-born U.S. citizen, was convicted on charges of providing and attempting to provide material support to ISIS, conspiring to provide material support to ISIS, and attending an ISIS training camp.
Evidence presented during the trial established that Musaibli, born in Detroit, began looking into ISIS while in Michigan in 2015. He then traveled to Yemen in April 2015 and continued to research ISIS—including downloading ISIS propaganda and an ISIS book on how to get into Syria. From Yemen, he traveled to Syria in the fall of 2015, where he attended an ISIS-run religious training camp before undergoing ISIS military training where he learned to shoot, carry, and otherwise handle an AK-47 assault rifle. Upon graduation from the ISIS military training camp, Musaibli swore allegiance to ISIS and its leader. Musaibli remained with ISIS for over two and a half years. During that time, Musaibli fought for ISIS against the United States and its allies, where he was wounded in battle. Musaibli was eventually apprehended by Syrian Democratic Forces in 2018, turned over to the FBI, and flown back to the United States to face terrorism charges.
“This defendant chose to join a brutal, foreign terrorist organization and then to fight against the United States,” said U.S. Attorney Ison. “For his betrayal of our nation and his fellow citizens, he is deserving of a long sentence.”
“This case is a reminder of the danger posed by those who travel overseas to join forces with terrorist groups,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The sentence imposed on Mr. Musaibli is a clear reminder to others of the consequences of providing material support to ISIS or any foreign terrorist organization.”
This case was investigated by FBI's Joint Terrorism Task Force, which includes representatives from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, U.S. Citizenship and Immigration Services, U.S. Department of State - Diplomatic Security, US Customs and Border Protection, Michigan State Police, and the Hamtramck Police Department. The case is being prosecuted by Assistant U.S. Attorneys Hank Moon and Michael Martin of the Eastern District of Michigan with assistance from the National Security Division’s Counterterrorism Section.Metamora Man Convicted of Attempted Sex Trafficking of a MinorRead the Press Release
Dana Curtin, 49, of the 1100 block of Willow Lake Drive in Metamora, Illinois, was found guilty today of one count of attempted sex trafficking of a minor.
Over three days of trial before U.S. District Judge James E. Shadid, the United States presented evidence to establish that from March through May 2022, Curtin spoke with an individual he believed to be an adult offering sex with a minor and then traveled to meet the adult and child. Federal law enforcement agents arrested him when he arrived at the meeting location.
Sentencing for Curtin has been scheduled on October 18, 2023, at the U.S. Courthouse in Peoria, Illinois. At sentencing, Curtin faces statutory penalties of 15 years to life imprisonment, to be followed by five years to life of supervised release, and a possible fine of up to $250,000. He also must register as a sex offender. And the charge carries a mandatory special assessment of $5,000 under the Justice for Victims of Trafficking Act of 2015, unless Curtin is ruled indigent. Curtin is now in the custody of the U.S. Marshals Service.
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, and the Illinois State Police. Assistant U.S. Attorneys Keith Hollingshead-Cook and Ronald L. Hanna represented the United States at trial.
The case against Curtin was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mandeville Man Charged with Wire FraudRead the Press Release
NEW ORLEANS – JOHN SUTTON (“SUTTON”), a resident of Mandeville, Louisiana, was charged on June 13, 2023 with one count of wire fraud, announced United States Attorney Duane A. Evans.
According to the charging document, SUTTON co-owned and operated a company called VetAttend Professional Services, LLC where he purported to provide services to Veterans for home aid and assistance.
According to the bill of information, SUTTON submitted fraudulent affidavits for home aid services provided, knowing that those services were not actually provided. As part of the scheme to defraud, beginning in or about April 2013 and continuing until at least July 2018, SUTTON devised a scheme and artifice to defraud the United States Department of Veterans Affairs (Veterans Affairs). Through his scheme, SUTTON obtained money and property by submitting false affidavits and applications to Veterans Affairs on behalf of veterans and their spouses, claiming that VetAttend had provided home services to the veterans when, in fact, it had not. During the scheme to defraud, Veterans Affairs issued funds totaling approximately $6.1 million dollars to over 300 veterans and/or their surviving spouses that SUTTON fraudulently appropriated, without the knowledge of the veterans.
If convicted, SUTTON faces a possible maximum sentence of 20 years imprisonment, up to three years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Duane A. Evans stated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being investigated by the Department of Veterans Affairs Office of Inspector General. The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh of the Financial Crimes Unit.
Madison Felon Sentenced to 27 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Anthony Bailey, 33, Madison, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 27 months in federal prison for possessing a firearm as a felon. This prison term will be followed by a 3-year term of supervised release. Bailey pleaded guilty to this charge on March 20, 2023.
On February 6, 2022, an officer with the Fitchburg Police Department responded to a noise complaint in a residential neighborhood. When the officer arrived, he saw Bailey involved in a physical fight with his girlfriend in the street. After the two stopped fighting, Bailey admitted to having a loaded Glock gun in his pants. He is prohibited from possessing firearms and ammunition as a result of two felony convictions from 2008 and 2010.
In sentencing Bailey, Judge Conley stated the sentence was justified by Bailey’s lack of compliance under pretrial supervision, which included committing a new crime after failing to appear for a hearing in this case. Judge Conley also stated that he could not ignore that to date, Bailey had failed to choose a life path free from crime.
The charge against Bailey was the result of an investigation conducted by Fitchburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Federal Bureau of Investigation. Assistant U.S. Attorney Taylor L. Kraus handled the prosecution of this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Leader of Money Transmitting Business that Laundered over $1 Million in Fraud Proceeds Sentenced to Five Years in PrisonRead the Press Release
BOSTON – A Texas man was sentenced on June 13, 2023 in federal court in Boston for operating an illegal money transmitting business that laundered the proceeds of international investment and romance fraud schemes
Charles Ochi, 28, of Grand Prairie, Texas, was sentenced by U.S. District Court Judge Richard G. Stearns to five years in prison and three years of supervised release. Ochi was also ordered to pay forfeiture of $141,021 and restitution, which will be determined at a later date. On April 12, 2023, Ochi pleaded guilty to one count of money laundering conspiracy, one count of conspiring to conduct an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business.
In or about 2016, Ochi organized and led a group of money transmitters that laundered over $1 million in proceeds from fraud schemes. Some of these fraud schemes purported to offer trading and Bitcoin investing services when, in fact, investor funds were stolen and later victims’ investments were used to pay purported returns to earlier investors. Ochi recruited at least five individuals in Texas and Maryland to join his operation, and directed them to use bank accounts to receive fraud proceeds and then to withdraw and transfer the money to numerous other persons, often by cashier’s check or through electronic transfers. Ochi also engaged in illicit currency exchange business activity, in which he, a co-conspirator, and others exchanged fraud proceeds for Nigerian Naira on the black market.
In total, the scheme laundered over $1,168,000 from at least 123 victims of investment and romance fraud schemes in Massachusetts, California, Florida, and Canada.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Division of Enforcement at the Commodity Futures Trading Commission. Assistant U.S. Attorney Kriss Basil of Levy’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Latin Kings Leader Convicted of the 2017 Murder of Joshua FloresRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JONATHAN GARCIA, a/k/a “Jayo,” was found guilty at trial of the May 2017 murder of Joshua Flores in aid of racketeering. GARCIA shot and killed Flores in front of a playground on a residential street in Queens, New York, while Flores was running away from GARCIA. The verdict followed a four-day trial before U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “Jonathan Garcia gunned down his victim, 23-year-old Joshua Flores, to gain standing within the violent Latin Kings street gang. Then, Garcia bragged about the murder for years as he advanced in the ranks of the Latin Kings and engaged in additional violence and drug trafficking with his fellow gang members. Today, a unanimous jury held Garcia accountable for his brutal killing of Joshua Flores and the devastating impact of his crimes on the community. This Office remains fully committed to working with our law enforcement partners to root out gang violence from the streets of New York City.”
According to court filings and the evidence presented in court during the trial:
GARCIA is a member of a racketeering enterprise known as the Latin Kings and, specifically, the set or “tribe” of the Latin Kings known as the Black Mob, which operates in the Bronx, Manhattan, Queens, Brooklyn, and Long Island. In order to enrich the enterprise, protect and expand its criminal operations, enforce discipline among its members, and retaliate against members of rival gangs, members and associates of the Black Mob committed, conspired, attempted, and threatened to commit acts of violence; distributed and possessed with intent to distribute narcotics, including heroin, fentanyl, and crack; committed robberies; and obtained, possessed, and used firearms. In December 2019 and April 2021, several members and associates of the Black Mob, including its senior-most leaders, were charged with racketeering offenses, narcotics conspiracy, and firearms offenses.
GARCIA has been a member of the Latin Kings since at least 2012. On May 18, 2017, GARCIA brought a firearm to a meeting with other Latin Kings members with whom he had been arguing and who intended to revoke his membership in the Latin Kings. During the meeting, next to a park in a residential area of Queens, GARCIA began arguing with other gang members. When the argument escalated, one of GARCIA’s associates fired a warning shot into the air, and gang members immediately began running away. GARCIA then took the firearm from his associate and shot at the fleeing gang members, hitting Joshua Flores, who was trying to run away. The bullet went through Flores’s back, into his jaw, and killed him. The murder elevated GARCIA’s status within the Latin Kings, including the Black Mob, with whom GARCIA committed additional crimes in the years after the murder.
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GARCIA, 29, of Queens, New York, was found guilty of (i) conspiracy to commit racketeering, which carries a maximum term of life in prison; (ii) murder in aid of racketeering, which carries a mandatory term of life in prison or death; (iii) narcotics conspiracy, which carries a maximum term of life in prison and a mandatory minimum term of 10 years in prison; and (iv) use of a firearm in furtherance of a drug trafficking offense, which carries a maximum term of life in prison and a mandatory minimum term of seven years in prison, which must be served consecutively to any other term of 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 would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Adam Hobson, David Robles, and Patrick Moroney, with the assistance of Paralegal Specialist Sam Dobro, are in charge of the prosecution.