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20 December 2022
Two Men Arrested for Conspiring with Russian Nationals to Hack the Taxi Dispatch System at JFK AirportRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and John Gay, the Inspector General of the Port Authority of New York and New Jersey (the “Port Authority”), announced the unsealing of an Indictment charging DANIEL ABAYEV and PETER LEYMAN with two counts of conspiracy to commit computer intrusions. The Indictment charges that ABAYEV and LEYMAN hacked the electronic taxi dispatch system (the “Dispatch System”) at John F. Kennedy International Airport (“JFK”). Taxi drivers are required to wait in a holding lot at JFK before they are dispatched to pick up a fare. A computer system ensures that taxis are dispatched in the order in which they arrived. ABAYEV and LEYMAN conspired with Russian nationals to hack the Dispatch System and move certain taxis to the front of the line, in exchange for payment. ABAYEV and LEYMAN were arrested this morning in Queens, New York, and will be presented this afternoon before United States Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Damian Williams said: “As alleged in the indictment, these two defendants — with the help of Russian hackers — took the Port Authority for a ride. For years, the defendants’ hacking kept honest cab drivers from being able to pick up fares at JFK in the order in which they arrived. Now, thanks to this Office’s teamwork with the Port Authority, these defendants are facing serious criminal charges for their alleged cybercrimes.”
Port Authority Inspector General John Gay said: “This sophisticated, internationally coordinated conspiracy allegedly targeted hard-working taxi drivers trying to earn an honest living. The Port Authority has zero tolerance for bad actors violating the law at our facilities. We thank Damian Williams and the Southern District for their partnership as we continue our relentless commitment to detecting and disrupting illegal behavior at our facilities across the region.”
As alleged in the Indictment:[1]
From at least September 2019 through September 2021, ABAYEV and LEYMAN, who are U.S. citizens residing in Queens, New York, and Russian nationals residing in Russia (the “Russian Hackers”), engaged in a scheme (the “Hacking Scheme”) to hack the Dispatch System at JFK.
At all relevant times, taxi drivers who sought to pick up a fare at JFK were required to wait in a holding lot at JFK before being dispatched to a specific terminal by the Dispatch System. Taxi drivers were frequently required to wait several hours in the lot before being dispatched to a terminal and were dispatched in approximately the order in which they arrived at the holding lot.
Beginning in 2019, ABAYEV and LEYMAN explored and attempted various mechanisms to access the Dispatch System, including bribing someone to insert a flash drive containing malware into computers connected to the Dispatch System, obtaining unauthorized access to the Dispatch System via a Wi-Fi connection, and stealing computer tablets connected to the Dispatch System. The members of the Hacking Scheme also sent messages to each other in which they explicitly discussed their intention to hack the Dispatch System. For example, on or about November 10, 2019, ABAYEV messaged the following to one of the Russian Hackers in Russian: “I know that the Pentagon is being hacked[.]. So, can’t we hack the taxi industry[?]”
At various times between November 2019 and November 2020, ABAYEV and LEYMAN, working with others, successfully hacked the Dispatch System. They used their unauthorized access to alter the Dispatch System and move specific taxis to the front of the line, thereby allowing drivers of those taxis to skip other taxi drivers waiting in the line. ABAYEV and LEYMAN charged taxi drivers $10 each time they were advanced to the front of the line. Taxi drivers learned that they could skip the taxi line by paying $10 to members of the Hacking Scheme through word of mouth, and members of the Hacking Scheme offered some taxi drivers waivers of the $10 fee in exchange for recruiting other taxi drivers to pay the $10 fee to skip the taxi line. The Hacking Scheme also used large group chat threads in order to communicate with taxi drivers. For example, when the Hacking Scheme had access to the Dispatch System for the day, a member of the Hacking Scheme would message the group chat threads, “Shop open.” ABAYEV also sent messages to large groups of taxi drivers on the chat threads instructing them how to avoid detection by law enforcement when using trips purchased from the Hacking Scheme, such as the following:
DEAR DRIVERS !!!! PLEASE !!!!
Do not wait at the gas station in JFK
Please do not go around the CTH [Central Taxi Hold] Lot
Please do not wait at Rockway av
You have to be very very carefully
ABAYEV and LEYMAN’s scheme resulted in large numbers of taxi drivers skipping the taxi line. Over the course of the scheme, they enabled as many as 1,000 fraudulently expedited taxi trips a day.
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ABAYEV, 48, and LEYMAN, 48, both of Queens, New York, are each charged with two counts of conspiracy to commit computer intrusion. The charges carry a maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the Port Authority Office of the Inspector General. Mr. Williams also thanked Homeland Security Investigations for their assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Steven J. Kochevar are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Two Florida Men Plead Guilty to Roles in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Joshua Mallory, age 37, and Gary Grier, age 36, of Fort Lauderdale, Florida, pled guilty this week in federal court in Syracuse to conspiracy to commit bank fraud and aggravated identity theft, announced United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County (New York) Sheriff Kevin J. McConville.
In pleading guilty, Mallory and Grier admitted that they were involved in a fraud scheme known as “Felony Lane Gang” between 2015 and 2020. Mallory, Grier, and their co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. Mallory, Grier, and other members of the conspiracy stole debit cards, credit cards, checkbooks, and photo identifications in these “smash-and-grab” vehicle thefts, and they used these stolen items to commit bank fraud by recruiting women to impersonate the smash-and-grab victims in drive-through bank lanes and cash checks. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in narcotics. Mallory and Grier each admitted that the loss amount from the conspiracy attributable to them is at least $95,000.
The charges to which Mallory and Grier pled guilty carry a minimum sentence of 2 years in prison and a maximum sentence of 30 years, a fine of up to $1 million, and a supervised release term of up to 5 years. Mallory will be sentenced on May 1, 2023, and Grier will be sentenced on April 19, 2023. 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.
Mallory and Grier were two of nine men charged in a 13-count indictment for their roles in the scheme. Keyshawn Arnold, age 25, of Schenectady, New York; Terrell McDonald, age 32, of Troy, New York; and Tyrone Parker, age 40, of Fort Lauderdale, Florida, previously pled guilty for their roles in the indictment. The remaining co-defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 22, of Fort Lauderdale;
- RANDALL TAYLOR, a/k/a “Gucci,” a/k/a “Guwop,” age 37, of Fort Lauderdale;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida; and
- ROBERT NATSON, a/k/a “Big Rob,” age 36, of Fort Lauderdale.
Each of the remaining defendants is charged with conspiracy to commit bank fraud and/or aggravated identity theft, and they are scheduled for trial in federal court in Syracuse on January 24, 2023. The charges in the indictment are merely accusations, and the defendants whose cases remain pending are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
The case is being prosecuted by Assistant United States Attorneys Matthew J. McCrobie and Michael F. Perry, and Special Assistant United States Attorney Paul Tuck, and it was initiated by former Assistant United States Attorney Andrew D. Beaty.
Two Biotech Company Presidents Indicted in Maryland for Securities Fraud SchemesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Nader Pourhassan, age 59 of Lake Oswego, Oregon, and Kazem Kazempour, age 69, of Potomac Maryland, for their roles in schemes to defraud investors in CytoDyn Inc., a publicly traded biotechnology company based in Vancouver, Washington. Pourhassan was CytoDyn’s president and CEO at the time of the alleged fraud. Kazempour is the co-founder, president, and CEP of Amarex Clinical Research LLC (Amarex), a private company with offices in Germantown, Maryland, that managed CytoDyn’s clinical trials. The indictment was returned on December 15, 2022, and unsealed today upon the arrests of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Commissioner Catherine A. Hermsen of the FDA’s Office of Criminal Investigations (OCI); Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division.
“The indictment alleges that these defendants conspired to defraud investors in order to line their own pockets,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Investors must be able to rely on the statements of biotech companies about their products. Executives who knowingly mislead investors must be held accountable.”
“The Department of Justice is committed to protecting the investing public from criminals who would exploit public health crises for personal profit,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These charges also confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-Suite executives who abuse their positions and engage in securities fraud accountable for their actions.”
According to the 14-count indictment, the defendants engaged in conspiracy and schemes to defraud investors through false and misleading representations and material omissions relating to CytoDyn’s development of leronlimab, a monoclonal antibody investigational drug also known as PRO 140, as a potential treatment for human immunodeficiency virus (HIV). Pourhassan and Kazempour allegedly deceived investors about the timeline and status of CytoDyn’s regulatory submissions to the U.S. Food and Drug Administration (FDA) to artificially inflate and maintain the price of CytoDyn’s stock and attract new investors, and for their personal benefit, including by selling their personal shares of CytoDyn stock. Amarex served as CytoDyn’s regulatory agent in interactions with the FDA and Kazempour also served on CytoDyn’s Disclosure Committee, which was responsible for reviewing and approving CytoDyn’s periodic filings with the U.S. Securities and Exchange Commission.
The indictment further alleges that Pourhassan and Kazempour made and caused CytoDyn to make materially false and misleading representations about the timelines by which CytoDyn and Amarex would complete and submit CytoDyn’s biologics license application (BLA) for HIV to the FDA. In April 2020, after CytoDyn and Amarex repeatedly missed publicized timelines, Pourhassan allegedly directed Kazempour and Amarex to submit the BLA – even if it was incomplete – so that Pourhassan and CytoDyn could announce to investors that the BLA had been submitted. Pourhassan and Kazempour allegedly knew that the FDA would refuse to review an incomplete BLA.
After Kazempour and Amarex allegedly submitted the incomplete BLA at Pourhassan’s direction, Pourhassan and CytoDyn misrepresented in a press release that a “complete” BLA had been submitted to the FDA when, in truth and in fact, it had not. Pourhassan then allegedly sold millions of dollars’ worth of CytoDyn stock based on material non-public information, including information about the fact that the BLA was, in truth and in fact, incomplete when submitted.
“Financial crimes like securities fraud may not be violent, but they certainly are not victimless. The two individuals charged today capitalized on the hopes of investors and the public in supporting new treatments for ailments that affect people and their families,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “This indictment sends a message to all sophisticated white-collar criminals that no one is beyond the reach of the FBI and our law enforcement partners and we do not tolerate the greedy intentions of those in such trusted positions.”
“The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including drugs,” said Assistant Commissioner Catherine A. Hermsen of the FDA’s Office of Criminal Investigations (OCI). “The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to biotechnology executives and others that these types of actions will not be tolerated.”
The indictment also alleges that Pourhassan made, and caused CytoDyn to make, materially false and misleading representations about CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results and significance of clinical trials and the status of CytoDyn’s regulatory submissions to the FDA. Pourhassan allegedly knew that, in truth and in fact, leronlimab’s clinical studies failed to achieve the results necessary to obtain any form of FDA approval for use as a treatment for COVID-19 and the results CytoDyn publicly touted were neither statistically significant nor scientifically sound.
“Throughout history, Postal Inspectors have investigated many investment schemes and the one thing that always rings true, where there are large sums of money to be made, scammers are always lurking,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “In this case, these individuals took advantage of the dream of a possible new treatment for HIV and exploited investors, while dashing the hopes of many waiting for a cure. Postal Inspectors and their law enforcement partners will work tirelessly to bring to justice those who break regulatory and investment standards, keeping the investing landscape safe and free of crime for the American public.”
Pourhassan and Kazempour are each charged with one count of conspiracy to commit securities fraud and wire fraud, three counts of securities fraud, and two counts of wire fraud related to the HIV BLA scheme. Pourhassan is separately charged with an additional count of securities fraud, an additional count of wire fraud related to the COVID-19 scheme, and three counts of insider trading. Kazempour is separately charged with one count of making false statements to federal law enforcement agents. Pourhassan and Kazempour made their initial court appearance today in the District of Oregon and the District of Columbia, respectively.
If convicted, Pourhassan and Kazempour each face a maximum penalty of 20 years in prison on each securities fraud and wire fraud count, and five years in prison on the conspiracy count. Kazempour also faces a maximum penalty of five years in prison on the false statement count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. Victims can find case updates and additional information at: https://www.justice.gov/criminal-vns/case/CytoDyn-Inc.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI, FDA-CID, and USPIS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Leo J. Wise, and Trial Attorneys Christopher Fenton and Joshua DeBold and Assistant Chief Michael O’Neill of the Criminal Division’s Fraud Section, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two Biotech CEOs Charged in Securities Fraud SchemesRead the Press Release
A federal grand jury in the District of Maryland returned an indictment that was unsealed today charging two men for their roles in schemes to defraud investors in CytoDyn Inc., a publicly traded biotechnology company (OTCQB: CYDY) based in Vancouver, Washington.
According to court documents, Nader Pourhassan, 59, of Lake Oswego, Oregon, and Kazem Kazempour, 69, of Potomac, Maryland, allegedly engaged in a conspiracy to defraud investors through false and misleading representations and material omissions relating to CytoDyn’s development of leronlimab, a monoclonal antibody investigational drug also known as PRO 140, as a potential treatment for human immunodeficiency virus (HIV). Pourhassan and Kazempour allegedly deceived investors about the timeline and status of CytoDyn’s regulatory submissions to the U.S. Food and Drug Administration (FDA) to artificially inflate and maintain the price of CytoDyn’s stock and attract new investors, and for their personal benefit, including by selling their personal shares of CytoDyn stock.
Pourhassan was CytoDyn’s president and CEO at the time of the alleged fraud. Kazempour is the co-founder, president, and CEO of Amarex Clinical Research LLC (Amarex), a private company with offices in Germantown, Maryland, that managed CytoDyn’s clinical trials, and was CytoDyn’s regulatory agent in interactions with the FDA. Kazempour also served on CytoDyn’s Disclosure Committee, which was responsible for reviewing and approving CytoDyn’s periodic filings with the U.S. Securities and Exchange Commission.
“The Department of Justice is committed to protecting the investing public from criminals who would exploit public health crises for personal profit,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These charges also confirm the department’s commitment, together with our law enforcement partners, to hold corrupt C-Suite executives who abuse their positions and engage in securities fraud accountable for their actions.”
“The indictment alleges that these defendants conspired to defraud investors in order to line their own pockets,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Investors must be able to rely on the statements of biotech companies about their products. Executives who knowingly mislead investors must be held accountable.”
The indictment alleges that Pourhassan and Kazempour made and caused CytoDyn to make materially false and misleading representations about the timelines by which CytoDyn and Amarex would complete and submit CytoDyn’s biologics license application (BLA) for leronlimab’s treatment of HIV to the FDA. In April 2020, after CytoDyn and Amarex repeatedly missed publicized timelines, Pourhassan allegedly directed Kazempour and Amarex to submit the BLA – even if it was incomplete – so that Pourhassan and CytoDyn could announce to investors that the BLA had been submitted. Pourhassan and Kazempour allegedly knew that the FDA would refuse to review an incomplete BLA.
After Kazempour and Amarex allegedly submitted the incomplete BLA at Pourhassan’s direction, Pourhassan and CytoDyn misrepresented in a press release that a “complete” BLA had been submitted to the FDA when, in truth and in fact, it had not. Pourhassan then allegedly sold millions of dollars’ worth of CytoDyn stock based on material non-public information, including information about the fact that the BLA was, in truth and in fact, incomplete when submitted.
“Financial crimes like securities fraud may not be violent, but they certainly are not victimless. The two individuals charged today capitalized on the hopes of investors and the public in supporting new treatments for ailments that affect people and their families,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “This indictment sends a message to all sophisticated white-collar criminals that no one is beyond the reach of the FBI and our law enforcement partners and we do not tolerate the greedy intentions of those in such trusted positions.”
“The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including drugs,” said Assistant Commissioner Catherine A. Hermsen of the FDA’s Office of Criminal Investigations (OCI). “The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to biotechnology executives and others that these types of actions will not be tolerated.”
The indictment also alleges that Pourhassan made, and caused CytoDyn to make, materially false and misleading representations about CytoDyn’s investigation and development of leronlimab as a potential treatment for COVID-19, including the results and significance of clinical trials and the status of CytoDyn’s regulatory submissions to the FDA. Pourhassan allegedly knew that, in truth and in fact, leronlimab’s clinical studies failed to achieve the results necessary to obtain any form of FDA approval for use as a treatment for COVID-19 and the results CytoDyn publicly touted were neither statistically significant nor scientifically sound.
“Throughout history, Postal Inspectors have investigated many investment schemes and the one thing that always rings true, where there are large sums of money to be made, scammers are always lurking,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “In this case, these individuals took advantage of the dream of a possible new treatment for HIV and exploited investors, while dashing the hopes of many waiting for a cure. Postal Inspectors and their law enforcement partners will work tirelessly to bring to justice those who break regulatory and investment standards, keeping the investing landscape safe and free of crime for the American public.”
Pourhassan and Kazempour are each charged with one count of conspiracy to commit securities fraud and wire fraud, three counts of securities fraud, and two counts of wire fraud related to the HIV BLA scheme. Pourhassan is separately charged with an additional count of securities fraud, an additional count of wire fraud related to the COVID-19 scheme, and three counts of insider trading. Kazempour is separately charged with one count of making false statements to federal law enforcement agents. Pourhassan will make his initial court appearance later today in the District of Oregon. Kazempour will make his initial court appearance later today in the District of Columbia. If convicted, Pourhassan and Kazempour each face a maximum penalty of 20 years in prison on each securities fraud and wire fraud count, and five years in prison on the conspiracy count. Kazempour also faces a maximum penalty of five years in prison on the false statements count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Baltimore Field Office, FDA-OCI, and USPIS are investigating the case.
Trial Attorneys Christopher Fenton and Joshua DeBold and Assistant Chief Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Leo Wise for the District of Maryland are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. Victims can find case updates and additional information at: https://www.justice.gov/criminal-vns/case/CytoDyn-Inc.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Human Smuggling Organizers Sentenced to a Combined 100 Months of IncarcerationRead the Press Release
TUCSON, Ariz. – Ramon Villalobos-Lopez, 45, of Mexico, was sentenced last week by United States District Judge Rosemary Márquez to 46 months in prison, followed by three years of supervised release. Judge Márquez previously sentenced co-defendants Javier Garcia-Mondragon, 37, of Mexico, and Daniel Lopez-Guerra, 24, of Mexico, each to a term of 27 months in prison. All three previously pleaded guilty to Conspiracy to Transport and Harbor Illegal Aliens for Profit.
In April 2021, special agents from Homeland Security Investigations (HSI) – Nogales began surveilling vehicles identified as being used for human smuggling and subsequently identified a stash house. On May 14, 2021, a search warrant was executed at the residence where agents found 54 undocumented noncitizens inside. Agents also found notebooks containing written entries indicating hundreds of undocumented noncitizens had been brought to the residence after illegally crossing into the United States. Garcia-Mondragon and Lopez-Guerra were identified as individuals in charge of the stash house, while Villalobos-Lopez was identified as a leader and organizer of the operation.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
HSI – Nogales Office conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 21-1323-TUC-RM
RELEASE NUMBER: 2022-226_Villalobos-Lopez et al.# # #
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.
Three Defendants Sentenced for Scheme to Transport Stolen Catalytic Converters Across State LinesRead the Press Release
SPRINGFIELD, Mo. – Three Rogersville, Mo., and Springfield, Mo., men have been sentenced in federal court for their roles in a scheme to transport tens of thousands of stolen catalytic converters across state lines as part of a multi-million-dollar business.
“These three defendants were the ringleaders of a scheme that impacted thousands of area residents,” said U.S. Attorney Teresa Moore. “We worked closely with a number of our law enforcement partners to shut down their multi-million-dollar operation and bring the perpetrators to justice.”
Evan Marshall, 25, of Rogersville, Cody Ryder, 31, of Springfield, and Camren Joseph Davis, 25, of Rogersville, were sentenced by U.S. District Judge M. Douglas Harpool on Monday, Dec. 19.
Marshall was sentenced to five years and 10 months in federal prison without parole. The court also imposed a $750,000 money judgment against Marshall to be forfeited to the government, ordered Marshall to pay $19,133 in restitution to victims of the conspiracy who law enforcement were able to identify, and forfeiture to the government of the following items that were seized by law enforcement: 33 rifles, 20 scopes, six shotguns, 26 handguns, a Glock sub conversion kit, eight ammunition magazines, a 2011 Ram 3500 one-ton pickup, a 2004 Dodge Ram, a flatbed trailer, two 42-foot gooseneck flatbed trailers, a 16-foot livestock trailer, a 2021 Load N Go utility trailer, a 2007 car hauler trailer, a Volkswagen dune buggy, two Harley Davidson motorcycles, a 2012 Keystone 5th wheel camper, a Caterpillar skid steer, a 2019 Honda Talon SXS 1000 side by side, a 2016 Polaris RZR side by side, a Polaris Ranger 4x4, and 191 catalytic converters.
Ryder was sentenced to two years and five months in federal prison without parole. Davis was sentenced to five years of probation. The court imposed money judgments against Ryder and Davis to forfeit to the government $125,000 each.
“We are pleased to be a part of, and to see the successful ending, to this long-term investigation,” said Springfield Police Chief Paul Williams. “It is good to see the main participants in this crime being held accountable, and the potential for restitution for victims in our community.”
“Our community is painfully aware that catalytic converter thefts are not victimless crimes,” said Acting Special Agent in Charge of the HSI Kansas City Area of Responsibility Josh Armstrong. “While many may consider catalytic converter thefts to be victimless, all too often criminals involved in these types of thefts sometimes funnel the profits gained to organized criminal networks to fund additional, more dangerous crimes.”
On June 16, 2022, Marshall pleaded guilty to one count of transporting stolen property across state lines. Ryder pleaded guilty on June 13, 2022, and Davis pleaded guilty on April 21, 2022, to their roles in a conspiracy to transport stolen property across state lines.
Co-defendants Enx Khoshaba, 30, Leslie Ice, 38, and Eric Kaltenbach, 38, all of Springfield, and Danielle Ice, 34, of Columbia (formerly of Springfield), have pleaded guilty to their roles in the conspiracy to transport stolen property across state lines and await sentencing.
Marshall admitted that he transported stolen catalytic converters, valued at $1 million or more, across state lines from December 2019 to October 2021. Marshall also admitted that he bought tens of thousands of stolen catalytic converters directly from his co-defendants and from other thieves, and sold the stolen catalytic converters for a total of approximately $1 million.
Marshall began selling the catalytic converters to a company in Mountain Home, Arkansas, in the fall of 2019. At that time, Marshall would purchase junk vehicles and sell the vehicles’ parts, including the catalytic converters. In the late fall of 2019, the owners of the Mountain Home company asked Marshall if he would begin purchasing catalytic converters in southwest Missouri and sell to them exclusively. Marshall agreed to do so; in return, they regularly provided Marshall with cash so that Marshall had the funds to purchase a higher volume of catalytic converters. They also provided Marshall with a list of valuable catalytic converters. By December 2019, Marshall had mostly ceased buying junk vehicles and scrapping them out for parts, and instead began purchasing already-detached catalytic converters from scrap yards and individual sellers.
By January 2020, the owners of the Mountain Home company were wiring Marshall hundreds of thousands of dollars on a monthly basis so that Marshall could purchase a higher volume of detached catalytic converters.
By December 2019, Marshall had also enlisted Davis to work for him and another company, which Marshall also established in December 2019. Davis’s job was to purchase catalytic converters using cash that Marshall provided him. During that time period, Marshall provided Davis with hundreds of thousands of dollars in cash to purchase catalytic converters on Marshall’s behalf. As part of the arrangement, Davis exclusively sold the catalytic converters he purchased to Marshall. On at least one occasion, Marshall provided Davis with $40,000 in cash for the purchase of catalytic converters on Marshall’s behalf.
Davis admitted that he bought at least 1,500 stolen catalytic converters from various thieves and sold them to Marshall for a total of approximately $250,000.
In February 2021, Marshall enlisted Ryder to work for him and his company. As with Davis, Ryder’s job was to purchase catalytic converters using cash that Marshall provided him. From February 2021 through October 2021, Marshall provided Ryder with hundreds of thousands of dollars in cash to purchase catalytic converters on Marshall’s behalf. As part of the arrangement, Ryder exclusively sold the catalytic converters he purchased to Marshall. On at least one occasion, Marshall provided Ryder with $10,000 in cash for the purchase of catalytic converters on Marshall’s behalf.
Ryder admitted that he bought at least 1,500 stolen catalytic converters from thieves and sold them to Marshall for an aggregate amount of approximately $250,000.
Many of the catalytic converters that Davis and Ryder purchased with the cash Marshall provided them were stolen, and Marshall knew at the time that many of them were stolen. Marshall paid Davis and Ryder an agreed-upon percentage amount over their purchase price for the catalytic converters, less the amount of cash Marshall had fronted them.
From December 2019 through October 2021, in addition to utilizing Davis and Ryder as buyers of stolen catalytic converters, Marshall also purchased stolen catalytic converters directly from thieves. In July 2020, a Springfield, Mo., police detective contacted Marshall regarding the purchase of catalytic converters from individuals known to be thieves. Despite being put on notice that he was purchasing stolen catalytic converters, Marshall continued to purchase stolen catalytic converters, including from at least one of the individuals identified by the detective.
Marshall admitted that he knowingly purchased stolen catalytic converters from co-defendants Davis, Ryder, Ice, Kaltenbach, Khoshaba, and at least six other thieves. Marshall transported and sold almost all of the catalytic converters, including the stolen catalytic converters, to the owners of the Mountain Home business.
Marshall, Davis, Ryder and others loaded the catalytic converters, including the stolen catalytic converters, into bins that were placed on trailers at Marshall’s residence. They hauled the trailers, which each contained between 800 and 1,200 catalytic converters, many of which were stolen, from Rogersville to Mountain Home. Marshall transported catalytic converters from Rogersville to Mountain Home approximately every two weeks from December 2019 through October 2021.
This case is being prosecuted by Assistant U.S. Attorneys Shannon T. Kempf and Anthony Brown. It was investigated by the Springfield, Mo., Police Department, Homeland Security Investigations, IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Webster County, Mo., Sheriff’s Department, the Missouri Department of Revenue and the Greene County, Mo., Prosecuting Attorney.
Organized Crime Drug Enforcement Task Forces
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.
Theft of Firearms from Stores in Youngsville and Benton, Louisiana Results in Sentence of 22+ Years in Federal Prison for Pineville ManRead the Press Release
LAFAYETTE, La. – Salih Reed, 27, of Pineville, Louisiana, has been sentenced by United States District Judge Dee D. Drell for the burglary of two firearms stores in Benton and Youngsville, Louisiana, United States Attorney Brandon B. Brown announced.
Salih Reed was sentenced to 270 months (22 years, 6 months) in prison, followed by 6 years of supervised release. Reed was also ordered to pay restitution in the amount of $38,148.07. Reed pleaded guilty on August 4, 2022 to two counts of theft of firearms from a federal firearms licensee.
The charges in this case stem from two thefts from firearms stores in Louisiana. On or about September 1, 2019, Reed stole 54 firearms from the premises of Sentry Defense located in Youngsville. Again, on November 14, 2021, Reed and Jessica Moore stole 62 firearms from the premises of Guns-N-Ammo, a licensed firearms dealer located in Benton, Louisiana.
“Salih Reed not only broke the law by stealing numerous firearms from two stores in Louisiana, but he caused multiple stolen firearms to be illegally transported to other cities in the United States,” said U.S. Attorney Brandon B. Brown. “The cooperation between law enforcement agencies, both federal and those in Louisiana and other states, are what led to the arrest of these individuals. The goal of the Department of Justice is to help reduce violent crime and cases like these are where this begins. We will continue working with our federal and local partners to keep violent criminals off the streets.”
“This sentencing sends a strong message to gun traffickers that ATF will use every available resource to prevent and dismantle the flow of illegal firearms into our communities,” said ATF Special Agent in Charge Kurt Thielhorn. “ATF will continue to collaborate with our law enforcement partners to investigate and seek prosecution of these cases to the fullest extent of the law in order to protect our citizens.”
Jessica Moore, 24, of Alexandria, was involved in the robbery of the Guns-N-Ammo store in Benton, Louisiana and pleaded guilty on August 24, 2022 to one count of theft of firearms from a federal firearms licensee. Judge Drell sentenced Moore to time served, which began at the time of her arrest in February 2021, followed by 2 years of supervised release. She was also ordered to pay restitution in the amount of $2,500.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Youngsville Police Department, Lafayette Parish Sheriff’s Office, Rapides Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Los Angeles Police Department, and prosecuted by Assistant U.S. Attorney Daniel J. McCoy.
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The U.S. Attorney’s Office for the Middle District of Georgia Collects $6.8 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
ALBANY, Ga. – U.S. Attorney Peter D. Leary announced today that the U.S. Attorney’s Office for the Middle District of Georgia collected $6,814,729.05 in criminal and civil actions in Fiscal Year 2022. Of this amount, $3,382,503.60 was collected in criminal actions and $3,432,225.45 was collected in civil actions.
Further, the Middle District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $804,200 in cases pursued jointly by these offices. Of this amount, $19,200 was collected in criminal actions and $785,000 was collected in civil actions.
“Protecting the federal treasury and recovering funds on behalf of the U.S. taxpayer are core priorities for our office. We appreciate the partnership we have law enforcement agencies as well as the hard work of our criminal and civil Assistant U.S. Attorneys to successfully hold those who commit financial crimes accountable,” said U.S. Attorney Peter D. Leary.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
For more information about the Crime Victims Fund, please visit https://ovc.ojp.gov/about/crime-victims-fund.
Syracuse Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
SYRACUSE, NEW YORK – Cedric L. Hudson, Jr., age 36, of Syracuse, pled guilty today to possessing a firearm and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Acting New York State Police Superintendent Steven A. Nigrelli.
Cedric Hudson was arrested in the Town of Dewitt, New York near Carrier Circle on October 17, 2022, when New York State Troopers observed him driving erratically. He was stopped near a local gas station when it was learned his driver’s license was suspended and a tow truck was called to remove his car. A search of the vehicle prior to it being towed located a .45 caliber semiautomatic handgun and seven rounds of .45 caliber ammunition in a magazine clip. Hudson was prohibited from possessing a firearm or ammunition having been previously convicted in Onondaga County Court of a felony drug offense in 2014. When arrested on October 17, 2022, Cedric Hudson was also the subject of a parole violation warrant from the state of North Carolina.
Sentencing is scheduled for April 20, 2022, in Syracuse, New York, at which the defendant faces a maximum sentence of 15 years in prison, a fine of up to $250,000,00, and a term of supervised release of up to 3 years. 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 case against Cedric L. Hudson, Jr. was adopted for federal prosecution after a joint review by the Onondaga County District Attorney’s Office, the United States Attorney’s Office, the FBI, and the New York State Police as part of gun violence reduction efforts in Onondaga County.
This case is being investigated by Federal Bureau of Investigation (FBI), and the New York State Police-Community Stabilization Unit (NYSP-CSU), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant U.S. Attorney Richard Southwick as 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.
Suburban Houston man sentenced for sex trafficking minorsRead the Press Release
HOUSTON – A 26-year-old Richwood resident has been ordered to federal prison for forcing teenagers to engage in commercial sex, announced U.S. Attorney Alamdar S. Hamdani.
Charlie James Jones pleaded guilty Nov. 26.
Today, U.S. District Judge George C. Hanks sentenced him to a total 190-month-term of imprisonment. At the hearing, the court heard that in addition to the girl he pleaded guilty to trafficking, he also caused several other minors to engage in commercial sex. In handing down the prison term, the court noted that Jones had a manipulative personality both emotionally and physically and that what he did was horrific. Jones was further ordered to pay $7,200 in restitution to the victim and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Jones will also be ordered to register as a sex offender.
Jones pleaded guilty to trafficking one girl in and around Angleton in July 2015, but also admitted to doing the same to another minor.
On one occasion, he had taken the girls, then ages 16 and 17, to a local motel. He photographed the minors in thong underwear and posted the images online in ads promoting them for commercial sex.
Over the course of several subsequent weekends, Jones forced the younger victim to engage in commercial sex and took all the proceeds. If she resisted, Jones became violent with her by grabbing her throat and pulling her hair. He also forced himself on her sexually.
The other female was allegedly Jones’ girlfriend. However, he also made her engage in commercial sex and was seen committing acts of violence against her.
Jones has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Sherri L. Zack prosecuted the case.
St. Louis Man Accused of Manufacturing Fake Vehicle Temporary TagsRead the Press Release
ST. LOUIS – A man from St. Louis was arrested Thursday on an indictment that accuses him of manufacturing and selling fake temporary vehicle license tags.
Mario C. Cooks, 34, was indicted in U.S. District Court in St. Louis Wednesday on six felony counts of fraudulent transfer of an authentication feature. The indictment says Cooks used a fake watermark and seal of the Missouri Department of Revenue on temporary motor vehicle license tags produced between June 28 and December 6.
In a court-approved search Thursday morning of Cooks’ home in the 5300 block of Claxton Avenue, the United States Secret Service, St. Louis Metropolitan Police Department, St. Charles Police Department and the Missouri Department of Revenue seized computer equipment, counterfeit temporary motor vehicle documents and counterfeit motor vehicle titles.
In an affidavit filed to obtain the search warrant, an agent of the U.S. Secret Service said the investigation began when police in St. Charles learned that Cooks was offering fraudulent temporary motor vehicle tags as well as a fraudulent license plate that appeared to have been issued by the State of Missouri to a licensed car dealership. An undercover police officer then purchased a series of fraudulent temporary motor vehicle tags and automobile insurance cards from Cooks, the affidavit says.
“The people using these temporary tags are not just those trying to avoid paying their taxes. Some are using them to conceal their possession of stolen vehicles or to thwart their identification while committing crimes,” said St. Charles Police Chief Ray Juengst. “This is a great example of collaboration between agencies that will have a positive impact throughout the metro area.”
“This arrest disrupted a sophisticated criminal enterprise designed to defraud the State of Missouri,” said Thomas Landry, Special Agent in Charge of the U.S. Secret Service’s St. Louis Field Office. “I commend the exceptional work of our partners and emphasize our agency’s ongoing commitment to combatting fraud at every level.”
Cook’s federal charge carries a penalty of up to five years in prison, a $250,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Charles Police Department, the St. Louis Metropolitan Police Department, the U.S. Secret Service and the Missouri Department of Revenue. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Springfield Woman Pleads Guilty to Reselling Stolen Goods and Money LaunderingRead the Press Release
BOSTON – A Springfield woman pleaded guilty in federal court in Springfield on Dec. 16, 2022 to reselling stolen goods on eBay and money laundering.
Mimi Mai, 49, pleaded guilty to one count of interstate transportation of stolen goods, four counts of money laundering, and two counts of engaging in monetary transactions in property derived from specified unlawful activity. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 7, 2023.
Mai owned and operated a pawn shop in Holyoke, Mass., called EZ Exchange. Mai purchased stolen goods from people she knew had stolen the items and resold them on eBay at a price well above what she had paid the sellers. The stolen goods included a variety of household goods, including power tools, electronic devices, sunglasses, and beauty and personal care products. Between 2018 and 2021, Mai earned more than $2.1 million from the sale of items she had listed for sale as “new” on eBay. Mai then used her eBay earnings to buy property in Florida.
The charges of interstate transportation of stolen goods and engaging in monetary transactions in property derived from specified unlawful activity provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of money laundering provides for a sentence of at least 20 years in prison, 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 other statutory factors.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; and Holyoke Police Chief David Pratt made the announcement today. Assistance was provided by the Springfield Police Department, New England State Police Information Network and investigators from Home Depot, CVS, Target and Stop & Shop. The case is being prosecuted by Assistant U.S. Attorney Catherine Curley of Rollins’ Springfield Branch Office.
Sparks Man Sentenced to Prison for Unlawful Possession of FirearmsRead the Press Release
RENO – A Sparks resident was sentenced on Monday by Chief U.S. District Judge Miranda M. Du to 77 months in prison followed by three years of supervised release for unlawful possession of three firearms after prior felony convictions.
According to court documents, David Lee Wiley Jr., 41, pleaded guilty in August 2022 to felon in possession of firearms. He admitted that on February 4, 2022, he possessed three firearms, which included a rifle, a stolen Glock 30S .45 caliber pistol, and a 9mm IWI UZI pistol with a loaded, high-capacity magazine. Wiley is prohibited by law from possessing a firearm due to prior felony convictions in Washoe County, including convictions for Ex-Felon in Possession of a Firearm and Possession of a Controlled Substance for the Purpose of Sale.
U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the Sparks Police Department and ATF. Assistant U.S. Attorney Andrew Keenan prosecuted the case.
The case was brought as 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. For more information about PSN, visit www.justice.gov/usao-nv.
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South Bend Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND –Joshua Campbell, 32 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to possession of child pornography, announced United States Attorney Clifford D. Johnson.
Campbell was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, in April 2019, Campbell was on parole for child molesting when he downloaded images and videos of child pornography. Some of the images or videos were of minors under the age of 12. Campbell’s sentence reflects consideration of his prior child molesting conviction.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Indiana State Police. The case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
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Shelton Man Sentenced to 66 Months in Federal Prison for Trafficking Narcotics in BridgeportRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANTHONY SMALL, also known as “Whompy,” 31, of Shelton, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 66 months of imprisonment, followed by four years of supervised release, for trafficking narcotics in Bridgeport.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Small’s brother, Antonio Small, led an organization that was distributing large quantities of heroin, fentanyl and crack cocaine on the west side of Bridgeport.
Antonio Small, Anthony Small and their associates used a residence on Poplar Street in Bridgeport to store, process and package narcotics.
The group was also involved in violence. Intercepted calls revealed that Antonio Small kept a firearm at the residence, and that he possessed it while looking to retaliate against someone he believed had wronged him. On October 31, 2018, a close associate of Antonio Small was shot and killed in the vicinity of the Poplar Street residence. A female who was close by was also killed during the incident.
In addition, one of the Smalls’ co-conspirators, while in possession of drugs that he intended to distribute, engaged police in a car chase and struck and killed another motorist and maimed two pedestrians.
Anthony Small has been detained since his arrest on January 15, 2019. On January 21, 2020, he pleaded guilty to one count of conspiracy to distribute, and to possess with the intent to distribute, controlled substances, and three counts of possession with intent to distribute heroin.
Antonio Small pleaded guilty and, on July 15, 2022, was sentenced to 25 years of imprisonment.
Anthony Small also has pending state charges stemming from a shooting in Stratford in January 2019.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Shasta County-Based “Joined Inc.” CEO Sentenced to 18 Months in Retirement Fund Embezzlement SchemeRead the Press Release
SACRAMENTO, Calif. — Maurice “Buddy” Shoe, 59, formerly of Palo Cedro, was sentenced to 18 months imprisonment for embezzlement from his employees’ retirement funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Shoe was the CEO of Joined Inc., a now defunct corporation based in Shasta County that provided student recruiting and retention services to Christian colleges and universities throughout the United States. The company provided a 401(k) retirement benefit plan for its employees. From February through November 2015, Shoe embezzled approximately $124,902.03 from the employee retirement benefit fund, protected under the Employee Retirement Income Security Act of 1974 (ERISA), by withholding funds from employees’ paychecks for 401(k) contributions, but failing to forward those contributions to the 401(k) plan. Shoe was also ordered to pay back restitution to the victims of the fraud.
This case is the product of an investigation by the U.S. Department of Labor – Employee Benefits Security Administration, San Francisco Regional Office. Assistant U.S. Attorneys Audrey Hemesath and Kate Lydon are prosecuting the case.
Sextortion Crimes on the Increase: Talk to Your Kids NowRead the Press Release
PITTSBURGH – The United States Attorney’s Office for the Western District of Pennsylvania, in partnership with Homeland Security Investigations – Philadelphia (HSI), the Federal Bureau of Investigation – Pittsburgh (FBI), and the National Center for Missing and Exploited Children (NCMEC), is issuing a public safety alert regarding an alarming increase in the online exploitation of children and teens.
Reports of the online enticement of minors have dramatically spiked in recent months—including reports of sextortion. “Sextortion”—a term that combines the words “sex” and “extortion”—occurs when an individual, often a child, is threatened or blackmailed, usually online, by a person demanding sexual content (photos/videos) or money from the child against his or her will. This may happen when a child or teen shares an image with someone they thought they knew or trusted, but the individual has gained the child’s trust through deceit, coercion, or deception (and sometimes, predators falsely claim that they have obtained photos that the child may have shared with someone else). Once predators acquire the images, they threaten to release the compromising material unless the victim sends additional images, money, or gift cards. Often the predators demand payment through a variety of peer-to-peer payment applications. In many cases, however, predators release the images even if payments are made. The shame, fear, and confusion that victims experience when they are caught in this cycle often prevents them from asking for help or reporting the abuse.
Sextortion schemes occur in online environments where young people feel most comfortable—using common social media sites, gaming sites, or video chat applications that feel familiar and safe. On these platforms, online predators often use fake female accounts and target minor males between 14- and 17-years old but victims as young as 10 years old have been interviewed.
RESOURCES FOR TALKING TO YOUR CHILD
Information, resources, and conversation guides for talking with your child are available at fbi.gov/StopSextortion.
WHAT IF YOU OR YOUR CHILD IS A VICTIM?
HSI and the FBI encourage the public to report suspected child predators and any suspicious activity. You can contact HSI through its toll-free tip line at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock. From outside the United States and Canada, callers should dial 802-872-6199. Hearing impaired users may call TTY 802-872-6196.
Contact your local FBI field office (in Western Pennsylvania and West Virginia at 412-432-4000), call 1-800-CALL-FBI, or report it online at tips.fbi.gov.
The National Center for Missing and Exploited Children has outlined steps parents and young people can take if they or their child are a victim of sextortion, including:
• Remember, the predator is to blame, not your child or you.
• Get help before deciding whether to pay money or otherwise comply with the predator. Cooperating or paying rarely stops the blackmail and continued harassment.
• REPORT the predator’s account via the platform’s safety feature.
• BLOCK the predator and DO NOT DELETE the profile or messages because that can be helpful to law enforcement in identifying and stopping them.
• Let NCMEC help get explicit images of you off the internet.
• Visit org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit cybertipline.org to report to us for help with the process.
• Ask for help. This can be a very complex problem and may require help from adults or law enforcement.
• If a victim does not feel that they have adults in their corner, the child can reach out directly to NCMEC for support at gethelp@ncmec.org or call NCMEC at 1-800-THE-LOST.
LAW ENFORCEMENT WORK IN THIS DISTRICT
Reported sextortion can be investigated and often prosecuted. For example, the FBI – Pittsburgh Child Exploitation and Human Trafficking Task Force investigated Markell Smith who used many different Instagram usernames to threaten and extort minor females online in 2018 and 2019. On July 6, 2022, U.S. District Judge William S. Stickman IV sentenced Smith to 17-and-a-half years in prison. See https://www.justice.gov/usao-wdpa/pr/pittsburgh-man-sentenced-17-years-sexual-exploitation-minor. Similarly, Homeland Security Investigations, the Pennsylvania Office of the Attorney General-Child Predator Unit, and various local law enforcement partners investigated Jacob Kolonis for threatening and extorting numerous minors within the Western District of Pennsylvania and Ohio in late 2019 through early 2020. Kolonis extorted his victims by falsely telling them he had obtained nude images of his minor victims; using this leverage, Kolonis extorted his victims into creating sexually explicit material over Snapchat. On Aug. 4, 2022, U.S. District Judge Robert J. Colville sentenced Kolonis to 20 years in prison for his online exploitation of the minors. See https://www.justice.gov/usao-wdpa/pr/judge-sentences-southwest-pa-man-20-years-prison-production-and-attempted-production.
“It is vitally important to provide parents and caregivers the information they need to prevent this crime before it happens and to help victims come forward if it does,” said U.S. Attorney Cindy K. Chung. “We will continue to partner with federal, state and local law enforcement to protect children from sexual exploitation in all its despicable forms.”
“HSI has seen a disturbing rise in sextortion cases recently. I want every parent and child to know that HSI has a unique array of skilled agents and resources working diligently as we take a victim-centered approach to these atrocious crimes,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “These cases are incredibly challenging to investigate and therefore require immediate law enforcement attention to identify the predators behind these schemes. Please do not succumb to these predators alone. Reach out to our tip line or go to our website to get help.”
"These criminals have become very good at luring in and extorting young children,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “They try to hide behind the anonymity of the internet, but the FBI is not going to let them prey on our children. In addition to community education, we want adults to talk with kids about the dangers of sextortion and sending pictures or other information to people they don’t know. Together, we can all work to keep our most vulnerable citizens safe.”
“The sexual exploitation of children is a deplorable crime. HSI special agents will continue to exhaust every resource to identify, locate, and apprehend predators to ensure they face justice,” said Steve K. Francis, HSI Acting Executive Associate Director. “Criminals who lurk in platforms on the internet are not as anonymous as they think. HSI will continue to leverage cutting-edge technology to end these heinous acts.”
Schenectady Felon Sentenced for Illegally Possessing Loaded FirearmRead the Press Release
ALBANY, NEW YORK – Thomas Hendricks Jr., age 41, of Schenectady, New York, was sentenced today to 46 months in prison for illegally possessing a loaded pistol as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previously entered guilty plea, Hendricks admitted that on June 20, 2021, he brandished a 9mm semi-automatic pistol while live-streaming on his Facebook account. He further admitted that on June 28, 2021, he possessed the same loaded pistol in his residence in the city of Schenectady, at which time it was seized by the Schenectady Police Department pursuant to a search warrant. Two prior felony convictions, for criminal possession of a weapon and aggravated cruelty to animals, prevented Hendricks from legally possessing the firearm in New York.
United States District Mae A. D’Agostino also ordered Hendricks to serve a 3-year term of supervised release following his release from prison.
This case was investigated by ATF and the Schenectady Police Department with assistance provided by the Schenectady County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is 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.
Repeat Evansville Felon Sentenced to 2 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
EVANSVILLE- Reko D. Levels Jr., 26, of Evansville, was sentenced to 2 years in federal prison for illegally possessing a firearm.
According to court documents, on September 20, 2021, Levels was wanted on an active felony warrant in an unrelated state case. Evansville Police Department Officers arrested Levels while he was sitting outside his Evansville apartment complex. Officers initiated a search and found a loaded 9mm pistol in Levels’ right pant pocket. The pistol had been reported as stolen on September 4, 2021.
In an interview with law enforcement officers on September 23, 2021, Levels admitted that he knew the gun was stolen and that he intended to return it to the lawful owner but was arrested before he had the chance to do so.
At the time of his arrest, Levels had been previously convicted in the United States District Court for the Northern District of Florida for stealing a firearm from a licensed dealer, aiding and abetting, and possession of a firearm while under indictment in another case. Levels was also convicted of Criminal Recklessness in Vanderburgh County in 2018.
“This defendant has continued to unlawfully arm himself, undeterred by even a prior federal gun crime conviction,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Repeat armed criminals drive the violence on our streets and holding them accountable will make our communities safer. The U.S. Attorneys Office will continue to work closely with our law enforcement partners to protect our communities from armed criminals.”
“ATF and the Evansville Police Department work side by side, day in and out, to investigate and arrest those responsible for violence in our community,” stated Daryl S. McCormick, Special Agent in Charge for ATF’s Columbus Field Division. “Levels has demonstrated, through his history of stealing firearms and then possessing firearms as a convicted felon, that he poses a threat to public safety that we are all working to end.”
ATF investigated the case with the valuable assistance of the Evansville Police Department. The sentence was imposed by U.S. District Judge Richard L. Young. Judge Young also ordered that Levels be supervised by the U.S. Probation Office for 1 year following his release from federal prison.
U.S. Attorney Myers thanks Assistant United States Attorney, Matthew B. Miller who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Queens Resident Sentenced to over 12 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Earlier today in federal court in Brooklyn, Parveg Ahmed was sentenced by United States District Judge Ann M. Donnelly to 153 months’ imprisonment and 15 years supervised release for one count of attempting to provide material support or resources to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization. The defendant pleaded guilty to the charge in June 2018.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Ahmed nearly fulfilled his goal to join a group of violent terrorists who have killed numerous innocent victims, including American citizens, and expressed that he planned to fight against ‘the West’ if he made it to Syria,” stated United States Attorney Peace. “Today’s sentence demonstrates that a significant prison sentence is the end result for radicalized individuals pursuing a misguided path of terror and violence.”
Mr. Peace thanked the FBI’s Joint Terrorism Task Force for its exemplary work on the case.
“The defendant willingly traveled overseas in an attempt to join ISIS so he could participate in the group’s violent acts of terror. The FBI New York Joint Terrorism Task Force, along with our law enforcement partners, remain unwavering in our commitment to protect the American people. As today’s sentence should demonstrate to all, we will continue to ensure those wishing to partake in acts of terror face the consequences in the criminal justice system.”
“An American citizen, Ahmed traveled to the Middle East with the sole intention of betraying his own country by taking up arms against it in the name of ISIS,” stated NYPD Commissioner Keechant Sewell. “Identifying and stopping individuals like this before they can harm the United States and our people are the ideals upon which the Joint Terrorism Task Force was established. I commend and thank the investigators from the NYPD, FBI, and all of our partner agencies on the nation’s first JTTF, here in New York City, for their tireless work on this important case.”
As detailed in publicly filed court documents, Ahmed is a United States citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, Ahmed attempted to travel to Syria to join ISIS. Ahmed was apprehended in a Middle Eastern country during his attempted travel to ISIS-controlled territory.
Previously, Ahmed had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for his personal computer, and learned that he had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a United States-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about September 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of solicitation to commit murder for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Ahmed was deported to the United States on August 28, 2017, where he was arrested at John F. Kennedy International Airport. Subsequent review of electronic devices found in Ahmed’s possession when he was detained attempting to travel to Syria also revealed draft messages explaining that the defendant planned to join ISIS in Syria to wage violent jihad and expressing farewell to the defendant’s family members. Specifically, a draft message stated “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Meredith A. Arfa are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and Trial Attorney John Cella of the National Security Division’s Counterterrorism Section.
The Defendant:
PARVEG AHMED
Age: 27
Ozone Park, QueensQueens Man Sentenced to 17 Years in Prison for Sexual Exploitation of a Child on the InternetRead the Press Release
Earlier today, in federal court in Central Islip, Kevin Rizo was sentenced by United States District Judge Joanna Seybert to 17 years in prison for sexually exploiting a minor. Rizo will also be required to register as a sex offender upon his release from prison. Rizo pleaded guilty to the charge in September 2021.
Breon Peace, United States Attorney for the Eastern District of New York and Ivan J. Arvelo, Special Agent in-Charge, Homeland Security Investigations, New York (HSI), announced the sentence.
“The defendant’s sextortion is unconscionable and extremely harmful to the young boy who should be commended for bravely coming forward to law enforcement to stop this predator,” stated United States Attorney Peace. “Today’s substantial prison sentence will protect the community here and elsewhere from Rizo, who trolled the Internet for more than 100 boys to entice and terrorize. I urge parents and caregivers to have frank conversations with their children about the dangers of communicating online with strangers who can pretend to be anyone or anything while making inappropriate requests for photos and videos.”
“Rizo preyed on children utilizing the internet and social media applications – using fear to extort them to do his bidding. Sextortion is a growing threat for children online and this significant sentence sends a clear message that those who attempt to exploit and harm children will face serious consequences,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations in New York.
In December 2016, a 14-year-old boy and his parents reported to Nassau County police officers that on the night of November 30, 2016 to December 1, 2016, the victim had been contacted by Rizo on Instagram, who was using the moniker “Alyssa,” and pretending to be a teenage girl. After the victim complied with “Alyssa’s” request to see explicit photographs and videos of the victim, the defendant threatened to share those photographs and videos with the victim’s friends unless the victim provided even more explicit material. On that same day, several friends of the victim received nude photos of the teen from Rizo.
The government’s investigation revealed that Rizo had communicated with at least 130 boys and that most of them sent him nude images and videos of themselves at his behest. After Rizo received the images and videos, he threatened to disseminate them to others, including the boys’ friends and family members, if more images and videos were not sent.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
KEVIN RIZO (also known as “Alyssarxx,” “Alysaflxx,” Alyssa.rxx,” and “Ally.love.15”)
Age: 33
Flushing, New YorkE.D.N.Y. Docket No. 17-CR-283 (JS)
Postal Employee Sentenced for Desertion of MailRead the Press Release
United States Attorney Steven Russell announced that Matthew J. Doherty, II, 36, of Omaha, Nebraska, was sentenced on December 19, 2022, in federal court in Omaha for Desertion of Mail. United States Magistrate Judge Michael D. Nelson sentenced Doherty to a two-year term of probation.
Between February 28, 2022, through March 9, 2022, Doherty, who was then employed as the mail carrier in Tekamah, Nebraska, took possession of mail for the purposes of delivering it to intended recipients. Instead of delivering all of the mail or returning it to the post office or to another authorized Postal Service employee, Doherty discarded at least 46 pieces of mail in a dumpster in Tekamah.
This case was investigated by the United States Postal Service – Office of the Inspector General.
Philadelphia Man Charged for Throwing Three Incendiary Bombs at Residences in Northeast PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Mattis, 49, of Philadelphia, PA, was arrested and charged by Indictment with three counts of possession of an unregistered destructive device, charges which stem from three incidents that occurred in June and July 2022 in Northeast Philadelphia. Mattis made his initial appearance in federal court on December 15, 2022, and was ordered detained pending further proceedings.
The Indictment alleges that on two separate occasions on June 30, 2022, and again on July 1, 2022, Mattis lit an incendiary device commonly known as a Molotov cocktail, and threw it onto the porch of three different residences in the Tacony section of Philadelphia. On all three occasions, the weapon thrown by Mattis ignited and started a fire on the porch of each residence. Two of these incidents occurred in the middle of the night on June 30, 2022, and the last occurred during the evening hours on July 1, 2022. ATF examined evidence left at each scene and determined that the weapons allegedly used by the defendant were incendiary bombs as that term is defined under federal law.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of 30 years in prison, a three-year period of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria Man Sentenced to 152 Months in Prison for Possession Intent to Distribute and Federal Firearm OffensesRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Daryl G. McGhee, 33, of the 6000 block of North Hamilton, was sentenced on December 16, 2022, to a total of 152 months in federal prison, to be followed by six years of supervised release. McGhee’s sentencing follows two separate jury trials in February 2021 and August 2022, resulting in convictions for drug trafficking and firearms offenses. Specifically, McGhee was sentenced to concurrent 92-month sentences for possession of cocaine with intent to distribute and possession of a firearm by a felon. Additionally, McGhee was sentenced to a 60-month term of imprisonment for possessing a firearm in furtherance of a drug trafficking crime, to be served consecutively to the 92-month sentences.
At the sentencing hearing, the government presented evidence that on February 13, 2021, Peoria Police were dispatched to McGhee’s residence at approximately 4:30 a.m. on a report of domestic violence. Upon arrival, police learned that McGhee had left the residence out the back door on foot in the bitter sub-zero temperatures and was in possession of a firearm. An officer then tracked McGhee’s footprints in the freshly fallen snow and located him crouched down and hiding in an evergreen bush several blocks from his home. McGhee was not wearing gloves or a winter coat. He was in possession of a cell phone and $381 cash. After McGhee was arrested, a Peoria Police K-9 unit was utilized to search the surrounding area and the service dog located a leather shoulder satchel concealed under a dumpster alongside McGhee’s footprints in the snow. The satchel contained 140 grams of cocaine and a 9mm semi-automatic DVC Tactical model 1911 handgun loaded with 17 rounds of ammunition. A round of ammunition was located in the chamber of the gun, indicating it was ready to be fired. The government also introduced an image from McGhee’s social media account where he was wearing the leather bag, as well as a video from social media where he was depicted brandishing the DVC 9mm handgun.
Also at the hearing, U.S. District Judge Joe Billy McDade found that McGhee’s offense and criminal history involving acts of violence and firearms reflected a lack of self-control and disrespect for the law and other people.
McGhee has remained in the custody of the U.S. Marshals Service throughout the pendency of the case. At sentencing, McGhee faced statutory penalties of up to 30 years’ imprisonment, a maximum $2,000,000 fine, and no less than six years of supervised release for possession of cocaine with intent to distribute; up to 10 years’ imprisonment and three years of supervised release for possession of a firearm as a felon; and not less than five years’ imprisonment for possessing a firearm in furtherance of a drug trafficking crime, to be served consecutively to any other sentences imposed.
“The U.S. Attorney’s Office and its law enforcement partners are committed to aggressively prosecuting armed drug traffickers that pose a threat to the safety of our communities,” said Assistant U.S. Attorney Ronald L. Hanna.
The case investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department. Assistant U.S. Attorneys Ronald L. Hanna and Douglas F. McMeyer represented the government at trial.
The case against McGhee 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.
Penn Hills Felon Charged with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics trafficking and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Harry E. Duncan, age 35, formerly of Penn Hills, Pennsylvania, as the sole defendant.
According to the Indictment, on or about Nov. 18, 2022, in the Western District of Pennsylvania, Duncan was found to have possessed with intent to distribute quantities of cocaine base (in the form commonly known as “crack”), fentanyl, and cocaine, all of which are Schedule II controlled substances Additionally, Duncan was found in possession of a Winchester Model 1300 defender 12-gauge, pump action shotgun; 41 rounds of 12-gauge ammunition with bandolier; 38 rounds of .45 auto ammunition; 144 total rounds of 9mm ammunition; 50 rounds of .40 S&W ammunition; and 337 rounds of 5.56 cal. ammunition with metal ammunition container. As a convicted felon, it is unlawful for Duncan to be in possession of firearms and ammunition.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio Felon Charged with Violating Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA - A resident of Columbus, Ohio, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal narcotics trafficking and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Lester Rondale Moore as the sole defendant.
According to the Indictment, on or about Oct. 10, 2022, Moore traveled from his primary residence in Columbus, Ohio, to an apartment complex in Monroeville, Pennsylvania, where he was found in possession of, and with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl, and a quantity of cocaine base (in the form commonly known as crack) and cocaine. Moore was further charged with possession of a loaded Smith and Wesson 9 mm pistol. As a convicted felon, Moore is prohibited from possessing firearms or ammunition.
As to the drug charge, the law provides for a total sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. As to the firearms charge, the law provides for a total sentence of not more than 15 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Moore is currently being held at Allegheny County Jail on an Ohio state parole violation detainer, pending his arraignment on the federal charges.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Man Sentenced to over 12 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A New York man was sentenced today to 12 years and nine months in prison followed by 15 years of supervised release for attempting to provide material support or resources to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization.
Parveg Ahmed, 27, of Queens, pleaded guilty to one count of attempting to provide material support or resources to a foreign terrorist organization in June 2018. According to court documents, Ahmed is a U.S. citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, Ahmed attempted to travel to Syria to join ISIS. Ahmed was apprehended in a country bordering Syria during his attempted travel to ISIS-controlled territory.
Previously, Ahmed had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, law enforcement agents obtained a search warrant for his personal computer, and learned that he had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki, a U.S.-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula, who was killed on or about Sept. 30, 2011, and Abdullah el-Faisal, a Jamaican-born cleric, who was found guilty in the United Kingdom of solicitation to commit murder for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Ahmed was deported to the United States on Aug. 28, 2017, where he was arrested at John F. Kennedy International Airport. Subsequent review of electronic devices found in Ahmed’s possession when he was detained attempting to travel to Syria also revealed:
- Messages explaining that the defendant planned to join ISIS in Syria to wage violent jihad and expressing farewell to the defendant’s family members. Specifically, review of his devices revealed a message he composed, but had not yet sent, stating, “[W]e have made it to Dawlatul Islam [ISIS] in Syria. In sha Allah [God willing] we will join the Jihad very soon and in Sha Allah [God willing] we will then join the ranks of the Shuhuda [martyrs]. The West has invaded the land of the Muslims and is constantly attacking it.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI’s Joint Terrorism Task Force investigated the case.
Assistant U.S. Attorneys Craig R. Heeren and Meredith A. Arfa for the Eastern District of New York prosecuted the case, with valuable assistance provided by the National Security Division’s Counterterrorism Section.
New York Man Sentenced to 16 Months’ Imprisonment for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 19, 2022, Algernon Donte Martin, age 26, of Bronx, New York, was sentenced to 16 months’ imprisonment by U.S. District Court Judge Christopher C. Conner following his conviction for bank fraud. Judge Conner also ordered Martin to pay victims restitution in the amount of $82,969.06, and to serve three years of supervised release following his release from prison.
According to United States Attorney Gerard M. Karam, Martin was a member of a conspiracy in which he and others stole mail from postal boxes, rifled that mail to find checks that had been made payable to third parties, and then altered the checks and deposited them in other bank accounts. The conspiracy was formed in the New York City area, and its reach extended into central Pennsylvania. The investigation identified at least 40 stolen checks, of which 19 had been cashed, resulting in financial losses to victims. The conspiracy involved the participation of Kazaria Blair, age 32, a U.S. Postal Service employee working in the Harrisburg area. Blair provided the conspirators access to a postal key that enabled them to open blue postal collection boxes to steal the mail. She has pleaded guilty to conspiracy charges in relation to the scheme.
Judge Conner previously sentenced two co-defendants:
- Edward Hart, age 32, of Bronx, New York, was sentenced to 18 months in prison; and,
- Travis Terrell Price, age 27, of Allentown, Pennsylvania, was sentenced to serve four months in prison.
The case was investigated by the United States Postal Inspection Service – Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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New Hampshire Man Pleads Guilty to Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A Manchester, N.H., man pleaded guilty yesterday to possessing fentanyl with intent to distribute.
Michael Warner, 30, pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for March 15, 2023.
In August 2020, Warner was observed leaving a known drug source location in Lawrence. Once on the highway, agents stopped Warner, who admitted to buying 70 grams of fentanyl, an amount consistent with narcotics distribution.
The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Minnesota Man Indicted for Romance Scam Targeting Colorado WomanRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Adetomiwa Seun Akindele, age 37, of Minnesota, has been indicted on 10 counts of wire fraud and 11 counts of money laundering.
According to the indictment, beginning in January 2018, and continuing until October 2018, Akindele posed as a wealthy Italian-American businessman, “Frank Labato,” on a dating website, where he met a widowed Colorado woman. In February 2018, “Frank” began emailing the victim, and in March 2018, the two began exchanging telephone calls. During these communications, “Frank” provided the victim with additional false details about his personal and work background, images, and photos, to substantiate his fictitious persona. In March 2018, “Frank” represented to the victim that he had encountered a financial crisis related to his purported work abroad for which he claimed to need money, funds, and assistance from the victim. At “Frank’s” direction, the victim opened a cryptocurrency exchange account, where she eventually wired over $1.6 million dollars. From there, Akindele converted the money into various cryptocurrencies, laundered it across multiple crypto exchanges and then converted it back into U.S. dollars and deposited it into his own bank accounts. “Frank” fraudulently represented to the victim that he would repay her for the requested “loans” to his business. Over the course of the scheme, “Frank” executed three fraudulent “promissory notes” to reassure the victim that she would be repaid.
The Federal Bureau of Investigation (FBI) Denver Division conducted the investigation. Assistant United States Attorney Sarah Weiss is handling the prosecution of the case.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case number: 22-cr-00326
Michigan Man Sentenced to 105 Years for Armed Drug Trafficking and Attempted RobberyRead the Press Release
LONDON, Ky.— A Flint, Michigan man, Charles Ray Edwards, 39, was sentenced to 105 years in federal prison on Tuesday, by U.S. District Judge Robert E. Wier, after being convicted of armed drug trafficking and attempted robbery.
In July 2022, Edwards was convicted of heroin trafficking, fentanyl trafficking, conspiracy to distribute both substances, felon in possession of a firearm, use of a firearm in furtherance of the drug trafficking, and for his role in an attempted Hobbs Act robbery at a convenience store. His trafficking and robbery offenses involved three shooting victims, including the death of a bystander in the convenience store.
According to testimony at trial, Edwards was dealing heroin and fentanyl in Southeastern Kentucky region. As part of his drug trafficking crimes, Edwards wounded two individuals in a shooting incident in Knox County. Then, during the attempted robbery, a bystander in the store was shot and killed. Edwards has a prior felony conviction and was prohibited from possessing firearms.
“Charles Edwards was trafficking in dangerous drugs, attempted to hold up a store, was involved in multiple shootings – one resulting in the death of a bystander – and did all this with firearms he was prohibited from possessing,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “There is little question his conduct warrants the sentence imposed, and that our communities will now be safer for his incarceration. We will prioritize the prosecution of those who engage in such reckless and destructive violence and continue to do our part to protect our communities. We hope this will provide some sense of justice to the victims and are grateful for the critical efforts of our law enforcement partners.”
“ATF’s core mission is to protect the public from violent criminals like Charles Edwards,” said ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “Armed drug trafficking and violence go hand in hand. Today, Edwards was held accountable for his actions because of the hard work of our ATF London Office, Kentucky State Police, Williamsburg Police Department, and the U.S. Attorney’s Office. This investigation demonstrates our continued commitment to stopping violent criminals and the drug traffickers that plague our Eastern Kentucky communities.”
United States Attorney Shier; ATF SAC Morrow; Colonel Phillip Burnett Jr., Commissioner, Kentucky State Police; and Chief Jason Caddell, Williamsburg Police Department, jointly announced the sentence.
The investigation was conducted by the ATF, KSP, and Williamsburg Police Department. The United States was represented in the case by Assistant U.S. Attorneys Jenna Reed and Jason Parman.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. The PSN program involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Miami Man Sentenced for his Role in a Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Arley Gonzalez, age 35, of Miami, Florida, was sentenced today to 27 months in prison for his role in an access device fraud conspiracy. The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
As part of his guilty plea on May 20, 2021, Gonzalez admitted that between December 2015 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fraudulent credit and debit cards. The fraudulent cards were used to obtain money orders, gift cards, cash, and other things of value. As part of his plea agreement, Gonzalez agreed to be subject to a forfeiture money judgment in the amount of $247,000.
Senior United States District Judge Gary L. Sharpe also imposed a three-year term of supervised release to follow Gonzalez’s term of incarceration.
This case was investigated by the FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami and Pittsburgh, the USPIS Miami Division, and the United States Secret Service Miami Field Office. The case was prosecuted by Assistant U.S. Attorney Rick Belliss and former Assistant U.S. Attorney Emily Powers.
Member of Drug Trafficking Organization Sentenced to 235 Months in Federal Prison for Drug OffenseRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced the sentencing of Victor Welton, age 49, of Baton Rouge, Louisiana, as part of Operation Going Bacc to Cali, an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network spanning from Compton, California, through Baton Rouge, and to Miami, Florida.
Chief Judge Shelly D. Dick sentenced Welton to 235 months in federal prison following his conviction of conspiracy to distribute and possess with intent to distribute over 2.6 pounds of fentanyl. Welton must also serve 3 years of supervised release following his term of imprisonment.
According to admissions made as part of his guilty plea, in or about June 2020, Welton agreed with co-conspirators in Baton Rouge, Compton, and Miami to distribute and possess with intent to distribute fentanyl in the Middle District of Louisiana and elsewhere. Welton used other individuals to travel between California, Louisiana, and Florida, to transport fentanyl to a drug dealer in Miami.
On June 21, 2020, Welton arranged for two of several individuals, whom he used to transport fentanyl between Compton, Baton Rouge, and Miami, to travel to Compton and pick up fentanyl. The two individuals traveled by air to California and, on June 22, 2020, began their return trip to Baton Rouge on June 24, 2020, using Greyhound Bus services. During the early morning hours of June 24, 2020, both couriers arrived at the Greyhound Bus Terminal in Baton Rouge, Louisiana. At that time, they were greeted by law enforcement with a search warrant for their persons and baggage. Law enforcement discovered and seized three zip lock bags with a white powdery substance. The contents of each of the bags were analyzed by the Louisiana State Police Crime Laboratory, with the contents of each identified as fentanyl, and with a total weight of slightly over 2.6 pounds. The two couriers were then arrested by law enforcement.
When explaining the reasons to support the 235 month term of imprisonment, Chief Judge Dick commented on the significant danger associated with fentanyl, along with Welton’s role as the leader of a drug-trafficking conspiracy that involved at least four other co-conspirators.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration and East Baton Rouge Parish Sheriff’s Office. This case was prosecuted Assistant U.S. Attorney Paul L. Pugliese.
Massachusetts Man Convicted of Trafficking Four Tons of Cocaine Hidden Inside FurnitureRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction yesterday in Manhattan federal court of ABEL MONTILLA for his participation in a cocaine trafficking scheme between 2018 and 2021. The jury convicted MONTILLA following a one-week trial before U.S. District Judge P. Kevin Castel. Sentencing of MONTILLA is scheduled for March 22, 2023.
U.S. Attorney Damian Williams said: “The unanimous jury verdict holds Abel Montilla accountable for his role in a widespread cocaine trafficking organization that flooded the streets with four tons of cocaine. Montilla was a coordinator of the drug trafficking organization who traveled around the country to manage the delivery of the organization’s cocaine-filled furniture. He now faces the prospect of a lengthy prison sentence for his crime.”
According to the allegations contained in the Superseding Indictment and the evidence presented in court during the trial:
Between 2018 and 2021, MONTILLA was a member of a drug trafficking organization (“DTO”) that engaged in a drug-trafficking scheme involving the concealment of cocaine inside custom-built furniture. Between in or about September 2018 and June 2019, the DTO sent approximately 27 shipments of cargo from Puerto Rico to the continental United States. The cocaine was concealed in more than approximately 70 custom cube-shaped coffee tables or other furniture. The organization falsely represented that the cargo contained furniture, but that furniture in fact concealed hundred-kilogram quantities of cocaine. In total, the trafficking organization shipped approximately 4,000 kilograms of cocaine, worth at least $120,000,000 on the street. Eight of the organization’s shipments were sent to addresses in the Southern District of New York, including in Yonkers and the Bronx. Those eight shipments contained a total of approximately 775 kilograms (1,704 pounds) of cocaine.
Photographs introduced into evidence during trial of furniture containing cocaine and seized cocaine are below:
MONTILLA was a Massachusetts-based coordinator of cocaine shipments who managed the recipients of the organization’s deliveries of cocaine shipments and the distribution of the cocaine concealed inside the furniture. At times, MONTILLA drove straight through the night from Massachusetts to Florida to be present for a cocaine delivery, then flew or drove back to Massachusetts to handle additional cocaine deliveries there. In total, MONTILLA coordinated at least a dozen drug shipments in Massachusetts and Florida, and at least twelve of the 27 shipments were sent to addresses affiliated with MONTILLA.
* * *
MONTILLA, 49, of Springfield, Massachusetts, was found guilty of conspiracy to distribute and possess with the intent to distribute narcotics, which carries a maximum sentence of life in prison and a mandatory minimum sentence of ten years in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This prosecution 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.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Postal Inspection Service in this investigation.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Juliana N. Murray and Ryan B. Finkel are in charge of the prosecution.
Man Sentenced to More Than 15 Years in Prison for KidnappingRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced Thursday to 190 months in prison for conspiring to kidnap and transport an undocumented noncitizen.
According to court documents, Rosalio Cano Jr., 22, transported an undocumented noncitizen to multiple locations in or around San Antonio over a five-day period. During this time, co-conspirators were in contact with the now-kidnapping victim’s family and repeatedly raised demands for payment. During the investigation, Cano fled from federal agents. He was located and arrested by the U.S. Marshal’s Service on Oct. 14, 2021.
“This is just one example of what dangerous turns illegal border crossing can take—from illegal entry to kidnapping and extortion,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I appreciate the dedication to this investigation by our agency partners, and this nearly 16-year federal sentence serves as a reminder of how seriously we take these cases.”
“The actions of this defendant highlight the dangers of human smuggling and the risks law enforcement face while carrying out their duties. Cano schemed to kidnap and extort migrants for personal profit and when confronted by law enforcement, he displayed callous disregard for human life by firing shots at pursuing agents in his attempt to elude capture,” said Acting Special Agent in Charge Craig Larrabee of the Department of Homeland Security Investigations (HSI) San Antonio Division. “This sentence sends a clear message to those who exploit people for profit, HSI and our law enforcement partners will remain relentless in bringing justice to criminals who endanger the lives of migrants, our brave law enforcement officers, and the people in our communities.”
“The tactical apprehension and arrest without incident of Rosalio Cano Jr. clearly showed the importance and effectiveness of law enforcement agencies working together,” said U.S. Marshal Susan Pamerleau. “The diligent and collaborative efforts of the U.S. Marshals Service Lone Star Fugitive Task Force and the San Antonio Division of Homeland Security Investigations made certain to take another human trafficker off the streets and for justice to be served.”
HSI and the USMS investigated the case. Assistant U.S. Attorney Amy Hail prosecuted the case.
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Machias Man Sentenced to 2 Years for Unlawfully Possessing FirearmRead the Press Release
BANGOR, Maine: A Machias man was sentenced in U.S. District Court in Bangor today for being a felon in possession of a firearm.
U.S. District Judge Lance E. Walker sentenced Eric Legare, 37, to two years in prison and two years of supervised release. Legare pleaded guilty on July 21, 2022.
According to court records, Legare was a passenger in a vehicle stopped in East Machias by Washington County Sheriff’s Office deputies when a firearm was found inside the vehicle. Legare admitted that he had handled the firearm and that his DNA would likely be on it. Legare is prohibited from possessing firearms due to a 2017 conviction for manslaughter.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washington County Sheriff’s Office investigated the case. The Washington County District Attorney’s Office also assisted with the case.
Project Safe Neighborhoods: 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. To learn more information about PSN, visit www.justice.gov/psn.
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Leader of nationwide moving company scam conspiracy sentenced to 72 months in prisonRead the Press Release
CINCINNATI – A Miami, Florida, man was sentenced to 72 months in prison for conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States. Identified victims of the fraud lost more than $2.4 million total.
Serghei Verlan, 39, was sentenced in U.S. District Court in Cincinnati today.
The criminal enterprise used a series of moving companies to exploit thousands of people across the country by demanding ransom for the personal possessions those people had entrusted the enterprise to transport.
Verlan was one of 12 defendants indicted in July 2018 and was one of two leaders of the conspiracy. According to court documents, the defendants operated and worked through at least 12 affiliated moving companies to enrich themselves by defrauding customers who hired them to move their household goods.
The enterprise executed their scheme through various moving companies in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 1,000 customers have been identified as victims.
One of the enterprise’s warehouses was in West Chester, Ohio, and some of the identified victims reside in the Southern District of Ohio.
As part of the conspiracy, the defendants would provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would load the customers’ goods onto the truck and then the price of the move would be bumped. Co-conspirators would use an inflated cubic footage for the price of moving the customers’ goods.
Verlan was one of the few defendants who knew the “actual” or “real” cubic footage for customers’ goods and instructed workers to charge customers based on the fraudulently inflated price. He told employees to cap the overcharge at 20 percent to keep customer complaints down.
Verlan also paid employees to write fake positive reviews of their various companies to manage their online image. He was also directly responsible for furthering the conspiracy by “reincarnating” affiliated companies into “new” companies controlled by the enterprise through false statements to federal regulators.
Verlan pleaded guilty in August 2022 to participating in the racketeering conspiracy.
The other leader of the conspiracy, Andrey Shuklin, 34, of Miami, Florida, was sentenced in U.S. District Court in May to 78 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Andrea M. Knopf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorneys Megan Gaffney Painter and Matthew C. Singer are representing the United States in this case.
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Las Vegas Man Sentenced to 18 Years in Prison for Six Armed RobberiesRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced today by U.S. District Judge Andrew P. Gordon to 18 years in prison followed by five years of supervised release for committing six armed robberies of gas station convenience stores.
Jonathan Nagel (25) pleaded guilty in September 2022 to six counts of interference of commerce by robbery, one count of brandishing a firearm during and in relation to a crime of violence, and one count of failure to appear.
According to court documents, from January 21, 2021 to August 18, 2021, Nagel committed six armed robberies of businesses located in North Las Vegas and Las Vegas. At each robbery, Nagel pretended to make a purchase at the checkout counter. He then pointed a 9mm handgun at the store clerk and demanded money from the cash register. Nagel was arrested in August of 2021 and admitted he was planning to rob a seventh store that night. After Nagel was arrested for the armed robberies, he was initially released on pretrial supervision and ordered to self-surrender on March 7, 2022. However, on March 4, 2022, he cut off his GPS monitor, and absconded from pretrial supervision. Nagel was arrested in Arizona later that month.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI, North Las Vegas Police Department, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci prosecuted the case.
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Lame Deer pastor arraigned on sexual abuse chargesRead the Press Release
BILLINGS — A Lame Deer pastor appeared on a summons for arraignment today on sexual abuse charges alleged to have occurred on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Dean Alan Smith, 66, a pastor, pleaded not guilty to an indictment charging him with one count of aggravated sexual abuse, one count of abusive sexual contact and three counts of abusive sexual contact by force and of a child. If convicted of the most serious crime, Smith faces a maximum of life in prison, a $250,000 fine and not less than five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Judge Cavan continued Smith’s release with conditions pending further proceedings.
An indictment, filed on Dec. 9, alleges that between 2017 and 2019 near Lame Deer, on the Northern Cheyenne Indian Reservation, Smith knowingly caused a person, identified as Jane Doe 1, to engage in a sexual act by using force and that Smith knowing caused Jane Doe 1 to engage in sexual contact by using force. The indictment further alleges that between 2017 and 2019, Smith knowingly caused a person, identified as Jane Doe 2, who had not attained the age of 12, to engage in sexual contact by force. In addition, the indictment alleges that between 2019 and 2020, Smith knowingly caused persons, identified as Jane Doe 3 and Jane Doe 4, both who had not attained the age of 12, to engage in sexual contact by force.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If people have additional information or know of persons who may have encountered similar conduct alleged against the defendant, please contact the FBI Billings Office at 406-248-8487.
PACER case reference. 22-140.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Kansas National Guard Soldier Sentenced to 16 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Chanute, Kansas, man serving with the Army National Guard was sentenced in federal court today for sexually exploiting an 11-year-old southwest Missouri victim to produce child pornography.
Christian Sinclair, 22, was sentenced by U.S. District Judge Stephen R. Bough to 16 years in federal prison without parole. The court also sentenced Sinclair to 15 years of supervised release following incarceration.
On March 2, 2022, Sinclair pleaded guilty to one count of the sexual exploitation of a child. Sinclair admitted that he used a minor to produce child pornography from Aug. 1, 2020, through June 15, 2021.
According to Sinclair’s plea agreement, a captain in the Kansas National Guard contacted the Sierra Vista, Arizona, police department on June 15, 2021, while his unit was deployed to Arizona. The captain reported that Sinclair, one of the soldiers in his command, was sexting an 11-year-old child in Missouri. Sinclair’s fiancée had reported to the captain earlier the same day that she had screenshots between herself and Sinclair in which Sinclair admitted to “cheating” on her with an 11-year-old child.
The child victim told investigators that she had sent Sinclair multiple pornographic videos and images of herself via Snapchat at Sinclair’s request. Sinclair admitted that he also sent pornographic images of himself to the child victim via Snapchat.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Joplin, Mo., Police Department, the FBI, the Southwest Missouri Cyber Crimes Task Force, the Lamar, Mo., Police Department, the Sierra Vista, Arizona, Police Department, and the Chanute, Kan., Police Department.
Project Safe Childhood
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."
Justice Department Secures Settlement with Southern California School District to Protect the Civil Rights of English Learner StudentsRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with the Colton Joint Unified School District in California to resolve an investigation into the district’s program for students learning English. The department’s investigation, conducted jointly by the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California, revealed that the district denied some English learner students the instruction they needed to become fluent in English and the necessary supports to fully participate and thrive in school.
“Students learning English have a right to receive an education equal to that of their classmates,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “School districts have an obligation to overcome language barriers and support English learners in participating fully in their schools’ academic programs. The Civil Rights Division is committed to ensuring that school districts across the nation comply with federal law and provide all students equal access to a quality education.”
“We are committed to giving English learners meaningful access to the education provided by their school districts,” said U.S. Attorney Martin Estrada for the Central District of California. “These students can learn English, develop critical skills, graduate and attend college, and then contribute to our shared society. But first they must have real access to the educational programs offered in their district. This settlement ensures that English-learner students have that access.”
The department's investigation identified failures to ensure that all teachers were qualified to provide instruction in how to learn English, meaning that some students did not have access to the language services they needed to become fluent. Similarly, math, science and social studies teachers were often not qualified to support English learner students in their classrooms, depriving those students of an education on these essential subjects. In addition, the department found lapses in services to English learners with disabilities, as well as barriers to participation in the district’s gifted and talented program, among other issues.
Under the agreement, the district will work to ensure that all English learners receive instruction on the English language from a trained and qualified teacher. Similarly, the district will ensure that teachers instructing these learners on core subjects, like math, science and social studies, can provide the type of support necessary for those students to understand and learn the material. The department will monitor the district’s progress over the next three years.
The Spanish version of the press release is available here. The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Secures Settlement with Colton Joint Unified School District to Protect the Civil Rights of English Learner StudentsRead the Press Release
LOS ANGELES – The Justice Department announced today that it has reached a settlement agreement with the Colton Joint Unified School District to resolve an investigation into the district’s program for students learning English.
The department’s investigation, conducted jointly by the United States Attorney’s Office and the Justice Department’s Civil Rights Division, revealed that the district denied some English learner students the instruction they needed to become fluent in English, and the necessary supports to fully participate and thrive in school.
“We are committed to giving English learners meaningful access to the education provided by their school districts,” said United States Attorney Martin Estrada. “These students can learn English, develop critical skills, graduate and attend college, and then contribute to our shared society. But first they must have real access to the educational programs offered in their district. This settlement ensures that English learner students have that access.”
“Students learning English have a right to receive an education equal to that of their classmates,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “School districts have an obligation to overcome language barriers and support English learners in participating fully in their schools’ academic programs. The Civil Rights Division is committed to ensuring that school districts across the nation comply with federal law and provide all students equal access to a quality education.”
The department’s investigation identified failures to ensure that all teachers were qualified to provide instruction in how to learn English, meaning that some students did not have access to the language services they needed to become fluent. Similarly, math, science and social studies teachers were often not qualified to support English learner students in their classrooms, depriving those students of an education on these essential subjects. In addition, the department found lapses in services to English learners with disabilities, as well as barriers to participation in the district’s gifted and talented program, among other issues.
Under the agreement, the district will work to ensure that all English learners receive instruction on the English language from a trained and qualified teacher. Similarly, the district will ensure that teachers instructing these learners on core subjects, like math, science and social studies, can provide the type of support necessary for those students to understand and learn the material. The department will monitor the district’s progress over the next three years.
Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Educational Opportunities Section of the Justice Department’s Civil Rights Division handled this matter.
Information about the Civil Division’s Civil Rights Section is available on its website at https://www.justice.gov/usao-cdca/civil-division/civil-rights-section. Individuals in the seven counties of the Central District of California may report possible civil rights violations to the United States Attorney’s Office by calling (213) 894-2879 or emailing USACAC.CV-CivilRights@usdoj.gov.
Justice Department Secures Agreement with Massachusetts Department of Correction Investigation Involving Individuals in Mental Health CrisisRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Massachusetts Department of Correction (MDOC) to resolve the department’s investigation into MDOC’s treatment of incarcerated individuals in mental health crisis.
Under the agreement, MDOC will improve policies and training related to mental health care for incarcerated individuals. These improvements will ensure that individuals in mental health crisis receive three daily mental health contacts; that support staff interact with them while they are on a mental health watch; and that MDOC develop a new unit to provide more intensive mental health treatment for individuals in mental health crisis who are not improving while on mental health watch. In addition, MDOC will provide better documentation of mental health treatment for incarcerated individuals experiencing prolonged mental health crisis. MDOC’s Mental Health Director will now have a role in determining the cell conditions and privileges for anyone on a mental health watch.
The agreement also provides for an independent monitor to assess MDOC’s implementation of the agreement’s requirements and review clinical determinations to ensure MDOC is providing adequate mental health treatment for individuals in mental health crisis. The monitor will prepare periodic public reports on MDOC’s progress.
“Our investigation found that Massachusetts’ prisons subjected incarcerated people in mental health crisis to prolonged periods of restrictive housing conditions, instead of providing them constitutionally adequate mental health care and supervision,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement ensures heightened supervision, increased out-of-cell contact with mental health staff, and intensive mental health care in a new treatment-focused housing unit when needed. These reforms will help ensure people receive the services they need when they are in crisis.”
“As prosecutors, we have a duty to enforce criminal laws which can result in sending people to carceral facilities,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “We also have a duty to ensure that once someone is incarcerated and in the custody and control of a state, local or federal government, that they receive constitutional treatment and adequate mental and physical health care. In the instant case, our investigation found unconstitutional conditions and circumstances where incarcerated people in mental health crisis harmed themselves up to and including suicide. We must provide better mental health treatment in our carceral facilities. Statistics show that far too many of the incarcerated population with significant mental health and substance use disorders, among other severe things. Moving forward, we will be working closely with DOC to address and correct the serious issues and violations identified in our November 2020 Notice. This agreement is the product of hard work and collaboration and offers many innovative solutions. Specifically, the creation of a Stabilization Unit, a newly established civilian Support Person position, as well as mandatory out-of-cell mental health contacts. With these innovations, we intend for Massachusetts to become the gold standard in mental health supervision and treatment for incarcerated individuals. DOC could become an example for the nation.”
The Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts initiated the investigation of MDOC in October 2018 under the Civil Rights of Institutionalized Persons Act. This law authorizes the Attorney General to file a lawsuit to address the rights of individuals in institutionalized settings. In November 2020, the department announced findings that MDOC violated the constitutional rights of incarcerated individuals in mental health crisis. The department found that MDOC did not adequately supervise individuals in mental health crisis, did not provide them adequate mental health care, and used prolonged mental health watches under restrictive housing conditions.
For more information about the Civil Rights Division and the Special Litigation Section, please visit https://www.justice.gov/crt/special-litigation-section. Additional information about the U.S. Attorney’s Office for the District of Massachusetts’ Civil Rights Unit is available at: www.justice.gov/usao-ma/civil-rights. You can also report civil rights violations to the Section by completing the complaint form available at https://civilrights.justice.gov/.
Individuals with relevant information about compliance with the agreement are encouraged to contact the department by phone at (833) 223-1550 (voicemail only), or by email at Community.MADoC@usdoj.gov.
Jury Convicts Two KC Men of Kidnapping, MurderRead the Press Release
KANSAS CITY, Mo. – Two Mexican nationals have been convicted in federal court of kidnapping and murder.
Jonathan M. Bravo-Lopez (also known as “Jonathan Vravo,” and “Shadow”), 27, and Juan D. Osorio (also known as “Spexx”), 28, both of whom are citizens of Mexico residing in Kansas City, Mo., were found guilty on Friday, Dec. 16, of conspiracy to commit kidnapping and kidnapping resulting in death. Osorio was also found guilty of being an illegal alien in possession of a firearm. Bravo-Lopez was also found guilty of illegally reentering the United States after having been deported in 2016.
Evidence introduced during the trial indicated that Bravo-Lopez and Osorio conspired to kidnap Cristian Escutia in an attempt to rob him of money. They transported Escutia across state lines from Missouri to Kansas before fatally shooting him on April 3, 2017.
Bravo-Lopez and Osorio arranged to purchase $300 of marijuana from Escutia as a ruse to lure him into their kidnapping plan. On April 3, 2017, they met Escutia outside his residence, shot him in the arm, and forced him into their vehicle, a Chrysler Pacifica, at gunpoint. The kidnapping was captured by the video surveillance system outside a nearby residence. When they drove to the 200 block of Donovan Road in Kansas City, Kan., they forced Escutia out of the vehicle. Escutia was shot three times in the head and left to die on the side of the road.
Osorio, who is in the United States unlawfully, was in possession of an Action Arms Uzi .45-caliber semi-automatic pistol when he was arrested on April 7, 2017.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Dec. 5, 2022.
Under federal statutes, Bravo-Lopez and Osorio each are subject to a mandatory sentence of life in federal prison without parole. The sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Matthew A. Moeder. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.
Jessamine County Man Sentenced to 20 Years in Prison for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Nicholasville, Ky., man, Noah James Grimes, 30, was sentenced to 20 years in federal prison on Monday, by U.S. District Judge Karen C. Caldwell, after pleading guilty to enticing a minor to engage in sexually explicit conduct outside the United States, with the purpose of producing a visual depiction of that conduct.
According to Grime’s guilty plea, a minor victim from Ontario, Canada, told their parent that someone had taken sexually explicit pictures of them at daycare. That person had been talking on a video chat with Grimes around the time the pictures were taken. Law enforcement discovered that the person who had taken the sexually explicit photos of the minor had been asked to do so by Grimes and had previously sent pictures of herself to Grimes, when she was a minor. A search warrant of Grimes phones revealed more than a hundred images of minor males, under the age of 12. Grimes admitted to knowingly persuading someone to produce sexually explicit images outside the United States and having those images sent to him.
Grimes pleaded guilty to the charge in January 2022.
Under federal law, Grimes must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Chief Frank Bergen, Hamilton Police Department, Ontario, Canada; and Chief Bryan MacCulloch, Niagara Regional Police Service, Ontario, Canada, jointly announced the sentence.
The investigation was conducted by the FBI, the Hamilton Police Department and Niagara Regional Police Service. The United States was represented by Assistant U.S. Attorney David Marye.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Inmate Sentenced for Conspiring to Steal Government PropertyRead the Press Release
ALBANY, NEW YORK – Irvis Jorge, age 44, was sentenced today to 364 days in jail for fraudulently applying for unemployment benefits while a state prisoner.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon.
Jorge worked with his girlfriend, Pamela Febo, to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information, at time when Jorge was an inmate in NYSDOCCS custody. Febo submitted the application at Jorge’s direction in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months. Febo certified each week that Jorge was “able and available to start work immediately” even though Febo knew Jorge remained incarcerated and could not work. NYSDOL paid the defendants $27,348 based on the repeated false certifications.
Senior United States District Judge Gary L. Sharpe ordered the 364-day term of imprisonment to run consecutive to Jorge’s state term of imprisonment for criminal possession of a controlled substance in the third degree. He also imposed 3 years of supervised release, and ordered restitution in the amount of $27,348 and forfeiture in the amount of $12,444. Febo pled guilty on October 26, 2022, and is scheduled to be sentenced in February.
The case was investigated by the FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Jonathan S. Reiner.
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.
Indiana Man Ordered to Pay Restitution and Serve Probation for Defacing the Washington MonumentRead the Press Release
Defendant Was Arrested With Paint Brush In-Hand
WASHINGTON – Shaun Deaton, 44, of Bloomington, Indiana, was sentenced today to one year of probation and was ordered to pay $3034.99 in restitution to the National Park Service for vandalizing the Washington Monument. On September 20, 2022, Deaton traveled to Washington, DC, and defaced the Washington Monument by painting it using red paint. He was arrested with the paint brush still in his hand and red paint on his clothes and body.
On September 22, 2022, Deaton was charged with destruction of federal property. On October 17, 2022, Deaton pleaded guilty to the misdemeanor.
In announcing the sentence, U.S. Attorney Matthew M. Graves commended the work of the United States Park Police and the National Park Service. The case was prosecuted by Assistant U.S. Attorney Josh Gold.
Immigration Attorney and CEO of Immigration Services Company Convicted at Trial of Conspiring to Commit Immigration FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ULADZIMIR DANSKOI, the CEO of an immigration services firm, and JULIA GREENBERG, an immigration attorney, were found guilty yesterday in Manhattan federal court of conspiracy to defraud the United States and conspiracy to commit immigration fraud following a two-week trial before United States District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “Asylum is an incredibly important benefit designed to protect the world’s most vulnerable people. The defendants, a CEO of an immigration services firm with offices in both Manhattan and Brooklyn and a licensed attorney, exploited that system for financial gain by knowingly peddling false claims and coaching clients to lie under oath. Yesterday, a unanimous jury convicted them both for these crimes.”
According to the allegations in the Indictment and evidence presented at trial:
A New York City immigration services firm, “Russian America,” worked with clients – primarily aliens from Russia and the Commonwealth of Independent States – seeking visas, asylum, citizenship, and other forms of legal status in the United States. Among other things, Russian America advised certain of their clients in the manner in which they were most likely to obtain asylum in this country, fully understanding that those clients did not legitimately qualify for asylum. The firm also prepared and submitted to United States Citizenship and Immigration Services (“USCIS”) clients’ fraudulent asylum application documents and affidavits, often including fraudulent allegations of past persecution. Members and associates of the firm also coached certain clients to lie under oath during interviews conducted by USCIS Asylum Officers and provided legal representation to their clients during various immigration proceedings.
ULADZIMIR DANSKOI and previously convicted codefendant Yury Mosha operated and maintained Russian America’s Brooklyn and Manhattan offices, respectively. Each advised and aided their clients to seek asylum under fraudulent pretenses. Among other things, DANSKOI advised a client, a confidential FBI source (the “Source”), to seek asylum on the fraudulent basis that the client was persecuted in Ukraine for being a gay male, when in fact DANSKOI fully understood that the Source was a heterosexual male who suffered no such persecution. DANSKOI submitted the Source’s fraudulent asylum application and Affidavit, filed under penalty of perjury, to USCIS.
Meanwhile, Mosha encouraged a second client, a Government cooperator (the “Cooperator”), to establish and maintain online blogs that were critical of the client’s home country as a way to generate a false claim that, based on the client’s invented political opinion, it was unsafe for him to return to his native country. Mosha also personally prepared and submitted the Cooperator’s asylum application, Affidavit, and related paperwork under penalty of perjury, knowing that these documents contained material falsehoods.
When the Source and Cooperator needed to prepare for an interview, conducted under oath by a USCIS asylum officer, DANSKOI and Mosha connected each to JULIA GREENBERG, a New York immigration attorney, who coached both clients to lie to Asylum Officers and provided legal representation to these clients during immigration proceedings. For example, GREENBERG, understanding that the Source was a heterosexual male who did not suffer persecution in his home country, prepared the Source for questioning by an Asylum Officer, advised the Source how to falsely answer certain anticipated questions from the Asylum Officer, and instructed the Source to dress and change the Source’s appearance in a manner that comported with GREENBERG’s vision of a gay male.
DANSKOI and Mosha also agreed to help certain Russian America clients obtain employment visas by creating fake leases and staging offices to create the impression to USCIS that these clients had legitimate jobs waiting for them in the United States.
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DANSKOI, 55, and GREENBERG, 42, each originally from Belarus and currently residing in Staten Island, New York, were convicted of one count of conspiring to defraud the United States and conspiring to commit immigration fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Eurasian Organized Crime Task Force, Homeland Security Investigations, and USCIS’s New York Asylum Office and Fraud Detection and National Security Unit. Mr. Williams also thanked United States Customs and Border Protection for its assistance.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys David R. Felton and Jonathan E. Rebold are in charge of the prosecution.
Honduran Man Pleads Not Guilty to Unlawfully Transporting Foreign Nationals in VermontRead the Press Release
The United States Attorney stated that Guillermo Paredes-Bobadilla, 31, of Honduras and Brunswick, New Jersey, was arraigned yesterday in United States District Court in Burlington on an indictment charging him with unlawfully transporting three individuals from Guatemala who entered the United States illegally. Paredes-Bobadilla pleaded not guilty and remains in the custody of the U.S. Marshals Service in accordance with a prior order of the Court.
According to public documents in the case, during the early morning hours of December 1, 2022, based on information suggesting a nearby illegal border crossing, the United States Border Patrol initiated a traffic stop of a vehicle driven by Paredes-Bobadilla in Highgate, Vermont. Border Patrol identified Paredes-Bobadilla as a Honduran national living in New Jersey who had filed an asylum claim, which had not been adjudicated. The three passengers acknowledged they were from Guatemala and did not have legal status to be in the United States. The passengers stated that each paid $1,000 to be smuggled into the United States and that a foot guide led them to the pick up location.
The United States Attorney’s Office emphasizes that an indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged Paredes-Bobadilla, faces up to five years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines.
U.S. Attorney Nikolas Kerest credited the agents of the United State Border Patrol for their investigation and apprehension of Paredes-Bobadilla and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations.
Assistant U.S. Attorney Joseph Perella represents the United States in this case. Paredes-Bobadilla is represented by Assistant Federal Public Defender Steven Barth.
High-ranking Member of the Sons of Silence Motorcycle Club Sentenced to 10 Years in Prison for Drugs and Weapons ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Seburn John Henry IV, age 37 of Colorado Springs, was sentenced to 10 years in federal prison for possession of a firearm by a prohibited person and possession with intent to distribute methamphetamine.
According to the plea agreement, on June 22, 2021, the Colorado Springs Police Department was conducting surveillance on a residence in Colorado Springs that was believed to be involved in narcotics distribution. During surveillance, two detectives observed the defendant working in and around a black Cadillac Escalade parked near the residence they were surveilling. Detectives saw the defendant near the back passenger compartment of the vehicle with a handgun in his right hand. It appeared to the detectives that the defendant was manipulating the slide of the handgun with his left hand. One of the detectives observed the defendant appear to load a firearm magazine. The defendant eventually left in the vehicle with a female passenger. Law enforcement knew the defendant was a high-ranking member of the Sons of Silence Motorcycle Club and also knew the defendant was a previously convicted felon who could not lawfully possess firearms. As such, both detectives believed the defendant was unlawfully in possession of a firearm and notified the CSPD Armed Violent Offenders Unit (AVOU) to respond and attempt to contact the defendant. That same day, law enforcement contacted the defendant as he pulled into a 7-Eleven in the same black Cadillac Escalade he was observed in earlier that day. The defendant was instructed to exit the vehicle, and he complied. One detective walked toward the driver’s door, which was left open, and observed two firearms in the driver’s door pocket. One of the handguns was a Taurus 9mm handgun loaded with a magazine containing 9mm ammunition. The other was a Smith & Wesson 9mm handgun loaded with a magazine containing 9mm ammunition. Law enforcement than began searching the vehicle. During that search, detectives located another handgun in the front passenger floorboard area. This handgun was also found to be loaded with a magazine containing .45 caliber ammunition. At the time the defendant possessed the firearms and ammunition, he knew that he had been convicted of a felony and was prohibited from possessing firearms. Detectives also located a total of 228.88 grams of suspected methamphetamine and two digital scales inside a black bag found on the floor of the front passenger seat in the vehicle.
Judge Raymond P. Moore sentenced the defendant on December 16, 2022.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Police Department handled the investigation. Assistant United States Attorney Kelly Churnet handled the prosecution.
CASE NUMBER: 21-cr-00236