Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 December 2022
Marion County man sentenced for his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Paul Thompson, of Fairmont, West Virginia, was sentenced today to 24 months of incarceration for his role in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Thompson, 38, pleaded guilty in June 2022 to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Thompson admitted to selling methamphetamine near a public housing facility in June 2019 in Marion County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-detroit-residents-indicted-drug-trafficking-operation
Manhattan Man Sentenced to 120 Months in Prison for Role as Leader of Gun Trafficking ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES THOMAS, a/k/a “Spazz,” was sentenced to 120 months in prison for his leadership of a gun trafficking conspiracy that was responsible for the illegal purchase and trafficking of approximately 89 firearms from at least in or around August 2020 up to and including April 2021. THOMAS pled guilty to one count of interstate travel with intent to engage in gun trafficking on May 20, 2022, before U.S. District Judge Sidney H. Stein, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “James Thomas participated in the trafficking of dozens of guns to New York, and some of the guns that he trafficked can directly be tied to violent crimes. Thomas exacerbated the scourge of gun crime in New York, and for that he is rightly facing a lengthy prison sentence.”
According to public filings and statements made in court:
From at least in or around August 2020 up to and including April 2021, the defendants used Georgia-resident DUVAUGHN WILSON, a/k/a “Dupree,” as a straw purchaser to buy at least 87 firearms from at least six federal firearms licensees (“FFLs”) in Georgia. Over the course of the scheme, during which WILSON completed approximately 30 different transactions, WILSON attested that he was the true purchaser of the firearms, when in fact, he was buying the guns on behalf of the defendants, who in turn illegally resold many of the guns to others.
Prior to purchases, the defendants coordinated with WILSON to place orders for specific firearms and pay for the weapons using cash, mobile banking applications, and through wire payments. When communicating about the firearms, the defendants used coded language, referring to the weapons as “tvs,” “knocks,” and “situations.” In some instances, the defendants referred to the caliber or model of a firearm by referencing the jersey numbers of famous athletes.
After purchasing the weapons, WILSON transferred the firearms to defendants JAMES THOMAS, a/k/a “Spazz,” COURTNEY SCHLOSS, a/k/a “Bway” a/k/a “Balenci,” and others who sold some of the guns in Georgia and transported other firearms, primarily by bus, to New York for resale. In many instances, the guns were transferred to members of the Brooklyn-based “Blixky Gang” — a group comprised primarily of aspiring rappers. Some of these guns later appeared in music videos filmed by members of the Blixky Gang. The videos, which include some of the defendants, show Blixky Gang members brandishing loaded firearms and displaying stacks of cash.
On some occasions, law enforcement successfully interdicted firearms being transported by the defendants before they reached New York. For example, in November 2020, law enforcement in South Carolina stopped a bus in Wellford, South Carolina, from which they seized five firearms, four pistol magazines, a high capacity .40 caliber magazine, and a nine-millimeter drum magazine — all of which was being transported by the defendants in a single backpack.
Law enforcement seized other firearms purchased in Georgia by WILSON in New York City. On at least two occasions, in the wake of violent crimes, the New York City Police Department (“NYPD”) seized firearms trafficked to New York as part of this scheme. As alleged, in February 2021, the NYPD seized a gun that WILSON had bought after a fleeing suspect discharged it at responding officers in the Bronx. In April 2021, following a shooting in the Bronx, the NYPD seized another pistol purchased by WILSON.
* * *
In addition to the prison term, THOMAS, of New York, New York, was sentenced to three years of supervised release.
Eight of THOMAS’s co-defendants were previously sentenced in this case. A chart containing the names and imposed sentences is set forth below.
Mr. Williams praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and NYPD, in particular, the Joint Firearms Task Force, which is composed of agents and officers of the ATF and the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Ashley C. Nicolas and Matthew J. King are in charge of the prosecution.
Name
Sentence
COURTNEY SCHLOSS, a/k/a “Bway,” a/k/a “Balenci”
120 months in prison; three-year term of supervised release
DUVAUGHN WILSON, a/k/a “Dupree”
48 months in prison; three-year term of supervised release
KEN ALEXANDER, a/k/a “Ryu”
37 months in prison; two-year term of supervised release
ARGAM TAJ, a/k/a “Sour”
60 months in prison; two-year term of supervised release
SAMUEL TAJ, a/k/a “Sosa”
48 months in prison; three-year term of supervised release
CHRISTOPHER MACHADO, a/k/a “Chris Elite”
36 months in prison; two-year term of supervised release
ANTONIO EADDY, a/k/a “Storm”
24 months in prison; three-year term of supervised release
HARLIE RAMOS, a/k/a “White Girl”
18 months in prison; three-year term of supervised release
Man Sentenced to Nearly Four Years in Federal Prison in Cedar Rapids Heroin and Fentanyl ConspiracyRead the Press Release
A man who distributed large quantities of heroin and fentanyl was sentenced on December 7, 2022, to nearly four years federal prison.
Demeco Demon Irvin, age 31, from Minneapolis, Minnesota, received the prison term after a June 2, 2022 guilty plea to one count of conspiracy to distribute heroin.
In a plea agreement, Irvin admitted he sold between 80 and 100 grams of heroin for Brian Dennis during 2020. During a search of Irvin’s residence and vehicle in September 2020, officers found 32 baggies containing a total of 14.86 grams of fentanyl, which Irvin intended to distribute.
Six other individuals, Cody Scott Deklotz, Andrew James Lehman, Ryan Rick Schlitter, Melinda Salvatora Werning, Jerry Dwayne Banghart, and Thomas Nathaniel May previously pled guilty to the heroin conspiracy and have been sentenced. Ryan Rick Schlitter was sentenced to 46 months’ imprisonment. Andrew James Lehman was sentenced to 10 months and 16 days’ imprisonment. Cody Scott Deklotz was sentenced to 84 months’ imprisonment. Melinda Salvatora Werning was sentenced to 12 months’ and one day imprisonment. Jerry Dwayne Banghart was sentenced to 46 months’ imprisonment. Thomas Nathaniel May was sentenced to 31 months’ imprisonment. Three other individuals charged in the same indictment, including Dennis, have pled guilty and are awaiting sentencing.
Irvin was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Irvin was sentenced to 46 months’ imprisonment and a three-year term of supervised release after the prison term. There is no parole in the federal system.
Irvin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dan Chatham
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑32‑CJW.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to More Than 8 Years in Prison for Illegal Firearm Possession and Attempted MurderRead the Press Release
CHICAGO — A man has been sentenced to more than eight years in federal prison for illegally possessing a firearm and using it to shoot at individuals on Christmas morning in 2019.
Shortly after 11:15 a.m. on Dec. 25, 2019, RASHID JACKSON fired three shots from a semiautomatic handgun at individuals in the middle of a residential street in Chicago’s South Shore neighborhood. CPD officers patrolling the area after the shooting arrested Jackson approximately half a block from the shooting scene.
Jackson, 27, of Chicago, pleaded guilty earlier this year to a charge of illegal possession of a firearm by a convicted felon. Jackson had previously been convicted of multiple felony offenses in state court and was prohibited by federal law from possessing a firearm. U.S. District Judge Virginia M. Kendall on Monday imposed a 100-month prison sentence after finding that Jackson’s actions in the Christmas shooting constituted attempted second-degree murder.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI, and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Cornelius A. Vandenberg.
Man Indicted for Making Threats to Arizona State Election OfficialRead the Press Release
A federal grand jury in Phoenix returned an indictment today charging an Ohio man for allegedly sending threatening communications to an election official with the Arizona Secretary of State’s Office.
According to court documents, on or about Aug. 2, Joshua Russell, 44, of Bucyrus, allegedly left the following voicemail for an election official with the Arizona Secretary of State’s Office (Victim‑1): “This message is for traitor [Victim-1’s full name]. You’ve drug your feet, you’ve done nothing, to protect our election for 2020. You’re committing election fraud, you’re starting to do it again, from day one. You’re the enemy of the United States, you’re a traitor to this country, and you better put your sh[inaudible], your [expletive] affairs in order, ’cause your days [inaudible] are extremely numbered. America’s coming for you, and you will pay with your life, you communist [expletive] traitor [expletive].”
Additionally, according to the indictment, on or about Sept. 9, Russell allegedly left the following voicemail for Victim-1: “This message is for terrorist [Victim-1’s last name]. The only reason you’re still walking around on this planet is because we’re waiting for the midterms to see you prosecuted for the crimes you have done to our nation. You are a terrorist. You are a derelict criminal. And you have a few short months to see yourself behind bars, or we will see you to the grave. You are a traitor to this nation, and you will suffer the [expletive] consequences.”
Finally, according to the indictment, on or about Nov. 15, Russell allegedly left the following voicemail for Victim-1: “This message is for communist, criminal, [Victim-1’s full name]. We will not endure your crimes on America another day. You’ve been busted, over and over again. We will not wait for you to be drugged through court. A war is coming for you. The entire nation is coming for you. And we will stop, at no end, until you are in the ground. You’re a traitor to this nation. You’re a [expletive] piece of [expletive] communist, and you just signed your own death warrant. Get your affairs in order, cause, your days are very short.”
Russell is charged with three counts of making a threatening interstate communication and three counts of making a threatening interstate telephone call. He was arrested and made his initial court appearance on Dec. 12. If convicted, Russell faces a maximum penalty of five years in prison for each count of making a threatening interstate communication and two years in prison for each count of making a threatening interstate telephone call. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Gary M. Restaino for the District of Arizona, and Special Agent in Charge Akil Davis of the FBI Phoenix Field Office made the announcement.
The FBI Phoenix Field Office is investigating the case, with the assistance of the FBI Cleveland resident agency in Mansfield.
Trial Attorney Tanya Senanayake of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Sean K. Lokey for the District of Arizona are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the Task Force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The Task Force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and United States Attorneys’ Offices throughout the country. A year after its formation, the Task Force is continuing this work and supporting the United States Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: https://www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at: tips.fbi.gov. Complaints submitted will be reviewed by the Task Force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law
Man Accused of Starting Fires in Mark Twain National Forest, Assaulting Forest Service EmployeeRead the Press Release
CAPE GIRARDEAU – A man from Iron County, Missouri has been indicted on charges that accuse him of starting fires in the Mark Twain National Forest in Missouri and assaulting a law enforcement officer.
Lucas G. Henson, 36, appeared in U.S. District Court in Cape Girardeau Wednesday and pleaded not guilty to the charges.
Henson was indicted December 6 on charges of assaulting a law enforcement officer, arson and being a felon in possession of a firearm.
The indictment says Henson assaulted a U.S. Forest Service law enforcement officer on Oct. 23, 2022 in Wayne County, Missouri. On the same date, the indictment says he damaged United States property with fire and possessed a firearm as a convicted felon.
Henson is currently facing charges including robbery, stealing a motor vehicle and resisting arrest in New Madrid Circuit Court related to the same incident. Charging documents in that case, 22NM-CR00930, say he set three fires in Butler and Wayne counties that damaged seven to eight acres of National Forest land and pointed a crossbow at the Forest Service officer.
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 U.S. Forest Service, the Butler County Sheriff’s Office, the Wayne County Sheriff’s Office and the Missouri State Highway Patrol. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
Lummi Nation member sentenced for violating Lacey Act by purchasing more than 7,000 pounds of illegally poached Chinook salmonRead the Press Release
Seattle – The owner of a wholesale fish processor, Native American Fisheries, was sentenced today in U.S. District Court in Seattle to three years of probation for violating the Lacey Act by taking more than 7,000 pounds of illegally caught Columbia River salmon and selling it commercially. Scott Kinley is a member of the Lummi Nation and knew the spring Chinook Columbia fishery was only open to Yakama Nation enrollees who were limited to fishing for subsistence and ceremonial purposes. At the sentencing hearing U.S. District Judge Lauren King noted that Kinley lied when he was stopped and questioned by fisheries officers. “You lied and told them that the fish was for tribal elders. Instead of giving all of that fish to elders or providing it for a funeral or ceremonial purposes… you sold the vast majority of it and made tens of thousands of dollars.”
“These fish were taken at a critical time, when the Yakama Nation and its fisheries partners were trying to boost spring Chinook salmon returns to the Columbia Basin,” said U.S. Attorney Nick Brown. “The high levels taken during this fishery prompted an emergency closure which hurt those tribal members who wanted fish for subsistence or ceremonial purposes.”
Boxes of illegally taken salmonAccording to records filed in the case, Kinley knowingly purchased and sold thousands of pounds of protected salmon that was not available to his competitors. The investigation revealed that Kinley sold the fish for about $11.75 per pound wholesale, while the retail price was $19.99 retail. That places the full retail value of the salmon at $143,088. Judge King ordered that $143,088 in restitution be paid to the Columbia River Intertribal Fish Commission (CRITFC) to fund habitat protection and restoration projects.
“The Columbia River Inter-Tribal Police Department and NOAA's Office of Law Enforcement work collaboratively to protect these endangered species on the Columbia River,” said Greg Busch, Assistant Director of NOAA's Office of Law Enforcement, West Coast Division. “The tribes and the entire region work too hard to protect and restore native salmon and steelhead in the Columbia River Basin to see them harvested and sold illegally.”
The program manager for the Yakama Nation Fisheries Program described the impact of the illegal sale of the poached fish as stealing from future generations. “Illegal commercial sales encourage overharvest which in turn is detrimental to salmon recovery and rebuilding efforts underway. These activities destroy our attempts at a fair system of allocation and can limit legal harvest in a given year. Lastly, the entire reason for limiting harvest is conservation and recovery, that is, to allow enough fish to make it to either spawning grounds or back to the hatcheries to ensure future generations of fish,” Donella Miller wrote in the Yakama victim impact statement.
The case was investigated by the National Oceanic and Atmospheric Administration (NOAA) Office of Law Enforcement and the Columbia River Inter-Tribal Police Department, with assistance from the Washington Department of Fish and Wildlife.
The case is being prosecuted by Assistant United States Attorney James Oesterle.
Lorain Man Sentenced to More Than 11 Years in Prison for Role in Fentanyl Trafficking ConspiracyRead the Press Release
CLEVELAND – Juan Torres Saez, 39, of Lorain, Ohio, was sentenced on Thursday, Dec. 8, 2022, to more than 11 years in prison – or 135 months – by U.S. District Judge Christopher A. Boyko after Saez pleaded guilty to his role in a conspiracy to possess and distribute fentanyl sent through the United States mail.
According to court documents, on Feb. 11, 2022, law enforcement authorities with the United States Postal Inspection Service (USPIS) obtained and executed search warrants for two packages suspected of containing narcotics. Inside the packages, officers found approximately 2 kilograms – or more than 4 pounds – of fentanyl.
Court documents state that authorities with the USPIS, Drug Enforcement Administration (DEA), Lorain County Drug Task Force, and the Lorain Police Department began an investigation into the origins and destination of the packages and determined that both were intended to be delivered to Saez at an address in Lorain.
Saez was later arrested on Feb. 14, 2022.
Saez pleaded guilty in August 2022 to conspiracy to distribute and possess with intent to distribute controlled substances, attempted possession with intent to distribute controlled substances, and use of a communication facility in the commission of a drug trafficking crime.
This case was investigated by the USPIS, DEA, Lorain County Drug Task Force, and the Lorain Police Department. This case was prosecuted by Assistant U.S. Attorney Robert J. Kolansky.
This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers.
Longview, Washington man charged with repeatedly leaving threatening voicemails for members of CongressRead the Press Release
Tacoma – A 48-year-old Longview, Washington, man was arrested this morning on a criminal complaint charging seven counts of making interstate threats, announced U.S. Attorney Nick Brown. Mark Leonetti has allegedly repeatedly called U.S. Senators and members of the House of Representatives and left voicemails threatening bodily harm. Leonetti will appear today in U.S. District Court in Tacoma.
“Making horrific and graphic threats to harm is always unacceptable, and we must always take threats of political violence seriously. In this instance, Mr. Leonetti refused to stop his conduct despite contact with law enforcement and mental health personnel,” said U.S. Attorney Brown. “We acted now because it has become clear it is the only way to safeguard the community and those serving it.”
According to the criminal complaint, in 2021, Leonetti allegedly left more than 400 voicemails for members of Congress, several of which used slurs and were threatening. This pattern of allegedly leaving voicemails for federal elected officials continued despite Leonetti being visited and warned several times by law enforcement and mental health professionals. In early September 2022, he left threatening voicemails in the voicemail box of a congresswoman. Emergency mental health professionals again contacted Leonetti after those calls. In late September and October 2022, Leonetti left additional threatening voicemails for a different senator and a congressman. The most recent voicemails were left on December 5, 2022 and contained bizarre and threatening statements about “murder” and “killing” individuals.
Making interstate threats is punishable by up to 5 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI with assistance from the U.S. Capitol Police and the Longview Police Department.
The case is being prosecuted by Assistant United States Attorney Will Dreher.
leonetti_complaint.pdfLong Island Medical Doctor Charged with Illegally Distributing Oxycodone PillsRead the Press Release
Late yesterday, in federal court in Central Islip, an 18-count indictment was returned charging Dr. Roya Jafari-Hassad with illegal distribution of oxycodone and witness tampering. Hassad was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division and Elysia M. Doherty, Assistant Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations, New York Region (HHS-OIG) announced the charges.
“As alleged, the defendant abandoned her medical oath to operate a pill mill in Nassau County, illegally dispensing oxycodone to patients for a cash fee,” stated United States Attorney Breon Peace. “This Office will continue to protect our community from bad actors who flood our streets with dangerous drugs, even if they hide behind their prescription pad.”
“A prescription pad in the wrong hands can be a deadly weapon,” said DEA Special Agent in Charge Frank Tarentino. “The diversion of prescription medication is inexcusable for medical professionals and I applaud the hard work by DEA and our law enforcement partners who brought these charges against Dr. Jafari-Hassad.”
“Health care professionals have a duty to prescribe medication responsibly to ensure the well-being of their patients. Failing to do so puts the health and safety of patients at risk and undermines critical measures to address the opioid epidemic,” said Susan A. Frisco, Acting Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General. "HHS-OIG will continue to work with our law enforcement partners to hold accountable bad actors who exploit opioid addiction for personal financial gain.”
Specifically, the investigation has disclosed that Hassad operated a medical office in Great Neck, New York, in which she charged her patients hundreds of dollars in cash in exchange for an illegal monthly oxycodone prescription. These oxycodone prescriptions had no legitimate medical purpose. The cash charge was often in addition to Hassad billing the patient’s insurance for a variety of charges, many relating to procedures that never occurred. It is estimated that Hassad made hundreds of thousands of dollars a year cash solely from the cash payments made by patients to obtain their oxycodone prescriptions.
For example, Hassad prescribed oxycodone to an undercover agent at every visit including the first visit. These visits took place over a year long period and none of the oxycodone prescriptions had a legitimate medical purpose. In addition, after a search warrant was executed at her medical offices, Hassad reached out to patients and attempted to convince them to alter their testimony about their oxycodone prescriptions.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is frequently abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor.
The Defendant:
ROYA JAFARI-HASSAD
Age: 56
Bayside, New YorkE.D.N.Y. Docket No. 22-545
Loma Linda Woman Pleads Guilty to Federal Charge for Investment Fraud that Caused More Than $2.6 Million in LossesRead the Press Release
LOS ANGELES – A San Bernardino County woman has pleaded guilty to a federal criminal charge for her involvement in an investment fraud scheme that caused more than $2.6 million in losses to investors, the Justice Department announced today.
Sharief Deona McDowell, 57, of Loma Linda, pleaded guilty Tuesday afternoon to one count of wire fraud.
According to her plea agreement, McDowell defrauded at least 28 investors by falsely representing that she would invest their money in commodity futures and options contracts. In reality, McDowell did not trade with the investors’ money and instead misappropriated the funds for her personal use. McDowell also provided investors with fabricated trade confirmations and account statements to falsely indicate that their investments were generating returns.
In addition, McDowell used money provided by new investors to repay earlier investors – a tactic often used to conceal and prolong Ponzi and other investment fraud schemes. McDowell had a history of defrauding investors and committed this fraud in violation of a prior judicial order.
United States District Judge André Birotte Jr. scheduled a March 10, 2023 sentencing hearing, at which time McDowell will face a statutory maximum sentence of 20 years in federal prison.
The FBI is investigating this case.
Assistant United States Attorney Byron R. Tuyay of the Riverside Branch Office and Trial Attorney Lauren Archer of the Justice Department Criminal Division’s Fraud Section are prosecuting this case.
Lee Man Charged with Distribution of Child Sexual Abuse MaterialsRead the Press Release
CONCORD, N.H. – Joshua Olsen, 30, of Lee, New Hampshire, was charged in federal court with distribution of child sexual abuse materials, United States Attorney Jane E. Young announced today.
Olsen was arrested without incident on Friday, December 9, after investigators executed a search warrant at his residence in Lee. According to court documents and statements made in court, in November, Olsen distributed child pornography to an undercover FBI agent through on-line chat platforms.
Olsen had an initial appearance hearing in federal district court last Friday. At that time, the Court ordered him detained pending a detention hearing that was scheduled for today. At today’s detention hearing the Court ordered Olsen detained pending trial.
This case was investigated by the FBI and the Lee Police Department. It is being prosecuted by Assistant United States Attorney Kasey Weiland.
A complaint is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
###
Lebanon Man Indicted on Attempted Child Enticement ChargeRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mason Morey, age 26, of Lebanon, Pennsylvania, was indicted yesterday by a federal grand jury on a charge of attempted online enticement.
According to United States Attorney Gerard M. Karam, the indictment alleges that between November 28, 2022 and December 8, 2022, in Luzerne County, Morey used the internet to attempt to entice a minor to engage in sexual activity.
The case was investigated by Homeland Security Investigations (HSI). Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
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 justice.gov/psc.
The maximum penalty under federal law for this offense is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Lab Owner Convicted in $463 Million Genetic Testing Scheme to Defraud MedicareRead the Press Release
A federal jury in the Southern District of Florida convicted a Georgia man today for his role in a scheme to defraud Medicare by submitting over $463 million in genetic and other laboratory tests that patients did not need and that were procured through the payment of kickbacks.
According to court documents and evidence presented at trial, Minal Patel, 44, of Atlanta, owned LabSolutions LLC (LabSolutions), a lab enrolled with Medicare that performed sophisticated genetic tests. Patel conspired with patient brokers, telemedicine companies, and call centers to target Medicare beneficiaries with telemarketing calls falsely stating that Medicare covered expensive cancer genetic tests. After the Medicare beneficiaries agreed to take a test, Patel paid kickbacks and bribes to patient brokers to obtain signed doctors’ orders authorizing the tests from telemedicine companies. To conceal the kickbacks, Patel required patient brokers to sign contracts that falsely stated that they were performing legitimate advertising services for LabSolutions.
The telemedicine doctors approved the expensive testing even though they were not treating the beneficiaries and often did not even speak with them. From July 2016 through August 2019, LabSolutions submitted more than $463 million in claims to Medicare, including for medically unnecessary genetic tests, of which Medicare paid over $187 million. In that timeframe, Patel personally received over $21 million in Medicare proceeds.
Patel was convicted of one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, one count of conspiracy to defraud the United States and to pay and receive illegal health care kickbacks, four counts of paying illegal health care kickbacks, and one count of conspiracy to commit money laundering. He is scheduled to be sentenced on March 7, 2023, and faces a maximum penalty of 20 years in prison on the first conspiracy count, 10 years on each health care fraud count, five years on the second conspiracy count, 10 years on each kickback count, and 20 years on the third conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI Criminal Investigative Division; Special Agent in Charge Robert M. DeWitt of the FBI Miami Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jamie de Boer, Emily Gurskis, Reginald Cuyler Jr., and Katherine Rookard of the Criminal Division’s Fraud Section are prosecuting the case.
The case was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged.
Keshena Man Indicted for Drug and Firearms Offenses on Menominee Indian Reservation.Read the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on December 13, 2022, a federal grand jury returned an indictment charging Peter D. Boyd (age 36), of Keshena, Wisconsin, with controlled substance and firearms offenses on the Menominee Indian Reservation. The indictment charged Boyd with the following counts:
COUNT
CHARGE
PENALTY
One
Possession with Intent to Distribute Methamphetamine, 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)
Mandatory minimum sentence of 5 years, up to 40 years in prison.
Two
Possession of a Firearm in Furtherance of Drug Trafficking, 18 U.S.C. § 924(c)
Mandatory minimum consecutive sentence of 5 years, up to life in prison.
Boyd also faces a period of supervised release, possible fines, and a special assessment for each count if convicted.
According to filed court documents, on or about October 15, 2022, Boyd possessed 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine and possessed a firearm in furtherance of the intended distribution of the methamphetamine.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer Kenneth.Gales@usdoj.gov
414-297-1700
Follow us on Twitter
Kansas Man Indicted for 2019 Child Sexual Assault on Menominee Indian Reservation.Read the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on December 13, 2022, a federal grand jury returned an indictment charging a man with a sexual assault of a child reportedly committed in 2019 on the Menominee Indian Reservation. The indictment named Gerald L. Pamaska, Jr., (age 54) formerly of Keshena and currently residing in Lawrence, Kansas.
The indictment charges Pamaska with Aggravated Sexual Abuse in violation of 18 U.S.C. §§ 2241(c) and 1153(a). If convicted, Pamaska faces a mandatory minimum prison sentence of 30 years and up to life in prison. Pamaska also faces supervised release and potential fines if convicted of the charge.
According to filed court documents, on or about July 25, 2019, Pamaska engaged in a sexual act with a child who was under 12 years of age at a location on the Menominee Indian Reservation.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier will prosecute.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
# # #
Public Information Officer Kenneth.Gales@usdoj.gov
414-297-1700
Follow us on Twitter
Justice Department Seeks to Shut Down Dallas Area Licensor of Tax Preparation BusinessesRead the Press Release
The United States filed a complaint in the U.S. District Court for the Northern District of Texas on Dec. 12 seeking to bar a Dallas-area licensor of tax preparation businesses, and his business, from franchising or licensing the tax preparation business and from assisting in the preparing of federal income tax returns for others.
The complaint alleges that Kevin Murphy, through his tax preparation licensing business Umbrella Financial Services LLC, has had over one hundred licensees in a dozen states across the country. The complaint contends that some Umbrella Financial Services licensees have engaged in misconduct by preparing tax returns for customers, which report fictitious businesses, inflate business expenses for legitimate businesses, claim improper education credits, and report false income in order to claim inflated tax credits. The complaint also alleges that Umbrella Financial Services improperly shared Electronic Filing Identification Numbers and that some preparers associated with Umbrella Financial Services did not use a properly assigned Preparer Tax Identification Numbers.
The complaint also seeks an injunction against Ashley Fisher to bar her from preparing tax returns for others. As alleged in the complaint, Fisher is Umbrella Financial Services’ Chief Knowledge Officer and also owns an Umbrella-licensed tax preparation business.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
Justice Department Secures Settlement with New Jersey IT Recruiting Firm to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Secureapp Technologies LLC (Secureapp), a New Jersey IT recruiting and labor staffing company. The settlement resolves the department’s determination that Secureapp violated the Immigration and Nationality Act (INA) by posting discriminatory job advertisements that solicited applications only from non-U.S. citizens who sought temporary work visa sponsorship or who had immigration statuses associated with certain employment-based temporary visas.
“When employers invite applications only from candidates with specified immigration statuses, they deter individuals from applying and deny them a fair chance to be considered,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to knocking down these unlawful discriminatory barriers.”
The department’s investigation determined that starting in January 2019 and continuing for more than a year, Secureapp posted at least 12 facially discriminatory job advertisements that sought only non-U.S. citizens seeking sponsorship to work or who already possessed an employment-based visa. In so doing, Secureapp deterred U.S. citizens and other workers with permission to work in the United States without sponsorship (including asylees, refugees and lawful permanent residents) from applying to the job advertisements and receiving fair consideration for the employment opportunities. The INA’s anti-discrimination provision generally prohibits employers from recruiting or refusing to hire workers based on their citizenship or immigration status.
Under the settlement, Secureapp will pay $26,000 in civil penalties to the United States. The agreement also requires Secureapp to train its recruiters on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email IER@usdoj.gov; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Secures Landmark Agreement with Hesperia and Sheriff’s Department to End ‘Crime-Free’ Rental Housing ProgramRead the Press Release
LOS ANGELES – The Justice Department announced today it has secured a landmark agreement to resolve a race and national origin discrimination lawsuit against the City of Hesperia and the San Bernardino County Sheriff’s Department that alleged the defendants engaged in a pattern or practice of discrimination against Black and Latino individuals and communities in Hesperia through the adoption and enforcement of a so-called “crime-free” rental housing program.
This is the Justice Department’s first resolution requiring the complete end of a “crime-free” rental housing program.
“The Justice Department is committed to ensuring housing policies do not discriminate against individuals based on their race, including so-called ‘crime-free’ programs,” said Associate Attorney General Vanita Gupta. “In addition to promoting fair access to housing, today’s resolution will protect individuals who call for emergency or law enforcement assistance from retaliation.”
“The right to fair housing is fundamental and should not be infringed,” said U.S. Attorney Martin Estrada. “This important settlement with Hesperia prevents the so-called ‘crime-free’ program from devastating individuals and families with the emotional upheaval and financial hardship that accompanies evictions that occur with little notice. Today’s agreement and consent order will bring real change to Hesperia and beyond.”
“So-called ‘crime-free’ ordinances are often fueled by racially discriminatory objectives, destabilize communities and promote modern-day racial segregation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These ordinances can uproot lives, force families into homelessness and result in loss of jobs, schooling, and opportunities for people who are disproportionately low-income people of color. ‘Crime-free’ ordinances may also constitute a discriminatory solution in search of a problem and run afoul of the core goals underlying the Fair Housing Act. As this settlement makes clear, the Justice Department will continue to fight discriminatory and unlawful ‘crime-free’ ordinances across the country and work to ensure that everyone has fair and equal access to housing.”
“Discriminatory housing policies based on race and national origin, including those sanctioned and implemented by local governments, have no place in our society,” said Principal Deputy Assistant Secretary Demetria L. McCain of the U.S. Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity. “This agreement sends a strong message that HUD and DOJ will continue to work together to vigorously enforce our nation’s fair housing laws.”
The United States’ Lawsuit
The department’s lawsuit, filed in 2019 based on an investigation by HUD, alleged that the City of Hesperia, with substantial support from the sheriff’s department, enacted a “crime-free” program with the intent of addressing what one city councilmember called a “demographical problem” – Hesperia’s increasing Black and Latin population.
The program required all rental property owners to evict tenants upon notice by the sheriff’s department that the tenants had engaged in any alleged “criminal activity” on or near the property – regardless of whether those allegations resulted in an arrest, charge or conviction. In addition, the program encouraged housing providers to evict entire families when only one household member engaged in purported criminal activity and even notified landlords to evict survivors of domestic violence. It also required all landlords to screen potential tenants through the sheriff’s department, which would notify landlords whether the applicant had “violated” the rules of the program in the past. The City of Hesperia also later passed an ordinance relating to business licenses for rental housing properties that made registration in the “crime-free” program mandatory and imposed excessive fees.
The department’s complaint relied in part on analysis conducted by HUD, which showed that Black renters were almost four times more likely, and Latino renters 29 percent more likely, to be evicted under the program than white renters. HUD’s analysis also showed that over 96 percent of individuals and households evicted under the “crime-free” ordinance lived in majority-minority Census blocks, even though only 79 percent of rental households in Hesperia live in such blocks.
The department’s lawsuit alleged that hundreds of people were targeted under Hesperia’s “crime-free” ordinance.
The program had real and devastating impacts on families across the City of Hesperia:
- For example, a Black woman living in Hesperia called the police repeatedly to come to her home because she did not feel safe with her boyfriend. The sheriff’s department notified her landlord about the numerous domestic disturbance calls and threatened the landlord with a misdemeanor. The landlord then forced the woman and her children out of their home. With nowhere to go, the family moved into a motel and attempted to rent another home in Hesperia, but the applications were repeatedly denied. Unable to rent another home for her family in Hesperia, she was forced to uproot her life, leave a house full of furniture behind, and move across the country.
- The program also impacted a Latina woman living in Hesperia who called the police to get assistance for her boyfriend, who was experiencing a mental health crisis at her home. When the sheriff’s department arrived before the paramedics, her boyfriend was arrested. The woman then received a notice to vacate based on the supposed violation of the ordinance, and she was forced to temporarily move into a motel.
- One Black family was torn apart after a mother’s call to the police for help got them kicked out of their home and placed on the violators list, making it impossible to find another rental in Hesperia. The parents moved away and made the impossible decision to leave their teenage daughter behind to finish high school.
The Consent Order
As part of the resolution of this case, Hesperia already has repealed its “crime-free” ordinance, modified the rental housing business license ordinance, and reduced the fees associated with rental housing business licenses. The sheriff’s department also has agreed to stop enforcement of Hesperia’s “crime-free” program.
Under the proposed consent order, which was filed today but still must be approved by a federal judge, the defendants will spend $950,000 and commit to significant injunctive relief to remedy the effects of the “crime-free” and business license programs, including: a settlement fund of $670,000 to compensate individuals harmed by the program; the payment of $100,000 in civil penalties; funding of $95,000 for affirmative marketing to promote fair housing in Hesperia; funding of $85,000 for partnerships with community-based organizations; notifications to property managers, landlords, and owners of the changes to the ordinances and fee schedule; submission of certain policies, procedures and ordinances for the United States’ review and approval prior to adoption; adoption of non-discrimination policies and complaint procedures; designation of civil rights coordinators; anti-discrimination training; a fair housing needs assessment; and regular reporting to the court and the United States during the order’s five-year term.
Individuals who believe they were harmed by Hesperia’s “crime-free” program may be entitled to compensation under the settlement fund and should contact the Justice Department at Hesperia.Investigation@usdoj.gov or 1-833-223-1571.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title VI of the Civil Rights Act of 1964 prohibits discrimination on the ground of race, color, or national origin in programs and activities receiving federal financial assistance.
Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division handled this matter.
Individuals in the seven counties of the Central District of California may report housing discrimination by contacting the United States Attorney’s Office at (213) 894-2879 or emailing USACAC.CV-CivilRights@usdoj.gov.
Justice Department Secures Landmark Agreement with City and Police Department Ending “Crime-Free” Rental Housing Program in Hesperia, CaliforniaRead the Press Release
The Justice Department announced today it has secured a landmark agreement to resolve a race and national origin discrimination lawsuit against the City of Hesperia, California, and the San Bernardino County Sheriff’s Department. The department’s lawsuit alleged that the City and Sheriff’s Department engaged in a pattern or practice of discrimination against Black and Latinx individuals and communities in Hesperia, in violation of the Fair Housing Act and Title VI of the Civil Rights Act of 1964, through the adoption and enforcement of a so-called “crime-free” rental housing program. This is the Justice Department’s first resolution requiring the complete end of a “crime-free” rental housing program.
“The Justice Department is committed to ensuring housing policies do not discriminate against individuals based on their race, including so-called ‘crime-free’ programs,” said Associate Attorney General Vanita Gupta. “In addition to promoting fair access to housing, today’s resolution will protect individuals who call for emergency or law enforcement assistance from retaliation.”
“So-called ‘crime-free’ ordinances are often fueled by racially discriminatory objectives, destabilize communities and promote modern-day racial segregation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These ordinances can uproot lives, force families into homelessness and result in loss of jobs, schooling and opportunities for people who are disproportionately low-income people of color. ‘Crime-free’ ordinances may also constitute a discriminatory solution in search of a problem and run afoul of the core goals underlying the Fair Housing Act. As this settlement makes clear, the Justice Department will continue to fight discriminatory and unlawful ‘crime-free’ ordinances across the country and work to ensure that everyone has fair and equal access to housing.”
“The right to fair housing is fundamental and should not be infringed,” said U.S. Attorney Martin Estrada for the Central District of California. “This important settlement with Hesperia prevents the so-called ‘crime-free’ program from devastating individuals and families with the emotional upheaval and financial hardship that accompanies evictions that occur with little notice. Today’s agreement and consent order will bring real change to Hesperia and beyond.”
“Discriminatory housing policies based on race and national origin, including those sanctioned and implemented by local governments, have no place in our society,” said Principal Deputy Assistant Secretary Demetria L. McCain of the Department of Housing and Urban Development (HUD)’s Office of Fair Housing and Equal Opportunity. “This agreement sends a strong message that HUD and DOJ will continue to work together to vigorously enforce our nation’s fair housing laws.”
United States’ Lawsuit
The department’s lawsuit, filed in 2019 based on an investigation by HUD, alleged that the City of Hesperia, with substantial support from the Sheriff’s Department, enacted a “crime-free” program with the intent of addressing what one City Councilmember called a “demographical problem:” Hesperia’s increasing Black and Latinx population.
The program required all rental property owners to evict tenants upon notice by the Sheriff’s Department that the tenants had engaged in any alleged “criminal activity” on or near the property — regardless of whether those allegations resulted in an arrest, charge, or conviction. In addition, the program encouraged housing providers to evict entire families when only one household member engaged in purported criminal activity and even notified landlords to evict survivors of domestic violence. It also required all landlords to screen potential tenants through the Sheriff’s Department, which would notify landlords whether the applicant had “violated” the rules of the program in the past. The City of Hesperia also later passed an ordinance relating to business licenses for rental housing properties that made registration in the “crime-free” program mandatory and imposed excessive fees.
The department’s complaint relied in part on analysis conducted by HUD, which showed that Black renters were almost four times more likely, and Latinx renters 29% more likely, to be evicted under the program than white renters. HUD’s analysis also showed that over 96% of individuals and households evicted under the “crime-free” ordinance lived in majority-minority Census blocks, even though only 79% of rental households in Hesperia live in such blocks.
The department’s lawsuit alleged that hundreds of people were targeted under Hesperia’s “crime-free” ordinance.
The program had real and devastating impacts on families across the City of Hesperia:
- For example, a Black woman living in Hesperia called the police repeatedly to come to her home because she did not feel safe with her boyfriend. The Sheriff’s Department notified her landlord about the numerous domestic disturbance calls and threatened the landlord with a misdemeanor. The landlord then forced the woman and her children out of their home. With nowhere to go, the family moved into a motel and attempted to rent another home in Hesperia, but the applications were repeatedly denied. Unable to rent another home for her family in Hesperia, she was forced to uproot her life, leave a house full of furniture behind and move across the country.
- The program also impacted a Latina woman living in Hesperia who called the police to get assistance for her boyfriend, who was experiencing a mental health crisis at her home. When the Sheriff’s Department arrived before the paramedics, her boyfriend was arrested. The woman then received a notice to vacate based on the supposed violation of the ordinance, and she was forced to temporarily move into a motel.
- One Black family was torn apart after a mother’s call to the police for help got them kicked out of their home and placed on the violators list, making it impossible to find another rental in Hesperia. The parents moved away and made the impossible decision to leave their teenage daughter behind to finish high school.
Consent Order
As part of the resolution of this case, Hesperia already has repealed its “crime-free” ordinance, modified the rental housing business license ordinance, and reduced the fees associated with rental housing business licenses. The Sheriff’s Department also has agreed to stop enforcement of Hesperia’s “crime-free” program.
Under the proposed consent order, which still must be approved by the U.S. District Court for the Central District of California, the defendants will spend $950,000 and commit to significant injunctive relief to remedy the effects of the “crime-free” and business license programs, including: a settlement fund of $670,000 to compensate individuals harmed by the program; the payment of $100,000 in civil penalties; funding of $95,000 for affirmative marketing to promote fair housing in Hesperia; funding of $85,000 for partnerships with community-based organizations; notifications to property managers, landlords and owners of the changes to the ordinances and fee schedule; submission of certain policies, procedures and ordinances for the United States’ review and approval prior to adoption; adoption of non-discrimination policies and complaint procedures; designation of civil rights coordinators; anti-discrimination training; a fair housing needs assessment; and regular reporting to the court and the United States during the order’s five-year term.
Individuals who believe they were harmed by Hesperia’s “crime-free” program may be entitled to compensation under the settlement fund and should contact the Justice Department at Hesperia.Investigation@usdoj.gov or 1-833-223-1571.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title VI of the Civil Rights Act of 1964 prohibits discrimination on the ground of race, color, or national origin in programs and activities receiving federal financial assistance. More information about the Civil Rights Division and the civil rights laws it enforces is available online at https://www.justice.gov/crt. Individuals may report housing discrimination by submitting a report online at https://civilrights.justice.gov, calling the Justice Department at 1-833-591-0291, or emailing fairhousing@usdoj.gov. Individuals may also report discrimination by contacting HUD at 1-800-669-9777, or by filing a complaint online at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.
Español
Jury Finds Sioux City Man Guilty of Meth ChargesRead the Press Release
A man who conspired to distribute methamphetamine and possessed with intent to distribute methamphetamine was convicted by a jury on December 13, 2022, after a two-day trial in federal court in Sioux City.
Kenneth John David Schneiders, 34, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of possessing with intent to distribute methamphetamine all within 1,000 feet of a protected location, namely the Sioux City Alternative School and Opportunities School, each located in the Boys and Girls Home in Sioux City, Iowa.
The evidence at trial showed that Schneiders was communicating with others for the sale of methamphetamine on December 2, 2019. Law enforcement was made aware of the discussions through a confidential source, and ultimately located Schneiders at the Boys and Girls Home parking lot with approximately 2 ounces of methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Schneiders was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Schneiders faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,000 fine, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4032.
Follow us on Twitter @USAO_NDIA.
Jackson Gang Member Sentenced to 57 Months in Prison for Possession of Firearm Linked to Multiple ShootingsRead the Press Release
DETROIT – A violent gang member and three-time convicted felon from Jackson, Michigan was sentenced to 57 months in prison today for being a felon in possession of a firearm, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Craig Kailimai, Assistant Special Agent in Charge of the Detroit Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Jackson County Sheriff Gary Schuette.
United States District Court Judge Laurie J. Michelson sentenced Maurice Charvake Knighten, 24, of Jackson, Michigan, following his guilty plea to felon in possession of a firearm.
According to court records, Knighten was arrested on November 18, 2021 by the Jackson County Sheriff’s Office after the firearm was found during a traffic stop. The ATF then tested the firearm and ballistically linked the firearm to four prior shooting incidents. Three of the shooting incidents were in Jackson.
“The gun seized in this investigation will no longer be used to terrorize this community. My office is committed to removing violent offenders using guns from the streets.” said U.S. Attorney Ison.
“Knighten is a known member of a violent and vicious criminal gang. Today’s sentencing is an important component to the reduction in violent firearms related crimes,” said, Assistant Special Agent in Charge Craig Kailimai, “We are proud of the collaborative efforts of the U.S. Attorney’s office, along with our federal, state, and local partners in getting violent repeat offenders off our streets.”
“Jackson County is a safer place today! That’s because admitted gang member, and multi-convicted felon, Maurice Knighten has been sentenced to federal prison,” said Sheriff Schuette. “On November 18, 2021, Deputy Codi Barlond arrested Knighten in possession of a handgun. Ballistics have shown the handgun to be linked to three shootings in Jackson and one shooting in Lansing. All of these shootings were cowardice “drive-by” style shootings, typical of gang members, which threaten lives and spread fear throughout the community. Through an excellent police investigation, and assistance from the United States Attorney’s Office, Knighten’s reign of cowardice intimidation has come to a close. I deeply appreciate the partnership the Jackson County Sheriff’s Office has with the United States Attorney’s Office in bringing this violent criminal to justice.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jackson County Sheriff’s Department, Michigan State Police, the City of Jackson Police Department, and the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorneys Andrew R. Picek and Matthew Roth.
Insider at Major Financial Services Organization and Retired Financial Professional Charged with Multimillion Dollar Front-Running SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that LAWRENCE BILLIMEK, a trader at a major financial services organization (the “Employer’), and ALAN WILLIAMS, a retired financial professional and active day-trader, were charged in an indictment in Manhattan federal court with securities fraud and wire fraud in connection with an extensive insider trading scheme, in which they stole confidential information about the trade orders of the Employer in order to conduct over a thousand timely, profitable securities trades in the same stocks as the Employer. BILLIMEK attempted to hide his conduct by using prepaid, unregistered “burner” phones, and WILLIAMS sent millions of dollars back to BILLIMEK for sharing the confidential information. BILLIMEK was arrested today in the Western District of Texas and WILLIAMS was arrested in the District of Oregon.
U.S. Attorney Damian Williams said: “By stealing confidential trade information from a major financial services organization, Lawrence Billimek betrayed the trust and confidence of his employer and schemed with Alan Williams to make tens of millions of dollars of illegal profit. Billimek and Williams tried to cover their tracks by using burner phones and secret payments, but their scheme has now been laid bare.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged, the defendants engaged in a years-long scheme in which Mr. Billimek obtained information regarding his employer’s intent to make relatively large trades in certain stocks. In turn, this allowed Mr. Williams to trade in the same stocks in advance and realize substantial ill-gotten profits. These types of insider-trading schemes satisfy the greedy ambitions of nefarious actors at the expense of average investors. The FBI remains steadfast in our efforts to ensure our financial markets are a level playing field for all by bringing to justice those who would seek to illegally exploit them.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
LAWRENCE BILLIMEK has been employed at the Employer since approximately 2012. The Employer is a major financial services organization that provides asset management services with over $200 billion in assets. ALAN WILLIAMS spent years working as a trader in the financial services industry. WILLIAMS is currently retired but is an active day-trader.
The Front Running Scheme
Based on his position as a trader at the Employer, BILLIMEK had access to the trade information and trade orders of the Employer. Like most large asset managers, the Employer had rules and regulations concerning employees’ personal trading, including requirements about the confidentiality of client information and prohibitions against insider trading and personal trading in the same securities as the Employer. Because of the size of the Employer’s trade orders, trades by the Employer often caused temporary movements in the price of the securities they traded. For example, if the Employer engaged in a large purchase of stock, the increased demand could cause a rise in the stock price, and if the Employer engaged in a large sale of stock, the increased supply could cause a drop in the stock price. Because BILLIMEK had access to the Employer’s trade orders, he knew in advance when a particular stock price would move up or down based on that trading.
WILLIAMS was an active day trader through at least two retail brokerage accounts. From at least 2016 through 2022, after obtaining information about the Employer’s upcoming trading activity from BILLIMEK, WILLIAMS bought or sold the same securities that the Employer would be buying or selling in order to profit through the subsequent movement of the stock that would occur along with the Employer’s trading. WILLIAMS would then exit those positions once the Employer’s trading was underway or complete, often within minutes. For example, if WILLIAMS learned from BILLIMEK that the Employer would be buying a particular stock, WILLIAMS purchased that stock beforehand. Then, as the Employer made relatively large purchases, the stock price would increase and WILLIAMS would sell those same stock, on the same day, at a profit.
BILLIMEK and WILLIAMS engaged in these front-running trades on at least over a thousand occasions between 2016 and 2022. In order to hide their communication throughout the scheme, BILLIMEK used prepaid, unregistered “burner” phones to provide confidential information as well as trading instructions to WILLIAMS. In total, WILLIAMS’ trading based on the confidential trade information from BILLIMEK generated tens of millions of dollars in profits, and WILLIAMS shared millions of dollars of those profits with BILLIMEK through checks and wire transfers. At times, BILLIMEK also provided false and misleading information to financial institutions about the purpose and nature of those transfers, including referring to them as gifts.
* * *
LAWRENCE BILLIMEK, 51, of Hailey, Idaho, and ALAN WILLIAMS, 77, of West Linn, Oregon, are each charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud, which carry a total maximum sentence of 45 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the work of the FBI. Mr. Williams further thanked the Office of United States Securities and Exchange Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason Richman and Daniel Tracer are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Indiana Man Sentenced to Two and a Half Years in Federal Prison for Conspiring to “Straw Purchase” Firearm Used to Fatally Shoot Chicago Police Officer Ella FrenchRead the Press Release
CHICAGO — An Indiana man was sentenced today to two and a half years in federal prison for conspiring to “straw purchase” a handgun that was later used to fatally shoot Chicago Police Officer Ella French and seriously wound her partner.
JAMEL DANZY purchased the semiautomatic handgun at a federal firearms dealer in Hammond, Ind., on March 18, 2021, and falsely certified on the required forms that he was the actual buyer. Danzy bought the gun at the request of an individual whom Danzy knew resided in Illinois and was not lawfully allowed to purchase a firearm due to a felony criminal conviction. Danzy provided the firearm to the Illinois resident shortly after the purchase.
Officer French and her partner were shot on Aug. 7, 2021, during a traffic stop of a vehicle on the South Side of Chicago. The handgun purchased by Danzy was recovered by law enforcement at the scene of the shooting.
Danzy, 30, of Hammond, Ind., pleaded guilty earlier this year to a charge of conspiracy to violate federal firearm laws, including knowingly transferring and giving a firearm to an out-of-state resident, knowingly making a false written statement to acquire a firearm, and knowingly disposing of a firearm to a convicted felon.
U.S. District Judge Robert W. Gettleman imposed the 30-month sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Prashant Kolluri.
“The tragic consequences of August 7, 2021, provide a vivid example of how putting guns into the wrong hands enables the violence that follows,” said U.S. Attorney Lausch. “The passionate and thoughtful victim impact statements presented at today’s sentencing hearing demonstrate the compelling need for stiff prison sentences to deter this conduct. Straw purchasing is not a victimless crime. Deterrence requires enforcement, and our office will continue to use every available federal tool to prosecute straw purchasers and hold them accountable.”
“This tragedy would have been avoided had the defendant not purchased a firearm on behalf of someone who cannot lawfully possess one,” said ATF Acting SAC Matthews. “Investigating trafficking schemes such as straw purchasing will remain a priority for our agents, who partner every day with the Chicago Police Department to ensure illegal firearms are removed from our community.”
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with ATF, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Houston Resident Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – ALEJANDRO MUNOZ, age 47, a resident of Houston, Texas, was sentenced on December 8, 2022 by U.S. District Judge Eldon E. Fallon to a term of twenty (20) months’ imprisonment followed by a term of three (3) years’ supervised release and a 100.00 mandatory special assessment fee after pleading guilty to a one-count indictment that charged him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in October of 2014, Special Agents with the Drug Enforcement Administration, through an investigation, identified MUNOZ as a supplier of heroin and cocaine hydrochloride to customers in Houston, Texas and New Orleans.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration offices in New Orleans, Louisiana and Houston, Texas, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Houston Resident Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – ALEJANDRO MUNOZ, age 47, a resident of Houston, Texas, was sentenced on December 8, 2022 by U.S. District Judge Eldon E. Fallon to a term of twenty (20) months’ imprisonment followed by a term of three (3) years’ supervised release and a 100.00 mandatory special assessment fee after pleading guilty to a one-count indictment that charged him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in October of 2014, Special Agents with the Drug Enforcement Administration, through an investigation, identified MUNOZ as a supplier of heroin and cocaine hydrochloride to customers in Houston, Texas and New Orleans.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration offices in New Orleans, Louisiana and Houston, Texas, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Honduran Sexual Predator Sentenced for Trafficking Minor from MexicoRead the Press Release
DEL RIO, Texas – A Honduran national was sentenced Thursday to 188 months in prison and five years of supervised release for transporting a minor with the intent to engage in criminal sexual activity.
According to court documents, Onilson Dario Juarez-Mendez, 41, illegally entered the United States by wading across the Rio Grande River near Eagle Pass, Texas, in November 2019, accompanied by a juvenile female. The girl denied Juarez-Mendez’s claims that she was his stepdaughter and stated that he had been sexually assaulting her along their trip. An investigation verified her claims and revealed that Juarez-Mendez had been extorting the girl’s mother for payment to deliver her to the U.S.
“This case illustrates the lengths and degrees this office will go to seek justice for the victims of heinous crimes,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I’d like to express my appreciation for the Department of Homeland Security Investigations and the U.S. Border Patrol, whose tireless work in this case made this successful prosecution possible.”
“This case is a stark reminder of just how callous human smugglers can be when it comes to exploiting individuals for money whether they are adults or minors,” said Deputy Special Agent in Charge Alejandro Amaro of HSI in Laredo. “This human smuggler pretended to be a relative and then used extortion methods to attempt to obtain money from the family. It clearly illustrates how criminals will illegally smuggle people for personal profit ahead of public safety. This is why HSI continues to work aggressively to bring smugglers to justice.”
HSI and U.S. Border Patrol investigated the case.
Assistant U.S. Attorney Joshua Banister prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
###
Happy Valley Man Sentenced for Illegally Trafficking Counterfeit Gun Parts for Use as Airsoft AccessoriesRead the Press Release
PORTLAND, Ore.—On December 13, 2022, a Happy Valley, Oregon man was sentenced to federal probation for illegally trafficking counterfeit gun accessories, including suppressors, scopes, grips and sights, from China for resale as airsoft gun accessories.
Johnny Li, 25, was sentenced to five years’ federal probation, including 180 days of home detention, and ordered to pay $281,628 in restitution.
According to court documents, sometime in 2019, Li began trafficking counterfeit gun parts he purchased from China—often through Alibaba.com, one of the world’s largest online commerce companies—into the U.S. for resale online via his website SupplyAirsoft.com. In December 2019, U.S. Customs and Border Protection seized 35 counterfeit laser sights, labeled as “Toy Telescopes”, sent from a Chinese company to Li’s home in Happy Valley. CBP sent Li a letter notifying him of the seizure. Several months later, in May 2020, CBP seized additional rifle sights en route to Li and again notified him of the seizure.
On October 27, 2020, federal agents executed a search warrant on Li’s residence and seized hundreds of counterfeit gun parts and accessories. Altogether, the counterfeit items seized had an estimated value of more than $281,000.
On November 9, 2021, a federal grand jury in Portland returned an indictment charging Li with trafficking in counterfeit goods. On June 23, 2022, he pleaded guilty to the single charge.
This case was investigated by Homeland Security Investigations (HSI), the Portland Police Bureau (PPB), and the Oregon Intellectual Property Task Force. It was prosecuted by Quinn P. Harrington and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon.
Created in October 2011 by PPB, the Oregon Intellectual Property Task Force (formerly called the Intellectual Property Crimes Enforcement Team) investigates and enforces intellectual property crime, protecting the public’s health, safety, and economic welfare by interrupting the flow of counterfeit products. Since its founding, the task force has grown to include members from HSI, the U.S. Postal Inspection Service, Beaverton Police Department, Woodburn Police Department, Tigard Police Department, Washington County Sheriff’s Office, Washington County District Attorney’s Office, Multnomah County District Attorney’s Office and U.S. Attorney’s Office for the District of Oregon.
Anyone who has information about counterfeiting, or any of violations of intellectual property rights, are encouraged to submit a tip to the National Intellectual Property Rights Coordination Center (IPR Center) by visiting www.iprcenter.gov/report.
Hancock County man indicted in international drug operationRead the Press Release
WHEELING, WEST VIRGINIA - A Hancock County man has been charged with acquiring more than 50,000 pills from Europe for redistribution in the United States.
United States Attorney William Ihlenfeld announced today that Thomas O. McGowan, age 50, has been indicted on federal drug charges after an investigation revealed that he had received shipments from Bulgaria containing large amounts of Schedule II and Schedule IV controlled substances. The shipments to McGowan were concealed in large spools of yarn to avoid detection.
After the packages were delivered, agents recovered 58,498 pills from McGowan’s New Cumberland residence and learned that he had been repackaging the pills into quantities of either 90 or 180 for sale. The substances seized include Diazepam, Lorazepam, Tapentadol and Zolpidem. McGowan faces a total for four charges, each alleging that he possessed a controlled substance with the intent to deliver.
“U.S. Custom and Border agents are to be commended for identifying a suspicious inbound international parcel and then quickly coordinating with agents in West Virginia to make an arrest,” said United States Attorney Ihlenfeld. “These collaborative efforts disrupted a sophisticated operation and prevented the diversion of powerful and addictive medication.”
The matter is being prosecuted by Assistant U.S. Attorney Shawn Adkins. It was investigated by Homeland Security Investigations, the Drug Enforcement Administration, the Hancock-Brooke-Weirton Drug Task Force, the Wheeling Police Department, the West Virginia State Police, and the Metro Drug Enforcement Network Team.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.
Four Defendants Sentenced for CounterfeitingRead the Press Release
LAFAYETTE, La. – Four defendants involved in two separate counterfeiting cases were sentenced today, announced United States Attorney Brandon B. Brown. United States District Judge David C. Joseph sentenced the four defendants as follows:
Joshua Michael Dore, 38, of Lafayette, Louisiana, was sentenced to 36 months in prison, followed by 3 years of supervised release. Dore was convicted on June 2, 2022, by a federal jury of defrauding the United States government by falsely making counterfeit obligations. Evidence presented at trial showed that on September 18, 2020, officers with the Lafayette Police Department executed a search warrant at a residence on Rue Du Jardin in Lafayette. Dore was a resident of the detached apartment of that residence. During their search of the premises, officers located $1, $10, $20, and $100 counterfeit Federal Reserve Notes (FRNs), along with paraphernalia used to create these counterfeit notes. In addition, several sheets of printed FRNs were located inside the main residence. Dore was convicted of having bills in those denominations in his possession.
In a second and unrelated case, the three following defendants were sentenced by United States District Judge David C. Joseph:
Creig Matthew Jacquneaux, 48, of Lafayette, was sentenced to 16 months in prison, followed by 2 years of supervised release.
Jeffrey Wilson, 30, of Lafayette, was sentenced to 21 months in prison, followed by 2 years of supervised release.
Beau Bertrand, 34, of Breaux Bridge, was sentenced to 10 months in prison, followed by 2 years of supervised release.
On December 6, 2021, law enforcement officers with the St. Martin Parish Sheriff’s Office and the United States Secret Service executed a search warrant at a residence on 6th Street in Breaux Bridge, Louisiana. During the execution of the search warrant, agents encountered Jacquneaux and Wilson, who were present inside a dwelling on the property, and seized counterfeit Federal Reserve Notes (FRNs) in denominations of $20, $50 and $100. In addition to the counterfeit FRNs, officers located several genuine FRNs, printers and FRNs soaking in chemical solutions in order to “bleach” the ink from them.
Jacquneaux and Wilson admitted to their involvement in a counterfeiting operation and each pleaded guilty to the indictment charging them with defrauding the United States government by falsely making counterfeit obligations. Both Jacquneaux and Wilson also admitted to passing counterfeit FRNs in the Breaux Bridge and Lafayette areas.
Bertrand pleaded guilty to a bill of information charging him with misprision of a felony and admitted that he knew that Jacquneaux and Wilson had manufactured the counterfeit Federal Reserve Notes with the intent to defraud others to believe the notes were genuine.
These cases were investigated by the United States Secret Service, the Lafayette Police Department and the St. Martin Parish Sheriff’s Office and were prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
# # #
Four Defendants Charged with Conspiring to Provide Cryptocurrency to ISISRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Mohammad David Hashimi, Abdullah At Taqi, Khalilullah Yousuf, and Seema Rahman with conspiring to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”). Hashimi, Taqi, and Rahman were arrested this morning in Virginia, New York, and New Jersey, respectively. Yousuf was also arrested this morning in Canada by Canadian law enforcement pursuant to a provisional arrest request from the United States. Taqi and Rahman made their initial appearances earlier today in federal court in Brooklyn before Chief United States Magistrate Judge Cheryl L. Pollak. Hashimi made his initial appearance in federal court in Alexandria, Virginia before United States Magistrate Judge Ivan Davis and was ordered held pending trial.
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, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, this crowdfunding network used cryptocurrency, Bitcoin wallets, GoFundMe, and PayPal to collect and raise blood money to support ISIS, not for needy families as they falsely claimed in their attempt to deceive law enforcement,” stated United States Attorney Peace. “I commend our prosecutors and the FBI’s New York Joint Terrorism Task Force for piercing the veil of secrecy to identify the perpetrators of this scheme, reveal the true evil nature of these virtual money transfers, and bring to justice those who seek to enable acts of violent extremism.”
“As alleged, the defendants deliberately participated in schemes to raise funds for ISIS in support of the group’s barbaric aims and actions. The FBI New York’s Joint Terrorism Task Force and our law enforcement partners remain relentless in our determination to protect our nation from those willing to support the scourge of international terrorism,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in the Complaint, Hashimi and Yousuf were members of a group chat (referred to in the Complaint as Group Chat-1) on an encrypted social media and mobile messaging electronic communication service that facilitated communication between and among supporters of ISIS and other groups that adhered to similar violent jihadist ideologies. In early April 2021, members of Group Chat-1 discussed posting donation links that purported to be for humanitarian causes but were in fact intended to help the “mujahideen,” an Arabic term that translates to “holy warriors” that is used by ISIS supporters to refer to ISIS fighters. Yousuf provided a link to a specific Bitcoin address and another member of Group Chat-1 posted a link to a PayPal campaign, both of which were controlled by an individual identified in the Complaint as Facilitator-1.
In conversations with a confidential source, Taqi and Facilitator-1 discussed giving money to support ISIS fighters. When the confidential source asked Facilitator-1 for proof that the money being donated was going to support ISIS, Facilitator-1 sent the confidential source screenshots and a video depicting tactical gear, ammunition, and grenades on top of an ISIS flag. An image of one of the photographs is depicted below.
Facilitator-1 also told the confidential source that the charitable descriptions in the fundraising campaigns were in fact a “deception for the infidels” and the “words that are in the link are fake in order to deceive.”
Between February 2021 and July 2022, the defendants raised and contributed more than $35,000 to Facilitator-1 via a combination of cryptocurrency and other sources. The defendants contributed more than $24,000 to Facilitator-1’s Bitcoin address, with Yousuf contributing $20,347.89, Taqi contributing $2,769.35, and Rahman contributing $927.51. The defendants also sent more than $1,000 to the PayPal account associated with Facilitator-1, with Rahman contributing approximately $550, Taqi contributing approximately $480, and Hashimi contributing $55. In addition, both Yousuf and Rahman created multiple GoFundMe fundraising campaigns purporting to collect money for charitable causes. Hashimi contributed $364 and Taqi contributed $200 through the Yousuf-created GoFundMe campaigns, while Rahman raised approximately $10,000 through the GoFundMe campaigns that she created, and then wired the proceeds, approximately $10,024, to individuals connected to Facilitator-1 via Western Union.
Hashimi has also made statements suggesting his desire to die in combat or in a terrorist attack on behalf of a foreign terrorist organization. For example, in November 2020, Hashimi told another confidential source over encrypted communications that “I have made up my mind I want to make Hijra to Afghanistan. To join dawla,” in other words, travel to join ISIS. In or about September 2021, Hashimi told another individual through a direct message that “I just want Jannah,” i.e., paradise or the after-life, “And to die on the battlefield.” Hashimi also provided financial support for numerous individuals who have been charged with or convicted of federal crimes of terrorism. Between December 2021 and October 2022, Hashimi gave more than $2,000 to a terrorism defendant through JPay, an inmate funding service.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Douglas M. Pravda, Ian C. Richardson and Nina Gupta are in charge of the prosecution, with assistance provided by Trial Attorneys Daniel Gardner and Alexandra Hughes of the Counterterrorism Section of the Department of Justice’s National Security Division.
The Defendants:
MOHAMMAD DAVID HASHIMI
Age: 35
Potomac Falls, VirginiaABDULLAH AT TAQI
Age: 23
East Elmhurst, Queens, New YorkKHALILULLAH YOUSUF
Age: 34
Ontario, CanadaSEEMA RAHMAN
Age: 25
Edison, New JerseyE.D.N.Y. Docket No. 22-MJ-1323
Former Spring Lake Public Official Sentenced to Four Years in Prison for EmbezzlementRead the Press Release
ELIZABETH CITY, N.C. – Gay Cameron Tucker, 64, was sentenced today to two consecutive 24-month sentences in prison for embezzling more than $500,000 from the Town of Spring Lake. Tucker is the former finance director and account technician for the Town. On September 21, 2022, she pleaded guilty to one count of Embezzlement from a Local Government Receiving Federal Funds, and one count of Aggravated Identity Theft.
“Public corruption at any level is a crime that affects all of us and undermines our public institutions,” said U.S. Attorney Michael Easley. “This defendant abused her position of trust by using public funds intended for her local community to pay her own personal expenses. Our office will continue to partner with law enforcement to investigate and prosecute allegations of public corruption.”
Between 2016 and 2021, Tucker wrote checks from the Town’s bank accounts for her personal use, forging the signatures of other town officials, including the mayor and town manager. These forged checks were made payable to herself, used to cover her personal expenses, and deposited into bank accounts she controlled. By abusing her position of trust, Tucker stole $567,070 from the Town over this five-year period.
During the course of the government’s investigation into Tucker, the Town of Spring Lake hired a financial consultant to assist with an audit of the Town’s finances for 2019 and 2020 and also discovered financial irregulates. Tucker was removed from her position as Finance Director in March 2021.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorneys William M. Gilmore and Karen Haughton prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No 5:22-CR-00118.
###
Former San Luis Obispo County Sheriff’s Deputy Faces Federal Civil Rights Charge Stemming from Alleged Assault of Female InmateRead the Press Release
LOS ANGELES – A former San Luis Obispo County sheriff’s deputy has been indicted on federal criminal charges alleging he abused a county jail inmate by dragging the victim by her hair on the ground from one cell into another jail cell and then obstructing a federal probe into his actions by lying about the incident in an official sheriff’s office report, the Justice Department announced today.
Joshua Fischer, 40, of Grover Beach, is charged in a federal grand jury indictment with one count of deprivation of rights under color of law and one count of falsification of records.
According to the indictment returned Tuesday, Fischer was a sworn law enforcement officer and San Luis Obispo County Sheriff’s Office senior correctional deputy assigned to work at the Intake Release Center in the city of San Luis Obispo between January 2017 and December 2018.
On November 18, 2018, Fischer allegedly used unreasonable force against a jail inmate who had removed her shirt, exited her cell, and then returned to her cell. Upon returning to her cell, Fischer then allegedly grabbed the victim from behind by her hair while she was still topless and dragged her on the ground into another cell.
Fischer then falsified a San Luis Obispo County sheriff’s incident report by including false statements that the victim had thrown her shirt on the ground after removing it outside her cell, that she yelled and flailed her arms while re-entering her cell, and that Fischer “was in fear for the safety of the other female arrestee in the cell” because the victim was “still without her shirt, yelling and flailing her arms,” the indictment alleges.
In fact, the victim did not throw her shirt on the ground after removing it outside the cell, she was not flailing her arms around as she re-entered her cell, but instead her arms were by her side and then near her bare chest when Fischer assaulted her, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Fischer is expected to be arraigned on the indictment in the coming weeks at United States District Court in downtown Los Angeles.
If convicted of both charges, Fischer would face a statutory maximum sentence of 10 years in federal prison on the deprivation of rights count and 20 years in federal prison for the falsification of records count.
The FBI investigated this matter.
Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section and Frances S. Lewis of the General Crimes Section are prosecuting this case.
Former Postal Employee Pleads Guilty to Stealing Items from the Mail She was Entrusted to Process as a Mail HandlerRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that KEISHAN WILSON, age 38, of New Orleans, Louisiana pleaded guilty on December 8, 2022, before the Honorable Elon E. Fallon, U.S. District Judge, Eastern District of Louisiana, to stealing items from the mail she was entrusted to process for delivery as a postal employee. Sentencing is set for March 2, 2023.
According to documents filed in federal court, KEISHAN WILSON was employed by the United States Postal Service as a mail processor in New Orleans when she was apprehended stealing items from the mail she was entrusted to handle for the U.S. Postal Service.
The maximum penalties for the offense is five years imprisonment, a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim; up to three years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Missouri State Highway Patrol Employee Accused of Accepting BribesRead the Press Release
ST. LOUIS – A former supervisory motor vehicle inspector with the Missouri State Highway Patrol was indicted in U.S. District Court Wednesday and accused of taking cash bribes.
Larry S. Conrad's primary duty was to perform motor vehicle inspections at the Missouri State Highway Patrol’s Troop C facility in south St. Louis County and sign and certify forms required for motor vehicle owners to apply for original Missouri Certificates of Title.
The indictment accuses Conrad of taking cash bribes ranging from $40 to $160 to pass vehicles, often falsifying certificates to indicate no apparent damage when there was visible damage to the vehicle being inspected. Conrad had owners place the cash bribes in the driver’s side door pocket, the indictment says. Conrad also took bribes ranging up to $300 to sign and certify inspection forms for vehicles which he never saw or inspected, the indictment says.
Conrad, 67, was indicted on one felony charge of using a facility in interstate commerce, a cellular telephone, to facilitate his bribery scheme which was unlawful under Missouri statutes prohibiting acceding to corruption and official misconduct.
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 FBI, with the cooperation of the Missouri State Highway Patrol. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Former Manager of West Alton Marina Pleads Guilty to Federal Sex Trafficking and Child Exploitation OffensesRead the Press Release
CONCORD – John E. Murray, III, 56, of Alton Bay pled guilty in federal court today to twelve counts of production of child sexual abuse materials and four counts of sex trafficking of a minor, United States Attorney Jane E. Young announced today.
Murray was a manager at the West Alton Marina on Alton Bay, where he was responsible for hiring and supervising seasonal employees, many of whom were minors. According to court documents and statements made in court, Murray solicited minor employees of the marina for sexually explicit images and videos of themselves, often in exchange for cash. Murray directed the victims to send him the videos via Snapchat, and videos of the victims were found on Murray’s cell phone and in his Snapchat account. Murray also subjected minor employees to unwanted sexual contact and sexual acts, to include fondling and oral sex. With respect to two minor victims, Murray made cash payments to the victims in exchange for allowing Murray to perform sexual acts on the victims. The conduct took place over the course of several years and dates back to at least 2015. Murray has been in state custody since August 2021 on related charges. The binding plea agreement filed in federal court recommends that Murray be sentenced to 300 months—or 25 years—of imprisonment.
Sentencing is scheduled for March 22, 2023.
This matter was investigated by Homeland Security Investigations and the Alton Police Department, with assistance from the New Hampshire State Police, the New Hampshire Human Trafficking Collaborative Task Force, and the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Former Mail Carrier Pleads Guilty to Bank Fraud Charge for Stealing Jobless Benefit Debit Cards from Her Mail Delivery RouteRead the Press Release
LOS ANGELES – A former United States Postal Service mail carrier pleaded guilty today to federal criminal charges for stealing debit cards containing unemployment insurance benefits while on duty and giving them to an accomplice in exchange for cash payments and gifts.
Toya Toshell Hunter, 45, of South Los Angeles, pleaded guilty to one count of bank fraud.
According to her plea agreement, from January 2019 to May 2020, Hunter stole mail – including letters sent by the California Employment Development Department (EDD), which administers the state’s unemployment insurance program – and then gave the stolen EDD debit cards as well as other credit cards and financial instruments to her co-schemer. The co-schemer then activated and fraudulently used the cards to commit bank fraud, the plea agreement states.
For example, in March 2020, Hunter stole mail from her assigned route, including an EDD debit card belonging to a victim. Hunter also stole correspondence in the mail that contained the victim’s name and the last four digits of the victim’s Social Security number, which she later gave to her accomplice in exchange for cash and gifts, knowing the accomplice intended to activate and fraudulently use the victim’s debit card.
Hunter’s co-schemer used the debit card and the last four digits of the victim’s Social Security number to fraudulently activate the card and create a personal identification number (PIN) to access funds from the victim’s account, which was held at Bank of America, the plea agreement states. The co-schemer then used the victim’s stolen EDD card to withdraw cash from a Bank of America ATM located in Corona.
During the scheme Hunter aided and abetted her accomplice in making fraudulent and unauthorized cash withdrawals from 68 separate victims’ accounts and stole approximately $145,191 from Bank of America.
In July 2021, Hunter stole from the mail and fraudulently activated a stolen debit card containing COVID-19 pandemic unemployment relief money belonging to another victim. Hunter used the card to make fraudulent purchases and cash withdrawals, thereby stealing approximately $1,400 from Fiserv Bank.
United States District Judge John F. Walter scheduled a March 6, 2023 sentencing hearing, at which time Hunter will face a statutory maximum sentence of 30 years in federal prison.
Hunter’s co-defendant in this case, Michalea Latise Barksdale, a.k.a. “Miichii Bee,” 34, of Corona, has pleaded not guilty to the 17 felony charges against her, which include bank fraud, aggravated identity theft, and possession of unauthorized access devices and stolen mail. Barksdale has a March 28, 2023 trial date scheduled in this case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Postal Inspection Service; United States Postal Service – Office of Inspector General; and the United States Treasury Inspector General for Tax Administration are investigating this matter.
Special Assistant United States Attorney Kyle W. Kahan of the General Crimes Section is prosecuting this case.
Former Director of Operations for New England Compounding Center SentencedRead the Press Release
BOSTON – The former Director of Operations of the now-defunct New England Compounding Center (NECC) was sentenced yesterday in federal court in Boston for conspiring to defraud the Food and Drug Administration (FDA). In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections manufactured by NECC that were contaminated with preservative-free methylprednisolone acetate (MPA), and more than 100 patients died as a result. The outbreak was the largest public health crisis ever caused by a contaminated pharmaceutical drug.
Sharon Carter, 58, of Hopkinton, was sentenced by U.S. District Court Judge Richard G. Stearns to five months in prison and one year of supervised release. Carter was also ordered to pay a fine of $4,000. In December 2018, Carter was convicted following an eight-week jury trial of conspiracy to defraud the United States.
“One may think that making misrepresentations or lying to federal regulators is a victimless crime. This case proves otherwise. In her role as Director of Operations, Ms. Carter conspired to deceive regulators into treating NECC as a lawfully operating pharmacy,” said United States Attorney Rachael S. Rollins. “The victims in this case – all trusting, innocent people – were simply seeking pain relief. Instead, those who survived were sentenced to a lifetime of anguish and trauma. This sentence speaks to my office’s ongoing commitment to the safety and protection of our residents in all areas of life and ensuring those who seek to do harm are held accountable.”
“As NECC’s director of operations, Sharon Carter conspired with her colleagues to lie to federal regulators to perpetrate a massive fraud scheme that harmed hundreds of people across the country whose lives will never be the same. Our thoughts are with them as Ms. Carter is finally held responsible for her role in one of the worst public health crises in U.S. history,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “While she now heads to prison, rest assured the FBI, and our law enforcement partners will continue to work to bring others who like her, violate the law and put patients at risk to justice.”
“FDA depends upon truthful representations from regulated firms, especially in the area of high-risk drug compounding, in order to help protect consumers from potentially unsafe products,” said Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office. “We are grateful that those at NECC who violated this essential principle, including Ms. Carter, have been brought to justice.”
“Our nation’s veterans deserve the highest quality healthcare services, and this sentence demonstrates the VA OIG’s commitment to diligently investigating any potential criminal activity that could threaten the safety of VA’s patients,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG appreciates the support of the United States Attorney’s Office and our law enforcement partners for their efforts to achieve justice in this case.”
“This case demonstrates the commitment of the U.S. Postal Inspection Service to the safety and health of the American public,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “The U.S. Postal Inspection Service, along with our federal law enforcement partners, will continue to investigate and take action against those who take part in this type of atrocious behavior.”
The criminal investigation revealed that NECC pharmacists knowingly made and sold numerous drugs in an unsafe manner and in insanitary conditions. The investigation also revealed that NECC repeatedly misrepresented to the FDA and the Massachusetts Board of Registration in Pharmacy that NECC was operating as a pharmacy dispensing drugs only pursuant to patient-specific prescriptions, when, in reality, NECC was shipping drugs in bulk across the nation for over a decade, evading regulatory oversight through fraud and misrepresentation.
As Director of Operations, Carter oversaw the processing and confirmation of drug orders received by NECC. Carter conspired with others to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. Carter directed employees to engage in numerous fraudulent prescription schemes to deceive regulators by creating the appearance that NECC had prescriptions for the drugs it was selling.
Barry Cadden, former co-owner of NECC and head pharmacist, and Glenn Chin, NECC’s supervisory pharmacist, were both resentenced following the government’s successful appeals of their original sentences. On July 7, 2021, Cadden was resentenced to 174 months in prison and ordered to pay forfeiture of $1.4 million and restitution of $82 million. On July 21, 2021, Chin, NECC’s supervisory pharmacist, was resentenced to 126 months in prison and three years of supervised release. Chin was also ordered to pay forfeiture of approximately $473,584 and restitution in the amount of $82 million.
U.S. Attorney Rollins; FDA Commissioner Robert M. Califf, M.D.; FBI SAC Bonavolonta; FDA SAC McMillan; VA OIG SAC Algieri; DCI SAC Hegarty; and USPIS INC Larco-Ward made the announcement. Assistant U.S. Attorney Amanda P.M. Strachan, Chief of Rollins’ Criminal Division and Assistant U.S. Attorney Christopher R. Looney of Rollins’ Health Care Fraud Unit prosecuted the case.
Former Chief Financial Officer Faces Charges for Failing to Pay over $3.6M in Employee Tax Withholdings and for Pocketing $130,000 from his Employer’s Bank AccountRead the Press Release
A former chief financial officer and vice president of finance for a company with offices in Oklahoma made an initial appearance in federal court Wednesday for failing to pay over to the IRS $3.6 million in income and FICA tax withholdings and for embezzling more than $130,000 from the company.
Paul B. Bowker, 60, a British national faces seven counts of failure to account for and pay over withholding and FICA (Social Security) taxes and 100 counts of bank fraud. Bowker waived his right to a detention hearing and was remanded into the custody of the U.S. Marshals Service pending trial.
Bowker was a permanent resident alien of the United States at the time of the crimes. In 2019, after he was interviewed by federal agents and made aware of the criminal investigation, he fled to the United Kingdom.
The U.S. Attorney’s Office eventually received a tip that led to Bowker’s arrest, and the Justice Department's Office of International Affairs worked with officials from the United Kingdom to ensure Bowker's extradition to the United States for prosecution.
As part of the scheme, Bowker was the chief financial officer and vice president of finance at a company that maintained offices in the Northern District of Oklahoma. In his role at the company, Bowker was responsible for withholding income taxes and FICA taxes from employees’ paychecks and for paying the monies over to the IRS. The Indictment alleges that from April 2014 through January 2016, Bowker withheld the funds but failed to pay over to the IRS more than $3.6 million worth of income and FICA taxes.
In addition, Bowker is charged with bank fraud. As chief financial officer, Bowker was entrusted with a company credit card and was responsible for paying the monthly credit card bill by authorizing the electronic transfer of funds from the company’s checking account at Mabrey Bank, in Bixby, to the company’s Visa account. From January 2014 through December 2015, Bowker is alleged to have fraudulently used the Visa credit card to make $130,000 worth of purchases for his own benefit then paying for those charges with funds from the company’s checking account at Mabrey Bank.
IRS/Criminal Investigation and the FBI are the investigative agencies. Assistant U.S. Attorneys Charles M. McLoughlin and Richard M. Cella are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Cambridge Man Sentenced for Wire Fraud and Illegally Exporting Defense Articles to TurkeyRead the Press Release
BOSTON – A former Cambridge man was sentenced today in Boston for illegally exporting defense technical data to foreign nationals in Turkey in connection with the fraudulent manufacturing of parts and components used by the U.S. military. Some of the parts were later determined to be substandard and unsuitable for use by the military.
Arif Ugur, 53, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 33 months months in prison and two years of supervised release. Pursuant to an order entered by Judge Gorton, Ugur, who is a U.S. lawful permanent resident from Turkey, agreed to return to Turkey upon completion of his sentence. On Aug. 10, 2022, Ugur pleaded guilty to two counts of wire fraud, two counts of violating the Arms Export Control Act and one count of conspiring to violate the Arms Export Control Act.
In 2015, Ugur, founded and was the sole managing partner of the Anatolia Group Limited Partnership (Anatolia), a domestic limited partnership registered in Massachusetts. Beginning in approximately July 2015, Ugur bid on and acquired numerous contracts to supply the U.S. Department of Defense (DOD) with various parts and components intended for use by the U.S. military. Many of these contracts required that the parts be manufactured in the United States. Both in bids submitted to DOD and in subsequent email communications with DOD representatives, Ugur falsely claimed that Anatolia was manufacturing the parts in the United States. In fact, Anatolia was a front company with no manufacturing facilities whatsoever. Unbeknownst to DOD, Ugur contracted with a company in Turkey to make the parts and then passed them off to DOD as if they had been manufactured by Anatolia in the United States.
Because they had not been manufactured in the United States in accordance with the contacts, Ugur failed to allow DOD to inspect the parts prior to delivery to the U.S. military. Many of the parts were substandard and some could not be used at all.
In order to enable to the Turkish company to manufacture the parts, Ugur shared technical specifications and drawings of the parts with his co-conspirators overseas, some of whom were employees of the Turkish company. Ugur also provided his overseas co-conspirators with access to DOD’s online library of technical specifications and drawings. Because of their military applications, many of these parts were designated as Defense Articles under the International Traffic in Arms Regulations (ITAR) and the United States Munitions List (USML). Thus, an export license was required to export the parts and related technical data (blueprints, specifications, etc.) from the United States to Turkey. Ugur knew of these restrictions, but nonetheless exported technical data controlled under the ITAR and USML to employees of the Turkish manufacturer without an export license.
United States Attorney Rachael S. Rollins; Patrick J. Hegarty, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Rashel Assouri, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office made the announcement today. Assistant U.S. Attorneys Jason A. Casey and Timothy H. Kistner of Rollins’ National Security Unit prosecuted the case.
Former Army Officer and Attorney Indicted on Cyberstalking and Witness TamperingRead the Press Release
CHARLOTTESVILLE, Va. – A federal grand jury in Charlottesville, Virginia has indicted a former attorney and Army Officer assigned to the United States Army Judge Advocate General’s Legal Center and School (JAG School) in Charlottesville on multiple counts of cyberstalking, witness tampering, and lying to multiple federal agencies.
The eight-count indictment, returned today, charges Manfredo Madrigal, 36, a former resident of Charlottesville, with four counts of lying to multiple federal agencies, one count of witness tampering and one count of attempted witness tampering, one count of cyberstalking, and one count of deletion of Army materials.
Madrigal was an active duty Army Officer and attorney when he was assigned to the JAG School in early 2022. He previously served multiple overseas tours of duty as an enlisted soldier with various units, including the 75th Ranger Regiment and 82nd Airborne Division. In late February 2022, Madrigal was discharged from the Army and JAG School for failing to report a previous conviction for driving under the influence (DUI).
He was arrested on a criminal complaint in August 2022.
The indictment alleges that in the overnight hours between February 6 and 7, 2022, and while his Army discharge was pending, Madrigal deleted, without authorization, online JAG training materials. Madrigal filmed himself doing so and narrated his motivations. In the video, Madrigal stated, “I’m gonna fu** you,” and “I’m going to bring their house down on them.” The same evening, Madrigal contacted Victim 1 and informed her that Russia reached out to him, wanted to know what he knew, and that he intended to travel to Russia. Madrigal’s cellphone records indicate he contacted the Russian embassy.
On February 22, 2022, Madrigal was discharged from the JAG School and claimed in out-processing paperwork that he had no unreported contact with a foreign national, which was contrary to Madrigal’s phone records and statements to Victim 1.
In April and May 2022, Madrigal was interviewed by the FBI about his actions. In these interviews, Madrigal made multiple false statements regarding his foreign contact and the deletion of the training materials. For example, Madrigal claimed he learned of the deletion from a coworker but denied any involvement. Per text messages, however, Madrigal filmed his efforts to delete the module and claimed credit.
During the FBI’s investigation, agents discovered that Madrigal had been threatening Victim 1, a former romantic partner, both in-person and via electronic means. Between late 2021 and mid-2022, Madrigal sent Victim 1 messages threatening her safety, career, family, and pet. These messages contained compromising and sexually explicit photos of Victim 1. Victim 1 also expressed being “terrified” of Madrigal and stated he threatened her, in-person, using a firearm at her residence and damaged her belongings.
As the FBI’s investigation progressed, agents also uncovered evidence Madrigal pressured another former romantic partner, Victim 2, to provide false information to the FBI about Madrigal. Victim 2 admitted to agents that Madrigal coached her prior to her FBI interview, and they discussed deleting incriminating text messages from his cellphone.
On August 9, 2022, Madrigal and Victim 2 were involved in a dispute in Harrison, Arkansas and Madrigal pointed a pistol at Victim 2’s head. Madrigal was arrested by local authorities in Arkansas and later transferred to Virginia to face federal charges for his conduct involving Victim 1.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The Federal Bureau of Investigation and the United States Army are investigating the case.
Assistant United States Attorney Katie Burroughs Medearis and Special Assistant United States Attorney Jessica Joyce are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former 6/10 Construction Project Supervisor Pleads Guilty to Making False StatementsRead the Press Release
PROVIDENCE – A former Superintendent of the 6/10 Interchange Construction Project, who falsely represented the origin and environmental quality of railroad ballast (loose stone) and the origin of soil imported into the 6/10 Project, today pleaded guilty in federal court to three counts of making a false statement in connection with a federally funded highway project, announced United States Attorney Zachary A. Cunha.
Dennis Ferreira, a former employee of Barletta Heavy Division, Inc., a Massachusetts construction company responsible for the construction of the Route 6/10 Interchange Project, admitted to a federal judge that, in July 2020, he falsely reported to the Rhode Island Department of Transportation (RIDOT) the origin of 93 truckloads of railroad ballast imported to the 6/10 Project from Massachusetts; 52 truckloads of dirt imported to the 6/10 Project from the Barletta Pawtucket/Central Falls Rail Station Project; and that he was responsible for a report submitted to RIDOT by Barletta stating that the stone imported from Massachusetts had been tested and met environmental criteria as required in a Soil and Materials Management Plan (SMMP) prepared by RIDOT. In fact, the stone had not been tested and did not meet the environmental criteria.
In October, United States Attorney Cunha announced the resolution of federal criminal and civil investigations into Barletta and Ferreira. The resolutions included Ferreira’s agreement to plead guilty; a civil resolution that will recover from Barletta more than twice the amount paid by the government as a result of the conduct; and a non-prosecution agreement with the construction firm.
Federal investigations into contracting and procurement on portions of the federally-funded 6/10 Project centered on false statements by Ferreira and the company, as well as billing submissions made to the federal government for the stone and dirt. This fill, which was required to either be used at its original location, or subjected to additional testing and handling, did not meet the requirements of the contract.
Ferreira is scheduled to be sentenced on March 16, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The United States has separately entered into a Non-Prosecution Agreement with Barletta in connection with the false statements that were made to the Federal Highway Administration and RIDOT. These statements were meant to conceal the fact that Barletta had imported regulated material in violation of the SMMP, which was part of the contract governing the 6/10 Project. Under the Agreement, Barletta accepts responsibility for the actions of its employees and admits to the facts that constitute making false statements in connection with a federally funded highway project. In addition to paying a $500,000 criminal fine, the agreement requires Barletta to implement ongoing monitoring, reporting, and compliance measures for a period of three years; failure to comply with these conditions will make the company subject to prosecution for the conduct set forth in an agreed-upon Statement of Facts.
Additionally, Barletta has entered into a False Claims Act settlement that resolves allegations that the company knowingly submitted claims for payment for work on the project in connection with the movement of dirt that did not comply with contract requirements, in violation of the federal and Rhode Island state False Claims Acts. Barletta will pay $1,000,000 to the government, representing more than twice the government funds paid as a result of the relevant claims.
Assistant U.S. Attorneys Dulce Donovan and Bethany Wong are handling the prosecution and litigation of these matters.
The matter was investigated by the U.S. Department of Transportation, Office of Inspector General, and the U.S. Department of Labor, Office of Inspector General, with the assistance from the Rhode Island Department of Environmental Management, Division of Law Enforcement.
###
Federal Prosecutors in Los Angeles and Alaska Charge 6 Defendants with Operating Websites that Offered Computer Attack ServicesRead the Press Release
LOS ANGELES – The Justice Department today announced the court-authorized seizure of 48 internet domains associated with some of the world’s leading DDoS-for-hire services, as well as criminal charges against six defendants who allegedly oversaw computer attack platforms commonly called “booter” services.
The FBI is now in the process of seizing the websites that allowed paying users to launch powerful distributed denial-of-service, or DDoS, attacks that flood targeted computers with information and prevent them from being able to access the internet. Booter services such as those named in this action allegedly attacked a wide array of victims in the United States and abroad, including educational institutions, government agencies, gaming platforms and millions of individuals. In addition to affecting targeted victims, these attacks can significantly degrade internet services and can completely disrupt internet connections.
The websites targeted in this operation were used to launch millions of actual or attempted DDoS attacks targeting victims worldwide. While some of these services claimed to offer “stresser” services that could purportedly be used for network testing, the FBI determined these claims to be a pretense, and “thousands of communications between booter site administrators and their customers…make clear that both parties are aware that the customer is not attempting to attack their own computers,” according to an affidavit filed in support of court-authorized warrants to seize the booter sites.
The coordinated law enforcement action comes just before the Christmas holiday period, which typically brings a significant increase in DDoS attacks across the gaming world.
In conjunction with the website seizures, the FBI, the United Kingdom’s National Crime Agency, and the Netherlands Police have launched an advertising campaign using targeted placement ads in search engines, which are triggered by keywords associated with DDoS activities. The purpose of the ads is to deter potential cyber criminals searching for DDoS services in the United States and around the globe, as well as to educate the public on the illegality of DDoS activities.
“These booter services allow anyone to launch cyberattacks that harm individual victims and compromise everyone’s ability to access the internet,” said United States Attorney Martin Estrada. “This week’s sweeping law enforcement activity is a major step in our ongoing efforts to eradicate criminal conduct that threatens the internet’s infrastructure and our ability to function in a digital world.”
“Criminals are increasingly targeting essential services and our critical infrastructure with DDoS attacks that can cost victims valuable time, money and reputational harm,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Whether a criminal launches an attack independently or pays a skilled contractor to carry one out, the FBI will work with victims and use the considerable tools at our disposal to identify the person or group responsible. Victims of cybercrime are urged to contact their local FBI field office or file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov."
The law enforcement actions this week include the filing of charges against six defendants across the United States who allegedly offered booter services. Each defendant allegedly operated at least one website that offered one-stop DDoS services and subscriptions of various lengths and attack volumes. In each of these criminal cases, the FBI posed as a customer and conducted test attacks to confirm that the booter site functioned as advertised.
Central District of California
Prosecutors in Los Angeles this week filed four criminal informations charging four defendants with running booter services.
The defendants charged in Los Angeles are:
- Jeremiah Sam Evans Miller, aka “John The Dev,” 23, of San Antonio, Texas, who is charged with conspiracy to violate and violating the computer fraud and abuse act related to the alleged operation of a booter service named RoyalStresser.com (formerly known as Supremesecurityteam.com);
- Angel Manuel Colon Jr., aka “Anonghost720” and “Anonghost1337,” 37, of Belleview, Florida, who is charged with conspiracy to violate and violating the computer fraud and abuse act related to the alleged operation of a booter service named SecurityTeam.io;
- Shamar Shattock, 19, of Margate, Florida, who is charged with conspiracy for allegedly running a booter service known as Astrostress.com; and
- Cory Anthony Palmer, 22, of Lauderhill, Florida, who is charged with conspiracy for allegedly running a booter service known as Booter.sx.
The four defendants have been informed of the charges against them and are expected to make their initial court appearances in United States District Court in Los Angeles early next year.
Assistant United States Attorneys Cameron L. Schroeder, Chief of the Cyber and Intellectual Property Crimes Section, and Aaron Frumkin, also of the Cyber and Intellectual Property Crimes Section, are prosecuting the Los Angeles cases. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the domains.
District of Alaska
The defendants charged in criminal informations filed in Alaska are:
- John M. Dobbs, 32 of Honolulu, Hawaii, who is charged with aiding and abetting violations of the computer fraud and abuse act related to the alleged operation of a booter service named Ipstressor.com, also known as IPS, between 2009 and November 2022.
- Joshua Laing, 32, of Liverpool, New York, who is charged with aiding and abetting violations of the computer fraud and abuse act related to the alleged operation of a booter service named TrueSecurityServices.io between 2014 and November 2022.
The two defendants have been informed of the charges against them and are expected to make their initial court appearance early next year.
Assistant United States Attorney Adam Alexander is prosecuting the Alaska cases.
Criminal informations contain allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In recent years, booter services have continued to proliferate as they offer a low barrier to entry for users looking to engage in cybercriminal activity. These types of DDoS attacks are so named because they result in the “booting” or dropping of the targeted computer from the internet. For additional information on booter and stresser services and the harm that they cause, please visit: https://www.fbi.gov/contact-us/field-offices/anchorage/fbi-intensify-efforts-to-combat-illegal-ddos-attacks.
The cases announced today are being investigated by the FBI’s Anchorage and Los Angeles field offices.
Invaluable assistance was provided by the FBI field offices in Albany, Honolulu, Miami, Philadelphia and San Antonio; the United Kingdom’s National Crime Agency; the Netherlands Police; EUROPOL; and the Brandon Police Service in Manitoba, Canada. Akamai, Cloudflare, Digital Ocean, Entertainment Software Association, Google, Oracle, Palo Alto Networks Unit 42, PayPal, Unit 221B, the University of Cambridge, Yahoo and other valued private sector partners provided additional assistance.
These law enforcement actions were taken in conjunction with Operation PowerOFF, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling criminal DDoS-for-hire infrastructures worldwide, and holding accountable the administrators and users of these illegal services.
In a previous law enforcement action involving prosecutors and investigators in Los Angeles and Anchorage four years ago, the Justice Department charged three defendants who facilitated DDoS-for hire services and seized 15 internet domains associated with DDoS-for-hire services. The multi-prong investigation announced today builds on the success of the prior cases by targeting all known booter sites, shutting down as many as possible, and undertaking a public education campaign.
Federal Prosecutors in Alaska and Los Angeles Charge 6 Defendants with Operating Websites that Offered Computer Attack ServicesRead the Press Release
ANCHORAGE – The Justice Department today announced the court-authorized seizure of 48 internet domains associated with some of the world’s leading DDoS-for-hire services, as well as criminal charges against six defendants who allegedly oversaw computer attack platforms commonly called “booter” services.
The FBI is now in the process of seizing the websites that allowed paying users to launch powerful distributed denial-of-service, or DDoS, attacks that flood targeted computers with information and prevent them from being able to access the internet. Booter services such as those named in this action allegedly attacked a wide array of victims in the United States and abroad, including educational institutions, government agencies, gaming platforms and millions of individuals. In addition to affecting targeted victims, these attacks can significantly degrade internet services and can completely disrupt internet connections.
The websites targeted in this operation were used to launch millions of actual or attempted DDoS attacks targeting victims worldwide. While some of these services claimed to offer “stresser” services that could purportedly be used for network testing, the FBI determined these claims to be a pretense, and “thousands of communications between booter site administrators and their customers…make clear that both parties are aware that the customer is not attempting to attack their own computers,” according to an affidavit filed in support of court-authorized warrants to seize the booter sites.
The coordinated law enforcement action comes just before the Christmas holiday period, which typically brings a significant increase in DDoS attacks across the gaming world.
In conjunction with the website seizures, the FBI, the United Kingdom’s National Crime Agency (NCA) and the Netherlands Police have launched an advertising campaign using targeted placement ads in search engines, which are triggered by keywords associated with DDoS activities. The purpose of the ads is to deter potential cyber criminals searching for DDoS services in the United States and around the globe, as well as to educate the public on the illegality of DDoS activities.
“Communities in Alaska have become increasingly dependent on access to broadband internet for essential services,” said U.S. Attorney S. Lane Tucker, District of Alaska. “Cyber criminals are not concerned with borders between states or nations but they should be on notice that we will work with law enforcement partners nationally and internationally to pursue and disrupt cybercrime services targeting Alaskans.”
“These DDoS-for-hire websites, with paying customers both inside and outside the United States, facilitated network disruptions on a massive scale, targeting millions of victim computers around the world,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Potential users and administrators should think twice before buying or selling these illegal services. The FBI and our international law enforcement partners continue to intensify efforts in combatting DDoS attacks, which will have serious consequences for offenders.”
The law enforcement actions this week include the filing of charges against six defendants across the United States who allegedly offered booter services. Each defendant allegedly operated at least one website that offered one-stop services and subscriptions of various lengths and attack volumes. In each of these criminal cases, the FBI posed as a customer and conducted test attacks to confirm that the booter site functioned as advertised.
District of Alaska
The defendants charged in criminal informations filed in Alaska are:
- John M. Dobbs, 32, of Honolulu, Hawaii, is charged with aiding and abetting violations of the computer fraud and abuse act related to the alleged operation of a booter service named IPStressor.com, also known as IPS, between 2009 and November 2022.
- Joshua Laing, 32, of Liverpool, New York, is charged with aiding and abetting violations of the computer fraud and abuse act related to the alleged operation of a booter service named TrueSecurityServices.io between 2014 and November 2022.
The two defendants have been informed of the charges against them and are expected to make their initial court appearance early next year.
Assistant U.S. Attorney Adam Alexander is prosecuting the Alaska cases.
Central District of California
Prosecutors in Los Angeles this week filed four criminal informations charging four defendants with running booter services.
The defendants charged in Los Angeles are:
- Jeremiah Sam Evans Miller, aka “John The Dev,” 23, of San Antonio, Texas, who is charged with conspiracy to violate and violating computer fraud and abuse act related to the alleged operation of a booter service named RoyalStresser.com (formerly known as Supremesecurityteam.com).
- Angel Manuel Colon Jr., aka “Anonghost720” and “Anonghost1337,” 37, of Belleview, Florida, who is charged with conspiracy to violate and violating the computer fraud and abuse act related to the alleged operation of a booter service named SecurityTeam.io.
- Shamar Shattock, 19, of Margate, Florida, who is charged with conspiracy for allegedly running a booter service known as Astrostress.com.
- Cory Anthony Palmer, 22, of Lauderhill, Florida, who is charged with conspiracy for allegedly running a booter service known as Booter.sx.
The four defendants have been informed of the charges against them and are expected to make their initial court appearances in United States District Court in Los Angeles early next year.
Assistant United States Attorneys Cameron L. Schroeder, Chief of the Cyber and Intellectual Property Crimes Section, and Aaron Frumkin, also of the Cyber and Intellectual Property Crimes Section, are prosecuting the Los Angeles cases. Assistant United States Attorney James Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the domains.
In recent years, booter services have continued to proliferate as they offer a low barrier to entry for users looking to engage in cybercriminal activity. These types of DDoS attacks are so named because they result in the “booting” or dropping of the targeted computer from the internet. For additional information on booter and stresser services and the harm that they cause, please visit: https://www.fbi.gov/contact-us/field-offices/anchorage/fbi-intensify-efforts-to-combat-illegal-ddos-attacks.
The cases announced today are being investigated by the FBI’s Anchorage and Los Angeles field offices.
Invaluable assistance was provided by the FBI field offices in Albany, Honolulu, Miami, Philadelphia and San Antonio; the United Kingdom’s National Crime Agency; the Netherlands Police; EUROPOL; and the Brandon Police Service in Manitoba, Canada. Akamai, Cloudflare, Digital Ocean, Entertainment Software Association, Google, Oracle, Palo Alto Networks Unit 42, PayPal, Unit 221B, University of Cambridge, Yahoo and other valued private sector partners provided additional assistance.
These law enforcement actions were taken as part of Operation Power OFF, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling criminal DDoS-for-hire infrastructures worldwide, and holding accountable the administrators and users of these illegal services.
In a previous law enforcement action involving prosecutors and investigators in Anchorage and Los Angeles four years ago, the Justice Department charged three defendants who facilitated DDoS-for hire services and seized 15 internet domains associated with DDoS-for-hire services. The multi-prong investigation announced today builds on the success of the prior cases by targeting all known booter sites, shutting down as many as possible, and undertaking a public education campaign.
Criminal informations contain allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Federal Inmate Receives 9-Month Consecutive Prison Term for Possession of ContrabandRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Matthew S. Kirst, an inmate at the Federal Correctional Institution at Oxford, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 9 months in federal prison for possessing contraband in prison. Kirst pleaded guilty to the charge on September 12, 2022.
On September 28, 2021, Kirst was an inmate serving a federal prison sentence for possession of a firearm by a felon and possession of a firearm in furtherance of a drug trafficking crime. That day, prison staff discovered Kirst was in possession of 175 strips containing buprenorphine/suboxone and a quantity of synthetic marijuana, both controlled substances.
Judge Conley said a 9-month prison sentence was necessary to reflect the seriousness of the situation and to deter other inmates from similar conduct. He noted drugs like the ones that Kirst possessed while incarcerated can contribute to violence and dangerous situations among inmates. Judge Conley also noted that this was Kirst’s second conviction for possessing contraband in prison, and the sentence was meant to send a message. Pursuant to federal law, the 9-month prison term must be served consecutive to the sentences Kirst is currently serving and will serve for his previous firearm and contraband convictions.
The charge against Kirst was the result of an investigation conducted by the Federal Bureau of Investigation and the Federal Bureau of Prisons. Assistant U.S. Attorneys Steven P. Anderson and Anita Marie Boor prosecuted this case.
Federal Indictment Returned for Interstate Domestic Violence Resulting in DeathRead the Press Release
GREENVILLE, SOUTH CAROLINA — A federal grand jury in Greenville returned a four-count indictment charging Lawrence Joseph Florentine, 54, of Rock Hill, with interstate domestic violence resulting in death; use of a firearm to shoot his spouse and intimate partner, N.Z.F., during a crime of violence; obstruction of justice; and use of fire to commit interstate domestic violence. The alleged offenses were committed in June 2020, in South Carolina and elsewhere.
South Carolina ranks seventh among all states with respect to the percentage of women who experienced domestic violence at some point during their lifetimes and has ranked within the top 10 states for the rate of female homicide in each of the past 17 years. Federal laws provide tools for prosecuting domestic violence offenders in certain situations involving firearms and interstate travel or activity.
Florentine faces a maximum penalty of death or up to life in prison if convicted.
The case was investigated by the Kentucky State Police; Caldwell County, Kentucky, Sheriff’s Office; Greenville County, South Carolina, Sheriff’s Office; York County, South Carolina, Sheriff’s Office; Rock Hill, South Carolina, Police Department; South Carolina Law Enforcement Division; and Federal Bureau of Investigation. Assistant U.S. Attorney Leesa Washington is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
###
Federal Indictment Charges Duluth Man with Wire FraudRead the Press Release
MINNEAPOLIS – A Duluth man has been indicted for wire fraud after pretending to operate a law firm and defrauding an individual out of thousands of dollars in legal fees, announced U.S. Attorney Andrew M. Luger.
“I am grateful for the diligence and the coordinated work of the FBI, the Duluth Police Department, and the St. Louis County Attorney’s Office for investigating the defendant’s long history of repeated and unrelenting fraudulent conduct,” said U.S. Attorney Andrew M. Luger.
According to court documents, between March and April 2022, Gale Allen Rachuy, 72, devised and executed a scheme to defraud an individual (Victim A) by falsely representing that he could provide legal services in connection with Victim A’s post-conviction motion in exchange for $10,000. Rachuy told Victim A that he operated Midwest Legal Service, a Duluth-area law firm, for more than 38 years and claimed to employ several attorneys, including a retired federal judge who previously served on the Seventh Circuit Court of Appeals (Judge A) and a retired Hennepin County District Court judge (Judge B).
According to court documents, on March 10, 2022, Rachuy sent a letter to Victim A on Midwest Legal Service letterhead falsely claiming that Judge A would assist in Victim A’s legal representation and enclosed a copy of a retainer agreement seeking a $2,500 payment. On March 15, 2022, Rachuy received the $2,500 retainer from Victim A. Shortly thereafter, Victim A became suspicious and confronted Rachuy because Victim A had not received a draft of the legal documents Rachuy had promised to file. Rachuy promised Victim A that he would promptly refund the money, but never did so. Instead, Rachuy continued to falsely assure Victim A that Judge A and Judge B were working on the case.
Rachuy is charged with one count of wire fraud. He made his initial appearance in U.S. District Court today before Magistrate Judge David T. Schultz. Rachuy was ordered detained pending a formal detention hearing scheduled for 1:30 pm on Monday, December 19, 2022, before Magistrate Judge Leo I. Brisbois.
This case is the result of an investigation conducted by the FBI, the Duluth Police Department, and the Hermantown Police Department, with assistance from the St. Louis County Attorney’s Office.
Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Evansville Sexual Predator Sentenced to 4 Years in Federal Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
Evansville Sexual Predator Sentenced to 4 Years in Federal Prison for Possession of Child Sexual Abuse Material
EVANSVILLE- Anthony J. Richardson, 30, of Newburgh, Indiana was sentenced to 4 years in federal prison after pleading guilty to possession of child sexual abuse material.
According to court documents, on July 28, 2020, law enforcement officers executed a search warrant at Richardson’s residence, where multiple electronic devices were found containing images of child sexual abuse. Richardson’s computer was later examined and found to contain more than 1,400 videos of child sexual abuse, as well as evidence he used his computer to search for this material. The material Richardson collected included multiple videos depicting the rapes of preschool aged children and an extremely brutal depiction of the torture and sexual abuse of a prepubescent girl.
Also on July 28, 2020, during a recorded interview with law enforcement officers, Richardson admitted that he was sexually aroused by depictions of children being subjected to sexual abuse and had collected child sexual abuse materials for a long time.
“These abhorrent crimes will not go unpunished. Every day, pedophiles trade and view horrific depictions of child rape and sexual exploitation online,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The outstanding investigators of the Indiana ICAC Task Force work tirelessly to protect our children by identifying and arresting dangerous criminals who seek to prey on them. Serious federal sentences like the one imposed today should put potential offenders on notice: those who sexually abuse our children or trade in images of that abuse will be held accountable and sent to prison.”
“These types of cases are some of the most important to the FBI and our law enforcement partners as these images cause untold harm to the children depicted who are revictimized each time they are shared,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “This sentence shows the dedicated efforts of all who were involved in identifying and investigating the defendant to ensure he will no longer be able to exploit innocent children.”
The FBI investigated the case, with valuable assistance provided by the Warrick County Sheriff’s Department. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Richardson be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Richardson must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Todd Shellenbarger, who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.justice.gov/psc.
Essex County, New Jersey, Man Admits Bribing Mail Carriers to Steal Postal Arrow KeysRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a scheme to bribe mail carriers to steal postal arrow keys used to unlock mail receptacles and to use stolen items from the mail to fraudulently obtain funds from banks, U.S. Attorney Philip R. Sellinger announced.
Amin C. Jones, 29, of Orange, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count each of bribery of U.S. Postal Service mail carriers and conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Jones schemed to bribe mail carriers in East Orange and Newark, New Jersey, by offering them cash, typically $5,000, in exchange for the mail carriers giving Jones a postal arrow key, which could be used to access a variety of postal service mail receptacles. Jones and others sought USPS arrow keys so that they could steal mail. From June to July 2021, Jones and another individual drove to various locations in East Orange and Newark, where they stopped over four different mail carriers, including an undercover postal inspector, who Jones believed was a mail carrier, and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.
From January to July 2021, Jones conspired with others to obtain funds fraudulently from banks by stealing mail and using stolen checks and bank cards to draw funds from bank accounts linked to the stolen items and using the identification of others to fraudulently obtain funds.
The bribery charge to which Jones pleaded guilty carries a maximum potential penalty of 15 years in prison and the bank fraud conspiracy charge carries a maximum penalty of 30 years in prison. The maximum potential fine for the bribery charge is $250,000 and the bank fraud conspiracy charge carries a maximum potential fine of $1 million. Sentencing is currently scheduled for April 25, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.
Essex County Man Admits Producing Child Pornography in New Jersey and AbroadRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted producing multiple videos depicting the sexual assault of children, U.S. Attorney Philip R. Sellinger announced.
Antonio Del Prado, 61, of Millburn, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of production of child pornography and production of child pornography abroad with intent to transport into the United States.
According to documents filed in this case and statements made in court:
In October 2020, law enforcement officials learned that Del Prado had uploaded multiple items of suspected child pornography to an internet-based cloud storage system. The investigation also revealed that Del Prado had a woman live-stream a video of a child being sexually assaulted for Del Prado. Del Prado was arrested at his home in November 2020, at which time agents seized multiple electronic devices that were found to contain child pornography. Further investigation revealed that on multiple occasions, Del Prado sexually assaulted children in the Philippines and transmitted video recordings of those assaults into the United States.
The charges in the information each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for April 25, 2022.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.